Amend CSHB 3459 as follows:                                                  

(1)  On page 1, between lines 12 and 13, insert the 	following:               
	SECTION 1.  The following provisions of the Education Code 
are repealed:     
		(1)  Chapters 41, 42, and 46; and                                             
		(2)  Section 45.002.                                                          
	SECTION 2.  Chapter 4, Education Code, is amended by adding 
Section 4.003 to read as follows:
	Sec. 4.003.  STATE RESPONSIBILITY FOR PROVISION OF PUBLIC 
EDUCATION.  (a)  It is the policy of this state that the provision of 
public education is a state responsibility and that a thorough and 
efficient system be provided and substantially financed through 
state revenue sources so that each student enrolled in the public 
school system shall have access to programs and services that are 
appropriate to the student's educational needs and that are 
substantially equal to those available to any similar student, 
notwithstanding varying local economic factors.
	(b)  The public school finance system of this state shall 
adhere to a standard of neutrality that provides for substantially 
equal access to similar revenue per student at similar tax effort, 
considering all state and local tax revenues of districts after 
acknowledging all legitimate student and district cost 
differences.
	(c)  It is the policy of this state that not later than 
September 1, 2007, the legislature shall provide state funding in 
an amount that constitutes at least 50 percent of the cost of 
maintaining and operating the public school system.
	SECTION 3.  Sections 1 and 2 of this Act take effect 
September 1, 2004, but only if, before that date:
		(1)  the legislature has enacted a school finance 
system to replace the system established by Chapters 41, 42, 45, and 
46, Education Code;
		(2)  the Act enacting a school finance system in 
compliance with Subdivision (1) of this subsection affirmatively 
states that the system is a comprehensive school finance system for 
the entire state; and
		(3)  the school finance system enacted in compliance 
with Subdivision (1) of this subsection has become law.
	(2)  On page 3, between lines 5 and 6, insert the following 
new section, appropriately numbered:
	SECTION ___.  Subchapter I, Chapter 21, Education Code, is 
amended by adding Section 21.413 to read as follows:
	Sec. 21.413.  CLASSROOM SUPPLY REIMBURSEMENT PROGRAM.  (a)  
The commissioner shall establish a reimbursement program under 
which the commissioner provides funds to a school district for the 
purpose of reimbursing classroom teachers in the district who 
expend personal funds on classroom supplies.  A school district 
must match any funds provided to the district under the 
reimbursement program with local funds to be used for the same 
purpose.
	(b)  The commissioner shall adopt rules for the local 
allocation of funds provided to a school district under the 
reimbursement program.  A school district shall allow each 
classroom teacher in the district who is reimbursed under the 
reimbursement program to use the funds in the teacher's discretion, 
except that the funds must be used for the benefit of the district's 
students.  A school district may not use funds received under the 
reimbursement program to replace local funds used by the district 
for the same purpose.
	(c)  The commissioner shall identify state and federal funds 
available for use under the reimbursement program, including funds 
subject to the Education Flexibility Partnership Act of 1999 (20 
U.S.C. Section 5891a et seq.), and its subsequent amendments, as 
well as consolidated administrative funds.
	(d)  The commissioner shall establish the reimbursement 
program for implementation beginning not later than the 2005-2006 
school year.  The commissioner may implement the reimbursement 
program only if funds are specifically appropriated by the 
legislature for the program or if the commissioner identifies 
available funds, other than general revenue funds, that may be used 
for the program.
	(3)  On page 11, between lines 1 and 2, insert the following 
new section, appropriately numbered:
	SECTION ____.  Sections 41.0021(a) and (e), Education Code, 
are amended to read as follows:
	(a)  Notwithstanding Section 41.002, for the [2001-2002, 
2002-2003, and] 2003-2004 and 2004-2005 school years, a school 
district that in the 1999-2000 school year did not offer each grade 
level from kindergarten through 12 may elect to have its wealth per 
student determined under this section.
	(e)  This section expires September 1, 2005 [2004].    
