78R8617 BDH-D

By:  Pitts                                                        H.B. No. 3245



A BILL TO BE ENTITLED

AN ACT

relating to compensatory education allotments under the foundation 
school program.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Sections 42.152(i)-(l), (n), and (p), Education 
Code, are amended to read as follows:
	(i)  From the total amount of funds appropriated for 
allotments under this section, the commissioner may [shall], each 
fiscal year, withhold an [$7,500,000 or a greater] amount as 
determined in the General Appropriations Act and distribute that 
amount for programs under Subchapter A, Chapter 33.  A program 
established under that subchapter is required only in school 
districts in which the program is financed by funds distributed 
under this section or other funds distributed by the commissioner 
for a program under that subchapter.  In distributing those funds, 
preference shall be given to a school district that received funds 
for a program under this subsection for the preceding school year.
	(j)  The commissioner shall coordinate any [the] funds 
withheld under Subsection (i) and any other funds available for the 
program and [shall] distribute those funds.  To receive available
funds for the program, a school district must apply to the 
commissioner.  In distributing any funds under this subsection, the
[The] commissioner shall give a preference to the districts that 
apply that have the highest concentration of at-risk students.  For 
each school year that a school district receives funds under this 
subsection [section], the district shall allocate an amount of 
local funds for school guidance and counseling programs that is 
equal to or greater than the amount of local funds that the school 
district allocated for that purpose during the preceding school 
year.
	(k)  After deducting any [the] amount withheld under 
Subsection (i) from the total amount appropriated for the allotment 
under Subsection (a), the commissioner shall reduce each district's 
tier one allotments in the same manner described for a reduction in 
allotments under Section 42.253.
	(l)  From the total amount of funds appropriated for 
allotments under this section, the commissioner may [shall], each 
fiscal year, withhold an [the] amount not more than [of] $2.5 
million for transfer to the investment capital fund under Section 
7.024.
	(n)  After deducting any [the] amount withheld under 
Subsection (l) from the total amount appropriated for the allotment 
under Subsection (a), the commissioner shall reduce each district's 
allotment under Subsection (a) proportionately and shall allocate 
funds to each district accordingly.
	(p)  The commissioner may [shall:                      
		[(1)]  withhold, from the total amount of funds 
appropriated for allotments under this section, an amount not to 
exceed five percent of the amounts allocated under this section and 
distribute that amount for [sufficient to finance] extended year 
programs under Section 29.082.  In distributing any funds under 
this subsection, the commissioner shall [not to exceed five percent 
of the amounts allocated under this section; and
		[(2)]  give priority to applications for extended year 
programs to districts with high concentrations of educationally 
disadvantaged students.
	SECTION 2.  This Act takes effect September 1, 2003.