1-1                                   AN ACT
 1-2     relating to compensatory, intensive, and accelerated education in
 1-3     public schools.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  The heading to Section 29.081, Education Code, is
 1-6     amended to read as follows:
 1-7           Sec. 29.081.  COMPENSATORY, INTENSIVE, AND ACCELERATED
 1-8     INSTRUCTION.
 1-9           SECTION 2.  Section 29.081, Education Code, is amended by
1-10     amending Subsections (a), (c), and (d) and adding Subsection (g) to
1-11     read as follows:
1-12           (a)  Each school district shall use the student performance
1-13     data resulting from the basic skills assessment instruments and
1-14     achievement tests administered under Subchapter B, Chapter 39, to
1-15     design and implement appropriate compensatory, intensive, or
1-16     accelerated instructional services for students in the district's
1-17     schools that enable the students to be performing at grade level at
1-18     the conclusion of the next regular school term.
1-19           (c)  Each school district shall evaluate and document the
1-20     effectiveness of the accelerated instruction in reducing any
1-21     disparity in performance on assessment instruments administered
1-22     under Subchapter B, Chapter 39, or disparity in the rates of high
1-23     school completion between students at risk of dropping out of
1-24     school and all other district students [the dropout rate and in
1-25     increasing achievement in the categories of students listed under
 2-1     Subsection (d)].
 2-2           (d)  For purposes of this section, "student at risk of
 2-3     dropping out of school" includes[:]
 2-4                 [(1)]  each student [in grade levels 7 through 12] who
 2-5     is under 21 years of age and who:
 2-6                 (1) [(A)]  was not advanced from one grade level to the
 2-7     next for one [two] or more school years;
 2-8                 (2)  if the student is in grade 7, 8, 9, 10, 11, or 12,
 2-9     [(B)  has mathematics or reading skills that are two or more years
2-10     below grade level;]
2-11                       [(C)]  did not maintain an average equivalent to
2-12     70 on a scale of 100 in two or more subjects in the foundation
2-13     curriculum [courses] during a semester in the preceding or current
2-14     school year[,] or is not maintaining such an average in two or more
2-15     subjects in the foundation curriculum [courses] in the current
2-16     semester[, and is not expected to graduate within four years of the
2-17     date the student begins ninth grade];
2-18                 (3) [(D)]  did not perform satisfactorily on an
2-19     assessment instrument administered to the student under Subchapter
2-20     B, Chapter 39, and who has not in the previous or current school
2-21     year subsequently performed on that instrument or another
2-22     appropriate instrument at a level equal to at least 110 percent of
2-23     the level of satisfactory performance on that instrument; [or]
2-24                 (4)  if the student is in prekindergarten,
2-25     kindergarten, or grade 1, 2, or 3, did not perform satisfactorily
2-26     on a readiness test or assessment instrument administered during
 3-1     the current school year;
 3-2                 (5) [(E)]  is pregnant or is a parent;
 3-3                 (6)  has been placed in an alternative education
 3-4     program in accordance with Section 37.006 during the preceding or
 3-5     current school year;
 3-6                 (7)  has been expelled in accordance with Section
 3-7     37.007 during the preceding or current school year;
 3-8                 (8)  is currently on parole, probation, deferred
 3-9     prosecution, or other conditional release;
3-10                 (9)  was previously reported through the Public
3-11     Education Information Management System (PEIMS) to have dropped out
3-12     of school;
3-13                 (10) [(2)  each student in prekindergarten through
3-14     grade 6 who:]
3-15                       [(A)  did not perform satisfactorily on a
3-16     readiness test or assessment instrument administered at the
3-17     beginning of the school year;]
3-18                       [(B)  did not perform satisfactorily on an
3-19     assessment instrument administered under Subchapter B, Chapter 39;]
3-20                       [(C)]  is a student of limited English
3-21     proficiency, as defined by Section 29.052;
3-22                 (11)  is in the custody or care of the Department of
3-23     Protective and Regulatory Services or has, during the current
3-24     school year, been referred to the department by a school official,
3-25     officer of the juvenile court, or law enforcement official;
3-26                 (12)  is homeless, as defined by 42 U.S.C. Section
 4-1     11302, and its subsequent amendments; or
 4-2                 (13)  resided in the preceding school year or [(D) is
 4-3     sexually, physically, or psychologically abused; or]
 4-4                       [(E)  engages in conduct described by Section
 4-5     51.03(a), Family Code; and]
 4-6                 [(3)  each student who is not disabled and who] resides
 4-7     in the current school year in a residential placement facility in
 4-8     the [a] district [in which the student's parent or legal guardian
 4-9     does not reside], including a detention facility, substance abuse
4-10     treatment facility, emergency shelter, psychiatric hospital,
4-11     halfway house, or foster [family] group home.
