76R16836 ESH-D                          
         By Bivins, et al.                                        S.B. No. 4
         Substitute the following for S.B. No. 4:
         By Sadler                                            C.S.S.B. No. 4
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to public school finance, property tax relief, and public
 1-3     education.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5             ARTICLE 1.  SCHOOL FINANCE AND PROPERTY TAX RELIEF
 1-6           SECTION 1.01.  Subdivision (3), Section 41.001, Education
 1-7     Code, is amended to read as follows:
 1-8                 (3)  "Weighted average daily attendance" has the
 1-9     meaning assigned by Section 42.302[, except that:]
1-10                       [(A)  weighted average daily attendance is
1-11     computed using the estimate of average daily attendance under
1-12     Section 42.254; and]
1-13                       [(B)  the estimate under Section 42.254 is
1-14     modified by including a student residing in a school district but
1-15     attending school in another district in the estimate for the
1-16     district of the student's residence and not of the district in
1-17     which the student attends school].
1-18           SECTION 1.02.  Section 41.002, Education Code, is amended by
1-19     amending Subsections (a), (b), (e), and (f) and adding Subsections
1-20     (g) and (h) to read as follows:
1-21           (a)  A school district may not have a wealth per student that
1-22     exceeds $295,000 [$280,000].
1-23           (b)  For [Except as provided by Subsection (c), for] purposes
 2-1     of this chapter, the commissioner shall adjust, in accordance with
 2-2     Section 42.2521 [by the amount of the decline], the taxable values
 2-3     of a school district that, due to factors beyond the control of the
 2-4     board of trustees, experiences a rapid decline [from the preceding
 2-5     year] in the tax base used in calculating taxable values [that is
 2-6     beyond the control of the board of trustees of the district].
 2-7           (e)  Notwithstanding Subsection (a) and except as provided by
 2-8     Subsection (g), for the [1997-1998, 1998-1999, and] 1999-2000,
 2-9     2000-2001, and 2001-2002 school years, in accordance with a
2-10     determination of the commissioner, the wealth per student that a
2-11     school district may have after exercising an option under Section
2-12     41.003(2) or (3) may not be less than the amount needed to maintain
2-13     state and local revenue in an amount equal to state and local
2-14     revenue per weighted student for maintenance and operation of the
2-15     district for the 1992-1993 school year less the district's current
2-16     year distribution per weighted student from the available school
2-17     fund, other than amounts distributed under Chapter 31, if the
2-18     district imposes an effective tax rate for maintenance and
2-19     operation of the district equal to the greater of the district's
2-20     current tax rate or $1.50 on the $100 valuation of taxable
2-21     property.  This subsection expires September 1, 2002 [2000].
2-22           (f)  For purposes of Subsection (e), a school district's
2-23     effective tax rate is determined by dividing the total amount of
2-24     taxes collected by the district for the applicable school year less
2-25     any amounts paid into a tax increment fund under Chapter 311, Tax
2-26     Code, by the quotient of the district's taxable value of property,
2-27     as determined under Subchapter M, Chapter 403, Government Code,
 3-1     divided by 100.  This subsection expires September 1, 2002 [2000].
 3-2           (g)  The wealth per student that a district may have under
 3-3     Subsection (e) is adjusted as follows:
 3-4              AWPS = WPS X (((EWL/280,000 - 1) X DTR/1.5) + 1)
 3-5     where:
 3-6           "AWPS" is the district's wealth per student;
 3-7           "WPS" is the district's wealth per student determined under
 3-8     Subsection (e);
 3-9           "EWL" is the equalized wealth level; and
3-10           "DTR" is the district's adopted maintenance and operations
3-11     tax rate for the current school year.
3-12           (h)  Subsection (g) and this subsection expire September 1,
3-13     2002.
3-14           SECTION 1.03.  Section 41.003, Education Code, is amended to
3-15     read as follows:
3-16           Sec. 41.003.  OPTIONS TO ACHIEVE EQUALIZED WEALTH LEVEL.  A
3-17     district with a wealth per student that exceeds the equalized
3-18     wealth level may take any combination of the following actions to
3-19     achieve the equalized wealth level:
3-20                 (1)  consolidation with another district as provided by
3-21     Subchapter B;
3-22                 (2)  detachment of territory as provided by Subchapter
3-23     C;
3-24                 (3)  purchase of average daily attendance credit as
3-25     provided by Subchapter D;
3-26                 (4)  educating [contracting for the education of]
3-27     nonresident students as provided by Subchapter E; or
 4-1                 (5)  tax base consolidation with another district as
 4-2     provided by Subchapter F.
 4-3           SECTION 1.04.  Subchapter A, Chapter 41, Education Code, is
 4-4     amended by adding Section 41.0031 to read as follows:
 4-5           Sec. 41.0031.  INCLUSION OF ATTENDANCE CREDITS AND
 4-6     NONRESIDENTS IN WEIGHTED AVERAGE DAILY ATTENDANCE.  In determining
 4-7     whether a school district has a wealth per student less than or
 4-8     equal to the equalized wealth level, the commissioner shall use:
 4-9                 (1)  the district's final weighted average daily
4-10     attendance; and
4-11                 (2)  the number of attendance credits a district
4-12     purchases under Subchapter D or the number of nonresident students
4-13     a district educates under Subchapter E for a school year.
4-14           SECTION 1.05.  Subsection (a), Section 41.004, Education
4-15     Code, is amended to read as follows:
4-16           (a)  Not later than July 15 of each year, using the estimate
4-17     of enrollment under Section 42.254, the commissioner shall review
4-18     the wealth per student of school districts in the state and shall
4-19     notify:
4-20                 (1)  each district with wealth per student exceeding
4-21     the equalized wealth level;
4-22                 (2)  each district to which the commissioner proposes
4-23     to annex property detached from a district notified under
4-24     Subdivision (1), if necessary, under Subchapter G; and
4-25                 (3)  each district to which the commissioner proposes
4-26     to consolidate a district notified under Subdivision (1), if
4-27     necessary, under Subchapter H.
 5-1           SECTION 1.06.  Section 41.093, Education Code, is amended by
 5-2     adding Subsection (c) to read as follows:
 5-3           (c)  The cost of an attendance credit for a school district
 5-4     is computed using the final tax collections of the district.
 5-5           SECTION 1.07.  Subchapter E, Chapter 41, Education Code, is
 5-6     amended by adding Section 41.124 to read as follows:
 5-7           Sec. 41.124.  TRANSFERS.  (a)  The board of trustees of a
 5-8     school district with a wealth per student that exceeds the
 5-9     equalized wealth level may reduce the district's wealth per student
5-10     by serving nonresident students who transfer to the district and
5-11     are educated by the district but who are not charged tuition.  A
5-12     district that exercises the option under this subsection is not
5-13     required to execute an agreement with the school district in which
5-14     a transferring student resides and must certify to the commissioner
5-15     that the district has not charged or received tuition for the
5-16     transferring students.
5-17           (b)  A school district with a wealth per student that exceeds
5-18     the equalized wealth level that pays tuition to another school
5-19     district for the education of students that reside in the district
5-20     may apply the amount of tuition paid toward the cost of the option
5-21     chosen by the district to reduce its wealth per student.  The
5-22     amount applied under this subsection may not exceed the amount
5-23     determined under Section 41.093 as the cost of an attendance credit
5-24     for the district.  The commissioner may require any reports
5-25     necessary to document the tuition payments.
5-26           (c)  A school district that receives tuition for a student
5-27     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.
 6-3           SECTION 1.08.  The heading to Subchapter E, Chapter 41,
 6-4     Education Code, is amended to read as follows:
 6-5           SUBCHAPTER E.  [CONTRACT FOR] EDUCATION OF NONRESIDENT
 6-6                                  STUDENTS
 6-7           SECTION 1.09.  Subsection (d), Section 42.007, Education
 6-8     Code, is amended to read as follows:
 6-9           (d)  The board shall conduct a study on the funding elements
6-10     each biennium, as appropriate.  The  study must include a
6-11     determination of the projected cost to  the  state  in  the  next
6-12     biennium  of  ensuring  the  ability  of each school  district to
6-13     maintain  existing  programs  without  increasing  property tax
6-14     rates.
6-15           SECTION 1.10.  Section 42.101, Education Code, is amended to
6-16     read as follows:
6-17           Sec. 42.101.  BASIC ALLOTMENT.  For each student in average
6-18     daily attendance, not including the time students spend each day in
6-19     special education programs in an instructional arrangement other
6-20     than mainstream or career and technology education programs, for
6-21     which an additional allotment is made under Subchapter C, a
6-22     district is entitled to an allotment of $2,537 [$2,387].  A greater
6-23     amount for any school year may be provided by appropriation.
6-24           SECTION 1.11.  Subchapter B, Chapter 42, Education Code, is
6-25     amended by adding Section 42.106 to read as follows:
6-26           Sec. 42.106.  ADJUSTED PROPERTY VALUE FOR DISTRICTS NOT
6-27     OFFERING ALL GRADE LEVELS.  For purposes of this chapter, the
 7-1     taxable value of property of a school district that contracts for
 7-2     students residing in the district to be educated in another
 7-3     district under Section 25.039(a) is adjusted by applying the
 7-4     formula:
 7-5                           ADPV = DPV - (TN/.015)
 7-6     where:
 7-7           "ADPV" is the district's adjusted taxable value of property;
 7-8           "DPV" is the taxable value of property in the district for
 7-9     the preceding tax year determined under Subchapter M, Chapter 403,
7-10     Government Code; and
7-11           "TN" is the total amount of tuition required to be paid by
7-12     the district under Section 25.039 for the school year for which the
7-13     adjustment is made.
7-14           SECTION 1.12.  Section 42.152, Education Code, is amended by
7-15     adding Subsections (s) and (t) to read as follows:
7-16           (s)  A reduction made under this section or the General
7-17     Appropriations Act in the allotment under this section does not
7-18     affect the computation of students in weighted average daily
7-19     attendance for purposes of Subchapter F.
