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          A BILL TO BE ENTITLED
         | 
      
      
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			 | 
        
          AN ACT
         | 
      
      
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			 | 
        relating to the public school finance system. | 
      
      
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               BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
      
      
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			 | 
               SECTION 1.  Sections 29.918(a) and (b), Education Code, are  | 
      
      
        | 
           
			 | 
        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  | 
      
      
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			 | 
        dropout prevention.  The district or charter school shall submit  | 
      
      
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			 | 
        the plan not later than December 1 of each school year preceding the  | 
      
      
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			 | 
        school year in which the district or charter school will receive the  | 
      
      
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			 | 
        compensatory education allotment [or high school allotment] to  | 
      
      
        | 
           
			 | 
        which the plan applies. | 
      
      
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			 | 
               (b)  A school district or open-enrollment charter school to  | 
      
      
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			 | 
        which this section applies may not spend or obligate more than 25  | 
      
      
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        percent of the district's or charter school's compensatory  | 
      
      
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        education allotment [or high school allotment] unless the  | 
      
      
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        commissioner approves the plan submitted under Subsection (a).  The  | 
      
      
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        commissioner shall complete an initial review of the district's or  | 
      
      
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        charter school's plan not later than March 1 of the school year  | 
      
      
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        preceding the school year in which the district or charter school  | 
      
      
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        will receive the compensatory education allotment [or high school 
         | 
      
      
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			 | 
        
          allotment] to which the plan applies. | 
      
      
        | 
           
			 | 
               SECTION 2.  Section 39.0233(a), Education Code, is amended  | 
      
      
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			 | 
        to read as follows: | 
      
      
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			 | 
               (a)  The agency, in coordination with the Texas Higher  | 
      
      
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			 | 
        Education Coordinating Board, shall adopt a series of questions to  | 
      
      
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			 | 
        be included in an end-of-course assessment instrument administered  | 
      
      
        | 
           
			 | 
        under Section 39.023(c) to be used for purposes of Subchapter F-1,  | 
      
      
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			 | 
        Chapter 51.  The questions adopted under this subsection must be  | 
      
      
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        developed in a manner consistent with any college readiness  | 
      
      
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        standards adopted under [Section 39.233 and] Subchapter F-1,  | 
      
      
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			 | 
        Chapter 51. | 
      
      
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               SECTION 3.  Section 41.002(a), Education Code, is amended to  | 
      
      
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			 | 
        read as follows: | 
      
      
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			 | 
               (a)  A school district may not have a wealth per student that  | 
      
      
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			 | 
        exceeds: | 
      
      
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			 | 
                     (1)  the wealth per student that generates the amount  | 
      
      
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			 | 
        of maintenance and operations tax revenue per weighted student  | 
      
      
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        available to a district with maintenance and operations tax revenue  | 
      
      
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        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  | 
      
      
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        operations tax effort equal to or less than the rate equal to the  | 
      
      
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			 | 
        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  | 
      
      
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			 | 
        and any additional tax effort included in calculating the  | 
      
      
        | 
           
			 | 
        district's compressed tax rate under Section 42.101(a-1); | 
      
      
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                     (2)  the greater of the wealth per student that  | 
      
      
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        generates the amount of maintenance and operations tax revenue per  | 
      
      
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			 | 
        weighted student available to the Austin Independent School  | 
      
      
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        District or a district at the 95th percentile in wealth per student,  | 
      
      
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			 | 
        as determined by the commissioner in cooperation with the  | 
      
      
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        Legislative Budget Board, for the first six cents by which the  | 
      
      
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        district's maintenance and operations tax rate exceeds the rate  | 
      
      
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			 | 
        equal to the sum of the product of the state compression percentage,  | 
      
      
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			 | 
        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  | 
      
      
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        district's compressed tax rate under Section 42.101(a-1), subject  | 
      
      
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			 | 
        to Section 41.093(b-1); or | 
      
      
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                     (3)  the wealth per student specified under Subdivision  | 
      
      
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			 | 
        (1) [$319,500], for the district's maintenance and operations tax  | 
      
      
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        effort that exceeds the amount of tax effort described by  | 
      
      
        | 
           
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        Subdivision (2). | 
      
      
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			 | 
               SECTION 4.  Effective September 1, 2020, Section 41.002(a),  | 
      
      
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        Education Code, is amended to read as follows: | 
      
      
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               (a)  A school district may not have a wealth per student that  | 
      
      
        | 
           
			 | 
        exceeds: | 
      
      
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			 | 
                     (1)  the wealth per student that generates the amount  | 
      
      
        | 
           
			 | 
        of maintenance and operations tax revenue per weighted student  | 
      
      
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			 | 
        available to a district with maintenance and operations tax revenue  | 
      
      
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        per cent of tax effort equal to the maximum amount provided per cent  | 
      
      
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			 | 
        under Section 42.101(a), (a-3), or (b), for the district's  | 
      
      
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        maintenance and operations tax effort equal to or less than the rate  | 
      
      
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			 | 
        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); | 
      
      
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                     (2)  the greater of the wealth per student that  | 
      
      
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			 | 
        generates the amount of maintenance and operations tax revenue per  | 
      
      
        | 
           
			 | 
        weighted student available to the Austin Independent School  | 
      
      
        | 
           
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        District or a district at the 95th percentile in wealth per student,  | 
      
      
        | 
           
			 | 
        as determined by the commissioner in cooperation with the  | 
      
      
        | 
           
			 | 
        Legislative Budget Board, for the first six cents by which the  | 
      
      
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			 | 
        district's maintenance and operations tax rate exceeds 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), subject  | 
      
      
        | 
           
			 | 
        to Section 41.093(b-1); or | 
      
      
        | 
           
			 | 
                     (3)  the wealth per student specified under Subdivision  | 
      
      
        | 
           
			 | 
        (1) [$319,500], for the district's maintenance and operations tax  | 
      
      
        | 
           
			 | 
        effort that exceeds the amount of tax effort described by  | 
      
      
        | 
           
			 | 
        Subdivision (2). | 
      
      
        | 
           
			 | 
               SECTION 5.  Section 41.093(b-1), Education Code, is amended  | 
      
      
        | 
           
			 | 
        to read as follows: | 
      
      
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			 | 
               (b-1)  If the guaranteed level of state and local funds per  | 
      
      
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			 | 
        weighted student per cent of tax effort under Section  | 
      
      
        | 
           
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        42.302(a-1)(1) for which state funds are appropriated for a school  | 
      
      
        | 
           
			 | 
        year is an amount at least equal to the greater of the amount of  | 
      
      
        | 
           
			 | 
        revenue per weighted student per cent of tax effort available to the  | 
      
      
        | 
           
			 | 
        Austin Independent School District or the amount available to a  | 
      
      
        | 
           
			 | 
        district at the 95th percentile in wealth per student, as  | 
      
      
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			 | 
        determined by the commissioner in cooperation with the Legislative  | 
      
      
        | 
           
			 | 
        Budget Board, the commissioner, in computing the amounts described  | 
      
      
        | 
           
			 | 
        by Subsections (a)(1) and (2) and determining the cost of an  | 
      
      
        | 
           
			 | 
        attendance credit, shall exclude maintenance and operations tax  | 
      
      
        | 
           
			 | 
        revenue resulting from the tax rate described by Section  | 
      
      
        | 
           
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        41.002(a)(2). | 
      
      
        | 
           
			 | 
               SECTION 6.  Section 41.099(a), Education Code, is amended to  | 
      
      
        | 
           
			 | 
        read as follows: | 
      
      
        | 
           
			 | 
               (a)  Section [Sections 41.002(e),] 41.094 applies [, 41.097, 
         | 
      
      
        | 
           
			 | 
        
          and 41.098 apply] only to a district that: | 
      
      
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                     (1)  executes an agreement to purchase all attendance  | 
      
      
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			 | 
        credits necessary to reduce the district's wealth per student to  | 
      
      
        | 
           
			 | 
        the equalized wealth level; | 
      
      
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			 | 
                     (2)  executes an agreement to purchase attendance  | 
      
      
        | 
           
			 | 
        credits and an agreement under Subchapter E to contract for the  | 
      
      
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			 | 
        education of nonresident students who transfer to and are educated  | 
      
      
        | 
           
			 | 
        in the district but who are not charged tuition; or | 
      
      
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                     (3)  executes an agreement under Subchapter E to  | 
      
      
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        contract for the education of nonresident students: | 
      
      
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                           (A)  to an extent that does not provide more than  | 
      
      
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			 | 
        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 | 
      
