84R20786 CAE/JSL-D
 
  By: Aycock, Otto, Márquez, et al. H.B. No. 1759
 
  Substitute the following for H.B. No. 1759:
 
  By:  Aycock C.S.H.B. No. 1759
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the public school finance system.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 7.062(c), Education Code, is amended to
  read as follows:
         (c)  Except as otherwise provided by this subsection, if the
  commissioner certifies that the amount appropriated for a state
  fiscal year for purposes of Subchapters A and B, Chapter 46, exceeds
  the amount to which school districts are entitled under those
  subchapters for that year, the commissioner shall use the excess
  funds, in an amount not to exceed $20 million in any state fiscal
  year, for the purpose of making grants under this section. The use
  of excess funds under this subsection has priority over any
  provision of Chapter 42 that permits or directs the use of excess
  foundation school program funds, including Sections [42.2517,]
  42.2521, 42.2522, and 42.2531. The commissioner is required to use
  excess funds as provided by this subsection only if the
  commissioner is not required to reduce the total amount of state
  funds allocated to school districts under Section 42.253(h).
         SECTION 2.  Section 11.158(a), Education Code, is amended to
  read as follows:
         (a)  The board of trustees of an independent school district
  may require payment of:
               (1)  a fee for materials used in any program in which
  the resultant product in excess of minimum requirements becomes, at
  the student's option, the personal property of the student, if the
  fee does not exceed the cost of materials;
               (2)  membership dues in student organizations or clubs
  and admission fees or charges for attending extracurricular
  activities, if membership or attendance is voluntary;
               (3)  a security deposit for the return of materials,
  supplies, or equipment;
               (4)  a fee for personal physical education and athletic
  equipment and apparel, although any student may provide the
  student's own equipment or apparel if it meets reasonable
  requirements and standards relating to health and safety
  established by the board;
               (5)  a fee for items of personal use or products that a
  student may purchase at the student's option, such as student
  publications, class rings, annuals, and graduation announcements;
               (6)  a fee specifically permitted by any other statute;
               (7)  a fee for an authorized voluntary student health
  and accident benefit plan;
               (8)  a reasonable fee, not to exceed the actual annual
  maintenance cost, for the use of musical instruments and uniforms
  owned or rented by the district;
               (9)  a fee for items of personal apparel that become the
  property of the student and that are used in extracurricular
  activities;
               (10)  a parking fee or a fee for an identification card;
               (11)  a fee for a driver training course, not to exceed
  the actual district cost per student in the program for the current
  school year;
               (12)  a fee for a course offered for credit that
  requires the use of facilities not available on the school premises
  or the employment of an educator who is not part of the school's
  regular staff, if participation in the course is at the student's
  option;
               (13)  a fee for a course offered during summer school,
  except that the board may charge a fee for a course required for
  graduation only if the course is also offered without a fee during
  the regular school year;
               (14)  a reasonable fee for transportation of a student
  who lives within two miles of the school the student attends to and
  from that school[, except that the board may not charge a fee for
  transportation for which the school district receives funds under
  Section 42.155(d)]; or
               (15)  a reasonable fee, not to exceed $50, for costs
  associated with an educational program offered outside of regular
  school hours through which a student who was absent from class
  receives instruction voluntarily for the purpose of making up the
  missed instruction and meeting the level of attendance required
  under Section 25.092[; or
               [(16)     if the district does not receive any funds under
  Section 42.155 and does not participate in a county transportation
  system for which an allotment is provided under Section 42.155(i),
  a reasonable fee for the transportation of a student to and from the
  school the student attends].
         SECTION 3.  Section 12.106(a-1), Education Code, is amended
  to read as follows:
         (a-1)  In determining funding for an open-enrollment charter
  school under Subsection (a), adjustments under Sections [42.102,]
  42.103, 42.104, and 42.105 are based on the average adjustment for
  the state.
         SECTION 4.  Section 13.054, Education Code, is amended by
  adding Subsection (f-1) to read as follows:
         (f-1)  For a school district to which territory is annexed
  under this section and that is required to take action under Chapter
  41 to reduce its wealth per student to the equalized wealth level,
  the commissioner may provide the value of the adjustment described
  by Subsection (f) in the form of a credit against the total amount
  required under Section 41.093 for the district to purchase
  attendance credits.
