R E S O L U T I O N
 1-1           BE IT RESOLVED by the House of Representatives of the State
 1-2     of Texas, 77th Legislature, Regular Session, 2001, That House Rule
 1-3     13, Section 9(a), be suspended in part as provided by House Rule
 1-4     13, Section 9(f), to enable the conference committee appointed to
 1-5     resolve the differences on House Bill No. 2879, relating to public
 1-6     school finance, to consider and take action on the following
 1-7     matters:
 1-8           (1)  House Rule 13, Section 9(a)(4), is suspended to permit
 1-9     the committee to amend Section 21.402(c), Education Code, to read
1-10     as follows:
1-11           (c)  The salary factors per step are as follows:
1-12     Years Experience       0         1         2         3         4
1-13     Salary Factor        .5656     .5790     .5924     .6058     .6340
1-14                         [.5596]   [.5728]   [.5861]   [.5993]   [.6272]
1-15     Years Experience       5         6         7         8         9
1-16     Salary Factor        .6623     .6906     .7168     .7416     .7651
1-17                         [.6552]   [.6831]   [.7091]   [.7336]   [.7569]
1-18     Years Experience      10        11        12        13        14
1-19     Salary Factor        .7872     .8082     .8281     .8467     .8645
1-20                         [.7787]   [.7996]   [.8192]   [.8376]   [.8552]
1-21     Years Experience      15        16        17        18        19
1-22     Salary Factor        .8811     .8970     .9119     .9260     .9394
1-23                         [.8717]   [.8874]   [.9021]   [.9160]   [.9293]
1-24     Years Experience 20 and over
 2-1     Salary Factor        .9520
 2-2                         [.9418]
 2-3           Explanation:  This change is necessary to permit setting the
 2-4     salary factors for the minimum salary schedule for teachers,
 2-5     librarians, counselors, and nurses to reflect the higher guaranteed
 2-6     level of state and local funds per weighted student per cent of tax
 2-7     effort under Section 42.302, Education Code, as amended by H.B. No.
 2-8     3343, and to reflect the repeal of Section 42.152(t), Education
 2-9     Code, by H.B. No. 2879, which requires the commissioner of
2-10     education to adjust the guaranteed level to compensate for
2-11     additional state costs because of the computation of weighted
2-12     students in average daily attendance under Section 42.152(s),
2-13     Education Code.
2-14           (2)  House Rule 13, Section 9(a)(4), is suspended to permit
2-15     the committee to add text adding Subsection (f) to Section 42.005,
2-16     Education Code, to read as follows:
2-17           (f)  An open-enrollment charter school is not entitled to
2-18     funding based on an adjustment under Subsection (b)(2).
2-19           Explanation:  This change is necessary to provide that
2-20     open-enrollment charter schools whose attendance declines from one
2-21     year to the next for reasons other than the closing or reduction in
2-22     personnel of a military base do not have their attendance adjusted
2-23     to receive funding based on the preceding year's attendance.
2-24           (3)  House Rule 13, Section 9(a)(4), is suspended to permit
2-25     the committee to add Section 42.2531, Education Code, to read as
2-26     follows:
2-27           Sec. 42.2531.  ADJUSTMENT BY COMMISSIONER. (a)  The
 3-1     commissioner may make adjustments to amounts due to a school
 3-2     district under this chapter or Chapter 46, or to amounts necessary
 3-3     for a district to comply with the requirements of Chapter 41, as
 3-4     provided by this section.
 3-5           (b)  A school district that has a major taxpayer, as
 3-6     determined by the commissioner, that because of a protest of the
 3-7     valuation of the taxpayer's property fails to pay all or a portion
 3-8     of the ad valorem taxes due to the district may apply to the
 3-9     commissioner to have the district's taxable value of property or ad
3-10     valorem tax collections adjusted for purposes of this chapter or
3-11     Chapter 41 or 46.  The commissioner may make the adjustment only to
3-12     the extent the commissioner determines that making the adjustment
3-13     will not:
3-14                 (1)  in the fiscal year in which the adjustment is
3-15     made, cause the amount to which school districts are entitled under
3-16     this chapter to exceed the amount appropriated for purposes of the
3-17     Foundation School Program for that year; and
3-18                 (2)  if the adjustment is made in the first year of a
3-19     state fiscal biennium, cause the amount to which school districts
3-20     are entitled under this chapter for the second year of the biennium
3-21     to exceed the amount appropriated for purposes of the Foundation
3-22     School Program for that year.
