Texas 2025 - 89th Regular

Texas House Bill HB1703 Compare Versions

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1	1	89R2168 KJE-D
2	2	By: Lozano H.B. No. 1703
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the use of average enrollment for purposes of the public
10	10	school finance system.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 48.005, Education Code, is amended to
13	13	read as follows:
14	14	Sec. 48.005. AVERAGE ENROLLMENT [DAILY ATTENDANCE]. (a)
15	15	In this chapter, average enrollment [daily attendance] is:
16	16	(1) the average number of students enrolled in the
17	17	school district during a school year [quotient of the sum of
18	18	attendance for each day of the minimum number of days of instruction
19	19	as described under Section 25.081(a) divided by the minimum number
20	20	of days of instruction;
21	21	[(2) for a district that operates under a flexible
22	22	year program under Section 29.0821, the quotient of the sum of
23	23	attendance for each actual day of instruction as permitted by
24	24	Section 29.0821(b)(1) divided by the number of actual days of
25	25	instruction as permitted by Section 29.0821(b)(1);
26	26	[(3) for a district that operates under a flexible
27	27	school day program under Section 29.0822, the average daily
28	28	attendance as calculated by the commissioner in accordance with
29	29	Sections 29.0822(d) and (d-1)]; or
30	30	(2) [(4)] for a district that operates a half-day
31	31	program or a full-day program under Section 29.153(c), one-half of
32	32	the average enrollment [daily attendance] calculated under
33	33	Subdivision (1).
34	34	(b) A school district that experiences a decline of two
35	35	percent or more in average enrollment [daily attendance] shall be
36	36	funded on the basis of:
37	37	(1) the actual average enrollment [daily attendance]
38	38	of the preceding school year, if the decline is the result of the
39	39	closing or reduction in personnel of a military base; or
40	40	(2) subject to Subsection (e), an average enrollment
41	41	[daily attendance] not to exceed 98 percent of the actual average
42	42	enrollment [daily attendance] of the preceding school year, if the
43	43	decline is not the result of the closing or reduction in personnel
44	44	of a military base.
45	45	(c) The commissioner shall adjust the average enrollment
46	46	[daily attendance] of a school district that has a significant
47	47	percentage of students who are migratory children as defined by 20
48	48	U.S.C. Section 6399.
49	49	(d) The commissioner may adjust the average enrollment
50	50	[daily attendance] of a school district in which a disaster, flood,
51	51	extreme weather condition, fuel curtailment, or other calamity has
52	52	a significant effect on the district's enrollment [attendance]. In
53	53	addition to providing the adjustment for the amount of
54	54	instructional days during the semester in which the calamity first
55	55	occurred, an adjustment under this section may only be provided
56	56	based on a particular calamity for an additional amount of
57	57	instructional days equivalent to one school year. The commissioner
58	58	may divide the adjustment between two consecutive school years.
59	59	(e) For each school year, the commissioner shall adjust the
60	60	average enrollment [daily attendance] of school districts that are
61	61	entitled to funding on the basis of an adjusted average enrollment
62	62	[daily attendance] under Subsection (b)(2) so that:
63	63	(1) all districts are funded on the basis of the same
64	64	percentage of the preceding year's actual average enrollment [daily
65	65	attendance]; and
66	66	(2) the total cost to the state does not exceed the
67	67	amount specifically appropriated for that year for purposes of
68	68	Subsection (b)(2).
69	69	(f) An open-enrollment charter school is not entitled to
70	70	funding based on an adjustment under Subsection (b)(2).
71	71	(g) If a student may receive course credit toward the
72	72	student's high school academic requirements and toward the
73	73	student's higher education academic requirements for a single
74	74	course, including a course provided under Section 28.009 by a
75	75	public institution of higher education, the time during which the
76	76	student attends the course shall be counted as part of the minimum
77	77	number of instructional hours required for a student to be
78	78	considered a full-time student in average enrollment [daily
79	79	attendance] for purposes of this section.
80	80	[(g-1) The commissioner shall adopt rules to calculate
81	81	average daily attendance for students participating in a blended
82	82	learning program in which classroom instruction is supplemented
83	83	with applied workforce learning opportunities, including
84	84	participation of students in internships, externships, and
85	85	apprenticeships.]
86	86	(h) Time [Subject to rules adopted by the commissioner under
87	87	Section 48.007(b), time] that a student participates in an
88	88	off-campus instructional program provided by an entity other than a
89	89	school district or open-enrollment charter school and approved by
90	90	the commissioner in accordance with commissioner rule [under
91	91	Section 48.007(a)] shall be counted as part of the minimum number of
92	92	instructional hours required for a student to be considered a
93	93	full-time student in average enrollment [daily attendance] for
94	94	purposes of this section.
95	95	(i) A district or a charter school operating under Chapter
96	96	12 that operates a prekindergarten program is eligible to receive
97	97	one-half of average enrollment [daily attendance] under Subsection
98	98	(a) if the district's or charter school's prekindergarten program
99	99	provides at least 32,400 minutes of instructional time to students.
100	100	(j) A district or charter school is eligible to earn full
101	101	average enrollment [daily attendance] under Subsection (a) if the
102	102	district or school provides at least 43,200 minutes of
103	103	instructional time to students enrolled in:
104	104	(1) a dropout recovery school or program operating
105	105	under Section 12.1141(c) or Section 39.0548;
106	106	(2) an alternative education program operating under
107	107	Section 37.008;
108	108	(3) a school program located at a day treatment
109	109	facility, residential treatment facility, psychiatric hospital, or
110	110	medical hospital;
111	111	(4) a school program offered at a correctional
112	112	facility; or
113	113	(5) a school operating under Subchapter G, Chapter 12.
114	114	(k) A charter school operating under a charter granted under
115	115	Chapter 12 before January 1, 2015, is eligible to earn full average
116	116	enrollment [daily attendance] under Subsection (a), as that
117	117	subsection existed immediately before January 1, 2015, for:
118	118	(1) all campuses of the charter school operating
119	119	before January 1, 2015; and
120	120	(2) any campus or site expansion approved on or after
121	121	January 1, 2015, provided that the charter school received an
122	122	academic accountability performance rating of C or higher, and the
123	123	campus or site expansion is approved by the commissioner.
124	124	(l) A school district campus or charter school described by
125	125	Subsection (j) may operate more than one program and be eligible for
126	126	full average enrollment [daily attendance] for each program if the
127	127	programs operated by the district campus or charter school satisfy
128	128	all applicable state and federal requirements.