	(4)  On page 14, between lines 2 and 3, insert the following 
new sections, appropriately numbered:
	SECTION ____.  Subchapter E, Chapter 42, Education Code, is 
amended by adding Section 42.2516 to read as follows:
	Sec. 42.2516.  ADDITIONAL AID FOR 2003-2004 AND 2004-2005 
SCHOOL YEARS.  (a)  For the 2003-2004 and 2004-2005 school years, in 
addition to any other state aid to which a school district is 
entitled under this chapter, a district is entitled to an amount 
equal to the product of the number of students in average daily 
attendance in the district multiplied by $150.
	(b)  A school district that is otherwise ineligible for state 
aid under this chapter is entitled to state aid under this section.  
A school district that is required to take action under Chapter 41 
to reduce its wealth per student to the equalized wealth level is 
entitled to:
		(1)  a credit, in the amount of the state aid to which 
the district is entitled under this section, against the total 
amount required under Section 41.093 for the district to purchase 
attendance credits; and
		(2)  if the amount of state aid to which the district is 
entitled under this section exceeds the total amount required under 
Section 41.093 for the district to purchase sufficient attendance 
credits to reduce its wealth per student to the equalized wealth 
level, state aid in an amount equal to the difference between the 
state aid to which the district is entitled under this section and 
the credit applied under Subdivision (1).
	(c)  In addition to any aid established by Subsection (a), 
for the 2003-2004 and 2004-2005 school years, a school district 
with less than 5,000 students in average daily attendance and a 
wealth per student that does not exceed the equalized wealth level 
under Section 41.002 is also entitled to additional funding 
determined as follows:  Multiply 0.65 times the amount calculated 
when $150 times the district's average daily attendance is 
subtracted from $112 times the district's weighted average daily 
attendance.
	(d)  This subsection applies only to a current employee of a  
school district who is entitled to the minimum salary under Section 
21.402, who was employed by that district during the 2002-2003 
school year, and who received funds under Article 3.50-8, Insurance 
Code, during the 2002-2003 school year.  For the 2003-2004 school 
year, a school district shall ensure that each employee to whom this 
subsection applies and who is employed by the district receives the 
difference, if any, between $1,000 and the amount per employee that 
the district receives under other law for purposes of Article 
3.50-8, Insurance Code, for employees to whom this subsection 
applies.  A district employee may not bring a cause of action 
against a district under this subsection on the basis of the amount 
paid to the employee under this subsection if the employee's total 
salary for the 2003-2004 school year, including amounts paid for 
purposes of Article 3.50-8, Insurance Code, is equal to or greater 
than the employee's base salary for the 2002-2003 school year, 
including any career ladder supplement, plus any money paid to or 
used on behalf of the employee under Article 3.50-8, Insurance 
Code.
	(e)  This section expires September 1, 2005.                            
	SECTION ____.  Subchapter E, Chapter 42, Education Code, is 
amended by adding Section 42.2517 to read as follows:
	Sec. 42.2517.  EXCESS FUNDS FOR COST OF EDUCATION 
ADJUSTMENT.  (a)  If the commissioner determines that the amount 
appropriated for purposes of the Foundation School Program exceeds 
the amount to which school districts are entitled under this 
chapter, the commissioner may:
		(1)  adjust each district's cost of education 
adjustment under Section 42.102 to reflect current uncontrollable 
variations in the cost of education, particularly the cost of 
providing salaries and benefits to classroom teachers; and
		(2)  provide funding under this chapter based on the 
cost of education index adjusted under Subdivision (1).
	(b)  If the amount available under Subsection (a) is not 
sufficient to provide funding based on the cost of education index 
adjusted under Subsection (a)(1), the commissioner shall rank 
districts by the increase in the cost of education adjustment 
applicable to each district under this section and shall provide 
funding under this section to districts in descending order of the 
amount of increase in the cost of education adjustment applicable 
to districts under this section, beginning with the district that 
has the greatest increase in the cost of education adjustment, 
until no funds are available for purposes of this section.
