Texas 2023 - 88th 3rd C.S.

Texas House Bill HB52 Compare Versions

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1	1	By: Bucy H.B. No. 52
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the use of average enrollment for purposes of the public
7	7	school finance system.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 48.005, Education Code, is amended to
10	10	read as follows:
11	11	Sec. 48.005. AVERAGE ENROLLMENT [DAILY ATTENDANCE]. (a)
12	12	In this chapter, average enrollment [daily attendance] is:
13	13	(1) the average number of students enrolled in the
14	14	school district during a school year [quotient of the sum of
15	15	attendance for each day of the minimum number of days of instruction
16	16	as described under Section 25.081(a) divided by the minimum number
17	17	of days of instruction;
18	18	[(2) for a district that operates under a flexible
19	19	year program under Section 29.0821, the quotient of the sum of
20	20	attendance for each actual day of instruction as permitted by
21	21	Section 29.0821(b)(1) divided by the number of actual days of
22	22	instruction as permitted by Section 29.0821(b)(1);
23	23	[(3) for a district that operates under a flexible
24	24	school day program under Section 29.0822, the average daily
25	25	attendance as calculated by the commissioner in accordance with
26	26	Sections 29.0822(d) and (d-1)]; or
27	27	(2) [(4)] for a district that operates a half-day
28	28	program or a full-day program under Section 29.153(c), one-half of
29	29	the average enrollment [daily attendance] calculated under
30	30	Subdivision (1).
31	31	(b) A school district that experiences a decline of two
32	32	percent or more in average enrollment [daily attendance] shall be
33	33	funded on the basis of:
34	34	(1) the actual average enrollment [daily attendance]
35	35	of the preceding school year, if the decline is the result of the
36	36	closing or reduction in personnel of a military base; or
37	37	(2) subject to Subsection (e), an average enrollment
38	38	[daily attendance] not to exceed 98 percent of the actual average
39	39	enrollment [daily attendance] of the preceding school year, if the
40	40	decline is not the result of the closing or reduction in personnel
41	41	of a military base.
42	42	(c) The commissioner shall adjust the average enrollment
43	43	[daily attendance] of a school district that has a significant
44	44	percentage of students who are migratory children as defined by 20
45	45	U.S.C. Section 6399.
46	46	(d) The commissioner may adjust the average enrollment
47	47	[daily attendance] of a school district in which a disaster, flood,
48	48	extreme weather condition, fuel curtailment, or other calamity has
49	49	a significant effect on the district's enrollment [attendance]. In
50	50	addition to providing the adjustment for the amount of
51	51	instructional days during the semester in which the calamity first
52	52	occurred, an adjustment under this section may only be provided
53	53	based on a particular calamity for an additional amount of
54	54	instructional days equivalent to one school year. The commissioner
55	55	may divide the adjustment between two consecutive school years.
56	56	(e) For each school year, the commissioner shall adjust the
57	57	average enrollment [daily attendance] of school districts that are
58	58	entitled to funding on the basis of an adjusted average enrollment
59	59	[daily attendance] under Subsection (b)(2) so that:
60	60	(1) all districts are funded on the basis of the same
61	61	percentage of the preceding year's actual average enrollment [daily
62	62	attendance]; and
63	63	(2) the total cost to the state does not exceed the
64	64	amount specifically appropriated for that year for purposes of
65	65	Subsection (b)(2).
66	66	(f) An open-enrollment charter school is not entitled to
67	67	funding based on an adjustment under Subsection (b)(2).
68	68	(g) If a student may receive course credit toward the
69	69	student's high school academic requirements and toward the
70	70	student's higher education academic requirements for a single
71	71	course, including a course provided under Section 28.009 by a
72	72	public institution of higher education, the time during which the
73	73	student attends the course shall be counted as part of the minimum
74	74	number of instructional hours required for a student to be
75	75	considered a full-time student in average enrollment [daily
76	76	attendance] for purposes of this section.
77	77	[(g-1) The commissioner shall adopt rules to calculate
78	78	average daily attendance for students participating in a blended
79	79	learning program in which classroom instruction is supplemented
80	80	with applied workforce learning opportunities, including
81	81	participation of students in internships, externships, and
82	82	apprenticeships.]
83	83	(h) Time [Subject to rules adopted by the commissioner under
84	84	Section 48.007(b), time] that a student participates in an
85	85	off-campus instructional program provided by an entity other than a
86	86	school district or open-enrollment charter school and approved by
87	87	the commissioner in accordance with commissioner rule [under
88	88	Section 48.007(a)] shall be counted as part of the minimum number of
89	89	instructional hours required for a student to be considered a
90	90	full-time student in average enrollment [daily attendance] for
91	91	purposes of this section.
92	92	(h-1) Subject to rules adopted by the commissioner under
93	93	Section 48.007(b), time that a student participates in a course or
94	94	program provided under Section 48.0071(b) shall be counted as part
95	95	of the minimum number of instructional hours required for a student
96	96	to be considered a full-time student in average daily attendance
97	97	for purposes of this section. This subsection expires September 1,
98	98	2023.
99	99	(i) A district or a charter school operating under Chapter
100	100	12 that operates a prekindergarten program is eligible to receive
101	101	one-half of average enrollment [daily attendance] under Subsection
102	102	(a) if the district's or charter school's prekindergarten program
103	103	provides at least 32,400 minutes of instructional time to students.
104	104	(j) A district or charter school is eligible to earn full
105	105	average enrollment [daily attendance] under Subsection (a) if the
106	106	district or school provides at least 43,200 minutes of
107	107	instructional time to students enrolled in:
108	108	(1) a dropout recovery school or program operating
109	109	under Section 12.1141(c) or Section 39.0548;
110	110	(2) an alternative education program operating under
111	111	Section 37.008;
112	112	(3) a school program located at a day treatment
113	113	facility, residential treatment facility, psychiatric hospital, or
114	114	medical hospital;
115	115	(4) a school program offered at a correctional
116	116	facility; or
117	117	(5) a school operating under Subchapter G, Chapter 12.
118	118	(k) A charter school operating under a charter granted under
119	119	Chapter 12 before January 1, 2015, is eligible to earn full average
120	120	enrollment [daily attendance] under Subsection (a), as that
121	121	subsection existed immediately before January 1, 2015, for:
122	122	(1) all campuses of the charter school operating
123	123	before January 1, 2015; and
124	124	(2) any campus or site expansion approved on or after
125	125	January 1, 2015, provided that the charter school received an
126	126	academic accountability performance rating of C or higher, and the
127	127	campus or site expansion is approved by the commissioner.
128	128	(l) A school district campus or charter school described by
129	129	Subsection (j) may operate more than one program and be eligible for
130	130	full average enrollment [daily attendance] for each program if the
131	131	programs operated by the district campus or charter school satisfy
132	132	all applicable state and federal requirements.
133	133	(m) The commissioner shall adopt rules necessary to
134	134	implement this section, including rules that:
135	135	(1) determine the method to calculate the average
136	136	number of students enrolled in a school district during a school
137	137	year;
138	138	(2) establish the minimum amount of instructional time
139	139	per day that allows a school district or charter school to be
140	140	eligible for full average enrollment [daily attendance], which may
141	141	differ based on the instructional program offered by the district
142	142	or charter school;
143	143	(3) [(2)] establish the requirements necessary for a
144	144	school district or charter school to be eligible for one-half of
145	145	average enrollment [daily attendance], which may differ based on
146	146	the instructional program offered by the district or charter
147	147	school;
148	148	(4) [(3)] proportionally reduce the average enrollment
149	149	[daily attendance] for a school district if any campus or
150	150	instructional program in the district provides fewer than the
151	151	required minimum minutes of instruction to students; and
152	152	(5) [(4)] allow a grade or course repeated under
153	153	Section 28.02124 to qualify for average enrollment [daily
154	154	attendance] even if the student previously passed or earned credit
155	155	for the grade or course, if the grade or course would otherwise be
156	156	eligible.
157	157	(m-1) Except for students enrolled in programs or courses
158	158	offered under Chapter 30A or Section 48.053, a school district or
159	159	open-enrollment charter school may not count for purposes of
160	160	calculating the district's or school's average daily attendance a
161	161	student who received virtual or remote instruction for a majority
162	162	of the instructional days during the preceding school year if the
163	163	student:
164	164	(1) did not achieve satisfactory performance or higher
165	165	or the equivalent in the preceding school year on:
166	166	(A) each assessment instrument administered to
167	167	the student under Section 39.023 or 39.025; or
168	168	(B) if the student was not administered an
169	169	assessment instrument that was required to be administered to the
170	170	student under Section 39.023 or 39.025 during the preceding school
171	171	year, an assessment instrument designed to show grade-level
172	172	proficiency in the essential knowledge and skills identified under
173	173	Section 28.002 by the State Board of Education for the student's
174	174	grade level;
175	175	(2) had a number of unexcused absences that exceeds 10
176	176	percent of the number of instructional days in the preceding school
177	177	year; or
178	178	(3) did not earn a grade of C or higher or the
179	179	equivalent in each of the foundation curriculum courses taken
180	180	virtually or remotely in the preceding school year.
181	181	(m-2) Subsection (m-1) and this subsection expire September
182	182	1, 2023.
183	183	(n) The rules adopted under Subsection (m)(1) must include a
184	184	requirement that the agency use a school district's total
185	185	enrollment on the first day of each semester for purposes of
186	186	estimating the district's average enrollment for that school year.
187	187	(o) To assist school districts in implementing this section
188	188	as amended by H.B. 2442, Acts of the 85th Legislature, Regular
189	189	Session, 2017, the commissioner may waive a requirement of this
190	190	section or adopt rules to implement this section.
191	191	SECTION 2. Section 7.062(a), Education Code, is amended to
192	192	read as follows:
193	193	(a) In this section, "wealth per student" means a school
194	194	district's taxable value of property as determined under Subchapter
195	195	M, Chapter 403, Government Code, or, if applicable, Section 48.258,
196	196	divided by the district's average enrollment [daily attendance] as
197	197	determined under Section 48.005.
198	198	SECTION 3. Section 11.052(f), Education Code, is amended to
199	199	read as follows:
200	200	(f) If single-member trustee districts are adopted or
201	201	approved as provided by this section, the board shall divide the
202	202	school district into the appropriate number of trustee districts,
203	203	based on the number of members of the board that are to be elected
204	204	from single-member trustee districts, and shall number each trustee
205	205	district. The trustee districts must be compact and contiguous and
206	206	must be as nearly as practicable of equal population. In a district
207	207	with 150,000 or more students in average enrollment [daily
208	208	attendance], the boundary of a trustee district may not cross a
209	209	county election precinct boundary except at a point at which the
210	210	boundary of the school district crosses the county election
211	211	precinct boundary. Trustee districts must be drawn not later than
212	212	the 90th day before the date of the first election of trustees from
213	213	those districts.
214	214	SECTION 4. Sections 12.106(a), (a-2), and (d), Education
215	215	Code, are amended to read as follows:
216	216	(a) A charter holder is entitled to receive for the
217	217	open-enrollment charter school funding under Chapter 48 equal to
218	218	the amount of funding per student in weighted average enrollment
219	219	[daily attendance], excluding the adjustment under Section 48.052,
220	220	the funding under Sections 48.101, 48.110, 48.111, and 48.112, and
221	221	enrichment funding under Section 48.202(a), to which the charter
222	222	holder would be entitled for the school under Chapter 48 if the
223	223	school were a school district without a tier one local share for
224	224	purposes of Section 48.266.