4-12           (g)  In addition to students described by Subsection (d), a
4-13     student who satisfies local eligibility criteria adopted by the
4-14     board of trustees of a school district may receive instructional
4-15     services under this section.  The number of students receiving
4-16     services under this subsection during a school year may not exceed
4-17     10 percent of the number of students described by Subsection (d)
4-18     who received services from the district during the preceding school
4-19     year.
4-20           SECTION 3.  Subsection (e), Section 39.027, Education Code,
4-21     is amended to read as follows:
4-22           (e)  The commissioner shall develop an assessment system that
4-23     shall be used for evaluating the academic progress, including
4-24     reading proficiency in English, of all students of limited English
4-25     proficiency, as defined by Section 29.052.  The performance under
4-26     the assessment system developed under this subsection of students
 5-1     to whom Subsection (a)(3) applies shall be included in the academic
 5-2     excellence indicator system under Section 39.051, the performance
 5-3     report under Section 39.053, and the comprehensive annual
 5-4     [biennial] report under Section 39.182.
 5-5           SECTION 4.  Subsection (b), Section 39.051, Education Code,
 5-6     as amended by Chapters 396, 397, and 1422, Acts of the 76th
 5-7     Legislature, Regular Session, 1999, is reenacted and amended to
 5-8     read as follows:
 5-9           (b)  Performance on the indicators adopted under this section
5-10     shall be compared to state-established standards.  The degree of
5-11     change from one school year to the next in performance on each
5-12     indicator adopted under this section shall also be considered.  The
5-13     indicators must be based on information that is disaggregated by
5-14     [with respect to] race, ethnicity, gender [sex], and socioeconomic
5-15     status and must include:
5-16                 (1)  the results of assessment instruments required
5-17     under Sections 39.023(a), (c), and (l), aggregated by grade level
5-18     and subject area;
5-19                 (2)  dropout and completion rates;
5-20                 (3)  student attendance rates;
5-21                 (4)  the percentage of graduating students who attain
5-22     scores on the secondary exit-level assessment instruments required
5-23     under Subchapter B that are equivalent to a passing score on the
5-24     test instrument required under Section 51.306;
5-25                 (5)  the percentage of graduating students who meet the
5-26     course requirements established for the recommended high school
 6-1     program by State Board of Education rule;
 6-2                 (6)  the results of the Scholastic Assessment Test
 6-3     (SAT), the American College Test (ACT), articulated postsecondary
 6-4     degree programs described by Section 61.852, and certified
 6-5     workforce training programs described by Chapter 311, Labor Code;
 6-6                 (7)  the percentage [number] of students, aggregated by
 6-7     grade level, provided accelerated instruction under Section
 6-8     28.0211(c), the results of assessments administered under that
 6-9     section, the percentage [number] of students promoted through the
6-10     grade placement committee process under Section 28.0211, the
6-11     subject of the assessment instrument on which each student failed
6-12     to perform satisfactorily, and the performance of those students in
6-13     the school year following that promotion on the assessment
6-14     instruments required under Section 39.023;
6-15                 (8)  for students who have failed to perform
6-16     satisfactorily on an assessment instrument required under Section
6-17     39.023(a) or (c), the numerical progress of those students on
6-18     subsequent assessment instruments required under those sections,
6-19     aggregated by grade level and subject area;
6-20                 (9)  the percentage of students exempted, by exemption
6-21     category, from the assessment program generally applicable under
6-22     this subchapter; and
6-23                 (10)  any other indicator the State Board of Education
6-24     adopts.
