Amend CSHB 3461 as follows:
(1)  On page 5, between lines 1 and 2, insert the following:
(c)  Notwithstanding any other provision of this subchapter, the Texas Higher Education Coordinating Board shall allocate state and federal adult education program funds, other than federal funds set aside for state administration, special projects, and staff development to each county based on need, performance and efficiency.
Sec. 61.97951. SERVICE PROVIDER CONTRACTS: COMPETITIVE PROCUREMENT REQUIREMENT. (a) The Texas Higher Education Coordinating Board shall use a competitive procurement process to award a contract to a service provider of an adult education program.
(b)  The board shall adopt rules to administer this section.
(2)  On page 10, strike line 10 and substitute the following:
SECTION 3.02.  (a) The change in law made by Section 61.97951(a), Education Code, as added by this Act, applies only to a contract entered into on or after September 1, 2012.
(b)  Not later than August 31, 2012, the Texas Higher Education Coordinating Board shall adopt rules to provide for a competitive procurement process to award contracts to service providers of adult education programs as provided by Section 61.97951, Education Code, as added this Act.
SECTION 3.03.  (a) Except as provided by Subsection (b) of this section, this Act takes effect September 1, 2011.
(b)  Sections 61.9795(c) and 61.97951(a), Education Code, as added by this Act, take effect September 1, 2012.