225	225	(a-2) In addition to the funding provided by Subsection (a),
226	226	a charter holder is entitled to receive for the open-enrollment
227	227	charter school an allotment per student in average enrollment
228	228	[daily attendance] in an amount equal to the difference between:
229	229	(1) the product of:
230	230	(A) the quotient of:
231	231	(i) the total amount of funding provided to
232	232	eligible school districts under Section 48.101(b) or (c); and
233	233	(ii) the total number of students in
234	234	average enrollment [daily attendance] in school districts that
235	235	receive an allotment under Section 48.101(b) or (c); and
236	236	(B) the sum of one and the quotient of:
237	237	(i) the total number of students in average
238	238	enrollment [daily attendance] in school districts that receive an
239	239	allotment under Section 48.101(b) or (c); and
240	240	(ii) the total number of students in
241	241	average enrollment [daily attendance] in school districts
242	242	statewide; and
243	243	(2) $125.
244	244	(d) Subject to Subsection (e), in addition to other amounts
245	245	provided by this section, a charter holder is entitled to receive,
246	246	for the open-enrollment charter school, funding per student in
247	247	average enrollment [daily attendance] in an amount equal to the
248	248	guaranteed level of state and local funds per student per cent of
249	249	tax effort under Section 46.032(a) multiplied by the lesser of:
250	250	(1) the state average interest and sinking fund tax
251	251	rate imposed by school districts for the current year; or
252	252	(2) a rate that would result in a total amount to which
253	253	charter schools are entitled under this subsection for the current
254	254	year equal to $60 million.
255	255	SECTION 5. Sections 12.263(a), (b), and (c), Education
256	256	Code, as effective September 1, 2023, are amended to read as
257	257	follows:
258	258	(a) Except as otherwise provided by this section, funding
259	259	for an adult education program operated under a charter granted
260	260	under this subchapter is an amount per participant through the
261	261	Foundation School Program equal to the amount of state funding per
262	262	student in weighted average enrollment [daily attendance] that
263	263	would be allocated under the Foundation School Program for the
264	264	student's enrollment [attendance] at an open-enrollment charter
265	265	school in accordance with Section 12.106.
266	266	(b) For purposes of determining the average enrollment
267	267	[daily attendance] of an adult education program operated under a
268	268	charter granted under this subchapter, a student is considered to
269	269	be in average enrollment [daily attendance, with a 100 percent
270	270	attendance rate,] for:
271	271	(1) all of the instructional days of the school year,
272	272	if the student is enrolled for at least 75 percent of the school
273	273	year;
274	274	(2) half of the instructional days of the school year,
275	275	if the student is enrolled for at least 50 percent but less than 75
276	276	percent of the school year;
277	277	(3) a quarter of the instructional days of the school
278	278	year, if the student is enrolled for at least 25 percent but less
279	279	than 50 percent of the school year; or
280	280	(4) one-tenth of the instructional days of the school
281	281	year, if the student is enrolled for at least 10 percent but less
282	282	than 25 percent of the school year.
283	283	(c) A student enrolled in an adult education program
284	284	operated under a charter granted under this subchapter for less
285	285	than 10 percent of a school year may not be counted toward the adult
286	286	education program's average enrollment [daily attendance] for that
287	287	school year.
288	288	SECTION 6. Section 13.051(c), Education Code, is amended to
289	289	read as follows:
290	290	(c) Territory that does not have residents may be detached
291	291	from a school district and annexed to another school district if:
292	292	(1) the total taxable value of the property in the
293	293	territory according to the most recent certified appraisal roll for
294	294	each school district is not greater than:
295	295	(A) five percent of the district's taxable value
296	296	of all property in that district as determined under Subchapter M,
297	297	Chapter 403, Government Code; and
298	298	(B) $5,000 property value per student in average
299	299	enrollment [daily attendance] as determined under Section 48.005;
300	300	and
301	301	(2) the school district from which the property will
302	302	be detached does not own any real property located in the territory.
303	303	SECTION 7. Section 13.102, Education Code, is amended to
304	304	read as follows:
305	305	Sec. 13.102. MINIMUM AREA AND ENROLLMENT [ATTENDANCE]
306	306	REQUIREMENTS. A new district may not be created with an area of
307	307	less than nine square miles or fewer than 8,000 students in average
308	308	enrollment [daily attendance], and a district may not be reduced to
309	309	an area of less than nine square miles or fewer than 8,000 students
310	310	in average enrollment [daily attendance].
311	311	SECTION 8. Section 13.283, Education Code, is amended to
312	312	read as follows:
313	313	Sec. 13.283. PAYMENTS REDUCED. The incentive aid payments
314	314	shall be reduced in direct proportion to any reduction in the
315	315	average enrollment [daily attendance] as determined under Section
316	316	48.005 of the reorganized school district for the preceding year.
317	317	SECTION 9. Section 19.009(d-2), Education Code, is amended
318	318	to read as follows:
319	319	(d-2) Beginning with the 2009-2010 school year, the
320	320	district shall increase the monthly salary of each classroom
321	321	teacher, full-time speech pathologist, full-time librarian,
322	322	full-time school counselor certified under Subchapter B, Chapter
323	323	21, and full-time school nurse employed by the district by the
324	324	greater of:
325	325	(1) $80; or
326	326	(2) the maximum uniform amount that, when combined
327	327	with any resulting increases in the amount of contributions made by
328	328	the district for social security coverage for the specified
329	329	employees or by the district on behalf of the specified employees
330	330	under Section 825.405, Government Code, may be provided using an
331	331	amount equal to the product of $60 multiplied by the number of
332	332	students in weighted average enrollment [daily attendance] in the
333	333	district during the 2009-2010 school year.
334	334	SECTION 10. Section 25.038, Education Code, is amended to
335	335	read as follows:
336	336	Sec. 25.038. TUITION FEE FOR TRANSFER STUDENTS. The
337	337	receiving school district may charge a tuition fee to the extent
338	338	that the district's actual expenditure per student in average
339	339	enrollment [daily attendance], as determined by its board of
340	340	trustees, exceeds the sum the district benefits from state aid
341	341	sources as provided by Section 25.037. However, unless a tuition
342	342	fee is prescribed and set out in a transfer agreement before its
343	343	execution by the parties, an increase in tuition charge may not be
344	344	made for the year of that transfer that exceeds the tuition charge,
345	345	if any, of the preceding school year.
346	346	SECTION 11. Section 25.045(c), Education Code, is amended
347	347	to read as follows:
348	348	(c) A student who transfers to another school district under
349	349	this section may not be charged tuition. The student is included in
350	350	the average enrollment [daily attendance] of the district in which
351	351	the student attends school.
352	352	SECTION 12. Sections 25.081(e) and (f), Education Code, are
353	353	amended to read as follows:
354	354	(e) A school district or education program is exempt from
355	355	the minimum minutes of operation requirement if the district's or
356	356	program's average enrollment [daily attendance] is calculated
357	357	under Section 48.005(j).
358	358	(f) The commissioner may proportionally reduce the amount
359	359	of funding a district receives under Chapter 46, 48, or 49 and the
360	360	average enrollment [daily attendance] calculation for the district
361	361	if the district operates on a calendar that provides fewer minutes
362	362	of operation than required under Subsection (a).
363	363	SECTION 13. Section 25.087(d), Education Code, is amended
364	364	to read as follows:
365	365	(d) A student whose absence is excused under Subsection (b),
366	366	(b-1), (b-2), (b-4), (b-5), (b-7), or (c) may not be penalized for
367	367	that absence and shall be counted as if the student attended school
368	368	for purposes of funding under Chapter 48 [calculating the average
369	369	daily attendance of students in the school district]. A student
370	370	whose absence is excused under Subsection (b), (b-1), (b-2), (b-4),
371	371	(b-5), (b-7), or (c) shall be allowed a reasonable time to make up
372	372	school work missed on those days. If the student satisfactorily
373	373	completes the school work, the day of absence shall be counted as a
374	374	day of compulsory attendance.
375	375	SECTION 14. Section 25.111, Education Code, is amended to
376	376	read as follows:
377	377	Sec. 25.111. STUDENT/TEACHER RATIOS. Except as provided by
378	378	Section 25.112, each school district must employ a sufficient
379	379	number of teachers certified under Subchapter B, Chapter 21, to
380	380	maintain an average ratio of not less than one teacher for each 20
381	381	students in average enrollment [daily attendance].
382	382	SECTION 15. Sections 25.112(a) and (b), Education Code, are
383	383	amended to read as follows:
384	384	(a) Except as otherwise authorized by this section, a school
385	385	district may not enroll more than 22 students in a prekindergarten,
386	386	kindergarten, first, second, third, or fourth grade class. That
387	387	limitation does not apply during:
388	388	(1) any 12-week period of the school year selected by
389	389	the district, in the case of a district whose average enrollment
390	390	[daily attendance] is adjusted under Section 48.005(c); or
391	391	(2) the last 12 weeks of any school year in the case of
392	392	any other district.
393	393	(b) Not later than the 30th day after the first day of the
394	394	12-week period for which a district whose average enrollment [daily
395	395	attendance] is adjusted under Section 48.005(c) is claiming an
396	396	exemption under Subsection (a), the district shall notify the
397	397	commissioner in writing that the district is claiming an exemption
398	398	for the period stated in the notice.
399	399	SECTION 16. Section 29.008(b), Education Code, is amended
400	400	to read as follows:
401	401	(b) Except as provided by Subsection (c), costs of an
402	402	approved contract for residential placement may be paid from a
403	403	combination of federal, state, and local funds. The local share of
404	404	the total contract cost for each student is that portion of the
405	405	local tax effort that exceeds the district's local fund assignment
406	406	under Section 48.256, divided by the average enrollment [daily
407	407	attendance] in the district. If the contract involves a private
408	408	facility, the state share of the total contract cost is that amount
409	409	remaining after subtracting the local share. If the contract
410	410	involves a public facility, the state share is that amount
411	411	remaining after subtracting the local share from the portion of the
412	412	contract that involves the costs of instructional and related
413	413	services. For purposes of this subsection, "local tax effort"
414	414	means the total amount of money generated by taxes imposed for debt
415	415	service and maintenance and operation less any amounts paid into a
416	416	tax increment fund under Chapter 311, Tax Code.
417	417	SECTION 17. Section 29.014(b), Education Code, is amended
418	418	to read as follows:
419	419	(b) A school district to which this section applies may
420	420	operate an extended year program for a period not to exceed 45 days.
421	421	[The district's average daily attendance shall be computed for the
422	422	regular school year plus the extended year.]
423	423	SECTION 18. Section 29.081(f), Education Code, is amended
424	424	to read as follows:
425	425	(f) The commissioner shall include students enrolled in
426	426	[attendance in] a program under Subsection (e) in the computation
427	427	of the district's average enrollment [daily attendance] for funding
428	428	purposes.
429	429	SECTION 19. Section 29.0822(d), Education Code, is amended
430	430	to read as follows:
431	431	(d) The commissioner may adopt rules for the administration
432	432	of this section, including rules establishing application
433	433	requirements. [Subject to Subsection (d-1), the commissioner shall
434	434	calculate average daily attendance for students served under this
435	435	section. The commissioner shall allow accumulations of hours of
436	436	instruction for students whose schedule would not otherwise allow
437	437	full state funding. Funding under this subsection shall be
438	438	determined based on the number of instructional days in the school
439	439	district calendar and a seven-hour school day, but attendance may
440	440	be cumulated over a school year, including any summer or vacation
441	441	session. The attendance of students who accumulate less than the
442	442	number of attendance hours required under this subsection shall be
443	443	proportionately reduced for funding purposes. The commissioner
444	444	may:
445	445	[(1) set maximum funding amounts for an individual
446	446	course under this section; and
447	447	[(2) limit funding for the attendance of a student
448	448	described by Subsection (a)(3) in a course under this section to
449	449	funding only for the attendance necessary for the student to earn
450	450	class credit that, as a result of attendance requirements under
451	451	Section 25.092, the student would not otherwise be able to receive
452	452	without retaking the class.]
