Texas 2021 - 87th Regular

Texas House Bill HB1246 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	87R5964 KJE-D
2	2	By: Hinojosa H.B. No. 1246
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the use of average enrollment for purposes of the public
8	8	school finance system.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 48.005, Education Code, is amended to
11	11	read as follows:
12	12	Sec. 48.005. AVERAGE ENROLLMENT [DAILY ATTENDANCE]. (a)
13	13	In this chapter, average enrollment [daily attendance] is:
14	14	(1) the average number of students enrolled in the
15	15	school district during a school year [quotient of the sum of
16	16	attendance for each day of the minimum number of days of instruction
17	17	as described under Section 25.081(a) divided by the minimum number
18	18	of days of instruction;
19	19	[(2) for a district that operates under a flexible
20	20	year program under Section 29.0821, the quotient of the sum of
21	21	attendance for each actual day of instruction as permitted by
22	22	Section 29.0821(b)(1) divided by the number of actual days of
23	23	instruction as permitted by Section 29.0821(b)(1);
24	24	[(3) for a district that operates under a flexible
25	25	school day program under Section 29.0822, the average daily
26	26	attendance as calculated by the commissioner in accordance with
27	27	Sections 29.0822(d) and (d-1)]; or
28	28	(2) [(4)] for a district that operates a half-day
29	29	program or a full-day program under Section 29.153(c), one-half of
30	30	the average enrollment [daily attendance] calculated under
31	31	Subdivision (1).
32	32	(b) A school district that experiences a decline of two
33	33	percent or more in average enrollment [daily attendance] shall be
34	34	funded on the basis of:
35	35	(1) the actual average enrollment [daily attendance]
36	36	of the preceding school year, if the decline is the result of the
37	37	closing or reduction in personnel of a military base; or
38	38	(2) subject to Subsection (e), an average enrollment
39	39	[daily attendance] not to exceed 98 percent of the actual average
40	40	enrollment [daily attendance] of the preceding school year, if the
41	41	decline is not the result of the closing or reduction in personnel
42	42	of a military base.
43	43	(c) The commissioner shall adjust the average enrollment
44	44	[daily attendance] of a school district that has a significant
45	45	percentage of students who are migratory children as defined by 20
46	46	U.S.C. Section 6399.
47	47	(d) The commissioner may adjust the average enrollment
48	48	[daily attendance] of a school district in which a disaster, flood,
49	49	extreme weather condition, fuel curtailment, or other calamity has
50	50	a significant effect on the district's enrollment [attendance].
51	51	(e) For each school year, the commissioner shall adjust the
52	52	average enrollment [daily attendance] of school districts that are
53	53	entitled to funding on the basis of an adjusted average enrollment
54	54	[daily attendance] under Subsection (b)(2) so that:
55	55	(1) all districts are funded on the basis of the same
56	56	percentage of the preceding year's actual average enrollment [daily
57	57	attendance]; and
58	58	(2) the total cost to the state does not exceed the
59	59	amount specifically appropriated for that year for purposes of
60	60	Subsection (b)(2).
61	61	(f) An open-enrollment charter school is not entitled to
62	62	funding based on an adjustment under Subsection (b)(2).
63	63	(g) If a student may receive course credit toward the
64	64	student's high school academic requirements and toward the
65	65	student's higher education academic requirements for a single
66	66	course, including a course provided under Section 28.009 by a
67	67	public institution of higher education, the time during which the
68	68	student attends the course shall be counted as part of the minimum
69	69	number of instructional hours required for a student to be
70	70	considered a full-time student in average enrollment [daily
71	71	attendance] for purposes of this section.
72	72	[(g-1) The commissioner shall adopt rules to calculate
73	73	average daily attendance for students participating in a blended
74	74	learning program in which classroom instruction is supplemented
75	75	with applied workforce learning opportunities, including
76	76	participation of students in internships, externships, and
77	77	apprenticeships.]
78	78	(h) Time [Subject to rules adopted by the commissioner under
79	79	Section 48.007(b), time] that a student participates in an
80	80	off-campus instructional program provided by an entity other than a
81	81	school district or open-enrollment charter school and approved by
82	82	the commissioner in accordance with commissioner rule [under
83	83	Section 48.007(a)] shall be counted as part of the minimum number of
84	84	instructional hours required for a student to be considered a
85	85	full-time student in average enrollment [daily attendance] for
86	86	purposes of this section.
87	87	(i) A district or a charter school operating under Chapter
88	88	12 that operates a prekindergarten program is eligible to receive
89	89	one-half of average enrollment [daily attendance] under Subsection
90	90	(a) if the district's or charter school's prekindergarten program
91	91	provides at least 32,400 minutes of instructional time to students.
92	92	(j) A district or charter school is eligible to earn full
93	93	average enrollment [daily attendance] under Subsection (a) if the
94	94	district or school provides at least 43,200 minutes of
95	95	instructional time to students enrolled in:
96	96	(1) a dropout recovery school or program operating
97	97	under Section 12.1141(c) or Section 39.0548;
98	98	(2) an alternative education program operating under
99	99	Section 37.008;
100	100	(3) a school program located at a day treatment
101	101	facility, residential treatment facility, psychiatric hospital, or
102	102	medical hospital;
103	103	(4) a school program offered at a correctional
104	104	facility; or
105	105	(5) a school operating under Section 29.259.
106	106	(k) A charter school operating under a charter granted under
107	107	Chapter 12 before January 1, 2015, is eligible to earn full average
108	108	enrollment [daily attendance] under Subsection (a), as that
109	109	subsection existed immediately before January 1, 2015, for:
110	110	(1) all campuses of the charter school operating
111	111	before January 1, 2015; and
112	112	(2) any campus or site expansion approved on or after
113	113	January 1, 2015, provided that the charter school received an
114	114	academic accountability performance rating of C or higher, and the
115	115	campus or site expansion is approved by the commissioner.
116	116	(l) A school district campus or charter school described by
117	117	Subsection (j) may operate more than one program and be eligible for
118	118	full average enrollment [daily attendance] for each program if the
119	119	programs operated by the district campus or charter school satisfy
120	120	all applicable state and federal requirements.
121	121	(m) The commissioner shall adopt rules necessary to
122	122	implement this section, including rules that:
123	123	(1) determine the method to calculate the average
124	124	number of students enrolled in a school district during a school
125	125	year;
126	126	(2) establish the minimum amount of instructional time
127	127	per day that allows a school district or charter school to be
128	128	eligible for full average enrollment [daily attendance], which may
129	129	differ based on the instructional program offered by the district
130	130	or charter school;
131	131	(3) [(2)] establish the requirements necessary for a
132	132	school district or charter school to be eligible for one-half of
133	133	average enrollment [daily attendance], which may differ based on
134	134	the instructional program offered by the district or charter
135	135	school; and
136	136	(4) [(3)] proportionally reduce the average
137	137	enrollment [daily attendance] for a school district if any campus
138	138	or instructional program in the district provides fewer than the
139	139	required minimum minutes of instruction to students.
140	140	(n) To assist school districts in implementing this section
141	141	as amended by H.B. 2442, Acts of the 85th Legislature, Regular
142	142	Session, 2017, the commissioner may waive a requirement of this
143	143	section or adopt rules to implement this section.
144	144	SECTION 2. Section 7.062(a), Education Code, is amended to
145	145	read as follows:
146	146	(a) In this section, "wealth per student" means a school
147	147	district's taxable value of property as determined under Subchapter
148	148	M, Chapter 403, Government Code, or, if applicable, Section 48.258,
149	149	divided by the district's average enrollment [daily attendance] as
150	150	determined under Section 48.005.
151	151	SECTION 3. Section 11.052(f), Education Code, is amended to
152	152	read as follows:
153	153	(f) If single-member trustee districts are adopted or
154	154	approved as provided by this section, the board shall divide the
155	155	school district into the appropriate number of trustee districts,
156	156	based on the number of members of the board that are to be elected
157	157	from single-member trustee districts, and shall number each trustee
158	158	district. The trustee districts must be compact and contiguous and
159	159	must be as nearly as practicable of equal population. In a district
160	160	with 150,000 or more students in average enrollment [daily
161	161	attendance], the boundary of a trustee district may not cross a
162	162	county election precinct boundary except at a point at which the
163	163	boundary of the school district crosses the county election
164	164	precinct boundary. Trustee districts must be drawn not later than
165	165	the 90th day before the date of the first election of trustees from
166	166	those districts.
167	167	SECTION 4. Sections 12.106(a), (a-2), and (d), Education
168	168	Code, are amended to read as follows:
169	169	(a) A charter holder is entitled to receive for the
170	170	open-enrollment charter school funding under Chapter 48 equal to
171	171	the amount of funding per student in weighted average enrollment
172	172	[daily attendance], excluding the adjustment under Section 48.052,
173	173	the funding under Sections 48.101, 48.110, 48.111, and 48.112, and
174	174	enrichment funding under Section 48.202(a), to which the charter
175	175	holder would be entitled for the school under Chapter 48 if the
176	176	school were a school district without a tier one local share for
177	177	purposes of Section 48.266.
178	178	(a-2) In addition to the funding provided by Subsection (a),
179	179	a charter holder is entitled to receive for the open-enrollment
180	180	charter school an allotment per student in average enrollment
181	181	[daily attendance] in an amount equal to the difference between:
182	182	(1) the product of:
183	183	(A) the quotient of:
184	184	(i) the total amount of funding provided to
185	185	eligible school districts under Section 48.101(b) or (c); and
186	186	(ii) the total number of students in
187	187	average enrollment [daily attendance] in school districts that
188	188	receive an allotment under Section 48.101(b) or (c); and
189	189	(B) the sum of one and the quotient of:
190	190	(i) the total number of students in average
191	191	enrollment [daily attendance] in school districts that receive an
192	192	allotment under Section 48.101(b) or (c); and
193	193	(ii) the total number of students in
194	194	average enrollment [daily attendance] in school districts
195	195	statewide; and
196	196	(2) $125.
197	197	(d) Subject to Subsection (e), in addition to other amounts
198	198	provided by this section, a charter holder is entitled to receive,
199	199	for the open-enrollment charter school, funding per student in
200	200	average enrollment [daily attendance] in an amount equal to the
201	201	guaranteed level of state and local funds per student per cent of
202	202	tax effort under Section 46.032(a) multiplied by the lesser of:
203	203	(1) the state average interest and sinking fund tax
204	204	rate imposed by school districts for the current year; or
205	205	(2) a rate that would result in a total amount to which
206	206	charter schools are entitled under this subsection for the current
207	207	year equal to $60 million.
