78R8722 ESH-D
By:  Bivins                                                       S.B. No. 1873
A BILL TO BE ENTITLED
AN ACT
relating to statutory authority to reduce appropriations made by 
the legislature to certain governmental educational entities and to 
other fiscal matters involving certain governmental educational 
entities.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Notwithstanding any statute to the contrary, the 
legislature, in its discretion, may determine the amount of each 
appropriation of state funds.  The amounts required by statute for 
educational entities that receive state funds under Article III of 
the General Appropriations Act may be  reduced or eliminated in 
order to achieve a balanced budget.
	SECTION 2.  Subchapter A, Chapter 7, Education Code, is 
amended by adding Section 7.007 to read as follows:
	Sec. 7.007.  COMPLIANCE MONITORING BY COMMISSIONER OR 
AGENCY.  (a)  Notwithstanding any other provision of this code, the 
commissioner or agency may monitor compliance with requirements 
applicable to a program provided by a school district, including a 
program described by Subchapter A, B, C, D, or E, Chapter 29, or 
Subchapter A, Chapter 37, only to the extent necessary to comply 
with federal law or regulations.
	(b)  Compliance monitoring under this section must be 
conducted as part of the review of a school district's audit report 
under Section 44.008.
	SECTION 3.  Section 8.051(d), Education Code, is amended to 
read as follows: 
	(d)  Each regional education service center may [shall] 
maintain core services for purchase by school districts and 
campuses.  The core services are:
		(1)  training and assistance in teaching each subject 
area assessed under Section 39.023;
		(2)  training and assistance in providing each program 
that qualifies for a funding allotment under Section 42.151, 
42.152, 42.153, or 42.156;
		(3)  assistance specifically designed for a school 
district rated academically unacceptable under Section 39.072(a) 
or a campus whose performance is considered unacceptable based on 
the indicators adopted under Section 39.051;
		(4)  training and assistance to teachers, 
administrators, members of district boards of trustees, and members 
of site-based decision-making committees;
		(5)  assistance specifically designed for a school 
district that is considered out of compliance with state or federal 
special education requirements, based on the agency's most recent 
compliance review of the district's special education programs;  
and
		(6)  assistance in complying with state laws and rules.                       
	SECTION 4.  Section 31.021(b), Education Code, is amended to 
read as follows:
	(b)  The State Board of Education shall annually set aside 
out of the available school fund of the state an amount sufficient 
for the board, school districts, and open-enrollment charter 
schools to purchase and distribute the necessary textbooks for the 
use of the students of this state for the following school year.  
The board shall determine the amount of the available school fund to 
set aside for the state textbook fund based on:
		(1)  a report by the commissioner issued on July 1 or, 
if that date is a Saturday or Sunday, on the following Monday, 
stating the amount of unobligated money in the fund;
		(2)  [a requirement to provide an allotment to be 
distributed to each district equal to $30 per student in average 
daily attendance, or a greater amount for any year provided by 
appropriation, to be used only to:
			[(A)  provide for the purchase by school districts 
of electronic textbooks or technological equipment that 
contributes to student learning;  and
			[(B)  pay for training educational personnel 
directly involved in student learning in the appropriate use of 
electronic textbooks and for providing for access to technological 
equipment for instructional use;
		[(3)]  the commissioner's estimate, based on textbooks 
selected under Section 31.101 and on attendance reports submitted 
under Section 31.103 by school districts and open-enrollment 
charter schools, of the amount of funds, in addition to funds 
reported under Subdivision (1), that will be necessary for purchase 
and distribution of textbooks for the following school year;  and
		(3) [(4)]  any amount the board determines should be 
set aside for emergency purposes caused by unexpected increases in 
attendance.
	SECTION 5.  Subchapter A, Chapter 32, Education Code, is 
amended by adding Section 32.005 to read as follows:
	Sec. 32.005.  TECHNOLOGY ALLOTMENT.  (a)  Each school 
district is entitled to an allotment of $30 for each student in 
average daily attendance or a different amount for any year 
provided by appropriation.
	(b)  An allotment under this section may be used only to:               
		(1)  provide for the purchase by school districts of 
electronic textbooks or technological equipment that contributes 
to student learning;  and
		(2)  pay for training educational personnel directly 
involved in student learning in the appropriate use of electronic 
textbooks and for providing for access to technological equipment 
for instructional use.
	(c)  The allotment under this section may be paid from:                 
		(1)  the Telecommunications Infrastructure Fund under 
Subchapter C, Chapter 57, Utilities Code;
		(2)  the available school fund; or                                     
		(3)  any other fund that may be used for that purpose 
and that is identified in the General Appropriations Act as the 
source of payment of the allotment.
	SECTION 6.  Section 39.023(e), Education Code, is amended to 
read as follows:
	(e)  Under rules adopted by the State Board of Education, 
every other year, the agency shall release the questions and answer 
keys to each assessment instrument administered under Subsection 
(a), (b), (c), (d), or (l) after the last time the instrument is 
administered for that [a] school year.  To ensure a valid bank of 
questions for use each year, the agency is not required to release a 
question that is being field-tested and was not used to compute the 
student's score on the instrument.  The agency shall also release, 
under board rule, each question that is no longer being 
field-tested and that was not used to compute a student's score.
