Texas 2023 - 88th Regular

Texas House Bill HB2841 Compare Versions

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1	1	88R522 KJE-D
2	2	By: Rogers H.B. No. 2841
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]. In
51	51	addition to providing the adjustment for the amount of
52	52	instructional days during the semester in which the calamity first
53	53	occurred, an adjustment under this section may only be provided
54	54	based on a particular calamity for an additional amount of
55	55	instructional days equivalent to one school year. The commissioner
56	56	may divide the adjustment between two consecutive school years.
57	57	(e) For each school year, the commissioner shall adjust the
58	58	average enrollment [daily attendance] of school districts that are
59	59	entitled to funding on the basis of an adjusted average enrollment
60	60	[daily attendance] under Subsection (b)(2) so that:
61	61	(1) all districts are funded on the basis of the same
62	62	percentage of the preceding year's actual average enrollment [daily
63	63	attendance]; and
64	64	(2) the total cost to the state does not exceed the
65	65	amount specifically appropriated for that year for purposes of
66	66	Subsection (b)(2).
67	67	(f) An open-enrollment charter school is not entitled to
68	68	funding based on an adjustment under Subsection (b)(2).
69	69	(g) If a student may receive course credit toward the
70	70	student's high school academic requirements and toward the
71	71	student's higher education academic requirements for a single
72	72	course, including a course provided under Section 28.009 by a
73	73	public institution of higher education, the time during which the
74	74	student attends the course shall be counted as part of the minimum
75	75	number of instructional hours required for a student to be
76	76	considered a full-time student in average enrollment [daily
77	77	attendance] for purposes of this section.
78	78	[(g-1) The commissioner shall adopt rules to calculate
79	79	average daily attendance for students participating in a blended
80	80	learning program in which classroom instruction is supplemented
81	81	with applied workforce learning opportunities, including
82	82	participation of students in internships, externships, and
83	83	apprenticeships.]
84	84	(h) Time [Subject to rules adopted by the commissioner under
85	85	Section 48.007(b), time] that a student participates in an
86	86	off-campus instructional program provided by an entity other than a
87	87	school district or open-enrollment charter school and approved by
88	88	the commissioner in accordance with commissioner rule [under
89	89	Section 48.007(a)] shall be counted as part of the minimum number of
90	90	instructional hours required for a student to be considered a
91	91	full-time student in average enrollment [daily attendance] for
92	92	purposes of this section.
93	93	(h-1) Subject to rules adopted by the commissioner under
94	94	Section 48.007(b), time that a student participates in a course or
95	95	program provided under Section 48.0071(b) shall be counted as part
96	96	of the minimum number of instructional hours required for a student
97	97	to be considered a full-time student in average daily attendance
98	98	for purposes of this section. This subsection expires September 1,
99	99	2023.
100	100	(i) A district or a charter school operating under Chapter
101	101	12 that operates a prekindergarten program is eligible to receive
102	102	one-half of average enrollment [daily attendance] under Subsection
103	103	(a) if the district's or charter school's prekindergarten program
104	104	provides at least 32,400 minutes of instructional time to students.
105	105	(j) A district or charter school is eligible to earn full
106	106	average enrollment [daily attendance] under Subsection (a) if the
107	107	district or school provides at least 43,200 minutes of
108	108	instructional time to students enrolled in:
109	109	(1) a dropout recovery school or program operating
110	110	under Section 12.1141(c) or Section 39.0548;
111	111	(2) an alternative education program operating under
112	112	Section 37.008;
113	113	(3) a school program located at a day treatment
114	114	facility, residential treatment facility, psychiatric hospital, or
115	115	medical hospital;
116	116	(4) a school program offered at a correctional
117	117	facility; or
118	118	(5) a school operating under Subchapter G, Chapter 12.
119	119	(k) A charter school operating under a charter granted under
120	120	Chapter 12 before January 1, 2015, is eligible to earn full average
121	121	enrollment [daily attendance] under Subsection (a), as that
122	122	subsection existed immediately before January 1, 2015, for:
123	123	(1) all campuses of the charter school operating
124	124	before January 1, 2015; and
125	125	(2) any campus or site expansion approved on or after
126	126	January 1, 2015, provided that the charter school received an
127	127	academic accountability performance rating of C or higher, and the
128	128	campus or site expansion is approved by the commissioner.
129	129	(l) A school district campus or charter school described by
130	130	Subsection (j) may operate more than one program and be eligible for
131	131	full average enrollment [daily attendance] for each program if the
132	132	programs operated by the district campus or charter school satisfy
133	133	all applicable state and federal requirements.
134	134	(m) The commissioner shall adopt rules necessary to
135	135	implement this section, including rules that:
136	136	(1) determine the method to calculate the average
137	137	number of students enrolled in a school district during a school
138	138	year;
139	139	(2) establish the minimum amount of instructional time
140	140	per day that allows a school district or charter school to be
141	141	eligible for full average enrollment [daily attendance], which may
142	142	differ based on the instructional program offered by the district
143	143	or charter school;
144	144	(3) [(2)] establish the requirements necessary for a
145	145	school district or charter school to be eligible for one-half of
146	146	average enrollment [daily attendance], which may differ based on
147	147	the instructional program offered by the district or charter
148	148	school;
149	149	(4) [(3)] proportionally reduce the average
150	150	enrollment [daily attendance] for a school district if any campus
151	151	or instructional program in the district provides fewer than the
152	152	required minimum minutes of instruction to students; and
153	153	(5) [(4)] allow a grade or course repeated under
154	154	Section 28.02124 to qualify for average enrollment [daily
155	155	attendance] even if the student previously passed or earned credit
156	156	for the grade or course, if the grade or course would otherwise be
157	157	eligible.
158	158	(m-1) Except for students enrolled in programs or courses
159	159	offered under Chapter 30A or Section 48.053, a school district or
160	160	open-enrollment charter school may not count for purposes of
161	161	calculating the district's or school's average daily attendance a
162	162	student who received virtual or remote instruction for a majority
163	163	of the instructional days during the preceding school year if the
164	164	student:
165	165	(1) did not achieve satisfactory performance or higher
166	166	or the equivalent in the preceding school year on:
167	167	(A) each assessment instrument administered to
168	168	the student under Section 39.023 or 39.025; or
169	169	(B) if the student was not administered an
170	170	assessment instrument that was required to be administered to the
171	171	student under Section 39.023 or 39.025 during the preceding school
172	172	year, an assessment instrument designed to show grade-level
173	173	proficiency in the essential knowledge and skills identified under
174	174	Section 28.002 by the State Board of Education for the student's
175	175	grade level;
176	176	(2) had a number of unexcused absences that exceeds 10
177	177	percent of the number of instructional days in the preceding school
178	178	year; or
179	179	(3) did not earn a grade of C or higher or the
180	180	equivalent in each of the foundation curriculum courses taken
181	181	virtually or remotely in the preceding school year.
182	182	(m-2) Subsection (m-1) and this subsection expire September
183	183	1, 2023.
184	184	(n) To assist school districts in implementing this section
185	185	as amended by H.B. 2442, Acts of the 85th Legislature, Regular
186	186	Session, 2017, the commissioner may waive a requirement of this
187	187	section or adopt rules to implement this section.
188	188	SECTION 2. Section 7.062(a), Education Code, is amended to
189	189	read as follows:
190	190	(a) In this section, "wealth per student" means a school
191	191	district's taxable value of property as determined under Subchapter
192	192	M, Chapter 403, Government Code, or, if applicable, Section 48.258,
193	193	divided by the district's average enrollment [daily attendance] as
194	194	determined under Section 48.005.
195	195	SECTION 3. Section 11.052(f), Education Code, is amended to
196	196	read as follows:
197	197	(f) If single-member trustee districts are adopted or
198	198	approved as provided by this section, the board shall divide the
199	199	school district into the appropriate number of trustee districts,
200	200	based on the number of members of the board that are to be elected
201	201	from single-member trustee districts, and shall number each trustee
202	202	district. The trustee districts must be compact and contiguous and
203	203	must be as nearly as practicable of equal population. In a district
204	204	with 150,000 or more students in average enrollment [daily
205	205	attendance], the boundary of a trustee district may not cross a
206	206	county election precinct boundary except at a point at which the
207	207	boundary of the school district crosses the county election
208	208	precinct boundary. Trustee districts must be drawn not later than
209	209	the 90th day before the date of the first election of trustees from
210	210	those districts.
211	211	SECTION 4. Sections 12.106(a), (a-2), and (d), Education
212	212	Code, are amended to read as follows:
213	213	(a) A charter holder is entitled to receive for the
214	214	open-enrollment charter school funding under Chapter 48 equal to
215	215	the amount of funding per student in weighted average enrollment
216	216	[daily attendance], excluding the adjustment under Section 48.052,
217	217	the funding under Sections 48.101, 48.110, 48.111, and 48.112, and
218	218	enrichment funding under Section 48.202(a), to which the charter
219	219	holder would be entitled for the school under Chapter 48 if the
220	220	school were a school district without a tier one local share for
221	221	purposes of Section 48.266.
222	222	(a-2) In addition to the funding provided by Subsection (a),
223	223	a charter holder is entitled to receive for the open-enrollment
224	224	charter school an allotment per student in average enrollment
225	225	[daily attendance] in an amount equal to the difference between:
226	226	(1) the product of:
227	227	(A) the quotient of:
228	228	(i) the total amount of funding provided to
229	229	eligible school districts under Section 48.101(b) or (c); and
230	230	(ii) the total number of students in
231	231	average enrollment [daily attendance] in school districts that
232	232	receive an allotment under Section 48.101(b) or (c); and
233	233	(B) the sum of one and the quotient of:
234	234	(i) the total number of students in average
235	235	enrollment [daily attendance] in school districts that receive an
236	236	allotment under Section 48.101(b) or (c); and
237	237	(ii) the total number of students in
238	238	average enrollment [daily attendance] in school districts
239	239	statewide; and
240	240	(2) $125.
241	241	(d) Subject to Subsection (e), in addition to other amounts
242	242	provided by this section, a charter holder is entitled to receive,
243	243	for the open-enrollment charter school, funding per student in
244	244	average enrollment [daily attendance] in an amount equal to the
245	245	guaranteed level of state and local funds per student per cent of
246	246	tax effort under Section 46.032(a) multiplied by the lesser of:
247	247	(1) the state average interest and sinking fund tax
248	248	rate imposed by school districts for the current year; or
249	249	(2) a rate that would result in a total amount to which
250	250	charter schools are entitled under this subsection for the current
251	251	year equal to $60 million.
252	252	SECTION 5. Sections 12.263(a), (b), and (c), Education
253	253	Code, as effective September 1, 2023, are amended to read as
254	254	follows:
255	255	(a) Except as otherwise provided by this section, funding
256	256	for an adult education program operated under a charter granted
257	257	under this subchapter is an amount per participant through the
258	258	Foundation School Program equal to the amount of state funding per
259	259	student in weighted average enrollment [daily attendance] that
260	260	would be allocated under the Foundation School Program for the
261	261	student's attendance at an open-enrollment charter school in
262	262	accordance with Section 12.106.
263	263	(b) For purposes of determining the average enrollment
264	264	[daily attendance] of an adult education program operated under a
265	265	charter granted under this subchapter, a student is considered to
266	266	be in average enrollment [daily attendance, with a 100 percent
267	267	attendance rate,] for:
268	268	(1) all of the instructional days of the school year,
269	269	if the student is enrolled for at least 75 percent of the school
270	270	year;
271	271	(2) half of the instructional days of the school year,
272	272	if the student is enrolled for at least 50 percent but less than 75
273	273	percent of the school year;
274	274	(3) a quarter of the instructional days of the school
275	275	year, if the student is enrolled for at least 25 percent but less
276	276	than 50 percent of the school year; or
277	277	(4) one-tenth of the instructional days of the school
278	278	year, if the student is enrolled for at least 10 percent but less
279	279	than 25 percent of the school year.
280	280	(c) A student enrolled in an adult education program
281	281	operated under a charter granted under this subchapter for less
282	282	than 10 percent of a school year may not be counted toward the adult
283	283	education program's average enrollment [daily attendance] for that
284	284	school year.
285	285	SECTION 6. Section 13.051(c), Education Code, is amended to
286	286	read as follows:
287	287	(c) Territory that does not have residents may be detached
288	288	from a school district and annexed to another school district if:
289	289	(1) the total taxable value of the property in the
290	290	territory according to the most recent certified appraisal roll for
291	291	each school district is not greater than:
292	292	(A) five percent of the district's taxable value
293	293	of all property in that district as determined under Subchapter M,
294	294	Chapter 403, Government Code; and
295	295	(B) $5,000 property value per student in average
296	296	enrollment [daily attendance] as determined under Section 48.005;
297	297	and
298	298	(2) the school district from which the property will
299	299	be detached does not own any real property located in the territory.
300	300	SECTION 7. Section 13.102, Education Code, is amended to
301	301	read as follows:
302	302	Sec. 13.102. MINIMUM AREA AND ENROLLMENT [ATTENDANCE]
303	303	REQUIREMENTS. A new district may not be created with an area of
304	304	less than nine square miles or fewer than 8,000 students in average
305	305	enrollment [daily attendance], and a district may not be reduced to
306	306	an area of less than nine square miles or fewer than 8,000 students
307	307	in average enrollment [daily attendance].
308	308	SECTION 8. Section 13.283, Education Code, is amended to
309	309	read as follows:
310	310	Sec. 13.283. PAYMENTS REDUCED. The incentive aid payments
311	311	shall be reduced in direct proportion to any reduction in the
312	312	average enrollment [daily attendance] as determined under Section
313	313	48.005 of the reorganized school district for the preceding year.
314	314	SECTION 9. Section 19.009(d-2), Education Code, is amended
315	315	to read as follows:
316	316	(d-2) Beginning with the 2009-2010 school year, the
317	317	district shall increase the monthly salary of each classroom
318	318	teacher, full-time speech pathologist, full-time librarian,
319	319	full-time school counselor certified under Subchapter B, Chapter
320	320	21, and full-time school nurse employed by the district by the
321	321	greater of:
322	322	(1) $80; or
323	323	(2) the maximum uniform amount that, when combined
324	324	with any resulting increases in the amount of contributions made by
325	325	the district for social security coverage for the specified
326	326	employees or by the district on behalf of the specified employees
327	327	under Section 825.405, Government Code, may be provided using an
328	328	amount equal to the product of $60 multiplied by the number of
329	329	students in weighted average enrollment [daily attendance] in the
330	330	district during the 2009-2010 school year.
331	331	SECTION 10. Section 25.038, Education Code, is amended to
332	332	read as follows:
333	333	Sec. 25.038. TUITION FEE FOR TRANSFER STUDENTS. The
334	334	receiving school district may charge a tuition fee to the extent
335	335	that the district's actual expenditure per student in average
336	336	enrollment [daily attendance], as determined by its board of
337	337	trustees, exceeds the sum the district benefits from state aid
338	338	sources as provided by Section 25.037. However, unless a tuition
339	339	fee is prescribed and set out in a transfer agreement before its
340	340	execution by the parties, an increase in tuition charge may not be
341	341	made for the year of that transfer that exceeds the tuition charge,
342	342	if any, of the preceding school year.
343	343	SECTION 11. Section 25.045(c), Education Code, is amended
344	344	to read as follows:
345	345	(c) A student who transfers to another school district under
346	346	this section may not be charged tuition. The student is included in
347	347	the average enrollment [daily attendance] of the district in which
348	348	the student attends school.
349	349	SECTION 12. Sections 25.081(e) and (f), Education Code, are
350	350	amended to read as follows:
351	351	(e) A school district or education program is exempt from
352	352	the minimum minutes of operation requirement if the district's or
353	353	program's average enrollment [daily attendance] is calculated
354	354	under Section 48.005(j).
355	355	(f) The commissioner may proportionally reduce the amount
356	356	of funding a district receives under Chapter 46, 48, or 49 and the
357	357	average enrollment [daily attendance] calculation for the district
358	358	if the district operates on a calendar that provides fewer minutes
359	359	of operation than required under Subsection (a).
360	360	SECTION 13. Section 25.087(d), Education Code, is amended
361	361	to read as follows:
362	362	(d) A student whose absence is excused under Subsection (b),
363	363	(b-1), (b-2), (b-4), (b-5), (b-7), or (c) may not be penalized for
364	364	that absence and shall be counted as if the student attended school
365	365	for purposes of funding under Chapter 48 [calculating the average
366	366	daily attendance of students in the school district]. A student
367	367	whose absence is excused under Subsection (b), (b-1), (b-2), (b-4),
368	368	(b-5), (b-7), or (c) shall be allowed a reasonable time to make up
369	369	school work missed on those days. If the student satisfactorily
370	370	completes the school work, the day of absence shall be counted as a
371	371	day of compulsory attendance.
372	372	SECTION 14. Section 25.111, Education Code, is amended to
373	373	read as follows:
374	374	Sec. 25.111. STUDENT/TEACHER RATIOS. Except as provided by
375	375	Section 25.112, each school district must employ a sufficient
376	376	number of teachers certified under Subchapter B, Chapter 21, to
377	377	maintain an average ratio of not less than one teacher for each 20
378	378	students in average enrollment [daily attendance].
379	379	SECTION 15. Sections 25.112(a) and (b), Education Code, are
380	380	amended to read as follows:
381	381	(a) Except as otherwise authorized by this section, a school
382	382	district may not enroll more than 22 students in a prekindergarten,
383	383	kindergarten, first, second, third, or fourth grade class. That
384	384	limitation does not apply during:
385	385	(1) any 12-week period of the school year selected by
386	386	the district, in the case of a district whose average enrollment
387	387	[daily attendance] is adjusted under Section 48.005(c); or
388	388	(2) the last 12 weeks of any school year in the case of
389	389	any other district.
390	390	(b) Not later than the 30th day after the first day of the
391	391	12-week period for which a district whose average enrollment [daily
392	392	attendance] is adjusted under Section 48.005(c) is claiming an
393	393	exemption under Subsection (a), the district shall notify the
394	394	commissioner in writing that the district is claiming an exemption
395	395	for the period stated in the notice.
396	396	SECTION 16. Section 29.008(b), Education Code, is amended
397	397	to read as follows:
398	398	(b) Except as provided by Subsection (c), costs of an
399	399	approved contract for residential placement may be paid from a
400	400	combination of federal, state, and local funds. The local share of
401	401	the total contract cost for each student is that portion of the
402	402	local tax effort that exceeds the district's local fund assignment
403	403	under Section 48.256, divided by the average enrollment [daily
404	404	attendance] in the district. If the contract involves a private
405	405	facility, the state share of the total contract cost is that amount
406	406	remaining after subtracting the local share. If the contract
407	407	involves a public facility, the state share is that amount
408	408	remaining after subtracting the local share from the portion of the
409	409	contract that involves the costs of instructional and related
410	410	services. For purposes of this subsection, "local tax effort"
411	411	means the total amount of money generated by taxes imposed for debt
412	412	service and maintenance and operation less any amounts paid into a
413	413	tax increment fund under Chapter 311, Tax Code.
414	414	SECTION 17. Section 29.014(b), Education Code, is amended
415	415	to read as follows:
416	416	(b) A school district to which this section applies may
417	417	operate an extended year program for a period not to exceed 45 days.
418	418	[The district's average daily attendance shall be computed for the
419	419	regular school year plus the extended year.]
420	420	SECTION 18. Section 29.081(f), Education Code, is amended
421	421	to read as follows:
422	422	(f) The commissioner shall include students enrolled in
423	423	[attendance in] a program under Subsection (e) in the computation
424	424	of the district's average enrollment [daily attendance] for funding
425	425	purposes.
426	426	SECTION 19. Section 29.0822(d), Education Code, is amended
427	427	to read as follows:
428	428	(d) The commissioner may adopt rules for the administration
429	429	of this section, including rules establishing application
430	430	requirements. [Subject to Subsection (d-1), the commissioner shall
431	431	calculate average daily attendance for students served under this
432	432	section. The commissioner shall allow accumulations of hours of
433	433	instruction for students whose schedule would not otherwise allow
434	434	full state funding. Funding under this subsection shall be
435	435	determined based on the number of instructional days in the school
436	436	district calendar and a seven-hour school day, but attendance may
437	437	be cumulated over a school year, including any summer or vacation
438	438	session. The attendance of students who accumulate less than the
439	439	number of attendance hours required under this subsection shall be
440	440	proportionately reduced for funding purposes. The commissioner
441	441	may:
442	442	[(1) set maximum funding amounts for an individual
443	443	course under this section; and
444	444	[(2) limit funding for the attendance of a student
445	445	described by Subsection (a)(3) in a course under this section to
446	446	funding only for the attendance necessary for the student to earn
447	447	class credit that, as a result of attendance requirements under
448	448	Section 25.092, the student would not otherwise be able to receive
449	449	without retaking the class.]
450	450	SECTION 20. Section 29.184(b), Education Code, is amended
451	451	to read as follows:
452	452	(b) A student who attends career and technology classes at
453	453	another school under a contract authorized by Subsection (a) is
454	454	included in the average enrollment [daily attendance] of the
455	455	district in which the student is regularly enrolled.
