Amend CSHB 3646 as follows:                                                  
	(1)  Add the following appropriately numbered SECTIONS and 
renumber subsequent SECTIONS of the bill accordingly:
	SECTION ____.  Section 12.106, Education Code, is amended by 
amending Subsection (a) and adding Subsections (a-1) and (a-2) to 
read as follows:
	(a)  A charter holder is entitled to receive for the 
open-enrollment charter school funding under Chapter 42 equal to 
the greater of:
		(1)  the amount of funding per student in weighted 
average daily attendance, excluding enrichment funding under 
Sections 42.302(a-1)(2) and (3), as they existed on January 1, 
2009, received for the school during the 2008-2009 school year and 
an additional amount of $100 for each student in weighted average 
daily attendance; or
		(2)  the amount of funding per student in weighted 
average daily attendance, excluding enrichment funding under 
Section 42.302(a), to which the charter holder would be entitled 
for the school under Chapter 42 [as] if the school were a school 
district without a tier one local share for purposes of Section 
42.253 and without any local revenue [("LR")] for purposes of 
Section 42.2516 [42.302].
	(a-1)  In determining funding for an open-enrollment charter 
school under Subsection (a)(2), adjustments under Sections 42.102, 
42.103, 42.104, and 42.105 [and the district enrichment tax rate 
("DTR") under Section 42.302] are based on the average adjustment 
[and average district enrichment tax rate] for the state.
	(a-2)  In addition to the funding provided by Subsection (a), 
a charter holder is entitled to receive for the open-enrollment 
charter school enrichment funding under Section 42.302(a) based on 
the state average tax effort.
	SECTION ____.  Subchapter A, Chapter 41, Education Code, is 
amended by adding Section 41.0032 to read as follows:
	Sec. 41.0032.  TOLLING OF ACTION TO ACHIEVE EQUALIZED WEALTH 
LEVEL.  (a)  Notwithstanding any other provision of this chapter, if 
a school district would otherwise be required by this chapter to 
take action to achieve the equalized wealth level for the first time 
for the 2009-2010 or a later school year, the district is not 
required to take that action until the following school year.
	(b)  For purposes of this section, a district is not required 
to take action to achieve the equalized wealth level until the cost 
to the district to purchase attendance credits under Subchapter D 
exceeds the amount to which the district is entitled under Section 
42.2516.
	(c)  The commissioner may adopt rules implementing this 
section as necessary to provide for a district described by this 
section a one-year tolling of the deadlines specified in this 
chapter.
	SECTION ____.  Section 41.121, Education Code, is amended to 
read as follows:
	Sec. 41.121.  AGREEMENT.  The board of trustees of a district 
with a wealth per student that exceeds the equalized wealth level 
may execute an agreement to educate the students of another 
district in a number that, when the weighted average daily 
attendance of the students served is added to the weighted average 
daily attendance of the contracting district, is sufficient, in 
combination with any other actions taken under this chapter, to 
reduce the district's wealth per student to a level that is equal to 
or less than the equalized wealth level.  The agreement is not 
effective unless the commissioner certifies that the transfer of 
weighted average daily attendance will not result in any of the 
contracting districts' wealth per student being greater than the 
equalized wealth level and that the agreement requires an 
expenditure per student in weighted average daily attendance that 
is at least equal to the amount per student in weighted average 
daily attendance required under Section 41.093[, unless it is 
determined by the commissioner that a quality educational program 
can be delivered at a lesser amount.  The commissioner may approve a 
special financial arrangement between districts if that 
arrangement serves the best educational interests of the state].
	SECTION ____.  Section 42.152(c), Education Code, is amended 
to read as follows:
	(c)  Funds allocated under this section shall be used 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 27 [15] percent, may be used 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 40 
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 shall be used 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:
		(1)  to ensure that a sufficient amount of the funds 
allotted under this section are available to supplement 
instructional programs and services, no more than 18 percent of the 
funds allotted under this section may be used to fund disciplinary 
alternative education programs established under Section 37.008;
		(2)  the commissioner may waive the limitations of 
Subdivision (1) upon an annual petition, by a district's board and a 
district's site-based decision making committee, presenting the 
reason for the need to spend supplemental compensatory education 
funds on disciplinary alternative education programs under Section 
37.008, provided that:
			(A)  the district in its petition reports the 
number of students in each grade level, by demographic subgroup, 
not making satisfactory progress under the state's assessment 
system; and
			(B)  the commissioner makes the waiver request 
information available annually to the public on the agency's 
website; and
		(3)  for purposes of this subsection, a program 
specifically designed to serve students at risk of dropping out of 
school, as defined by Section 29.081, is considered to be a program 
supplemental to the regular education program, and a district may 
use its compensatory education allotment for such a program.
	SECTION ____.  Subchapter C, Chapter 42, Education Code, is 
amended by adding Section 42.1541 to read as follows:
	Sec. 42.1541.  INDIRECT COST ALLOTMENTS.  (a)  The State 
Board of Education shall by rule increase the indirect cost 
allotments established under Sections 42.151(h), 42.152(c), 
42.153(b), and 42.154(a-1) and (c) and in effect for the 2008-2009 
school year as necessary to reflect the increased percentage of 
total maintenance and operations funding represented by the basic 
allotment under Section 42.101 as a result of amendment of that 
section by HB 3646, Acts of the 81st Legislature, Regular Session, 
2009.
	(b)  The board shall take the action required by Subsection 
(a) not later than the date that permits the increased indirect cost 
allotments to apply beginning with the 2009-2010 school year.
	(c)  This section expires September 1, 2010.                            
	(2)  On page 19, line 3, strike "Section 41.0011" and 
substitute "Sections 41.0011 and 41.0012".