208	208	SECTION 5. Section 13.051(c), Education Code, is amended to
209	209	read as follows:
210	210	(c) Territory that does not have residents may be detached
211	211	from a school district and annexed to another school district if:
212	212	(1) the total taxable value of the property in the
213	213	territory according to the most recent certified appraisal roll for
214	214	each school district is not greater than:
215	215	(A) five percent of the district's taxable value
216	216	of all property in that district as determined under Subchapter M,
217	217	Chapter 403, Government Code; and
218	218	(B) $5,000 property value per student in average
219	219	enrollment [daily attendance] as determined under Section 48.005;
220	220	and
221	221	(2) the school district from which the property will
222	222	be detached does not own any real property located in the territory.
223	223	SECTION 6. Section 13.102, Education Code, is amended to
224	224	read as follows:
225	225	Sec. 13.102. MINIMUM AREA AND ENROLLMENT [ATTENDANCE]
226	226	REQUIREMENTS. A new district may not be created with an area of
227	227	less than nine square miles or fewer than 8,000 students in average
228	228	enrollment [daily attendance], and a district may not be reduced to
229	229	an area of less than nine square miles or fewer than 8,000 students
230	230	in average enrollment [daily attendance].
231	231	SECTION 7. Section 13.283, Education Code, is amended to
232	232	read as follows:
233	233	Sec. 13.283. PAYMENTS REDUCED. The incentive aid payments
234	234	shall be reduced in direct proportion to any reduction in the
235	235	average enrollment [daily attendance] as determined under Section
236	236	48.005 of the reorganized school district for the preceding year.
237	237	SECTION 8. Section 19.009(d-2), Education Code, is amended
238	238	to read as follows:
239	239	(d-2) Beginning with the 2009-2010 school year, the
240	240	district shall increase the monthly salary of each classroom
241	241	teacher, full-time speech pathologist, full-time librarian,
242	242	full-time school counselor certified under Subchapter B, Chapter
243	243	21, and full-time school nurse employed by the district by the
244	244	greater of:
245	245	(1) $80; or
246	246	(2) the maximum uniform amount that, when combined
247	247	with any resulting increases in the amount of contributions made by
248	248	the district for social security coverage for the specified
249	249	employees or by the district on behalf of the specified employees
250	250	under Section 825.405, Government Code, may be provided using an
251	251	amount equal to the product of $60 multiplied by the number of
252	252	students in weighted average enrollment [daily attendance] in the
253	253	district during the 2009-2010 school year.
254	254	SECTION 9. Section 25.038, Education Code, is amended to
255	255	read as follows:
256	256	Sec. 25.038. TUITION FEE FOR TRANSFER STUDENTS. The
257	257	receiving school district may charge a tuition fee to the extent
258	258	that the district's actual expenditure per student in average
259	259	enrollment [daily attendance], as determined by its board of
260	260	trustees, exceeds the sum the district benefits from state aid
261	261	sources as provided by Section 25.037. However, unless a tuition
262	262	fee is prescribed and set out in a transfer agreement before its
263	263	execution by the parties, an increase in tuition charge may not be
264	264	made for the year of that transfer that exceeds the tuition charge,
265	265	if any, of the preceding school year.
266	266	SECTION 10. Sections 25.081(e) and (f), Education Code, are
267	267	amended to read as follows:
268	268	(e) A school district or education program is exempt from
269	269	the minimum minutes of operation requirement if the district's or
270	270	program's average enrollment [daily attendance] is calculated
271	271	under Section 48.005(j).
272	272	(f) The commissioner may proportionally reduce the amount
273	273	of funding a district receives under Chapter 46, 48, or 49 and the
274	274	average enrollment [daily attendance] calculation for the district
275	275	if the district operates on a calendar that provides fewer minutes
276	276	of operation than required under Subsection (a).
277	277	SECTION 11. Section 25.087(d), Education Code, is amended
278	278	to read as follows:
279	279	(d) A student whose absence is excused under Subsection (b),
280	280	(b-1), (b-2), (b-4), (b-5), or (c) may not be penalized for that
281	281	absence and shall be counted as if the student attended school for
282	282	purposes of funding under Chapter 48 [calculating the average daily
283	283	attendance of students in the school district]. A student whose
284	284	absence is excused under Subsection (b), (b-1), (b-2), (b-4),
285	285	(b-5), or (c) shall be allowed a reasonable time to make up school
286	286	work missed on those days. If the student satisfactorily completes
287	287	the school work, the day of absence shall be counted as a day of
288	288	compulsory attendance.
289	289	SECTION 12. Section 25.111, Education Code, is amended to
290	290	read as follows:
291	291	Sec. 25.111. STUDENT/TEACHER RATIOS. Except as provided by
292	292	Section 25.112, each school district must employ a sufficient
293	293	number of teachers certified under Subchapter B, Chapter 21, to
294	294	maintain an average ratio of not less than one teacher for each 20
295	295	students in average enrollment [daily attendance].
296	296	SECTION 13. Sections 25.112(a) and (b), Education Code, are
297	297	amended to read as follows:
298	298	(a) Except as otherwise authorized by this section, a school
299	299	district may not enroll more than 22 students in a kindergarten,
300	300	first, second, third, or fourth grade class. That limitation does
301	301	not apply during:
302	302	(1) any 12-week period of the school year selected by
303	303	the district, in the case of a district whose average enrollment
304	304	[daily attendance] is adjusted under Section 48.005(c); or
305	305	(2) the last 12 weeks of any school year in the case of
306	306	any other district.
307	307	(b) Not later than the 30th day after the first day of the
308	308	12-week period for which a district whose average enrollment [daily
309	309	attendance] is adjusted under Section 48.005(c) is claiming an
310	310	exemption under Subsection (a), the district shall notify the
311	311	commissioner in writing that the district is claiming an exemption
312	312	for the period stated in the notice.
313	313	SECTION 14. Section 29.008(b), Education Code, is amended
314	314	to read as follows:
315	315	(b) Except as provided by Subsection (c), costs of an
316	316	approved contract for residential placement may be paid from a
317	317	combination of federal, state, and local funds. The local share of
318	318	the total contract cost for each student is that portion of the
319	319	local tax effort that exceeds the district's local fund assignment
320	320	under Section 48.256, divided by the average enrollment [daily
321	321	attendance] in the district. If the contract involves a private
322	322	facility, the state share of the total contract cost is that amount
323	323	remaining after subtracting the local share. If the contract
324	324	involves a public facility, the state share is that amount
325	325	remaining after subtracting the local share from the portion of the
326	326	contract that involves the costs of instructional and related
327	327	services. For purposes of this subsection, "local tax effort"
328	328	means the total amount of money generated by taxes imposed for debt
329	329	service and maintenance and operation less any amounts paid into a
330	330	tax increment fund under Chapter 311, Tax Code.
331	331	SECTION 15. Section 29.014(b), Education Code, is amended
332	332	to read as follows:
333	333	(b) A school district to which this section applies may
334	334	operate an extended year program for a period not to exceed 45 days.
335	335	[The district's average daily attendance shall be computed for the
336	336	regular school year plus the extended year.]
337	337	SECTION 16. Section 29.081(f), Education Code, is amended
338	338	to read as follows:
339	339	(f) The commissioner shall include students enrolled in
340	340	[attendance in] a program under Subsection (e) in the computation
341	341	of the district's average enrollment [daily attendance] for funding
342	342	purposes.
343	343	SECTION 17. Section 29.0822(d), Education Code, is amended
344	344	to read as follows:
345	345	(d) The commissioner may adopt rules for the administration
346	346	of this section, including rules establishing application
347	347	requirements. [Subject to Subsection (d-1), the commissioner shall
348	348	calculate average daily attendance for students served under this
349	349	section. The commissioner shall allow accumulations of hours of
350	350	instruction for students whose schedule would not otherwise allow
351	351	full state funding. Funding under this subsection shall be
352	352	determined based on the number of instructional days in the school
353	353	district calendar and a seven-hour school day, but attendance may
354	354	be cumulated over a school year, including any summer or vacation
355	355	session. The attendance of students who accumulate less than the
356	356	number of attendance hours required under this subsection shall be
357	357	proportionately reduced for funding purposes. The commissioner
358	358	may:
359	359	[(1) set maximum funding amounts for an individual
360	360	course under this section; and
361	361	[(2) limit funding for the attendance of a student
362	362	described by Subsection (a)(3) in a course under this section to
363	363	funding only for the attendance necessary for the student to earn
364	364	class credit that, as a result of attendance requirements under
365	365	Section 25.092, the student would not otherwise be able to receive
366	366	without retaking the class.]
367	367	SECTION 18. Section 29.124(b), Education Code, is amended
368	368	to read as follows:
369	369	(b) If the commissioner determines that a school district
370	370	has failed to comply with Subsection (a) for a school year, the
371	371	commissioner shall reduce the total amount of funding to which the
372	372	district is entitled under Chapter 48 for that school year by an
373	373	amount equal to the basic allotment multiplied by the product of:
374	374	(1) 0.12; and
375	375	(2) an amount equal to five percent of the students in
376	376	average enrollment [daily attendance] in the district.
377	377	SECTION 19. Section 29.184(b), Education Code, is amended
378	378	to read as follows:
379	379	(b) A student who attends career and technology classes at
380	380	another school under a contract authorized by Subsection (a) is
381	381	included in the average enrollment [daily attendance] of the
382	382	district in which the student is regularly enrolled.
383	383	SECTION 20. Sections 29.203(a) and (c), Education Code, are
384	384	amended to read as follows:
385	385	(a) A student who under this subchapter uses a public
386	386	education grant to attend a public school in a school district other
387	387	than the district in which the student resides is included in the
388	388	average enrollment [daily attendance] of the district in which the
389	389	student attends school.
390	390	(c) A school district is entitled to additional facilities
391	391	assistance under Section 48.301 if the district agrees to:
392	392	(1) accept a number of students using public education
393	393	grants that is at least one percent of the district's average
394	394	enrollment [daily attendance] for the preceding school year; and
395	395	(2) provide services to each student until the student
396	396	either voluntarily decides to attend a school in a different
397	397	district or graduates from high school.
398	398	SECTION 21. Section 29.259(j), Education Code, is amended
399	399	to read as follows:
400	400	(j) Funding for an adult education program under this
401	401	section is provided based on the following:
402	402	(1) for participants who are 26 years of age and older,
403	403	an amount per participant from available general revenue funds
404	404	appropriated for the program equal to the statewide average amount
405	405	of state funding per student in weighted average enrollment [daily
406	406	attendance] that would be allocated under the Foundation School
407	407	Program to an open-enrollment charter school under Section 12.106
408	408	were the student under 26 years of age; and
409	409	(2) for participants who are at least 18 years of age
410	410	and under 26 years of age, an amount per participant through the
411	411	Foundation School Program equal to the amount of state funding per
412	412	student in weighted average enrollment [daily attendance] that
413	413	would be allocated under the Foundation School Program for the
414	414	student's enrollment in [attendance at] an open-enrollment charter
415	415	school in accordance with Section 12.106.
416	416	SECTION 22. Section 29.403(b), Education Code, is amended
417	417	to read as follows:
418	418	(b) A student who is enrolled in a program under this
419	419	subchapter is included in determining the average enrollment [daily
420	420	attendance] under Section 48.005 of the partnering school district.
421	421	SECTION 23. Section 29.457(a), Education Code, is amended
422	422	to read as follows:
423	423	(a) In addition to other funding to which a school district
424	424	is entitled under this code, each district in which alleged
425	425	offender residents attend school is entitled to an annual allotment
426	426	of $5,100 for each resident in average enrollment [daily
427	427	attendance] or a different amount for any year provided by
428	428	appropriation.
429	429	SECTION 24. Section 30.003(b), Education Code, is amended
430	430	to read as follows:
431	431	(b) If the student is admitted to the school for a full-time
432	432	program for the equivalent of two long semesters, the district's
433	433	share of the cost is an amount equal to the dollar amount of
434	434	maintenance and debt service taxes imposed by the district for that
435	435	year divided by the district's average enrollment [daily
436	436	attendance] for the preceding year.
437	437	SECTION 25. Section 30.102(a), Education Code, is amended
438	438	to read as follows:
439	439	(a) The Texas Juvenile Justice Department is entitled to
440	440	receive the state available school fund apportionment based on the
441	441	average enrollment [daily attendance] in the department's
442	442	educational programs of students who are at least three years of age
443	443	and not older than 21 years of age.
444	444	SECTION 26. Section 30A.151(f), Education Code, is amended
445	445	to read as follows:
446	446	(f) For a full-time electronic course program offered
447	447	through the state virtual school network for a grade level at or
448	448	above grade level three but not above grade level eight, a school
449	449	district or open-enrollment charter school is entitled to receive
450	450	federal, state, and local funding for a student enrolled in the
451	451	program in an amount equal to the funding the district or school
452	452	would otherwise receive for a student enrolled in the district or
453	453	school. [The district or school may calculate the average daily
454	454	attendance of a student enrolled in the program based on:
455	455	[(1) hours of contact with the student;
456	456	[(2) the student's successful completion of a course;
457	457	or
458	458	[(3) a method approved by the commissioner.]
459	459	SECTION 27. Section 33.157, Education Code, is amended to
460	460	read as follows:
461	461	Sec. 33.157. PARTICIPATION IN PROGRAM. An elementary or
462	462	secondary school receiving funding under Section 33.156 shall
463	463	participate in a local Communities In Schools program if the number
464	464	of students enrolled in the school who are at risk of dropping out
465	465	of school is equal to at least 10 percent of the number of students
466	466	in average enrollment [daily attendance] at the school, as
467	467	determined by the agency.
468	468	SECTION 28. Section 37.0061, Education Code, is amended to
469	469	read as follows:
470	470	Sec. 37.0061. FUNDING FOR ALTERNATIVE EDUCATION SERVICES IN
471	471	JUVENILE RESIDENTIAL FACILITIES. A school district that provides
472	472	education services to pre-adjudicated and post-adjudicated
473	473	students who are confined by court order in a juvenile residential
474	474	facility operated by a juvenile board is entitled to count such
475	475	students in the district's average enrollment [daily attendance]
476	476	for purposes of receipt of state funds under the Foundation School
477	477	Program. If the district has a local revenue level greater than the
478	478	guaranteed local revenue level but less than the level established
479	479	under Section 48.257, the district in which the student is enrolled
480	480	on the date a court orders the student to be confined to a juvenile
481	481	residential facility shall transfer to the district providing
482	482	education services an amount equal to the difference between the
483	483	average Foundation School Program costs per student of the district
484	484	providing education services and the sum of the state aid and the
485	485	money from the available school fund received by the district that
486	486	is attributable to the student for the portion of the school year
487	487	for which the district provides education services to the student.
488	488	SECTION 29. Section 37.008(f), Education Code, is amended
489	489	to read as follows:
490	490	(f) A student removed to a disciplinary alternative
491	491	education program is counted in computing the average enrollment
492	492	[daily attendance] of students in the district [for the student's
493	493	time in actual attendance in the program].
494	494	SECTION 30. Section 37.011(a-4), Education Code, is amended
495	495	to read as follows:
496	496	(a-4) A school district located in a county considered to be
497	497	a county with a population of 125,000 or less under Subsection (a-3)
498	498	shall provide educational services to a student who is expelled
499	499	from school under this chapter. The district is entitled to count
500	500	the student in the district's average enrollment [daily attendance]
501	501	for purposes of receipt of state funds under the Foundation School
502	502	Program. An educational placement under this section may include:
503	503	(1) the district's disciplinary alternative education
504	504	program; or
505	505	(2) a contracted placement with:
506	506	(A) another school district;
507	507	(B) an open-enrollment charter school;
508	508	(C) an institution of higher education;
509	509	(D) an adult literacy council; or
510	510	(E) a community organization that can provide an
511	511	educational program that allows the student to complete the credits
512	512	required for high school graduation.
513	513	SECTION 31. Sections 39.027(c) and (f), Education Code, are
514	514	amended to read as follows:
515	515	(c) The commissioner shall develop and adopt a process for
516	516	reviewing the exemption process of a school district or shared
517	517	services arrangement that gives an exemption under Subsection
518	518	(a)(1) as follows:
519	519	(1) to more than five percent of the students in the
520	520	special education program, in the case of a district or shared
521	521	services arrangement with an average enrollment [daily attendance]
522	522	of at least 1,600;
523	523	(2) to more than 10 percent of the students in the
524	524	special education program, in the case of a district or shared
525	525	services arrangement with an average enrollment [daily attendance]
526	526	of at least 190 and not more than 1,599; or
527	527	(3) to the greater of more than 10 percent of the
528	528	students in the special education program or to at least five
529	529	students in the special education program, in the case of a district
530	530	or shared services arrangement with an average enrollment [daily
531	531	attendance] of not more than 189.
532	532	(f) In this section, "average enrollment [daily
533	533	attendance]" is computed in the manner provided by Section 48.005.
534	534	SECTION 32. Section 39.053(g-1), Education Code, is amended
535	535	to read as follows:
536	536	(g-1) In computing dropout and completion rates such as high
537	537	school graduation rates under Subsection (c)(1)(B)(ix), the
538	538	commissioner shall exclude:
539	539	(1) students who are ordered by a court to attend a
540	540	high school equivalency certificate program but who have not yet
541	541	earned a high school equivalency certificate;
542	542	(2) students who were previously reported to the state
543	543	as dropouts, including a student who is reported as a dropout,
544	544	reenrolls, and drops out again, regardless of the number of times of
545	545	reenrollment and dropping out;
546	546	(3) students in attendance who are not in membership
547	547	for purposes of average enrollment [daily attendance];
548	548	(4) students whose initial enrollment in a school in
549	549	the United States in grades 7 through 12 was as an unschooled asylee
550	550	or refugee as defined by Section 39.027(a-1);
551	551	(5) students who are detained at a county
552	552	pre-adjudication or post-adjudication juvenile detention facility
553	553	and:
554	554	(A) in the district exclusively as a function of
555	555	having been detained at the facility but are otherwise not students
556	556	of the district in which the facility is located; or
557	557	(B) provided services by an open-enrollment
558	558	charter school exclusively as the result of having been detained at
559	559	the facility;
560	560	(6) students who are incarcerated in state jails and
561	561	federal penitentiaries as adults and as persons certified to stand
562	562	trial as adults; and
563	563	(7) students who have suffered a condition, injury, or
564	564	illness that requires substantial medical care and leaves the
565	565	student:
566	566	(A) unable to attend school; and
567	567	(B) assigned to a medical or residential
568	568	treatment facility.
569	569	SECTION 33. Section 39.262(a), Education Code, is amended
570	570	to read as follows:
571	571	(a) The governor may present a financial award to the
572	572	schools or districts that the commissioner determines have
573	573	demonstrated the highest levels of sustained success or the
574	574	greatest improvement in achieving the education goals. For each
575	575	student in average enrollment [daily attendance], each of those
576	576	schools or districts is entitled to an amount set for the award for
577	577	which the school or district is selected by the commissioner,
578	578	subject to any limitation set by the commissioner on the total
579	579	amount that may be awarded to a school or district.
580	580	SECTION 34. Section 42.168(a), Education Code, as added by
581	581	Chapter 464 (S.B. 11), Acts of the 86th Legislature, Regular
582	582	Session, 2019, is amended to read as follows:
583	583	(a) From funds appropriated for that purpose, the
584	584	commissioner shall provide to a school district an annual allotment
585	585	in the amount provided by appropriation for each student in average
586	586	enrollment [daily attendance].
587	587	SECTION 35. Section 43.001(c), Education Code, is amended
588	588	to read as follows:
589	589	(c) The term "scholastic population" in Subsection (b) or
590	590	any other law governing the apportionment, distribution, and
591	591	transfer of the available school fund means all students of school
592	592	age [enrolled] in average enrollment [daily attendance] the
593	593	preceding school year in the public elementary and high school
594	594	grades of school districts within or under the jurisdiction of a
595	595	county of this state.
596	596	SECTION 36. Section 44.004(c), Education Code, is amended
597	597	to read as follows:
598	598	(c) The notice of public meeting to discuss and adopt the
599	599	budget and the proposed tax rate may not be smaller than one-quarter
600	600	page of a standard-size or a tabloid-size newspaper, and the
601	601	headline on the notice must be in 18-point or larger type. Subject
602	602	to Subsection (d), the notice must:
603	603	(1) contain a statement in the following form:
604	604	"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
605	605	"The (name of school district) will hold a public meeting at
606	606	(time, date, year) in (name of room, building, physical location,
607	607	city, state). The purpose of this meeting is to discuss the school
608	608	district's budget that will determine the tax rate that will be
609	609	adopted. Public participation in the discussion is invited." The
610	610	statement of the purpose of the meeting must be in bold type. In
611	611	reduced type, the notice must state: "The tax rate that is
612	612	ultimately adopted at this meeting or at a separate meeting at a
613	613	later date may not exceed the proposed rate shown below unless the
614	614	district publishes a revised notice containing the same information
615	615	and comparisons set out below and holds another public meeting to
616	616	discuss the revised notice.";
617	617	(2) contain a section entitled "Comparison of Proposed
618	618	Budget with Last Year's Budget," which must show the difference,
619	619	expressed as a percent increase or decrease, as applicable, in the
620	620	amounts budgeted for the preceding fiscal year and the amount
621	621	budgeted for the fiscal year that begins in the current tax year for
622	622	each of the following:
623	623	(A) maintenance and operations;
624	624	(B) debt service; and
625	625	(C) total expenditures;
626	626	(3) contain a section entitled "Total Appraised Value
627	627	and Total Taxable Value," which must show the total appraised value
628	628	and the total taxable value of all property and the total appraised
629	629	value and the total taxable value of new property taxable by the
630	630	district in the preceding tax year and the current tax year as
631	631	calculated under Section 26.04, Tax Code;
632	632	(4) contain a statement of the total amount of the
633	633	outstanding and unpaid bonded indebtedness of the school district;
634	634	(5) contain a section entitled "Comparison of Proposed
635	635	Rates with Last Year's Rates," which must:
636	636	(A) show in rows the tax rates described by
637	637	Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
638	638	property, for columns entitled "Maintenance & Operations,"
639	639	"Interest & Sinking Fund," and "Total," which is the sum of
640	640	"Maintenance & Operations" and "Interest & Sinking Fund":
641	641	(i) the school district's "Last Year's
642	642	Rate";
643	643	(ii) the "Rate to Maintain Same Level of
644	644	Maintenance & Operations Revenue & Pay Debt Service," which:
645	645	(a) in the case of "Maintenance &
646	646	Operations," is the tax rate that, when applied to the current
647	647	taxable value for the district, as certified by the chief appraiser
648	648	under Section 26.01, Tax Code, and as adjusted to reflect changes
649	649	made by the chief appraiser as of the time the notice is prepared,
650	650	would impose taxes in an amount that, when added to state funds to
651	651	be distributed to the district under Chapter 48, would provide the
652	652	same amount of maintenance and operations taxes and state funds
653	653	distributed under Chapter 48 per student in average enrollment
654	654	[daily attendance] for the applicable school year that was
655	655	available to the district in the preceding school year; and
656	656	(b) in the case of "Interest & Sinking
657	657	Fund," is the tax rate that, when applied to the current taxable
658	658	value for the district, as certified by the chief appraiser under
659	659	Section 26.01, Tax Code, and as adjusted to reflect changes made by
660	660	the chief appraiser as of the time the notice is prepared, and when
661	661	multiplied by the district's anticipated collection rate, would
662	662	impose taxes in an amount that, when added to state funds to be
663	663	distributed to the district under Chapter 46 and any excess taxes
664	664	collected to service the district's debt during the preceding tax
665	665	year but not used for that purpose during that year, would provide
666	666	the amount required to service the district's debt; and
667	667	(iii) the "Proposed Rate";
668	668	(B) contain fourth and fifth columns aligned with
669	669	the columns required by Paragraph (A) that show, for each row
670	670	required by Paragraph (A):
671	671	(i) the "Local Revenue per Student," which
672	672	is computed by multiplying the district's total taxable value of
673	673	property, as certified by the chief appraiser for the applicable
674	674	school year under Section 26.01, Tax Code, and as adjusted to
675	675	reflect changes made by the chief appraiser as of the time the
676	676	notice is prepared, by the total tax rate, and dividing the product
677	677	by the number of students in average enrollment [daily attendance]
678	678	in the district for the applicable school year; and
679	679	(ii) the "State Revenue per Student," which
680	680	is computed by determining the amount of state aid received or to be
681	681	received by the district under Chapters 43, 46, and 48 and dividing
682	682	that amount by the number of students in average enrollment [daily
683	683	attendance] in the district for the applicable school year; and
684	684	(C) contain an asterisk after each calculation
685	685	for "Interest & Sinking Fund" and a footnote to the section that, in
686	686	reduced type, states "The Interest & Sinking Fund tax revenue is
687	687	used to pay for bonded indebtedness on construction, equipment, or
688	688	both. The bonds, and the tax rate necessary to pay those bonds, were
689	689	approved by the voters of this district.";
690	690	(6) contain a section entitled "Comparison of Proposed
691	691	Levy with Last Year's Levy on Average Residence," which must:
692	692	(A) show in rows the information described by
693	693	Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
694	694	entitled "Last Year" and "This Year":
695	695	(i) "Average Market Value of Residences,"
696	696	determined using the same group of residences for each year;
697	697	(ii) "Average Taxable Value of Residences,"
698	698	determined after taking into account the limitation on the
699	699	appraised value of residences under Section 23.23, Tax Code, and
700	700	after subtracting all homestead exemptions applicable in each year,
701	701	other than exemptions available only to disabled persons or persons
702	702	65 years of age or older or their surviving spouses, and using the
703	703	same group of residences for each year;
704	704	(iii) "Last Year's Rate Versus Proposed
705	705	Rate per $100 Value"; and
706	706	(iv) "Taxes Due on Average Residence,"
707	707	determined using the same group of residences for each year; and
708	708	(B) contain the following information: "Increase
709	709	(Decrease) in Taxes" expressed in dollars and cents, which is
710	710	computed by subtracting the "Taxes Due on Average Residence" for
711	711	the preceding tax year from the "Taxes Due on Average Residence" for
712	712	the current tax year;
713	713	(7) contain the following statement in bold print:
714	714	"Under state law, the dollar amount of school taxes imposed on the
715	715	residence of a person 65 years of age or older or of the surviving
716	716	spouse of such a person, if the surviving spouse was 55 years of age
717	717	or older when the person died, may not be increased above the amount
718	718	paid in the first year after the person turned 65, regardless of
719	719	changes in tax rate or property value.";
720	720	(8) contain the following statement in bold print:
721	721	"Notice of Voter-Approval Rate: The highest tax rate the district
722	722	can adopt before requiring voter approval at an election is (the
723	723	school district voter-approval rate determined under Section
724	724	26.08, Tax Code). This election will be automatically held if the
725	725	district adopts a rate in excess of the voter-approval rate of (the
726	726	school district voter-approval rate)."; and
727	727	(9) contain a section entitled "Fund Balances," which
728	728	must include the estimated amount of interest and sinking fund
729	729	balances and the estimated amount of maintenance and operation or
730	730	general fund balances remaining at the end of the current fiscal
731	731	year that are not encumbered with or by corresponding debt
732	732	obligation, less estimated funds necessary for the operation of the
733	733	district before the receipt of the first payment under Chapter 48 in
734	734	the succeeding school year.
735	735	SECTION 37. Sections 45.0011(a), (d), and (e), Education
736	736	Code, are amended to read as follows:
737	737	(a) This section applies only to an independent school
738	738	district that, at the time of the issuance of obligations and
739	739	execution of credit agreements under this section, has:
740	740	(1) at least 2,000 students in average enrollment
741	741	[daily attendance]; or
742	742	(2) a combined aggregate principal amount of at least
743	743	$50 million of outstanding bonds and voted but unissued bonds.
744	744	(d) A district may not issue bonds to which this section
745	745	applies in an amount greater than the greater of:
746	746	(1) 25 percent of the sum of:
747	747	(A) the aggregate principal amount of all
748	748	district debt payable from ad valorem taxes that is outstanding at
749	749	the time the bonds are issued; and
750	750	(B) the aggregate principal amount of all bonds
751	751	payable from ad valorem taxes that have been authorized but not
752	752	issued;
753	753	(2) $25 million, in a district that has at least 3,500
754	754	but not more than 15,000 students in average enrollment [daily
755	755	attendance]; or
756	756	(3) $50 million, in a district that has more than
757	757	15,000 students in average enrollment [daily attendance].
758	758	(e) In this section, average enrollment [daily attendance]
759	759	is determined in the manner provided by Section 48.005.
760	760	SECTION 38. Section 45.006(a), Education Code, is amended
761	761	to read as follows:
762	762	(a) This section applies only to a school district that:
763	763	(1) has an average enrollment [daily attendance] of
764	764	less than 10,000; and
765	765	(2) is located in whole or part in a municipality with
766	766	a population of less than 25,000 that is located in a county with a
767	767	population of 200,000 or more bordering another county with a
768	768	population of 2.8 million or more.
769	769	SECTION 39. Section 45.105(d), Education Code, is amended
770	770	to read as follows:
771	771	(d) An independent school district that has in its limits a
772	772	municipality with a population of 150,000 or more or that contains
773	773	at least 170 square miles, has $850 million or more assessed value
774	774	of taxable property on the most recent approved tax roll and has a
775	775	growth in average enrollment [daily attendance] of 11 percent or
776	776	more for each of the preceding five years as determined by the
777	777	agency may, in buying school sites or additions to school sites and
778	778	in building school buildings, issue and deliver negotiable or
779	779	nonnegotiable notes representing all or part of the cost to the
780	780	school district of the land or building. The district may secure
781	781	the notes by a vendor's lien or deed of trust lien against the land
782	782	or building. By resolution or order of the governing body made at
783	783	or before the delivery of the notes, the district may set aside and
784	784	appropriate as a trust fund, and the sole and only fund, for the
785	785	payment of the principal of and interest on the notes that part of
786	786	the local school funds, levied and collected by the school district
787	787	in that year or subsequent years, as the governing body determines.
788	788	The aggregate amount of local school funds set aside in or for any
789	789	subsequent year for the retirement of the notes may not exceed, in
790	790	any one subsequent year, 10 percent of the local school funds
791	791	collected during that year. The district may issue the notes only
792	792	if approved by majority vote of the qualified voters voting in an
793	793	election conducted in the manner provided by Section 45.003 for
794	794	approval of bonds.
795	795	SECTION 40. Section 46.003(a), Education Code, is amended
796	796	to read as follows:
797	797	(a) For each year, except as provided by Sections 46.005 and
798	798	46.006, a school district is guaranteed a specified amount per
799	799	student in state and local funds for each cent of tax effort, up to
800	800	the maximum rate under Subsection (b), to pay the principal of and
801	801	interest on eligible bonds issued to construct, acquire, renovate,
802	802	or improve an instructional facility. The amount of state support
803	803	is determined by the formula:
804	804	FYA = (FYL X AE [ADA] X BTR X 100) - (BTR X (DPV/100))
805	805	where:
806	806	"FYA" is the guaranteed facilities yield amount of state
807	807	funds allocated to the district for the year;
808	808	"FYL" is the dollar amount guaranteed level of state and
809	809	local funds per student per cent of tax effort, which is $35 or a
810	810	greater amount for any year provided by appropriation;
811	811	"AE" ["ADA"] is the greater of the number of students in
812	812	average enrollment [daily attendance], as determined under Section
813	813	48.005, in the district or 400;
814	814	"BTR" is the district's bond tax rate for the current year,
815	815	which is determined by dividing the amount budgeted by the district
816	816	for payment of eligible bonds by the quotient of the district's
817	817	taxable value of property as determined under Subchapter M, Chapter
818	818	403, Government Code, or, if applicable, Section 48.258, divided by
819	819	100; and
820	820	"DPV" is the district's taxable value of property as
821	821	determined under Subchapter M, Chapter 403, Government Code, or, if
822	822	applicable, Section 48.258.
823	823	SECTION 41. Section 46.005, Education Code, is amended to
824	824	read as follows:
825	825	Sec. 46.005. LIMITATION ON GUARANTEED AMOUNT. The
826	826	guaranteed amount of state and local funds for a new project that a
827	827	district may be awarded in any state fiscal biennium under Section
828	828	46.003 for a school district may not exceed the lesser of:
829	829	(1) the amount the actual debt service payments the
830	830	district makes in the biennium in which the bonds are issued; or
831	831	(2) the greater of:
832	832	(A) $100,000; or
833	833	(B) the product of the number of students in
834	834	average enrollment [daily attendance] in the district multiplied by
835	835	$250.
836	836	SECTION 42. Section 46.006(g), Education Code, is amended
837	837	to read as follows:
838	838	(g) In this section, "wealth per student" means a school
839	839	district's taxable value of property as determined under Subchapter
840	840	M, Chapter 403, Government Code, or, if applicable, Section 48.258,
841	841	divided by the district's average enrollment [daily attendance] as
842	842	determined under Section 48.005.
843	843	SECTION 43. Section 46.032(a), Education Code, is amended
844	844	to read as follows:
845	845	(a) Each school district is guaranteed a specified amount
846	846	per student in state and local funds for each cent of tax effort to
847	847	pay the principal of and interest on eligible bonds. The amount of
848	848	state support, subject only to the maximum amount under Section
849	849	46.034, is determined by the formula:
850	850	EDA = (EDGL X AE [ADA] X EDTR X 100) - (EDTR X (DPV/100))
851	851	where:
852	852	"EDA" is the amount of state funds to be allocated to the
853	853	district for assistance with existing debt;
854	854	"EDGL" is the dollar amount guaranteed level of state and
855	855	local funds per student per cent of tax effort, which is the lesser
856	856	of:
857	857	(1) $40 or a greater amount for any year provided by
858	858	appropriation; or
859	859	(2) the amount that would result in a total additional
860	860	amount of state funds under this subchapter for the current year
861	861	equal to $60 million in excess of the state funds to which school
862	862	districts would have been entitled under this section if the
863	863	guaranteed level amount were $35;
864	864	"AE" ["ADA"] is the number of students in average enrollment
865	865	[daily attendance], as determined under Section 48.005, in the
866	866	district;
867	867	"EDTR" is the existing debt tax rate of the district, which is
868	868	determined by dividing the amount budgeted by the district for
869	869	payment of eligible bonds by the quotient of the district's taxable
870	870	value of property as determined under Subchapter M, Chapter 403,
871	871	Government Code, or, if applicable, under Section 48.258, divided
872	872	by 100; and
873	873	"DPV" is the district's taxable value of property as
874	874	determined under Subchapter M, Chapter 403, Government Code, or, if
875	875	applicable, under Section 48.258.
876	876	SECTION 44. Sections 48.0051(a) and (b), Education Code,
877	877	are amended to read as follows:
878	878	(a) Subject to Subsection (a-1), the commissioner shall
879	879	adjust the average enrollment [daily attendance] of a school
880	880	district or open-enrollment charter school under Section 48.005 in
881	881	the manner provided by Subsection (b) if the district or school:
882	882	(1) provides the minimum number of minutes of
883	883	operational and instructional time required under Section 25.081
884	884	and commissioner rules adopted under that section over at least 180
885	885	days of instruction; and
886	886	(2) offers an additional 30 days of half-day
887	887	instruction for students enrolled in prekindergarten through fifth
888	888	grade.
889	889	(b) For a school district or open-enrollment charter school
890	890	described by Subsection (a), the commissioner shall increase the
891	891	average enrollment [daily attendance] of the district or school
892	892	under Section 48.005 by the amount equal to one-sixth [that results
893	893	from the quotient] of the enrollment [sum of attendance] by
894	894	students described by Subsection (a)(2) in [for each of] the 30
895	895	additional instructional days of half-day instruction [that are
896	896	provided divided by 180].
897	897	SECTION 45. Section 48.006, Education Code, is amended to
898	898	read as follows:
899	899	Sec. 48.006. AVERAGE ENROLLMENT [DAILY ATTENDANCE] FOR
900	900	DISTRICTS IN DISASTER AREA. (a) The commissioner may adjust the
901	901	average enrollment [daily attendance] of a school district all or
902	902	part of which is located in an area declared a disaster area by the
903	903	governor under Chapter 418, Government Code, if the district
904	904	experiences a decline in average enrollment [daily attendance] that
905	905	is reasonably attributable to the impact of the disaster.
906	906	(b) The adjustment must be sufficient to ensure that the
907	907	district receives funding comparable to the funding that the
908	908	district would have received if the decline in average enrollment
909	909	[daily attendance] reasonably attributable to the impact of the
910	910	disaster had not occurred.
911	911	(c) The commissioner may make the adjustment under this
912	912	section for the two-year period following the date of the
913	913	governor's initial proclamation or executive order declaring the
914	914	state of disaster.
915	915	(d) Section 48.005(b)(2) does not apply to a district that
916	916	receives an adjustment under this section.
917	917	(e) A district that receives an adjustment under this
918	918	section may not receive any additional adjustment under Section
919	919	48.005(d) for the decline in average enrollment [daily attendance]
920	920	on which the adjustment under this section is based.
921	921	(f) For purposes of this title, a district's adjusted
922	922	average enrollment [daily attendance] under this section is
923	923	considered to be the district's average enrollment [daily
924	924	attendance] as determined under Section 48.005.
925	925	SECTION 46. Sections 48.010(a) and (b), Education Code, are
926	926	amended to read as follows:
927	927	(a) Not later than July 1 of each year, the commissioner
928	928	shall determine for each school district whether the estimated
929	929	amount of state and local funding per student in weighted average
930	930	enrollment [daily attendance] to be provided to the district under
931	931	the Foundation School Program for maintenance and operations for
932	932	the following school year is less than the amount provided to the
933	933	district for the 2010-2011 school year. If the amount estimated to
934	934	be provided is less, the commissioner shall certify the percentage
935	935	decrease in funding to be provided to the district.
936	936	(b) In making the determinations regarding funding levels
937	937	required by Subsection (a), the commissioner shall:
938	938	(1) make adjustments as necessary to reflect changes
939	939	in a school district's maintenance and operations tax rate;
940	940	(2) for a district required to reduce its local
941	941	revenue level under Section 48.257, base the determinations on the
942	942	district's net funding levels after deducting any amounts required
943	943	to be expended by the district to comply with Chapter 49; and
944	944	(3) determine a district's weighted average enrollment
945	945	[daily attendance] in accordance with this chapter as it existed on
946	946	January 1, 2011.
947	947	SECTION 47. Sections 48.051(a) and (c), Education Code, are
948	948	amended to read as follows:
949	949	(a) For each student in average enrollment [daily
950	950	attendance], not including the time students spend each day in
951	951	special education programs in an instructional arrangement other
952	952	than mainstream or career and technology education programs, for
953	953	which an additional allotment is made under Subchapter C, a
954	954	district is entitled to an allotment equal to the lesser of $6,160
955	955	or the amount that results from the following formula:
956	956	A = $6,160 X TR/MCR
957	957	where:
958	958	"A" is the allotment to which a district is entitled;
959	959	"TR" is the district's tier one maintenance and operations
960	960	tax rate, as provided by Section 45.0032; and
961	961	"MCR" is the district's maximum compressed tax rate, as
962	962	determined under Section 48.2551.
963	963	(c) During any school year for which the maximum amount of
964	964	the basic allotment provided under Subsection (a) or (b) is greater
965	965	than the maximum amount provided for the preceding school year, a
966	966	school district must use at least 30 percent of the amount, if the
967	967	amount is greater than zero, that equals the product of the average
968	968	enrollment [daily attendance] of the district multiplied by the
969	969	amount of the difference between the district's funding under this
970	970	chapter per student in average enrollment [daily attendance] for
971	971	the current school year and the preceding school year to provide
972	972	compensation increases to full-time district employees other than
973	973	administrators as follows:
974	974	(1) 75 percent must be used to increase the
975	975	compensation paid to classroom teachers, full-time librarians,
976	976	full-time school counselors certified under Subchapter B, Chapter
977	977	21, and full-time school nurses, prioritizing differentiated
978	978	compensation for classroom teachers with more than five years of
979	979	experience; and
980	980	(2) 25 percent may be used as determined by the
981	981	district to increase compensation paid to full-time district
982	982	employees.
983	983	SECTION 48. Sections 48.052(a) and (c), Education Code, are
984	984	amended to read as follows:
985	985	(a) Notwithstanding Section 48.051, a school district that
986	986	has fewer than 130 students in average enrollment [daily
987	987	attendance] shall be provided a basic allotment on the basis of 130
988	988	students in average enrollment [daily attendance] if it offers a
989	989	kindergarten through grade 12 program and has preceding or current
990	990	year's average enrollment [daily attendance] of at least 90
991	991	students or is 30 miles or more by bus route from the nearest high
992	992	school district. A district offering a kindergarten through grade 8
993	993	program whose preceding or current year's average enrollment [daily
994	994	attendance] was at least 50 students or which is 30 miles or more by
995	995	bus route from the nearest high school district shall be provided a
996	996	basic allotment on the basis of 75 students in average enrollment
997	997	[daily attendance]. An average enrollment [daily attendance] of 60
998	998	students shall be the basis of providing the basic allotment if a
999	999	district offers a kindergarten through grade 6 program and has
1000	1000	preceding or current year's average enrollment [daily attendance]
1001	1001	of at least 40 students or is 30 miles or more by bus route from the
1002	1002	nearest high school district.
1003	1003	(c) Notwithstanding Subsection (a) or Section 48.051, a
1004	1004	school district to which this subsection applies, as provided by
1005	1005	Subsection (b), that has fewer than 130 students in average
1006	1006	enrollment [daily attendance] shall be provided a basic allotment
1007	1007	on the basis of 130 students in average enrollment [daily
1008	1008	attendance] if it offers a kindergarten through grade four program
1009	1009	and has preceding or current year's average enrollment [daily
1010	1010	attendance] of at least 75 students or is 30 miles or more by bus
1011	1011	route from the nearest high school district.
1012	1012	SECTION 49. Section 48.101, Education Code, is amended to
1013	1013	read as follows:
1014	1014	Sec. 48.101. SMALL AND MID-SIZED DISTRICT ALLOTMENT. (a)
1015	1015	Small and mid-sized districts are entitled to an annual allotment
1016	1016	in accordance with this section. In this section:
1017	1017	(1) "AA" is the district's annual allotment per
1018	1018	student in average enrollment [daily attendance];
1019	1019	(2) "AE" ["ADA"] is the number of students in average
1020	1020	enrollment [daily attendance] for which the district is entitled to
1021	1021	an allotment under Section 48.051; and
1022	1022	(3) "BA" is the basic allotment determined under
1023	1023	Section 48.051.
1024	1024	(b) A school district that has fewer than 1,600 students in
1025	1025	average enrollment [daily attendance] is entitled to an annual
1026	1026	allotment for each student in average enrollment [daily attendance]
1027	1027	based on the following formula:
1028	1028	AA = ((1,600 - AE [ADA]) X .0004) X BA
1029	1029	(c) A school district that offers a kindergarten through
1030	1030	grade 12 program and has less than 5,000 students in average
1031	1031	enrollment [daily attendance] is entitled to an annual allotment
1032	1032	for each student in average enrollment [daily attendance] based on
1033	1033	the formula, of the following formulas, that results in the
1034	1034	greatest annual allotment:
1035	1035	(1) the formula in Subsection (b), if the district is
1036	1036	eligible for that formula; or
1037	1037	(2) AA = ((5,000 - AE [ADA]) X .000025) X BA.
1038	1038	(d) Instead of the allotment under Subsection (b) or (c)(1),
1039	1039	a school district that has fewer than 300 students in average
1040	1040	enrollment [daily attendance] and is the only school district
1041	1041	located in and operating in a county is entitled to an annual
1042	1042	allotment for each student in average enrollment [daily attendance]
1043	1043	based on the following formula:
1044	1044	AA = ((1,600 - AE [ADA]) X .00047) X BA
1045	1045	SECTION 50. Sections 48.102(a) and (j), Education Code, are
1046	1046	amended to read as follows:
1047	1047	(a) For each student in average enrollment [daily
1048	1048	attendance] in a special education program under Subchapter A,
1049	1049	Chapter 29, in a mainstream instructional arrangement, a school
1050	1050	district is entitled to an annual allotment equal to the basic
1051	1051	allotment, or, if applicable, the sum of the basic allotment and the
1052	1052	allotment under Section 48.101 to which the district is entitled,
1053	1053	multiplied by 1.15. For each full-time equivalent student in
1054	1054	average enrollment [daily attendance] in a special education
1055	1055	program under Subchapter A, Chapter 29, in an instructional
1056	1056	arrangement other than a mainstream instructional arrangement, a
1057	1057	district is entitled to an annual allotment equal to the basic
1058	1058	allotment, or, if applicable, the sum of the basic allotment and the
1059	1059	allotment under Section 48.101 to which the district is entitled,
1060	1060	multiplied by a weight determined according to instructional
1061	1061	arrangement as follows:
1062	1062	Homebound5.0
1063	1063	Hospital class3.0
1064	1064	Speech therapy5.0
1065	1065	Resource room3.0
1066	1066	Self-contained, mild and moderate,
1067	1067	regular campus3.0
1068	1068	Self-contained, severe, regular campus3.0
1069	1069	Off home campus2.7
1070	1070	Nonpublic day school1.7
1071	1071	Vocational adjustment class2.3
1072	1072	(j) A school district that provides an extended year program
1073	1073	required by federal law for special education students who may
1074	1074	regress is entitled to receive funds in an amount equal to 75
1075	1075	percent, or a lesser percentage determined by the commissioner, of
1076	1076	the basic allotment, or, if applicable, the sum of the basic
1077	1077	allotment and the allotment under Section 48.101 to which the
1078	1078	district is entitled for each full-time equivalent student in
1079	1079	average enrollment [daily attendance], multiplied by the amount
1080	1080	designated for the student's instructional arrangement under this
1081	1081	section[, for each day the program is provided divided by the number
1082	1082	of days in the minimum school year]. The total amount of state
1083	1083	funding for extended year services under this section may not
1084	1084	exceed $10 million per year. A school district may use funds
1085	1085	received under this section only in providing an extended year
1086	1086	program.
1087	1087	SECTION 51. Section 48.105(a), Education Code, is amended
1088	1088	to read as follows:
1089	1089	(a) For each student in average enrollment [daily
1090	1090	attendance] in a bilingual education or special language program
1091	1091	under Subchapter B, Chapter 29, a district is entitled to an annual
1092	1092	allotment equal to the basic allotment multiplied by:
1093	1093	(1) for a student of limited English proficiency, as
1094	1094	defined by Section 29.052:
1095	1095	(A) 0.1; or
1096	1096	(B) 0.15 if the student is in a bilingual
1097	1097	education program using a dual language immersion/one-way or
1098	1098	two-way program model; and
1099	1099	(2) for a student not described by Subdivision (1),
1100	1100	0.05 if the student is in a bilingual education program using a dual
1101	1101	language immersion/two-way program model.
1102	1102	SECTION 52. Section 48.106(a), Education Code, is amended
1103	1103	to read as follows:
1104	1104	(a) For each full-time equivalent student in average
1105	1105	enrollment [daily attendance] in an approved career and technology
1106	1106	education program in grades 7 through 12, a district is entitled to:
1107	1107	(1) an annual allotment equal to the basic allotment
1108	1108	multiplied by a weight of 1.35; and
1109	1109	(2) $50 for each of the following in which the student
1110	1110	is enrolled:
1111	1111	(A) two or more advanced career and technology
1112	1112	education classes for a total of three or more credits;
1113	1113	(B) a campus designated as a P-TECH school under
1114	1114	Section 29.556; or
1115	1115	(C) a campus that is a member of the New Tech
1116	1116	Network and that focuses on project-based learning and work-based
1117	1117	education.
1118	1118	SECTION 53. Section 48.107(a), Education Code, is amended
1119	1119	to read as follows:
1120	1120	(a) Except as provided by Subsection (b), for each student
1121	1121	in average enrollment [daily attendance] who is using a public
1122	1122	education grant under Subchapter G, Chapter 29, to attend school in
1123	1123	a district other than the district in which the student resides, the
1124	1124	district in which the student attends school is entitled to an
1125	1125	annual allotment equal to the basic allotment multiplied by a
1126	1126	weight of 0.1.
1127	1127	SECTION 54. Section 48.108(a), Education Code, is amended
1128	1128	to read as follows:
1129	1129	(a) For each student in average enrollment [daily
1130	1130	attendance] in kindergarten through third grade, a school district
1131	1131	is entitled to an annual allotment equal to the basic allotment
1132	1132	multiplied by 0.1 if the student is:
1133	1133	(1) educationally disadvantaged; or
1134	1134	(2) a student of limited English proficiency, as
1135	1135	defined by Section 29.052, and is in a bilingual education or
1136	1136	special language program under Subchapter B, Chapter 29.
1137	1137	SECTION 55. Section 48.111, Education Code, is amended to
1138	1138	read as follows:
1139	1139	Sec. 48.111. FAST GROWTH ALLOTMENT. A school district in
1140	1140	which the growth in student enrollment in the district over the
1141	1141	preceding three school years is in the top quartile of student
1142	1142	enrollment growth in school districts in the state for that period,
1143	1143	as determined by the commissioner, is entitled to an annual
1144	1144	allotment equal to the basic allotment multiplied by 0.04 for each
1145	1145	student in average enrollment [daily attendance].
1146	1146	SECTION 56. Sections 48.152(d) and (e), Education Code, are
1147	1147	amended to read as follows:
1148	1148	(d) For the first school year in which students attend a new
1149	1149	instructional facility, a school district is entitled to an
1150	1150	allotment of $1,000 for each student in average enrollment [daily
1151	1151	attendance] at the facility. For the second school year in which
1152	1152	students attend that instructional facility, a school district is
1153	1153	entitled to an allotment of $1,000 for each additional student in
1154	1154	average enrollment [daily attendance] at the facility.
1155	1155	(e) For purposes of this section, the number of additional
1156	1156	students in average enrollment [daily attendance] at a facility is
1157	1157	the difference between the number of students in average enrollment
1158	1158	[daily attendance] in the current year at that facility and the
1159	1159	number of students in average enrollment [daily attendance] at that
1160	1160	facility in the preceding year.
1161	1161	SECTION 57. Section 48.153, Education Code, is amended to
1162	1162	read as follows:
1163	1163	Sec. 48.153. DROPOUT RECOVERY SCHOOL AND RESIDENTIAL
1164	1164	PLACEMENT FACILITY ALLOTMENT. A school district or open-enrollment
1165	1165	charter school is entitled to $275 for each student in average
1166	1166	enrollment [daily attendance] who:
1167	1167	(1) resides in a residential placement facility; or
1168	1168	(2) is at a district or school or a campus of the
1169	1169	district or school that is designated as a dropout recovery school
1170	1170	under Section 39.0548.
1171	1171	SECTION 58. Section 48.202(a), Education Code, is amended
1172	1172	to read as follows:
1173	1173	(a) Each school district is guaranteed a specified amount
1174	1174	per weighted student in state and local funds for each cent of tax
1175	1175	effort over that required for the district's local fund assignment
1176	1176	up to the maximum level specified in this subchapter. The amount of
1177	1177	state support, subject only to the maximum amount under Section
1178	1178	48.203, is determined by the formula:
1179	1179	GYA = (GL X WAE [WADA] X DTR X 100) - LR
1180	1180	where:
1181	1181	"GYA" is the guaranteed yield amount of state funds to be
1182	1182	allocated to the district;
1183	1183	"GL" is the dollar amount guaranteed level of state and local
1184	1184	funds per weighted student per cent of tax effort, which is an
1185	1185	amount described by Subsection (a-1) or a greater amount for any
1186	1186	year provided by appropriation;
1187	1187	"WAE" ["WADA"] is the number of students in weighted average
1188	1188	enrollment [daily attendance], which is calculated by dividing the
1189	1189	sum of the school district's allotments under Subchapters B and C by
1190	1190	the basic allotment for the applicable year;
1191	1191	"DTR" is the district enrichment tax rate of the school
1192	1192	district, which is determined by subtracting the amounts specified
1193	1193	by Subsection (b) from the total amount of maintenance and
1194	1194	operations taxes collected by the school district for the
1195	1195	applicable school year and dividing the difference by the quotient
1196	1196	of the district's taxable value of property as determined under
1197	1197	Subchapter M, Chapter 403, Government Code, or, if applicable,
1198	1198	under Section 48.258 or by the quotient of the value of "DPV" as
1199	1199	determined under Section 48.256(d) if that subsection applies to
1200	1200	the district, divided by 100; and
1201	1201	"LR" is the local revenue, which is determined by multiplying
1202	1202	"DTR" by the quotient of the district's taxable value of property as
1203	1203	determined under Subchapter M, Chapter 403, Government Code, or, if
1204	1204	applicable, under Section 48.258 or by the quotient of the value of
1205	1205	"DPV" as determined under Section 48.256(d) if that subsection
1206	1206	applies to the district, divided by 100.
1207	1207	SECTION 59. Section 48.252(b), Education Code, is amended
1208	1208	to read as follows:
1209	1209	(b) Notwithstanding any other provision of this chapter or
1210	1210	Chapter 49, a school district subject to this section is entitled to
1211	1211	receive for each student in average enrollment [daily attendance]
1212	1212	at the campus or program described by Subsection (a) an amount
1213	1213	equivalent to the difference, if the difference results in
1214	1214	increased funding, between:
1215	1215	(1) the amount described by Section 12.106; and
1216	1216	(2) the amount to which the district would be entitled
1217	1217	under this chapter.
1218	1218	SECTION 60. Section 48.273(a)(4), Education Code, is
1219	1219	amended to read as follows:
1220	1220	(4) "Wealth per student" means the taxable property
1221	1221	values reported by the comptroller to the commissioner under
1222	1222	Section 48.256 divided by the number of students in average
1223	1223	enrollment [daily attendance].
1224	1224	SECTION 61. Section 48.277(a), Education Code, is amended
1225	1225	to read as follows:
1226	1226	(a) A school district or open-enrollment charter school is
1227	1227	entitled to receive an annual allotment for each student in average
1228	1228	enrollment [daily attendance] in the amount equal to the
1229	1229	difference, if the difference is greater than zero, that results
1230	1230	from subtracting the total maintenance and operations revenue per
1231	1231	student in average enrollment [daily attendance] for the current
1232	1232	school year from the lesser of:
1233	1233	(1) 103 percent of the district's or school's total
1234	1234	maintenance and operations revenue per student in average
1235	1235	enrollment [daily attendance] for the 2019-2020 school year that
1236	1236	the district or school would have received under former Chapters 41
1237	1237	and 42, as those chapters existed on January 1, 2019; or
1238	1238	(2) 128 percent of the statewide average amount of
1239	1239	maintenance and operations revenue per student in average
1240	1240	enrollment [daily attendance] that would have been provided for the
1241	1241	2019-2020 school year under former Chapters 41 and 42, as those
1242	1242	chapters existed on January 1, 2019.
1243	1243	SECTION 62. Section 49.001(2), Education Code, is amended
1244	1244	to read as follows:
1245	1245	(2) "Weighted average enrollment [daily attendance]"
1246	1246	has the meaning assigned by Section 48.202.
1247	1247	SECTION 63. Section 49.002, Education Code, is amended to
1248	1248	read as follows:
1249	1249	Sec. 49.002. OPTIONS TO REDUCE LOCAL REVENUE LEVEL. A
1250	1250	district with a local revenue level in excess of entitlement may
1251	1251	take any combination of the following actions to reduce the
1252	1252	district's revenue level:
1253	1253	(1) consolidation with another district as provided by
1254	1254	Subchapter B;
1255	1255	(2) detachment of territory as provided by Subchapter
1256	1256	C;
1257	1257	(3) purchase of average enrollment [daily attendance]
1258	1258	credit as provided by Subchapter D;
1259	1259	(4) education of nonresident students as provided by
1260	1260	Subchapter E; or
1261	1261	(5) tax base consolidation with another district as
1262	1262	provided by Subchapter F.
1263	1263	SECTION 64. Section 49.003, Education Code, is amended to
1264	1264	read as follows:
1265	1265	Sec. 49.003. INCLUSION OF ATTENDANCE CREDIT AND
1266	1266	NONRESIDENTS IN WEIGHTED AVERAGE ENROLLMENT [DAILY ATTENDANCE]. In
1267	1267	determining whether a school district has a local revenue level in
1268	1268	excess of entitlement, the commissioner shall use:
1269	1269	(1) the district's final weighted average enrollment
1270	1270	[daily attendance]; and
1271	1271	(2) the amount of attendance credit a district
1272	1272	purchases under Subchapter D or the number of nonresident students
1273	1273	a district educates under Subchapter E for a school year.
1274	1274	SECTION 65. Section 49.158(a), Education Code, is amended
1275	1275	to read as follows:
1276	1276	(a) Sections 49.154 and 49.157 apply only to a district
1277	1277	that:
1278	1278	(1) executes an agreement to purchase attendance
1279	1279	credit necessary to reduce the district's local revenue level to
1280	1280	the level established under Section 48.257;
1281	1281	(2) executes an agreement to purchase attendance
1282	1282	credit and an agreement under Subchapter E to contract for the
1283	1283	education of nonresident students who transfer to and are educated
1284	1284	in the district but who are not charged tuition; or
1285	1285	(3) executes an agreement under Subchapter E to
1286	1286	contract for the education of nonresident students:
1287	1287	(A) to an extent that does not provide more than
1288	1288	10 percent of the reduction in local revenue required for the
1289	1289	district to achieve a local revenue level that is equal to or less
1290	1290	than the level established under Section 48.257; and
1291	1291	(B) under which all revenue paid by the district
1292	1292	to other districts, in excess of the reduction in state aid that
1293	1293	results from counting the weighted average enrollment [daily
1294	1294	attendance] of the students served in the contracting district, is
1295	1295	required to be used for funding a consortium of at least three
1296	1296	districts in a county with a population of less than 40,000 that is
1297	1297	formed to support a technology initiative.
1298	1298	SECTION 66. Section 49.201, Education Code, is amended to
1299	1299	read as follows:
1300	1300	Sec. 49.201. AGREEMENT. The board of trustees of a
1301	1301	district with a local revenue level in excess of entitlement may
1302	1302	execute an agreement to educate the students of another district in
1303	1303	a number that, when the weighted average enrollment [daily
1304	1304	attendance] of the students served is added to the weighted average
1305	1305	enrollment [daily attendance] of the contracting district, is
1306	1306	sufficient, in combination with any other actions taken under this
1307	1307	chapter, to reduce the district's local revenue level to a level
1308	1308	that is equal to or less than the level established under Section
1309	1309	48.257. The agreement is not effective unless the commissioner
1310	1310	certifies that the transfer of weighted average enrollment [daily
1311	1311	attendance] will not result in any of the contracting districts'
1312	1312	local revenue level being greater than the level established under
1313	1313	Section 48.257 and that the agreement requires an expenditure per
1314	1314	student in weighted average enrollment [daily attendance] that is
1315	1315	at least equal to the amount per student in weighted average
1316	1316	enrollment [daily attendance] required under Section 49.153.
1317	1317	SECTION 67. Section 49.203, Education Code, is amended to
1318	1318	read as follows:
1319	1319	Sec. 49.203. WEIGHTED AVERAGE ENROLLMENT [WADA] COUNT. For
1320	1320	purposes of Chapter 48, students served under an agreement under
1321	1321	this subchapter are counted only in the weighted average enrollment
1322	1322	[daily attendance] of the district providing the services, except
1323	1323	that students served under an agreement authorized by Section
1324	1324	49.205 are counted in a manner determined by the commissioner.
1325	1325	SECTION 68. Section 49.257(b), Education Code, is amended
1326	1326	to read as follows:
1327	1327	(b) Each component district shall bear a share of the costs
1328	1328	of assessing and collecting taxes in proportion to the component
1329	1329	district's share of weighted average enrollment [daily attendance]
1330	1330	in the consolidated taxing district.
1331	1331	SECTION 69. Section 49.258, Education Code, is amended to
1332	1332	read as follows:
1333	1333	Sec. 49.258. REVENUE DISTRIBUTION. The consolidated taxing
1334	1334	district shall distribute maintenance tax revenue to the component
1335	1335	districts on the basis of the number of students in weighted average
1336	1336	enrollment [daily attendance] in the component districts.
1337	1337	SECTION 70. Sections 49.305(c) and (d), Education Code, are
1338	1338	amended to read as follows:
1339	1339	(c) If the detachment of whole parcels or items of property
1340	1340	as provided by Subsection (a) would result in a district's local
1341	1341	revenue level that is less than the level established under Section
1342	1342	48.257 by more than the product of $10,000 multiplied by weighted
1343	1343	average enrollment [daily attendance], the commissioner may not
1344	1344	detach the last parcel or item of property and shall detach the next
1345	1345	one or more parcels or items of property in descending order of
1346	1346	taxable value that would result in the school district having a
1347	1347	local revenue level that is equal to or less than the level
1348	1348	established under Section 48.257 by not more than the product of
1349	1349	$10,000 multiplied by weighted average enrollment [daily
1350	1350	attendance].
1351	1351	(d) Notwithstanding Subsections (a), (b), and (c), the
1352	1352	commissioner may detach only a portion of a parcel or item of
1353	1353	property if:
1354	1354	(1) it is not possible under this subchapter to reduce
1355	1355	the district's local revenue level to a level that is equal to or
1356	1356	less than the level established under Section 48.257 unless some or
1357	1357	all of the parcel or item of property is detached and the detachment
1358	1358	of the whole parcel or item would result in the district from which
1359	1359	it is detached having a local revenue level that is less than the
1360	1360	level established under Section 48.257 by more than the product of
1361	1361	$10,000 multiplied by weighted average enrollment [daily
1362	1362	attendance]; or
1363	1363	(2) the commissioner determines that a partial
1364	1364	detachment of that parcel or item of property is preferable to the
1365	1365	detachment of one or more other parcels or items having a lower
1366	1366	taxable value in order to minimize the number of parcels or items of
1367	1367	property to be detached consistent with the purposes of this
1368	1368	chapter.
