By:  Eiland                                                       H.B. No. 232



A BILL TO BE ENTITLED

AN ACT

relating to public school finance.                                            
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 41, Education Code, is repealed as of 
August 31, 2004.   
	SECTION 2.  (a)  The commissioner of education shall develop 
a plan, no later than January 1, 2004, to incorporate the school 
districts governed by the provisions of Chapter 41, Education Code, 
in to Chapters 42 and 46, Education Code.
	(b)  The plan required in (a) shall be submitted to the 
Governor and the Legislative Budget Board no later than January 15, 
2004.  The Governor and the Legislative Budget Board shall approve 
the commissioner's plan, required in (a), no later than March 1, 
2004.
	(c)  If the commissioner's plan is not approved by the 
Governor and the Legislative Budget Board by March 1, 2004, the 
Governor and the Legislative Budget Board shall develop an 
alternative plan to the plan required in (a).
	(d)  The plan required in (c) shall be finalized no later 
than May 15, 2004, and implemented in the 2004-05 school year.
	(e)  No matter which plan, either required in (a) or (c), is 
adopted by the Governor and the Legislative Budget Board, the 
Legislative Budget Board shall make the necessary changes within 
Article III of the general appropriations act as approved by the 
78th Legislature.
	(f)  The commissioner of education shall develop procedures 
and adopt necessary rules by July 1, 2004, to implement this 
section.
	SECTION 3.  It is the intent of the Legislature that the 
public shall be informed and have the ability to comment on the 
plans as required in Section 2(a) and (c) prior to adoption and 
implementation.
	SECTION 4.  The comptroller's office and the office of 
attorney general shall fully cooperate in the development of the 
plans required in Section 2(a) and (c).
	SECTION 5.  This Act takes effect September 1, 2003.