6-25           SECTION 5.  Section 39.051, Education Code, is amended by
6-26     adding Subsection (g) to read as follows:
 7-1           (g)  The commissioner by rule shall adopt accountability
 7-2     measures to be used in assessing the progress of students who have
 7-3     failed to perform satisfactorily in the preceding school year on an
 7-4     assessment instrument required under Section 39.023(a), (c), or
 7-5     (l).
 7-6           SECTION 6.  Section 39.053, Education Code, as amended by
 7-7     Chapters 510 and 1417, Acts of the 76th Legislature, Regular
 7-8     Session, 1999, is reenacted and amended to read as follows:
 7-9           Sec. 39.053.  Performance Report.  (a)  Each board of
7-10     trustees shall publish an annual report describing the educational
7-11     performance of the district and of each campus in the district that
7-12     includes uniform student performance and descriptive information as
7-13     determined under rules adopted by the commissioner.  The annual
7-14     report must also include:
7-15                 (1)  campus performance objectives established under
7-16     Section 11.253 and the progress of each campus toward those
7-17     objectives, which shall be available to the public;
7-18                 (2)  the performance rating for the district as
7-19     provided under Section 39.072(a) and the performance rating of each
7-20     campus in the district as provided under Section 39.072(c); [and]
7-21                 (3)  the district's current special education
7-22     compliance status with the agency;
7-23                 (4)  [.  In addition, the annual report must include] a
7-24     statement of the number, rate, and type of violent or criminal
7-25     incidents that occurred on each district campus, to the extent
7-26     permitted under the Family Educational Rights and Privacy Act of
 8-1     1974 (20 U.S.C. Section 1232g);
 8-2                 (5)  [,] information concerning school violence
 8-3     prevention and violence intervention policies and procedures that
 8-4     the district is using to protect students;[,] and
 8-5                 (6)  the findings that result from evaluations
 8-6     conducted under the Safe and Drug-Free Schools and Communities Act
 8-7     of 1994 (20 U.S.C. Section 7101 et seq.) and its subsequent
 8-8     amendments.
 8-9           (b)  Supplemental information to be included in the reports
8-10     shall be determined by the board of trustees.  Performance
8-11     information in the annual reports on the indicators established
8-12     under Section 39.051 and descriptive information required by this
8-13     section shall be provided by the agency.
8-14           (c)  The board of trustees shall hold a hearing for public
8-15     discussion of the report.  The board of trustees shall give notice
8-16     of the hearing to property owners in the district and parents,
8-17     guardians, conservators, and other persons having lawful control of
8-18     a district student.  The notification must include notice to a
8-19     newspaper of general circulation in the district and notice to
8-20     electronic media serving the district.  After the hearing the
8-21     report shall be widely disseminated within the district in a manner
8-22     to be determined under rules adopted by the commissioner.
8-23           (d)  The report must also include a comparison provided by
8-24     the agency of:
8-25                 (1)  the performance of each campus to its previous
8-26     performance and to state-established standards;
 9-1                 (2)  the performance of each district to its previous
 9-2     performance and to state-established standards; and
 9-3                 (3)  the performance of each campus or district to
 9-4     comparable improvement.
 9-5           (e)  The report may include the following information:
 9-6                 (1)  student information, including total enrollment,
 9-7     enrollment by ethnicity, socioeconomic [economic] status, and grade
 9-8     groupings and retention rates;
 9-9                 (2)  financial information, including revenues and
9-10     expenditures;
9-11                 (3)  staff information, including number and type of
9-12     staff by gender [sex], ethnicity, years of experience, and highest
9-13     degree held, teacher and administrator salaries, and teacher
9-14     turnover;
9-15                 (4)  program information, including student enrollment
9-16     by program, teachers by program, and instructional operating
9-17     expenditures by program; and
9-18                 (5)  the number of students placed in an alternative
9-19     education program under Chapter 37.