1369	1369	SECTION 71. Section 49.306(i), Education Code, is amended
1370	1370	to read as follows:
1371	1371	(i) The commissioner may order the annexation of a portion
1372	1372	of a parcel or item of property, including a portion of property
1373	1373	treated as a whole parcel or item under Subsection (h), if:
1374	1374	(1) the annexation of the whole parcel or item would
1375	1375	result in the district eligible to receive it in the appropriate
1376	1376	priority order provided by this section having a local revenue
1377	1377	level greater than the amount by which the product of $10,000
1378	1378	multiplied by weighted average enrollment [daily attendance]
1379	1379	exceeds the taxable value of property necessary to generate
1380	1380	maintenance and operations tax revenue in the amount equal to the
1381	1381	district's entitlement under Section 48.202(a-1)(2); or
1382	1382	(2) the commissioner determines that annexation of
1383	1383	portions of the parcel or item would reduce disparities in district
1384	1384	taxable values of property necessary to generate maintenance and
1385	1385	operations tax revenue in the amount equal to a district's
1386	1386	entitlement under Section 48.202(a-1)(2) more efficiently than
1387	1387	would be possible if the parcel or item were annexed as a whole.
1388	1388	SECTION 72. Section 49.311, Education Code, is amended to
1389	1389	read as follows:
1390	1390	Sec. 49.311. STUDENT ATTENDANCE. A student who is a
1391	1391	resident of real property detached from a school district may
1392	1392	choose to attend school in that district or in the district to which
1393	1393	the property is annexed. For purposes of determining average
1394	1394	enrollment [daily attendance] under Section 48.005, the student
1395	1395	shall be counted in the district to which the property is annexed.
1396	1396	If the student chooses to attend school in the district from which
1397	1397	the property is detached, the state shall withhold any foundation
1398	1398	school funds from the district to which the property is annexed and
1399	1399	shall allocate to the district in which the student is attending
1400	1400	school those funds and the amount of funds equal to the difference
1401	1401	between the state funds the district is receiving for the student
1402	1402	and the district's cost in educating the student.
1403	1403	SECTION 73. Section 49.354(e), Education Code, is amended
1404	1404	to read as follows:
1405	1405	(e) A restored district's proportionate share of fund
1406	1406	balances, personal property, or indebtedness is equal to the
1407	1407	proportion that the number of students in average enrollment [daily
1408	1408	attendance] in the restored district bears to the number of
1409	1409	students in average enrollment [daily attendance] in the
1410	1410	consolidated district.
1411	1411	SECTION 74. Section 403.104(d), Government Code, is amended
1412	1412	to read as follows:
1413	1413	(d) The proportionate share of an independent school
1414	1414	district is determined by multiplying the total amount of the
1415	1415	payment available for distribution to school districts by the ratio
1416	1416	that the average number of [daily attendance for] students who
1417	1417	reside in the county and are enrolled in [who attend] that school
1418	1418	district bears to the average number of [daily attendance for] all
1419	1419	students who reside in the county and are enrolled in [who attend]
1420	1420	any independent school district. However, if there are fewer than
1421	1421	10 independent school districts located in whole or part in the
1422	1422	county and if an independent school district would receive under
1423	1423	this formula less than 10 percent of the total payment available for
1424	1424	distribution to independent school districts, the school
1425	1425	district's share shall be increased to 10 percent of the total
1426	1426	payment and the shares of the school districts that would receive
1427	1427	more than 10 percent under the formula shall be reduced
1428	1428	proportionately, but not to an amount less than 10 percent of the
1429	1429	total payment. [Each independent school district shall develop a
1430	1430	reasonable method for determining the average daily attendance for
1431	1431	students who reside in the county and who attend the school
1432	1432	district.]
1433	1433	SECTION 75. Section 1371.001(4), Government Code, is
1434	1434	amended to read as follows:
1435	1435	(4) "Issuer" means:
1436	1436	(A) a home-rule municipality that:
1437	1437	(i) adopted its charter under Section 5,
1438	1438	Article XI, Texas Constitution;
1439	1439	(ii) has a population of 50,000 or more; and
1440	1440	(iii) has outstanding long-term
1441	1441	indebtedness that is rated by a nationally recognized rating agency
1442	1442	for municipal securities in one of the four highest rating
1443	1443	categories for a long-term obligation;
1444	1444	(B) a conservation and reclamation district
1445	1445	created and organized as a river authority under Section 52,
1446	1446	Article III, or Section 59, Article XVI, Texas Constitution;
1447	1447	(C) a joint powers agency organized and operating
1448	1448	under Chapter 163, Utilities Code;
1449	1449	(D) a metropolitan rapid transit authority,
1450	1450	regional transportation authority, or coordinated county
1451	1451	transportation authority created, organized, or operating under
1452	1452	Chapter 451, 452, or 460, Transportation Code;
1453	1453	(E) a conservation and reclamation district
1454	1454	organized or operating as a navigation district under Section 52,
1455	1455	Article III, or Section 59, Article XVI, Texas Constitution;
1456	1456	(F) a district organized or operating under
1457	1457	Section 59, Article XVI, Texas Constitution, that has all or part of
1458	1458	two or more municipalities within its boundaries;
1459	1459	(G) a state agency, including a state institution
1460	1460	of higher education;
1461	1461	(H) a hospital authority created or operating
1462	1462	under Chapter 262 or 264, Health and Safety Code, in a county that:
1463	1463	(i) has a population of more than 3.3
1464	1464	million; or
1465	1465	(ii) is included, in whole or in part, in a
1466	1466	standard metropolitan statistical area of this state that includes
1467	1467	a county with a population of more than 2.2 million;
1468	1468	(I) a hospital district in a county that has a
1469	1469	population of more than two million;
1470	1470	(J) a nonprofit corporation organized to
1471	1471	exercise the powers of a higher education loan authority under
1472	1472	Section 53B.47(e), Education Code;
1473	1473	(K) a county:
1474	1474	(i) that has a population of 3.3 million or
1475	1475	more; or
1476	1476	(ii) that, on the date of issuance of
1477	1477	obligations under this chapter, has authorized, outstanding, or any
1478	1478	combination of authorized and outstanding, indebtedness of at least
1479	1479	$100 million secured by and payable from the county's ad valorem
1480	1480	taxes and the authorized long-term indebtedness of which is rated
1481	1481	by a nationally recognized rating agency of securities issued by
1482	1482	local governments in one of the four highest rating categories for a
1483	1483	long-term obligation;
1484	1484	(L) an independent school district that has an
1485	1485	average enrollment [daily attendance] of 50,000 or more as
1486	1486	determined under Section 48.005, Education Code;
1487	1487	(M) a municipality or county operating under
1488	1488	Chapter 334, Local Government Code;
1489	1489	(N) a district created under Chapter 335, Local
1490	1490	Government Code;
1491	1491	(O) a junior college district that has a total
1492	1492	headcount enrollment of 40,000 or more based on enrollment in the
1493	1493	most recent regular semester; or
1494	1494	(P) an issuer, as defined by Section 1201.002,
1495	1495	that has:
1496	1496	(i) a principal amount of at least $100
1497	1497	million in outstanding long-term indebtedness, in long-term
1498	1498	indebtedness proposed to be issued, or in a combination of
1499	1499	outstanding or proposed long-term indebtedness; and
1500	1500	(ii) some amount of long-term indebtedness
1501	1501	outstanding or proposed to be issued that is rated in one of the
1502	1502	four highest rating categories for long-term debt instruments by a
1503	1503	nationally recognized rating agency for municipal securities,
1504	1504	without regard to the effect of any credit agreement or other form
1505	1505	of credit enhancement entered into in connection with the
1506	1506	obligation.
1507	1507	SECTION 76. Section 1431.001(3), Government Code, is
1508	1508	amended to read as follows:
1509	1509	(3) "Eligible school district" means an independent
1510	1510	school district that has an average enrollment [daily attendance]
1511	1511	of 190,000 or more as determined under Section 48.005, Education
1512	1512	Code.
1513	1513	SECTION 77. Section 325.011(a), Local Government Code, is
1514	1514	amended to read as follows:
1515	1515	(a) The district is governed by a board of directors
1516	1516	composed of five members, with two directors appointed by the
1517	1517	commissioners court of the county, two directors appointed by the
1518	1518	governing body of the municipality having the largest population in
1519	1519	the county, and one director appointed by the governing body of the
1520	1520	school district with the largest number of students in average
1521	1521	enrollment [daily attendance] in the county. The board shall
1522	1522	manage the district and administer this chapter.
1523	1523	SECTION 78. Section 313.027(i), Tax Code, is amended to
1524	1524	read as follows:
1525	1525	(i) A person and the school district may not enter into an
1526	1526	agreement under which the person agrees to provide supplemental
1527	1527	payments to a school district or any other entity on behalf of a
1528	1528	school district in an amount that exceeds an amount equal to the
1529	1529	greater of $100 per student per year in average enrollment [daily
1530	1530	attendance], as defined by Section 48.005, Education Code, or
1531	1531	$50,000 per year, or for a period that exceeds the period beginning
1532	1532	with the period described by Section 313.021(4) and ending December
1533	1533	31 of the third tax year after the date the person's eligibility for
1534	1534	a limitation under this chapter expires. This limit does not apply
1535	1535	to amounts described by Subsection (f)(1) or (2).
1536	1536	SECTION 79. Section 1, Article 2688d, Vernon's Texas Civil
1537	1537	Statutes, is amended to read as follows:
1538	1538	Section 1. In all counties of the State where, according to
1539	1539	the preceding annual statistical report of the schools said county
1540	1540	has not more than four (4) school districts, with one (1) of such
1541	1541	districts comprising more than half of the county and having more
1542	1542	than two thousand (2,000) pupils in average enrollment [daily
1543	1543	attendance] in the one (1) district alone, and such district having
1544	1544	an assessed valuation of more than Twenty Million Dollars
1545	1545	($20,000,000) and where there is only one (1) common school
1546	1546	district in such county with an average enrollment [daily
1547	1547	attendance] of less than sixteen (16), the office of county
1548	1548	superintendent is hereby abolished, to be effective at the end of
1549	1549	the term of the incumbent county superintendent, as is now provided
1550	1550	by law.
1551	1551	SECTION 80. The following provisions of the Education Code
1552	1552	are repealed:
1553	1553	(1) Section 29.0822(d-1); and
1554	1554	(2) Section 48.007.
1555	1555	SECTION 81. This Act takes effect September 1, 2021.