         SECTION 5.  Section 29.014(d), Education Code, is amended to
  read as follows:
         (d)  The basic allotment for a student enrolled in a district
  to which this section applies is adjusted by[:
               [(1)     the cost of education adjustment under Section
  42.102 for the school district in which the district is
  geographically located; and
               [(2)]  the weight for a homebound student under Section
  42.151(a).
         SECTION 6.  Section 29.918(a), Education Code, is amended to
  read as follows:
         (a)  Notwithstanding Section [39.234 or] 42.152, a school
  district or open-enrollment charter school with a high dropout
  rate, as determined by the commissioner, must submit a plan to the
  commissioner describing the manner in which the district or charter
  school intends to use the compensatory education allotment under
  Section 42.152 [and the high school allotment under Section 42.160]
  for developing and implementing research-based strategies for
  dropout prevention.  The district or charter school shall submit
  the plan not later than December 1 of each school year preceding the
  school year in which the district or charter school will receive the
  compensatory education allotment or high school allotment to which
  the plan applies.
         SECTION 7.  Subchapter C, Chapter 30, Education Code, is
  amended by adding Section 30.0561 to read as follows:
         Sec. 30.0561.  TRANSPORTATION ALLOTMENT. The Texas School
  for the Deaf is entitled to a transportation allotment paid from the
  foundation school fund. The commissioner shall determine the
  appropriate allotment.
         SECTION 8.  Section 30.087(c), Education Code, is amended to
  read as follows:
         (c)  A school district may receive an allotment paid from the
  foundation school fund for transportation of students
  participating in a regional day school program, as determined by
  the commissioner [in the same manner as an allotment for the
  transportation of other special education students].
         SECTION 9.  Section 34.007, Education Code, is amended by
  adding Subsection (c) to read as follows:
         (c)  A county transportation system is not entitled to
  receive funding for transportation costs directly from the state.  
  Funding for a county transportation system is provided by each
  school district participating in the county transportation system
  in accordance with the terms of the interlocal contract under
  Chapter 791, Government Code, under which the county provides
  transportation services for the participating districts.
         SECTION 10.  Section 39.0233(a), Education Code, is amended
  to read as follows:
         (a)  The agency, in coordination with the Texas Higher
  Education Coordinating Board, shall adopt a series of questions to
  be included in an end-of-course assessment instrument administered
  under Section 39.023(c) to be used for purposes of Section 51.3062.  
  The questions adopted under this subsection must be developed in a
  manner consistent with any college readiness standards adopted
  under Section [Sections 39.233 and] 51.3062.
         SECTION 11.  Section 41.002(a), Education Code, is amended
  to read as follows:
         (a)  A school district may not have a wealth per student that
  exceeds:
               (1)  the wealth per student that generates the amount
  of maintenance and operations tax revenue per weighted student
  available to a district with maintenance and operations tax revenue
  per cent of tax effort equal to the maximum amount provided per cent
  under Section 42.101(a) or (b), for the district's maintenance and
  operations tax effort equal to or less than the rate equal to the
  sum of 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
  and any additional tax effort included in calculating the
  district's compressed tax rate under Section 42.101(a-1);
               (2)  the wealth per student that generates the amount
  of maintenance and operations tax revenue per weighted student
  available to the Austin Independent School District, as determined
  by the commissioner in cooperation with the Legislative Budget
  Board, for the first six cents by which the district's 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, subject to Section 41.093(b-1);
  or
               (3)  $319,500, for the district's maintenance and
  operations tax effort that exceeds the first six cents by which the
  district's maintenance and operations tax effort 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,
  less any additional tax effort included in calculating the
  district's compressed tax rate under Section 42.101(a-1).
         SECTION 12.  Section 41.034(a), Education Code, is amended
  to read as follows:
         (a)  For the first and second school years after creation of
  a consolidated district under this subchapter, the commissioner
  shall adjust allotments to the consolidated district to the extent
  necessary to preserve the effects of an adjustment under Section
  [42.102,] 42.103[,] or 42.105 to which either of the consolidating
  districts would have been entitled but for the consolidation.