3-23           (c)  The commissioner shall recover the benefit of any
3-24     adjustment made under this section by making offsetting adjustments
3-25     in the school district's taxable value of property or ad valorem
3-26     tax collections for purposes of this chapter or Chapter 41 or 46 on
3-27     a final determination of the taxable value of property that was the
 4-1     basis of the original adjustment, or in the second school year
 4-2     following the year in which the adjustment is made, whichever is
 4-3     earlier.
 4-4           (d)  This section does not require the commissioner to make
 4-5     any requested adjustment.  A determination by the commissioner
 4-6     under this section is final and may not be appealed.
 4-7           Explanation:  This change is necessary to provide additional
 4-8     state aid to school districts in which a major property taxpayer
 4-9     protests the valuation of the taxpayer's property and to require
4-10     the school district to repay that additional state aid within two
4-11     years or when the appraisal protest is resolved, whichever is
4-12     earlier.
4-13           (4)  House Rule 13, Section 9(a)(4), is suspended to permit
4-14     the committee to add SECTION 13 to read as follows:
4-15           SECTION 13. Section 46.003(d), Education Code, as amended by
4-16     this Act, and Section 46.032(c), Education Code, as added by this
4-17     Act, apply only to taxes collected by a school district in the
4-18     1999-2000 school year or a later school year.
4-19           Explanation:  This change is necessary to specify that school
4-20     district may not use fund balances created before the 1999-2000
4-21     school year to pay the district's local share under the
4-22     instructional facilities allotment and the existing debt allotment.
4-23           (5)  House Rule 13, Section 9(a)(4), is suspended to permit
4-24     the committee to add SECTION 14 to read as follows:
4-25           SECTION 14. (a)  Notwithstanding Section 46.034(a), Education
4-26     Code, as amended by this Act, for the 2002-2003 school year, except
4-27     as provided by this section, a school district may not receive
 5-1     assistance under Subchapter B, Chapter 46, Education Code, for an
 5-2     existing debt tax rate greater than $0.12 per $100 of valuation.
 5-3           (b)  As soon as practicable, the commissioner of education
 5-4     shall determine whether funds are available from amounts
 5-5     appropriated for purposes of the Foundation School Program for the
 5-6     2001-2002 or 2002-2003 school year in excess of the amount of
 5-7     payments required to be made under Chapters 42 and 46, Education
 5-8     Code.  In making a determination under this subsection, the
 5-9     commissioner may:
5-10                 (1)  notwithstanding Section 42.253(b), Education Code,
5-11     reduce the entitlement under Chapters 42 and 46, Education Code, of
5-12     a school district whose final taxable value of property is higher
5-13     than the estimate under Section 42.254, Education Code; and
5-14                 (2)  make payments to school districts accordingly.
5-15           (c)  For the 2001-2002 school year, to the extent excess
5-16     funds are available under Subsection (b) of this section, and
5-17     notwithstanding Section 42.2522, Education Code, the commissioner
5-18     of education shall apply the funds in the following order:
5-19                 (1)  subject to any limitations in S.B. No. 1, Acts of
5-20     the 77th Legislature, Regular Session, 2001, to adjusting the
5-21     taxable value of property of school districts that experience a
5-22     rapid decline in taxable value, as provided by Section 42.2521,
5-23     Education Code;
5-24                 (2)  to funding school districts based on an adjustment
5-25     for an optional homestead exemption, as provided by Section
5-26     42.2522, Education Code; and
5-27                 (3)  to funding school districts based on an adjustment
 6-1     for ad valorem taxes subject to a protest of the valuation of a
 6-2     major taxpayer's property, as provided by Section 42.2531,
 6-3     Education Code, as added by this Act.
 6-4           (d)  For the 2002-2003 school year, to the extent excess
 6-5     funds are available under Subsection (b) of this section, and
 6-6     notwithstanding Section 42.2522, Education Code, the commissioner
 6-7     of education shall apply the funds in the following order:
 6-8                 (1)  to authorizing additional assistance to school
 6-9     districts under Subchapter A, Chapter 46, Education Code, in an
6-10     amount not to exceed $50 million;
6-11                 (2)  to increasing the limit on the existing debt tax
6-12     rate under Subsection (a)  of this section to a rate not to exceed
6-13     $0.29 per $100 of valuation;
6-14                 (3)  subject to any limitations in S.B. No. 1, Acts of
6-15     the 77th Legislature, Regular Session, 2001, to adjusting the
6-16     taxable value of property of school districts that experience a
6-17     rapid decline in taxable value, as provided by Section 42.2521,
6-18     Education Code;
6-19                 (4)  to funding school districts based on an adjustment
6-20     for an optional homestead exemption, as provided by Section
6-21     42.2522, Education Code; and
6-22                 (5)  to funding school districts based on an adjustment
6-23     for ad valorem taxes subject to a protest of the valuation of a
6-24     major taxpayer's property, as provided by Section 42.2531,
6-25     Education Code, as added by this Act.
