By: Bernal H.B. No. 1017
A BILL TO BE ENTITLED
AN ACT
relating to a study of the impact and feasibility of adopting
average daily membership when determining the entitlement of a
school district or open-enrollment charter school.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. (a) The commissioner of education shall conduct
a study of the impact and feasibility of adopting average daily
membership when determining the entitlement of a school district or
open-enrollment charter school.
(b) The commissioner of education shall establish an
advisory committee to assist the commissioner of education in
conducting the study. The advisory committee must be composed of:
(1) the following representatives appointed by the
commissioner of education:
(A) one representative of a school district that
is considered a "major urban" district, as defined by the Texas
Education Agency;
(B) one representative of a school district that
is considered a "major suburban" district, as defined by the Texas
Education Agency;
(C) one representative of a school district that
is considered an "other central city" district, as defined by the
Texas Education Agency;
(D) one representative of a school district that
is considered an "other central city suburban" district, as defined
by the Texas Education Agency;
(E) one representative of a school district that
is considered an "independent town" district, as defined by the
Texas Education Agency;
(F) one representative of a school district that
is considered a "non-metropolitan: fast growing" district, as
defined by the Texas Education Agency;
(G) one representative of a school district that
is considered a "non-metropolitan: stable" district, as defined by
the Texas Education Agency;
(H) one representative of a school district that
is considered a "rural" district, as defined by the Texas Education
Agency;
(I) one or more representatives from an
open-enrollment charter school;
(J) one or more representatives from
organizations interested in the effect of chronic absenteeism;
(K) public school finance experts;
(L) one or more representatives from the Texas
Demographic Center; and
(M) agency staff, as appropriate.
(c) The commissioner of education, with the assistance of
the advisory committee, shall study:
(1) the impact of transitioning from average daily
attendance to average daily membership on entitlements for school
districts and open-enrollment charter schools and the state school
finance system, disaggregated by all student groups served by the
districts and open-enrollment charter schools, including
categories of ethnicity, socioeconomic status, sex, populations
eligible for allotments under Subchapter C, Chapter 48, Education
Code, and populations served by special programs, including
students in special education programs under Subchapter A, Chapter
29, Education Code; and
(2) the statutory and administrative changes that
would be necessary to effectively calculate district entitlements
under Subsection (c)(1);
(d) In studying the adoption of a new model for entitlement
calculations, the commissioner of education and the advisory
committee must compare the benefits and costs among different types
of districts, including comparisons between:
(1) "major urban" districts, as defined by the Texas
Education Agency;
(2) "major suburban" districts, as defined by the
Texas Education Agency;
(3) "other central city" districts, as defined by the
Texas Education Agency;
(4) "other central city suburban" districts, as
defined by the Texas Education Agency;
(5) "independent town" districts, as defined by the
Texas Education Agency;
(6) "non-metropolitan: fast growth" districts, as
defined by the Texas Education Agency;
(7) "non-metropolitan: stable" districts, as defined
by the Texas Education Agency;
(8) "rural" districts, as defined by the Texas
Education Agency; and
(9) open-enrollment charter districts.
(e) The commissioner of education and the advisory
committee shall prepare a report that:
(1) forecasts the fiscal impact to the State to
transition from the current school finance system that utilizes
average daily attendance to the systems described in Subsection
(c)(1) for a period of five years;
(2) evaluates relevant academic research regarding
the connection between attendance and academic success, and methods
and their cost to improve attendance in chronically absent
populations; and
(3) make recommendations regarding:
(A) methods for transitioning away from
utilizing average daily attendance as a system of funding
distribution to using a system that is dependent on both student
enrollment and student attendance in a manner that offers funding
stability;
(B) phasing in a new approach under Subsection
(c)(1) in a manner that would lessen the overall cost burden to the
state; and
(C) appropriate ways to consider enrollment when
determining entitlement calculations, including establishing
average daily membership as a calculation model;
(f) The commissioner of education may partner with school
districts, open-enrollment charter schools, or other appropriate
entities for assistance and to obtain information necessary to
conduct the study. A state agency, school district, or
open-enrollment charter school shall assist the commissioner of
education if the commissioner of education requests information or
assistance in conducting the study.
(g) Not later than December 1, 2022, the commissioner of
education shall submit to the governor, lieutenant governor,
members of the texas senate, speaker of the house of
representatives and members of the Texas house of representatives
the report prepared under Subsection (e) of this section.
SECTION 2. This Act expires September 1, 2023.
SECTION 3. 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, 2021.