By:  Bivins                                           S.R. No. 1257
                                  SENATE RESOLUTION
 1-1           BE IT RESOLVED by the Senate of the State of Texas, 77th
 1-2     Legislature, Regular Session, 2001, That Senate Rule 12.03 be
 1-3     suspended in part as provided by Senate Rule 12.08 to enable the
 1-4     conference committee appointed to resolve the differences on House
 1-5     Bill No. 2879, relating to public school finance, to consider and
 1-6     take action on the following matters:
 1-7           (1)  Senate Rule 12.03(4) is suspended to permit the
 1-8     committee to amend Section 21.402(c), Education Code, to read as
 1-9     follows:
1-10           (c)  The salary factors per step are as follows:
1-11     Years Experience       0         1         2          3         4
1-12     Salary Factor        .5656     .5790     .5924     .6058      .6340
1-13                         [.5596]   [.5728]   [.5861]   [.5993]   [.6272]
1-14     Years Experience       5         6         7          8         9
1-15     Salary Factor        .6623     .6906     .7168     .7416      .7651
1-16                         [.6552]   [.6831]   [.7091]   [.7336]   [.7569]
1-17     Years Experience      10        11        12         13        14
1-18     Salary Factor        .7872     .8082     .8281     .8467      .8645
1-19                         [.7787]   [.7996]   [.8192]   [.8376]   [.8552]
1-20     Years Experience      15        16        17         18        19
1-21     Salary Factor        .8811     .8970     .9119     .9260      .9394
1-22                         [.8717]   [.8874]   [.9021]   [.9160]   [.9293]
1-23     Years Experience 20 and over
1-24     Salary Factor        .9520
1-25                         [.9418]
 2-1           Explanation: This change is necessary to permit setting the
 2-2     salary factors for the minimum salary schedule for teachers,
 2-3     librarians, counselors, and nurses to reflect the higher guaranteed
 2-4     level of state and local funds per weighted student per cent of tax
 2-5     effort under Section 42.302, Education Code, as amended by House
 2-6     Bill No. 3343, and to reflect the repeal of Section 42.152(t),
 2-7     Education Code, by House Bill No. 2879, which requires the
 2-8     commissioner of education to adjust the guaranteed level to
 2-9     compensate for additional state costs because of the computation of
2-10     weighted students in average daily attendance under Section
2-11     42.152(s), Education Code.
2-12           (2)  Senate Rule 12.03(4) is suspended to permit the
2-13     committee to add text adding Subsection (f) to Section 42.005,
2-14     Education Code, to read as follows:
2-15           (f)  An open-enrollment charter school is not entitled to
2-16     funding based on an adjustment under Subsection (b)(2).
2-17           Explanation:  This change is necessary to provide that
2-18     open-enrollment charter schools whose attendance declines from one
2-19     year to the next for reasons other than the closing or reduction in
2-20     personnel of a military base do not have their attendance adjusted
2-21     to receive funding based on the preceding year's attendance.
2-22           (3)  Senate Rule 12.03(4) is suspended to permit the
2-23     committee to add Section 42.2531, Education Code, to read as
2-24     follows:
2-25           Sec. 42.2531.  ADJUSTMENT BY COMMISSIONER.  (a)  The
2-26     commissioner may make adjustments to amounts due to a school
 3-1     district under this chapter or Chapter 46, or to amounts necessary
 3-2     for a district to comply with the requirements of Chapter 41, as
 3-3     provided by this section.
 3-4           (b)  A school district that has a major taxpayer, as
 3-5     determined by the commissioner, that because of a protest of the
 3-6     valuation of the taxpayer's property fails to pay all or a portion
 3-7     of the ad valorem taxes due to the district may apply to the
 3-8     commissioner to have the district's taxable value of property or ad
 3-9     valorem tax collections adjusted for purposes of this chapter or
3-10     Chapter 41 or 46.  The commissioner may make the adjustment only to
3-11     the extent the commissioner determines that making the adjustment
3-12     will not:
3-13                 (1)  in the fiscal year in which the adjustment is
3-14     made, cause the amount to which school districts are entitled under
3-15     this chapter to exceed the amount appropriated for purposes of the
3-16     Foundation School Program for that year; and
3-17                 (2)  if the adjustment is made in the first year of a
3-18     state fiscal biennium, cause the amount to which school districts
3-19     are entitled under this chapter for the second year of the biennium
3-20     to exceed the amount appropriated for purposes of the Foundation
3-21     School Program for that year.