6-26           (e)  The commissioner of education must provide full funding
6-27     for a priority listed in Subsection (c) or (d) of this section
 7-1     before providing funding for the next lower priority.
 7-2           (f)  A decision of the commissioner of education under this
 7-3     section is final and may not be appealed.
 7-4           Explanation:  This change is necessary to establish
 7-5     priorities for spending any Foundation School Program
 7-6     appropriations that, because of property valuation increases,
 7-7     exceed the amount to which school districts are entitled in the
 7-8     biennium ending August 31, 2003.
 7-9           (6)  House Rule 13, Section 9(a)(4), is suspended to permit
7-10     the committee to add SECTION 15 to read as follows:
7-11           SECTION 15. From funds appropriated to the Texas Education
7-12     Agency that may be used for the purpose, the commissioner of
7-13     education shall as necessary assist regional education service
7-14     centers in providing financial management or planning assistance to
7-15     school districts and open-enrollment charter schools.
7-16           Explanation:  This change is necessary to permit the
7-17     commissioner of education to assist regional education service
7-18     centers in providing financial management or planning assistance to
7-19     school districts and open-enrollment charter schools.
7-20           (7)  House Rule 13, Section 9(a)(4), is suspended to permit
7-21     the committee to add SECTION 16 to read as follows:
7-22           SECTION 16. (a)  The Communities in Schools advisory
7-23     committee is created.  The governor, lieutenant governor, and
7-24     speaker of the house of representatives shall each appoint three
7-25     members to the advisory committee.
7-26           (b)  The advisory committee shall advise and provide guidance
7-27     to programs operated under the auspices of the Communities in
 8-1     Schools.
 8-2           (c)  In accordance with Section 2110.004, Government Code,
 8-3     reimbursement of the expenses of advisory committee members may be
 8-4     paid from amounts appropriated in S.B. No. 1, Acts of the 77th
 8-5     Legislature, Regular Session, 2001, to the Texas Education Agency
 8-6     and the Department of Protective and Regulatory Services.
 8-7           (d)  The Texas Education Agency and the Department of
 8-8     Protective and Regulatory Services shall:
 8-9                 (1)  coordinate with the advisory committee;
8-10                 (2)  share equally the cost of reimbursement of the
8-11     expenses of advisory committee members; and
8-12                 (3)  each assign an employee to assist the advisory
8-13     committee in its duties and act as a liaison between the advisory
8-14     committee and the employee's employing agency.
8-15           Explanation:  This change is necessary to create an advisory
8-16     committee for the Communities in Schools youth dropout prevention
8-17     program, to provide for the committee members' expenses, and to
8-18     require the Texas Education Agency and Department of Regulatory and
8-19     Protective Services to support the committee.
8-20           (8)  House Rule 13, Section 9(a)(4), is suspended to permit
8-21     the committee to add SECTION 17 to read as follows:
8-22           SECTION 17. Notwithstanding Subsection (a)  of Rider 55 under
8-23     the appropriations to the Texas Education Agency in S.B. No. 1,
8-24     Acts of the 77th Legislature, Regular Session, 2001, the funds
8-25     allocated by that rider shall be allocated in the following manner:
8-26                 (1)  The funds shall be distributed by the commissioner
8-27     of education for reading diagnostic instruments and on a
 9-1     competitive grant basis to be used by schools for the
 9-2     implementation of scientific, research-based reading and
 9-3     mathematics programs, the purchase of additional instructional or
 9-4     diagnostic materials, necessary materials for libraries,
 9-5     instructional staff, or related professional staff development for
 9-6     educators with the goal of as much direct intervention with
 9-7     students as possible. To be eligible for funding, schools must
 9-8     perform a diagnostic assessment for below-grade-level reading
 9-9     skills and submit a plan for parental involvement in the program.
9-10                 (2)  The commissioner of education shall use not less
9-11     than $15 million of the funds allocated by Rider 55 to implement
9-12     scientific-based content development for training materials,
9-13     professional development institutes in mathematics and related
9-14     research, as provided by Sections 7.058, 21.454, 21.455, Education
9-15     Code, as added by H.B. No. 1144, Acts of the 77th Legislature,
9-16     Regular Session, 2001.