453	453	SECTION 20. Section 29.184(b), Education Code, is amended
454	454	to read as follows:
455	455	(b) A student who attends career and technology classes at
456	456	another school under a contract authorized by Subsection (a) is
457	457	included in the average enrollment [daily attendance] of the
458	458	district in which the student is regularly enrolled.
459	459	SECTION 21. Sections 29.203(a) and (c), Education Code, are
460	460	amended to read as follows:
461	461	(a) A student who under this subchapter uses a public
462	462	education grant to attend a public school in a school district other
463	463	than the district in which the student resides is included in the
464	464	average enrollment [daily attendance] of the district in which the
465	465	student attends school.
466	466	(c) A school district is entitled to additional facilities
467	467	assistance under Section 48.301 if the district agrees to:
468	468	(1) accept a number of students using public education
469	469	grants that is at least one percent of the district's average
470	470	enrollment [daily attendance] for the preceding school year; and
471	471	(2) provide services to each student until the student
472	472	either voluntarily decides to attend a school in a different
473	473	district or graduates from high school.
474	474	SECTION 22. Section 29.403(b), Education Code, is amended
475	475	to read as follows:
476	476	(b) A student who is enrolled in a program under this
477	477	subchapter is included in determining the average enrollment [daily
478	478	attendance] under Section 48.005 of the partnering school district.
479	479	SECTION 23. Section 29.457(a), Education Code, is amended
480	480	to read as follows:
481	481	(a) In addition to other funding to which a school district
482	482	is entitled under this code, each district in which alleged
483	483	offender residents attend school is entitled to an annual allotment
484	484	of $5,100 for each resident in average enrollment [daily
485	485	attendance] or a different amount for any year provided by
486	486	appropriation.
487	487	SECTION 24. Section 30.003(b), Education Code, is amended
488	488	to read as follows:
489	489	(b) If the student is admitted to the school for a full-time
490	490	program for the equivalent of two long semesters, the district's
491	491	share of the cost is an amount equal to the dollar amount of
492	492	maintenance and debt service taxes imposed by the district for that
493	493	year divided by the district's average enrollment [daily
494	494	attendance] for the preceding year.
495	495	SECTION 25. Section 30.102(a), Education Code, is amended
496	496	to read as follows:
497	497	(a) The Texas Juvenile Justice Department is entitled to
498	498	receive the state available school fund apportionment based on the
499	499	average enrollment [daily attendance] in the department's
500	500	educational programs of students who are at least three years of age
501	501	and not older than 21 years of age.
502	502	SECTION 26. Section 30A.151(f), Education Code, is amended
503	503	to read as follows:
504	504	(f) For a full-time electronic course program offered
505	505	through the state virtual school network for a grade level at or
506	506	above grade level three but not above grade level eight, a school
507	507	district or open-enrollment charter school is entitled to receive
508	508	federal, state, and local funding for a student enrolled in the
509	509	program in an amount equal to the funding the district or school
510	510	would otherwise receive for a student enrolled in the district or
511	511	school. [The district or school may calculate the average daily
512	512	attendance of a student enrolled in the program based on:
513	513	[(1) hours of contact with the student;
514	514	[(2) the student's successful completion of a course;
515	515	or
516	516	[(3) a method approved by the commissioner.]
517	517	SECTION 27. Section 33.157, Education Code, is amended to
518	518	read as follows:
519	519	Sec. 33.157. PARTICIPATION IN PROGRAM. An elementary or
520	520	secondary school receiving funding under Section 33.156 shall
521	521	participate in a local Communities In Schools program if the number
522	522	of students enrolled in the school who are at risk of dropping out
523	523	of school is equal to at least 10 percent of the number of students
524	524	in average enrollment [daily attendance] at the school, as
525	525	determined by the agency.
526	526	SECTION 28. Section 37.0061, Education Code, is amended to
527	527	read as follows:
528	528	Sec. 37.0061. FUNDING FOR ALTERNATIVE EDUCATION SERVICES IN
529	529	JUVENILE RESIDENTIAL FACILITIES. A school district that provides
530	530	education services to pre-adjudicated and post-adjudicated
531	531	students who are confined by court order in a juvenile residential
532	532	facility operated by a juvenile board is entitled to count such
533	533	students in the district's average enrollment [daily attendance]
534	534	for purposes of receipt of state funds under the Foundation School
535	535	Program. If the district has a local revenue level greater than the
536	536	guaranteed local revenue level but less than the level established
537	537	under Section 48.257, the district in which the student is enrolled
538	538	on the date a court orders the student to be confined to a juvenile
539	539	residential facility shall transfer to the district providing
540	540	education services an amount equal to the difference between the
541	541	average Foundation School Program costs per student of the district
542	542	providing education services and the sum of the state aid and the
543	543	money from the available school fund received by the district that
544	544	is attributable to the student for the portion of the school year
545	545	for which the district provides education services to the student.
546	546	SECTION 29. Section 37.008(f), Education Code, is amended
547	547	to read as follows:
548	548	(f) A student removed to a disciplinary alternative
549	549	education program is counted in computing the average enrollment
550	550	[daily attendance] of students in the district [for the student's
551	551	time in actual attendance in the program].
552	552	SECTION 30. Section 37.011(a-4), Education Code, is amended
553	553	to read as follows:
554	554	(a-4) A school district located in a county considered to be
555	555	a county with a population of 125,000 or less under Subsection (a-3)
556	556	shall provide educational services to a student who is expelled
557	557	from school under this chapter. The district is entitled to count
558	558	the student in the district's average enrollment [daily attendance]
559	559	for purposes of receipt of state funds under the Foundation School
560	560	Program. An educational placement under this section may include:
561	561	(1) the district's disciplinary alternative education
562	562	program; or
563	563	(2) a contracted placement with:
564	564	(A) another school district;
565	565	(B) an open-enrollment charter school;
566	566	(C) an institution of higher education;
567	567	(D) an adult literacy council; or
568	568	(E) a community organization that can provide an
569	569	educational program that allows the student to complete the credits
570	570	required for high school graduation.
571	571	SECTION 31. Sections 39.027(c) and (f), Education Code, are
572	572	amended to read as follows:
573	573	(c) The commissioner shall develop and adopt a process for
574	574	reviewing the exemption process of a school district or shared
575	575	services arrangement that gives an exemption under Subsection
576	576	(a)(1) as follows:
577	577	(1) to more than five percent of the students in the
578	578	special education program, in the case of a district or shared
579	579	services arrangement with an average enrollment [daily attendance]
580	580	of at least 1,600;
581	581	(2) to more than 10 percent of the students in the
582	582	special education program, in the case of a district or shared
583	583	services arrangement with an average enrollment [daily attendance]
584	584	of at least 190 and not more than 1,599; or
585	585	(3) to the greater of more than 10 percent of the
586	586	students in the special education program or to at least five
587	587	students in the special education program, in the case of a district
588	588	or shared services arrangement with an average enrollment [daily
589	589	attendance] of not more than 189.
590	590	(f) In this section, "average enrollment [daily
591	591	attendance]" is computed in the manner provided by Section 48.005.
592	592	SECTION 32. Section 39.053(g-1), Education Code, is amended
593	593	to read as follows:
594	594	(g-1) In computing dropout and completion rates such as high
595	595	school graduation rates under Subsection (c)(1)(B)(ix), the
596	596	commissioner shall exclude:
597	597	(1) students who are ordered by a court to attend a
598	598	high school equivalency certificate program but who have not yet
599	599	earned a high school equivalency certificate;
600	600	(2) students who were previously reported to the state
601	601	as dropouts, including a student who is reported as a dropout,
602	602	reenrolls, and drops out again, regardless of the number of times of
603	603	reenrollment and dropping out;
604	604	(3) students in attendance who are not in membership
605	605	for purposes of average enrollment [daily attendance];
606	606	(4) students whose initial enrollment in a school in
607	607	the United States in grades 7 through 12 was as an unschooled asylee
608	608	or refugee as defined by Section 39.027(a-1);
609	609	(5) students who are detained at a county
610	610	pre-adjudication or post-adjudication juvenile detention facility
611	611	and:
612	612	(A) in the district exclusively as a function of
613	613	having been detained at the facility but are otherwise not students
614	614	of the district in which the facility is located; or
615	615	(B) provided services by an open-enrollment
616	616	charter school exclusively as the result of having been detained at
617	617	the facility;
618	618	(6) students who are incarcerated in state jails and
619	619	federal penitentiaries as adults and as persons certified to stand
620	620	trial as adults; and
621	621	(7) students who have suffered a condition, injury, or
622	622	illness that requires substantial medical care and leaves the
623	623	student:
624	624	(A) unable to attend school; and
625	625	(B) assigned to a medical or residential
626	626	treatment facility.
627	627	SECTION 33. Section 39.262(a), Education Code, is amended
628	628	to read as follows:
629	629	(a) The governor may present a financial award to the
630	630	schools or districts that the commissioner determines have
631	631	demonstrated the highest levels of sustained success or the
632	632	greatest improvement in achieving the education goals. For each
633	633	student in average enrollment [daily attendance], each of those
634	634	schools or districts is entitled to an amount set for the award for
635	635	which the school or district is selected by the commissioner,
636	636	subject to any limitation set by the commissioner on the total
637	637	amount that may be awarded to a school or district.
638	638	SECTION 34. Section 43.001(c), Education Code, is amended
639	639	to read as follows:
640	640	(c) The term "scholastic population" in Subsection (b) or
641	641	any other law governing the apportionment, distribution, and
642	642	transfer of the available school fund means all students of school
643	643	age [enrolled] in average enrollment [daily attendance] the
644	644	preceding school year in the public elementary and high school
645	645	grades of school districts within or under the jurisdiction of a
646	646	county of this state.
