84R2428 GCB-D
 
  By: Watson S.B. No. 243
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the cost of education adjustment.
         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 42.102, Education Code, is amended by
  amending Subsection (a) and adding Subsection (c) to read as
  follows:
         (a)  The basic allotment for each school district is adjusted
  to reflect the [geographic variation in known resource costs and]
  costs of education for [due to factors beyond the control of] the
  school district using the updated cost of education index provided
  under Subsection (c).
         (c)  Based on a statistical analysis conducted by the
  Legislative Budget Board to determine for each school district the
  current geographic variation in known resource costs and costs of
  education due to factors beyond the control of the district, the
  commissioner shall update the cost of education index used for
  purposes of this section during the 2014-2015 school year.  The
  updated index shall be used for purposes of this section beginning
  with the 2015-2016 school year.  Subsequently, the commissioner
  periodically may request more current statistical analysis from the
  Legislative Budget Board and further update as needed the cost of
  education index used for purposes of this section.
         SECTION 3.  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 4.  Sections 42.102(b) and 42.2517, Education Code,
  are repealed.
         SECTION 5.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2015.