         SECTION 13.  Section 41.099(a), Education Code, is amended
  to read as follows:
         (a)  Sections [41.002(e),] 41.094, 41.097, and 41.098 apply
  only to a district that:
               (1)  executes an agreement to purchase all attendance
  credits necessary to reduce the district's wealth per student to
  the equalized wealth level;
               (2)  executes an agreement to purchase attendance
  credits and an agreement under Subchapter E to contract for the
  education of nonresident students who transfer to and are educated
  in the district but who are not charged tuition; or
               (3)  executes an agreement under Subchapter E to
  contract for the education of nonresident students:
                     (A)  to an extent that does not provide more than
  10 percent of the reduction in wealth per student required for the
  district to achieve a wealth per student that is equal to or less
  than the equalized wealth level; and
                     (B)  under which all revenue paid by the district
  to other districts, in excess of the reduction in state aid that
  results from counting the weighted average daily attendance of the
  students served in the contracting district, is required to be used
  for funding a consortium of at least three districts in a county
  with a population of less than 40,000 that is formed to support a
  technology initiative.
         SECTION 14.  Section 41.257, Education Code, is amended to
  read as follows:
         Sec. 41.257.  APPLICATION OF SMALL AND SPARSE ADJUSTMENTS
  [AND TRANSPORTATION ALLOTMENT]. The budget of the consolidated
  district must apply the benefit of the adjustment or allotment to
  the schools of the consolidating district to which Section 42.103
  or[,] 42.105[, or 42.155] would have applied in the event that the
  consolidated district still qualifies as a small or sparse
  district.
         SECTION 15.  Section 42.007(c), Education Code, is amended
  to read as follows:
         (c)  The funding elements must include:
               (1)  a basic allotment for the purposes of Section
  42.101 that, when combined with the guaranteed yield component
  provided by Subchapter F, represents the cost per student of a
  regular education program that meets all mandates of law and
  regulation;
               (2)  [adjustments designed to reflect the variation in
  known resource costs and costs of education beyond the control of
  school districts;
               [(3)]  appropriate program cost differentials and
  other funding elements for the programs authorized under Subchapter
  C, with the program funding level expressed as dollar amounts and as
  weights applied to the adjusted basic allotment for the appropriate
  year;
               (3) [(4)]  the maximum guaranteed level of qualified
  state and local funds per student for the purposes of Subchapter F;
               (4) [(5)]  the enrichment [and facilities] tax rate
  under Subchapter F;
               (5) [(6)]  the computation of students in weighted
  average daily attendance under Section 42.302; and
               (6) [(7)]  the amount to be appropriated for the school
  facilities assistance program under Chapter 46.
         SECTION 16.  Section 42.101, Education Code, is amended by
  adding Subsections (a-1) and (a-2) to read as follows:
         (a-1)  Notwithstanding Subsection (a), for a school district
  that adopted a maintenance and operations tax rate for the 2005 tax
  year below the maximum rate permitted by law for that year, the
  district's compressed tax rate ("DCR") includes the portion of the
  district's current maintenance and operations tax rate in excess of
  the first six cents above the district's compressed tax rate, as
  defined by Subsection (a), until the district's compressed tax rate
  computed in accordance with this subsection is equal to the state
  maximum compressed tax rate ("MCR").
         (a-2)  Subsection (a-1) applies beginning with the 2017-2018
  school year.  For the 2015-2016 and 2016-2017 school years, the
  board of trustees of a school district that adopted a maintenance
  and operations tax rate for the 2005 tax year below the maximum rate
  permitted by law for that year may choose to apply Subsection (a-1)
  to the calculation of the district's compressed tax rate ("DCR"). A
  board of trustees that chooses to apply Subsection (a-1) must
  notify the commissioner of the decision in writing not later than
  September 1 of the affected school year. This subsection expires
  September 1, 2018.
         SECTION 17.  Section 42.103, Education Code, is amended to
  read as follows:
         Sec. 42.103.  ADJUSTMENT BASED ON DISTRICT SIZE, INCLUDING 
  SMALL AND MID-SIZE [MID-SIZED] DISTRICT ADJUSTMENTS [ADJUSTMENT].