647	647	SECTION 35. Section 44.004(c), Education Code, is amended
648	648	to read as follows:
649	649	(c) The notice of public meeting to discuss and adopt the
650	650	budget and the proposed tax rate may not be smaller than one-quarter
651	651	page of a standard-size or a tabloid-size newspaper, and the
652	652	headline on the notice must be in 18-point or larger type. Subject
653	653	to Subsection (d), the notice must:
654	654	(1) contain a statement in the following form:
655	655	"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
656	656	"The (name of school district) will hold a public meeting at
657	657	(time, date, year) in (name of room, building, physical location,
658	658	city, state). The purpose of this meeting is to discuss the school
659	659	district's budget that will determine the tax rate that will be
660	660	adopted. Public participation in the discussion is invited." The
661	661	statement of the purpose of the meeting must be in bold type. In
662	662	reduced type, the notice must state: "The tax rate that is
663	663	ultimately adopted at this meeting or at a separate meeting at a
664	664	later date may not exceed the proposed rate shown below unless the
665	665	district publishes a revised notice containing the same information
666	666	and comparisons set out below and holds another public meeting to
667	667	discuss the revised notice." In addition, in reduced type, the
668	668	notice must state: "Visit Texas.gov/PropertyTaxes to find a link to
669	669	your local property tax database on which you can easily access
670	670	information regarding your property taxes, including information
671	671	about proposed tax rates and scheduled public hearings of each
672	672	entity that taxes your property.";
673	673	(2) contain a section entitled "Comparison of Proposed
674	674	Budget with Last Year's Budget," which must show the difference,
675	675	expressed as a percent increase or decrease, as applicable, in the
676	676	amounts budgeted for the preceding fiscal year and the amount
677	677	budgeted for the fiscal year that begins in the current tax year for
678	678	each of the following:
679	679	(A) maintenance and operations;
680	680	(B) debt service; and
681	681	(C) total expenditures;
682	682	(3) contain a section entitled "Total Appraised Value
683	683	and Total Taxable Value," which must show the total appraised value
684	684	and the total taxable value of all property and the total appraised
685	685	value and the total taxable value of new property taxable by the
686	686	district in the preceding tax year and the current tax year as
687	687	calculated under Section 26.04, Tax Code;
688	688	(4) contain a statement of the total amount of the
689	689	outstanding and unpaid bonded indebtedness of the school district;
690	690	(5) contain a section entitled "Comparison of Proposed
691	691	Rates with Last Year's Rates," which must:
692	692	(A) show in rows the tax rates described by
693	693	Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
694	694	property, for columns entitled "Maintenance & Operations,"
695	695	"Interest & Sinking Fund," and "Total," which is the sum of
696	696	"Maintenance & Operations" and "Interest & Sinking Fund":
697	697	(i) the school district's "Last Year's
698	698	Rate";
699	699	(ii) the "Rate to Maintain Same Level of
700	700	Maintenance & Operations Revenue & Pay Debt Service," which:
701	701	(a) in the case of "Maintenance &
702	702	Operations," is the tax rate that, when applied to the current
703	703	taxable value for the district, as certified by the chief appraiser
704	704	under Section 26.01, Tax Code, and as adjusted to reflect changes
705	705	made by the chief appraiser as of the time the notice is prepared,
706	706	would impose taxes in an amount that, when added to state funds to
707	707	be distributed to the district under Chapter 48, would provide the
708	708	same amount of maintenance and operations taxes and state funds
709	709	distributed under Chapter 48 per student in average enrollment
710	710	[daily attendance] for the applicable school year that was
711	711	available to the district in the preceding school year; and
712	712	(b) in the case of "Interest & Sinking
713	713	Fund," is the tax rate that, when applied to the current taxable
714	714	value for the district, as certified by the chief appraiser under
715	715	Section 26.01, Tax Code, and as adjusted to reflect changes made by
716	716	the chief appraiser as of the time the notice is prepared, and when
717	717	multiplied by the district's anticipated collection rate, would
718	718	impose taxes in an amount that, when added to state funds to be
719	719	distributed to the district under Chapter 46 and any excess taxes
720	720	collected to service the district's debt during the preceding tax
721	721	year but not used for that purpose during that year, would provide
722	722	the amount required to service the district's debt; and
723	723	(iii) the "Proposed Rate";
724	724	(B) contain fourth and fifth columns aligned with
725	725	the columns required by Paragraph (A) that show, for each row
726	726	required by Paragraph (A):
727	727	(i) the "Local Revenue per Student," which
728	728	is computed by multiplying the district's total taxable value of
729	729	property, as certified by the chief appraiser for the applicable
730	730	school year under Section 26.01, Tax Code, and as adjusted to
731	731	reflect changes made by the chief appraiser as of the time the
732	732	notice is prepared, by the total tax rate, and dividing the product
733	733	by the number of students in average enrollment [daily attendance]
734	734	in the district for the applicable school year; and
735	735	(ii) the "State Revenue per Student," which
736	736	is computed by determining the amount of state aid received or to be
737	737	received by the district under Chapters 43, 46, and 48 and dividing
738	738	that amount by the number of students in average enrollment [daily
739	739	attendance] in the district for the applicable school year; and
740	740	(C) contain an asterisk after each calculation
741	741	for "Interest & Sinking Fund" and a footnote to the section that, in
742	742	reduced type, states "The Interest & Sinking Fund tax revenue is
743	743	used to pay for bonded indebtedness on construction, equipment, or
744	744	both. The bonds, and the tax rate necessary to pay those bonds, were
745	745	approved by the voters of this district.";
746	746	(6) contain a section entitled "Comparison of Proposed
747	747	Levy with Last Year's Levy on Average Residence," which must:
748	748	(A) show in rows the information described by
749	749	Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
750	750	entitled "Last Year" and "This Year":
751	751	(i) "Average Market Value of Residences,"
752	752	determined using the same group of residences for each year;
753	753	(ii) "Average Taxable Value of Residences,"
754	754	determined after taking into account the limitation on the
755	755	appraised value of residences under Section 23.23, Tax Code, and
756	756	after subtracting all homestead exemptions applicable in each year,
757	757	other than exemptions available only to disabled persons or persons
758	758	65 years of age or older or their surviving spouses, and using the
759	759	same group of residences for each year;
760	760	(iii) "Last Year's Rate Versus Proposed
761	761	Rate per $100 Value"; and
762	762	(iv) "Taxes Due on Average Residence,"
763	763	determined using the same group of residences for each year; and
764	764	(B) contain the following information: "Increase
765	765	(Decrease) in Taxes" expressed in dollars and cents, which is
766	766	computed by subtracting the "Taxes Due on Average Residence" for
767	767	the preceding tax year from the "Taxes Due on Average Residence" for
768	768	the current tax year;
769	769	(7) contain the following statement in bold print:
770	770	"Under state law, the dollar amount of school taxes imposed on the
771	771	residence of a person 65 years of age or older or of the surviving
772	772	spouse of such a person, if the surviving spouse was 55 years of age
773	773	or older when the person died, may not be increased above the amount
774	774	paid in the first year after the person turned 65, regardless of
775	775	changes in tax rate or property value.";
776	776	(8) contain the following statement in bold print:
777	777	"Notice of Voter-Approval Rate: The highest tax rate the district
778	778	can adopt before requiring voter approval at an election is (the
779	779	school district voter-approval rate determined under Section
780	780	26.08, Tax Code). This election will be automatically held if the
781	781	district adopts a rate in excess of the voter-approval rate of (the
782	782	school district voter-approval rate)."; and
783	783	(9) contain a section entitled "Fund Balances," which
784	784	must include the estimated amount of interest and sinking fund
785	785	balances and the estimated amount of maintenance and operation or
786	786	general fund balances remaining at the end of the current fiscal
787	787	year that are not encumbered with or by corresponding debt
788	788	obligation, less estimated funds necessary for the operation of the
789	789	district before the receipt of the first payment under Chapter 48 in
790	790	the succeeding school year.
791	791	SECTION 36. Sections 45.0011(a), (d), and (e), Education
792	792	Code, are amended to read as follows:
793	793	(a) This section applies only to an independent school
794	794	district that, at the time of the issuance of obligations and
795	795	execution of credit agreements under this section, has:
796	796	(1) at least 2,000 students in average enrollment
797	797	[daily attendance]; or
798	798	(2) a combined aggregate principal amount of at least
799	799	$50 million of outstanding bonds and voted but unissued bonds.
800	800	(d) A district may not issue bonds to which this section
801	801	applies in an amount greater than the greater of:
802	802	(1) 25 percent of the sum of:
803	803	(A) the aggregate principal amount of all
804	804	district debt payable from ad valorem taxes that is outstanding at
805	805	the time the bonds are issued; and
806	806	(B) the aggregate principal amount of all bonds
807	807	payable from ad valorem taxes that have been authorized but not
808	808	issued;
809	809	(2) $25 million, in a district that has at least 3,500
810	810	but not more than 15,000 students in average enrollment [daily
811	811	attendance]; or
812	812	(3) $50 million, in a district that has more than
813	813	15,000 students in average enrollment [daily attendance].
814	814	(e) In this section, average enrollment [daily attendance]
815	815	is determined in the manner provided by Section 48.005.
816	816	SECTION 37. Section 45.006(a), Education Code, is amended
817	817	to read as follows:
818	818	(a) This section applies only to a school district that:
819	819	(1) has an average enrollment [daily attendance] of
820	820	less than 10,000; and
821	821	(2) is located in whole or part in a municipality with
822	822	a population of less than 25,000 that is located in a county with a
823	823	population of 200,000 or more bordering another county with a
824	824	population of 2.8 million or more.
825	825	SECTION 38. Section 45.105(d), Education Code, is amended
826	826	to read as follows:
827	827	(d) An independent school district that has in its limits a
828	828	municipality with a population of 150,000 or more or that contains
829	829	at least 170 square miles, has $850 million or more assessed value
830	830	of taxable property on the most recent approved tax roll and has a
831	831	growth in average enrollment [daily attendance] of 11 percent or
832	832	more for each of the preceding five years as determined by the
833	833	agency may, in buying school sites or additions to school sites and
834	834	in building school buildings, issue and deliver negotiable or
835	835	nonnegotiable notes representing all or part of the cost to the
836	836	school district of the land or building. The district may secure the
837	837	notes by a vendor's lien or deed of trust lien against the land or
838	838	building. By resolution or order of the governing body made at or
839	839	before the delivery of the notes, the district may set aside and
840	840	appropriate as a trust fund, and the sole and only fund, for the
841	841	payment of the principal of and interest on the notes that part of
842	842	the local school funds, levied and collected by the school district
843	843	in that year or subsequent years, as the governing body determines.
844	844	The aggregate amount of local school funds set aside in or for any
845	845	subsequent year for the retirement of the notes may not exceed, in
846	846	any one subsequent year, 10 percent of the local school funds
847	847	collected during that year. The district may issue the notes only if
848	848	approved by majority vote of the qualified voters voting in an
849	849	election conducted in the manner provided by Section 45.003 for
850	850	approval of bonds.
851	851	SECTION 39. Section 46.003(a), Education Code, is amended
852	852	to read as follows:
853	853	(a) For each year, except as provided by Sections 46.005 and
854	854	46.006, a school district is guaranteed a specified amount per
855	855	student in state and local funds for each cent of tax effort, up to
856	856	the maximum rate under Subsection (b), to pay the principal of and
857	857	interest on eligible bonds issued to construct, acquire, renovate,
858	858	or improve an instructional facility. The amount of state support
859	859	is determined by the formula:
860	860	FYA = (FYL X AE [ADA] X BTR X 100) - (BTR X (DPV/100))
861	861	where:
862	862	"FYA" is the guaranteed facilities yield amount of state
863	863	funds allocated to the district for the year;
864	864	"FYL" is the dollar amount guaranteed level of state and
865	865	local funds per student per cent of tax effort, which is $35 or a
866	866	greater amount for any year provided by appropriation;
867	867	"AE" ["ADA"] is the greater of the number of students in
868	868	average enrollment [daily attendance], as determined under Section
869	869	48.005, in the district or 400;
870	870	"BTR" is the district's bond tax rate for the current year,
871	871	which is determined by dividing the amount budgeted by the district
872	872	for payment of eligible bonds by the quotient of the district's
873	873	taxable value of property as determined under Subchapter M, Chapter
874	874	403, Government Code, or, if applicable, Section 48.258, divided by
875	875	100; and
876	876	"DPV" is the district's taxable value of property as
877	877	determined under Subchapter M, Chapter 403, Government Code, or, if
878	878	applicable, Section 48.258.