	(5)  On page 20, strike lines 4 and 5 and substitute the 
following:          
	SECTION ___.  Section 46.034, Education Code, is amended by 
amending Subsection (c) and adding Subsections (d) and (e) to read 
as follows:
	(6)  On page 20, between lines 13 and 14, insert the 
following:              
	(d)  Notwithstanding any other provision of this chapter, if 
the appropriation to support newly eligible bonds for the 2003-2004 
school year and the 2004-2005 school year is not sufficient to 
provide the state aid that school districts are entitled to under 
Section 46.032, the commissioner is directed to reduce the $35 
guaranteed level of state and local support per student per cent of 
tax effort for newly eligible debt only to the level necessary to 
fund the sum of the allotments within the appropriated amount.  The 
guaranteed level for eligible debt through the 2000-2001 school 
year is not affected by this adjustment.  The commissioner shall 
make this determination as soon as practicable, prior to the 
beginning of the school year.  The decision of the commissioner is 
final and may not be appealed.
	(e)  Section 46.034(d) and this subsection expire September 
1, 2005.  
	(7)  On page 26, between lines 17 and 18, insert the 
following new sections, appropriately numbered:
	SECTION ___.  (a)  The repeal by Section 1 of this Act of 
Section 45.002, Education Code, does not impair any obligation 
created by the issuance or execution of any lawful agreement or 
evidence of indebtedness before September 1, 2004, that matures 
after that date and that is payable from the levy and collection of 
a maintenance tax under that section or another law, and an 
independent school district may, on and after September 1, 2004, 
levy, assess, and collect a maintenance tax, at a rate not greater 
than the rate required to pay such obligations but only for so long 
as those obligations remain outstanding and unpaid.
	(b)  Notwithstanding the repeal by Section 1 of this Act of 
Chapters 41, 42, and 46, Education Code, and Section 45.002, 
Education Code, a school district that, before September 1, 2004, 
issues bonds, notes, or other evidences of indebtedness under 
Chapter 45, Education Code, or other applicable law or enters into a 
lease-purchase agreement under Subchapter A, Chapter 271, Local 
Government Code, may continue, before, on, and after September 1, 
2004, to receive state assistance with respect to such payments to 
the same extent the district would have been entitled to receive the 
assistance under Chapter 42 or 46, Education Code, as those 
chapters existed before repeal by this Act, and the former law is 
continued in effect for that purpose.  The commissioner of 
education may adopt rules to implement this subsection.
	(c)  The repeal by Section 1 of this Act of Chapters 41, 42, 
and 46, Education Code, and Section 45.002, Education Code, does 
not limit, modify, or eliminate the authority of a school district 
to:
		(1)  issue or execute bonds, public securities, or 
other obligations under Chapter 45, Education Code, or other law, 
either before, on, or after September 1, 2004; or
		(2)  levy, assess, and collect, before, on, or after 
September 1, 2004, ad valorem taxes at the full rate and in the full 
amount authorized by Section 45.002, Education Code, and necessary 
to pay the bonds, public securities, or other obligations when due 
and payable.
	(d)  Before September 1, 2004, the commissioner of education 
may not refuse to grant assistance to a school district under 
Chapter 42 or 46, Education Code, in connection with public 
securities, lease-purchase agreements, credit agreements, or other 
obligations, including those described by Subchapter A, Chapter 
271, Local Government Code, on the basis that the district's 
authority to levy a maintenance tax is repealed effective September 
1, 2004.
	SECTION ___.  The commissioner of education shall adopt 
rules and establish the classroom supply reimbursement program as 
required by Section 21.413, Education Code, as added by this Act, 
not later than August 1, 2005.
	(8)  Strike page 26, lines 21-25, and substitute the 
following:              
	SECTION ___.  Except as otherwise provided by this Act, this 
Act takes effect immediately if it receives a vote of two-thirds of 
all the members elected to each house, as provided by Section 39, 
Article III, Texas Constitution.  If this Act does not receive the 
vote necessary for immediate effect, this Act takes effect 
September 1, 2003, except as otherwise provided by this Act.
	(9)  Renumber the sections of the bill accordingly.