456	456	SECTION 21. Sections 29.203(a) and (c), Education Code, are
457	457	amended to read as follows:
458	458	(a) A student who under this subchapter uses a public
459	459	education grant to attend a public school in a school district other
460	460	than the district in which the student resides is included in the
461	461	average enrollment [daily attendance] of the district in which the
462	462	student attends school.
463	463	(c) A school district is entitled to additional facilities
464	464	assistance under Section 48.301 if the district agrees to:
465	465	(1) accept a number of students using public education
466	466	grants that is at least one percent of the district's average
467	467	enrollment [daily attendance] for the preceding school year; and
468	468	(2) provide services to each student until the student
469	469	either voluntarily decides to attend a school in a different
470	470	district or graduates from high school.
471	471	SECTION 22. Section 29.403(b), Education Code, is amended
472	472	to read as follows:
473	473	(b) A student who is enrolled in a program under this
474	474	subchapter is included in determining the average enrollment [daily
475	475	attendance] under Section 48.005 of the partnering school district.
476	476	SECTION 23. Section 29.457(a), Education Code, is amended
477	477	to read as follows:
478	478	(a) In addition to other funding to which a school district
479	479	is entitled under this code, each district in which alleged
480	480	offender residents attend school is entitled to an annual allotment
481	481	of $5,100 for each resident in average enrollment [daily
482	482	attendance] or a different amount for any year provided by
483	483	appropriation.
484	484	SECTION 24. Section 30.003(b), Education Code, is amended
485	485	to read as follows:
486	486	(b) If the student is admitted to the school for a full-time
487	487	program for the equivalent of two long semesters, the district's
488	488	share of the cost is an amount equal to the dollar amount of
489	489	maintenance and debt service taxes imposed by the district for that
490	490	year divided by the district's average enrollment [daily
491	491	attendance] for the preceding year.
492	492	SECTION 25. Section 30.102(a), Education Code, is amended
493	493	to read as follows:
494	494	(a) The Texas Juvenile Justice Department is entitled to
495	495	receive the state available school fund apportionment based on the
496	496	average enrollment [daily attendance] in the department's
497	497	educational programs of students who are at least three years of age
498	498	and not older than 21 years of age.
499	499	SECTION 26. Section 30A.151(f), Education Code, is amended
500	500	to read as follows:
501	501	(f) For a full-time electronic course program offered
502	502	through the state virtual school network for a grade level at or
503	503	above grade level three but not above grade level eight, a school
504	504	district or open-enrollment charter school is entitled to receive
505	505	federal, state, and local funding for a student enrolled in the
506	506	program in an amount equal to the funding the district or school
507	507	would otherwise receive for a student enrolled in the district or
508	508	school. [The district or school may calculate the average daily
509	509	attendance of a student enrolled in the program based on:
510	510	[(1) hours of contact with the student;
511	511	[(2) the student's successful completion of a course;
512	512	or
513	513	[(3) a method approved by the commissioner.]
514	514	SECTION 27. Section 33.157, Education Code, is amended to
515	515	read as follows:
516	516	Sec. 33.157. PARTICIPATION IN PROGRAM. An elementary or
517	517	secondary school receiving funding under Section 33.156 shall
518	518	participate in a local Communities In Schools program if the number
519	519	of students enrolled in the school who are at risk of dropping out
520	520	of school is equal to at least 10 percent of the number of students
521	521	in average enrollment [daily attendance] at the school, as
522	522	determined by the agency.
523	523	SECTION 28. Section 37.0061, Education Code, is amended to
524	524	read as follows:
525	525	Sec. 37.0061. FUNDING FOR ALTERNATIVE EDUCATION SERVICES IN
526	526	JUVENILE RESIDENTIAL FACILITIES. A school district that provides
527	527	education services to pre-adjudicated and post-adjudicated
528	528	students who are confined by court order in a juvenile residential
529	529	facility operated by a juvenile board is entitled to count such
530	530	students in the district's average enrollment [daily attendance]
531	531	for purposes of receipt of state funds under the Foundation School
532	532	Program. If the district has a local revenue level greater than the
533	533	guaranteed local revenue level but less than the level established
534	534	under Section 48.257, the district in which the student is enrolled
535	535	on the date a court orders the student to be confined to a juvenile
536	536	residential facility shall transfer to the district providing
537	537	education services an amount equal to the difference between the
538	538	average Foundation School Program costs per student of the district
539	539	providing education services and the sum of the state aid and the
540	540	money from the available school fund received by the district that
541	541	is attributable to the student for the portion of the school year
542	542	for which the district provides education services to the student.
543	543	SECTION 29. Section 37.008(f), Education Code, is amended
544	544	to read as follows:
545	545	(f) A student removed to a disciplinary alternative
546	546	education program is counted in computing the average enrollment
547	547	[daily attendance] of students in the district [for the student's
548	548	time in actual attendance in the program].
549	549	SECTION 30. Section 37.011(a-4), Education Code, is amended
550	550	to read as follows:
551	551	(a-4) A school district located in a county considered to be
552	552	a county with a population of 125,000 or less under Subsection (a-3)
553	553	shall provide educational services to a student who is expelled
554	554	from school under this chapter. The district is entitled to count
555	555	the student in the district's average enrollment [daily attendance]
556	556	for purposes of receipt of state funds under the Foundation School
557	557	Program. An educational placement under this section may include:
558	558	(1) the district's disciplinary alternative education
559	559	program; or
560	560	(2) a contracted placement with:
561	561	(A) another school district;
562	562	(B) an open-enrollment charter school;
563	563	(C) an institution of higher education;
564	564	(D) an adult literacy council; or
565	565	(E) a community organization that can provide an
566	566	educational program that allows the student to complete the credits
567	567	required for high school graduation.
568	568	SECTION 31. Sections 39.027(c) and (f), Education Code, are
569	569	amended to read as follows:
570	570	(c) The commissioner shall develop and adopt a process for
571	571	reviewing the exemption process of a school district or shared
572	572	services arrangement that gives an exemption under Subsection
573	573	(a)(1) as follows:
574	574	(1) to more than five percent of the students in the
575	575	special education program, in the case of a district or shared
576	576	services arrangement with an average enrollment [daily attendance]
577	577	of at least 1,600;
578	578	(2) to more than 10 percent of the students in the
579	579	special education program, in the case of a district or shared
580	580	services arrangement with an average enrollment [daily attendance]
581	581	of at least 190 and not more than 1,599; or
582	582	(3) to the greater of more than 10 percent of the
583	583	students in the special education program or to at least five
584	584	students in the special education program, in the case of a district
585	585	or shared services arrangement with an average enrollment [daily
586	586	attendance] of not more than 189.
587	587	(f) In this section, "average enrollment [daily
588	588	attendance]" is computed in the manner provided by Section 48.005.
589	589	SECTION 32. Section 39.053(g-1), Education Code, is amended
590	590	to read as follows:
591	591	(g-1) In computing dropout and completion rates such as high
592	592	school graduation rates under Subsection (c)(1)(B)(ix), the
593	593	commissioner shall exclude:
594	594	(1) students who are ordered by a court to attend a
595	595	high school equivalency certificate program but who have not yet
596	596	earned a high school equivalency certificate;
597	597	(2) students who were previously reported to the state
598	598	as dropouts, including a student who is reported as a dropout,
599	599	reenrolls, and drops out again, regardless of the number of times of
600	600	reenrollment and dropping out;
601	601	(3) students in attendance who are not in membership
602	602	for purposes of average enrollment [daily attendance];
603	603	(4) students whose initial enrollment in a school in
604	604	the United States in grades 7 through 12 was as an unschooled asylee
605	605	or refugee as defined by Section 39.027(a-1);
606	606	(5) students who are detained at a county
607	607	pre-adjudication or post-adjudication juvenile detention facility
608	608	and:
609	609	(A) in the district exclusively as a function of
610	610	having been detained at the facility but are otherwise not students
611	611	of the district in which the facility is located; or
612	612	(B) provided services by an open-enrollment
613	613	charter school exclusively as the result of having been detained at
614	614	the facility;
615	615	(6) students who are incarcerated in state jails and
616	616	federal penitentiaries as adults and as persons certified to stand
617	617	trial as adults; and
618	618	(7) students who have suffered a condition, injury, or
619	619	illness that requires substantial medical care and leaves the
620	620	student:
621	621	(A) unable to attend school; and
622	622	(B) assigned to a medical or residential
623	623	treatment facility.
624	624	SECTION 33. Section 39.262(a), Education Code, is amended
625	625	to read as follows:
626	626	(a) The governor may present a financial award to the
627	627	schools or districts that the commissioner determines have
628	628	demonstrated the highest levels of sustained success or the
629	629	greatest improvement in achieving the education goals. For each
630	630	student in average enrollment [daily attendance], each of those
631	631	schools or districts is entitled to an amount set for the award for
632	632	which the school or district is selected by the commissioner,
633	633	subject to any limitation set by the commissioner on the total
634	634	amount that may be awarded to a school or district.
635	635	SECTION 34. Section 43.001(c), Education Code, is amended
636	636	to read as follows:
637	637	(c) The term "scholastic population" in Subsection (b) or
638	638	any other law governing the apportionment, distribution, and
639	639	transfer of the available school fund means all students of school
640	640	age [enrolled] in average enrollment [daily attendance] the
641	641	preceding school year in the public elementary and high school
642	642	grades of school districts within or under the jurisdiction of a
643	643	county of this state.
