BILL ANALYSIS C.S.H.B. 1363 By: Crownover Higher Education Committee Report (Substituted) BACKGROUND AND PURPOSE The Texas Academy of Mathematics and Science (TAMS) currently receives its allotment from the foundation school program under Chapter 42 as if the academy were a school district, except that the academy has a local share applied that is equivalent to the local fund assignment of the Denton Independent School District (DISD). Due to increased property values in the assigned school district, the allotment TAMS receives continues to decrease. However, TAMS does not receive any of the additional property tax revenue that DISD receives as a result of the increased property values. As proposed, CSHB 1363 disengages TAMS from the DISD and recognizes that TAMS has no taxing authority. CSHB 1363 entitles TAMS to allotments from the foundation school program under Chapter 42 as if TAMS were a school district without a tier one local share. CSHB 1363 also authorizes the Commissioner of Education to set aside funds from the foundation school program and appropriate that allotment to TAMS. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS CSHB 1363 amends Section 42.156, Education Code, by adding Subsection (g) and (h) to provide that the commissioner shall, each fiscal year, withhold from the total funds appropriated for allotments under this section, an amount to be determined and distributed by the commissioner to the Texas Academy of Mathematics and Science under Section 105.301. The bill provides that after deducting the amount, the commissioner shall reduce each district's tier one allotments in the same manner described for a reduction in allotments under Section 42.253 and shall allocate funds to each district accordingly. The bill provides that a reduction made under this subsection to an allotment does not affect the computation of students in weighted average daily attendance for purposes of Subchapter F. CSHB 1363 amends Section 105.301(e) and adds Subsection (f), Education Code, to remove the Texas Academy of Mathematics and Science's local share assignment. The bill provides that the Texas Academy of Mathematics and Science is to receive allotments from the foundation school program under Chapter 42 as if it were a school district without a tier one local share. The bill provides that if in any academic year the amount of the allotment exceeds $366,825, the portion of the allotments that exceeds that amount must be funded by the funds set aside by the commissioner under Section 42.156 (g). EFFECTIVE DATE This Act takes effect September 1, 2003. COMPARISON OF ORIGINAL TO SUBSTITUTE CSHB 1363 modifies the original by authorizing the commissioner to set aside funds from the foundation school program to fund the Texas Academy of Mathematics and Science's allotment.