Amend HB 3646, on third reading, as follows:                                 
	(1)  Add the following appropriately numbered SECTION and 
renumber existing SECTIONS of the bill accordingly:
	SECTION ____.  Section 41.002(e), Education Code, is amended 
to read as follows:
	(e)  Notwithstanding Subsection (a), [and except as provided 
by Subsection (g),] in accordance with a determination of the 
commissioner, the wealth per student that a school district may 
have after exercising an option under Section 41.003(2) or (3) may 
not be less than the amount needed to maintain state and local 
revenue in an amount equal to state and local revenue per weighted 
student for maintenance and operation of the district for the 
1992-1993 school year less the district's current year distribution 
per weighted student from the available school fund, other than 
amounts distributed under Chapter 31, if the district imposes an 
effective tax rate for maintenance and operation of the district 
equal to the greater of the district's current tax rate or $1.50 on 
the $100 valuation of taxable property.
	(2)  Strike the SECTION of the bill amending Section 
42.152(c), Education Code, and substitute the following 
appropriately numbered SECTION:
	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 45 [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.