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	Amend CSHB 636 as follows:                                                   
	(1)  On page 1, line 6, strike "(c) and (d)" and substitute 
"(c), (d), (d-1), and (e)".
	(2)  On page 1, line 10, after the period, insert the 
following:             
	Funds available to a service area in which there is no 
eligible adult basic education service provider providing student 
contact hours shall be distributed proportionally by the agency to 
other eligible adult basic education service providers in the 
county.  If there are no other eligible adult basic education 
service providers in the county, the funds allocated for that 
county shall be distributed proportionally by the agency throughout 
the state to eligible adult basic education service providers by 
service area.
	(3)  On page 1, line 11, strike "(d) Subsection (c) applies 
only to the" and substitute the following:
	(d)  The agency by rule shall establish a method by which 
adult basic education service providers are paid on a student 
contact hour and student performance and completion basis.  In 
adopting a method under this subsection, the agency shall require 
that the total number of eligible student contact hours must be 
based on the student's level of performance on a designated 
literacy or basic skills test so that the number of eligible student 
contact hours funded is increased for a student with a lower 
performance level.
	(d-1)  Adult basic education service providers providing 
student contact hours for the 2008-2009 school year are entitled to 
at least the same level of student contact hours in the 2009-2010 
and 2010-2011 school years as the service provider provided in the 
2008-2009 school year.  This subsection expires September 1, 2011.
	(e)  The                                                                
	(4)  On page 1, line 17, strike "2008-2009 school year" and 
substitute the following:
	preceding school year shall be allocated to new student 
contact hours.  The agency may not set the student contact hour rate 
for new student contact hours at a rate higher than the average rate 
for student contact hours in the preceding school year