7-20           (t)  For the 1999-2000 and 2000-2001 school years, the
7-21     commissioner shall reduce the guaranteed level of state and local
7-22     funds per weighted student per cent of tax effort under Section
7-23     42.302 by an amount sufficient to reduce state costs in an amount
7-24     equal to the increase in state costs due to the application of
7-25     Subsection (s).  The commissioner shall determine the same
7-26     reduction for both school years and shall announce the
7-27     determination as soon as practicable after August 1, 1999.  A
 8-1     determination by the commissioner under this section is final and
 8-2     may not be appealed.  This subsection expires September 1, 2001.
 8-3           SECTION 1.13.  Effective September 1, 2000, Subchapter C,
 8-4     Chapter 42, Education Code, is amended by adding Section 42.158 to
 8-5     read as follows:
 8-6           Sec. 42.158.  NEW INSTRUCTIONAL FACILITY ALLOTMENT.  (a)  A
 8-7     school district is entitled to an additional allotment as provided
 8-8     by this section for operational expenses associated with opening a
 8-9     new instructional facility.
8-10           (b)  For the first school year in which students attend a new
8-11     instructional facility, a school district is entitled to an
8-12     allotment of $400 for each student in average daily attendance at
8-13     the facility.  For the second school year in which students attend
8-14     that instructional facility, a school district is entitled to an
8-15     allotment of $400 for each additional student in average daily
8-16     attendance at the facility.
8-17           (c)  For purposes of this section, the number of additional
8-18     students in average daily attendance at a facility is the
8-19     difference between the number of students in average daily
8-20     attendance in the current year at that facility and the number of
8-21     students in average daily attendance at that facility in the
8-22     preceding year.
8-23           (d)  The amount appropriated for allotments under this
8-24     section may not exceed $40 million in a school year.  If the total
8-25     amount of allotments to which districts are entitled under this
8-26     section for a school year exceeds the amount appropriated for
8-27     allotments under this section, the commissioner shall reduce each
 9-1     district's allotment under this section in the manner provided by
 9-2     Section 42.253(h).
 9-3           (e)  The commissioner may adopt rules necessary to implement
 9-4     this section.
 9-5           (f)  In this section, "instructional facility" has the
 9-6     meaning assigned by Section 46.001.
 9-7           SECTION 1.14.  Section 42.2511, Education Code, is amended to
 9-8     read as follows:
 9-9           Sec. 42.2511.  [COMPUTATION OF STATE AID FOR 1997-1998 SCHOOL
9-10     YEAR;] ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION.  (a)
9-11     Notwithstanding any other provision of this chapter, [in computing
9-12     state aid for the 1997-1998 school year, a school district's
9-13     taxable value of property under Subchapter M, Chapter 403,
9-14     Government Code, is determined as if the increase in the homestead
9-15     exemption under Section 1-b(c), Article VIII, Texas Constitution,
9-16     and the additional limitation on tax increases under Section 1-b(d)
9-17     of that article, as proposed by H.J.R. No. 4, 75th Legislature,
9-18     Regular Session, 1997, had been in effect for the 1996 tax year.]
9-19           [(b)  For the 1997-1998 and 1998-1999 school years,] a school
9-20     district is entitled to additional state aid to the extent that
9-21     state aid under this chapter based on the determination of the
9-22     school district's taxable value of property as provided under
9-23     Subchapter M, Chapter 403, Government Code, [by Subsection (a)]
9-24     does not fully compensate the district for ad valorem tax revenue
9-25     [that would have been] lost due to the increase in the homestead
9-26     exemption under Section 1-b(c), Article VIII, Texas Constitution,
9-27     as proposed by H.J.R. No. 4, Acts of the 75th Legislature, Regular
 10-1    Session, 1997, and the additional limitation on tax increases under
 10-2    Section 1-b(d), Article VIII, Texas Constitution, as proposed by
 10-3    H.J.R. No. 4, Acts of the 75th Legislature, Regular Session, 1997
 10-4    [if the increased exemption and additional limitation had been in
 10-5    effect for the 1996 tax year].
 10-6          (b)  The commissioner, using information provided by the
 10-7    comptroller, shall compute the amount of additional state aid to
 10-8    which a district is entitled under this section [subsection].  A
 10-9    determination by the commissioner under this section [subsection]
10-10    is final and may not be appealed.
10-11          [(c)  This section expires September 1, 1999.]
10-12          SECTION 1.15.  Subchapter E, Chapter 42, Education Code, is
10-13    amended by adding Sections 42.2512 and 42.2513 to read as follows:
10-14          Sec. 42.2512.  SALARY TRANSITION AID.  (a)  For the 1999-2000
10-15    and 2000-2001 school years, a school district, including a school
10-16    district that is otherwise ineligible for state aid under this
10-17    chapter, is entitled to state aid in an amount, as determined by
10-18    the commissioner, equal to the difference, if any, between:
10-19                (1)  the amount that the district, under Section
10-20    21.402(c-1), must increase the salaries of classroom teachers,
10-21    full-time librarians, full-time counselors, and full-time nurses;
10-22    and
10-23                (2)  an amount equal to 80 percent of the amount of
10-24    additional funds to which the district is entitled due to the
10-25    increases made by S.B. No. 4, Acts of the 76th Legislature, Regular
10-26    Session, 1999, to:
10-27                      (A)  the equalized wealth level under Section
 11-1    41.002;
 11-2                      (B)  the basic allotment under Section 42.101;
 11-3    and
 11-4                      (C)  the guaranteed level of state and local
 11-5    funds per weighted student per cent of tax effort under Section
 11-6    42.302.
 11-7          (b)  A determination by the commissioner under this section
 11-8    is final and may not be appealed.
 11-9          (c)  The commissioner may adopt rules to implement this
11-10    section.
11-11          (d)  This section expires September 1, 2001.
11-12          Sec. 42.2513.  ADDITIONAL SALARY TRANSITION AID.  (a)  For
11-13    the 1999-2000 and 2000-2001 school years, the commissioner shall
11-14    increase the entitlement under this chapter of a school district
11-15    that experiences additional salary cost resulting from Chapter 592
11-16    (H.B. No. 4), Acts of the 75th Legislature, Regular Session, 1997,
11-17    that is not fully funded by an amount equal to 20 percent of the
11-18    amount of additional funds to which the district is entitled due to
11-19    the increases made by S.B. No. 4, Acts of the 76th Legislature,
11-20    Regular Session, 1999, to:
11-21                (1)  the equalized wealth level under Section 41.002;
11-22                (2)  the basic allotment under Section 42.101; and
11-23                (3)  the guaranteed level of state and local funds per
11-24    weighted student per cent of tax effort under Section 42.302.
11-25          (b)  The amount of additional salary cost shall be computed
11-26    by determining what the district's salary cost for the 1996-1997
11-27    school year would have been if, for purposes of the minimum salary
 12-1    schedule under Section 21.402, as that section existed on September
 12-2    1, 1996, the amount appropriated for purposes of the Foundation
 12-3    School Program for the 1997-1998 state fiscal year were increased
 12-4    by $520 million and comparing that cost to the amount the district
 12-5    was actually required to pay under Section 21.402.  For this
 12-6    purpose, the commissioner shall use 1996-1997 employment and salary
 12-7    data as reported through the Public Education Information
 12-8    Management System (PEIMS).
 12-9          (c)  The commissioner shall determine the amount of
12-10    additional state aid under this section to which each school
12-11    district is entitled.  A decision of the commissioner under this
12-12    section is final and may not be appealed.
12-13          (d)  This section expires September 1, 2001.
12-14          SECTION 1.16.  Effective September 1, 2001, Subchapter E,
12-15    Chapter 42, Education Code, is amended by adding Section 42.2514 to
12-16    read as follows:
12-17          Sec. 42.2514.  ADJUSTMENT TO FUNDING ELEMENTS.  (a)  The
12-18    commissioner shall increase the basic allotment under Section
12-19    42.101 and the guaranteed level of state and local funds per
12-20    weighted student per cent of tax effort under Section 42.302 to
12-21    provide school districts in the aggregate the same amount of state
12-22    funds that would have been delivered under this chapter if former
12-23    Section 42.102, as that section existed on May 31, 1999, had not
12-24    been repealed.
12-25          (b)  An increase under Subsection (a)  must be in proportion
12-26    to the amount of funds that would have been available in Tiers 1
12-27    and 2 of the Foundation School Program because of adjustment if
 13-1    former Section 42.102 had not been repealed.
 13-2          (c)  A determination by the commissioner under this section
 13-3    is final and may not be appealed.
 13-4          SECTION 1.17.  Subchapter E, Chapter 42, Education Code, is
 13-5    amended by adding Sections 42.2521 and 42.2522 to read as follows:
 13-6          Sec. 42.2521.  ADJUSTMENT FOR RAPID DECLINE IN TAXABLE VALUE
 13-7    OF PROPERTY.  (a)  For purposes of Chapters 41, 46, and this
 13-8    chapter, and to the extent money specifically authorized to be used
 13-9    under this section is available, the commissioner shall adjust the
13-10    taxable value of property in a school district that, due to factors
13-11    beyond the control of the board of trustees, experiences a rapid
13-12    decline in the tax base used in calculating taxable values in
13-13    excess of four percent of the tax base used in the preceding year
13-14    to reflect the current year taxable values.
13-15          (b)  To the extent that a sufficient amount of money is not
13-16    available to fund all adjustments under this section, the
13-17    commissioner shall reduce adjustments in the manner provided by
13-18    Section 42.253(h) so that the total amount of adjustments equals
13-19    the amount of money available to fund the adjustments.
13-20          (c)  A decision of the commissioner under this section is
13-21    final and may not be appealed.
13-22          Sec. 42.2522.  ADJUSTMENT FOR OPTIONAL HOMESTEAD EXEMPTION.
13-23    (a)  In any school year, the commissioner may not provide funding
13-24    under this chapter based on a school district's taxable value of
13-25    property computed in accordance with Section 403.302(d)(2),
13-26    Government Code, unless:
13-27                (1)  funds are specifically appropriated for purposes
 14-1    of this section; or
 14-2                (2)  the commissioner determines that the total amount
 14-3    of state funds appropriated for purposes of the Foundation School
 14-4    Program for the school year exceeds the amount of state funds
 14-5    distributed to school districts in accordance with Section 42.253
 14-6    based on the taxable values of property in school districts
 14-7    computed in accordance with Section 403.302(d), Government Code,
 14-8    without any deduction for residence homestead exemptions granted
 14-9    under Section 11.13(n), Tax Code.
14-10          (b)  In making a determination under Subsection (a)(2), the
14-11    commissioner shall:
14-12                (1)  notwithstanding Section 42.253(b), reduce the
14-13    entitlement under this chapter of a school district whose final
14-14    taxable value of property is higher than the estimate under Section
14-15    42.254 and make payments to school districts accordingly; and
14-16                (2)  give priority to school districts that, due to
14-17    factors beyond the control of the board of trustees, experience a
14-18    rapid decline in the tax base used in calculating taxable values in
14-19    excess of four percent of the tax base used in the preceding year.
14-20          (c)  In the first year of a state fiscal biennium, before
14-21    providing funding as provided by Subsection (a)(2), the
14-22    commissioner shall ensure that sufficient appropriated funds for
14-23    purposes of the Foundation School Program are available for the
14-24    second year of the biennium, including funds to be used for
14-25    purposes of Section 42.2521.
14-26          (d)  If the commissioner determines that the amount of funds
14-27    available under Subsection (a)(1) or (2) does not at least equal
 15-1    the total amount of state funding to which districts would be
 15-2    entitled if state funding under this chapter were based on the
 15-3    taxable values of property in school districts computed in
 15-4    accordance with Section 403.302(d)(2), Government Code, the
 15-5    commissioner may, to the extent necessary, provide state funding
 15-6    based on a uniform lesser fraction of the deduction under Section
 15-7    403.302(d)(2), Government Code.
 15-8          SECTION 1.18.  Section 42.253, Education Code, is amended by
 15-9    amending Subsection (e) and adding Subsection (e-1) to read as
15-10    follows:
15-11          (e)  The commissioner shall recompute the amount to which the
15-12    district is entitled under Subsection (c) if a school district's
15-13    tax rate is less than the limit authorized under this subsection.
15-14    Except as otherwise provided by this subsection, the [The] amount
15-15    to which a district is entitled under this section may not exceed
15-16    the amount to which the district would be entitled at the
15-17    district's tax rate for the final year of the preceding biennium,
15-18    or a different tax rate provided by appropriation.  The amount to
15-19    which a district is entitled under Section 42.303 may not exceed
15-20    the amount to which the district would be entitled based on the
15-21    portion of the district's tax rate for the final year of the
15-22    preceding biennium that meets the requirements of Sections
15-23    42.303(b)(1) and (2).  The commissioner shall recompute the amount
15-24    to which a district is entitled to the extent necessary under this
15-25    section.  The commissioner shall approve warrants to the school in
15-26    the amount that results from the new computation.  An amount equal
15-27    to the difference between the initial allocation and the amount of
 16-1    the warrants shall be transferred to a special account in the
 16-2    foundation school fund known as the reserve account.
 16-3          (e-1)  For the 1999-2000 and 2000-2001 school years, the
 16-4    commissioner shall recompute the limit authorized under Subsection
 16-5    (e) for each school district to be a rate that would entitle the
 16-6    district to an amount of state and local funds per weighted student
 16-7    in the current year, using a guaranteed level of state and local
 16-8    funds per cent of tax effort under Section 42.302 of $23.10, equal
 16-9    to the amount of state and local funds to which the district would
16-10    have been entitled under this chapter for the current school year
16-11    if there had been no change in law.  For purposes of this
16-12    subsection, the commissioner shall base the determination of a
16-13    district's entitlement under prior law on the district's maximum
16-14    tax rate for the 1999-2000 school year under Subsection (e) and the
16-15    funding elements for this chapter as it existed on May 31, 1999.  A
16-16    determination of the commissioner under this subsection is final
16-17    and may not be appealed.  This subsection expires September 1,
16-18    2001.
16-19          SECTION 1.19.  Subsection (a), Section 42.302, Education
16-20    Code, is amended to read as follows:
16-21          (a)  Each school district is guaranteed a specified amount
16-22    per weighted student in state and local funds for each cent of tax
16-23    effort over that required for the district's local fund assignment
16-24    up to the maximum level specified in this subchapter.  The amount
16-25    of state support, subject only to the maximum amount under Section
16-26    42.303, is determined by the formula:
16-27                    GYA = (GL X WADA X DTR X 100) - LR
 17-1    where:
 17-2          "GYA" is the guaranteed yield amount of state funds to be
 17-3    allocated to the district;
 17-4          "GL" is the dollar amount guaranteed level of state and local
 17-5    funds per weighted student per cent of tax effort, which is $24.75
 17-6    [$21] or a greater amount for any year provided by appropriation;
 17-7          "WADA" is the number of students in weighted average daily
 17-8    attendance, which is calculated by dividing the sum of the school
 17-9    district's allotments under Subchapters B and C, less any allotment
17-10    to the district for transportation, any allotment under Section
17-11    42.158 or 42.159, and 50 percent of the adjustment under Section
17-12    42.102, by the basic allotment for the applicable year;
17-13          "DTR" is the district enrichment and facilities tax rate of
17-14    the school district, which is determined by subtracting the amounts
17-15    specified by Subsection (b) from the total amount of taxes
17-16    collected by the school district for the applicable school year and
17-17    dividing the difference by the quotient of the district's taxable
17-18    value of property as determined under Subchapter M, Chapter 403,
17-19    Government Code, or, if applicable, under Section 42.2521, divided
17-20    by 100; and
17-21          "LR" is the local revenue, which is determined by multiplying
17-22    "DTR" by the quotient of the district's taxable value of property
17-23    as determined under Subchapter M, Chapter 403, Government Code, or,
17-24    if applicable, under Section 42.2521, divided by 100.
17-25          SECTION 1.20.  Section 42.303, Education Code, is amended to
17-26    read as follows:
17-27          Sec. 42.303.  LIMITATION ON ENRICHMENT AND FACILITIES TAX
 18-1    RATE.  (a)  Except as otherwise provided by this section, the [The]
 18-2    district enrichment and facilities tax rate ("DTR") under Section
 18-3    42.302 may not exceed $0.64 per $100 of valuation, or a greater
 18-4    amount for any year provided by appropriation.
 18-5          (b)  A district may receive state assistance under this
 18-6    subchapter based on taxes imposed to pay the principal of and
 18-7    interest on bonds for which taxes to pay the principal and interest
 18-8    were first levied in a school year before the 1997-1998 school
 18-9    year, or on bonds issued to refund such bonds, if:
18-10                (1)  the district's total tax rate exceeds a rate equal
18-11    to the sum of the local fund assignment rate under Section 42.252
18-12    and the rate prescribed by Subsection (a); and
18-13                (2)  all or part of the excess described by Subdivision
18-14    (1) is attributable to taxes imposed to pay the principal of and
18-15    interest on bonds described by this subsection.
18-16          (c)  A district may not receive state assistance for any
18-17    portion of a tax rate that exceeds the limit prescribed by
18-18    Subsection (a) that is attributable to maintenance and operations
18-19    taxes.
18-20          (d)  The tax rate for which a district may receive state
18-21    assistance as provided by Subsection (b) may not exceed the rate
18-22    that would be necessary for the current year, using state funds
18-23    under Section 42.302, to make payments of principal and interest on
18-24    the bonds described by Subsection (b) for which the tax is pledged.
18-25          (e)  For purposes of this section:
18-26                (1)  a district's total tax rate is determined by
18-27    subtracting the amounts specified by Subsection (f) from the total
 19-1    amount of taxes collected by the school district for the applicable
 19-2    school year and dividing the difference by the quotient of the
 19-3    district's taxable value of property as determined under Subchapter
 19-4    M, Chapter 403, Government Code, or, if applicable, under Section
 19-5    42.2521 divided by 100; and
 19-6                (2)  in place of the guaranteed level of state and
 19-7    local funds ("GL") provided under Section 42.302, the guaranteed
 19-8    level of state and local funds per weighted student per cent of tax
 19-9    effort is $23.10, or a greater amount for any year provided by
19-10    appropriation.
19-11          (f)  In computing the total tax rate of a school district,
19-12    the total amount of taxes collected by the school district does not
19-13    include the amount of:
19-14                (1)  taxes collected to pay the local share of the cost
19-15    of an instructional facility for which the district receives state
19-16    assistance under Chapter 46; or
19-17                (2)  taxes paid into a tax increment fund under Chapter
19-18    311, Tax Code.
19-19          SECTION 1.21.  Subsection (a), Section 46.003, Education
19-20    Code, is amended to read as follows:
19-21          (a)  For each year, except as provided by Sections 46.005 and
19-22    46.006, a school district is guaranteed a specified amount per
19-23    student in state and local funds for each cent of tax effort, up to
19-24    the maximum rate under Subsection (b), to pay the principal of and
19-25    interest on eligible bonds issued to construct, acquire, renovate,
19-26    or improve an instructional facility.  The amount of state support
19-27    is determined by the formula:
 20-1             FYA = (FYL X ADA X BTR X 100) - (BTR X (DPV/100))
 20-2    where:
 20-3          "FYA" is the guaranteed facilities yield amount of state
 20-4    funds allocated to the district for the year;
 20-5          "FYL" is the dollar amount guaranteed level of state and
 20-6    local funds per student per cent of tax effort, which is $33 [$28]
 20-7    or a greater amount for any year provided by appropriation;
 20-8          "ADA" is the number of students in average daily attendance,
 20-9    as determined under Section 42.005, in the district;
20-10          "BTR" is the district's bond tax rate for the current year,
20-11    which is determined by dividing the amount of taxes budgeted to be
20-12    collected by the district for payment of eligible bonds by the
20-13    quotient of the district's taxable value of property as determined
20-14    under Subchapter M, Chapter 403, Government Code, or, if
20-15    applicable, Section 42.2521, divided by 100; and
20-16          "DPV" is the district's taxable value of property as
20-17    determined under Subchapter M, Chapter 403, Government Code, or, if
20-18    applicable, Section 42.2521.
