S.B. No. 1353
 
 
 
 
AN ACT
  relating to state funding for school districts, including a school
  district to which an academically unacceptable school district is
  annexed.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 13.054, Education Code, is amended by
  amending Subsections (f) and (g) 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 one 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.
         (g)  In order to assist with the costs of facility
  renovation, repair, and replacement, a [A] district to which
  territory is annexed under this section is entitled to additional
  state aid for five years, beginning with the school year in which
  the annexation occurs [equal to the amount by which the annual debt
  service required to meet the indebtedness incurred by the district
  due to the annexation exceeds the additional amount of state aid
  that results from the adjustment under Subsection (f), if any]. The
  commissioner shall determine the amount of additional state aid
  provided each year by dividing the amount of debt service taxes
  received by the district during the tax year preceding the tax year
  in which the annexation occurs by the number of students enrolled in
  the district immediately preceding the date of annexation, and
  multiplying that result by the number of additional students
  enrolled in the district on September 1 after the date of
  annexation. The commissioner shall provide additional state aid
  under this subsection from funds appropriated for purposes of the
  Foundation School Program and available for that purpose. A
  determination by the commissioner under this subsection is final
  and may not be appealed.  [In determining the amount of annual debt
  service required, the estimated tax levy from applying the
  receiving district's current debt service tax rate, if any, to the
  territory that has been annexed shall be deducted.]
         (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 this 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(f), Education Code, as amended by
  this Act, and Section 13.054(h), Education Code, as added by this
  Act, apply only to an annexation that occurs on or after September
  1, 2017.  An annexation that occurs before that date is governed by
  Section 13.054(f), Education Code, as that section existed at the
  time the annexation occurred.
         SECTION 4.  Section 13.054(g), Education Code, as amended by
  this Act, applies to a school district to which territory is annexed
  under that section on or after July 1, 2016.
         SECTION 5.  The commissioner of education is required to
  implement this Act only if the legislature appropriates money
  specifically for that purpose.  If the legislature does not
  appropriate money specifically for that purpose, the commissioner
  of education may, but is not required to, implement this Act using
  other appropriations available for the purpose.
         SECTION 6.  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, 2017.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1353 passed the Senate on
  May 15, 2017, by the following vote: Yeas 31, Nays 0; and that the
  Senate concurred in House amendments on May 25, 2017, by the
  following vote: Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1353 passed the House, with
  amendments, on May 23, 2017, by the following vote: Yeas 146,
  Nays 0, one present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor