Amend CSHB 3 (senate committee report) in SECTION 1.025 of the bill, in transferred, redesignated, and amended Section 48.105, Education Code (page 19), as follows:

(1)  On line 34, strike "[(a)]" and substitute "(a)".

(2)  Strike lines 47 through 58 and substitute the following:

(b)  At least 52 percent of the funds [Funds] allocated under this section[, other than an indirect cost allotment established under State Board of Education rule,] must be used in providing bilingual education or special language programs under Subchapter B, Chapter 29[, and must be accounted for under existing agency reporting and auditing procedures].

[(c)]  A district's bilingual education or special language allocation may be used only for program and student evaluation, instructional materials and equipment, staff development, supplemental staff expenses, salary supplements for teachers, incremental costs associated with providing smaller class sizes, and other supplies required for quality instruction [and smaller class size].