9-20           (f)  The State Board of Education by rule shall authorize the
9-21     combination of this report with other reports and financial
9-22     statements and shall restrict the number and length of reports that
9-23     school districts, school district employees, and school campuses
9-24     are required to prepare.
9-25           (g)  The report must include a statement of the amount, if
9-26     any, of the school district's unencumbered surplus fund balance as
 10-1    of the last day of the preceding fiscal year and the percentage of
 10-2    the preceding year's budget that the surplus represents.
 10-3          SECTION 7.  Subsection (e), Section 39.073, Education Code,
 10-4    is amended to read as follows:
 10-5          (e)  In determining a district's accreditation rating, the
 10-6    agency shall consider:
 10-7                (1)  the district's current special education
 10-8    compliance status with the agency; and
 10-9                (2)  the progress of students who have failed to
10-10    perform satisfactorily in the preceding school year on an
10-11    assessment instrument required under Section 39.023(a), (c), or
10-12    (l).
10-13          SECTION 8.  The heading to Section 39.182, Education Code, is
10-14    amended to read as follows:
10-15          Sec. 39.182.  COMPREHENSIVE ANNUAL [BIENNIAL] REPORT.
10-16          SECTION 9.  Subsections (a) and (b), Section 39.182,
10-17    Education Code, are amended to read as follows:
10-18          (a)  Not later than December 1 of each year, the [The] agency
10-19    shall prepare and deliver to the governor, the lieutenant governor,
10-20    the speaker of the house of representatives, each member of the
10-21    legislature, the Legislative Budget Board, and the clerks of the
10-22    standing committees of the senate and house of representatives with
10-23    primary jurisdiction over the public school system a comprehensive
10-24    report covering the preceding [two] school year [years] and
10-25    containing:
10-26                (1)  an evaluation of the achievements of the state
 11-1    educational program in relation to the statutory goals for the
 11-2    public education system under Section 4.002;
 11-3                (2)  an evaluation of the status of education in the
 11-4    state as reflected by the academic excellence indicators adopted
 11-5    under Section 39.051;
 11-6                (3)  a summary compilation of overall student
 11-7    performance on academic skills assessment instruments required by
 11-8    Section 39.023 with the number and percentage of students exempted
 11-9    from the administration of those instruments and the basis of the
11-10    exemptions, aggregated by grade level, subject area, campus, and
11-11    district, with appropriate interpretations and analysis, and
11-12    disaggregated by race, ethnicity, gender [sex], and socioeconomic
11-13    status;
11-14                (4)  a summary compilation of overall performance of
11-15    students placed in an alternative education program established
11-16    under Section 37.008 on academic skills assessment instruments
11-17    required by Section 39.023 with the number of those students
11-18    exempted from the administration of those instruments and the basis
11-19    of the exemptions, aggregated by district, grade level, and subject
11-20    area, with appropriate interpretations and analysis, and
11-21    disaggregated by race, ethnicity, gender, and socioeconomic status;
11-22                (5)  a summary compilation of overall performance of
11-23    students at risk of dropping out of school, as defined by Section
11-24    29.081(d), on academic skills assessment instruments required by
11-25    Section 39.023 with the number of those students exempted from the
11-26    administration of those instruments and the basis of the
 12-1    exemptions, aggregated by district, grade level, and subject area,
 12-2    with appropriate interpretations and analysis, and disaggregated by
 12-3    race, ethnicity, gender, and socioeconomic status;
 12-4                (6)  an evaluation of the correlation between student
 12-5    grades and student performance on academic skills assessment
 12-6    instruments required by Section 39.023;
 12-7                (7) [(5)]  a statement of the dropout rate of students
 12-8    in grade levels 7 through 12, expressed in the aggregate and by
 12-9    grade level;
12-10                (8)  a statement of:
12-11                      (A)  the completion rate of students who enter
12-12    grade level 9 and graduate not more than four years later;
12-13                      (B)  the completion rate of students who enter
12-14    grade level 9 and graduate, including students who require more
12-15    than four years to graduate;
12-16                      (C)  the completion rate of students who enter
12-17    grade level 9 and not more than four years later receive a high
12-18    school equivalency certificate;