  (a) The basic allotment for [certain small and mid-sized]
  districts, including certain small and mid-size districts, is
  adjusted in accordance with this section. In this section:
               (1)  ["AA" is the district's adjusted allotment per
  student;
               [(2)]  "ADA" is the number of students in average daily
  attendance for which the district is entitled to an allotment under
  Section 42.101;
               (2)  "SDA" is the amount of a small-size district's per
  student adjustment to the allotment under Section 42.101, as
  determined under Subsection (b) or (c);
               (3)  "MSA" is the amount of a mid-size district's per
  student adjustment to the allotment under Section 42.101,
  determined under Subsection (d);
               (4)  "DTR" is the district's tax rate, which is equal to
  the district's compressed tax rate used to calculate the district's
  allotment under Section 42.101, including any additional tax effort
  included in calculating the district's compressed tax rate under
  Section 42.101(a-1); 
               (5)  "MCR" is the state maximum compressed tax rate,
  which is the product of the state compression percentage, as
  determined under Section 42.2516, multiplied by $1.50;
               (6)  "SDABA" is the amount used in determining a
  small-size district's adjustment under this section that results
  from the following formula:
  ($5,040 X (DTR/MCR)) + $125;
               (7)  "MSABA" is the amount used in determining a
  mid-size district's adjustment under this section that results from
  the following formula:
  ($5,040 X (DTR/MCR)) X MSPCT; and
               (8)  "MSPCT" is the percentage used to calculate a
  mid-size adjustment, as provided by Subsection (g)
               [(3)     "ABA" is the adjusted basic allotment determined
  under Section 42.102].
         (b)  The basic allotment of a small-size school district that
  contains at least 300 square miles and has not more than 1,600
  students in average daily attendance is adjusted by adding to the
  allotment the amount determined by applying the formula:
  SDA [AA] = ((1 + ((1,600 - ADA) X .0004)) X SDABA) - SDABA [ABA]
         (c)  The basic allotment of a small-size school district that
  contains less than 300 square miles and has not more than 1,600
  students in average daily attendance is adjusted by adding to the
  allotment the amount determined by applying the formula:
  SDA [AA] = ((1 + ((1,600 - ADA) X .00025)) X SDABA) - SDABA [ABA]
         (d)  The basic allotment of a mid-size school district that
  offers a kindergarten through grade 12 program and has less than
  5,000 students in average daily attendance is adjusted by adding to
  the allotment the amount determined by applying the formula, of the
  following formulas, that results in the greatest adjustment 
  [adjusted allotment]:
               (1)  the formula in Subsection (b) or (c) for which the
  district is eligible; or
               (2)  MSA [AA] = ((1 + ((5,000 - ADA) X .000025)) X
  MSABA)- MSABA [ABA].
         (e)  The adjusted allotment of a school district that is not
  eligible for an adjustment under Subsection (b), (c), or (d) is
  equal to the value of the basic allotment as determined under
  Section 42.101. 
         (f)  The adjusted allotment of a school district that is
  eligible for an adjustment under Subsection (b), (c), or (d) is
  equal to the sum of the value of the basic allotment as determined
  under Section 42.101 and the greatest adjustment under this section
  for which the district is eligible.
         (g)  For the 2015-2016 school year, "MSPCT" is equal to 0.75.  
  For each subsequent school year, "MSPCT" is equal to the value used
  for the preceding school year less 0.05, until "MSPCT" is equal to
  0.
         SECTION 18.  Section 42.104, Education Code, is amended to
  read as follows:
         Sec. 42.104.  USE OF SIZE ADJUSTMENT, INCLUDING SMALL AND
  MID-SIZE [OR MID-SIZED] DISTRICT ADJUSTMENT, IN CALCULATING
  SPECIAL ALLOTMENTS. In determining the amount of a special
  allotment under Subchapter C [for a district to which Section
  42.103 applies], a district's adjusted basic allotment is
  considered to be the district's adjusted allotment determined under
  Section 42.103.
         SECTION 19.  Section 42.105, Education Code, as effective
  September 1, 2015, is amended to read as follows:
         Sec. 42.105.  SPARSITY ADJUSTMENT. Notwithstanding Sections
  42.101[, 42.102,] and 42.103, a school district that has fewer than
  130 students in average daily attendance shall be provided an
  adjusted basic allotment on the basis of 130 students in average
  daily attendance if it offers a kindergarten through grade 12
  program and has preceding or current year's average daily
  attendance of at least 90 students or is 30 miles or more by bus
  route from the nearest high school district. A district offering a
  kindergarten through grade 8 program whose preceding or current
  year's average daily attendance was at least 50 students or which is
  30 miles or more by bus route from the nearest high school district
  shall be provided an adjusted basic allotment on the basis of 75
  students in average daily attendance. An average daily attendance
  of 60 students shall be the basis of providing the adjusted basic
  allotment if a district offers a kindergarten through grade 6
  program and has preceding or current year's average daily
  attendance of at least 40 students or is 30 miles or more by bus
  route from the nearest high school district.