20-19          SECTION 1.22.  Sections 21.401 and 21.402, Education Code,
20-20    are amended to read as follows:
20-21          Sec. 21.401.  Minimum Service Required.  (a)  A contract
20-22    between a school district and an educator must be for a minimum of
20-23    10 months' service.
20-24          (a-4)  For the 1998-1999 school year, an educator employed
20-25    under a 10-month contract must provide a minimum of 187 days of
20-26    service.  This subsection expires September 1, 1999.
20-27          (b)  An educator employed under a 10-month contract must
 21-1    provide a minimum [number] of 187 days of service [as determined by
 21-2    the following formula:]
 21-3                 [MDS = 185 + (0.33 X (R1 - R2)/(R2/185) )]
 21-4    [where:]
 21-5          ["MDS" is the minimum number of days of service;]
 21-6          ["R1" is equal to FSP/ADA as determined under Section 21.402
 21-7    for the fiscal year; and]
 21-8          ["R2" is equal to FSP/ADA as determined under Section 21.402
 21-9    for the 1996-1997 school year].
21-10          [(b-1)  Subsection (b) applies beginning with the 1999-2000
21-11    school year.  This subsection expires January 1, 2000.]
21-12          (c)  [The result of the formula prescribed by Subsection (b)
21-13    shall be rounded to the nearest whole number.]
21-14          [(d)]  The commissioner, as provided by Section 25.081(b),
21-15    may reduce the number of days of service required by this section.
21-16    A reduction by the commissioner does not reduce an educator's
21-17    salary.
21-18          Sec. 21.402.  MINIMUM SALARY SCHEDULE FOR CERTAIN
21-19    PROFESSIONAL STAFF [CLASSROOM TEACHERS AND FULL-TIME LIBRARIANS].
21-20    (a)  Except as provided by Subsection (d), [or] (e), or (f), a
21-21    school district must pay each classroom teacher, [or] full-time
21-22    librarian, full-time counselor, or full-time school nurse not less
21-23    than the minimum monthly salary, based on the employee's level of
21-24    experience, determined by the following formula:
21-25                         MS = SF X FS [(FSP/ADA)]
21-26    where:
21-27          "MS" is the minimum monthly salary;
 22-1          "SF" is the applicable salary factor specified by Subsection
 22-2    (c); and
 22-3          "FS" is the amount, as determined by the commissioner under
 22-4    Subsection (b), of state and local funds per weighted student
 22-5    available to a district eligible to receive state assistance under
 22-6    Section 42.302 with an enrichment and facilities tax rate, as
 22-7    defined by Section 42.302, equal to the maximum rate authorized
 22-8    under Section 42.303(a) ["FSP" is the amount appropriated in the
 22-9    General Appropriations Act for the fiscal year for the Foundation
22-10    School Program, as determined by the commissioner as provided by
22-11    Subsection (b); and]
22-12          ["ADA" is the total estimated average daily attendance, as
22-13    defined by Section 42.005, used for purposes of the General
22-14    Appropriations Act for the fiscal year].
22-15          (b)  Not later than June 1 of each year, the commissioner
22-16    shall determine the amount of state and local funds per weighted
22-17    student available, for purposes of Subsection (a), to a district
22-18    described by that subsection for the following school year
22-19    [appropriated for purposes of Chapter 42 for the state fiscal year
22-20    beginning September 1.  The commissioner shall exclude from the
22-21    determination:]
22-22                [(1)  amounts designated solely for use in connection
22-23    with school facilities or for payment of principal of and interest
22-24    on bonds; and]
22-25                [(2)  local funds received under Subchapter D, Chapter
22-26    41].
22-27          (c)  The salary factors per step are as follows:
 23-1    Years Experience       0         1         2         3         4
 23-2    Salary Factor        .5615     .5748     .5882     .6014     .6295
 23-3                        [.8470]   [.8699]   [.8928]   [.9156]   [.9639]
 23-4    Years Experience      5         6         7         8         9
 23-5    Salary Factor        .6575     .6856     .7117     .7362     .7596
 23-6                       [1.0122]  [1.0605]  [1.1054]  [1.1477]  [1.1879]
 23-7    Years Experience      10        11        12        13        14
 23-8    Salary Factor        .7815     .8024     .8221     .8406     .8583
 23-9                       [1.2256]  [1.2616]  [1.2955]  [1.3273]  [1.3578]
23-10    Years Experience      15        16        17        18        19
23-11    Salary Factor        .8748     .8905     .9053     .9193     .9326
23-12                       [1.3862]  [1.4133]  [1.4387]  [1.4628]  [1.4857]
23-13    Years Experience 20 and over
23-14    Salary Factor        .9451
23-15                       [1.5073]
23-16          (c-1)  Notwithstanding Subsection (a), for the 1999-2000
23-17    school year, a classroom teacher, full-time librarian, full-time
23-18    counselor, or full-time nurse is entitled to a monthly salary that
23-19    is at least equal to:
23-20                (1)  the monthly salary the employee would have
23-21    received for the 1999-2000 school year under the district's salary
23-22    schedule for the 1998-1999 school year, if that schedule had been
23-23    in effect for the 1999-2000 school year, including any local
23-24    supplement and any money representing a career ladder supplement
23-25    the employee would have received in the 1999-2000 school year; and
23-26                (2)  $300.
23-27          (c-2)  Subsection (c-1) and this subsection expire September
 24-1    1, 2000.
 24-2          (d)  A teacher, librarian, counselor, or nurse employed by a
 24-3    school district in the 1999-2000 school year is, as long as the
 24-4    employee is employed by the same district, entitled to a monthly
 24-5    salary that is at least equal to the sum of:
 24-6                (1)  the monthly salary the employee received for the
 24-7    1999-2000 school year, including any local supplement and any money
 24-8    representing a career ladder supplement the employee received in
 24-9    that year; and
24-10                (2)  the difference, determined using the schedule
24-11    under this section, between the monthly salary for the current
24-12    school year for the salary step at which the employee is placed for
24-13    that year and the monthly salary for the 1999-2000 school year for
24-14    the salary step at which the employee was placed for that year.
24-15          (e)  If the minimum monthly salary determined under
24-16    Subsection (a) for a particular level of experience is less than
24-17    the minimum monthly salary for that level of experience in the
24-18    preceding year, the minimum monthly salary is the minimum monthly
24-19    salary for the preceding year.
24-20          (f) [(e)]  Notwithstanding Subsection (a), a teacher or
24-21    librarian who received a career ladder supplement on August 31,
24-22    1993, is entitled to at least the same gross  monthly salary the
24-23    teacher or librarian received for the 1994-1995 school year as long
24-24    as the teacher or librarian is employed by the same district.
24-25          (g) [(f)]  In this section, "gross monthly salary" must
24-26    include the amount a teacher or librarian received that represented
24-27    a career ladder salary supplement under Section 16.057, as that
 25-1    section existed January 1, 1993.
 25-2          SECTION 1.23.  Subsections (a) and (c), Section 21.403,
 25-3    Education Code, are amended to read as follows:
 25-4          (a)  A teacher, [or] librarian, counselor, or nurse shall
 25-5    advance one step on the minimum salary schedule under Section
 25-6    21.402 for each year of experience as a teacher, [or] librarian,
 25-7    counselor, or nurse until step 20 is reached.
 25-8          (c)  The commissioner shall adopt rules for determining the
 25-9    experience for which a teacher, [or] librarian, counselor, or nurse
25-10    is to be given credit in placing the teacher, [or] librarian,
25-11    counselor, or nurse on the minimum salary schedule.  A district
25-12    shall credit the teacher, [or] librarian, counselor, or nurse for
25-13    each year of experience without regard to whether the years are
25-14    consecutive.
25-15          SECTION 1.24.  Section 25.039(b), Education Code, is amended
25-16    to read as follows:
25-17          (b)  The school district in which the students reside shall
25-18    pay tuition to any district with which it has a contract under this
25-19    section for each of its students attending school in that district
25-20    at a grade level for which the district has contracted.  The amount
25-21    of the tuition paid may not exceed the lesser of the amount
25-22    provided for by Section 25.038 or an amount specified by
25-23    commissioner rule [if the board of trustees of the district in
25-24    which the students reside finds the excess payment to be in the
25-25    best interest of the district's educational program].
25-26          SECTION 1.25.  Subsection (b), Section 30.102, Education
25-27    Code, is amended to read as follows:
 26-1          (b)  A classroom teacher, [or] full-time librarian, full-time
 26-2    counselor, or full-time school nurse employed by the commission is
 26-3    entitled to receive as a minimum salary the monthly salary [rate]
 26-4    specified by Section 21.402.  A classroom teacher, [or] full-time
 26-5    librarian, full-time counselor, or full-time nurse may be paid,
 26-6    from funds appropriated to the commission, a salary in excess of
 26-7    the minimum specified by that section, but the salary may not
 26-8    exceed the rate of pay for a similar position in the public schools
 26-9    of an adjacent school district.