      
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                           (B)  under which all revenue paid by the district  | 
      
      
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        to other districts, in excess of the reduction in state aid that  | 
      
      
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			 | 
        results from counting the weighted average daily attendance of the  | 
      
      
        | 
           
			 | 
        students served in the contracting district, is required to be used  | 
      
      
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			 | 
        for funding a consortium of at least three districts in a county  | 
      
      
        | 
           
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        with a population of less than 40,000 that is formed to support a  | 
      
      
        | 
           
			 | 
        technology initiative. | 
      
      
        | 
           
			 | 
               SECTION 7.  Subchapter A, Chapter 42, Education Code, is  | 
      
      
        | 
           
			 | 
        amended by adding Sections 42.010 and 42.011 to read as follows: | 
      
      
        | 
           
			 | 
               Sec. 42.010.  COMPREHENSIVE REVIEW OF PUBLIC SCHOOL FINANCE  | 
      
      
        | 
           
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        WEIGHTS, ALLOTMENTS, AND ADJUSTMENTS.  (a)  The agency shall  | 
      
      
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        conduct a comprehensive review of weights, allotments, and  | 
      
      
        | 
           
			 | 
        adjustments under the public school finance system, including all  | 
      
      
        | 
           
			 | 
        current weights, allotments, and adjustments provided under this  | 
      
      
        | 
           
			 | 
        chapter and any additional weights, allotments, and adjustments  | 
      
      
        | 
           
			 | 
        that the agency determines may be appropriate.  The review must  | 
      
      
        | 
           
			 | 
        determine the effectiveness of existing  weights, allotments, and  | 
      
      
        | 
           
			 | 
        adjustments in fulfilling the mission of the public education  | 
      
      
        | 
           
			 | 
        system stated in Section 4.001(a) and furthering the state policy  | 
      
      
        | 
           
			 | 
        stated in Section 42.001.  At a minimum, the review must determine  | 
      
      
        | 
           
			 | 
        how closely and appropriately each of the following elements  | 
      
      
        | 
           
			 | 
        reflects and provides financing for costs beyond the control of  | 
      
      
        | 
           
			 | 
        school districts: | 
      
      
        | 
           
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                     (1)  adjustments for costs related to the geographic  | 
      
      
        | 
           
			 | 
        variation in known resource costs and costs of education,  | 
      
      
        | 
           
			 | 
        controlling for the impact of unequalized wealth and hold-harmless  | 
      
      
        | 
           
			 | 
        provisions, and properly reflecting the impact of high  | 
      
      
        | 
           
			 | 
        concentrations of poverty on the compensation that school districts  | 
      
      
        | 
           
			 | 
        must pay to attract and retain teachers of comparable or  | 
      
      
        | 
           
			 | 
        appropriate quality; | 
      
      
        | 
           
			 | 
                     (2)  adjustments for costs related to the size and  | 
      
      
        | 
           
			 | 
        diseconomies of scale of school districts; | 
      
      
        | 
           
			 | 
                     (3)  adjustments for costs related to the varying  | 
      
      
        | 
           
			 | 
        instructional needs and characteristics of students and the extent  | 
      
      
        | 
           
			 | 
        to which the adjustments provide each student with access to  | 
      
      
        | 
           
			 | 
        programs and services that are appropriate to the student's  | 
      
      
        | 
           
			 | 
        educational needs; | 
      
      
        | 
           
			 | 
                     (4)  other factors, in addition to economic status,  | 
      
      
        | 
           
			 | 
        that correlate to student at-risk status and the need for  | 
      
      
        | 
           
			 | 
        compensatory education, and the degree to which those factors  | 
      
      
        | 
           
			 | 
        correspond to additional educational costs; and | 
      
      
        | 
           
			 | 
                     (5)  the manner in which the cost adjustments are  | 
      
      
        | 
           
			 | 
        applied to and affect the overall school finance system. | 
      
      
        | 
           
			 | 
               (b)  The review of the adjustments described in Subsection  | 
      
      
        | 
           
			 | 
        (a)(1) must: | 
      
      
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			 | 
                     (1)  address all uncontrollable costs that can  | 
      