9-17                 (3)  The commissioner of education may use a portion of
9-18     the funds allocated by Rider 55 to implement the master mathematics
9-19     teacher program as provided by Sections 21.0482 and 21.411,
9-20     Education Code, as added by H.B. No. 1144, Acts of the 77th
9-21     Legislature, Regular Session, 2001, and shall transfer funds to the
9-22     State Board for Educator Certification for creation of the master
9-23     mathematics teacher certification as provided by Section 21.0482,
9-24     Education Code, as added by H.B. No. 1144, Acts of the 77th
9-25     Legislature, Regular Session, 2001.
9-26           Explanation:  This change is necessary to allocate funds
9-27     appropriated by S.B. No. 1 for purposes of the governor's reading
 10-1    and mathematics initiatives.
 10-2          (9)  House Rule 13, Section 9(a)(4), is suspended to permit
 10-3    the committee to add SECTION 18 to read as follows:
 10-4          SECTION 18. Of the amounts appropriated in Article III, S.B.
 10-5    No. 1, Acts of the 77th Legislature, Regular Session, 2001, to the
 10-6    Texas Education Agency under Strategy A.3.3.: Improving Educator
 10-7    Performance, the commissioner of education:
 10-8                (1)  shall allocate $8 million for the fiscal year
 10-9    ending August 31, 2002, and $12 million for the fiscal year ending
10-10    August 31, 2003, for purposes of funding stipends for master
10-11    reading and mathematics teachers as provided by Section 21.410,
10-12    Education Code, and 21.411, Education Code, as added by H.B. No.
10-13    1144, Acts of the 77th Legislature, Regular Session, 2001; and
10-14                (2)  may transfer funds to the State Board for Educator
10-15    Certification for creation of the master mathematics teacher
10-16    certification as provided by Section 21.0482, Education Code, as
10-17    added by H.B. No. 1144, Acts of the 77th Legislature, Regular
10-18    Session, 2001.
10-19          Explanation:  This change is necessary to allocate funds
10-20    appropriated by S.B. No. 1 for purposes of the certified master
10-21    reading teachers and the certified master mathematics teachers
10-22    portions of the governor's reading and mathematics initiatives.
10-23          (10)  House Rule 13, Section 9(a)(4), is suspended to permit
10-24    the committee to add SECTION 19 to read as follows:
10-25          SECTION 19. The Legislative Budget Board shall increase the
10-26    number of full-time-equivalent positions authorized for the Texas
10-27    Education Agency by S.B. No. 1, Acts of the 77th Legislature,
 11-1    Regular Session, 2001, by two for the fiscal year ending August 31,
 11-2    2003, for purposes of the mathematics initiative proposed by H.B.
 11-3    No. 1144, Acts of the 77th Legislature, Regular Session, 2001.
 11-4          Explanation:  This change is necessary to permit the Texas
 11-5    Education Agency to employ two additional full-time equivalent
 11-6    employees for purposes of the governor's mathematics initiative.
 11-7          (11)  House Rule 13, Section 9(a)(4), is suspended to permit
 11-8    the committee to SECTION 20 to read as follows:
 11-9          SECTION 20. A portion of the amounts appropriated in Article
11-10    III, S.B. No. 1, Acts of the 77th Legislature, Regular Session,
11-11    2001, to the Texas Education Agency is allocated as provided by
11-12    this section:
11-13                (1)  for the fiscal biennium ending August 31, 2003,
11-14    the amount allocated under Strategy A.2.1.:  FSP-Equalized
11-15    Operations is reduced by []$100 million, and the amount allocated
11-16    under Strategy A.2.2.:  FSP-Equalized Facilities is increased by
11-17    that amount to assist school districts under the provisions of
11-18    Subchapter A, Chapter 46, Education Code;
11-19                (2)  for the fiscal biennium ending August 31, 2003,
11-20    the amount allocated under Strategy A.2.1.:  FSP-Equalized
11-21    Operations is reduced by []$205 million, and the amount allocated
11-22    under Strategy A.2.2.:  FSP-Equalized Facilities is increased by
11-23    that amount to assist school districts under the provisions of
11-24    Subchapter B, Chapter 46, Education Code;
11-25                (3)  for the fiscal biennium ending August 31, 2003,
11-26    the amount allocated under Strategy A.2.1.:  FSP-Equalized
11-27    Operations is reduced by $57 million,[] and the amount allocated
 12-1    under Strategy B.1.2.:  Student Success is increased by that
 12-2    amount;
 12-3                (4)  for the fiscal biennium ending August 31, 2003,
 12-4    the amount allocated under Strategy A.2.1.: FSP-Equalized
 12-5    Operations is reduced by $30 million, and the amount allocated
 12-6    under Strategy B.1.2.: Student Success is increased by that amount
 12-7    for mathematics and reading programs; []
 12-8                (5)  for the fiscal biennium ending August 31, 2003,