129	129	(m) The commissioner shall adopt rules necessary to
130	130	implement this section, including rules that:
131	131	(1) determine the method to calculate the average
132	132	number of students enrolled in a school district during a school
133	133	year;
134	134	(2) establish the minimum amount of instructional time
135	135	per day that allows a school district or charter school to be
136	136	eligible for full average enrollment [daily attendance], which may
137	137	differ based on the instructional program offered by the district
138	138	or charter school;
139	139	(3) [(2)] establish the requirements necessary for a
140	140	school district or charter school to be eligible for one-half of
141	141	average enrollment [daily attendance], which may differ based on
142	142	the instructional program offered by the district or charter
143	143	school;
144	144	(4) [(3)] proportionally reduce the average
145	145	enrollment [daily attendance] for a school district if any campus
146	146	or instructional program in the district provides fewer than the
147	147	required minimum minutes of instruction to students; and
148	148	(5) [(4)] allow a grade or course repeated under
149	149	Section 28.02124 to qualify for average enrollment [daily
150	150	attendance] even if the student previously passed or earned credit
151	151	for the grade or course, if the grade or course would otherwise be
152	152	eligible.
153	153	(n) To assist school districts in implementing this section
154	154	as amended by H.B. 2442, [Acts of the] 85th Legislature, Regular
155	155	Session, 2017, the commissioner may waive a requirement of this
156	156	section or adopt rules to implement this section.
157	157	SECTION 2. Section 7.062(a), Education Code, is amended to
158	158	read as follows:
159	159	(a) In this section, "wealth per student" means a school
160	160	district's taxable value of property as determined under Subchapter
161	161	M, Chapter 403, Government Code, or, if applicable, Section 48.258,
162	162	divided by the district's average enrollment [daily attendance] as
163	163	determined under Section 48.005.
164	164	SECTION 3. Section 11.052(f), Education Code, is amended to
165	165	read as follows:
166	166	(f) If single-member trustee districts are adopted or
167	167	approved as provided by this section, the board shall divide the
168	168	school district into the appropriate number of trustee districts,
169	169	based on the number of members of the board that are to be elected
170	170	from single-member trustee districts, and shall number each trustee
171	171	district. The trustee districts must be compact and contiguous and
172	172	must be as nearly as practicable of equal population. In a district
173	173	with 150,000 or more students in average enrollment [daily
174	174	attendance], the boundary of a trustee district may not cross a
175	175	county election precinct boundary except at a point at which the
176	176	boundary of the school district crosses the county election
177	177	precinct boundary. Trustee districts must be drawn not later than
178	178	the 90th day before the date of the first election of trustees from
179	179	those districts.
180	180	SECTION 4. Sections 12.106(a), (a-2), and (d), Education
181	181	Code, are amended to read as follows:
182	182	(a) A charter holder is entitled to receive for the
183	183	open-enrollment charter school funding under Chapter 48 equal to
184	184	the amount of funding per student in weighted average enrollment
185	185	[daily attendance], excluding the adjustment under Section 48.052,
186	186	the funding under Sections 48.101, 48.110, 48.111, and 48.112, and
187	187	enrichment funding under Section 48.202(a), to which the charter
188	188	holder would be entitled for the school under Chapter 48 if the
189	189	school were a school district without a tier one local share for
190	190	purposes of Section 48.266.
191	191	(a-2) In addition to the funding provided by Subsection (a),
192	192	a charter holder is entitled to receive for the open-enrollment
193	193	charter school an allotment per student in average enrollment
194	194	[daily attendance] in an amount equal to the difference between:
195	195	(1) the product of:
196	196	(A) the quotient of:
197	197	(i) the total amount of funding provided to
198	198	eligible school districts under Section 48.101(b) or (c); and
199	199	(ii) the total number of students in
200	200	average enrollment [daily attendance] in school districts that
201	201	receive an allotment under Section 48.101(b) or (c); and
202	202	(B) the sum of one and the quotient of:
203	203	(i) the total number of students in average
204	204	enrollment [daily attendance] in school districts that receive an
205	205	allotment under Section 48.101(b) or (c); and
206	206	(ii) the total number of students in
207	207	average enrollment [daily attendance] in school districts
208	208	statewide; and
209	209	(2) $125.
210	210	(d) Subject to Subsection (e), in addition to other amounts
211	211	provided by this section, a charter holder is entitled to receive,
212	212	for the open-enrollment charter school, funding per student in
213	213	average enrollment [daily attendance] in an amount equal to the
214	214	guaranteed level of state and local funds per student per cent of
215	215	tax effort under Section 46.032(a) multiplied by the lesser of:
216	216	(1) the state average interest and sinking fund tax
217	217	rate imposed by school districts for the current year; or
218	218	(2) a rate that would result in a total amount to which
219	219	charter schools are entitled under this subsection for the current
220	220	year equal to $60 million.
221	221	SECTION 5. Sections 12.263(a), (b), and (c), Education
222	222	Code, are amended to read as follows:
223	223	(a) Except as otherwise provided by this section, funding
224	224	for an adult education program operated under a charter granted
225	225	under this subchapter is an amount per participant through the
226	226	Foundation School Program equal to the amount of state funding per
227	227	student in weighted average enrollment [daily attendance] that
228	228	would be allocated under the Foundation School Program for the
229	229	student's attendance at an open-enrollment charter school in
230	230	accordance with Section 12.106.
231	231	(b) For purposes of determining the average enrollment
232	232	[daily attendance] of an adult education program operated under a
233	233	charter granted under this subchapter, a student is considered to
234	234	be in average enrollment [daily attendance, with a 100 percent
235	235	attendance rate,] for:
236	236	(1) all of the instructional days of the school year,
237	237	if the student is enrolled for at least 75 percent of the school
238	238	year;
239	239	(2) half of the instructional days of the school year,
240	240	if the student is enrolled for at least 50 percent but less than 75
241	241	percent of the school year;
242	242	(3) a quarter of the instructional days of the school
243	243	year, if the student is enrolled for at least 25 percent but less
244	244	than 50 percent of the school year; or
245	245	(4) one-tenth of the instructional days of the school
246	246	year, if the student is enrolled for at least 10 percent but less
247	247	than 25 percent of the school year.
248	248	(c) A student enrolled in an adult education program
249	249	operated under a charter granted under this subchapter for less
250	250	than 10 percent of a school year may not be counted toward the adult
251	251	education program's average enrollment [daily attendance] for that
252	252	school year.
253	253	SECTION 6. Section 13.051(c), Education Code, is amended to
254	254	read as follows:
255	255	(c) Territory that does not have residents may be detached
256	256	from a school district and annexed to another school district if:
257	257	(1) the total taxable value of the property in the
258	258	territory according to the most recent certified appraisal roll for
259	259	each school district is not greater than:
260	260	(A) five percent of the district's taxable value
261	261	of all property in that district as determined under Subchapter M,
262	262	Chapter 403, Government Code; and
263	263	(B) $5,000 property value per student in average
264	264	enrollment [daily attendance] as determined under Section 48.005;
265	265	and
266	266	(2) the school district from which the property will
267	267	be detached does not own any real property located in the territory.
268	268	SECTION 7. Section 13.102, Education Code, is amended to
269	269	read as follows:
270	270	Sec. 13.102. MINIMUM AREA AND ENROLLMENT [ATTENDANCE]
271	271	REQUIREMENTS. A new district may not be created with an area of
272	272	less than nine square miles or fewer than 8,000 students in average
273	273	enrollment [daily attendance], and a district may not be reduced to
274	274	an area of less than nine square miles or fewer than 8,000 students
275	275	in average enrollment [daily attendance].
276	276	SECTION 8. Section 13.283, Education Code, is amended to
277	277	read as follows:
278	278	Sec. 13.283. PAYMENTS REDUCED. The incentive aid payments
279	279	shall be reduced in direct proportion to any reduction in the
280	280	average enrollment [daily attendance] as determined under Section
281	281	48.005 of the reorganized school district for the preceding year.
282	282	SECTION 9. Section 19.009(d-2), Education Code, is amended
283	283	to read as follows:
284	284	(d-2) Beginning with the 2009-2010 school year, the
285	285	district shall increase the monthly salary of each classroom
286	286	teacher, full-time speech pathologist, full-time librarian,
287	287	full-time school counselor certified under Subchapter B, Chapter
288	288	21, and full-time school nurse employed by the district by the
289	289	greater of:
290	290	(1) $80; or
291	291	(2) the maximum uniform amount that, when combined
292	292	with any resulting increases in the amount of contributions made by
293	293	the district for social security coverage for the specified
294	294	employees or by the district on behalf of the specified employees
295	295	under Section 825.405, Government Code, may be provided using an
296	296	amount equal to the product of $60 multiplied by the number of
297	297	students in weighted average enrollment [daily attendance] in the
298	298	district during the 2009-2010 school year.
299	299	SECTION 10. Section 25.038, Education Code, is amended to
300	300	read as follows:
301	301	Sec. 25.038. TUITION FEE FOR TRANSFER STUDENTS. The
302	302	receiving school district may charge a tuition fee to the extent
303	303	that the district's actual expenditure per student in average
304	304	enrollment [daily attendance], as determined by its board of
305	305	trustees, exceeds the sum the district benefits from state aid
306	306	sources as provided by Section 25.037. However, unless a tuition
307	307	fee is prescribed and set out in a transfer agreement before its
308	308	execution by the parties, an increase in tuition charge may not be
309	309	made for the year of that transfer that exceeds the tuition charge,
310	310	if any, of the preceding school year.
311	311	SECTION 11. Section 25.045(c), Education Code, is amended
312	312	to read as follows:
313	313	(c) A student who transfers to another school district under
314	314	this section may not be charged tuition. The student is included in
315	315	the average enrollment [daily attendance] of the district in which
316	316	the student attends school.
317	317	SECTION 12. Sections 25.081(e) and (f), Education Code, are
318	318	amended to read as follows:
319	319	(e) A school district or education program is exempt from
320	320	the minimum minutes of operation requirement if the district's or
321	321	program's average enrollment [daily attendance] is calculated
322	322	under Section 48.005(j).
323	323	(f) The commissioner may proportionally reduce the amount
324	324	of funding a district receives under Chapter 46, 48, or 49 and the
325	325	average enrollment [daily attendance] calculation for the district
326	326	if the district operates on a calendar that provides fewer minutes
327	327	of operation than required under Subsection (a).
328	328	SECTION 13. Section 25.087(d), Education Code, is amended
329	329	to read as follows:
330	330	(d) A student whose absence is excused under Subsection (b),
331	331	(b-1), (b-2), (b-4), (b-5), (b-7), (b-8), or (c) may not be
332	332	penalized for that absence and shall be counted as if the student
333	333	attended school for purposes of funding under Chapter 48
334	334	[calculating the average daily attendance of students in the school
335	335	district]. A student whose absence is excused under Subsection (b),
336	336	(b-1), (b-2), (b-4), (b-5), (b-7), (b-8), or (c) shall be allowed a
337	337	reasonable time to make up school work missed on those days. If the
338	338	student satisfactorily completes the school work, the day of
339	339	absence shall be counted as a day of compulsory attendance.
340	340	SECTION 14. Section 25.111, Education Code, is amended to
341	341	read as follows:
342	342	Sec. 25.111. STUDENT/TEACHER RATIOS. Except as provided by
343	343	Section 25.112, each school district must employ a sufficient
344	344	number of teachers certified under Subchapter B, Chapter 21, to
345	345	maintain an average ratio of not less than one teacher for each 20
346	346	students in average enrollment [daily attendance].
347	347	SECTION 15. Sections 25.112(a) and (b), Education Code, are
348	348	amended to read as follows:
349	349	(a) Except as otherwise authorized by this section, a school
350	350	district may not enroll more than 22 students in a prekindergarten,
351	351	kindergarten, first, second, third, or fourth grade class. That
352	352	limitation does not apply during:
353	353	(1) any 12-week period of the school year selected by
354	354	the district, in the case of a district whose average enrollment
355	355	[daily attendance] is adjusted under Section 48.005(c); or
356	356	(2) the last 12 weeks of any school year in the case of
357	357	any other district.
358	358	(b) Not later than the 30th day after the first day of the
359	359	12-week period for which a district whose average enrollment [daily
360	360	attendance] is adjusted under Section 48.005(c) is claiming an
361	361	exemption under Subsection (a), the district shall notify the
362	362	commissioner in writing that the district is claiming an exemption
363	363	for the period stated in the notice.
364	364	SECTION 16. Section 29.008(b), Education Code, is amended
365	365	to read as follows:
366	366	(b) Except as provided by Subsection (c), costs of an
367	367	approved contract for residential placement may be paid from a
368	368	combination of federal, state, and local funds. The local share of
369	369	the total contract cost for each student is that portion of the
370	370	local tax effort that exceeds the district's local fund assignment
371	371	under Section 48.256, divided by the average enrollment [daily
372	372	attendance] in the district. If the contract involves a private
373	373	facility, the state share of the total contract cost is that amount
374	374	remaining after subtracting the local share. If the contract
375	375	involves a public facility, the state share is that amount
376	376	remaining after subtracting the local share from the portion of the
377	377	contract that involves the costs of instructional and related
378	378	services. For purposes of this subsection, "local tax effort"
379	379	means the total amount of money generated by taxes imposed for debt
380	380	service and maintenance and operation less any amounts paid into a
381	381	tax increment fund under Chapter 311, Tax Code.