3-22           (c)  The commissioner shall recover the benefit of any
3-23     adjustment made under this section by making offsetting adjustments
3-24     in the school district's taxable value of property or ad valorem
3-25     tax collections for purposes of this chapter or Chapter 41 or 46 on
3-26     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)  Senate Rule 12.03(4) is suspended to permit the
4-14     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     districts 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)  Senate Rule 12.03(4) is suspended to permit the
4-24     committee to add SECTION 14 to read as follows:
4-25           SECTION 14.  (a)  Notwithstanding Section 46.034(a),
4-26     Education Code, as amended by this Act, for the 2002-2003 school
 5-1     year, except as provided by this section, a school district may not
 5-2     receive assistance under Subchapter B, Chapter 46, Education Code,
 5-3     for an existing debt tax rate greater than $0.12 per $100 of
 5-4     valuation.
 5-5           (b)  As soon as practicable, the commissioner of education
 5-6     shall determine whether funds are available from amounts
 5-7     appropriated for purposes of the Foundation School Program for the
 5-8     2001-2002 or 2002-2003 school year in excess of the amount of
 5-9     payments required to be made under Chapters 42 and 46, Education
5-10     Code.  In making a determination under this subsection, the
5-11     commissioner may:
5-12                 (1)  notwithstanding Section 42.253(b), Education Code,
5-13     reduce the entitlement under Chapters 42 and 46, Education Code, of
5-14     a school district whose final taxable value of property is higher
5-15     than the estimate under Section 42.254, Education Code; and
5-16                 (2)  make payments to school districts accordingly.
5-17           (c)  For the 2001-2002 school year, to the extent excess
5-18     funds are available under Subsection (b) of this section, and
5-19     notwithstanding Section 42.2522, Education Code, the commissioner
5-20     of education shall apply the funds in the following order:
5-21                 (1)  subject to any limitations in S.B. No. 1, Acts of
5-22     the 77th Legislature, Regular Session, 2001, to adjusting the
5-23     taxable value of property of school districts that experience a
5-24     rapid decline in taxable value, as provided by Section 42.2521,
5-25     Education Code;
5-26                 (2)  to funding school districts based on an adjustment
 6-1     for an optional homestead exemption, as provided by Section
 6-2     42.2522, Education Code; and
 6-3                 (3)  to funding school districts based on an adjustment
 6-4     for ad valorem taxes subject to a protest of the valuation of a
 6-5     major taxpayer's property, as provided by Section 42.2531,
 6-6     Education Code, as added by this Act.
 6-7           (d)  For the 2002-2003 school year, to the extent excess
 6-8     funds are available under Subsection (b) of this section, and
 6-9     notwithstanding Section 42.2522, Education Code, the commissioner
6-10     of education shall apply the funds in the following order:
6-11                 (1)  to authorizing additional assistance to school
6-12     districts under Subchapter A, Chapter 46, Education Code, in an
6-13     amount not to exceed $50 million;
6-14                 (2)  to increasing the limit on the existing debt tax
6-15     rate under Subsection (a)  of this section to a rate not to exceed
6-16     $0.29 per $100 of valuation;
6-17                 (3)  subject to any limitations in S.B. No. 1, Acts of
6-18     the 77th Legislature, Regular Session, 2001, to adjusting the
6-19     taxable value of property of school districts that experience a
6-20     rapid decline in taxable value, as provided by Section 42.2521,
6-21     Education Code;
6-22                 (4)  to funding school districts based on an adjustment
6-23     for an optional homestead exemption, as provided by Section
6-24     42.2522, Education Code; and
6-25                 (5)  to funding school districts based on an adjustment
6-26     for ad valorem taxes subject to a protest of the valuation of a
 7-1     major taxpayer's property, as provided by Section 42.2531,
 7-2     Education Code, as added by this Act.
 7-3           (e)  The commissioner of education must provide full funding
 7-4     for a priority listed in Subsection (c) or (d) of this section
 7-5     before providing funding for the next lower priority.
 7-6           (f)  A decision of the commissioner of education under this
 7-7     section is final and may not be appealed.
 7-8           Explanation:  This change is necessary to establish
 7-9     priorities for spending any Foundation School Program
7-10     appropriations that, because of property valuation increases,
7-11     exceed the amount to which school districts are entitled in the
7-12     biennium ending August 31, 2003.