26-10          SECTION 1.26.  Subsections (a) and (c), Section 45.104,
26-11    Education Code, are amended to read as follows:
26-12          (a)  The board of trustees of any school district may pledge
26-13    its delinquent taxes levied for maintenance purposes for specific
26-14    past, current, and future school years as security for a loan, and
26-15    may evidence any such loan with negotiable notes, and the
26-16    delinquent taxes pledged shall be applied against the principal and
26-17    interest of the loan [as they are collected].  Negotiable notes
26-18    issued under this subsection must mature in not more than 20 years
26-19    from their date.
26-20          (c)  Funds secured through loans secured by delinquent taxes
26-21    may be employed for any legal maintenance expenditure or purpose of
26-22    the school district, including all costs incurred in connection
26-23    with:
26-24                (1)  environmental cleanup and asbestos removal
26-25    programs implemented by school districts; or
26-26                (2)  maintenance, repair, rehabilitation, or
26-27    replacement of heating, air conditioning, water, sanitation,
 27-1    roofing, flooring, electric, or other building systems of existing
 27-2    school properties.
 27-3          SECTION 1.27.  Subsections (a), (b), and (d), Section 45.108,
 27-4    Education Code, are amended to read as follows:
 27-5          (a)  Independent or consolidated school districts may borrow
 27-6    money for the purpose of paying maintenance expenses and may
 27-7    evidence those loans with negotiable notes, except that the loans
 27-8    may not at any time exceed 75 percent of the previous year's
 27-9    income.  The notes may be payable from and secured by a lien on and
27-10    pledge of any available funds of the district, including proceeds
27-11    of a maintenance tax.  The term "maintenance expenses" or
27-12    "maintenance expenditures" as used in this section means any lawful
27-13    expenditure of the school district other than payment of principal
27-14    of and interest on bonds.  The term includes all costs incurred in
27-15    connection with environmental cleanup and asbestos cleanup and
27-16    removal programs implemented by school districts or in connection
27-17    with the maintenance, repair, rehabilitation, or replacement of
27-18    heating, air conditioning, water, sanitation, roofing, flooring,
27-19    electric, or other building systems of existing school properties.
27-20    Notes issued pursuant to this section [an environmental cleanup and
27-21    asbestos cleanup and removal program] may be issued to mature in
27-22    not more than 20 [15] years from their date.  Notes issued for a
27-23    term longer than one year must be treated as "debt" as defined in
27-24    Section 26.012(7), Tax Code.
27-25          (b)  Notes for a term of less than one year may be issued
27-26    under this section only after a budget has been adopted for the
27-27    current school year.
 28-1          (d)  A note issued under this section for a term of less than
 28-2    one year may contain a certification that it is issued pursuant to
 28-3    and in compliance with this section and pursuant to a resolution
 28-4    adopted by the board of trustees.  The certification is sufficient
 28-5    evidence that the note is a valid obligation of the district.
 28-6          SECTION 1.28.  Section 403.302, Government Code, as amended
 28-7    by S.B. No. 1368, Acts of the 76th Legislature, Regular Session,
 28-8    1999, is amended by amending Subsections (d) and (h) and adding
 28-9    Subsection (j) to read as follows:
28-10          (d)  For the purposes of this section, "taxable value" means
28-11    the market value of all taxable property less:
28-12                (1)  the total dollar amount of any residence homestead
28-13    exemptions lawfully granted under Section 11.13(b) or (c), Tax
28-14    Code, in the year that is the subject of the study for each school
28-15    district;
28-16                (2)  one-half of the total dollar amount of any
28-17    residence homestead exemptions granted under Section 11.13(n), Tax
28-18    Code, in the year that is the subject  of the study for each school
28-19    district;
28-20                (3) [(2)]  the total dollar amount of any exemptions
28-21    granted before May 31, 1993, within a reinvestment zone under
28-22    agreements authorized by Chapter 312, Tax Code;
28-23                (4) [(3)]  the total dollar amount of any captured
28-24    appraised value of property that is located in a reinvestment zone
28-25    on August 31, 1999, generates a tax increment paid into a tax
28-26    increment fund, and is eligible for tax increment financing under
28-27    Chapter 311, Tax Code, under a reinvestment zone financing plan
 29-1    approved under  Section 311.011(d), Tax Code, before September 1,
 29-2    1999;
 29-3                (5) [(4)]  the total dollar amount of any exemptions
 29-4    granted under Section 11.251, Tax Code;
 29-5                (6) [(5)]  the difference between the comptroller's
 29-6    estimate of the market value and the productivity value of land
 29-7    that qualifies for appraisal on the basis of its productive
 29-8    capacity, except that the productivity value estimated by the
 29-9    comptroller may not exceed the fair market value of the land;
29-10                (7) [(6)]  the portion of the appraised value of
29-11    residence homesteads of the elderly on which school district taxes
29-12    are not imposed in the year that is the subject of the study,
29-13    calculated as if the residence homesteads were appraised at the
29-14    full value required by law;
29-15                (8) [(7)]  a portion of the market value of property
29-16    not otherwise fully taxable by the district at market value because
29-17    of action required by statute or the constitution of this state
29-18    that, if the tax rate adopted by the district is applied to it,
29-19    produces an amount equal to the difference between the tax that the
29-20    district would have imposed on the property if the property were
29-21    fully taxable at market value and the tax that the district is
29-22    actually authorized to impose on the property, if this subsection
29-23    does not otherwise require that portion to be deducted;
29-24                (9) [(8)]  the market value of all tangible personal
29-25    property, other than manufactured homes, owned by a family or
29-26    individual and not held or used for the production of income;
29-27                (10) [(9)]  the appraised value of property the
 30-1    collection of delinquent taxes on which is deferred under Section
 30-2    33.06, Tax Code;
 30-3                (11) [(10)]  the portion of the appraised value of
 30-4    property the collection of delinquent taxes on which is deferred
 30-5    under Section 33.065, Tax Code; and
 30-6                (12) [(11)]  the amount by which the market value of a
 30-7    residence homestead to which Section 23.23, Tax Code, applies
 30-8    exceeds the appraised value of that property as calculated under
 30-9    that section.
30-10          (h)  For purposes of Section [Sections 41.0011 and] 42.2511,
30-11    Education Code, [for the 1996 and 1997 tax years,] the comptroller
30-12    shall certify to the commissioner of education:
30-13                (1)  a final value for each school district computed on
30-14    a residence homestead exemption under Section 1-b(c), Article VIII,
30-15    Texas Constitution, of $5,000; and
30-16                (2)  a final value for each school district computed
30-17    on:
30-18                      (A)  a residence homestead exemption under
30-19    Section 1-b(c), Article VIII, Texas Constitution, of $15,000; and
30-20                      (B)  the effect of the additional limitation on
30-21    tax increases under Section 1-b(d), Article VIII, Texas
30-22    Constitution, as proposed by H.J.R. No. 4, 75th Legislature,
30-23    Regular Session, 1997.
30-24          (j)  For purposes of Section 42.2522, Education Code, the
30-25    comptroller shall certify to the commissioner of education:
30-26                (1)  a final value for each school district computed
30-27    without any deduction for residence homestead exemptions granted
 31-1    under Section 11.13(n), Tax Code; and
 31-2                (2)  a final value for each school district computed
 31-3    after deducting one-half the total dollar amount of residence
 31-4    homestead exemptions granted under Section 11.13(n), Tax Code.
 31-5          SECTION 1.29.  Subdivision (8), Section 271.003, Local
 31-6    Government Code, is amended to read as follows:
 31-7                (8)  "Personal property" includes appliances,
 31-8    equipment, facilities, and furnishings, or an interest in personal
 31-9    property, whether movable or fixed, considered by the governing
31-10    body of the governmental agency to be necessary, useful, or
31-11    appropriate to one or more purposes of the governmental agency.
31-12    The term includes all materials and labor incident to the
31-13    installation of that personal property.  The term does not include
31-14    real property.
31-15          SECTION 1.30.  Section 271.005, Local Government Code, is
31-16    amended by adding Subsection (b) to read as follows:
31-17          (b)  The governing body of a governmental agency may contract
31-18    under this section for materials and labor incident to the
31-19    installation of personal property.
31-20          SECTION 1.31.  Subsection (b), Section 271.007, Local
31-21    Government Code, is amended to read as follows:
31-22          (b)  After the contract has been approved and registered as
31-23    provided by this section, the contract is valid and is
31-24    incontestable for any cause.  The legal obligation of the lessor,
31-25    vendor, or supplier of personal property or of the person
31-26    installing personal property to the governmental agency is not
31-27    diminished in any respect by the approval and registration of the
 32-1    contract.
 32-2          SECTION 1.32.  Section 26.08, Tax Code, is amended by
 32-3    amending Subsection (i) and adding Subsections (j)-(n) to read as
 32-4    follows:
 32-5          (i)  For purposes of this section, the rollback tax rate of a
 32-6    school district is the sum of:
 32-7                (1)  the tax rate that, applied to the current total
 32-8    value for the district, would impose taxes in an amount that, when
 32-9    added to state funds that would be distributed to the district
32-10    under Chapter 42, Education Code, for the school year beginning in
32-11    the current tax year using that tax rate, would provide the same
32-12    amount of state funds distributed under Chapter 42 and maintenance
32-13    and operations taxes of the district per student in weighted
32-14    average daily attendance for that school year that would have been
32-15    [was] available to the district in the preceding year if the
32-16    funding elements for Chapters 41 and 42, Education Code, for the
32-17    current year had been in effect for the preceding year;
32-18                (2)  the rate of $0.08 per $100 of taxable value; and
32-19                (3)  the district's current debt rate.
32-20          (j)  For purposes of Subsection (i), the amount of state
32-21    funds that would have been available to a school district in the
32-22    preceding year is computed using the maximum tax rate for the
32-23    current year under Section 42.253(e), Education Code.
