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By:  Homer                                                        H.B. No. 3176



A BILL TO BE ENTITLED

AN ACT

relating to the compensatory education allotment.                             
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 42.152(c), Education Code, is amended to 
read as follows:
	(c)  Funds allocated under this section shall be used [only] 
to fund supplemental programs and services designed to eliminate 
any disparity in performance on assessment instruments 
administered under Subchapter B, Chapter 39, or disparity in the 
rates of high school completion between students at risk of 
dropping out of school, as defined by Section 29.081, and all other 
students.  Specifically, the funds, other than an indirect cost 
allotment established under state Board of Education rule, which 
may not exceed 15 percent, may be used [only] to meet the costs of 
providing a compensatory, intensive, or accelerated instruction 
program under Section 29.081 or an alternative education program 
established under Section 37.008 or to support a program eligible 
under Title I of the Elementary and Secondary Education Act of 1965, 
as provided by Pub. L. No. 103-382 and its subsequent amendments, 
and by federal regulations implementing that Act, at a campus at 
which at least 50 percent of the students are educationally 
disadvantaged.  In meeting the costs of providing a compensatory, 
intensive, or accelerated instruction program under section 
29.081, a district's compensatory education allotment may be used 
[only] for costs supplementary to the regular education program, 
such as costs for program and student evaluation, instructional 
materials and equipment and other supplies required for quality 
instruction, supplemental staff expenses, salary for teachers of 
at-risk students, smaller class size, and individualized 
instruction.  A home-rule school district or an open-enrollment 
charter school must use funds allocated under Subsection (a) for a 
purpose authorized in this subsection but is not otherwise subject 
to Subchapter C, Chapter 29.  Notwithstanding any other provisions 
of this section:
	SECTION 2.  Section 42.152(c) is amended by adding a new (3) 
to read as follows:

(3)  For the purposes of this chapter, alternative education 
programs designed specifically to serve students "at risk of 
dropping out" as defined in Section 29.081 are considered programs 
supplemental to the overall educational program and the 
compensatory education allotment may be used to fund these programs 
and services.
	SECTION 3.  The definition created by (3) above shall apply 
to the Compensatory Education Allotment beginning with the 
2001-2002 school year.
	SECTION 4.  This Act takes effect immediately if it received 
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.