         SECTION 20.  Section 42.151(h), Education Code, is amended
  to read as follows:
         (h)  Funds allocated under this section, other than an
  indirect cost allotment established under State Board of Education
  rule or amounts spent for the transportation of special education
  students, must be used in the special education program under
  Subchapter A, Chapter 29.
         SECTION 21.  Sections 42.154(a) and (c), Education Code, are
  amended to read as follows:
         (a)  For each full-time equivalent student in average daily
  attendance in an approved career and technology education program
  in grades eight [nine] through 12 or in career and technology
  education programs for students with disabilities in grades seven
  through 12, a district is entitled to:
               (1)  an annual allotment equal to the adjusted basic
  allotment multiplied by a weight of 1.35; and
               (2)  $50, if the student is enrolled in:
                     (A)  two or more advanced career and technology
  education classes for a total of three or more credits; or
                     (B)  an advanced course as part of a tech-prep
  program under Subchapter T, Chapter 61.
         (c)  Funds allocated under this section, other than an
  indirect cost allotment established under State Board of Education
  rule or amounts spent for the transportation of career and
  technology education students, must be used in providing career and
  technology education programs in grades eight [nine] through 12 or
  career and technology education programs for students with
  disabilities in grades seven through 12 under Sections 29.182,
  29.183, and 29.184.
         SECTION 22.  Section 42.1541(a), Education Code, is amended
  to read as follows:
         (a)  For the 2015-2016 and subsequent school years, the [The]
  State Board of Education shall by rule revise [increase] the
  indirect cost allotments established under Sections 42.151(h),
  42.152(c), 42.153(b), and 42.154(c) [42.154(a-1) and (c)] and in
  effect for the 2014-2015 [2010-2011] school year to reflect any
  increase in the percentage of total maintenance and operations
  funding represented by the basic allotment [in proportion to the
  average percentage reduction in total state and local maintenance
  and operations revenue provided under this chapter for the
  2011-2012 school year] as a result of [S.B. Nos. 1 and 2,] Acts of
  the 84th [82nd] Legislature, Regular [1st Called] Session, 2015 
  [2011].
         SECTION 23.  Section 42.156(a), Education Code, is amended
  to read as follows:
         (a)  For each identified student a school district serves in
  a program for gifted and talented students that the district
  certifies to the commissioner as complying with Subchapter D,
  Chapter 29, a district is entitled to an annual allotment equal to
  the district's adjusted basic allotment as determined under
  [Section 42.102 or] Section 42.103, [as applicable,] multiplied by
  .12 for each school year or a greater amount provided by
  appropriation.
         SECTION 24.  Section 42.2516, Education Code, as effective
  until September 1, 2017, is amended by amending Subsection (b-1)
  and adding Subsection (c-1) to read as follows:
         (b-1)  The amount determined for a school district under
  Subsection (b) is increased or reduced as follows:
               (1)  if for any school year the district is entitled to
  a greater allotment under Section [42.155 or] 42.158 or more
  additional state aid under Section 42.2515 than the allotment or
  additional state aid to which the district was entitled under
  Section [42.155,] 42.158[,] or 42.2515, as applicable, for the
  2009-2010 school year, the district's entitlement under Subsection
  (b) is increased by an amount equal to the difference between the
  amount to which the district is entitled under Section [42.155,]
  42.158[,] or 42.2515, as applicable, for that school year and the
  amount to which the district was entitled under the applicable
  section for the 2009-2010 school year; and
               (2)  if for any school year the district is not entitled
  to an allotment under Section [42.155 or] 42.158 or additional
  state aid under Section 42.2515 or is entitled to a lesser allotment
  or less additional state aid under the applicable section than the
  allotment or additional state aid to which the district was
  entitled under the applicable section for the 2009-2010 school
  year, the district's entitlement under Subsection (b) is reduced by
  an amount equal to the difference between the amount to which the
  district was entitled under Section [42.155,] 42.158[,] or 42.2515,
  as applicable, for the 2009-2010 school year and the amount to which
  the district is entitled under the applicable section for the
  current school year.