12-19                      (D)  the completion rate of students who enter
12-20    grade level 9 and receive a high school equivalency certificate,
12-21    including students who require more than four years to receive a
12-22    certificate; and
12-23                      (E)  the number and percentage of all students
12-24    who have not been accounted for under Paragraph (A), (B), (C), or
12-25    (D);
12-26                (9) [(6)]  a statement of the projected cross-sectional
 13-1    and longitudinal dropout rates for grade levels 9 [7] through 12
 13-2    for the next five years, assuming no state action is taken to
 13-3    reduce the dropout rate;
 13-4                (10) [(7)]  a description of a systematic, measurable
 13-5    plan for reducing the projected cross-sectional and longitudinal
 13-6    dropout rates to five percent or less for the 1997-1998 school
 13-7    year;
 13-8                (11) [(8)]  a summary of the information required by
 13-9    Section 29.083 regarding grade level retention of students and
13-10    information concerning:
13-11                      (A)  the number and percentage of students
13-12    retained; and
13-13                      (B)  the performance of retained students on
13-14    assessment instruments required under Section 39.023(a);
13-15                (12)  information, aggregated by district type and
13-16    disaggregated by race, ethnicity, gender, and socioeconomic status,
13-17    on:
13-18                      (A)  the number of students placed in an
13-19    alternative education program established under Section 37.008;
13-20                      (B)  the average length of a student's placement
13-21    in an alternative education program established under Section
13-22    37.008;
13-23                      (C)  the academic performance of students on
13-24    assessment instruments required under Section 39.023(a) during the
13-25    year preceding and during the year following placement in an
13-26    alternative education program; and
 14-1                      (D)  the dropout rates of students who have been
 14-2    placed in an alternative education program established under
 14-3    Section 37.008;
 14-4                (13) [(9)]  a list of each school district or campus
 14-5    that does not satisfy performance standards, with an explanation of
 14-6    the actions taken by the commissioner to improve student
 14-7    performance in the district or campus and an evaluation of the
 14-8    results of those actions;
 14-9                (14) [(10)]  an evaluation of the status of the
14-10    curriculum taught in public schools, with recommendations for
14-11    legislative changes necessary to improve or modify the curriculum
14-12    required by Section 28.002;
14-13                (15) [(11)]  a description of all funds received by and
14-14    each activity and expenditure of the agency;
14-15                (16) [(12)]  a summary and analysis of the compliance
14-16    of school districts with administrative cost ratios set by the
14-17    commissioner under Section 42.201, including any improvements and
14-18    cost savings achieved by school districts;
14-19                (17) [(13)]  a summary of the effect of deregulation,
14-20    including exemptions and waivers granted under Section 7.056 or
14-21    39.112;
14-22                (18) [(14)]  a statement of the total number and length
14-23    of reports that school districts and school district employees must
14-24    submit to the agency, identifying which reports are required by
14-25    federal statute or rule, state statute, or agency rule, and a
14-26    summary of the agency's efforts to reduce overall reporting
 15-1    requirements;
 15-2                (19) [(15)]  a list of each school district that is not
 15-3    in compliance with state special education requirements, including:
 15-4                      (A)  the period for which the district has not
 15-5    been in compliance;
 15-6                      (B)  the manner in which the agency considered
 15-7    the district's failure to comply in determining the district's
 15-8    accreditation status; and
 15-9                      (C)  an explanation of the actions taken by the
15-10    commissioner to ensure compliance and an evaluation of the results
15-11    of those actions;
15-12                (20)  a comparison of the performance of
15-13    open-enrollment charter schools and school districts on the
15-14    academic excellence indicators specified in Section 39.051(b) and
15-15    accountability measures adopted under Section 39.051(g), with a
15-16    separately aggregated comparison of the performance of
15-17    open-enrollment charter schools predominantly serving students at
15-18    risk of dropping out of school, as defined by Section 29.081(d),
15-19    with the performance of school districts; and
15-20                (21) [(16)]  any additional information considered
15-21    important by the commissioner or the State Board of Education.