      
        | 
           
			 | 
        reasonably be quantified; | 
      
      
        | 
           
			 | 
                     (2)  consider the qualifications, experience, and  | 
      
      
        | 
           
			 | 
        turnover rate of personnel and the impact of those factors on  | 
      
      
        | 
           
			 | 
        student achievement in considering the adequacy and  comparability  | 
      
      
        | 
           
			 | 
        of salaries; | 
      
      
        | 
           
			 | 
                     (3)  properly address the impact of factors that have a  | 
      
      
        | 
           
			 | 
        large impact on certain types of school districts, such as extreme  | 
      
      
        | 
           
			 | 
        isolation, regardless of general state impact; | 
      
      
        | 
           
			 | 
                     (4)  include only factors for which a rational economic  | 
      
      
        | 
           
			 | 
        argument can be made; | 
      
      
        | 
           
			 | 
                     (5)  be carefully constructed to make sure that a cost  | 
      
      
        | 
           
			 | 
        factor does not significantly affect more than one variable; and | 
      
      
        | 
           
			 | 
                     (6)  not be artificially adjusted to meet predetermined  | 
      
      
        | 
           
			 | 
        outcomes and must not use arbitrary limits. | 
      
      
        | 
           
			 | 
               (c)  In determining whether any additional weights,  | 
      
      
        | 
           
			 | 
        allotments, and adjustments are appropriate under the public school  | 
      
      
        | 
           
			 | 
        finance system, as required by Subsection (a), the agency shall  | 
      
      
        | 
           
			 | 
        include consideration of an additional weight for educational  | 
      
      
        | 
           
			 | 
        services provided to students in prekindergarten on a half-day  | 
      
      
        | 
           
			 | 
        basis and on a full-day basis. | 
      
      
        | 
           
			 | 
               (d)  The agency may contract with one or more consultants if  | 
      
      
        | 
           
			 | 
        necessary to enable the agency to perform its duties under this  | 
      
      
        | 
           
			 | 
        section. | 
      
      
        | 
           
			 | 
               (e)  The Legislative Budget Board, the comptroller, the  | 
      
      
        | 
           
			 | 
        state auditor, and any other state agency, official, or personnel  | 
      
      
        | 
           
			 | 
        shall cooperate with the agency in carrying out its duties under  | 
      
      
        | 
           
			 | 
        this section. | 
      
      
        | 
           
			 | 
               (f)  Not later than December 1, 2020, the agency shall  | 
      
      
        | 
           
			 | 
        provide a report that: | 
      
      
        | 
           
			 | 
                     (1)  states the findings of the review conducted under  | 
      
      
        | 
           
			 | 
        this section; and | 
      
      
        | 
           
			 | 
                     (2)  includes recommendations for updated weights,  | 
      
      
        | 
           
			 | 
        allotments, and adjustments and any other statutory changes  | 
      
      
        | 
           
			 | 
        considered appropriate by the agency. | 
      
      
        | 
           
			 | 
               (g)  This section expires January 1, 2021. | 
      
      
        | 
           
			 | 
               Sec. 42.011.  STUDY OF LEGISLATION ON SCHOOL FUNDING.  (a)   | 
      
      
        | 
           
			 | 
        After each legislative session, the commissioner shall conduct a  | 
      
      
        | 
           
			 | 
        study assessing the manner in which any statute enacted or amended  | 
      
      
        | 
           
			 | 
        during that legislative session affects the equalized wealth level  | 
      
      
        | 
           
			 | 
        of a school district under Chapter 41 or the foundation school  | 
      
      
        | 
           
			 | 
        program under this chapter and whether the standard of neutrality  | 
      
      
        | 
           
			 | 
        described under Section 42.001(b) is maintained. | 
      
      
        | 
           
			 | 
               (b)  The study under this section must: | 
      
      
        | 
           
			 | 
                     (1)  include an analysis of the effects of legislation  | 
      
      
        | 
           
			 | 
        on each school district in the state; and | 
      
      
        | 
           
			 | 
                     (2)  indicate how a school district compares to other  | 
      
      
        | 
           
			 | 
        districts with respect to: | 
      
      
        | 
           
			 | 
                           (A)  property wealth per weighted student; | 
      
      
        | 
           
			 | 
                           (B)  revenue per weighted student; | 
      
      
        | 
           
			 | 
                           (C)  tax effort; and | 
      
      
        | 
           
			 | 
                           (D)  revenue per cent of tax effort. | 
      
      
        | 
           
			 | 
               (c)  The commissioner shall issue a report on the study's  | 
      
      
        | 
           
			 | 
        findings to the governor, the lieutenant governor, the speaker of  | 
      
      
        | 
           
			 | 
        the house of representatives, and the legislature.  The  | 
      
      
        | 
           
			 | 
        commissioner shall make the report available to the public on the  | 
      
      
        | 
           
			 | 
        agency's Internet website. | 
      
      
        | 
           
			 | 
               SECTION 8.  Section 42.101(a), Education Code, is amended to  | 
      