879	879	SECTION 40. Section 46.005, Education Code, is amended to
880	880	read as follows:
881	881	Sec. 46.005. LIMITATION ON GUARANTEED AMOUNT. The
882	882	guaranteed amount of state and local funds for a new project that a
883	883	district may be awarded in any state fiscal biennium under Section
884	884	46.003 for a school district may not exceed the lesser of:
885	885	(1) the amount the actual debt service payments the
886	886	district makes in the biennium in which the bonds are issued; or
887	887	(2) the greater of:
888	888	(A) $100,000; or
889	889	(B) the product of the number of students in
890	890	average enrollment [daily attendance] in the district multiplied by
891	891	$250.
892	892	SECTION 41. Section 46.006(g), Education Code, is amended
893	893	to read as follows:
894	894	(g) In this section, "wealth per student" means a school
895	895	district's taxable value of property as determined under Subchapter
896	896	M, Chapter 403, Government Code, or, if applicable, Section 48.258,
897	897	divided by the district's average enrollment [daily attendance] as
898	898	determined under Section 48.005.
899	899	SECTION 42. Section 46.032(a), Education Code, is amended
900	900	to read as follows:
901	901	(a) Each school district is guaranteed a specified amount
902	902	per student in state and local funds for each cent of tax effort to
903	903	pay the principal of and interest on eligible bonds. The amount of
904	904	state support, subject only to the maximum amount under Section
905	905	46.034, is determined by the formula:
906	906	EDA = (EDGL X AE [ADA] X EDTR X 100) - (EDTR X (DPV/100))
907	907	where:
908	908	"EDA" is the amount of state funds to be allocated to the
909	909	district for assistance with existing debt;
910	910	"EDGL" is the dollar amount guaranteed level of state and
911	911	local funds per student per cent of tax effort, which is the lesser
912	912	of:
913	913	(1) $40 or a greater amount for any year provided by
914	914	appropriation; or
915	915	(2) the amount that would result in a total additional
916	916	amount of state funds under this subchapter for the current year
917	917	equal to $60 million in excess of the state funds to which school
918	918	districts would have been entitled under this section if the
919	919	guaranteed level amount were $35;
920	920	"AE" ["ADA"] is the number of students in average enrollment
921	921	[daily attendance], as determined under Section 48.005, in the
922	922	district;
923	923	"EDTR" is the existing debt tax rate of the district, which is
924	924	determined by dividing the amount budgeted by the district for
925	925	payment of eligible bonds by the quotient of the district's taxable
926	926	value of property as determined under Subchapter M, Chapter 403,
927	927	Government Code, or, if applicable, under Section 48.258, divided
928	928	by 100; and
929	929	"DPV" is the district's taxable value of property as
930	930	determined under Subchapter M, Chapter 403, Government Code, or, if
931	931	applicable, under Section 48.258.
932	932	SECTION 43. Sections 48.0051(a) and (b), Education Code,
933	933	are amended to read as follows:
934	934	(a) The [Subject to Subsection (a-1), the] commissioner
935	935	shall adjust the average enrollment [daily attendance] of a school
936	936	district or open-enrollment charter school under Section 48.005 in
937	937	the manner provided by Subsection (b) if the district or school:
938	938	(1) provides the minimum number of minutes of
939	939	operational and instructional time required under Section 25.081
940	940	and commissioner rules adopted under that section over at least 180
941	941	days of instruction; and
942	942	(2) offers an additional 30 days of half-day
943	943	instruction for students enrolled in prekindergarten through fifth
944	944	grade.
945	945	(b) For a school district or open-enrollment charter school
946	946	described by Subsection (a), the commissioner shall increase the
947	947	average enrollment [daily attendance] of the district or school
948	948	under Section 48.005 by the amount equal to one-sixth [that results
949	949	from the quotient] of the enrollment [sum of attendance] by
950	950	students described by Subsection (a)(2) in [for each of] the 30
951	951	additional instructional days of half-day instruction [that are
952	952	provided divided by 180].
953	953	SECTION 44. Section 48.006, Education Code, is amended to
954	954	read as follows:
955	955	Sec. 48.006. AVERAGE ENROLLMENT [DAILY ATTENDANCE] FOR
956	956	DISTRICTS IN DISASTER AREA. (a) The commissioner may adjust the
957	957	average enrollment [daily attendance] of a school district all or
958	958	part of which is located in an area declared a disaster area by the
959	959	governor under Chapter 418, Government Code, if the district
960	960	experiences a decline in average enrollment [daily attendance] that
961	961	is reasonably attributable to the impact of the disaster.
962	962	(b) The adjustment must be sufficient to ensure that the
963	963	district receives funding comparable to the funding that the
964	964	district would have received if the decline in average enrollment
965	965	[daily attendance] reasonably attributable to the impact of the
966	966	disaster had not occurred.
967	967	(c) The commissioner may make the adjustment under this
968	968	section for the two-year period following the date of the
969	969	governor's initial proclamation or executive order declaring the
970	970	state of disaster.
971	971	(d) Section 48.005(b)(2) does not apply to a district that
972	972	receives an adjustment under this section.
973	973	(e) A district that receives an adjustment under this
974	974	section may not receive any additional adjustment under Section
975	975	48.005(d) for the decline in average enrollment [daily attendance]
976	976	on which the adjustment under this section is based.
977	977	(f) For purposes of this title, a district's adjusted
978	978	average enrollment [daily attendance] under this section is
979	979	considered to be the district's average enrollment [daily
980	980	attendance] as determined under Section 48.005.
981	981	SECTION 45. Sections 48.010(a) and (b), Education Code, are
982	982	amended to read as follows:
983	983	(a) Not later than July 1 of each year, the commissioner
984	984	shall determine for each school district whether the estimated
985	985	amount of state and local funding per student in weighted average
986	986	enrollment [daily attendance] to be provided to the district under
987	987	the Foundation School Program for maintenance and operations for
988	988	the following school year is less than the amount provided to the
989	989	district for the 2010-2011 school year. If the amount estimated to
990	990	be provided is less, the commissioner shall certify the percentage
991	991	decrease in funding to be provided to the district.
992	992	(b) In making the determinations regarding funding levels
993	993	required by Subsection (a), the commissioner shall:
994	994	(1) make adjustments as necessary to reflect changes
995	995	in a school district's maintenance and operations tax rate;
996	996	(2) for a district required to reduce its local
997	997	revenue level under Section 48.257, base the determinations on the
998	998	district's net funding levels after deducting any amounts required
999	999	to be expended by the district to comply with Chapter 49; and
1000	1000	(3) determine a district's weighted average enrollment
1001	1001	[daily attendance] in accordance with this chapter as it existed on
1002	1002	January 1, 2011.
1003	1003	SECTION 46. Sections 48.051(a) and (c), Education Code, are
1004	1004	amended to read as follows:
1005	1005	(a) For each student in average enrollment [daily
1006	1006	attendance], not including the time students spend each day in
1007	1007	special education programs in an instructional arrangement other
1008	1008	than mainstream or career and technology education programs, for
1009	1009	which an additional allotment is made under Subchapter C, a
1010	1010	district is entitled to an allotment equal to the lesser of $6,160
1011	1011	or the amount that results from the following formula:
1012	1012	A = $6,160 X TR/MCR
1013	1013	where:
1014	1014	"A" is the allotment to which a district is entitled;
1015	1015	"TR" is the district's tier one maintenance and operations
1016	1016	tax rate, as provided by Section 45.0032; and
1017	1017	"MCR" is the district's maximum compressed tax rate, as
1018	1018	determined under Section 48.2551.
1019	1019	(c) During any school year for which the maximum amount of
1020	1020	the basic allotment provided under Subsection (a) or (b) is greater
1021	1021	than the maximum amount provided for the preceding school year, a
1022	1022	school district must use at least 30 percent of the amount, if the
1023	1023	amount is greater than zero, that equals the product of the average
1024	1024	enrollment [daily attendance] of the district multiplied by the
1025	1025	amount of the difference between the district's funding under this
1026	1026	chapter per student in average enrollment [daily attendance] for
1027	1027	the current school year and the preceding school year to provide
1028	1028	compensation increases to full-time district employees other than
1029	1029	administrators as follows:
1030	1030	(1) 75 percent must be used to increase the
1031	1031	compensation paid to classroom teachers, full-time librarians,
1032	1032	full-time school counselors certified under Subchapter B, Chapter
1033	1033	21, and full-time school nurses, prioritizing differentiated
1034	1034	compensation for classroom teachers with more than five years of
1035	1035	experience; and
1036	1036	(2) 25 percent may be used as determined by the
1037	1037	district to increase compensation paid to full-time district
1038	1038	employees.
1039	1039	SECTION 47. Sections 48.052(a) and (c), Education Code, are
1040	1040	amended to read as follows:
1041	1041	(a) Notwithstanding Section 48.051, a school district that
1042	1042	has fewer than 130 students in average enrollment [daily
1043	1043	attendance] shall be provided a basic allotment on the basis of 130
1044	1044	students in average enrollment [daily attendance] if it offers a
1045	1045	kindergarten through grade 12 program and has preceding or current
1046	1046	year's average enrollment [daily attendance] of at least 90
1047	1047	students or is 30 miles or more by bus route from the nearest high
1048	1048	school district. A district offering a kindergarten through grade 8
1049	1049	program whose preceding or current year's average enrollment [daily
1050	1050	attendance] was at least 50 students or which is 30 miles or more by
1051	1051	bus route from the nearest high school district shall be provided a
1052	1052	basic allotment on the basis of 75 students in average enrollment
1053	1053	[daily attendance]. An average enrollment [daily attendance] of 60
1054	1054	students shall be the basis of providing the basic allotment if a
1055	1055	district offers a kindergarten through grade 6 program and has
1056	1056	preceding or current year's average enrollment [daily attendance]
1057	1057	of at least 40 students or is 30 miles or more by bus route from the
1058	1058	nearest high school district.
1059	1059	(c) Notwithstanding Subsection (a) or Section 48.051, a
1060	1060	school district to which this subsection applies, as provided by
1061	1061	Subsection (b), that has fewer than 130 students in average
1062	1062	enrollment [daily attendance] shall be provided a basic allotment
1063	1063	on the basis of 130 students in average enrollment [daily
1064	1064	attendance] if it offers a kindergarten through grade four program
1065	1065	and has preceding or current year's average enrollment [daily
1066	1066	attendance] of at least 75 students or is 30 miles or more by bus
1067	1067	route from the nearest high school district.
1068	1068	SECTION 48. Section 48.101, Education Code, is amended to
1069	1069	read as follows:
1070	1070	Sec. 48.101. SMALL AND MID-SIZED DISTRICT ALLOTMENT. (a)
1071	1071	Small and mid-sized districts are entitled to an annual allotment
1072	1072	in accordance with this section. In this section:
1073	1073	(1) "AA" is the district's annual allotment per
1074	1074	student in average enrollment [daily attendance];
1075	1075	(2) "AE" ["ADA"] is the number of students in average
1076	1076	enrollment [daily attendance] for which the district is entitled to
1077	1077	an allotment under Section 48.051; and
1078	1078	(3) "BA" is the basic allotment determined under
1079	1079	Section 48.051.
1080	1080	(b) A school district that has fewer than 1,600 students in
1081	1081	average enrollment [daily attendance] is entitled to an annual
1082	1082	allotment for each student in average enrollment [daily attendance]
1083	1083	based on the following formula:
1084	1084	AA = ((1,600 - AE [ADA]) X .0004) X BA
1085	1085	(c) A school district that offers a kindergarten through
1086	1086	grade 12 program and has less than 5,000 students in average
1087	1087	enrollment [daily attendance] is entitled to an annual allotment
1088	1088	for each student in average enrollment [daily attendance] based on
1089	1089	the formula, of the following formulas, that results in the
1090	1090	greatest annual allotment:
1091	1091	(1) the formula in Subsection (b), if the district is
1092	1092	eligible for that formula; or
1093	1093	(2) AA = ((5,000 - AE [ADA]) X .000025) X BA.