644	644	SECTION 35. Section 44.004(c), Education Code, is amended
645	645	to read as follows:
646	646	(c) The notice of public meeting to discuss and adopt the
647	647	budget and the proposed tax rate may not be smaller than one-quarter
648	648	page of a standard-size or a tabloid-size newspaper, and the
649	649	headline on the notice must be in 18-point or larger type. Subject
650	650	to Subsection (d), the notice must:
651	651	(1) contain a statement in the following form:
652	652	"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
653	653	"The (name of school district) will hold a public meeting at
654	654	(time, date, year) in (name of room, building, physical location,
655	655	city, state). The purpose of this meeting is to discuss the school
656	656	district's budget that will determine the tax rate that will be
657	657	adopted. Public participation in the discussion is invited." The
658	658	statement of the purpose of the meeting must be in bold type. In
659	659	reduced type, the notice must state: "The tax rate that is
660	660	ultimately adopted at this meeting or at a separate meeting at a
661	661	later date may not exceed the proposed rate shown below unless the
662	662	district publishes a revised notice containing the same information
663	663	and comparisons set out below and holds another public meeting to
664	664	discuss the revised notice." In addition, in reduced type, the
665	665	notice must state: "Visit Texas.gov/PropertyTaxes to find a link to
666	666	your local property tax database on which you can easily access
667	667	information regarding your property taxes, including information
668	668	about proposed tax rates and scheduled public hearings of each
669	669	entity that taxes your property.";
670	670	(2) contain a section entitled "Comparison of Proposed
671	671	Budget with Last Year's Budget," which must show the difference,
672	672	expressed as a percent increase or decrease, as applicable, in the
673	673	amounts budgeted for the preceding fiscal year and the amount
674	674	budgeted for the fiscal year that begins in the current tax year for
675	675	each of the following:
676	676	(A) maintenance and operations;
677	677	(B) debt service; and
678	678	(C) total expenditures;
679	679	(3) contain a section entitled "Total Appraised Value
680	680	and Total Taxable Value," which must show the total appraised value
681	681	and the total taxable value of all property and the total appraised
682	682	value and the total taxable value of new property taxable by the
683	683	district in the preceding tax year and the current tax year as
684	684	calculated under Section 26.04, Tax Code;
685	685	(4) contain a statement of the total amount of the
686	686	outstanding and unpaid bonded indebtedness of the school district;
687	687	(5) contain a section entitled "Comparison of Proposed
688	688	Rates with Last Year's Rates," which must:
689	689	(A) show in rows the tax rates described by
690	690	Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
691	691	property, for columns entitled "Maintenance & Operations,"
692	692	"Interest & Sinking Fund," and "Total," which is the sum of
693	693	"Maintenance & Operations" and "Interest & Sinking Fund":
694	694	(i) the school district's "Last Year's
695	695	Rate";
696	696	(ii) the "Rate to Maintain Same Level of
697	697	Maintenance & Operations Revenue & Pay Debt Service," which:
698	698	(a) in the case of "Maintenance &
699	699	Operations," is the tax rate that, when applied to the current
700	700	taxable value for the district, as certified by the chief appraiser
701	701	under Section 26.01, Tax Code, and as adjusted to reflect changes
702	702	made by the chief appraiser as of the time the notice is prepared,
703	703	would impose taxes in an amount that, when added to state funds to
704	704	be distributed to the district under Chapter 48, would provide the
705	705	same amount of maintenance and operations taxes and state funds
706	706	distributed under Chapter 48 per student in average enrollment
707	707	[daily attendance] for the applicable school year that was
708	708	available to the district in the preceding school year; and
709	709	(b) in the case of "Interest & Sinking
710	710	Fund," is the tax rate that, when applied to the current taxable
711	711	value for the district, as certified by the chief appraiser under
712	712	Section 26.01, Tax Code, and as adjusted to reflect changes made by
713	713	the chief appraiser as of the time the notice is prepared, and when
714	714	multiplied by the district's anticipated collection rate, would
715	715	impose taxes in an amount that, when added to state funds to be
716	716	distributed to the district under Chapter 46 and any excess taxes
717	717	collected to service the district's debt during the preceding tax
718	718	year but not used for that purpose during that year, would provide
719	719	the amount required to service the district's debt; and
720	720	(iii) the "Proposed Rate";
721	721	(B) contain fourth and fifth columns aligned with
722	722	the columns required by Paragraph (A) that show, for each row
723	723	required by Paragraph (A):
724	724	(i) the "Local Revenue per Student," which
725	725	is computed by multiplying the district's total taxable value of
726	726	property, as certified by the chief appraiser for the applicable
727	727	school year under Section 26.01, Tax Code, and as adjusted to
728	728	reflect changes made by the chief appraiser as of the time the
729	729	notice is prepared, by the total tax rate, and dividing the product
730	730	by the number of students in average enrollment [daily attendance]
731	731	in the district for the applicable school year; and
732	732	(ii) the "State Revenue per Student," which
733	733	is computed by determining the amount of state aid received or to be
734	734	received by the district under Chapters 43, 46, and 48 and dividing
735	735	that amount by the number of students in average enrollment [daily
736	736	attendance] in the district for the applicable school year; and
737	737	(C) contain an asterisk after each calculation
738	738	for "Interest & Sinking Fund" and a footnote to the section that, in
739	739	reduced type, states "The Interest & Sinking Fund tax revenue is
740	740	used to pay for bonded indebtedness on construction, equipment, or
741	741	both. The bonds, and the tax rate necessary to pay those bonds, were
742	742	approved by the voters of this district.";
743	743	(6) contain a section entitled "Comparison of Proposed
744	744	Levy with Last Year's Levy on Average Residence," which must:
745	745	(A) show in rows the information described by
746	746	Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
747	747	entitled "Last Year" and "This Year":
748	748	(i) "Average Market Value of Residences,"
749	749	determined using the same group of residences for each year;
750	750	(ii) "Average Taxable Value of Residences,"
751	751	determined after taking into account the limitation on the
752	752	appraised value of residences under Section 23.23, Tax Code, and
753	753	after subtracting all homestead exemptions applicable in each year,
754	754	other than exemptions available only to disabled persons or persons
755	755	65 years of age or older or their surviving spouses, and using the
756	756	same group of residences for each year;
757	757	(iii) "Last Year's Rate Versus Proposed
758	758	Rate per $100 Value"; and
759	759	(iv) "Taxes Due on Average Residence,"
760	760	determined using the same group of residences for each year; and
761	761	(B) contain the following information: "Increase
762	762	(Decrease) in Taxes" expressed in dollars and cents, which is
763	763	computed by subtracting the "Taxes Due on Average Residence" for
764	764	the preceding tax year from the "Taxes Due on Average Residence" for
765	765	the current tax year;
766	766	(7) contain the following statement in bold print:
767	767	"Under state law, the dollar amount of school taxes imposed on the
768	768	residence of a person 65 years of age or older or of the surviving
769	769	spouse of such a person, if the surviving spouse was 55 years of age
770	770	or older when the person died, may not be increased above the amount
771	771	paid in the first year after the person turned 65, regardless of
772	772	changes in tax rate or property value.";
773	773	(8) contain the following statement in bold print:
774	774	"Notice of Voter-Approval Rate: The highest tax rate the district
775	775	can adopt before requiring voter approval at an election is (the
776	776	school district voter-approval rate determined under Section
777	777	26.08, Tax Code). This election will be automatically held if the
778	778	district adopts a rate in excess of the voter-approval rate of (the
779	779	school district voter-approval rate)."; and
780	780	(9) contain a section entitled "Fund Balances," which
781	781	must include the estimated amount of interest and sinking fund
782	782	balances and the estimated amount of maintenance and operation or
783	783	general fund balances remaining at the end of the current fiscal
784	784	year that are not encumbered with or by corresponding debt
785	785	obligation, less estimated funds necessary for the operation of the
786	786	district before the receipt of the first payment under Chapter 48 in
787	787	the succeeding school year.
788	788	SECTION 36. Sections 45.0011(a), (d), and (e), Education
789	789	Code, are amended to read as follows:
790	790	(a) This section applies only to an independent school
791	791	district that, at the time of the issuance of obligations and
792	792	execution of credit agreements under this section, has:
793	793	(1) at least 2,000 students in average enrollment
794	794	[daily attendance]; or
795	795	(2) a combined aggregate principal amount of at least
796	796	$50 million of outstanding bonds and voted but unissued bonds.
797	797	(d) A district may not issue bonds to which this section
798	798	applies in an amount greater than the greater of:
799	799	(1) 25 percent of the sum of:
800	800	(A) the aggregate principal amount of all
801	801	district debt payable from ad valorem taxes that is outstanding at
802	802	the time the bonds are issued; and
803	803	(B) the aggregate principal amount of all bonds
804	804	payable from ad valorem taxes that have been authorized but not
805	805	issued;
806	806	(2) $25 million, in a district that has at least 3,500
807	807	but not more than 15,000 students in average enrollment [daily
808	808	attendance]; or
809	809	(3) $50 million, in a district that has more than
810	810	15,000 students in average enrollment [daily attendance].
811	811	(e) In this section, average enrollment [daily attendance]
812	812	is determined in the manner provided by Section 48.005.
813	813	SECTION 37. Section 45.006(a), Education Code, is amended
814	814	to read as follows:
815	815	(a) This section applies only to a school district that:
816	816	(1) has an average enrollment [daily attendance] of
817	817	less than 10,000; and
818	818	(2) is located in whole or part in a municipality with
819	819	a population of less than 25,000 that is located in a county with a
820	820	population of 200,000 or more bordering another county with a
821	821	population of 2.8 million or more.
822	822	SECTION 38. Section 45.105(d), Education Code, is amended
823	823	to read as follows:
824	824	(d) An independent school district that has in its limits a
825	825	municipality with a population of 150,000 or more or that contains
826	826	at least 170 square miles, has $850 million or more assessed value
827	827	of taxable property on the most recent approved tax roll and has a
828	828	growth in average enrollment [daily attendance] of 11 percent or
829	829	more for each of the preceding five years as determined by the
830	830	agency may, in buying school sites or additions to school sites and
831	831	in building school buildings, issue and deliver negotiable or
832	832	nonnegotiable notes representing all or part of the cost to the
833	833	school district of the land or building. The district may secure
834	834	the notes by a vendor's lien or deed of trust lien against the land
835	835	or building. By resolution or order of the governing body made at
836	836	or before the delivery of the notes, the district may set aside and
837	837	appropriate as a trust fund, and the sole and only fund, for the
838	838	payment of the principal of and interest on the notes that part of
839	839	the local school funds, levied and collected by the school district
840	840	in that year or subsequent years, as the governing body determines.
841	841	The aggregate amount of local school funds set aside in or for any
842	842	subsequent year for the retirement of the notes may not exceed, in
843	843	any one subsequent year, 10 percent of the local school funds
844	844	collected during that year. The district may issue the notes only
845	845	if approved by majority vote of the qualified voters voting in an
846	846	election conducted in the manner provided by Section 45.003 for
847	847	approval of bonds.
848	848	SECTION 39. Section 46.003(a), Education Code, is amended
849	849	to read as follows:
850	850	(a) For each year, except as provided by Sections 46.005 and
851	851	46.006, a school district is guaranteed a specified amount per
852	852	student in state and local funds for each cent of tax effort, up to
853	853	the maximum rate under Subsection (b), to pay the principal of and
854	854	interest on eligible bonds issued to construct, acquire, renovate,
855	855	or improve an instructional facility. The amount of state support
856	856	is determined by the formula:
857	857	FYA = (FYL X AE [ADA] X BTR X 100) - (BTR X (DPV/100))
858	858	where:
859	859	"FYA" is the guaranteed facilities yield amount of state
860	860	funds allocated to the district for the year;
861	861	"FYL" is the dollar amount guaranteed level of state and
862	862	local funds per student per cent of tax effort, which is $35 or a
863	863	greater amount for any year provided by appropriation;
864	864	"AE" ["ADA"] is the greater of the number of students in
865	865	average enrollment [daily attendance], as determined under Section
866	866	48.005, in the district or 400;
867	867	"BTR" is the district's bond tax rate for the current year,
868	868	which is determined by dividing the amount budgeted by the district
869	869	for payment of eligible bonds by the quotient of the district's
870	870	taxable value of property as determined under Subchapter M, Chapter
871	871	403, Government Code, or, if applicable, Section 48.258, divided by
872	872	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, Section 48.258.