      
        | 
           
			 | 
        read as follows: | 
      
      
        | 
           
			 | 
               (a)  For each student in average daily attendance, not  | 
      
      
        | 
           
			 | 
        including the time students spend each day in special education  | 
      
      
        | 
           
			 | 
        programs in an instructional arrangement other than mainstream or  | 
      
      
        | 
           
			 | 
        career and technology education programs, for which an additional  | 
      
      
        | 
           
			 | 
        allotment is made under Subchapter C, a district is entitled to an  | 
      
      
        | 
           
			 | 
        allotment equal to the lesser of $5,440 [$4,765] or the amount that  | 
      
      
        | 
           
			 | 
        results from the following formula: | 
      
      
        | 
           
			 | 
        A = $5,440 [$4,765] X (DCR/MCR) | 
      
      
        | 
           
			 | 
        where: | 
      
      
        | 
           
			 | 
               "A" is the allotment to which a district is entitled; | 
      
      
        | 
           
			 | 
               "DCR" is the district's compressed tax rate, which is 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 | 
      
      
        | 
           
			 | 
               "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. | 
      
      
        | 
           
			 | 
               SECTION 9.  Effective September 1, 2020, Section 42.101,  | 
      
      
        | 
           
			 | 
        Education Code, is amended by amending Subsection (a) and adding  | 
      
      
        | 
           
			 | 
        Subsection (a-3) to read as follows: | 
      
      
        | 
           
			 | 
               (a)  Subject to adjustment under Subsection (a-3), for [For]  | 
      
      
        | 
           
			 | 
        each student in average daily attendance, not including the time  | 
      
      
        | 
           
			 | 
        students spend each day in special education programs in an  | 
      
      
        | 
           
			 | 
        instructional arrangement other than mainstream or career and  | 
      
      
        | 
           
			 | 
        technology education programs, for which an additional allotment is  | 
      
      
        | 
           
			 | 
        made under Subchapter C, a district is entitled to an allotment  | 
      
      
        | 
           
			 | 
        equal to the lesser of $5,840 [$4,765] or the amount that results  | 
      
      
        | 
           
			 | 
        from the following formula: | 
      
      
        | 
           
			 | 
        A = $5,840 [$4,765] X (DCR/MCR) | 
      
      
        | 
           
			 | 
        where: | 
      
      
        | 
           
			 | 
               "A" is the allotment to which a district is entitled; | 
      
      
        | 
           
			 | 
               "DCR" is the district's compressed tax rate, which is 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 | 
      
      
        | 
           
			 | 
               "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. | 
      
      
        | 
           
			 | 
               (a-3)  Beginning with the 2021-2022 school year, the basic  | 
      
      
        | 
           
			 | 
        allotment provided to a district under Subsection (a) or (b) is  | 
      
      
        | 
           
			 | 
        adjusted annually to increase the allotment by the greater of: | 
      
      
        | 
           
			 | 
                     (1)  one percent of the amount of the allotment for the  | 
      
      
        | 
           
			 | 
        preceding school year; or | 
      
      
        | 
           
			 | 
                     (2)  the amount that results from applying the  | 
      
      
        | 
           
			 | 
        inflation rate, as determined by the comptroller on the basis of  | 
      
      
        | 
           
			 | 
        changes in the Consumer Price Index for All Urban Consumers  | 
      
      
        | 
           
			 | 
        published by the Bureau of Labor Statistics of the United States  | 
      
      
        | 
           
			 | 
        Department of Labor, to the allotment for the preceding school  | 
      
      
        | 
           
			 | 
        year. | 
      
      
        | 
           
			 | 
               SECTION 10.  Sections 42.152(a) and (c), Education Code, are  | 
      
      
        | 
           
			 | 
        amended to read as follows: | 
      
      
        | 
           
			 | 
               (a)  For each student who is educationally disadvantaged or  | 
      
      
        | 
           
			 | 
        who is a student who does not have a disability and resides in a  | 
      
      
        | 
           
			 | 
        residential placement facility in a district in which the student's  | 
      
