Amend CSHB 3646 as follows:                                                  

(1)  On page 24, line 18, between "(a)," and "(b)", insert 	"(a-1),".         
	(2)  On page 24, line 19, between "Subsections" and "(b-3)", 
insert "(a-2),".
	(3)  Strike page 24, line 21, through page 25, line 7, and 
substitute the following:
	(a)  In this section, "state compression percentage" means 
the percentage, as determined by the commissioner in consultation 
with the Legislative Budget Board, of a school district's adopted 
maintenance and operations tax rate for the 2005 tax year that 
serves as the basis for state funding for tax rate reduction under 
this section.  The commissioner, in consultation with the 
Legislative Budget Board, shall determine the state compression 
percentage for each school year based on the percentage by which a 
district is able to reduce the district's maintenance and 
operations tax rate for that year, as compared to the district's 
adopted maintenance and operations tax rate for the 2005 tax year, 
as a result of state funds appropriated for distribution under this 
section for that year from the property tax relief fund established 
under Section 403.109, Government Code, or from another funding 
source available for school district property tax relief.
	(a-1)  For the state fiscal year ending August 31, 2009, the 
state compression percentage is 66.67 percent.  For each subsequent 
state fiscal year, the state compression percentage is the lesser 
of:
		(1)  the percentage determined in accordance with 
Subsection (a); or 
		(2)  the state compression percentage for the preceding 
state fiscal year.
	(a-2)  Not later than March 1 of each year, the commissioner 
shall:   
		(1)  inform school districts of the state compression 
percentage for the following school year; and
		(2)  post the state compression percentage for the 
following school year on the agency's website.  [Subsection (a) 
applies beginning with the state fiscal year ending August 31, 
2009.  For the state fiscal year ending August 31, 2007, the state 
compression percentage is 88.67 percent.  For the state fiscal year 
ending August 31, 2008, the state compression percentage is 66.67 
percent.  This subsection expires September 1, 2009.]