876	876	SECTION 40. Section 46.005, Education Code, is amended to
877	877	read as follows:
878	878	Sec. 46.005. LIMITATION ON GUARANTEED AMOUNT. The
879	879	guaranteed amount of state and local funds for a new project that a
880	880	district may be awarded in any state fiscal biennium under Section
881	881	46.003 for a school district may not exceed the lesser of:
882	882	(1) the amount the actual debt service payments the
883	883	district makes in the biennium in which the bonds are issued; or
884	884	(2) the greater of:
885	885	(A) $100,000; or
886	886	(B) the product of the number of students in
887	887	average enrollment [daily attendance] in the district multiplied by
888	888	$250.
889	889	SECTION 41. Section 46.006(g), Education Code, is amended
890	890	to read as follows:
891	891	(g) In this section, "wealth per student" means a school
892	892	district's taxable value of property as determined under Subchapter
893	893	M, Chapter 403, Government Code, or, if applicable, Section 48.258,
894	894	divided by the district's average enrollment [daily attendance] as
895	895	determined under Section 48.005.
896	896	SECTION 42. Section 46.032(a), Education Code, is amended
897	897	to read as follows:
898	898	(a) Each school district is guaranteed a specified amount
899	899	per student in state and local funds for each cent of tax effort to
900	900	pay the principal of and interest on eligible bonds. The amount of
901	901	state support, subject only to the maximum amount under Section
902	902	46.034, is determined by the formula:
903	903	EDA = (EDGL X AE [ADA] X EDTR X 100) - (EDTR X (DPV/100))
904	904	where:
905	905	"EDA" is the amount of state funds to be allocated to the
906	906	district for assistance with existing debt;
907	907	"EDGL" is the dollar amount guaranteed level of state and
908	908	local funds per student per cent of tax effort, which is the lesser
909	909	of:
910	910	(1) $40 or a greater amount for any year provided by
911	911	appropriation; or
912	912	(2) the amount that would result in a total additional
913	913	amount of state funds under this subchapter for the current year
914	914	equal to $60 million in excess of the state funds to which school
915	915	districts would have been entitled under this section if the
916	916	guaranteed level amount were $35;
917	917	"AE" ["ADA"] is the number of students in average enrollment
918	918	[daily attendance], as determined under Section 48.005, in the
919	919	district;
920	920	"EDTR" is the existing debt tax rate of the district, which is
921	921	determined by dividing the amount budgeted by the district for
922	922	payment of eligible bonds by the quotient of the district's taxable
923	923	value of property as determined under Subchapter M, Chapter 403,
924	924	Government Code, or, if applicable, under Section 48.258, divided
925	925	by 100; and
926	926	"DPV" is the district's taxable value of property as
927	927	determined under Subchapter M, Chapter 403, Government Code, or, if
928	928	applicable, under Section 48.258.
929	929	SECTION 43. Sections 48.0051(a) and (b), Education Code,
930	930	are amended to read as follows:
931	931	(a) The [Subject to Subsection (a-1), the] commissioner
932	932	shall adjust the average enrollment [daily attendance] of a school
933	933	district or open-enrollment charter school under Section 48.005 in
934	934	the manner provided by Subsection (b) if the district or school:
935	935	(1) provides the minimum number of minutes of
936	936	operational and instructional time required under Section 25.081
937	937	and commissioner rules adopted under that section over at least 180
938	938	days of instruction; and
939	939	(2) offers an additional 30 days of half-day
940	940	instruction for students enrolled in prekindergarten through fifth
941	941	grade.
942	942	(b) For a school district or open-enrollment charter school
943	943	described by Subsection (a), the commissioner shall increase the
944	944	average enrollment [daily attendance] of the district or school
945	945	under Section 48.005 by the amount equal to one-sixth [that results
946	946	from the quotient] of the enrollment [sum of attendance] by
947	947	students described by Subsection (a)(2) in [for each of] the 30
948	948	additional instructional days of half-day instruction [that are
949	949	provided divided by 180].
950	950	SECTION 44. Section 48.006, Education Code, is amended to
951	951	read as follows:
952	952	Sec. 48.006. AVERAGE ENROLLMENT [DAILY ATTENDANCE] FOR
953	953	DISTRICTS IN DISASTER AREA. (a) The commissioner may adjust the
954	954	average enrollment [daily attendance] of a school district all or
955	955	part of which is located in an area declared a disaster area by the
956	956	governor under Chapter 418, Government Code, if the district
957	957	experiences a decline in average enrollment [daily attendance] that
958	958	is reasonably attributable to the impact of the disaster.
959	959	(b) The adjustment must be sufficient to ensure that the
960	960	district receives funding comparable to the funding that the
961	961	district would have received if the decline in average enrollment
962	962	[daily attendance] reasonably attributable to the impact of the
963	963	disaster had not occurred.
964	964	(c) The commissioner may make the adjustment under this
965	965	section for the two-year period following the date of the
966	966	governor's initial proclamation or executive order declaring the
967	967	state of disaster.
968	968	(d) Section 48.005(b)(2) does not apply to a district that
969	969	receives an adjustment under this section.
970	970	(e) A district that receives an adjustment under this
971	971	section may not receive any additional adjustment under Section
972	972	48.005(d) for the decline in average enrollment [daily attendance]
973	973	on which the adjustment under this section is based.
974	974	(f) For purposes of this title, a district's adjusted
975	975	average enrollment [daily attendance] under this section is
976	976	considered to be the district's average enrollment [daily
977	977	attendance] as determined under Section 48.005.
978	978	SECTION 45. Sections 48.010(a) and (b), Education Code, are
979	979	amended to read as follows:
980	980	(a) Not later than July 1 of each year, the commissioner
981	981	shall determine for each school district whether the estimated
982	982	amount of state and local funding per student in weighted average
983	983	enrollment [daily attendance] to be provided to the district under
984	984	the Foundation School Program for maintenance and operations for
985	985	the following school year is less than the amount provided to the
986	986	district for the 2010-2011 school year. If the amount estimated to
987	987	be provided is less, the commissioner shall certify the percentage
988	988	decrease in funding to be provided to the district.
989	989	(b) In making the determinations regarding funding levels
990	990	required by Subsection (a), the commissioner shall:
991	991	(1) make adjustments as necessary to reflect changes
992	992	in a school district's maintenance and operations tax rate;
993	993	(2) for a district required to reduce its local
994	994	revenue level under Section 48.257, base the determinations on the
995	995	district's net funding levels after deducting any amounts required
996	996	to be expended by the district to comply with Chapter 49; and
997	997	(3) determine a district's weighted average enrollment
998	998	[daily attendance] in accordance with this chapter as it existed on
999	999	January 1, 2011.
1000	1000	SECTION 46. Sections 48.051(a) and (c), Education Code, are
1001	1001	amended to read as follows:
1002	1002	(a) For each student in average enrollment [daily
1003	1003	attendance], not including the time students spend each day in
1004	1004	special education programs in an instructional arrangement other
1005	1005	than mainstream or career and technology education programs, for
1006	1006	which an additional allotment is made under Subchapter C, a
1007	1007	district is entitled to an allotment equal to the lesser of $6,160
1008	1008	or the amount that results from the following formula:
1009	1009	A = $6,160 X TR/MCR
1010	1010	where:
1011	1011	"A" is the allotment to which a district is entitled;
1012	1012	"TR" is the district's tier one maintenance and operations
1013	1013	tax rate, as provided by Section 45.0032; and
1014	1014	"MCR" is the district's maximum compressed tax rate, as
1015	1015	determined under Section 48.2551.
1016	1016	(c) During any school year for which the maximum amount of
1017	1017	the basic allotment provided under Subsection (a) or (b) is greater
1018	1018	than the maximum amount provided for the preceding school year, a
1019	1019	school district must use at least 30 percent of the amount, if the
1020	1020	amount is greater than zero, that equals the product of the average
1021	1021	enrollment [daily attendance] of the district multiplied by the
1022	1022	amount of the difference between the district's funding under this
1023	1023	chapter per student in average enrollment [daily attendance] for
1024	1024	the current school year and the preceding school year to provide
1025	1025	compensation increases to full-time district employees other than
1026	1026	administrators as follows:
1027	1027	(1) 75 percent must be used to increase the
1028	1028	compensation paid to classroom teachers, full-time librarians,
1029	1029	full-time school counselors certified under Subchapter B, Chapter
1030	1030	21, and full-time school nurses, prioritizing differentiated
1031	1031	compensation for classroom teachers with more than five years of
1032	1032	experience; and
1033	1033	(2) 25 percent may be used as determined by the
1034	1034	district to increase compensation paid to full-time district
1035	1035	employees.
1036	1036	SECTION 47. Sections 48.052(a) and (c), Education Code, are
1037	1037	amended to read as follows:
1038	1038	(a) Notwithstanding Section 48.051, a school district that
1039	1039	has fewer than 130 students in average enrollment [daily
1040	1040	attendance] shall be provided a basic allotment on the basis of 130
1041	1041	students in average enrollment [daily attendance] if it offers a
1042	1042	kindergarten through grade 12 program and has preceding or current
1043	1043	year's average enrollment [daily attendance] of at least 90
1044	1044	students or is 30 miles or more by bus route from the nearest high
1045	1045	school district. A district offering a kindergarten through grade 8
1046	1046	program whose preceding or current year's average enrollment [daily
1047	1047	attendance] was at least 50 students or which is 30 miles or more by
1048	1048	bus route from the nearest high school district shall be provided a
1049	1049	basic allotment on the basis of 75 students in average enrollment
1050	1050	[daily attendance]. An average enrollment [daily attendance] of 60
1051	1051	students shall be the basis of providing the basic allotment if a
1052	1052	district offers a kindergarten through grade 6 program and has
1053	1053	preceding or current year's average enrollment [daily attendance]
1054	1054	of at least 40 students or is 30 miles or more by bus route from the
1055	1055	nearest high school district.
1056	1056	(c) Notwithstanding Subsection (a) or Section 48.051, a
1057	1057	school district to which this subsection applies, as provided by
1058	1058	Subsection (b), that has fewer than 130 students in average
1059	1059	enrollment [daily attendance] shall be provided a basic allotment
1060	1060	on the basis of 130 students in average enrollment [daily
1061	1061	attendance] if it offers a kindergarten through grade four program
1062	1062	and has preceding or current year's average enrollment [daily
1063	1063	attendance] of at least 75 students or is 30 miles or more by bus
1064	1064	route from the nearest high school district.