	(3)  On page 19, between lines 8 and 9, insert the following:                  
	Sec. 41.0012.  MODIFICATION FOR DISTRICTS WITH SPECIAL LAW 
TAXING AUTHORITY.  (a)  This section applies only to a school 
district that imposed a maintenance and operations tax for the 2005 
tax year at a rate greater than $1.50 per $100 of taxable value, as 
permitted by special law.
	(b)  For any district to which this section applies, the 
commissioner shall implement any provision of this chapter that 
refers to a maintenance and operations tax rate equal to the lesser 
of $1 or a district's effective rate less six cents, or that makes a 
substantially similar reference, as if the provision referred to a 
rate equal to the lesser of:
		(1)  the rate equal to the product of the state 
compression percentage multiplied by the maintenance and 
operations tax rate adopted by the district for the 2005 tax year; 
or
		(2)  a district's effective maintenance and operations 
tax rate less six cents.
	(4)  On page 21, strike lines 2-5 and substitute the 
following:              

and operations tax rate, provided that the district adopts a 
maintenance and operations tax rate for that school year at a rate 
at least equal to the rate adopted by the district for the 2008-2009 
school year.  If the district adopts a lower maintenance and 
operations tax rate, the commissioner shall exclude maintenance and 
operations tax revenue resulting from the first six cents by which 
the district's effective maintenance and operations tax rate
exceeds the rate equal to the product of the state compression 
percentage[, as determined under Section 42.2516,] multiplied by 
the maintenance and operations tax rate adopted by the district for 
the 2005 tax year.
	(5)  On page 21, line 8, strike "41.094, 41.097, and 41.098" 
and substitute "41.094 and [,] 41.097[, and 41.098]".
	(6)  On page 22, line 4, strike "42.009 and 42.010" and 
substitute "42.009, 42.010, and 42.011".
	(7)  On page 22, between lines 15 and 16, insert the 
following:              
	Sec. 42.011.  MODIFICATION FOR DISTRICTS WITH SPECIAL LAW 
TAXING AUTHORITY.  (a)  This section applies only to a school 
district that imposed a maintenance and operations tax for the 2005 
tax year at a rate greater than $1.50 per $100 of taxable value, as 
permitted by special law.
	(b)  For any district to which this section applies, the 
commissioner shall implement any provision of this chapter that 
refers to a maintenance and operations tax rate equal to the lesser 
of $1 or a district's effective rate less six cents, or that makes a 
substantially similar reference, as if the provision referred to a 
rate equal to the lesser of:
		(1)  the rate equal to the product of the state 
compression percentage multiplied by the maintenance and 
operations tax rate adopted by the district for the 2005 tax year; 
or
		(2)  a district's effective maintenance and operations 
tax rate less six cents.
	(8)  On page 23, strike lines 1 and 2, and substitute the 
following:         
		(1)  the number of cents that is six cents less than the 
number of cents in the district's effective maintenance and 
operations tax rate; or
	(9)  On page 23, line 9, strike "0.000173" and substitute 
"0.0001723".
	(10)  Strike page 23, line 13, through page 24, line 3, and 
substitute the following:
	Sec. 42.106.  TUITION ALLOTMENT [ADJUSTED PROPERTY VALUE] 
FOR DISTRICTS NOT OFFERING ALL GRADE LEVELS.  A [For purposes of 
this chapter, the taxable value of property of a] school district 
that contracts for students residing in the district to be educated 
in another district under Section 25.039(a) is entitled to receive 
an allotment equal to [adjusted by applying the formula:
[ADPV = DPV - (TN/.015)
[where: ["ADPV" is the district's adjusted taxable value of property; ["DPV" is the taxable value of property in the district for the preceding tax year determined under Subchapter M, Chapter 403, Government Code; and ["TN" is] the total amount of tuition required to be paid by the district under Section 25.039 [for the school year for which the adjustment is made], not to exceed the amount specified by commissioner rule under Section 25.039(b). (11) On page 24, line 19, between "(b-3)," and "(h-1)", insert "(b-4),". (12) On page 25, line 8, between "(b-3)," and "(f-1)", insert ", (b-4),". (13) On page 25, line 8, strike "and". (14) On page 25, line 9, strike "[and (h),]" and substitute "and (h-1) [(h)],". (15) On page 29, between lines 14 and 15, insert the following: (b-4) The amount determined under Subsection (b) for a school district that paid tuition under Section 25.039 during the 2008-2009 school year in accordance with a contract authorized by that section is reduced by the amount of tuition paid during that school year. (16) On page 31, line 2, strike "and". (17) On page 31, line 10, between "funding" and "for", insert "provided by Section 42.2514, as that section existed on January 1, 2009,". (18) On page 31, line 18, between "2009" and the period, insert the following: ; and (5) any amount to which the district is entitled under Section 42.106 (19) On page 37, line 14, between "42.252" and the period, insert ", provided that the district adopts a maintenance and operations tax rate at a rate at least equal to the rate adopted by the district for the 2008-2009 school year". (20) On page 37, line 22, insert the following after the period. If a district adopts a maintenance and operations tax rate that is lower than the rate adopted by the district for the 2008-2009 school year, the district is entitled to the guaranteed level described by this subsection for the first six cents by which the district's effective maintenance and operations tax rate exceeds the rate equal to the product of the state compression percentage multiplied by the maintenance and operations tax rate adopted by the district for the 2005 tax year. (21) On page 46, between lines 25 and 26, insert the following appropriately numbered subdivision and renumber subsequent subdivisions of SECTION 51(a) of the bill accordingly: ( ) Section 41.098; (22) On page 47, between lines 12 and 13, insert the following: (e) Section 40, Chapter 1504 (HB 6), Acts of the 77th Legislature, Regular Session, 2001, is repealed.