	SECTION 7.  Section 39.031(a), Education Code, is amended to 
read as follows:
	(a)  The cost of preparing, administering, or grading the 
assessment instruments shall be paid from foundation school fund 
allotments other than [the] funds allotted under Section 42.152, 
and each district shall bear the cost in the same manner described 
for a reduction in allotments under Section 42.253.  [If a district 
does not receive an allotment under Section 42.152, the 
commissioner shall subtract the cost from the district's other 
foundation school fund allotments.]
	SECTION 8.  Section 41.002(a), Education Code, is amended to 
read as follows:
	(a)  A school district may not have a wealth per student that 
exceeds $305,000 or a different amount as provided by 
appropriation.
	SECTION 9.  Section 42.101, Education Code, is amended to 
read as follows:   
	Sec. 42.101.  BASIC ALLOTMENT.  For each student in average 
daily attendance, not including the time students spend each day in 
special education programs in an instructional arrangement other 
than mainstream or career and technology education programs, for 
which an additional allotment is made under Subchapter C, a 
district is entitled to an allotment of $2,537. A different
[greater] amount for any school year may be provided by 
appropriation.
	SECTION 10.  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 subsection [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 11.  Section 42.302(a), Education Code, is amended 
to read as follows:
	(a)  Each school district is guaranteed a specified amount 
per weighted student in state and local funds for each cent of tax 
effort over that required for the district's local fund assignment 
up to the maximum level specified in this subchapter.  The amount of 
state support, subject only to the maximum amount under Section 
42.303, is determined by the formula:
GYA = (GL X WADA X DTR X 100) - LR
where:                                                                        
	"GYA" is the guaranteed yield amount of state funds to be 
allocated to the district;
	"GL" is the dollar amount guaranteed level of state and local 
funds per weighted student per cent of tax effort, which is $27.14 
or a different [greater] amount for any year provided by 
appropriation;
	"WADA" is the number of students in weighted average daily 
attendance, which is calculated by dividing the sum of the school 
district's allotments under Subchapters B and C, less any allotment 
to the district for transportation, any allotment under Section 
42.158, and 50 percent of the adjustment under Section 42.102, by 
the basic allotment for the applicable year;
	"DTR" is the district enrichment tax rate of the school 
district, which is determined by subtracting the amounts specified 
by Subsection (b) from the total amount of maintenance and 
operations taxes collected by the school district for the 
applicable school year and dividing the difference by the quotient 
of the district's taxable value of property as determined under 
Subchapter M, Chapter 403, Government Code, or, if applicable, 
under Section 42.2521, divided by 100;  and
	"LR" is the local revenue, which is determined by multiplying 
"DTR" by the quotient of the district's taxable value of property as 
determined under Subchapter M, Chapter 403, Government Code, or, if 
applicable, under Section 42.2521, divided by 100.
	SECTION 12.  Section 43.001(b), Education Code, is amended 
to read as follows:
	(b)  The available school fund, which shall be apportioned 
annually to each county according to its scholastic population, 
consists of:
		(1)  the interest and dividends arising from any 
securities or funds belonging to the permanent school fund, 
including unrealized interest and dividends;
		(2)  all interest derivable from the proceeds of the 
sale of land set apart for the permanent school fund;
		(3)  all money derived from the lease of land belonging 
to the permanent school fund;
		(4)  one-fourth of all revenue derived from all state 
occupation taxes, exclusive of delinquencies and cost of 
collection;
		(5)  one-fourth of revenue derived from state gasoline 
and special fuels excise taxes as provided by law;  and
		(6)  all other appropriations to the available school 
fund made by the legislature for public school purposes.
	SECTION 13.  Section 264.756(a), Family Code, is amended to 
read as follows: 
	(a)  The department may [shall] develop and implement an 
equitable formula for the funding of local Communities In Schools 
programs.  [The formula may provide for the reduction of funds 
annually contributed by the state to a local program by an amount 
not more than 50 percent of the amount contributed by the state for 
the first year of the program.] The formula must consider the 
financial resources of individual communities and school 
districts.  [Savings accomplished through the implementation of the 
formula may be used to extend services to counties and 
municipalities currently not served by a local program or to extend 
services to counties and municipalities currently served by an 
existing local program.]
	SECTION 14.  Section 57.046, Utilities Code, is amended by 
amending Subsection (a) and adding Subsection (c) to read as 
follows:
	(a)  The board shall use money in the public schools account 
to:      
		(1)  to the extent directed in the General 
Appropriations Act, fund the technology allotment under Section 
32.005, Education Code; and
		(2)  award grants and loans in accordance with this 
subchapter to fund:
			(A) [(1)]  equipment for public schools, 
including computers, printers, computer labs, and video equipment;  
and
			(B) [(2)]  intracampus and intercampus wiring to 
enable those public schools to use the equipment.
	(c)  Section 57.047(d) does not apply to the use of money in 
the public schools account for the purpose specified by Subsection 
(a)(1).
	SECTION 15.  Sections 8.051(a) and 8.121, Education Code, 
are repealed.      
	SECTION 16.  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.