1065	1065	SECTION 48. Section 48.101, Education Code, is amended to
1066	1066	read as follows:
1067	1067	Sec. 48.101. SMALL AND MID-SIZED DISTRICT ALLOTMENT. (a)
1068	1068	Small and mid-sized districts are entitled to an annual allotment
1069	1069	in accordance with this section. In this section:
1070	1070	(1) "AA" is the district's annual allotment per
1071	1071	student in average enrollment [daily attendance];
1072	1072	(2) "AE" ["ADA"] is the number of students in average
1073	1073	enrollment [daily attendance] for which the district is entitled to
1074	1074	an allotment under Section 48.051; and
1075	1075	(3) "BA" is the basic allotment determined under
1076	1076	Section 48.051.
1077	1077	(b) A school district that has fewer than 1,600 students in
1078	1078	average enrollment [daily attendance] is entitled to an annual
1079	1079	allotment for each student in average enrollment [daily attendance]
1080	1080	based on the following formula:
1081	1081	AA = ((1,600 - AE [ADA]) X .0004) X BA
1082	1082	(c) A school district that offers a kindergarten through
1083	1083	grade 12 program and has less than 5,000 students in average
1084	1084	enrollment [daily attendance] is entitled to an annual allotment
1085	1085	for each student in average enrollment [daily attendance] based on
1086	1086	the formula, of the following formulas, that results in the
1087	1087	greatest annual allotment:
1088	1088	(1) the formula in Subsection (b), if the district is
1089	1089	eligible for that formula; or
1090	1090	(2) AA = ((5,000 - AE [ADA]) X .000025) X BA.
1091	1091	(d) Instead of the allotment under Subsection (b) or (c)(1),
1092	1092	a school district that has fewer than 300 students in average
1093	1093	enrollment [daily attendance] and is the only school district
1094	1094	located in and operating in a county is entitled to an annual
1095	1095	allotment for each student in average enrollment [daily attendance]
1096	1096	based on the following formula:
1097	1097	AA = ((1,600 - AE [ADA]) X .00047) X BA
1098	1098	SECTION 49. Sections 48.102(a) and (j), Education Code, are
1099	1099	amended to read as follows:
1100	1100	(a) For each student in average enrollment [daily
1101	1101	attendance] in a special education program under Subchapter A,
1102	1102	Chapter 29, in a mainstream instructional arrangement, a school
1103	1103	district is entitled to an annual allotment equal to the basic
1104	1104	allotment, or, if applicable, the sum of the basic allotment and the
1105	1105	allotment under Section 48.101 to which the district is entitled,
1106	1106	multiplied by 1.15. For each full-time equivalent student in
1107	1107	average enrollment [daily attendance] in a special education
1108	1108	program under Subchapter A, Chapter 29, in an instructional
1109	1109	arrangement other than a mainstream instructional arrangement, a
1110	1110	district is entitled to an annual allotment equal to the basic
1111	1111	allotment, or, if applicable, the sum of the basic allotment and the
1112	1112	allotment under Section 48.101 to which the district is entitled,
1113	1113	multiplied by a weight determined according to instructional
1114	1114	arrangement as follows:
1115	1115	Homebound5.0
1116	1116	Hospital class3.0
1117	1117	Speech therapy5.0
1118	1118	Resource room3.0
1119	1119	Self-contained, mild and moderate,
1120	1120	regular campus3.0
1121	1121	Self-contained, severe, regular campus3.0
1122	1122	Off home campus2.7
1123	1123	Nonpublic day school1.7
1124	1124	Vocational adjustment class2.3
1125	1125	(j) A school district that provides an extended year program
1126	1126	required by federal law for special education students who may
1127	1127	regress is entitled to receive funds in an amount equal to 75
1128	1128	percent, or a lesser percentage determined by the commissioner, of
1129	1129	the basic allotment, or, if applicable, the sum of the basic
1130	1130	allotment and the allotment under Section 48.101 to which the
1131	1131	district is entitled for each full-time equivalent student in
1132	1132	average enrollment [daily attendance], multiplied by the amount
1133	1133	designated for the student's instructional arrangement under this
1134	1134	section[, for each day the program is provided divided by the number
1135	1135	of days in the minimum school year]. The total amount of state
1136	1136	funding for extended year services under this section may not
1137	1137	exceed $10 million per year. A school district may use funds
1138	1138	received under this section only in providing an extended year
1139	1139	program.
1140	1140	SECTION 50. Section 48.105(a), Education Code, is amended
1141	1141	to read as follows:
1142	1142	(a) For each student in average enrollment [daily
1143	1143	attendance] in a bilingual education or special language program
1144	1144	under Subchapter B, Chapter 29, a district is entitled to an annual
1145	1145	allotment equal to the basic allotment multiplied by:
1146	1146	(1) for an emergent bilingual student, as defined by
1147	1147	Section 29.052:
1148	1148	(A) 0.1; or
1149	1149	(B) 0.15 if the student is in a bilingual
1150	1150	education program using a dual language immersion/one-way or
1151	1151	two-way program model; and
1152	1152	(2) for a student not described by Subdivision (1),
1153	1153	0.05 if the student is in a bilingual education program using a dual
1154	1154	language immersion/two-way program model.
1155	1155	SECTION 51. Sections 48.106(a) and (a-1), Education Code,
1156	1156	are amended to read as follows:
1157	1157	(a) For each full-time equivalent student in average
1158	1158	enrollment [daily attendance] in an approved career and technology
1159	1159	education program in grades 7 through 12, a district is entitled to
1160	1160	an annual allotment equal to the basic allotment, or, if
1161	1161	applicable, the sum of the basic allotment and the allotment under
1162	1162	Section 48.101 to which the district is entitled, multiplied by:
1163	1163	(1) 1.1 for a full-time equivalent student in career
1164	1164	and technology education courses not in an approved program of
1165	1165	study;
1166	1166	(2) 1.28 for a full-time equivalent student in levels
1167	1167	one and two career and technology education courses in an approved
1168	1168	program of study, as identified by the agency; and
1169	1169	(3) 1.47 for a full-time equivalent student in levels
1170	1170	three and four career and technology education courses in an
1171	1171	approved program of study, as identified by the agency.
1172	1172	(a-1) In addition to the amounts under Subsection (a), for
1173	1173	each student in average enrollment [daily attendance], a district
1174	1174	is entitled to $50 for each of the following in which the student is
1175	1175	enrolled:
1176	1176	(1) a campus designated as a P-TECH school under
1177	1177	Section 29.556; or
1178	1178	(2) a campus that is a member of the New Tech Network
1179	1179	and that focuses on project-based learning and work-based
1180	1180	education.
1181	1181	SECTION 52. Section 48.107(a), Education Code, is amended
1182	1182	to read as follows:
1183	1183	(a) Except as provided by Subsection (b), for each student
1184	1184	in average enrollment [daily attendance] who is using a public
1185	1185	education grant under Subchapter G, Chapter 29, to attend school in
1186	1186	a district other than the district in which the student resides, the
1187	1187	district in which the student attends school is entitled to an
1188	1188	annual allotment equal to the basic allotment multiplied by a
1189	1189	weight of 0.1.
1190	1190	SECTION 53. Section 48.108(a), Education Code, is amended
1191	1191	to read as follows:
1192	1192	(a) For each student in average enrollment [daily
1193	1193	attendance] in kindergarten through third grade, a school district
1194	1194	is entitled to an annual allotment equal to the basic allotment
1195	1195	multiplied by 0.1 if the student is:
1196	1196	(1) educationally disadvantaged; or
1197	1197	(2) an emergent bilingual student, as defined by
1198	1198	Section 29.052, and is in a bilingual education or special language
1199	1199	program under Subchapter B, Chapter 29.
1200	1200	SECTION 54. Section 48.109(c), Education Code, is amended
1201	1201	to read as follows:
1202	1202	(c) Not more than five percent of a district's students in
1203	1203	average enrollment [daily attendance] are eligible for funding
1204	1204	under this section.
1205	1205	SECTION 55. Section 48.115(a), Education Code, is amended
1206	1206	to read as follows:
1207	1207	(a) From funds appropriated for that purpose, the
1208	1208	commissioner shall provide to a school district an annual allotment
1209	1209	in the amount provided by appropriation for each student in average
1210	1210	enrollment [daily attendance].
1211	1211	SECTION 56. Sections 48.152(d) and (e), Education Code, are
1212	1212	amended to read as follows:
1213	1213	(d) For the first school year in which students attend a new
1214	1214	instructional facility, a school district is entitled to an
1215	1215	allotment of $1,000 for each student in average enrollment [daily
1216	1216	attendance] at the facility. For the second school year in which
1217	1217	students attend that instructional facility, a school district is
1218	1218	entitled to an allotment of $1,000 for each additional student in
1219	1219	average enrollment [daily attendance] at the facility.
1220	1220	(e) For purposes of this section, the number of additional
1221	1221	students in average enrollment [daily attendance] at a facility is
1222	1222	the difference between the number of students in average enrollment
1223	1223	[daily attendance] in the current year at that facility and the
1224	1224	number of students in average enrollment [daily attendance] at that
1225	1225	facility in the preceding year.
1226	1226	SECTION 57. Section 48.153, Education Code, is amended to
1227	1227	read as follows:
1228	1228	Sec. 48.153. DROPOUT RECOVERY SCHOOL AND RESIDENTIAL
1229	1229	PLACEMENT FACILITY ALLOTMENT. A school district or open-enrollment
1230	1230	charter school is entitled to $275 for each student in average
1231	1231	enrollment [daily attendance] who:
1232	1232	(1) resides in a residential placement facility; or
1233	1233	(2) is at a district or school or a campus of the
1234	1234	district or school that is designated as a dropout recovery school
1235	1235	under Section 39.0548.
1236	1236	SECTION 58. Section 48.202(a), Education Code, is amended
1237	1237	to read as follows:
1238	1238	(a) Each school district is guaranteed a specified amount
1239	1239	per weighted student in state and local funds for each cent of tax
1240	1240	effort over that required for the district's local fund assignment
1241	1241	up to the maximum level specified in this subchapter. The amount of
1242	1242	state support, subject only to the maximum amount under Section
1243	1243	48.203, is determined by the formula:
1244	1244	GYA = (GL X WAE [WADA] X DTR X 100) - LR
1245	1245	where:
1246	1246	"GYA" is the guaranteed yield amount of state funds to be
1247	1247	allocated to the district;
1248	1248	"GL" is the dollar amount guaranteed level of state and local
1249	1249	funds per weighted student per cent of tax effort, which is an
1250	1250	amount described by Subsection (a-1) or a greater amount for any
1251	1251	year provided by appropriation;
1252	1252	"WAE" ["WADA"] is the number of students in weighted average
1253	1253	enrollment [daily attendance], which is calculated by dividing the
1254	1254	sum of the school district's allotments under Subchapters B and C by
1255	1255	the basic allotment for the applicable year;
1256	1256	"DTR" is the district enrichment tax rate of the school
1257	1257	district, which is determined by subtracting the amounts specified
1258	1258	by Subsection (b) from the total amount of maintenance and
1259	1259	operations taxes collected by the school district for the
1260	1260	applicable school year and dividing the difference by the quotient
1261	1261	of the district's taxable value of property as determined under
1262	1262	Subchapter M, Chapter 403, Government Code, or, if applicable,
1263	1263	under Section 48.258 or by the quotient of the value of "DPV" as
1264	1264	determined under Section 48.256(d) if that subsection applies to
1265	1265	the district, divided by 100; and
1266	1266	"LR" is the local revenue, which is determined by multiplying
1267	1267	"DTR" by the quotient of the district's taxable value of property as
1268	1268	determined under Subchapter M, Chapter 403, Government Code, or, if
1269	1269	applicable, under Section 48.258 or by the quotient of the value of
1270	1270	"DPV" as determined under Section 48.256(d) if that subsection
1271	1271	applies to the district, divided by 100.