32-24          (k)  Except as provided by Subsection (l), for purposes of
32-25    this section, for the 1999 tax year, the  rollback tax rate of a
32-26    school district is the sum of:
32-27                (1)  the tax rate that, applied to the current total
 33-1    value for the district, would impose maintenance and operations
 33-2    taxes in an amount that, when added to the amount of state funds
 33-3    that would be distributed to the district under Chapter 42,
 33-4    Education Code, for the 1999-2000 school year using that tax rate
 33-5    and a guaranteed level of state and local funds per weighted
 33-6    student per cent of tax effort under Section 42.302, Education
 33-7    Code, of $23.10, would provide the same amount of state funds
 33-8    distributed under Chapter 42 and maintenance and operations taxes
 33-9    of the district per student in weighted average daily attendance
33-10    for the 1999-2000 school year that would have been available to the
33-11    district in the 1999-2000 school year, using:
33-12                      (A)  the maximum tax rate for the 1999-2000
33-13    school year under Section 42.253(e), Education Code, for which
33-14    state funding would be provided; and
33-15                      (B)  the funding elements for Chapters 41 and 42,
33-16    Education Code, for the 1998-1999 school year;
33-17                (2)  the rate of $0.08 per $100 of taxable value; and
33-18                (3)  the district's current debt rate.
33-19          (l)  For purposes of this section, for the 1999 tax year, the
33-20    rollback tax rate of a school district that is required to take
33-21    action under Chapter 41, Education Code, to reduce its wealth per
33-22    student to the equalized wealth level is the sum of:
33-23                (1)  the tax rate that, applied to the current total
33-24    value for the district, would impose an amount of maintenance and
33-25    operations taxes per student in weighted average daily attendance
33-26    for the 1999-2000 school year equal to the sum of:
33-27                      (A)  the maintenance and operations taxes per
 34-1    student in weighted average daily attendance that were available to
 34-2    the district in the 1998-1999 school year; and
 34-3                      (B)  one-half the amount of additional
 34-4    maintenance and operations taxes per student in weighted average
 34-5    daily attendance available to the district due to the increase in
 34-6    the equalized wealth level under Section 41.002(a), Education Code,
 34-7    and the increase in the wealth per student that a district may have
 34-8    under Sections 41.002(e) and (g), Education Code, computed using
 34-9    the district's tax rate for the 1998-1999 school year for purposes
34-10    of Chapter 41, Education Code;
34-11                (2)  the rate of $0.08 per $100 of taxable value; and
34-12                (3)  the district's current debt rate.
34-13          (m)  For purposes of Subsections (j) and (k), the amount of
34-14    maintenance and operations taxes and state funds available to a
34-15    school district does not include amounts provided to the district
34-16    in accordance with Section 41.100, 42.159(a), or 42.2512, Education
34-17    Code.
34-18          (n)  Subsections (j)-(m) and this subsection expire September
34-19    1, 2000.
34-20          SECTION 1.33.  In placing a counselor or school nurse on the
34-21    minimum salary schedule in accordance with Sections 21.402 and
34-22    21.403, Education Code, as amended by this Act, a school district
34-23    shall credit the counselor or nurse for each year of experience in
34-24    accordance with rules adopted by the commissioner of education,
34-25    regardless of whether the experience was gained before, during, or
34-26    after the 1999-2000 school year.
34-27          SECTION 1.34.  (a)  The Charles A. Dana Center at The
 35-1    University of Texas at Austin shall conduct a study of variations
 35-2    in known resource costs and costs of education beyond the control
 35-3    of a school district.
 35-4          (b)  Not later than November 1, 2000, the center shall make
 35-5    recommendations to the 77th Legislature as to methods of adjusting
 35-6    funding under Chapter 42, Education Code, to reflect variations in
 35-7    resource costs and costs of education.  At least one recommended
 35-8    method of adjustment must be a method that would require a smaller
 35-9    appropriation for the state fiscal biennium beginning September 1,
35-10    2001, than the appropriation that would be required for that
35-11    biennium by the cost of education adjustment under Section 42.102,
35-12    Education Code, as that section existed on May 31, 1999.
35-13          (c)  The Texas Education Agency and Texas A&M University
35-14    shall assist the center in conducting the study and making the
35-15    recommendations.
35-16           ARTICLE 2.  PROGRAM IMPROVEMENTS AND SOCIAL PROMOTION
35-17          SECTION 2.01.  Subchapter E, Chapter 29, Education Code, is
35-18    amended by adding Sections 29.155 and 29.156 to read as follows:
35-19          Sec. 29.155.  KINDERGARTEN AND PREKINDERGARTEN GRANTS.
35-20    (a)  From amounts appropriated for the purposes of this section,
35-21    the commissioner may make grants to school districts to implement
35-22    or expand kindergarten and prekindergarten programs by:
35-23                (1)  operating an existing half-day kindergarten or
35-24    prekindergarten program on a full-day basis; or
35-25                (2)  implementing a prekindergarten program at a campus
35-26    that does not have a prekindergarten program.
35-27          (b)  A school district may use funds received under this
 36-1    section to employ teachers and other personnel for a kindergarten
 36-2    or prekindergarten program and acquire curriculum materials or
 36-3    equipment, including computers, for use in kindergarten and
 36-4    prekindergarten programs.
 36-5          (c)  To be eligible for a grant under this section, a school
 36-6    district must apply to the commissioner in the manner and within
 36-7    the time prescribed by the commissioner.
 36-8          (d)  In awarding grants under this section, the commissioner
 36-9    shall give priority to districts in which the level of performance
36-10    of students on the assessment instruments administered under
36-11    Section 39.023 to students in grade three is substantially below
36-12    the average level of performance on those assessment instruments
36-13    for all school districts in the state.
36-14          (e)  The commissioner may adopt rules to administer this
36-15    section.
36-16          (f)  Notwithstanding Section 7.056(e)(3)(I), the commissioner
36-17    may waive a requirement prescribed by this subchapter to the extent
36-18    necessary to implement a grant awarded under this section or
36-19    Section 29.156.
36-20          Sec. 29.156.  GRANTS FOR EDUCATIONAL COMPONENT OF HEAD START.
36-21    (a)  From funds appropriated for the purpose, the commissioner
36-22    shall make grants for use in providing an educational component to
36-23    federal Head Start programs or similar government-funded early
36-24    childhood care and education programs.
36-25          (b)  The commissioner shall adopt rules for implementation of
36-26    this section, including rules prescribing eligibility criteria for
36-27    receipt of a grant and for expenditure of grant funds.
 37-1          SECTION 2.02.  Subchapter C, Chapter 29, Education Code, is
 37-2    amended by adding Section 29.086 to read as follows:
 37-3          Sec. 29.086.  BASIC SKILLS PROGRAMS FOR HIGH SCHOOL STUDENTS.
 37-4    (a)  A school district may apply to the commissioner for funding of
 37-5    special programs for students in grade 9 who have not earned
 37-6    sufficient credit to advance to grade 10 and who fail to meet
 37-7    minimum skills levels established by the commissioner.  A school
 37-8    district may, with the consent of a student's parent or guardian,
 37-9    assign a student to a program under this section.  A program under
37-10    this section may not exceed 210 instructional days.
37-11          (b)  A program under this section must emphasize basic skills
37-12    in areas of the required curriculum under Section 28.002 and must
37-13    offer students the opportunity to increase credits required for
37-14    high school graduation under state or school district policy.  A
37-15    program under this section may be provided by a school district or
37-16    an entity contracting with a school district to provide the
37-17    program.
37-18          (c)  The commissioner shall award funds to districts in
37-19    accordance with a competitive grant process developed by the
37-20    commissioner.  A grant may be made to a consortium of school
37-21    districts. The criteria by which the commissioner awards a grant
37-22    must include the quality of the proposed program and the school
37-23    district's demonstrated need for the program.  An approved program
37-24    must include criteria that permit measurement of student progress,
37-25    and the district shall:
37-26                (1)  annually evaluate the progress of students in the
37-27    program; and
 38-1                (2)  submit the results of the evaluation to the
 38-2    commissioner at the end of the school year.
 38-3          (d)  The commissioner shall establish minimum levels of
 38-4    student enrollment and standards of student progress required for
 38-5    continued funding of a program under this section.  The
 38-6    commissioner may eliminate funding for a program in a subsequent
 38-7    school year if the program fails to achieve sufficient levels of
 38-8    student progress.
 38-9          (e)  The amount of a grant under this section must take into
38-10    account funds distributed to the school district under Chapter 42.
38-11          (f)  The commissioner may adopt rules for the administration
38-12    of programs under this section.
38-13          SECTION 2.03.  Subsection (b), Section 12.104, Education
38-14    Code, is amended to read as follows:
38-15          (b)  An open-enrollment charter school is subject to:
38-16                (1)  a provision of this title establishing a criminal
38-17    offense; and
38-18                (2)  a prohibition, restriction, or requirement, as
38-19    applicable, imposed by this title or a rule adopted under this
38-20    title, relating to:
38-21                      (A)  the Public Education Information Management
38-22    System (PEIMS) to the extent necessary to monitor compliance with
38-23    this subchapter as determined by the commissioner;
38-24                      (B)  criminal history records under Subchapter C,
38-25    Chapter 22;
38-26                      (C)  reading instruments and accelerated reading
38-27    instruction programs under Section 28.006;
 39-1                      (D)  satisfactory performance on assessment
 39-2    instruments and to accelerated instruction under Section 28.0211;
 39-3                      (E)  high school graduation under Section 28.025;
 39-4                      (F) [(D)]  special education programs under
 39-5    Subchapter A, Chapter 29;
 39-6                      (G) [(E)]  bilingual education under Subchapter
 39-7    B, Chapter 29;
 39-8                      (H) [(F)]  prekindergarten programs under
 39-9    Subchapter E, Chapter 29;
39-10                      (I) [(G)]  extracurricular activities under
39-11    Section 33.081;
39-12                      (J) [(H)]  health and safety under Chapter 38;
39-13    and
39-14                      (K) [(I)]  public school accountability under
39-15    Subchapters B, C, D, and G, Chapter 39.