         (c-1)  Revenue generated by the portion of a district's
  maintenance and operations tax rate included in calculating the
  district's compressed tax rate under Section 42.101(a-1) and local
  share under Section 42.252(a-1) is included in determining the
  amount to which a district is entitled under this section.  This
  subsection expires September 1, 2017.
         SECTION 25.  Section 42.252, Education Code, is amended by
  adding Subsection (a-1) to read as follows:
         (a-1)  Notwithstanding Subsection (a), for a school district
  that adopted a maintenance and operations tax rate for the 2005 tax
  year below the maximum rate permitted by law for that year, the
  district's tax rate ("TR") includes the tax effort included in
  calculating the district's compressed tax rate under Section
  42.101(a-1).
         SECTION 26.  Subchapter E, Chapter 42, Education Code, is
  amended by adding Section 42.2529 to read as follows:
         Sec. 42.2529.  TRANSITIONAL FUNDING. (a)  This section
  applies to a school district that, as a result of the changes in law
  made by H.B. No. 1759, Acts of the 84th Legislature, Regular
  Session, 2015, is entitled to an amount of state and local funding
  per student in weighted average daily attendance for maintenance
  and operations for a school year that is less than the amount of
  state and local funding per student in weighted average daily
  attendance for maintenance and operations to which the district
  would have been entitled for the school year under Chapter 41 and
  this chapter, as those chapters existed on January 1, 2015.
         (b)  Subject to Subsection (d), a school district to which
  this section applies is entitled to transitional funding under this
  section in an amount equal to the difference between:
               (1)  the amount of maintenance and operations revenue
  to which the district is entitled for a school year after the
  changes in law made by H.B. No. 1759, Acts of the 84th Legislature,
  Regular Session, 2015, take effect; and 
               (2)  the amount of maintenance and operations revenue
  to which the district would have been entitled for the same school
  year under Chapter 41 and this chapter, as those chapters existed on
  January 1, 2015.
         (c)  For the purpose of determining under Subsection (b)(2)
  the amount to which a district would have been entitled under
  Section 42.155, as that section existed on January 1, 2015, the
  commissioner shall use the amount of the district's transportation
  allotment for the 2014-2015 school year.
         (d)  The amount of transitional funding provided under this
  section may not exceed $75.7 million for the 2015-2016 school year
  and $81.2 million for the 2016-2017 school year.  If the total
  amount of transitional funding to which districts are entitled
  under this section for a school year exceeds the amount specified by
  this subsection, the commissioner shall rank districts by state and
  local maintenance and operations revenue per cent per student in
  weighted average daily attendance and shall provide transitional
  funding under this section to districts in ascending order,
  beginning with the district with the lowest maintenance and
  operations revenue per cent per student in weighted average daily
  attendance, until no remaining funds are available for purposes of
  this section.
         (e)  The commissioner may adopt rules to implement this
  section.
         (f)  A determination of the commissioner under this section
  is final and may not be appealed.
         (g)  This section expires September 1, 2017.
         SECTION 27.  Section 42.261(a), Education Code, is amended
  to read as follows:
         (a)  Funds appropriated by the legislature for a tax year for
  the purpose of reducing a school district's maintenance and
  operations tax rate and providing state aid under Section 42.2516:
               (1)  [are not excess funds for purposes of Section
  42.2517;
               [(2)]  are not available for purposes of Section
  42.2521 or 42.2522;
               (2) [(3)]  may not be used for purposes of Chapter 46;
  and
               (3) [(4)]  may not be provided by the commissioner to a
  school district for a purpose other than reduction of the
  district's maintenance and operations tax rate.