      
        | 
           
			 | 
        parent or legal guardian does not reside, a district is entitled to  | 
      
      
        | 
           
			 | 
        an annual allotment equal to the adjusted basic allotment  | 
      
      
        | 
           
			 | 
        multiplied by 0.25 [0.2], and by 2.41 for each full-time equivalent  | 
      
      
        | 
           
			 | 
        student who is in a compensatory, intensive, or accelerated  | 
      
      
        | 
           
			 | 
        [remedial and support] program under Section 29.081 because the  | 
      
      
        | 
           
			 | 
        student is pregnant. | 
      
      
        | 
           
			 | 
               (c)  Funds allocated under this section shall be used to fund  | 
      
      
        | 
           
			 | 
        supplemental programs and services designed to eliminate any  | 
      
      
        | 
           
			 | 
        disparity in performance on assessment instruments administered  | 
      
      
        | 
           
			 | 
        under Subchapter B, Chapter 39, or disparity in the rates of high  | 
      
      
        | 
           
			 | 
        school completion between students at risk of dropping out of  | 
      
      
        | 
           
			 | 
        school, as defined by Section 29.081, and all other students.   | 
      
      
        | 
           
			 | 
        Specifically, the funds, other than an indirect cost allotment  | 
      
      
        | 
           
			 | 
        established under State Board of Education rule, which may not  | 
      
      
        | 
           
			 | 
        exceed 25 [45] percent, may be used to meet the costs of providing a  | 
      
      
        | 
           
			 | 
        compensatory, intensive, or accelerated instruction program under  | 
      
      
        | 
           
			 | 
        Section 29.081 or a disciplinary alternative education program  | 
      
      
        | 
           
			 | 
        established under Section 37.008, to pay the costs associated with  | 
      
      
        | 
           
			 | 
        placing students in a juvenile justice alternative education  | 
      
      
        | 
           
			 | 
        program established under Section 37.011, or to support a program  | 
      
      
        | 
           
			 | 
        eligible under Title I of the Elementary and Secondary Education  | 
      
      
        | 
           
			 | 
        Act of 1965, as provided by Pub. L. No. 103-382 and its subsequent  | 
      
      
        | 
           
			 | 
        amendments, and by federal regulations implementing that Act, at a  | 
      
      
        | 
           
			 | 
        campus at which at least 40 percent of the students are  | 
      
      
        | 
           
			 | 
        educationally disadvantaged.  In meeting the costs of providing a  | 
      
      
        | 
           
			 | 
        compensatory, intensive, or accelerated instruction program under  | 
      
      
        | 
           
			 | 
        Section 29.081, a district's compensatory education allotment  | 
      
      
        | 
           
			 | 
        shall be used for costs supplementary to the regular education  | 
      
      
        | 
           
			 | 
        program, such as costs for program and student evaluation,  | 
      
      
        | 
           
			 | 
        instructional materials and equipment and other supplies required  | 
      
      
        | 
           
			 | 
        for quality instruction, supplemental staff expenses, salary for  | 
      
      
        | 
           
			 | 
        teachers of at-risk students, smaller class size, and  | 
      
      
        | 
           
			 | 
        individualized instruction.  A home-rule school district or an  | 
      
      
        | 
           
			 | 
        open-enrollment charter school must use funds allocated under  | 
      
      
        | 
           
			 | 
        Subsection (a) for a purpose authorized in this subsection but is  | 
      
      
        | 
           
			 | 
        not otherwise subject to Subchapter C, Chapter 29.  For purposes of  | 
      
      
        | 
           
			 | 
        this subsection, a program specifically designed to serve students  | 
      
      
        | 
           
			 | 
        at risk of dropping out of school, as defined by Section 29.081, is  | 
      
      
        | 
           
			 | 
        considered to be a program supplemental to the regular education  | 
      
      
        | 
           
			 | 
        program, and a district may use its compensatory education  | 
      
      
        | 
           
			 | 
        allotment for such a program. | 
      
      
        | 
           
			 | 
               SECTION 11.  Sections 42.153(a) and (b), Education Code, are  | 
      
      
        | 
           
			 | 
        amended to read as follows: | 
      
      
        | 
           
			 | 
               (a)  For each student in average daily attendance in a  | 
      
      
        | 
           
			 | 
        bilingual education or special language program under Subchapter B,  | 
      
