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  By: King of Hemphill, Faircloth H.B. No. 3722
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to funding adjustments for school districts that annex
  academically unacceptable school districts.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 13.054, Education Code, is amended by
  amending Subsection (f) and adding Subsections (h), (i), and (j) to
  read as follows:
         (f)  For five years beginning with the school year in which
  the annexation occurs, a school district shall receive additional
  funding under this subsection or Subsection (h). The amount of
  funding shall be determined [the commissioner shall annually adjust
  the local fund assignment of a district to which territory is
  annexed under this section] by multiplying the lesser of the
  enlarged district's local fund assignment computed under Section
  42.252 or the enlarged district's total cost of Tier I by a
  fraction, the numerator of which is the number of students residing
  in the [district] territory annexed to the receiving district
  preceding the date of the annexation and the denominator of which is
  the number of students residing in the district as enlarged on the
  date of the annexation.
         (h)  The commissioner may authorize a district to receive
  payments provided by Subchapter G, instead of Subsection (f), if
  the commissioner determines that would result in greater payments
  for the district. A determination by the commissioner is final and
  may not be appealed.
         (i)  The funding provided under Subsection (f), (g),
  or (h)
  is in addition to other funding the district receives through other
  provisions of the Education Code, including Chapters 41 and 42.
         (j)  The commissioner may adopt rules as necessary to
  implement this section.
         SECTION 2.  Section 41.002(g), Education Code, is amended to
  read as follows:
         (g)  The wealth per student that a district may have under
  Subsection (e) is adjusted as follows:
  AWPS = WPS X (((EWL/280,000 - 1) X DTR/1.17[1.5]) + 1)
  where:
         "AWPS" is the district's wealth per student;
         "WPS" is the district's wealth per student determined under
  Subsection (e);
         "EWL" is the equalized wealth level; and
         "DTR" is the district's adopted maintenance and operations
  tax rate for the current school year.
         SECTION 3.  Section 13.054, Education Code, as amended by
  this Act, applies to annexations that occur under Section 13.054
  after September 1, 2017.
         SECTION 4.  This Act takes effect September 1, 2017.