By Chavez                                               H.B. No. 50
         77R878 CAS-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to a state funding allotment for health insurance and
 1-3     other health care benefits for public school employees.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter C, Chapter 42, Education Code, is
 1-6     amended by adding Section 42.159 to read as follows:
 1-7           Sec. 42.159.  EMPLOYEE HEALTH CARE BENEFITS ALLOTMENT.
 1-8     (a)  For each student in average daily attendance, a school
 1-9     district is entitled to an annual allotment for employee health
1-10     care benefits of $_____ or a greater amount provided by
1-11     appropriation.
1-12           (b)  A school district, other than a home-rule school
1-13     district, may use funds allocated under this section only to
1-14     increase the financial contribution the district makes to provide
1-15     health insurance coverage or other health care benefits for
1-16     employees.  A district may use the funds to pay costs supplementary
1-17     to the district's regular health insurance program for employees.
1-18           (c)  A home-rule school district or an open-enrollment
1-19     charter school may use funds allocated under this section only to
1-20     provide health insurance coverage or other health care benefits for
1-21     employees.
1-22           SECTION 2.  Section 42.302(a), Education Code, is amended to
1-23     read as follows:
1-24           (a)  Each school district is guaranteed a specified amount
 2-1     per weighted student in state and local funds for each cent of tax
 2-2     effort over that required for the district's local fund assignment
 2-3     up to the maximum level specified in this subchapter.  The amount
 2-4     of state support, subject only to the maximum amount under Section
 2-5     42.303, is determined by the formula:
 2-6           GYA = (GL X WADA X DTR X 100) - LR
 2-7     where:
 2-8           "GYA" is the guaranteed yield amount of state funds to be
 2-9     allocated to the district;
2-10           "GL" is the dollar amount guaranteed level of state and local
2-11     funds per weighted student per cent of tax effort, which is $24.99
2-12     or a greater amount for any year provided by appropriation;
2-13           "WADA" is the number of students in weighted average daily
2-14     attendance, which is calculated by dividing the sum of the school
2-15     district's allotments under Subchapters B and C, less any allotment
2-16     to the district for transportation or health care benefits, any
2-17     allotment under Section 42.158, and 50 percent of the adjustment
2-18     under Section 42.102, by the basic allotment for the applicable
2-19     year;
2-20           "DTR" is the district enrichment tax rate of the school
2-21     district, which is determined by subtracting the amounts specified
2-22     by Subsection (b) from the total amount of maintenance and
2-23     operations taxes collected by the school district for the
2-24     applicable school year and dividing the difference by the quotient
2-25     of the district's taxable value of property as determined under
2-26     Subchapter M, Chapter 403, Government Code, or, if applicable,
2-27     under Section 42.2521, divided by 100; and
 3-1           "LR" is the local revenue, which is determined by multiplying
 3-2     "DTR" by the quotient of the district's taxable value of property
 3-3     as determined under Subchapter M, Chapter 403, Government Code, or,
 3-4     if applicable, under Section 42.2521, divided by 100.
 3-5           SECTION 3.  This Act takes effect September 1, 2001.