382	382	SECTION 17. Section 29.014(b), Education Code, is amended
383	383	to read as follows:
384	384	(b) A school district to which this section applies may
385	385	operate an extended year program for a period not to exceed 45 days.
386	386	[The district's average daily attendance shall be computed for the
387	387	regular school year plus the extended year.]
388	388	SECTION 18. Section 29.081(f), Education Code, is amended
389	389	to read as follows:
390	390	(f) The commissioner shall include a student who
391	391	successfully completes a course offered through a program under
392	392	Subsection (e) in the computation of the district's or school's
393	393	average enrollment [daily attendance] for funding purposes. [For a
394	394	student who successfully completes a remote course offered through
395	395	the program, the commissioner shall include the student in the
396	396	computation of the district's or school's average daily attendance
397	397	with an attendance rate equal to:
398	398	[(1) the district's or school's average attendance
399	399	rate for students successfully completing a course offered in
400	400	person under the program; or
401	401	[(2) if the district or school does not offer courses
402	402	in person under the program, the statewide average attendance rate
403	403	for students successfully completing a course offered in person
404	404	under a program under Subsection (e).]
405	405	SECTION 19. Section 29.0822(d), Education Code, is amended
406	406	to read as follows:
407	407	(d) The commissioner may adopt rules for the administration
408	408	of this section, including rules establishing application
409	409	requirements. [Subject to Subsection (d-1), the commissioner shall
410	410	calculate average daily attendance for students served under this
411	411	section. The commissioner shall allow accumulations of hours of
412	412	instruction for students whose schedule would not otherwise allow
413	413	full state funding. Funding under this subsection shall be
414	414	determined based on the number of instructional days in the school
415	415	district calendar and a seven-hour school day, but attendance may
416	416	be cumulated over a school year, including any summer or vacation
417	417	session. The attendance of students who accumulate less than the
418	418	number of attendance hours required under this subsection shall be
419	419	proportionately reduced for funding purposes. The commissioner
420	420	may:
421	421	[(1) set maximum funding amounts for an individual
422	422	course under this section; and
423	423	[(2) limit funding for the attendance of a student
424	424	described by Subsection (a)(3) in a course under this section to
425	425	funding only for the attendance necessary for the student to earn
426	426	class credit that, as a result of attendance requirements under
427	427	Section 25.092, the student would not otherwise be able to receive
428	428	without retaking the class.]
429	429	SECTION 20. Section 29.184(b), Education Code, is amended
430	430	to read as follows:
431	431	(b) A student who attends career and technology classes at
432	432	another school under a contract authorized by Subsection (a) is
433	433	included in the average enrollment [daily attendance] of the
434	434	district in which the student is regularly enrolled.
435	435	SECTION 21. Sections 29.203(a) and (c), Education Code, are
436	436	amended to read as follows:
437	437	(a) A student who under this subchapter uses a public
438	438	education grant to attend a public school in a school district other
439	439	than the district in which the student resides is included in the
440	440	average enrollment [daily attendance] of the district in which the
441	441	student attends school.
442	442	(c) A school district is entitled to additional facilities
443	443	assistance under Section 48.301 if the district agrees to:
444	444	(1) accept a number of students using public education
445	445	grants that is at least one percent of the district's average
446	446	enrollment [daily attendance] for the preceding school year; and
447	447	(2) provide services to each student until the student
448	448	either voluntarily decides to attend a school in a different
449	449	district or graduates from high school.
450	450	SECTION 22. Section 29.403(b), Education Code, is amended
451	451	to read as follows:
452	452	(b) A student who is enrolled in a program under this
453	453	subchapter is included in determining the average enrollment [daily
454	454	attendance] under Section 48.005 of the partnering school district.
455	455	SECTION 23. Section 29.457(a), Education Code, is amended
456	456	to read as follows:
457	457	(a) In addition to other funding to which a school district
458	458	is entitled under this code, each district in which alleged
459	459	offender residents attend school is entitled to an annual allotment
460	460	of $5,100 for each resident in average enrollment [daily
461	461	attendance] or a different amount for any year provided by
462	462	appropriation.
463	463	SECTION 24. Section 29.912(c), Education Code, is amended
464	464	to read as follows:
465	465	(c) The program must enable an eligible school district that
466	466	has fewer than 1,600 students in average enrollment [daily
467	467	attendance] to partner with at least one other school district
468	468	located within a distance of 100 miles to offer a broader array of
469	469	robust college and career pathways. Each partnership must:
470	470	(1) offer college and career pathways that align with
471	471	regional labor market projections for high-wage, high-demand
472	472	careers; and
473	473	(2) be managed by a coordinating entity that:
474	474	(A) has or will have at the time students are
475	475	served under the partnership the capacity to effectively coordinate
476	476	the partnership;
477	477	(B) has entered into a performance agreement
478	478	approved by the board of trustees of each partnering school
479	479	district that confers on the coordinating entity the same authority
480	480	with respect to pathways offered under the partnership provided to
481	481	an entity that contracts to operate a district campus under Section
482	482	11.174;
483	483	(C) is an eligible entity as defined by Section
484	484	12.101(a); and
485	485	(D) has on the entity's governing board as either
486	486	voting or ex officio members, or has on an advisory body,
487	487	representatives of each partnering school district and members of
488	488	regional higher education and workforce organizations.
489	489	SECTION 25. Section 30.003(b), Education Code, is amended
490	490	to read as follows:
491	491	(b) If the student is admitted to the school for a full-time
492	492	program for the equivalent of two long semesters, the district's
493	493	share of the cost is an amount equal to the dollar amount of
494	494	maintenance and debt service taxes imposed by the district for that
495	495	year divided by the district's average enrollment [daily
496	496	attendance] for the preceding year.
497	497	SECTION 26. Section 30.102(a), Education Code, is amended
498	498	to read as follows:
499	499	(a) The Texas Juvenile Justice Department is entitled to
500	500	receive the state available school fund apportionment based on the
501	501	average enrollment [daily attendance] in the department's
502	502	educational programs of students who are at least three years of age
503	503	and not older than 21 years of age.
504	504	SECTION 27. Section 30A.151(f), Education Code, is amended
505	505	to read as follows:
506	506	(f) For a full-time electronic course program offered
507	507	through the state virtual school network for a grade level at or
508	508	above grade level three but not above grade level eight, a school
509	509	district or open-enrollment charter school is entitled to receive
510	510	federal, state, and local funding for a student enrolled in the
511	511	program in an amount equal to the funding the district or school
512	512	would otherwise receive for a student enrolled in the district or
513	513	school. [The district or school may calculate the average daily
514	514	attendance of a student enrolled in the program based on:
515	515	[(1) hours of contact with the student;
516	516	[(2) the student's successful completion of a course;
517	517	or
518	518	[(3) a method approved by the commissioner.]
519	519	SECTION 28. Section 33.157, Education Code, is amended to
520	520	read as follows:
521	521	Sec. 33.157. PARTICIPATION IN PROGRAM. An elementary or
522	522	secondary school receiving funding under Section 33.156 shall
523	523	participate in a local Communities In Schools program if the number
524	524	of students enrolled in the school who are at risk of dropping out
525	525	of school is equal to at least 10 percent of the number of students
526	526	in average enrollment [daily attendance] at the school, as
527	527	determined by the agency.
528	528	SECTION 29. Section 37.0061, Education Code, is amended to
529	529	read as follows:
530	530	Sec. 37.0061. FUNDING FOR ALTERNATIVE EDUCATION SERVICES IN
531	531	JUVENILE RESIDENTIAL FACILITIES. A school district that provides
532	532	education services to pre-adjudicated and post-adjudicated
533	533	students who are confined by court order in a juvenile residential
534	534	facility operated by a juvenile board is entitled to count such
535	535	students in the district's average enrollment [daily attendance]
536	536	for purposes of receipt of state funds under the Foundation School
537	537	Program. If the district has a local revenue level greater than the
538	538	guaranteed local revenue level but less than the level established
539	539	under Section 48.257, the district in which the student is enrolled
540	540	on the date a court orders the student to be confined to a juvenile
541	541	residential facility shall transfer to the district providing
542	542	education services an amount equal to the difference between the
543	543	average Foundation School Program costs per student of the district
544	544	providing education services and the sum of the state aid and the
545	545	money from the available school fund received by the district that
546	546	is attributable to the student for the portion of the school year
547	547	for which the district provides education services to the student.
548	548	SECTION 30. Section 37.008(f), Education Code, is amended
549	549	to read as follows:
550	550	(f) A student removed to a disciplinary alternative
551	551	education program is counted in computing the average enrollment
552	552	[daily attendance] of students in the district [for the student's
553	553	time in actual attendance in the program].
554	554	SECTION 31. Section 37.011(a-4), Education Code, is amended
555	555	to read as follows:
556	556	(a-4) A school district located in a county considered to be
557	557	a county with a population of 125,000 or less under Subsection (a-3)
558	558	shall provide educational services to a student who is expelled
559	559	from school under this chapter. The district is entitled to count
560	560	the student in the district's average enrollment [daily attendance]
561	561	for purposes of receipt of state funds under the Foundation School
562	562	Program. An educational placement under this section may include:
563	563	(1) the district's disciplinary alternative education
564	564	program; or
565	565	(2) a contracted placement with:
566	566	(A) another school district;
567	567	(B) an open-enrollment charter school;
568	568	(C) an institution of higher education;
569	569	(D) an adult literacy council; or
570	570	(E) a community organization that can provide an
571	571	educational program that allows the student to complete the credits
572	572	required for high school graduation.
573	573	SECTION 32. Sections 39.027(c) and (f), Education Code, are
574	574	amended to read as follows:
575	575	(c) The commissioner shall develop and adopt a process for
576	576	reviewing the exemption process of a school district or shared
577	577	services arrangement that gives an exemption under Subsection
578	578	(a)(1) as follows:
579	579	(1) to more than five percent of the students in the
580	580	special education program, in the case of a district or shared
581	581	services arrangement with an average enrollment [daily attendance]
582	582	of at least 1,600;
583	583	(2) to more than 10 percent of the students in the
584	584	special education program, in the case of a district or shared
585	585	services arrangement with an average enrollment [daily attendance]
586	586	of at least 190 and not more than 1,599; or
587	587	(3) to the greater of more than 10 percent of the
588	588	students in the special education program or to at least five
589	589	students in the special education program, in the case of a district
590	590	or shared services arrangement with an average enrollment [daily
591	591	attendance] of not more than 189.
592	592	(f) In this section, "average enrollment [daily
593	593	attendance]" is computed in the manner provided by Section 48.005.
594	594	SECTION 33. Section 39.053(g-1), Education Code, is amended
595	595	to read as follows:
596	596	(g-1) In computing dropout and completion rates such as high
597	597	school graduation rates under Subsection (c)(1)(B)(ix), the
598	598	commissioner shall exclude:
599	599	(1) students who are ordered by a court to attend a
600	600	high school equivalency certificate program but who have not yet
601	601	earned a high school equivalency certificate;
602	602	(2) students who were previously reported to the state
603	603	as dropouts, including a student who is reported as a dropout,
604	604	reenrolls, and drops out again, regardless of the number of times of
605	605	reenrollment and dropping out;
606	606	(3) students in attendance who are not in membership
607	607	for purposes of average enrollment [daily attendance];
608	608	(4) students whose initial enrollment in a school in
609	609	the United States in grades 7 through 12 was as an unschooled asylee
610	610	or refugee as defined by Section 39.027(a-1);
611	611	(5) students who are detained at a county
612	612	pre-adjudication or post-adjudication juvenile detention facility
613	613	and:
614	614	(A) in the district exclusively as a function of
615	615	having been detained at the facility but are otherwise not students
616	616	of the district in which the facility is located; or
617	617	(B) provided services by an open-enrollment
618	618	charter school exclusively as the result of having been detained at
619	619	the facility;
620	620	(6) students who are incarcerated in state jails and
621	621	federal penitentiaries as adults and as persons certified to stand
622	622	trial as adults; and
623	623	(7) students who have suffered a condition, injury, or
624	624	illness that requires substantial medical care and leaves the
625	625	student:
626	626	(A) unable to attend school; and
627	627	(B) assigned to a medical or residential
628	628	treatment facility.
629	629	SECTION 34. Section 39.262(a), Education Code, is amended
630	630	to read as follows:
631	631	(a) The governor may present a financial award to the
632	632	schools or districts that the commissioner determines have
633	633	demonstrated the highest levels of sustained success or the
634	634	greatest improvement in achieving the education goals. For each
635	635	student in average enrollment [daily attendance], each of those
636	636	schools or districts is entitled to an amount set for the award for
637	637	which the school or district is selected by the commissioner,
638	638	subject to any limitation set by the commissioner on the total
639	639	amount that may be awarded to a school or district.
640	640	SECTION 35. Section 43.001(c), Education Code, is amended
641	641	to read as follows:
642	642	(c) The term "scholastic population" in Subsection (b) or
643	643	any other law governing the apportionment, distribution, and
644	644	transfer of the available school fund means all students of school
645	645	age [enrolled] in average enrollment [daily attendance] the
646	646	preceding school year in the public elementary and high school
647	647	grades of school districts within or under the jurisdiction of a
648	648	county of this state.