 12-9    the amount allocated under Strategy A.2.1.: FSP-Equalized
12-10    Operations is reduced by $11 million, and the amount allocated to
12-11    the Texas Higher Education Coordinating Board under Strategy
12-12    C.1.18.:  Teach for Texas Conditional Grants is increased by that
12-13    amount for purposes of the Teach for Texas grant program under
12-14    Section 56.309, Education Code;
12-15                (6)  for the fiscal biennium ending August 31, 2003,
12-16    the amount allocated under Strategy A.2.1.:  FSP-Equalized
12-17    Operations is reduced by $9 million, and:
12-18                      (A)  an amount of $4 million is allocated to the
12-19    Texas Higher Education Coordinating Board under Article III,
12-20    Special Provisions, for purposes of the Joint Admission Medical
12-21    Program under Subchapter V, Chapter 51, Education Code, as added by
12-22    S.B. No. 940, Acts of the 77th Legislature, Regular Session, 2001;
12-23    and
12-24                      (B)  the amount allocated to the Texas Higher
12-25    Education Coordinating Board under Strategy A.1.1.:  Information
12-26    and Planning is increased by $5 million for purposes of the Public
12-27    Awareness Campaign Promoting Higher Education under Section 61.951,
 13-1    Education Code, as added by S.B. No. 573, Acts of the 77th
 13-2    Legislature, Regular Session, 2001;
 13-3                (7)  for the fiscal biennium ending August 31, 2003,
 13-4    the amount allocated under Strategy A.2.1.:  FSP-Equalized
 13-5    Operations is reduced by $2 million, and the amount allocated to
 13-6    Strategy B.3.1., Regional Training and Development, is increased by
 13-7    that amount and shall be allocated at the discretion of the
 13-8    commissioner of education, for purposes including the provision of
 13-9    assistance to The University of Texas at Austin for the Technology
13-10    Charter School; and
13-11                (8)  for the fiscal biennium ending August 31, 2003,
13-12    the amount allocated under Strategy A.2.1.:  FSP-Equalized
13-13    Operations is reduced by $300,000, and the amount allocated to
13-14    Strategy C.1.2., School Finance System Operations, is increased by
13-15    that amount to make changes to the Texas Education Agency's school
13-16    finance payment system as are necessary to efficiently implement
13-17    the provisions of this legislation or H.B. No. 3343, Acts of the
13-18    77th Legislature, Regular Session, 2001.
13-19          Explanation:  This change is necessary to allocate funds
13-20    appropriated by S.B. No. 1 for purposes of providing funding for
13-21    the instructional facilities allotment, the existing debt
13-22    allotment, programs intended to improve student success, the Teach
13-23    for Texas Conditional Grant Program, the Joint Admission Medical
13-24    Program, the Public Awareness Campaign Promoting Higher Education,
13-25    increasing the commissioner of education's discretionary funds, and
13-26    improving the Texas Education Agency's school finance payment
13-27    system.
 14-1          (12)  House Rule 13, Section 9(a)(4), is suspended to permit
 14-2    the committee to SECTION 21 to read as follows:
 14-3          SECTION 21. Of the funds allocated by Rider 2 under the
 14-4    appropriations to the Texas Education Agency in S.B. No. 1, Acts of
 14-5    the 77th Legislature, Regular Session, 2001, not more than $22
 14-6    million may be used for the fiscal biennium ending August 31, 2003,
 14-7    for adjusting the attendance of school districts that experience a
 14-8    decline in average daily attendance, as provided by Section
 14-9    42.005(b)(2), Education Code, as added by this Act.
14-10          Explanation:  This change is necessary to allocate funds
14-11    appropriated by S.B. No. 1 for purposes of the attendance
14-12    adjustment for school districts with declining attendance that is
14-13    not caused by the closing or reduction in personnel of a military
14-14    base.
14-15          (13)  House Rule 13, Section 9(a)(4), is suspended to permit
14-16    the committee to SECTION 22 to read as follows:
14-17          SECTION 22. For the fiscal biennium ending August 31, 2003,
14-18    the amount appropriated in Article III, S.B. No. 1, Acts of the
14-19    77th Legislature, Regular Session, 2001, to the Texas Education
14-20    Agency and allocated for Successful Schools Awards under Strategy
14-21    A.1.2.:  Accountability System is reduced by $2.5 million.
14-22          Explanation:  This change is necessary to permit funding of
14-23    other programs to which funds are allocated under H.B. No. 2879.
                                                                      Sadler
                                             _______________________________
                                                   Speaker of the House
               I certify that H.R. No. 1408 was adopted by the House on May
         27, 2001, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House