      
        | 
           
			 | 
        Chapter 29, a district is entitled to an annual allotment equal to  | 
      
      
        | 
           
			 | 
        the adjusted basic allotment multiplied by 0.25 [0.1]. | 
      
      
        | 
           
			 | 
               (b)  Funds allocated under this section, other than an  | 
      
      
        | 
           
			 | 
        indirect cost allotment established under State Board of Education  | 
      
      
        | 
           
			 | 
        rule, which may not exceed 25 percent, 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. | 
      
      
        | 
           
			 | 
               SECTION 12.  Section 42.251(b), Education Code, is amended  | 
      
      
        | 
           
			 | 
        to read as follows: | 
      
      
        | 
           
			 | 
               (b)  The program shall be financed by: | 
      
      
        | 
           
			 | 
                     (1)  ad valorem tax revenue generated by an equalized  | 
      
      
        | 
           
			 | 
        uniform school district effort; | 
      
      
        | 
           
			 | 
                     (2)  ad valorem tax revenue generated by local school  | 
      
      
        | 
           
			 | 
        district effort in excess of the equalized uniform school district  | 
      
      
        | 
           
			 | 
        effort; and | 
      
      
        | 
           
			 | 
                     (3)  [state available school funds distributed in 
         | 
      
      
        | 
           
			 | 
        
          accordance with law; and
         | 
      
      
        | 
           
			 | 
                     [(4)]  state funds appropriated for the purposes of  | 
      
      
        | 
           
			 | 
        public school education and allocated to each district in an amount  | 
      
      
        | 
           
			 | 
        sufficient to finance the cost of each district's Foundation School  | 
      
      
        | 
           
			 | 
        Program not covered by other funds specified in this subsection. | 
      
      
        | 
           
			 | 
               SECTION 13.  Sections 42.253(a) and (c), Education Code, are  | 
      
      
        | 
           
			 | 
        amended to read as follows: | 
      
      
        | 
           
			 | 
               (a)  For each school year the commissioner shall determine: | 
      
      
        | 
           
			 | 
                     (1)  the amount of money to which a school district is  | 
      
      
        | 
           
			 | 
        entitled under Subchapters B and C; | 
      
      
        | 
           
			 | 
                     (2)  the amount of money to which a school district is  | 
      
      
        | 
           
			 | 
        entitled under Subchapter F; | 
      
      
        | 
           
			 | 
                     (3)  [the amount of money allocated to the district 
         | 
      
      
        | 
           
			 | 
        
          from the available school fund;
         | 
      
      
        | 
           
			 | 
                     [(4)]  the amount of each district's tier one local  | 
      
      
        | 
           
			 | 
        share under Section 42.252; and | 
      
      
        | 
           
			 | 
                     (4) [(5)]  the amount of each district's tier two local  | 
      
      
        | 
           
			 | 
        share under Section 42.302. | 
      
      
        | 
           
			 | 
               (c)  Each school district is entitled to an amount equal to  | 
      
      
        | 
           
			 | 
        the difference for that district between the sum of Subsections  | 
      
      
        | 
           
			 | 
        (a)(1) and (a)(2) and the sum of Subsections (a)(3) and [,] (a)(4)[, 
         | 
      
      
        | 
           
			 | 
        
          and (a)(5)]. | 
      
      
        | 
           
			 | 
               SECTION 14.  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)   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 or the amount that would  | 
      
      
        | 
           
			 | 
        be available to a district at the 95th percentile in wealth per  | 
      
      
        | 
           
			 | 
        student, 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 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); and | 
      
      
        | 
           
			 | 
                     (2)  the amount of district tax revenue per weighted  | 
      
      
        | 
           
			 | 
        student per cent of tax effort 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) [$31.95], for the district's maintenance and operations tax  | 
      
      
        | 
           
			 | 
        effort that exceeds the amount of tax effort described by  | 
      
      
        | 
           
			 | 
        Subdivision (1). | 
      
      
        | 
           
			 | 
               SECTION 15.  Effective September 1, 2020, Section  | 
      
      
        | 
           
			 | 
        42.302(a-1), Education Code, is amended to read as follows: | 
      
      
        | 
           
			 | 
               (a-1)  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 or the amount that would  | 
      