649	649	SECTION 36. Section 44.004(c), Education Code, is amended
650	650	to read as follows:
651	651	(c) The notice of public meeting to discuss and adopt the
652	652	budget and the proposed tax rate may not be smaller than one-quarter
653	653	page of a standard-size or a tabloid-size newspaper, and the
654	654	headline on the notice must be in 18-point or larger type. Subject
655	655	to Subsection (d), the notice must:
656	656	(1) contain a statement in the following form:
657	657	"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
658	658	"The (name of school district) will hold a public meeting at
659	659	(time, date, year) in (name of room, building, physical location,
660	660	city, state). The purpose of this meeting is to discuss the school
661	661	district's budget that will determine the tax rate that will be
662	662	adopted. Public participation in the discussion is invited." The
663	663	statement of the purpose of the meeting must be in bold type. In
664	664	reduced type, the notice must state: "The tax rate that is
665	665	ultimately adopted at this meeting or at a separate meeting at a
666	666	later date may not exceed the proposed rate shown below unless the
667	667	district publishes a revised notice containing the same information
668	668	and comparisons set out below and holds another public meeting to
669	669	discuss the revised notice." In addition, in reduced type, the
670	670	notice must state: "Visit Texas.gov/PropertyTaxes to find a link to
671	671	your local property tax database on which you can easily access
672	672	information regarding your property taxes, including information
673	673	about proposed tax rates and scheduled public hearings of each
674	674	entity that taxes your property.";
675	675	(2) contain a section entitled "Comparison of Proposed
676	676	Budget with Last Year's Budget," which must show the difference,
677	677	expressed as a percent increase or decrease, as applicable, in the
678	678	amounts budgeted for the preceding fiscal year and the amount
679	679	budgeted for the fiscal year that begins in the current tax year for
680	680	each of the following:
681	681	(A) maintenance and operations;
682	682	(B) debt service; and
683	683	(C) total expenditures;
684	684	(3) contain a section entitled "Total Appraised Value
685	685	and Total Taxable Value," which must show the total appraised value
686	686	and the total taxable value of all property and the total appraised
687	687	value and the total taxable value of new property taxable by the
688	688	district in the preceding tax year and the current tax year as
689	689	calculated under Section 26.04, Tax Code;
690	690	(4) contain a statement of the total amount of the
691	691	outstanding and unpaid bonded indebtedness of the school district;
692	692	(5) contain a section entitled "Comparison of Proposed
693	693	Rates with Last Year's Rates," which must:
694	694	(A) show in rows the tax rates described by
695	695	Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
696	696	property, for columns entitled "Maintenance & Operations,"
697	697	"Interest & Sinking Fund," and "Total," which is the sum of
698	698	"Maintenance & Operations" and "Interest & Sinking Fund":
699	699	(i) the school district's "Last Year's
700	700	Rate";
701	701	(ii) the "Rate to Maintain Same Level of
702	702	Maintenance & Operations Revenue & Pay Debt Service," which:
703	703	(a) in the case of "Maintenance &
704	704	Operations," is the tax rate that, when applied to the current
705	705	taxable value for the district, as certified by the chief appraiser
706	706	under Section 26.01, Tax Code, and as adjusted to reflect changes
707	707	made by the chief appraiser as of the time the notice is prepared,
708	708	would impose taxes in an amount that, when added to state funds to
709	709	be distributed to the district under Chapter 48, would provide the
710	710	same amount of maintenance and operations taxes and state funds
711	711	distributed under Chapter 48 per student in average enrollment
712	712	[daily attendance] for the applicable school year that was
713	713	available to the district in the preceding school year; and
714	714	(b) in the case of "Interest & Sinking
715	715	Fund," is the tax rate that, when applied to the current taxable
716	716	value for the district, as certified by the chief appraiser under
717	717	Section 26.01, Tax Code, and as adjusted to reflect changes made by
718	718	the chief appraiser as of the time the notice is prepared, and when
719	719	multiplied by the district's anticipated collection rate, would
720	720	impose taxes in an amount that, when added to state funds to be
721	721	distributed to the district under Chapter 46 and any excess taxes
722	722	collected to service the district's debt during the preceding tax
723	723	year but not used for that purpose during that year, would provide
724	724	the amount required to service the district's debt; and
725	725	(iii) the "Proposed Rate";
726	726	(B) contain fourth and fifth columns aligned with
727	727	the columns required by Paragraph (A) that show, for each row
728	728	required by Paragraph (A):
729	729	(i) the "Local Revenue per Student," which
730	730	is computed by multiplying the district's total taxable value of
731	731	property, as certified by the chief appraiser for the applicable
732	732	school year under Section 26.01, Tax Code, and as adjusted to
733	733	reflect changes made by the chief appraiser as of the time the
734	734	notice is prepared, by the total tax rate, and dividing the product
735	735	by the number of students in average enrollment [daily attendance]
736	736	in the district for the applicable school year; and
737	737	(ii) the "State Revenue per Student," which
738	738	is computed by determining the amount of state aid received or to be
739	739	received by the district under Chapters 43, 46, and 48 and dividing
740	740	that amount by the number of students in average enrollment [daily
741	741	attendance] in the district for the applicable school year; and
742	742	(C) contain an asterisk after each calculation
743	743	for "Interest & Sinking Fund" and a footnote to the section that, in
744	744	reduced type, states "The Interest & Sinking Fund tax revenue is
745	745	used to pay for bonded indebtedness on construction, equipment, or
746	746	both. The bonds, and the tax rate necessary to pay those bonds, were
747	747	approved by the voters of this district.";
748	748	(6) contain a section entitled "Comparison of Proposed
749	749	Levy with Last Year's Levy on Average Residence," which must:
750	750	(A) show in rows the information described by
751	751	Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
752	752	entitled "Last Year" and "This Year":
753	753	(i) "Average Market Value of Residences,"
754	754	determined using the same group of residences for each year;
755	755	(ii) "Average Taxable Value of Residences,"
756	756	determined after taking into account the limitation on the
757	757	appraised value of residences under Section 23.23, Tax Code, and
758	758	after subtracting all homestead exemptions applicable in each year,
759	759	other than exemptions available only to disabled persons or persons
760	760	65 years of age or older or their surviving spouses, and using the
761	761	same group of residences for each year;
762	762	(iii) "Last Year's Rate Versus Proposed
763	763	Rate per $100 Value"; and
764	764	(iv) "Taxes Due on Average Residence,"
765	765	determined using the same group of residences for each year; and
766	766	(B) contain the following information: "Increase
767	767	(Decrease) in Taxes" expressed in dollars and cents, which is
768	768	computed by subtracting the "Taxes Due on Average Residence" for
769	769	the preceding tax year from the "Taxes Due on Average Residence" for
770	770	the current tax year;
771	771	(7) contain the following statement in bold print:
772	772	"Under state law, the dollar amount of school taxes imposed on the
773	773	residence of a person 65 years of age or older or of the surviving
774	774	spouse of such a person, if the surviving spouse was 55 years of age
775	775	or older when the person died, may not be increased above the amount
776	776	paid in the first year after the person turned 65, regardless of
777	777	changes in tax rate or property value.";
778	778	(8) contain the following statement in bold print:
779	779	"Notice of Voter-Approval Rate: The highest tax rate the district
780	780	can adopt before requiring voter approval at an election is (the
781	781	school district voter-approval rate determined under Section
782	782	26.08, Tax Code). This election will be automatically held if the
783	783	district adopts a rate in excess of the voter-approval rate of (the
784	784	school district voter-approval rate)."; and
785	785	(9) contain a section entitled "Fund Balances," which
786	786	must include the estimated amount of interest and sinking fund
787	787	balances and the estimated amount of maintenance and operation or
788	788	general fund balances remaining at the end of the current fiscal
789	789	year that are not encumbered with or by corresponding debt
790	790	obligation, less estimated funds necessary for the operation of the
791	791	district before the receipt of the first payment under Chapter 48 in
792	792	the succeeding school year.