1272	1272	SECTION 59. Section 48.252(b), Education Code, is amended
1273	1273	to read as follows:
1274	1274	(b) Notwithstanding any other provision of this chapter or
1275	1275	Chapter 49, a school district subject to this section is entitled to
1276	1276	receive for each student in average enrollment [daily attendance]
1277	1277	at the campus or program described by Subsection (a) an amount
1278	1278	equivalent to the difference, if the difference results in
1279	1279	increased funding, between:
1280	1280	(1) the amount described by Section 12.106; and
1281	1281	(2) the amount to which the district would be entitled
1282	1282	under this chapter.
1283	1283	SECTION 60. Section 48.2642(a), Education Code, is amended
1284	1284	to read as follows:
1285	1285	(a) Notwithstanding any other provision of this chapter,
1286	1286	the commissioner shall count toward a school district's or
1287	1287	open-enrollment charter school's average enrollment [daily
1288	1288	attendance] under Section 48.005 each student who graduates early
1289	1289	from high school in the district or school under the Texas First
1290	1290	Early High School Completion Program established under Section
1291	1291	28.0253 for the period in which the student is enrolled at an
1292	1292	eligible institution using state credit awarded under the Texas
1293	1293	First Scholarship Program established under Subchapter K-1,
1294	1294	Chapter 56, based on a 100 percent attendance rate.
1295	1295	SECTION 61. Section 48.273(a)(4), Education Code, is
1296	1296	amended to read as follows:
1297	1297	(4) "Wealth per student" means the taxable property
1298	1298	values reported by the comptroller to the commissioner under
1299	1299	Section 48.256 divided by the number of students in average
1300	1300	enrollment [daily attendance].
1301	1301	SECTION 62. Section 48.277(a), Education Code, is amended
1302	1302	to read as follows:
1303	1303	(a) A school district or open-enrollment charter school is
1304	1304	entitled to receive an annual allotment for each student in average
1305	1305	enrollment [daily attendance] in the amount equal to the
1306	1306	difference, if the difference is greater than zero, that results
1307	1307	from subtracting the total maintenance and operations revenue per
1308	1308	student in average enrollment [daily attendance] for the current
1309	1309	school year from the lesser of:
1310	1310	(1) 103 percent of the district's or school's total
1311	1311	maintenance and operations revenue per student in average
1312	1312	enrollment [daily attendance] for the 2019-2020 school year that
1313	1313	the district or school would have received under former Chapters 41
1314	1314	and 42, as those chapters existed on January 1, 2019; or
1315	1315	(2) 128 percent of the statewide average amount of
1316	1316	maintenance and operations revenue per student in average
1317	1317	enrollment [daily attendance] that would have been provided for the
1318	1318	2019-2020 school year under former Chapters 41 and 42, as those
1319	1319	chapters existed on January 1, 2019.
1320	1320	SECTION 63. Section 49.001(2), Education Code, is amended
1321	1321	to read as follows:
1322	1322	(2) "Weighted average enrollment [daily attendance]"
1323	1323	has the meaning assigned by Section 48.202.
1324	1324	SECTION 64. Section 49.002, Education Code, is amended to
1325	1325	read as follows:
1326	1326	Sec. 49.002. OPTIONS TO REDUCE LOCAL REVENUE LEVEL. A
1327	1327	district with a local revenue level in excess of entitlement may
1328	1328	take any combination of the following actions to reduce the
1329	1329	district's revenue level:
1330	1330	(1) consolidation with another district as provided by
1331	1331	Subchapter B;
1332	1332	(2) detachment of territory as provided by Subchapter
1333	1333	C;
1334	1334	(3) purchase of average enrollment [daily attendance]
1335	1335	credit as provided by Subchapter D;
1336	1336	(4) education of nonresident students as provided by
1337	1337	Subchapter E; or
1338	1338	(5) tax base consolidation with another district as
1339	1339	provided by Subchapter F.
1340	1340	SECTION 65. Section 49.003, Education Code, is amended to
1341	1341	read as follows:
1342	1342	Sec. 49.003. INCLUSION OF ATTENDANCE CREDIT AND
1343	1343	NONRESIDENTS IN WEIGHTED AVERAGE ENROLLMENT [DAILY ATTENDANCE]. In
1344	1344	determining whether a school district has a local revenue level in
1345	1345	excess of entitlement, the commissioner shall use:
1346	1346	(1) the district's final weighted average enrollment
1347	1347	[daily attendance]; and
1348	1348	(2) the amount of attendance credit a district
1349	1349	purchases under Subchapter D or the number of nonresident students
1350	1350	a district educates under Subchapter E for a school year.
1351	1351	SECTION 66. Section 49.158(a), Education Code, is amended
1352	1352	to read as follows:
1353	1353	(a) Sections 49.154 and 49.157 apply only to a district
1354	1354	that:
1355	1355	(1) executes an agreement to purchase attendance
1356	1356	credit necessary to reduce the district's local revenue level to
1357	1357	the level established under Section 48.257;
1358	1358	(2) executes an agreement to purchase attendance
1359	1359	credit and an agreement under Subchapter E to contract for the
1360	1360	education of nonresident students who transfer to and are educated
1361	1361	in the district but who are not charged tuition; or
1362	1362	(3) executes an agreement under Subchapter E to
1363	1363	contract for the education of nonresident students:
1364	1364	(A) to an extent that does not provide more than
1365	1365	10 percent of the reduction in local revenue required for the
1366	1366	district to achieve a local revenue level that is equal to or less
1367	1367	than the level established under Section 48.257; and
1368	1368	(B) under which all revenue paid by the district
1369	1369	to other districts, in excess of the reduction in state aid that
1370	1370	results from counting the weighted average enrollment [daily
1371	1371	attendance] of the students served in the contracting district, is
1372	1372	required to be used for funding a consortium of at least three
1373	1373	districts in a county with a population of less than 40,000 that is
1374	1374	formed to support a technology initiative.
1375	1375	SECTION 67. Section 49.201, Education Code, is amended to
1376	1376	read as follows:
1377	1377	Sec. 49.201. AGREEMENT. The board of trustees of a
1378	1378	district with a local revenue level in excess of entitlement may
1379	1379	execute an agreement to educate the students of another district in
1380	1380	a number that, when the weighted average enrollment [daily
1381	1381	attendance] of the students served is added to the weighted average
1382	1382	enrollment [daily attendance] of the contracting district, is
1383	1383	sufficient, in combination with any other actions taken under this
1384	1384	chapter, to reduce the district's local revenue level to a level
1385	1385	that is equal to or less than the level established under Section
1386	1386	48.257. The agreement is not effective unless the commissioner
1387	1387	certifies that the transfer of weighted average enrollment [daily
1388	1388	attendance] will not result in any of the contracting districts'
1389	1389	local revenue level being greater than the level established under
1390	1390	Section 48.257 and that the agreement requires an expenditure per
1391	1391	student in weighted average enrollment [daily attendance] that is
1392	1392	at least equal to the amount per student in weighted average
1393	1393	enrollment [daily attendance] required under Section 49.153.
1394	1394	SECTION 68. Section 49.203, Education Code, is amended to
1395	1395	read as follows:
1396	1396	Sec. 49.203. WEIGHTED AVERAGE ENROLLMENT [WADA] COUNT. For
1397	1397	purposes of Chapter 48, students served under an agreement under
1398	1398	this subchapter are counted only in the weighted average enrollment
1399	1399	[daily attendance] of the district providing the services, except
1400	1400	that students served under an agreement authorized by Section
1401	1401	49.205 are counted in a manner determined by the commissioner.
1402	1402	SECTION 69. Section 49.257(b), Education Code, is amended
1403	1403	to read as follows:
1404	1404	(b) Each component district shall bear a share of the costs
1405	1405	of assessing and collecting taxes in proportion to the component
1406	1406	district's share of weighted average enrollment [daily attendance]
1407	1407	in the consolidated taxing district.
1408	1408	SECTION 70. Section 49.258, Education Code, is amended to
1409	1409	read as follows:
1410	1410	Sec. 49.258. REVENUE DISTRIBUTION. The consolidated taxing
1411	1411	district shall distribute maintenance tax revenue to the component
1412	1412	districts on the basis of the number of students in weighted average
1413	1413	enrollment [daily attendance] in the component districts.
1414	1414	SECTION 71. Sections 49.305(c) and (d), Education Code, are
1415	1415	amended to read as follows:
1416	1416	(c) If the detachment of whole parcels or items of property
1417	1417	as provided by Subsection (a) would result in a district's local
1418	1418	revenue level that is less than the level established under Section
1419	1419	48.257 by more than the product of $10,000 multiplied by weighted
1420	1420	average enrollment [daily attendance], the commissioner may not
1421	1421	detach the last parcel or item of property and shall detach the next
1422	1422	one or more parcels or items of property in descending order of
1423	1423	taxable value that would result in the school district having a
1424	1424	local revenue level that is equal to or less than the level
1425	1425	established under Section 48.257 by not more than the product of
1426	1426	$10,000 multiplied by weighted average enrollment [daily
1427	1427	attendance].
1428	1428	(d) Notwithstanding Subsections (a), (b), and (c), the
1429	1429	commissioner may detach only a portion of a parcel or item of
1430	1430	property if:
1431	1431	(1) it is not possible under this subchapter to reduce
1432	1432	the district's local revenue level to a level that is equal to or
1433	1433	less than the level established under Section 48.257 unless some or
1434	1434	all of the parcel or item of property is detached and the detachment
1435	1435	of the whole parcel or item would result in the district from which
1436	1436	it is detached having a local revenue level that is less than the
1437	1437	level established under Section 48.257 by more than the product of
1438	1438	$10,000 multiplied by weighted average enrollment [daily
1439	1439	attendance]; or
1440	1440	(2) the commissioner determines that a partial
1441	1441	detachment of that parcel or item of property is preferable to the
1442	1442	detachment of one or more other parcels or items having a lower
1443	1443	taxable value in order to minimize the number of parcels or items of
1444	1444	property to be detached consistent with the purposes of this
1445	1445	chapter.