7-13           (6)  Senate Rule 12.03(4) is suspended to permit the
7-14     committee to add SECTION 15 to read as follows:
7-15           SECTION 15.  From funds appropriated to the Texas Education
7-16     Agency that may be used for the purpose, the commissioner of
7-17     education shall as necessary 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           Explanation:  This change is necessary to permit the
7-21     commissioner of education to assist regional education service
7-22     centers in providing financial management or planning assistance to
7-23     school districts and open-enrollment charter schools.
7-24           (7)  Senate Rule 12.03(4) is suspended to permit the
7-25     committee to add SECTION 16 to read as follows:
7-26           SECTION 16.  (a)  The Communities in Schools advisory
 8-1     committee is created.  The governor, lieutenant governor, and
 8-2     speaker of the house of representatives shall each appoint three
 8-3     members to the advisory committee.
 8-4           (b)  The advisory committee shall advise and provide guidance
 8-5     to programs operated under the auspices of the Communities in
 8-6     Schools.
 8-7           (c)  In accordance with Section 2110.004, Government Code,
 8-8     reimbursement of the expenses of advisory committee members may be
 8-9     paid from amounts appropriated in S.B. No. 1, Acts of the 77th
8-10     Legislature, Regular Session, 2001, to the Texas Education Agency
8-11     and the Department of Protective and Regulatory Services.
8-12           (d)  The Texas Education Agency and the Department of
8-13     Protective and Regulatory Services shall:
8-14                 (1)  coordinate with the advisory committee;
8-15                 (2)  share equally the cost of reimbursement of the
8-16     expenses of advisory committee members; and
8-17                 (3)  each assign an employee to assist the advisory
8-18     committee in its duties and act as a liaison between the advisory
8-19     committee and the employee's employing agency.
8-20           Explanation:  This change is necessary to create an advisory
8-21     committee for the Communities in Schools youth dropout prevention
8-22     program, to provide for the committee members' expenses, and to
8-23     require the Texas Education Agency and Department of Protective and
8-24     Regulatory Services to support the committee.
8-25           (8)  Senate Rule 12.03(4) is suspended to permit the
8-26     committee to add SECTION 17 to read as follows:
 9-1           SECTION 17.  Notwithstanding Subsection (a)  of Rider 55
 9-2     under the appropriations to the Texas Education Agency in S.B. No.
 9-3     1, Acts of the 77th Legislature, Regular Session, 2001, the funds
 9-4     allocated by that rider shall be allocated in the following manner:
 9-5                 (1)  The funds shall be distributed by the commissioner
 9-6     of education for reading diagnostic instruments and on a
 9-7     competitive grant basis to be used by schools for the
 9-8     implementation of scientific, research-based reading and
 9-9     mathematics programs, the purchase of additional instructional or
9-10     diagnostic materials, necessary materials for libraries,
9-11     instructional staff, or related professional staff development for
9-12     educators with the goal of as much direct intervention with
9-13     students as possible.  To be eligible for funding, schools must
9-14     perform a diagnostic assessment for below-grade-level reading
9-15     skills and submit a plan for parental involvement in the program.
9-16                 (2)  The commissioner of education shall use not less
9-17     than $15 million of the funds allocated by Rider 55 to implement
9-18     scientific-based content development for training materials,
9-19     professional development institutes in mathematics and related
9-20     research, as provided by Sections 7.058, 21.454, 21.455, Education
9-21     Code, as added by H.B. No. 1144, Acts of the 77th Legislature,
9-22     Regular Session, 2001.
9-23                 (3)  The commissioner of education may use a portion of
9-24     the funds allocated by Rider 55 to implement the master mathematics
9-25     teacher program as provided by Sections 21.0482 and 21.411,
9-26     Education Code, as added by H.B. No. 1144, Acts of the 77th
 10-1    Legislature, Regular Session, 2001, and shall transfer funds to the
 10-2    State Board for Educator Certification for creation of the master
 10-3    mathematics teacher certification as provided by Section 21.0482,
 10-4    Education Code, as added by H.B. No. 1144, Acts of the 77th
 10-5    Legislature, Regular Session, 2001.
 10-6          Explanation:  This change is necessary to allocate funds
 10-7    appropriated by Senate Bill No. 1 for purposes of the governor's
 10-8    reading and mathematics initiatives.