1094	1094	(d) Instead of the allotment under Subsection (b) or (c)(1),
1095	1095	a school district that has fewer than 300 students in average
1096	1096	enrollment [daily attendance] and is the only school district
1097	1097	located in and operating in a county is entitled to an annual
1098	1098	allotment for each student in average enrollment [daily attendance]
1099	1099	based on the following formula:
1100	1100	AA = ((1,600 - AE [ADA]) X .00047) X BA
1101	1101	SECTION 49. Sections 48.102(a) and (j), Education Code, are
1102	1102	amended to read as follows:
1103	1103	(a) For each student in average enrollment [daily
1104	1104	attendance] in a special education program under Subchapter A,
1105	1105	Chapter 29, in a mainstream instructional arrangement, a school
1106	1106	district is entitled to an annual allotment equal to the basic
1107	1107	allotment, or, if applicable, the sum of the basic allotment and the
1108	1108	allotment under Section 48.101 to which the district is entitled,
1109	1109	multiplied by 1.15. For each full-time equivalent student in
1110	1110	average enrollment [daily attendance] in a special education
1111	1111	program under Subchapter A, Chapter 29, in an instructional
1112	1112	arrangement other than a mainstream instructional arrangement, a
1113	1113	district is entitled to an annual allotment equal to the basic
1114	1114	allotment, or, if applicable, the sum of the basic allotment and the
1115	1115	allotment under Section 48.101 to which the district is entitled,
1116	1116	multiplied by a weight determined according to instructional
1117	1117	arrangement as follows:
1118	1118	Homebound5.0
1119	1119	Hospital class3.0
1120	1120	Speech therapy5.0
1121	1121	Resource room3.0
1122	1122	Self-contained, mild and moderate,
1123	1123	regular campus3.0
1124	1124	Self-contained, severe, regular campus3.0
1125	1125	Off home campus2.7
1126	1126	Nonpublic day school1.7
1127	1127	Vocational adjustment class2.3
1128	1128	(j) A school district that provides an extended year program
1129	1129	required by federal law for special education students who may
1130	1130	regress is entitled to receive funds in an amount equal to 75
1131	1131	percent, or a lesser percentage determined by the commissioner, of
1132	1132	the basic allotment, or, if applicable, the sum of the basic
1133	1133	allotment and the allotment under Section 48.101 to which the
1134	1134	district is entitled for each full-time equivalent student in
1135	1135	average enrollment [daily attendance], multiplied by the amount
1136	1136	designated for the student's instructional arrangement under this
1137	1137	section[, for each day the program is provided divided by the number
1138	1138	of days in the minimum school year]. The total amount of state
1139	1139	funding for extended year services under this section may not
1140	1140	exceed $10 million per year. A school district may use funds
1141	1141	received under this section only in providing an extended year
1142	1142	program.
1143	1143	SECTION 50. Section 48.105(a), Education Code, is amended
1144	1144	to read as follows:
1145	1145	(a) For each student in average enrollment [daily
1146	1146	attendance] in a bilingual education or special language program
1147	1147	under Subchapter B, Chapter 29, a district is entitled to an annual
1148	1148	allotment equal to the basic allotment multiplied by:
1149	1149	(1) for an emergent bilingual student, as defined by
1150	1150	Section 29.052:
1151	1151	(A) 0.1; or
1152	1152	(B) 0.15 if the student is in a bilingual
1153	1153	education program using a dual language immersion/one-way or
1154	1154	two-way program model; and
1155	1155	(2) for a student not described by Subdivision (1),
1156	1156	0.05 if the student is in a bilingual education program using a dual
1157	1157	language immersion/two-way program model.
1158	1158	SECTION 51. Sections 48.106(a) and (a-1), Education Code,
1159	1159	are amended to read as follows:
1160	1160	(a) For each full-time equivalent student in average
1161	1161	enrollment [daily attendance] in an approved career and technology
1162	1162	education program in grades 7 through 12, a district is entitled to
1163	1163	an annual allotment equal to the basic allotment, or, if
1164	1164	applicable, the sum of the basic allotment and the allotment under
1165	1165	Section 48.101 to which the district is entitled, multiplied by:
1166	1166	(1) 1.1 for a full-time equivalent student in career
1167	1167	and technology education courses not in an approved program of
1168	1168	study;
1169	1169	(2) 1.28 for a full-time equivalent student in levels
1170	1170	one and two career and technology education courses in an approved
1171	1171	program of study, as identified by the agency; and
1172	1172	(3) 1.47 for a full-time equivalent student in levels
1173	1173	three and four career and technology education courses in an
1174	1174	approved program of study, as identified by the agency.
1175	1175	(a-1) In addition to the amounts under Subsection (a), for
1176	1176	each student in average enrollment [daily attendance], a district
1177	1177	is entitled to $50 for each of the following in which the student is
1178	1178	enrolled:
1179	1179	(1) a campus designated as a P-TECH school under
1180	1180	Section 29.556; or
1181	1181	(2) a campus that is a member of the New Tech Network
1182	1182	and that focuses on project-based learning and work-based
1183	1183	education.
1184	1184	SECTION 52. Section 48.107(a), Education Code, is amended
1185	1185	to read as follows:
1186	1186	(a) Except as provided by Subsection (b), for each student
1187	1187	in average enrollment [daily attendance] who is using a public
1188	1188	education grant under Subchapter G, Chapter 29, to attend school in
1189	1189	a district other than the district in which the student resides, the
1190	1190	district in which the student attends school is entitled to an
1191	1191	annual allotment equal to the basic allotment multiplied by a
1192	1192	weight of 0.1.
1193	1193	SECTION 53. Section 48.108(a), Education Code, is amended
1194	1194	to read as follows:
1195	1195	(a) For each student in average enrollment [daily
1196	1196	attendance] in kindergarten through third grade, a school district
1197	1197	is entitled to an annual allotment equal to the basic allotment
1198	1198	multiplied by 0.1 if the student is:
1199	1199	(1) educationally disadvantaged; or
1200	1200	(2) an emergent bilingual student, as defined by
1201	1201	Section 29.052, and is in a bilingual education or special language
1202	1202	program under Subchapter B, Chapter 29.
1203	1203	SECTION 54. Section 48.109(c), Education Code, is amended
1204	1204	to read as follows:
1205	1205	(c) Not more than five percent of a district's students in
1206	1206	average enrollment [daily attendance] are eligible for funding
1207	1207	under this section.
1208	1208	SECTION 55. Section 48.115(a), Education Code, is amended
1209	1209	to read as follows:
1210	1210	(a) From funds appropriated for that purpose, the
1211	1211	commissioner shall provide to a school district an annual allotment
1212	1212	in the amount provided by appropriation for each student in average
1213	1213	enrollment [daily attendance].
1214	1214	SECTION 56. Sections 48.152(d) and (e), Education Code, are
1215	1215	amended to read as follows:
1216	1216	(d) For the first school year in which students attend a new
1217	1217	instructional facility, a school district is entitled to an
1218	1218	allotment of $1,000 for each student in average enrollment [daily
1219	1219	attendance] at the facility. For the second school year in which
1220	1220	students attend that instructional facility, a school district is
1221	1221	entitled to an allotment of $1,000 for each additional student in
1222	1222	average enrollment [daily attendance] at the facility.
1223	1223	(e) For purposes of this section, the number of additional
1224	1224	students in average enrollment [daily attendance] at a facility is
1225	1225	the difference between the number of students in average enrollment
1226	1226	[daily attendance] in the current year at that facility and the
1227	1227	number of students in average enrollment [daily attendance] at that
1228	1228	facility in the preceding year.
1229	1229	SECTION 57. Section 48.153, Education Code, is amended to
1230	1230	read as follows:
1231	1231	Sec. 48.153. DROPOUT RECOVERY SCHOOL AND RESIDENTIAL
1232	1232	PLACEMENT FACILITY ALLOTMENT. A school district or open-enrollment
1233	1233	charter school is entitled to $275 for each student in average
1234	1234	enrollment [daily attendance] who:
1235	1235	(1) resides in a residential placement facility; or
1236	1236	(2) is at a district or school or a campus of the
1237	1237	district or school that is designated as a dropout recovery school
1238	1238	under Section 39.0548.
1239	1239	SECTION 58. Section 48.202(a), Education Code, is amended
1240	1240	to read as follows:
1241	1241	(a) Each school district is guaranteed a specified amount
1242	1242	per weighted student in state and local funds for each cent of tax
1243	1243	effort over that required for the district's local fund assignment
1244	1244	up to the maximum level specified in this subchapter. The amount of
1245	1245	state support, subject only to the maximum amount under Section
1246	1246	48.203, is determined by the formula:
1247	1247	GYA = (GL X WAE [WADA] X DTR X 100) - LR
1248	1248	where:
1249	1249	"GYA" is the guaranteed yield amount of state funds to be
1250	1250	allocated to the district;
1251	1251	"GL" is the dollar amount guaranteed level of state and local
1252	1252	funds per weighted student per cent of tax effort, which is an
1253	1253	amount described by Subsection (a-1) or a greater amount for any
1254	1254	year provided by appropriation;
1255	1255	"WAE" ["WADA"] is the number of students in weighted average
1256	1256	enrollment [daily attendance], which is calculated by dividing the
1257	1257	sum of the school district's allotments under Subchapters B and C by
1258	1258	the basic allotment for the applicable year;
1259	1259	"DTR" is the district enrichment tax rate of the school
1260	1260	district, which is determined by subtracting the amounts specified
1261	1261	by Subsection (b) from the total amount of maintenance and
1262	1262	operations taxes collected by the school district for the
1263	1263	applicable school year and dividing the difference by the quotient
1264	1264	of the district's taxable value of property as determined under
1265	1265	Subchapter M, Chapter 403, Government Code, or, if applicable,
1266	1266	under Section 48.258 or by the quotient of the value of "DPV" as
1267	1267	determined under Section 48.256(d) if that subsection applies to
1268	1268	the district, divided by 100; and
1269	1269	"LR" is the local revenue, which is determined by multiplying
1270	1270	"DTR" by the quotient of the district's taxable value of property as
1271	1271	determined under Subchapter M, Chapter 403, Government Code, or, if
1272	1272	applicable, under Section 48.258 or by the quotient of the value of
1273	1273	"DPV" as determined under Section 48.256(d) if that subsection
1274	1274	applies to the district, divided by 100.
1275	1275	SECTION 59. Section 48.252(b), Education Code, is amended
1276	1276	to read as follows:
1277	1277	(b) Notwithstanding any other provision of this chapter or
1278	1278	Chapter 49, a school district subject to this section is entitled to
1279	1279	receive for each student in average enrollment [daily attendance]
1280	1280	at the campus or program described by Subsection (a) an amount
1281	1281	equivalent to the difference, if the difference results in
1282	1282	increased funding, between:
1283	1283	(1) the amount described by Section 12.106; and
1284	1284	(2) the amount to which the district would be entitled
1285	1285	under this chapter.