15-22          (b)  In reporting the information required by Subsection
15-23    (a)(3) or (4), the agency may separately aggregate the performance
15-24    data of students enrolled in a special education program under
15-25    Subchapter A, Chapter 29, or a bilingual education or special
15-26    language program under Subchapter B, Chapter 29.
 16-1          SECTION 10.  Section 39.185, Education Code, is amended to
 16-2    read as follows:
 16-3          Sec. 39.185.  Interim Report.  Not later than December 1 of
 16-4    each odd-numbered year, the agency shall prepare and deliver to the
 16-5    governor, the lieutenant governor, the speaker of the house of
 16-6    representatives, each member of the legislature, the Legislative
 16-7    Budget Board, and the clerks of the standing committees of the
 16-8    senate and house of representatives with primary jurisdiction over
 16-9    the public school system an interim report containing, for the
16-10    previous school year, the information required by[:]
16-11                [(1)  Sections 39.182(a)(2), (3), (5), (6), (7), (9),
16-12    (11), and (13); and]
16-13                [(2)]  Section 39.183(2).
16-14          SECTION 11.  Section 42.152, Education Code, is amended by
16-15    amending Subsections (b), (c), (s), and (t) and adding Subsections
16-16    (r) and (u) to read as follows:
16-17          (b)  For purposes of this section, the number of
16-18    educationally disadvantaged students is determined:
16-19                (1)  by averaging the best six months' enrollment in
16-20    the national school lunch program of free or reduced-price lunches
16-21    for the preceding school year; or
16-22                (2)  in the manner provided by commissioner rule, if no
16-23    campus in the district participated in the national school lunch
16-24    program of free or reduced-price lunches during the preceding
16-25    school year.
16-26          (c)  Funds allocated under this section shall be used only to
 17-1    fund supplemental programs and services designed to eliminate any
 17-2    disparity in performance on assessment instruments administered
 17-3    under Subchapter B, Chapter 39, or disparity in the rates of high
 17-4    school completion between students at risk of dropping out of
 17-5    school, as defined by Section 29.081, and all other students.
 17-6    Specifically, the funds, other than an indirect cost allotment
 17-7    established under State Board of Education rule, which may not
 17-8    exceed 15 percent, may be used only to meet the costs of [in]
 17-9    providing a compensatory, intensive, or [education and] accelerated
17-10    instruction program [programs] under Section 29.081 or an
17-11    alternative education program established under Section 37.008 or
17-12    to support a program eligible under Title I of the Elementary and
17-13    Secondary Education Act of 1965, as provided by Pub. L. No. 103-382
17-14    and its subsequent amendments, and by federal regulations
17-15    implementing that Act, at a campus at which at least 50 percent of
17-16    the students are educationally disadvantaged [and may only be spent
17-17    to improve and enhance programs and services funded under the
17-18    regular education program].  In meeting the costs of providing a
17-19    compensatory, intensive, or accelerated instruction program under
17-20    Section 29.081, a [A] district's compensatory education allotment
17-21    may be used only for costs supplementary to the regular education
17-22    program, such as costs for program and student evaluation,
17-23    instructional materials and equipment and other supplies required
17-24    for quality instruction, supplemental staff expenses, salary for
17-25    teachers of at-risk students, smaller class size, and
17-26    individualized instruction.  A home-rule school district or an
 18-1    open-enrollment charter school must use funds allocated under
 18-2    Subsection (a) for a purpose authorized in this subsection [to
 18-3    provide compensatory education services] but is not otherwise
 18-4    subject to Subchapter C, Chapter 29.  Notwithstanding any other
 18-5    provisions of this section:
 18-6                (1)  to ensure that a sufficient amount of the funds
 18-7    allotted under this section are available to supplement
 18-8    instructional programs and services, no more than 18 percent of the
 18-9    funds allotted under this section may be used to fund disciplinary
18-10    alternative education programs established under Section 37.008;
18-11    and
18-12                (2)  the commissioner may waive the limitations of
18-13    Subdivision (1) upon an annual petition, by a district's board and
18-14    a district's site-based decision making committee, presenting the
18-15    reason for the need to spend supplemental compensatory education
18-16    funds on disciplinary alternative education programs under Section
18-17    37.008.  The district shall in its petition report the number of
18-18    students in each grade level, by demographic subgroup, not making
18-19    satisfactory progress under the state's assessment system.  The
18-20    commissioner will make this waiver request information available
18-21    annually to the public on the agency's website.
