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