         SECTION 28.  Sections 42.302(a) and (a-1), Education Code,
  are amended to read as follows:
         (a)  Each school district is guaranteed a specified amount
  per weighted student in state and local funds for each cent of tax
  effort over that required for the district's local fund assignment
  up to the maximum level specified in this subchapter.  The amount
  of state support, subject only to the maximum amount under Section
  42.303, is determined by the formula:
  GYA = (GL X WADA X DTR X 100) - LR
  where:
         "GYA" is the guaranteed yield amount of state funds to be
  allocated to the district;
         "GL" is the dollar amount guaranteed level of state and local
  funds per weighted student per cent of tax effort, which is an
  amount described by Subsection (a-1) or a greater amount for any
  year provided by appropriation;
         "WADA" is the number of students in weighted average daily
  attendance, which is calculated by dividing the sum of the school
  district's allotments under Subchapters B and C, less any allotment
  [to the district for transportation, any allotment] under Section
  42.158 [or 42.160, and 50 percent of the adjustment under Section
  42.102], by the basic allotment for the applicable year;
         "DTR" is the district enrichment tax rate of the school
  district, which is determined by subtracting the amounts specified
  by Subsection (b) from the total amount of maintenance and
  operations taxes collected by the school district for the
  applicable school year and dividing the difference by the quotient
  of the district's taxable value of property as determined under
  Subchapter M, Chapter 403, Government Code, or, if applicable,
  under Section 42.2521, divided by 100; and
         "LR" is the local revenue, which is determined by multiplying
  "DTR" by the quotient of the district's taxable value of property as
  determined under Subchapter M, Chapter 403, Government Code, or, if
  applicable, under Section 42.2521, divided by 100.
         (a-1)  [In this section, "wealth per student" has the meaning
  assigned by Section 41.001.]  For purposes of Subsection (a), the
  dollar amount guaranteed level of state and local funds per
  weighted student per cent of tax effort ("GL") for a school district
  is:
               (1)  the greater of  the amount of district tax revenue
  per weighted student per cent of tax effort that would be available
  to the Austin Independent School District, as determined by the
  commissioner in cooperation with the Legislative Budget Board, if
  the reduction of the limitation on tax increases as provided by
  Section 11.26(a-1), (a-2), or (a-3), Tax Code, did not apply, or the
  amount of district tax revenue per weighted student per cent of tax
  effort used for purposes of this subdivision in the preceding
  school year, for the first six cents by which the district's
  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; and
               (2)  $31.95, for the district's maintenance and
  operations tax effort that exceeds the amount of tax effort
  described by Subdivision (1), less any additional tax effort
  included in calculating the district's compressed tax rate under
  Section 42.101(a-1).
         SECTION 29.  Section 322.008(b), Government Code, is amended
  to read as follows:
         (b)  The general appropriations bill may include for
  purposes of information the funding elements computed by the
  Legislative Budget Board under Section 42.007, Education Code[,
  excluding the values for each school district calculated under
  Section 42.007(c)(2), Education Code]. If the funding elements are
  included, the funding elements under Section 42.007(c)(2) 
  [42.007(c)(3)], Education Code, shall be reported in dollar amounts
  per pupil.
         SECTION 30.  Section 825.405(b), Government Code, is amended
  to read as follows:
         (b)  For purposes of this section:
               (1)  the statutory minimum salary for certain school
  personnel under Section 21.402, Education Code, is the salary
  provided by that section multiplied by the cost of education index
  adjustment adopted by the foundation school fund budget committee
  and contained in Chapter 203, Title 19, Texas Administrative Code,
  as that chapter existed on March 26, 1997, applicable [under
  Section 42.102, Education Code,] to the district in which the
  member is employed; and
               (2)  the statutory minimum salary for members who would
  have been entitled to the minimum salary for certain school
  personnel under former Section 16.056, Education Code, as that
  section existed on January 1, 1995, is a minimum salary computed in
  the same manner as the minimum salary for certain school personnel
  under Section 21.402, Education Code, multiplied by the cost of
  education index adjustment adopted by the foundation school fund
  budget committee and contained in Chapter 203, Title 19, Texas
  Administrative Code, as that chapter existed on March 26, 1997,
  applicable [under Section 42.102, Education Code,] to the district
  in which the member is employed.
         SECTION 31.  The following provisions of the Education Code
  are repealed:
               (1)  Section 29.097(g);
               (2)  Section 29.098(e);
               (3)  Section 34.002(c);
               (4)  Section 39.233;
               (5)  Section 39.234;
               (6)  Sections 41.002(e), (f), and (g);
               (7)  Section 42.102;
               (8)  Section 42.1541(c);
               (9)  Section 42.155;
               (10)  Section 42.160;
               (11)  Section 42.2513; and
               (12)  Section 42.2517.
         SECTION 32.  This Act takes effect September 1, 2015.