18-22          (r)  The commissioner shall grant a one-year exemption from
18-23    the requirements of Subsection (g) to a school district in which
18-24    the group of students who have failed to perform satisfactorily in
18-25    the preceding school year on an assessment instrument required
18-26    under Section 39.023(a), (c), or (l) subsequently performs on those
 19-1    assessment instruments at a level that meets or exceeds a level
 19-2    prescribed by commissioner rule.  Each year the commissioner, based
 19-3    on the most recent information available, shall determine if a
 19-4    school district is entitled to an exemption for the following
 19-5    school year and notify the district of that determination.
 19-6          (s)  Subsection (r) applies beginning with the 2003-2004
 19-7    school year.  This subsection expires September 1, 2004.
 19-8          (t)  A reduction made under this section or the General
 19-9    Appropriations Act in the allotment under this section does not
19-10    affect the computation of students in weighted average daily
19-11    attendance for purposes of Subchapter F.
19-12          (u) [(t)]  For each year of a state fiscal biennium, the
19-13    commissioner shall reduce the guaranteed level of state and local
19-14    funds per weighted student per cent of tax effort under Section
19-15    42.302 by an amount sufficient to reduce state costs in an amount
19-16    equal to the increase in state costs due to the application of
19-17    Subsection (t) [(s)].  The commissioner shall determine the same
19-18    reduction for each year and shall announce the determination as
19-19    soon as practicable after August 1 preceding the beginning of the
19-20    biennium.  A determination by the commissioner under this section
19-21    is final and may not be appealed.
19-22          SECTION 12.  (a)  Except as otherwise provided by this
19-23    section, this Act applies beginning with the 2001-2002 school year.
19-24          (b)  Subsection (g), Section 39.051, Education Code, as added
19-25    by this Act, and Subsection (e), Section 39.053, Education Code, as
19-26    amended by this Act, apply beginning with the 2003-2004 school
 20-1    year.
 20-2          (c)  Section 39.182, Education Code, as amended by this Act,
 20-3    applies beginning with the report required to be prepared not later
 20-4    than December 1, 2001, except that the Texas Education Agency shall
 20-5    include information specified under Paragraph (E), Subdivision (8),
 20-6    Subsection (a), Section 39.182, Education Code, as added by this
 20-7    Act, beginning with the report due December 1, 2004, and shall
 20-8    include, to the extent available, alternative information relating
 20-9    to students who leave school in the reports due in 2001, 2002, and
20-10    2003.
20-11          SECTION 13.  This Act takes effect immediately if it receives
20-12    a vote of two-thirds of all the members elected to each house, as
20-13    provided by Section 39, Article III, Texas Constitution.  If this
20-14    Act does not receive the vote necessary for immediate effect, this
20-15    Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 702 passed the Senate on
         May 4, 2001, by the following vote:  Yeas 28, Nays 0, one present,
         not voting; and that the Senate concurred in House amendments on
         May 17, 2001, by the following vote:  Yeas 30, Nays 0, one present,
         not voting.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 702 passed the House, with
         amendments, on May 11, 2001, by the following vote:  Yeas 126,
         Nays 0, two present, not voting.
                                             _______________________________
                                                Chief Clerk of the House
         Approved:
         _______________________________
                      Date
         _______________________________
                    Governor