39-16          SECTION 2.04.  Subsection (d), Section 25.085, Education
39-17    Code, is amended to read as follows:
39-18          (d)  Unless specifically exempted by Section 25.086, a
39-19    student enrolled in a school district must attend:
39-20                (1)  an extended-year program for which the student is
39-21    eligible that is provided by the district for students identified
39-22    as likely not to be promoted to the next grade level or tutorial
39-23    classes required by the district under Section 29.084;
39-24                (2)  an accelerated reading instruction program to
39-25    which the student is assigned under Section 28.006(g);
39-26                (3)  an accelerated instruction program to which the
39-27    student is assigned under Section 28.0211; or
 40-1                (4)  a basic skills program to which the student is
 40-2    assigned under Section 29.086.
 40-3          SECTION 2.05.  Section 28.006, Education Code, is amended by
 40-4    amending Subsection (d) and adding Subsections (g)-(m) to read as
 40-5    follows:
 40-6          (d)  The superintendent of each school district shall:
 40-7                (1)  report to the commissioner and the board of
 40-8    trustees of the district the results of the reading instruments;
 40-9    and
40-10                (2)  report, in writing, to a student's parent or
40-11    guardian the student's results on the reading instrument.
40-12          (g)  A school district shall notify the parent or guardian of
40-13    each student in kindergarten or first or second grade who is
40-14    determined, on the basis of reading instrument results, to be below
40-15    grade level in reading development or comprehension.  The district
40-16    shall implement an accelerated reading instruction program that
40-17    provides reading instruction to those students and shall determine
40-18    the form, content, and timing of that program.  The admission,
40-19    review, and dismissal committee of a student who participates in a
40-20    district's special education program under Subchapter B, Chapter
40-21    29, and who does not perform satisfactorily on a reading instrument
40-22    under this section shall determine the manner in which the student
40-23    will participate in an accelerated reading instruction program
40-24    under this subsection.
40-25          (h)  The school district shall make a good faith effort to
40-26    ensure that the notice required under this section is provided
40-27    either in person or by regular mail and that the notice is clear
 41-1    and easy to understand and is written in English and in the parent
 41-2    or guardian's native language.
 41-3          (i)  The commissioner shall certify, not later than July 1 of
 41-4    each school year or as soon as practicable thereafter, whether
 41-5    sufficient funds have been appropriated statewide for the purposes
 41-6    of this section.  A determination by the commissioner is final and
 41-7    may not be appealed.  For purposes of certification, the
 41-8    commissioner may not consider Foundation School Program funds.
 41-9          (j)  No more than 15 percent of the funds certified by the
41-10    commissioner under Subsection (i) may be spent on indirect costs.
41-11    The commissioner shall evaluate the programs that fail to meet the
41-12    standard of performance under Section 39.051(b)(7) and may
41-13    implement sanctions under Subchapter G, Chapter 39.  The
41-14    commissioner may audit the expenditures of funds appropriated for
41-15    purposes of this section.  The use of the funds appropriated for
41-16    purposes of this section shall be verified as part of the district
41-17    audit under Section 44.008.
41-18          (k)  The provisions of this section relating to parental
41-19    notification of a student's results on the reading instrument and
41-20    to implementation of an accelerated reading instruction program may
41-21    be implemented only if the commissioner certifies that funds have
41-22    been appropriated during a school year for administering the
41-23    accelerated reading instruction program specified under this
41-24    section.
41-25          (l)  Each district shall provide the accelerated reading
41-26    instruction under Subsection (g) to students in:
41-27                (1)  kindergarten during the 1999-2000 school year;
 42-1                (2)  kindergarten and first grade during the 2000-2001
 42-2    school year; and
 42-3                (3)  kindergarten and first and second grades beginning
 42-4    with the 2001-2002 school year.
 42-5          (m)  Subsection (l) and this subsection expire January 1,
 42-6    2002.
 42-7          SECTION 2.06.  Subchapter B, Chapter 28, Education Code, is
 42-8    amended by adding Section 28.0211 to read as follows:
 42-9          Sec. 28.0211.  SATISFACTORY PERFORMANCE ON ASSESSMENT
42-10    INSTRUMENTS REQUIRED; ACCELERATED INSTRUCTION.  (a)  Except as
42-11    provided by Subsection (e), a student may not be promoted to:
42-12                (1)  the fourth grade program to which the student
42-13    would otherwise be assigned if the student does not perform
42-14    satisfactorily on the third grade reading assessment instrument
42-15    under Section 39.023;
42-16                (2)  the sixth grade program to which the student would
42-17    otherwise be assigned if the student does not perform
42-18    satisfactorily on the fifth grade mathematics and reading
42-19    assessment instruments under Section 39.023; or
42-20                (3)  the ninth grade program to which the student would
42-21    otherwise be assigned if the student does not perform
42-22    satisfactorily on the eighth grade mathematics and reading
42-23    assessment instruments under Section 39.023.
42-24          (b)  A school district shall provide to a student who
42-25    initially fails to perform satisfactorily on an assessment
42-26    instrument specified under Subsection (a) at least two additional
42-27    opportunities to take the assessment instrument.
 43-1          (c)  Each time a student fails to perform satisfactorily on
 43-2    an assessment instrument specified under Subsection (a), the school
 43-3    district in which the student attends school shall provide to the
 43-4    student accelerated instruction in the applicable subject area,
 43-5    including reading instruction for a student who fails to perform
 43-6    satisfactorily on a reading assessment instrument.  After a student
 43-7    fails to perform satisfactorily on an assessment instrument a
 43-8    second time, a grade placement committee shall be established to
 43-9    prescribe the accelerated instruction the district shall provide to
43-10    the student before the student is administered the assessment
43-11    instrument the third time.  The grade placement committee shall be
43-12    composed of the principal or the principal's designee, the
43-13    student's parent or guardian, and the teacher of the subject of an
43-14    assessment instrument on which the student failed to perform
43-15    satisfactorily.  The district shall notify the parent or guardian
43-16    of the time and place for convening the grade placement committee
43-17    and the purpose of the committee.  An accelerated instruction group
43-18    may not have a ratio of more than 10 students for each teacher.
43-19          (d)  In addition to providing accelerated instruction to a
43-20    student under Subsection (c), the district shall notify the
43-21    student's parent or guardian of:
43-22                (1)  the student's failure to perform satisfactorily on
43-23    the assessment instrument;
43-24                (2)  the accelerated instruction program to which the
43-25    student is assigned; and
43-26                (3)  the possibility that the student might be retained
43-27    at the same grade level for the next school year.
 44-1          (e)  A student who, after at least three attempts, fails to
 44-2    perform satisfactorily on an assessment instrument specified under
 44-3    Subsection (a) shall be retained at the same grade level for the
 44-4    next school year in accordance with Subsection (a).  The student's
 44-5    parent or guardian may appeal the student's retention by submitting
 44-6    a request to the grade placement committee established under
 44-7    Subsection (c).  The school district shall give the parent or
 44-8    guardian written notice of the opportunity to appeal.  The grade
 44-9    placement committee may decide in favor of a student's promotion
44-10    only if the committee concludes, using standards adopted by the
44-11    board of trustees, that if promoted and given accelerated
44-12    instruction, the student is likely to perform at grade level.  A
44-13    student may not be promoted on the basis of the grade placement
44-14    committee's decision unless that decision is unanimous.  The
44-15    commissioner by rule shall establish a timeline for making the
44-16    placement determination.  This subsection does not create a
44-17    property interest in promotion.  The decision of the grade
44-18    placement committee is final and may not be appealed.
44-19          (f)  A school district shall provide to a student who, after
44-20    three attempts, has failed to perform satisfactorily on an
44-21    assessment instrument specified under Subsection (a) accelerated
44-22    instruction during the next school year as prescribed by an
44-23    educational plan developed for the student by the student's grade
44-24    placement committee established under Subsection (c).  The district
44-25    shall provide that accelerated instruction regardless of whether
44-26    the student has been promoted or retained.  The educational plan
44-27    must be designed to enable the student to perform at the
 45-1    appropriate grade level by the conclusion of the school year.
 45-2    During the school year, the student shall be monitored to ensure
 45-3    that the student is progressing in accordance with the plan.  The
 45-4    district shall administer to the student the assessment instrument
 45-5    for the grade level in which the student is placed at the time the
 45-6    district regularly administers the assessment instruments for that
 45-7    school year.
 45-8          (g)  This section does not preclude the retention at a grade
 45-9    level, in accordance with state law or school district policy, of a
45-10    student who performs satisfactorily on an assessment instrument
45-11    specified under Subsection (a).
45-12          (h)  In each instance under this section in which a school
45-13    district is specifically required to provide notice to a parent or
45-14    guardian of a student, the district shall make a good faith effort
45-15    to ensure that such notice is provided either in person or by
45-16    regular mail and that the notice is clear and easy to understand
45-17    and is written in English or the parent or guardian's native
45-18    language.
45-19          (i)  The admission, review, and dismissal committee of a
45-20    student who participates in a district's special education program
45-21    under Subchapter B, Chapter 29, and who does not perform
45-22    satisfactorily on an assessment instrument specified under
45-23    Subsection (a) and administered under Section 39.023(a) or (b)
45-24    shall determine:
45-25                (1)  the manner in which the student will participate
45-26    in an accelerated instruction program under this section; and
45-27                (2)  whether the student will be promoted or retained
 46-1    under this section.
 46-2          (j)  A school district or open-enrollment charter school
 46-3    shall provide transportation for students required to attend
 46-4    accelerated programs under this chapter.
 46-5          (k)  The commissioner shall adopt rules as necessary to
 46-6    implement this section, including rules concerning when school
 46-7    districts shall administer assessment instruments required under
 46-8    this section and which administration of the assessment instruments
 46-9    will be used for purposes of Section 39.051.