1286	1286	SECTION 60. Section 48.2642(a), Education Code, is amended
1287	1287	to read as follows:
1288	1288	(a) Notwithstanding any other provision of this chapter,
1289	1289	the commissioner shall count toward a school district's or
1290	1290	open-enrollment charter school's average enrollment [daily
1291	1291	attendance] under Section 48.005 each student who graduates early
1292	1292	from high school in the district or school under the Texas First
1293	1293	Early High School Completion Program established under Section
1294	1294	28.0253 for the period in which the student is enrolled at an
1295	1295	eligible institution using state credit awarded under the Texas
1296	1296	First Scholarship Program established under Subchapter K-1,
1297	1297	Chapter 56, based on a 100 percent attendance rate.
1298	1298	SECTION 61. Section 48.273(a)(4), Education Code, is
1299	1299	amended to read as follows:
1300	1300	(4) "Wealth per student" means the taxable property
1301	1301	values reported by the comptroller to the commissioner under
1302	1302	Section 48.256 divided by the number of students in average
1303	1303	enrollment [daily attendance].
1304	1304	SECTION 62. Section 48.277(a), Education Code, is amended
1305	1305	to read as follows:
1306	1306	(a) A school district or open-enrollment charter school is
1307	1307	entitled to receive an annual allotment for each student in average
1308	1308	enrollment [daily attendance] in the amount equal to the
1309	1309	difference, if the difference is greater than zero, that results
1310	1310	from subtracting the total maintenance and operations revenue per
1311	1311	student in average enrollment [daily attendance] for the current
1312	1312	school year from the lesser of:
1313	1313	(1) 103 percent of the district's or school's total
1314	1314	maintenance and operations revenue per student in average
1315	1315	enrollment [daily attendance] for the 2019-2020 school year that
1316	1316	the district or school would have received under former Chapters 41
1317	1317	and 42, as those chapters existed on January 1, 2019; or
1318	1318	(2) 128 percent of the statewide average amount of
1319	1319	maintenance and operations revenue per student in average
1320	1320	enrollment [daily attendance] that would have been provided for the
1321	1321	2019-2020 school year under former Chapters 41 and 42, as those
1322	1322	chapters existed on January 1, 2019.
1323	1323	SECTION 63. Section 49.001(2), Education Code, is amended
1324	1324	to read as follows:
1325	1325	(2) "Weighted average enrollment [daily attendance]"
1326	1326	has the meaning assigned by Section 48.202.
1327	1327	SECTION 64. Section 49.002, Education Code, is amended to
1328	1328	read as follows:
1329	1329	Sec. 49.002. OPTIONS TO REDUCE LOCAL REVENUE LEVEL. A
1330	1330	district with a local revenue level in excess of entitlement may
1331	1331	take any combination of the following actions to reduce the
1332	1332	district's revenue level:
1333	1333	(1) consolidation with another district as provided by
1334	1334	Subchapter B;
1335	1335	(2) detachment of territory as provided by Subchapter
1336	1336	C;
1337	1337	(3) purchase of average enrollment [daily attendance]
1338	1338	credit as provided by Subchapter D;
1339	1339	(4) education of nonresident students as provided by
1340	1340	Subchapter E; or
1341	1341	(5) tax base consolidation with another district as
1342	1342	provided by Subchapter F.
1343	1343	SECTION 65. Section 49.003, Education Code, is amended to
1344	1344	read as follows:
1345	1345	Sec. 49.003. INCLUSION OF ENROLLMENT [ATTENDANCE] CREDIT
1346	1346	AND NONRESIDENTS IN WEIGHTED AVERAGE ENROLLMENT [DAILY
1347	1347	ATTENDANCE]. In determining whether a school district has a local
1348	1348	revenue level in excess of entitlement, the commissioner shall use:
1349	1349	(1) the district's final weighted average enrollment
1350	1350	[daily attendance]; and
1351	1351	(2) the amount of enrollment [attendance] credit a
1352	1352	district purchases under Subchapter D or the number of nonresident
1353	1353	students a district educates under Subchapter E for a school year.
1354	1354	SECTION 66. The heading to Subchapter D, Chapter 49,
1355	1355	Education Code, is amended to read as follows:
1356	1356	SUBCHAPTER D. PURCHASE OF ENROLLMENT [ATTENDANCE] CREDIT
1357	1357	SECTION 67. Section 49.151, Education Code, is amended to
1358	1358	read as follows:
1359	1359	Sec. 49.151. AGREEMENT. A school district with a local
1360	1360	revenue level in excess of entitlement may execute an agreement
1361	1361	with the commissioner to purchase enrollment [attendance] credit in
1362	1362	an amount sufficient, in combination with any other actions taken
1363	1363	under this chapter, to reduce the district's local revenue level to
1364	1364	a level that is equal to or less than the level established under
1365	1365	Section 48.257.
1366	1366	SECTION 68. Section 49.153(c), Education Code, is amended
1367	1367	to read as follows:
1368	1368	(c) The cost of enrollment [attendance] credit for a school
1369	1369	district is computed using the final tax collections of the
1370	1370	district.
1371	1371	SECTION 69. Section 49.156(b), Education Code, is amended
1372	1372	to read as follows:
1373	1373	(b) The ballot shall be printed to permit voting for or
1374	1374	against the proposition: "Authorizing the board of trustees of
1375	1375	________ School District to purchase enrollment [attendance]
1376	1376	credit from the state with local tax revenues."
1377	1377	SECTION 70. Section 49.157, Education Code, is amended to
1378	1378	read as follows:
1379	1379	Sec. 49.157. CREDIT FOR APPRAISAL COSTS. The total amount
1380	1380	required under Section 49.153 for a district to purchase enrollment
1381	1381	[attendance] credit under this subchapter for any school year is
1382	1382	reduced by an amount equal to the product of the district's total
1383	1383	costs under Section 6.06, Tax Code, for the appraisal district or
1384	1384	districts in which it participates multiplied by a percentage that
1385	1385	is computed by dividing the total amount required under Section
1386	1386	49.153 by the total amount of taxes imposed in the district for that
1387	1387	year less any amounts paid into a tax increment fund under Chapter
1388	1388	311, Tax Code.
1389	1389	SECTION 71. Section 49.158(a), Education Code, is amended
1390	1390	to read as follows:
1391	1391	(a) Sections 49.154 and 49.157 apply only to a district
1392	1392	that:
1393	1393	(1) executes an agreement to purchase enrollment
1394	1394	[attendance] credit necessary to reduce the district's local
1395	1395	revenue level to the level established under Section 48.257;
1396	1396	(2) executes an agreement to purchase enrollment
1397	1397	[attendance] credit and an agreement under Subchapter E to contract
1398	1398	for the education of nonresident students who transfer to and are
1399	1399	educated in the district but who are not charged tuition; or
1400	1400	(3) executes an agreement under Subchapter E to
1401	1401	contract for the education of nonresident students:
1402	1402	(A) to an extent that does not provide more than
1403	1403	10 percent of the reduction in local revenue required for the
1404	1404	district to achieve a local revenue level that is equal to or less
1405	1405	than the level established under Section 48.257; and
1406	1406	(B) under which all revenue paid by the district
1407	1407	to other districts, in excess of the reduction in state aid that
1408	1408	results from counting the weighted average enrollment [daily
1409	1409	attendance] of the students served in the contracting district, is
1410	1410	required to be used for funding a consortium of at least three
1411	1411	districts in a county with a population of less than 40,000 that is
1412	1412	formed to support a technology initiative.
1413	1413	SECTION 72. Section 49.201, Education Code, is amended to
1414	1414	read as follows:
1415	1415	Sec. 49.201. AGREEMENT. The board of trustees of a district
1416	1416	with a local revenue level in excess of entitlement may execute an
1417	1417	agreement to educate the students of another district in a number
1418	1418	that, when the weighted average enrollment [daily attendance] of
1419	1419	the students served is added to the weighted average enrollment
1420	1420	[daily attendance] of the contracting district, is sufficient, in
1421	1421	combination with any other actions taken under this chapter, to
1422	1422	reduce the district's local revenue level to a level that is equal
1423	1423	to or less than the level established under Section 48.257. The
1424	1424	agreement is not effective unless the commissioner certifies that
1425	1425	the transfer of weighted average enrollment [daily attendance] will
1426	1426	not result in any of the contracting districts' local revenue level
1427	1427	being greater than the level established under Section 48.257 and
1428	1428	that the agreement requires an expenditure per student in weighted
1429	1429	average enrollment [daily attendance] that is at least equal to the
1430	1430	amount per student in weighted average enrollment [daily
1431	1431	attendance] required under Section 49.153.
1432	1432	SECTION 73. Section 49.203, Education Code, is amended to
1433	1433	read as follows:
1434	1434	Sec. 49.203. WEIGHTED AVERAGE ENROLLMENT [WADA] COUNT. For
1435	1435	purposes of Chapter 48, students served under an agreement under
1436	1436	this subchapter are counted only in the weighted average enrollment
1437	1437	[daily attendance] of the district providing the services, except
1438	1438	that students served under an agreement authorized by Section
1439	1439	49.205 are counted in a manner determined by the commissioner.
1440	1440	SECTION 74. Section 49.205(b), Education Code, is amended
1441	1441	to read as follows:
1442	1442	(b) The agreement is not effective unless the commissioner
1443	1443	certifies that:
1444	1444	(1) implementation of the agreement will not result in
1445	1445	any of the affected districts' local revenue level being greater
1446	1446	than the level established under Section 48.257; and
1447	1447	(2) the agreement requires the district with a local
1448	1448	revenue level in excess of entitlement to make expenditures
1449	1449	benefiting students from other districts in an amount at least
1450	1450	equal to the amount that would be required for the district to
1451	1451	purchase enrollment [attendance] credit under Subchapter D
1452	1452	necessary, in combination with any other actions taken under this
1453	1453	chapter other than an action under this section, to reduce the
1454	1454	district's local revenue level to a level that is equal to or less
1455	1455	than the level established under Section 48.257.
1456	1456	SECTION 75. Section 49.257(b), Education Code, is amended
1457	1457	to read as follows:
1458	1458	(b) Each component district shall bear a share of the costs
1459	1459	of assessing and collecting taxes in proportion to the component
1460	1460	district's share of weighted average enrollment [daily attendance]
1461	1461	in the consolidated taxing district.
1462	1462	SECTION 76. Section 49.258, Education Code, is amended to
1463	1463	read as follows:
1464	1464	Sec. 49.258. REVENUE DISTRIBUTION. The consolidated taxing
1465	1465	district shall distribute maintenance tax revenue to the component
1466	1466	districts on the basis of the number of students in weighted average
1467	1467	enrollment [daily attendance] in the component districts.
1468	1468	SECTION 77. Sections 49.305(c) and (d), Education Code, are
1469	1469	amended to read as follows:
1470	1470	(c) If the detachment of whole parcels or items of property
1471	1471	as provided by Subsection (a) would result in a district's local
1472	1472	revenue level that is less than the level established under Section
1473	1473	48.257 by more than the product of $10,000 multiplied by weighted
1474	1474	average enrollment [daily attendance], the commissioner may not
1475	1475	detach the last parcel or item of property and shall detach the next
1476	1476	one or more parcels or items of property in descending order of
1477	1477	taxable value that would result in the school district having a
1478	1478	local revenue level that is equal to or less than the level
1479	1479	established under Section 48.257 by not more than the product of
1480	1480	$10,000 multiplied by weighted average enrollment [daily
1481	1481	attendance].