 10-9          (9)  Senate Rule 12.03(4) is suspended to permit the
10-10    committee to add SECTION 18 to read as follows:
10-11          SECTION 18.  Of the amounts appropriated in Article III, S.B.
10-12    No. 1, Acts of the 77th Legislature, Regular Session, 2001, to the
10-13    Texas Education Agency under Strategy A.3.3.: Improving Educator
10-14    Performance, the commissioner of education:
10-15                (1)  shall allocate $8 million for the fiscal year
10-16    ending August 31, 2002, and $12 million for the fiscal year ending
10-17    August 31, 2003, for purposes of funding stipends for master
10-18    reading and mathematics teachers as provided by Section 21.410,
10-19    Education Code, and 21.411, Education Code, as added by H.B. No.
10-20    1144, Acts of the 77th Legislature, Regular Session, 2001; and
10-21                (2)  may transfer funds to the State Board for Educator
10-22    Certification for creation of the master mathematics teacher
10-23    certification as provided by Section 21.0482, Education Code, as
10-24    added by H.B. No. 1144, Acts of the 77th Legislature, Regular
10-25    Session, 2001.
10-26          Explanation:  This change is necessary to allocate funds
 11-1    appropriated by Senate Bill No. 1 for purposes of the certified
 11-2    master reading teachers and the certified master mathematics
 11-3    teachers portions of the governor's reading and mathematics
 11-4    initiatives.
 11-5          (10)  Senate Rule 12.03(4) is suspended to permit the
 11-6    committee to add SECTION 19 to read as follows:
 11-7          SECTION 19.  The Legislative Budget Board shall increase the
 11-8    number of full-time-equivalent positions authorized for the Texas
 11-9    Education Agency by S.B. No. 1, Acts of the 77th Legislature,
11-10    Regular Session, 2001, by two for the fiscal year ending August 31,
11-11    2003, for purposes of the mathematics initiative proposed by H.B.
11-12    No. 1144, Acts of the 77th Legislature, Regular Session, 2001.
11-13          Explanation:  This change is necessary to permit the Texas
11-14    Education Agency to employ two additional full-time equivalent
11-15    employees for purposes of the governor's mathematics initiative.
11-16          (11)  Senate Rule 12.03(4) is suspended to permit the
11-17    committee to add SECTION 20 to read as follows:
11-18          SECTION 20.  A portion of the amounts appropriated in Article
11-19    III, S.B. No. 1, Acts of the 77th Legislature, Regular Session,
11-20    2001, to the Texas Education Agency is allocated as provided by
11-21    this section:
11-22                (1)  for the fiscal biennium ending August 31, 2003,
11-23    the amount allocated under Strategy A.2.1.:  FSP-Equalized
11-24    Operations is reduced by []$100 million, and the amount allocated
11-25    under Strategy A.2.2.:  FSP-Equalized Facilities is increased by
11-26    that amount to assist school districts under the provisions of
 12-1    Subchapter A, Chapter 46, Education Code;
 12-2                (2)  for the fiscal biennium ending August 31, 2003,
 12-3    the amount allocated under Strategy A.2.1.:  FSP-Equalized
 12-4    Operations is reduced by []$205 million, and the amount allocated
 12-5    under Strategy A.2.2.:  FSP-Equalized Facilities is increased by
 12-6    that amount to assist school districts under the provisions of
 12-7    Subchapter B, Chapter 46, Education Code;
 12-8                (3)  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 $57 million,[] and the amount allocated
12-11    under Strategy B.1.2.:  Student Success is increased by that
12-12    amount;
12-13                (4)  for the fiscal biennium ending August 31, 2003,
12-14    the amount allocated under Strategy A.2.1.: FSP-Equalized
12-15    Operations is reduced by $30 million, and the amount allocated
12-16    under Strategy B.1.2.:  Student Success is increased by that amount
12-17    for mathematics and reading programs; []
12-18                (5)  for the fiscal biennium ending August 31, 2003,
12-19    the amount allocated under Strategy A.2.1.: FSP-Equalized
12-20    Operations is reduced by $11 million, and the amount allocated to
12-21    the Texas Higher Education Coordinating Board under Strategy
12-22    C.1.18.:  Teach for Texas Conditional Grants is increased by that
12-23    amount for purposes of the Teach for Texas grant program under
12-24    Section 56.309, Education Code;
12-25                (6)  for the fiscal biennium ending August 31, 2003,
12-26    the amount allocated under Strategy A.2.1.:  FSP-Equalized
 13-1    Operations is reduced by $9 million, and:
 13-2                      (A)  an amount of $4 million is allocated to the