46-10          (l)  The commissioner shall issue a report to the legislature
46-11    not later than December 1, 2000, that reviews the enrollment of
46-12    students in accelerated instruction and the quality and
46-13    availability of accelerated instruction programs, including
46-14    accelerated instruction-related teacher professional development
46-15    programs.
46-16          (m)  The commissioner shall certify, not later than July 1 of
46-17    each school year or as soon as practicable thereafter, whether
46-18    sufficient funds have been appropriated statewide for the purposes
46-19    of this section.  A determination by the commissioner is final and
46-20    may not be appealed.  For purposes of certification, the
46-21    commissioner may not consider Foundation School Program funds.
46-22    This section may be implemented only if the commissioner certifies
46-23    that sufficient funds have been appropriated during a school year
46-24    for administering the accelerated instruction programs specified
46-25    under this section.
46-26          (n)  This section applies to the assessment instrument
46-27    administered to students in:
 47-1                (1)  the third grade beginning with the 2002-2003
 47-2    school year;
 47-3                (2)  the fifth grade beginning with the 2004-2005
 47-4    school year; and
 47-5                (3)  the eighth grade beginning with the 2007-2008
 47-6    school year.
 47-7          (o)  Subsection (n) and this subsection expire January 1,
 47-8    2008.
 47-9          SECTION 2.07.  Subchapter B, Chapter 39, Education Code, is
47-10    amended by adding Section 39.0231 to read as follows:
47-11          Sec. 39.0231.  REPORTING OF RESULTS OF CERTAIN ASSESSMENTS.
47-12    The agency shall ensure that each assessment instrument
47-13    administered in accordance with Section 28.0211 is scored and that
47-14    the results are returned to the appropriate school district not
47-15    later than 10 days after receipt of the test materials by the
47-16    agency or its test contractor.
47-17          SECTION 2.08.  Subsection (b), Section 39.024, Education
47-18    Code, is amended to read as follows:
47-19          (b)  Each school district shall offer an intensive program of
47-20    instruction for students who did not perform satisfactorily on an
47-21    assessment instrument administered under this subchapter.  The
47-22    intensive programs for students who did not perform satisfactorily
47-23    on an assessment instrument under Section 39.023(a) or (c) shall be
47-24    designed to enable the students to be performing at grade level at
47-25    the conclusion of the next regular school term and, if applicable,
47-26    to carry out the purposes of Section 28.0211.  The intensive
47-27    programs for students who did not perform satisfactorily on an
 48-1    assessment instrument under Section 39.023(b) shall be designed by
 48-2    each student's admission, review, and dismissal committee to enable
 48-3    the student to attain a standard of annual growth on the basis of
 48-4    the student's individualized education program and, if applicable,
 48-5    to carry out the purposes of Section 28.0211.
 48-6          SECTION 2.09.  Subsections (b) and (d), Section 39.051,
 48-7    Education Code, are amended to read as follows:
 48-8          (b)  Performance on the indicators adopted under this section
 48-9    shall be compared to state-established standards.  The degree of
48-10    change from one school year to the next in performance on each
48-11    indicator adopted under this section shall also be considered.  The
48-12    indicators must be based on information that is disaggregated with
48-13    respect to race, ethnicity, sex, and socioeconomic status and must
48-14    include:
48-15                (1)  the results of assessment instruments required
48-16    under Sections 39.023(a) and (c), aggregated by grade level and
48-17    subject area;
48-18                (2)  dropout rates;
48-19                (3)  student attendance rates;
48-20                (4)  the percentage of graduating students who attain
48-21    scores on the secondary exit-level assessment instruments required
48-22    under Subchapter B that are equivalent to a passing score on the
48-23    test instrument required under Section 51.306;
48-24                (5)  the percentage of graduating students who meet the
48-25    course requirements established for the recommended high school
48-26    program by State Board of Education rule;
48-27                (6)  the results of the Scholastic Assessment Test
 49-1    (SAT) and the American College Test;
 49-2                (7)  the number of students, aggregated by grade level,
 49-3    provided accelerated instruction under Section 28.0211(c), the
 49-4    results of assessments administered under that section, the number
 49-5    of students promoted through the grade placement committee process
 49-6    under Section 28.0211, the subject of the assessment instrument on
 49-7    which each student failed to perform satisfactorily, and the
 49-8    performance of those students in the school year following that
 49-9    promotion on the assessment instruments required under Section
49-10    39.023;
49-11                (8)  the percentage of students taking end-of-course
49-12    assessment instruments adopted under Section 39.023(d);
49-13                (9) [(8)]  the percentage of students exempted, by
49-14    exemption category, from the assessment program generally
49-15    applicable under this subchapter; and
49-16                (10) [(9)]  any other indicator the State Board of
49-17    Education adopts.
49-18          (d)  Annually, the commissioner shall define exemplary,
49-19    recognized, and unacceptable performance for each academic
49-20    excellence indicator included under Subsections (b)(1) through (6)
49-21    and shall project the standards for each of those levels of
49-22    performance for succeeding years.  For the indicator under
49-23    Subsection (b)(7), the commissioner shall define exemplary,
49-24    recognized, and unacceptable performance based upon student
49-25    performance for the period covering both the current and prior
49-26    academic years.
49-27          SECTION 2.10.  Subsection (b), Section 39.052, Education
 50-1    Code, is amended to read as follows:
 50-2          (b)  The report card shall include the following information
 50-3    where applicable:
 50-4                (1)  the academic excellence indicators adopted under
 50-5    Sections 39.051(b)(1) through (9) [(8)];
 50-6                (2)  student/teacher ratios; and
 50-7                (3)  administrative and instructional costs per
 50-8    student.
 50-9          SECTION 2.11.  Subsections (b) and (c), Section 39.072,
50-10    Education Code, are amended to read as follows:
50-11          (b)  The academic excellence indicators adopted under
50-12    Sections 39.051(b)(1) through (7) [(6)] shall be the main
50-13    consideration of the agency in the rating of the district under
50-14    this section.  Additional criteria in the rules may include
50-15    consideration of:
50-16                (1)  compliance with statutory requirements and
50-17    requirements imposed by rule of the State Board of Education under
50-18    specific statutory authority that relate to:
50-19                      (A)  reporting data through the Public Education
50-20    Information Management System (PEIMS);
50-21                      (B)  the high school graduation requirements
50-22    under Section 28.025; or
50-23                      (C)  an item listed in Sections
50-24    7.056(e)(3)(C)-(I) that applies to the district; and
50-25                (2)  the effectiveness of the district's programs in
50-26    special education based on the agency's most recent compliance
50-27    review of the district and programs for special populations.
 51-1          (c)  The agency shall evaluate against state standards and
 51-2    shall report the performance of each campus in a district and each
 51-3    open-enrollment charter school on the basis of the campus's
 51-4    performance on the indicators adopted under Sections 39.051(b)(1)
 51-5    through (7) [(6)].
 51-6          SECTION 2.12.  Subsection (a), Section 39.073, Education
 51-7    Code, is amended to read as follows:
 51-8          (a)  The agency shall annually review the performance of each
 51-9    district and campus on the indicators adopted under Sections
51-10    39.051(b)(1) through (7) [(6)] and determine if a change in the
51-11    accreditation status of the district is warranted.
51-12          SECTION 2.13.  Subsection (e), Section 39.074, Education
51-13    Code, is amended to read as follows:
51-14          (e)  If an annual review indicates low performance on one or
51-15    more of the indicators under Sections 39.051(b)(1) through (7)
51-16    [(6)] of one or more campuses in a district, the agency may conduct
51-17    an on-site evaluation of those campuses only.
51-18          SECTION 2.14.  Section 39.183, Education Code, is amended to
51-19    read as follows:
51-20          Sec. 39.183.  REGIONAL AND DISTRICT LEVEL REPORT.  The agency
51-21    shall prepare and deliver to the governor, the lieutenant governor,
51-22    the speaker of the house of representatives, each member of the
51-23    legislature, the Legislative Budget Board, and the clerks of the
51-24    standing committees of the senate and house of representatives with
51-25    primary jurisdiction over the public school system a regional and
51-26    district level report covering the preceding two school years and
51-27    containing:
 52-1                (1)  a summary of school district compliance with the
 52-2    student/teacher ratios and class-size limitations prescribed by
 52-3    Sections 25.111 and 25.112, including the number of districts
 52-4    granted an exception from Section 25.112;
 52-5                (2)  a summary of the exemptions and waivers granted to
 52-6    school districts under Section 7.056 or 39.112 and a review of the
 52-7    effectiveness of each campus or district following deregulation;
 52-8    [and]
 52-9                (3)  an evaluation of the performance of the system of
52-10    regional education service centers based on the indicators adopted
52-11    under Section 8.101 and client satisfaction with services provided
52-12    under Subchapter B, Chapter 8; and
52-13                (4)  an evaluation of accelerated instruction programs
52-14    offered under Section 28.006, including an assessment of the
52-15    quality of such programs and the performance of students enrolled
52-16    in such programs.
52-17              ARTICLE 3.  REPEALER; EFFECTIVE DATE; EMERGENCY
52-18          SECTION 3.01.  (a)  Subsection (b), Section 8.121, Subsection
52-19    (c), Section 41.002, Subsection (c), Section 42.251, and Subsection
52-20    (e), Section 42.252, Education Code, are repealed.
52-21          (b)  Effective September 1, 2001, Section 42.102, Education
52-22    Code, is repealed.
52-23          (c)  Subsection (i), Section 403.302, Government Code, is
52-24    repealed.
52-25          (d)  Subsection (f), Section 26.08, Tax Code, is repealed.
52-26          SECTION 3.02.  Except as otherwise provided by this Act, this
52-27    Act takes effect September 1, 1999.
 53-1          SECTION 3.03.  The importance of this legislation and the
 53-2    crowded condition of the calendars in both houses create an
 53-3    emergency and an imperative public necessity that the
 53-4    constitutional rule requiring bills to be read on three several
 53-5    days in each house be suspended, and this rule is hereby suspended.