1482	1482	(d) Notwithstanding Subsections (a), (b), and (c), the
1483	1483	commissioner may detach only a portion of a parcel or item of
1484	1484	property if:
1485	1485	(1) it is not possible under this subchapter to reduce
1486	1486	the district's local revenue level to a level that is equal to or
1487	1487	less than the level established under Section 48.257 unless some or
1488	1488	all of the parcel or item of property is detached and the detachment
1489	1489	of the whole parcel or item would result in the district from which
1490	1490	it is detached having a local revenue level that is less than the
1491	1491	level established under Section 48.257 by more than the product of
1492	1492	$10,000 multiplied by weighted average enrollment [daily
1493	1493	attendance]; or
1494	1494	(2) the commissioner determines that a partial
1495	1495	detachment of that parcel or item of property is preferable to the
1496	1496	detachment of one or more other parcels or items having a lower
1497	1497	taxable value in order to minimize the number of parcels or items of
1498	1498	property to be detached consistent with the purposes of this
1499	1499	chapter.
1500	1500	SECTION 78. Section 49.306(i), Education Code, is amended
1501	1501	to read as follows:
1502	1502	(i) The commissioner may order the annexation of a portion
1503	1503	of a parcel or item of property, including a portion of property
1504	1504	treated as a whole parcel or item under Subsection (h), if:
1505	1505	(1) the annexation of the whole parcel or item would
1506	1506	result in the district eligible to receive it in the appropriate
1507	1507	priority order provided by this section having a local revenue
1508	1508	level greater than the amount by which the product of $10,000
1509	1509	multiplied by weighted average enrollment [daily attendance]
1510	1510	exceeds the taxable value of property necessary to generate
1511	1511	maintenance and operations tax revenue in the amount equal to the
1512	1512	district's entitlement under Section 48.202(a-1)(2); or
1513	1513	(2) the commissioner determines that annexation of
1514	1514	portions of the parcel or item would reduce disparities in district
1515	1515	taxable values of property necessary to generate maintenance and
1516	1516	operations tax revenue in the amount equal to a district's
1517	1517	entitlement under Section 48.202(a-1)(2) more efficiently than
1518	1518	would be possible if the parcel or item were annexed as a whole.
1519	1519	SECTION 79. Section 49.311, Education Code, is amended to
1520	1520	read as follows:
1521	1521	Sec. 49.311. STUDENT ATTENDANCE. A student who is a
1522	1522	resident of real property detached from a school district may
1523	1523	choose to attend school in that district or in the district to which
1524	1524	the property is annexed. For purposes of determining average
1525	1525	enrollment [daily attendance] under Section 48.005, the student
1526	1526	shall be counted in the district to which the property is annexed.
1527	1527	If the student chooses to attend school in the district from which
1528	1528	the property is detached, the state shall withhold any foundation
1529	1529	school funds from the district to which the property is annexed and
1530	1530	shall allocate to the district in which the student is attending
1531	1531	school those funds and the amount of funds equal to the difference
1532	1532	between the state funds the district is receiving for the student
1533	1533	and the district's cost in educating the student.
1534	1534	SECTION 80. Section 49.354(e), Education Code, is amended
1535	1535	to read as follows:
1536	1536	(e) A restored district's proportionate share of fund
1537	1537	balances, personal property, or indebtedness is equal to the
1538	1538	proportion that the number of students in average enrollment [daily
1539	1539	attendance] in the restored district bears to the number of
1540	1540	students in average enrollment [daily attendance] in the
1541	1541	consolidated district.
1542	1542	SECTION 81. Section 403.104(d), Government Code, is amended
1543	1543	to read as follows:
1544	1544	(d) The proportionate share of an independent school
1545	1545	district is determined by multiplying the total amount of the
1546	1546	payment available for distribution to school districts by the ratio
1547	1547	that the average number of [daily attendance for] students who
1548	1548	reside in the county and are enrolled in [who attend] that school
1549	1549	district bears to the average number of [daily attendance for] all
1550	1550	students who reside in the county and are enrolled in [who attend]
1551	1551	any independent school district. However, if there are fewer than
1552	1552	10 independent school districts located in whole or part in the
1553	1553	county and if an independent school district would receive under
1554	1554	this formula less than 10 percent of the total payment available for
1555	1555	distribution to independent school districts, the school
1556	1556	district's share shall be increased to 10 percent of the total
1557	1557	payment and the shares of the school districts that would receive
1558	1558	more than 10 percent under the formula shall be reduced
1559	1559	proportionately, but not to an amount less than 10 percent of the
1560	1560	total payment. [Each independent school district shall develop a
1561	1561	reasonable method for determining the average daily attendance for
1562	1562	students who reside in the county and who attend the school
1563	1563	district.]
1564	1564	SECTION 82. Section 1371.001(4), Government Code, is
1565	1565	amended to read as follows:
1566	1566	(4) "Issuer" means:
1567	1567	(A) a home-rule municipality that:
1568	1568	(i) adopted its charter under Section 5,
1569	1569	Article XI, Texas Constitution;
1570	1570	(ii) has a population of 50,000 or more; and
1571	1571	(iii) has outstanding long-term
1572	1572	indebtedness that is rated by a nationally recognized rating agency
1573	1573	for municipal securities in one of the four highest rating
1574	1574	categories for a long-term obligation;
1575	1575	(B) a conservation and reclamation district
1576	1576	created and organized as a river authority under Section 52,
1577	1577	Article III, or Section 59, Article XVI, Texas Constitution;
1578	1578	(C) a joint powers agency organized and operating
1579	1579	under Chapter 163, Utilities Code;
1580	1580	(D) a metropolitan rapid transit authority,
1581	1581	regional transportation authority, or coordinated county
1582	1582	transportation authority created, organized, or operating under
1583	1583	Chapter 451, 452, or 460, Transportation Code;
1584	1584	(E) a conservation and reclamation district
1585	1585	organized or operating as a navigation district under Section 52,
1586	1586	Article III, or Section 59, Article XVI, Texas Constitution;
1587	1587	(F) a district organized or operating under
1588	1588	Section 59, Article XVI, Texas Constitution, that has all or part of
1589	1589	two or more municipalities within its boundaries;
1590	1590	(G) a state agency, including a state institution
1591	1591	of higher education;
1592	1592	(H) a hospital authority created or operating
1593	1593	under Chapter 262 or 264, Health and Safety Code, in a county that:
1594	1594	(i) has a population of more than 3.3
1595	1595	million; or
1596	1596	(ii) is included, in whole or in part, in a
1597	1597	standard metropolitan statistical area of this state that includes
1598	1598	a county with a population of more than 2.2 million;
1599	1599	(I) a hospital district in a county that has a
1600	1600	population of more than two million;
1601	1601	(J) a nonprofit corporation organized to
1602	1602	exercise the powers of a higher education loan authority under
1603	1603	Section 53B.47(e), Education Code;
1604	1604	(K) a county:
1605	1605	(i) that has a population of 3.3 million or
1606	1606	more; or
1607	1607	(ii) that, on the date of issuance of
1608	1608	obligations under this chapter, has authorized, outstanding, or any
1609	1609	combination of authorized and outstanding, indebtedness of at least
1610	1610	$100 million secured by and payable from the county's ad valorem
1611	1611	taxes and the authorized long-term indebtedness of which is rated
1612	1612	by a nationally recognized rating agency of securities issued by
1613	1613	local governments in one of the four highest rating categories for a
1614	1614	long-term obligation;
1615	1615	(L) an independent school district that has an
1616	1616	average enrollment [daily attendance] of 50,000 or more as
1617	1617	determined under Section 48.005, Education Code;
1618	1618	(M) a municipality or county operating under
1619	1619	Chapter 334, Local Government Code;
1620	1620	(N) a district created under Chapter 335, Local
1621	1621	Government Code;
1622	1622	(O) a junior college district that has a total
1623	1623	headcount enrollment of 40,000 or more based on enrollment in the
1624	1624	most recent regular semester; or
1625	1625	(P) an issuer, as defined by Section 1201.002,
1626	1626	that has:
1627	1627	(i) a principal amount of at least $100
1628	1628	million in outstanding long-term indebtedness, in long-term
1629	1629	indebtedness proposed to be issued, or in a combination of
1630	1630	outstanding or proposed long-term indebtedness; and
1631	1631	(ii) some amount of long-term indebtedness
1632	1632	outstanding or proposed to be issued that is rated in one of the
1633	1633	four highest rating categories for long-term debt instruments by a
1634	1634	nationally recognized rating agency for municipal securities,
1635	1635	without regard to the effect of any credit agreement or other form
1636	1636	of credit enhancement entered into in connection with the
1637	1637	obligation.
1638	1638	SECTION 83. Section 1431.001(3), Government Code, is
1639	1639	amended to read as follows:
1640	1640	(3) "Eligible school district" means an independent
1641	1641	school district that has an average enrollment [daily attendance]
1642	1642	of 190,000 or more as determined under Section 48.005, Education
1643	1643	Code.
1644	1644	SECTION 84. Section 325.011(a), Local Government Code, is
1645	1645	amended to read as follows:
1646	1646	(a) The district is governed by a board of directors
1647	1647	composed of five members, with two directors appointed by the
1648	1648	commissioners court of the county, two directors appointed by the
1649	1649	governing body of the municipality having the largest population in
1650	1650	the county, and one director appointed by the governing body of the
1651	1651	school district with the largest number of students in average
1652	1652	enrollment [daily attendance] in the county. The board shall
1653	1653	manage the district and administer this chapter.
1654	1654	SECTION 85. Section 313.027(i), Tax Code, is amended to
1655	1655	read as follows:
1656	1656	(i) A person and the school district may not enter into an
1657	1657	agreement under which the person agrees to provide supplemental
1658	1658	payments to a school district or any other entity on behalf of a
1659	1659	school district in an amount that exceeds an amount equal to the
1660	1660	greater of $100 per student per year in average enrollment [daily
1661	1661	attendance], as defined by Section 48.005, Education Code, or
1662	1662	$50,000 per year, or for a period that exceeds the period beginning
1663	1663	with the period described by Section 313.021(4) and ending December
1664	1664	31 of the third tax year after the date the person's eligibility for
1665	1665	a limitation under this chapter expires. This limit does not apply
1666	1666	to amounts described by Subsection (f)(1) or (2).
1667	1667	SECTION 86. Section 1, Article 2688d, Vernon's Texas Civil
1668	1668	Statutes, is amended to read as follows:
1669	1669	Section 1. In all counties of the State where, according to
1670	1670	the preceding annual statistical report of the schools said county
1671	1671	has not more than four (4) school districts, with one (1) of such
1672	1672	districts comprising more than half of the county and having more
1673	1673	than two thousand (2,000) pupils in average enrollment [daily
1674	1674	attendance] in the one (1) district alone, and such district having
1675	1675	an assessed valuation of more than Twenty Million Dollars
1676	1676	($20,000,000) and where there is only one (1) common school
1677	1677	district in such county with an average enrollment [daily
1678	1678	attendance] of less than sixteen (16), the office of county
1679	1679	superintendent is hereby abolished, to be effective at the end of
1680	1680	the term of the incumbent county superintendent, as is now provided
1681	1681	by law.
1682	1682	SECTION 87. The following provisions of the Education Code
1683	1683	are repealed:
1684	1684	(1) Section 29.0822(d-1); and
1685	1685	(2) Section 48.007.
1686	1686	SECTION 88. This Act takes effect immediately if it
1687	1687	receives a vote of two-thirds of all the members elected to each
1688	1688	house, as provided by Section 39, Article III, Texas Constitution.
1689	1689	If this Act does not receive the vote necessary for immediate
1690	1690	effect, this Act takes effect on the 91st day after the last day of
1691	1691	the legislative session.