      
        | 
           
			 | 
        be available to a district at the 95th percentile in wealth per  | 
      
      
        | 
           
			 | 
        student, 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 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); and | 
      
      
        | 
           
			 | 
                     (2)  the amount of district tax revenue per weighted  | 
      
      
        | 
           
			 | 
        student per cent of tax effort 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),  | 
      
      
        | 
           
			 | 
        (a-3), or (b) [$31.95], for the district's maintenance and  | 
      
      
        | 
           
			 | 
        operations tax effort that exceeds the amount of tax effort  | 
      
      
        | 
           
			 | 
        described by Subdivision (1). | 
      
      
        | 
           
			 | 
               SECTION 16.  Section 43.001, Education Code, is amended by  | 
      
      
        | 
           
			 | 
        amending Subsection (c) and adding Subsection (c-1) to read as  | 
      
      
        | 
           
			 | 
        follows: | 
      
      
        | 
           
			 | 
               (c)  The term "scholastic population" in Subsection (b) or  | 
      
      
        | 
           
			 | 
        any other law governing the apportionment, distribution, and  | 
      
      
        | 
           
			 | 
        transfer of the available school fund means all students of school  | 
      
      
        | 
           
			 | 
        age enrolled in weighted average daily attendance the preceding  | 
      
      
        | 
           
			 | 
        school year in the public elementary and high school grades of  | 
      
      
        | 
           
			 | 
        school districts within or under the jurisdiction of a county of  | 
      
      
        | 
           
			 | 
        this state. | 
      
      
        | 
           
			 | 
               (c-1)  The amount provided to a school district as a result  | 
      
      
        | 
           
			 | 
        of the annual apportionment of the available school fund in  | 
      
      
        | 
           
			 | 
        accordance with Subsection (b) is in addition to amounts to which  | 
      
      
        | 
           
			 | 
        the district is entitled under Chapter 42.  | 
      
      
        | 
           
			 | 
               SECTION 17.  Section 45.259(d), Education Code, is amended  | 
      
      
        | 
           
			 | 
        to read as follows: | 
      
      
        | 
           
			 | 
               (d)  If money appropriated for the Foundation School Program  | 
      
      
        | 
           
			 | 
        is used for purposes of this subchapter and as a result there is  | 
      
      
        | 
           
			 | 
        insufficient money to fully fund the Foundation School Program, the  | 
      
      
        | 
           
			 | 
        commissioner shall, to the extent necessary, reduce each school  | 
      
      
        | 
           
			 | 
        district's foundation school fund allocations[, other than any 
         | 
      
      
        | 
           
			 | 
        
          portion appropriated from the available school fund,] in the same  | 
      
      
        | 
           
			 | 
        manner provided by Section 42.253(h) for a case in which school  | 
      
      
        | 
           
			 | 
        district entitlements exceed the amount appropriated.  The  | 
      
      
        | 
           
			 | 
        following fiscal year, a district's entitlement under Section  | 
      
      
        | 
           
			 | 
        42.253 is increased by an amount equal to the reduction under this  | 
      
      
        | 
           
			 | 
        subsection. | 
      
      
        | 
           
			 | 
               SECTION 18.  The following provisions of the Education Code  | 
      
      
        | 
           
			 | 
        are repealed: | 
      
      
        | 
           
			 | 
                     (1)  Section 29.097(g); | 
      
      
        | 
           
			 | 
                     (2)  Section 29.098(e); | 
      
      
        | 
           
			 | 
                     (3)  Subchapter G, Chapter 29; | 
      
      
        | 
           
			 | 
                     (4)  Section 39.233; | 
      
      
        | 
           
			 | 
                     (5)  Section 39.234; | 
      
      
        | 
           
			 | 
                     (6)  Sections 41.002(e), (f), and (g); | 
      
      
        | 
           
			 | 
                     (7)  Section 41.097; | 
      
      
        | 
           
			 | 
                     (8)  Section 41.098; | 
      
      
        | 
           
			 | 
                     (9)  Section 42.157; | 
      
      
        | 
           
			 | 
                     (10)  Section 42.160; and | 
      
      
        | 
           
			 | 
                     (11)  Section 42.4101. | 
      
      
        | 
           
			 | 
               SECTION 19.  Except as otherwise provided by this Act, this  | 
      
      
        | 
           
			 | 
        Act takes effect September 1, 2019. |