793	793	SECTION 37. Sections 45.0011(a), (d), and (e), Education
794	794	Code, are amended to read as follows:
795	795	(a) This section applies only to an independent school
796	796	district that, at the time of the issuance of obligations and
797	797	execution of credit agreements under this section, has:
798	798	(1) at least 2,000 students in average enrollment
799	799	[daily attendance]; or
800	800	(2) a combined aggregate principal amount of at least
801	801	$50 million of outstanding bonds and voted but unissued bonds.
802	802	(d) A district may not issue bonds to which this section
803	803	applies in an amount greater than the greater of:
804	804	(1) 25 percent of the sum of:
805	805	(A) the aggregate principal amount of all
806	806	district debt payable from ad valorem taxes that is outstanding at
807	807	the time the bonds are issued; and
808	808	(B) the aggregate principal amount of all bonds
809	809	payable from ad valorem taxes that have been authorized but not
810	810	issued;
811	811	(2) $25 million, in a district that has at least 3,500
812	812	but not more than 15,000 students in average enrollment [daily
813	813	attendance]; or
814	814	(3) $50 million, in a district that has more than
815	815	15,000 students in average enrollment [daily attendance].
816	816	(e) In this section, average enrollment [daily attendance]
817	817	is determined in the manner provided by Section 48.005.
818	818	SECTION 38. Section 45.006(a), Education Code, is amended
819	819	to read as follows:
820	820	(a) This section applies only to a school district that:
821	821	(1) has an average enrollment [daily attendance] of
822	822	less than 10,000; and
823	823	(2) is located in whole or part in a municipality with
824	824	a population of less than 25,000 that is located in a county with a
825	825	population of 200,000 or more bordering another county with a
826	826	population of 2.8 million or more.
827	827	SECTION 39. Section 45.105(d), Education Code, is amended
828	828	to read as follows:
829	829	(d) An independent school district that has in its limits a
830	830	municipality with a population of 150,000 or more or that contains
831	831	at least 170 square miles, has $850 million or more assessed value
832	832	of taxable property on the most recent approved tax roll and has a
833	833	growth in average enrollment [daily attendance] of 11 percent or
834	834	more for each of the preceding five years as determined by the
835	835	agency may, in buying school sites or additions to school sites and
836	836	in building school buildings, issue and deliver negotiable or
837	837	nonnegotiable notes representing all or part of the cost to the
838	838	school district of the land or building. The district may secure
839	839	the notes by a vendor's lien or deed of trust lien against the land
840	840	or building. By resolution or order of the governing body made at
841	841	or before the delivery of the notes, the district may set aside and
842	842	appropriate as a trust fund, and the sole and only fund, for the
843	843	payment of the principal of and interest on the notes that part of
844	844	the local school funds, levied and collected by the school district
845	845	in that year or subsequent years, as the governing body determines.
846	846	The aggregate amount of local school funds set aside in or for any
847	847	subsequent year for the retirement of the notes may not exceed, in
848	848	any one subsequent year, 10 percent of the local school funds
849	849	collected during that year. The district may issue the notes only
850	850	if approved by majority vote of the qualified voters voting in an
851	851	election conducted in the manner provided by Section 45.003 for
852	852	approval of bonds.
853	853	SECTION 40. Section 46.003(a), Education Code, is amended
854	854	to read as follows:
855	855	(a) For each year, except as provided by Sections 46.005 and
856	856	46.006, a school district is guaranteed a specified amount per
857	857	student in state and local funds for each cent of tax effort, up to
858	858	the maximum rate under Subsection (b), to pay the principal of and
859	859	interest on eligible bonds issued to construct, acquire, renovate,
860	860	or improve an instructional facility. The amount of state support
861	861	is determined by the formula:
862	862	FYA = (FYL X AE [ADA] X BTR X 100) - (BTR X (DPV/100))
863	863	where:
864	864	"FYA" is the guaranteed facilities yield amount of state
865	865	funds allocated to the district for the year;
866	866	"FYL" is the dollar amount guaranteed level of state and
867	867	local funds per student per cent of tax effort, which is $35 or a
868	868	greater amount for any year provided by appropriation;
869	869	"AE" ["ADA"] is the greater of the number of students in
870	870	average enrollment [daily attendance], as determined under Section
871	871	48.005, in the district or 400;
872	872	"BTR" is the district's bond tax rate for the current year,
873	873	which is determined by dividing the amount budgeted by the district
874	874	for payment of eligible bonds by the quotient of the district's
875	875	taxable value of property as determined under Subchapter M, Chapter
876	876	403, Government Code, or, if applicable, Section 48.258, divided by
877	877	100; and
878	878	"DPV" is the district's taxable value of property as
879	879	determined under Subchapter M, Chapter 403, Government Code, or, if
880	880	applicable, Section 48.258.
881	881	SECTION 41. Section 46.005, Education Code, is amended to
882	882	read as follows:
883	883	Sec. 46.005. LIMITATION ON GUARANTEED AMOUNT. The
884	884	guaranteed amount of state and local funds for a new project that a
885	885	district may be awarded in any state fiscal biennium under Section
886	886	46.003 for a school district may not exceed the lesser of:
887	887	(1) the amount the actual debt service payments the
888	888	district makes in the biennium in which the bonds are issued; or
889	889	(2) the greater of:
890	890	(A) $100,000; or
891	891	(B) the product of the number of students in
892	892	average enrollment [daily attendance] in the district multiplied by
893	893	$250.
