1-1                                   AN ACT
 1-2     relating to the computation of average daily attendance in certain
 1-3     school districts that experience a decline in attendance.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 42.005, Education Code, is amended by
 1-6     amending Subsection (b) and adding Subsections (e) and (f) to read
 1-7     as follows:
 1-8           (b)  A school district that experiences a decline of two
 1-9     percent or more in average daily attendance shall be funded on the
1-10     basis of:
1-11                 (1)  the actual average daily attendance of the
1-12     preceding school year, if the decline is the [as a] result of the
1-13     closing or reduction in personnel of a military base; or
1-14                 (2)  subject to Subsection (e), an average daily
1-15     attendance not to exceed 98 percent of the actual average daily
1-16     attendance of the preceding school year, if the decline is not the
1-17     result of the closing or reduction in personnel of a military base
1-18     [shall be funded on the basis of the actual average daily
1-19     attendance of the preceding school year].
1-20           (e)  For each school year, the commissioner shall adjust the
1-21     average daily attendance of school districts that are entitled to
1-22     funding on the basis of an adjusted average daily attendance under
1-23     Subsection (b)(2) so that:
1-24                 (1)  all districts are funded on the basis of the same
1-25     percentage of the preceding year's actual average daily attendance;
 2-1     and
 2-2                 (2)  the total cost to the state does not exceed the
 2-3     amount specifically appropriated for that year for purposes of
 2-4     Subsection (b)(2).
 2-5           (f)  An open-enrollment charter school is not entitled to
 2-6     funding based on an adjustment under Subsection (b)(2).
 2-7           SECTION 2.  This Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 450 passed the Senate on
         April 4, 2001, by a viva-voce vote; and that the Senate concurred
         in House amendment on May 25, 2001, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 450 passed the House, with
         amendment, on May 15, 2001, by a non-record vote.
                                             _______________________________
                                                Chief Clerk of the House
         Approved:
         _______________________________
                      Date
         _______________________________
                    Governor