 13-3    Texas Higher Education Coordinating Board under Article III,
 13-4    Special Provisions, for purposes of the Joint Admission Medical
 13-5    Program under Subchapter V, Chapter 51, Education Code, as added by
 13-6    S.B. No. 940, Acts of the 77th Legislature, Regular Session, 2001;
 13-7    and
 13-8                      (B)  the amount allocated to the Texas Higher
 13-9    Education Coordinating Board under Strategy A.1.1.:  Information
13-10    and Planning is increased by $5 million for purposes of the Public
13-11    Awareness Campaign Promoting Higher Education under Section 61.951,
13-12    Education Code, as added by S.B. No. 573, Acts of the 77th
13-13    Legislature, Regular Session, 2001;
13-14                (7)  for the fiscal biennium ending August 31, 2003,
13-15    the amount allocated under Strategy A.2.1.:  FSP-Equalized
13-16    Operations is reduced by $2 million, and the amount allocated to
13-17    Strategy B.3.1., Regional Training and Development, is increased by
13-18    that amount and shall be allocated at the discretion of the
13-19    commissioner of education, for purposes including the provision of
13-20    assistance to The University of Texas at Austin for the Technology
13-21    Charter School; and
13-22                (8)  for the fiscal biennium ending August 31, 2003,
13-23    the amount allocated under Strategy A.2.1.:  FSP-Equalized
13-24    Operations is reduced by $300,000, and the amount allocated to
13-25    Strategy C.1.2., School Finance System Operations, is increased by
13-26    that amount to make changes to the Texas Education Agency's school
 14-1    finance payment system as are necessary to efficiently implement
 14-2    the provisions of this legislation or H.B. No. 3343, Acts of the
 14-3    77th Legislature, Regular Session, 2001.
 14-4          Explanation:  This change is necessary to allocate funds
 14-5    appropriated by Senate Bill No. 1 for purposes of providing funding
 14-6    for the instructional facilities allotment, the existing debt
 14-7    allotment, programs intended to improve student success, the Teach
 14-8    for Texas Conditional Grant Program, the Joint Admission Medical
 14-9    Program, the Public Awareness Campaign Promoting Higher Education,
14-10    increasing the commissioner of education's discretionary funds, and
14-11    improving the Texas Education Agency's school finance payment
14-12    system.
14-13          (12)  Senate Rule 12.03(4) is suspended to permit the
14-14    committee to add SECTION 21 to read as follows:
14-15          SECTION 21.  Of the funds allocated by Rider 2 under the
14-16    appropriations to the Texas Education Agency in S.B. No. 1, Acts of
14-17    the 77th Legislature, Regular Session, 2001, not more than $22
14-18    million may be used for the fiscal biennium ending August 31, 2003,
14-19    for adjusting the attendance of school districts that experience a
14-20    decline in average daily attendance, as provided by Section
14-21    42.005(b)(2), Education Code, as added by this Act.
14-22          Explanation:  This change is necessary to allocate funds
14-23    appropriated by Senate Bill No. 1 for purposes of the attendance
14-24    adjustment for school districts with declining attendance that is
14-25    not caused by the closing or reduction in personnel of a military
14-26    base.
 15-1          (13)  Senate Rule 12.03(4) is suspended to permit the
 15-2    committee to add SECTION 22 to read as follows:
 15-3          SECTION 22.  For the fiscal biennium ending August 31, 2003,
 15-4    the amount appropriated in Article III, S.B. No. 1, Acts of the
 15-5    77th Legislature, Regular Session, 2001, to the Texas Education
 15-6    Agency and allocated for Successful Schools Awards under Strategy
 15-7    A.1.2.:  Accountability System is reduced by $2.5 million.
 15-8          Explanation:  This change is necessary to permit funding of
 15-9    other programs to which funds are allocated under House Bill No.
15-10    2879.
15-11                                 ______________________________________
15-12                                         President of the Senate
15-13                                      I hereby certify that the above
15-14                                 Resolution was adopted by the Senate
15-15                                 on May 27, 2001, by the following
15-16                                 vote:  Yeas 30, Nays 0, one present
15-17                                 not voting.
15-18                                 ______________________________________
15-19                                         Secretary of the Senate