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Amend CSHB 2 in Part A, Article 1, of the bill by inserting 
the following new section, appropriately numbered, and renumbering 
the subsequent sections of Part A, Article 1,  accordingly:
	SECTION 1A.___.  Subchapter B, Chapter 7, Education Code, is 
amended by adding Section 7.032 to read as follows:
	Sec. 7.032.  STUDY OF UNFUNDED STATE EDUCATIONAL MANDATES. 
(a) For purposes of this section:
		(1)  "State educational mandate" means a provision of a 
state statute or rule that requires:
			(A)  school district action to implement the 
provision; and         
			(B)  an expenditure by a school district that 
would not have been required in the absence of the provision.
		(2)  "Unfunded state educational mandate" means a state 
educational mandate for which the legislature has not appropriated 
funds estimated to be sufficient to meet the state's share of 
financing the expenditure.
	(b)  The agency shall conduct a study of unfunded state 
educational mandates.  The study must:
		(1)  identify existing unfunded state educational 
mandates, including any mandates created by a statute enacted by 
the 79th Legislature, Regular Session, 2005, or a rule adopted 
under such a statute; and
		(2)  estimate the cost to school districts of complying 
with each unfunded state educational mandate the agency identifies.
	(c)  Each school district shall cooperate with the agency by 
providing information relating to the district's cost of 
implementing an unfunded state educational mandate.  At the 
commissioner's request, the Legislative Budget Board, state 
auditor, comptroller, and other state officers and agencies shall 
assist the agency in conducting the study and analyzing information 
obtained from school districts.
	(d)  The agency shall:                                                  
		(1)  prepare a report containing the results of the 
study conducted under this section; and
		(2)  deliver the report to the governor, lieutenant 
governor, and each member of the legislature not later than 
December 15, 2006.
	(e)  This section expires January 15, 2007.