1446	1446	SECTION 72. Section 49.306(i), Education Code, is amended
1447	1447	to read as follows:
1448	1448	(i) The commissioner may order the annexation of a portion
1449	1449	of a parcel or item of property, including a portion of property
1450	1450	treated as a whole parcel or item under Subsection (h), if:
1451	1451	(1) the annexation of the whole parcel or item would
1452	1452	result in the district eligible to receive it in the appropriate
1453	1453	priority order provided by this section having a local revenue
1454	1454	level greater than the amount by which the product of $10,000
1455	1455	multiplied by weighted average enrollment [daily attendance]
1456	1456	exceeds the taxable value of property necessary to generate
1457	1457	maintenance and operations tax revenue in the amount equal to the
1458	1458	district's entitlement under Section 48.202(a-1)(2); or
1459	1459	(2) the commissioner determines that annexation of
1460	1460	portions of the parcel or item would reduce disparities in district
1461	1461	taxable values of property necessary to generate maintenance and
1462	1462	operations tax revenue in the amount equal to a district's
1463	1463	entitlement under Section 48.202(a-1)(2) more efficiently than
1464	1464	would be possible if the parcel or item were annexed as a whole.
1465	1465	SECTION 73. Section 49.311, Education Code, is amended to
1466	1466	read as follows:
1467	1467	Sec. 49.311. STUDENT ATTENDANCE. A student who is a
1468	1468	resident of real property detached from a school district may
1469	1469	choose to attend school in that district or in the district to which
1470	1470	the property is annexed. For purposes of determining average
1471	1471	enrollment [daily attendance] under Section 48.005, the student
1472	1472	shall be counted in the district to which the property is annexed.
1473	1473	If the student chooses to attend school in the district from which
1474	1474	the property is detached, the state shall withhold any foundation
1475	1475	school funds from the district to which the property is annexed and
1476	1476	shall allocate to the district in which the student is attending
1477	1477	school those funds and the amount of funds equal to the difference
1478	1478	between the state funds the district is receiving for the student
1479	1479	and the district's cost in educating the student.
1480	1480	SECTION 74. Section 49.354(e), Education Code, is amended
1481	1481	to read as follows:
1482	1482	(e) A restored district's proportionate share of fund
1483	1483	balances, personal property, or indebtedness is equal to the
1484	1484	proportion that the number of students in average enrollment [daily
1485	1485	attendance] in the restored district bears to the number of
1486	1486	students in average enrollment [daily attendance] in the
1487	1487	consolidated district.
1488	1488	SECTION 75. Section 403.104(d), Government Code, is amended
1489	1489	to read as follows:
1490	1490	(d) The proportionate share of an independent school
1491	1491	district is determined by multiplying the total amount of the
1492	1492	payment available for distribution to school districts by the ratio
1493	1493	that the average number of [daily attendance for] students who
1494	1494	reside in the county and are enrolled in [who attend] that school
1495	1495	district bears to the average number of [daily attendance for] all
1496	1496	students who reside in the county and are enrolled in [who attend]
1497	1497	any independent school district. However, if there are fewer than
1498	1498	10 independent school districts located in whole or part in the
1499	1499	county and if an independent school district would receive under
1500	1500	this formula less than 10 percent of the total payment available for
1501	1501	distribution to independent school districts, the school
1502	1502	district's share shall be increased to 10 percent of the total
1503	1503	payment and the shares of the school districts that would receive
1504	1504	more than 10 percent under the formula shall be reduced
1505	1505	proportionately, but not to an amount less than 10 percent of the
1506	1506	total payment. [Each independent school district shall develop a
1507	1507	reasonable method for determining the average daily attendance for
1508	1508	students who reside in the county and who attend the school
1509	1509	district.]
1510	1510	SECTION 76. Section 1371.001(4), Government Code, is
1511	1511	amended to read as follows:
1512	1512	(4) "Issuer" means:
1513	1513	(A) a home-rule municipality that:
1514	1514	(i) adopted its charter under Section 5,
1515	1515	Article XI, Texas Constitution;
1516	1516	(ii) has a population of 50,000 or more; and
1517	1517	(iii) has outstanding long-term
1518	1518	indebtedness that is rated by a nationally recognized rating agency
1519	1519	for municipal securities in one of the four highest rating
1520	1520	categories for a long-term obligation;
1521	1521	(B) a conservation and reclamation district
1522	1522	created and organized as a river authority under Section 52,
1523	1523	Article III, or Section 59, Article XVI, Texas Constitution;
1524	1524	(C) a joint powers agency organized and operating
1525	1525	under Chapter 163, Utilities Code;
1526	1526	(D) a metropolitan rapid transit authority,
1527	1527	regional transportation authority, or coordinated county
1528	1528	transportation authority created, organized, or operating under
1529	1529	Chapter 451, 452, or 460, Transportation Code;
1530	1530	(E) a conservation and reclamation district
1531	1531	organized or operating as a navigation district under Section 52,
1532	1532	Article III, or Section 59, Article XVI, Texas Constitution;
1533	1533	(F) a district organized or operating under
1534	1534	Section 59, Article XVI, Texas Constitution, that has all or part of
1535	1535	two or more municipalities within its boundaries;
1536	1536	(G) a state agency, including a state institution
1537	1537	of higher education;
1538	1538	(H) a hospital authority created or operating
1539	1539	under Chapter 262 or 264, Health and Safety Code, in a county that:
1540	1540	(i) has a population of more than 3.3
1541	1541	million; or
1542	1542	(ii) is included, in whole or in part, in a
1543	1543	standard metropolitan statistical area of this state that includes
1544	1544	a county with a population of more than 2.2 million;
1545	1545	(I) a hospital district in a county that has a
1546	1546	population of more than two million;
1547	1547	(J) a nonprofit corporation organized to
1548	1548	exercise the powers of a higher education loan authority under
1549	1549	Section 53B.47(e), Education Code;
1550	1550	(K) a county:
1551	1551	(i) that has a population of 3.3 million or
1552	1552	more; or
1553	1553	(ii) that, on the date of issuance of
1554	1554	obligations under this chapter, has authorized, outstanding, or any
1555	1555	combination of authorized and outstanding, indebtedness of at least
1556	1556	$100 million secured by and payable from the county's ad valorem
1557	1557	taxes and the authorized long-term indebtedness of which is rated
1558	1558	by a nationally recognized rating agency of securities issued by
1559	1559	local governments in one of the four highest rating categories for a
1560	1560	long-term obligation;
1561	1561	(L) an independent school district that has an
1562	1562	average enrollment [daily attendance] of 50,000 or more as
1563	1563	determined under Section 48.005, Education Code;
1564	1564	(M) a municipality or county operating under
1565	1565	Chapter 334, Local Government Code;
1566	1566	(N) a district created under Chapter 335, Local
1567	1567	Government Code;
1568	1568	(O) a junior college district that has a total
1569	1569	headcount enrollment of 40,000 or more based on enrollment in the
1570	1570	most recent regular semester; or
1571	1571	(P) an issuer, as defined by Section 1201.002,
1572	1572	that has:
1573	1573	(i) a principal amount of at least $100
1574	1574	million in outstanding long-term indebtedness, in long-term
1575	1575	indebtedness proposed to be issued, or in a combination of
1576	1576	outstanding or proposed long-term indebtedness; and
1577	1577	(ii) some amount of long-term indebtedness
1578	1578	outstanding or proposed to be issued that is rated in one of the
1579	1579	four highest rating categories for long-term debt instruments by a
1580	1580	nationally recognized rating agency for municipal securities,
1581	1581	without regard to the effect of any credit agreement or other form
1582	1582	of credit enhancement entered into in connection with the
1583	1583	obligation.
1584	1584	SECTION 77. Section 1431.001(3), Government Code, is
1585	1585	amended to read as follows:
1586	1586	(3) "Eligible school district" means an independent
1587	1587	school district that has an average enrollment [daily attendance]
1588	1588	of 190,000 or more as determined under Section 48.005, Education
1589	1589	Code.
1590	1590	SECTION 78. Section 325.011(a), Local Government Code, is
1591	1591	amended to read as follows:
1592	1592	(a) The district is governed by a board of directors
1593	1593	composed of five members, with two directors appointed by the
1594	1594	commissioners court of the county, two directors appointed by the
1595	1595	governing body of the municipality having the largest population in
1596	1596	the county, and one director appointed by the governing body of the
1597	1597	school district with the largest number of students in average
1598	1598	enrollment [daily attendance] in the county. The board shall
1599	1599	manage the district and administer this chapter.
1600	1600	SECTION 79. Section 313.027(i), Tax Code, is amended to
1601	1601	read as follows:
1602	1602	(i) A person and the school district may not enter into an
1603	1603	agreement under which the person agrees to provide supplemental
1604	1604	payments to a school district or any other entity on behalf of a
1605	1605	school district in an amount that exceeds an amount equal to the
1606	1606	greater of $100 per student per year in average enrollment [daily
1607	1607	attendance], as defined by Section 48.005, Education Code, or
1608	1608	$50,000 per year, or for a period that exceeds the period beginning
1609	1609	with the period described by Section 313.021(4) and ending December
1610	1610	31 of the third tax year after the date the person's eligibility for
1611	1611	a limitation under this chapter expires. This limit does not apply
1612	1612	to amounts described by Subsection (f)(1) or (2).
1613	1613	SECTION 80. Section 1, Article 2688d, Vernon's Texas Civil
1614	1614	Statutes, is amended to read as follows:
1615	1615	Section 1. In all counties of the State where, according to
1616	1616	the preceding annual statistical report of the schools said county
1617	1617	has not more than four (4) school districts, with one (1) of such
1618	1618	districts comprising more than half of the county and having more
1619	1619	than two thousand (2,000) pupils in average enrollment [daily
1620	1620	attendance] in the one (1) district alone, and such district having
1621	1621	an assessed valuation of more than Twenty Million Dollars
1622	1622	($20,000,000) and where there is only one (1) common school
1623	1623	district in such county with an average enrollment [daily
1624	1624	attendance] of less than sixteen (16), the office of county
1625	1625	superintendent is hereby abolished, to be effective at the end of
1626	1626	the term of the incumbent county superintendent, as is now provided
1627	1627	by law.
1628	1628	SECTION 81. The following provisions of the Education Code
1629	1629	are repealed:
1630	1630	(1) Section 29.0822(d-1); and
1631	1631	(2) Section 48.007.
1632	1632	SECTION 82. This Act takes effect September 1, 2023.