894	894	SECTION 42. Section 46.006(g), Education Code, is amended
895	895	to read as follows:
896	896	(g) In this section, "wealth per student" means a school
897	897	district's taxable value of property as determined under Subchapter
898	898	M, Chapter 403, Government Code, or, if applicable, Section 48.258,
899	899	divided by the district's average enrollment [daily attendance] as
900	900	determined under Section 48.005.
901	901	SECTION 43. Section 46.032(a), Education Code, is amended
902	902	to read as follows:
903	903	(a) Each school district is guaranteed a specified amount
904	904	per student in state and local funds for each cent of tax effort to
905	905	pay the principal of and interest on eligible bonds. The amount of
906	906	state support, subject only to the maximum amount under Section
907	907	46.034, is determined by the formula:
908	908	EDA = (EDGL X AE [ADA] X EDTR X 100) - (EDTR X (DPV/100))
909	909	where:
910	910	"EDA" is the amount of state funds to be allocated to the
911	911	district for assistance with existing debt;
912	912	"EDGL" is the dollar amount guaranteed level of state and
913	913	local funds per student per cent of tax effort, which is the lesser
914	914	of:
915	915	(1) $40 or a greater amount for any year provided by
916	916	appropriation; or
917	917	(2) the amount that would result in a total additional
918	918	amount of state funds under this subchapter for the current year
919	919	equal to $60 million in excess of the state funds to which school
920	920	districts would have been entitled under this section if the
921	921	guaranteed level amount were $35;
922	922	"AE" ["ADA"] is the number of students in average enrollment
923	923	[daily attendance], as determined under Section 48.005, in the
924	924	district;
925	925	"EDTR" is the existing debt tax rate of the district, which is
926	926	determined by dividing the amount budgeted by the district for
927	927	payment of eligible bonds by the quotient of the district's taxable
928	928	value of property as determined under Subchapter M, Chapter 403,
929	929	Government Code, or, if applicable, under Section 48.258, divided
930	930	by 100; and
931	931	"DPV" is the district's taxable value of property as
932	932	determined under Subchapter M, Chapter 403, Government Code, or, if
933	933	applicable, under Section 48.258.
934	934	SECTION 44. Sections 48.0051(a) and (b), Education Code,
935	935	are amended to read as follows:
936	936	(a) The [Subject to Subsection (a-1), the] commissioner
937	937	shall adjust the average enrollment [daily attendance] of a school
938	938	district or open-enrollment charter school under Section 48.005 in
939	939	the manner provided by Subsection (b) if the district or school:
940	940	(1) provides the minimum number of minutes of
941	941	operational and instructional time required under Section 25.081
942	942	and commissioner rules adopted under that section over at least 180
943	943	days of instruction; and
944	944	(2) offers an additional 30 days of half-day
945	945	instruction for students enrolled in prekindergarten through fifth
946	946	grade.
947	947	(b) For a school district or open-enrollment charter school
948	948	described by Subsection (a), the commissioner shall increase the
949	949	average enrollment [daily attendance] of the district or school
950	950	under Section 48.005 by the amount equal to one-sixth [that results
951	951	from the quotient] of the enrollment [sum of attendance] by
952	952	students described by Subsection (a)(2) in [for each of] the 30
953	953	additional instructional days of half-day instruction [that are
954	954	provided divided by 180].
955	955	SECTION 45. Section 48.006, Education Code, is amended to
956	956	read as follows:
957	957	Sec. 48.006. AVERAGE ENROLLMENT [DAILY ATTENDANCE] FOR
958	958	DISTRICTS IN DISASTER AREA. (a) The commissioner may adjust the
959	959	average enrollment [daily attendance] of a school district all or
960	960	part of which is located in an area declared a disaster area by the
961	961	governor under Chapter 418, Government Code, if the district
962	962	experiences a decline in average enrollment [daily attendance] that
963	963	is reasonably attributable to the impact of the disaster.
964	964	(b) The adjustment must be sufficient to ensure that the
965	965	district receives funding comparable to the funding that the
966	966	district would have received if the decline in average enrollment
967	967	[daily attendance] reasonably attributable to the impact of the
968	968	disaster had not occurred.
969	969	(c) The commissioner may make the adjustment under this
970	970	section for the two-year period following the date of the
971	971	governor's initial proclamation or executive order declaring the
972	972	state of disaster.
973	973	(d) Section 48.005(b)(2) does not apply to a district that
974	974	receives an adjustment under this section.
975	975	(e) A district that receives an adjustment under this
976	976	section may not receive any additional adjustment under Section
977	977	48.005(d) for the decline in average enrollment [daily attendance]
978	978	on which the adjustment under this section is based.
979	979	(f) For purposes of this title, a district's adjusted
980	980	average enrollment [daily attendance] under this section is
981	981	considered to be the district's average enrollment [daily
982	982	attendance] as determined under Section 48.005.
983	983	SECTION 46. Sections 48.010(a) and (b), Education Code, are
984	984	amended to read as follows:
985	985	(a) Not later than July 1 of each year, the commissioner
986	986	shall determine for each school district whether the estimated
987	987	amount of state and local funding per student in weighted average
988	988	enrollment [daily attendance] to be provided to the district under
989	989	the Foundation School Program for maintenance and operations for
990	990	the following school year is less than the amount provided to the
991	991	district for the 2010-2011 school year. If the amount estimated to
992	992	be provided is less, the commissioner shall certify the percentage
993	993	decrease in funding to be provided to the district.
994	994	(b) In making the determinations regarding funding levels
995	995	required by Subsection (a), the commissioner shall:
996	996	(1) make adjustments as necessary to reflect changes
997	997	in a school district's maintenance and operations tax rate;
998	998	(2) for a district required to reduce its local
999	999	revenue level under Section 48.257, base the determinations on the
1000	1000	district's net funding levels after deducting any amounts required
1001	1001	to be expended by the district to comply with Chapter 49; and
1002	1002	(3) determine a district's weighted average enrollment
1003	1003	[daily attendance] in accordance with this chapter as it existed on
1004	1004	January 1, 2011.
1005	1005	SECTION 47. Sections 48.051(a) and (c), Education Code, are
1006	1006	amended to read as follows:
1007	1007	(a) For each student in average enrollment [daily
1008	1008	attendance], not including the time students spend each day in
1009	1009	special education programs in an instructional arrangement other
1010	1010	than mainstream or career and technology education programs, for
1011	1011	which an additional allotment is made under Subchapter C, a
1012	1012	district is entitled to an allotment equal to the lesser of $6,160
1013	1013	or the amount that results from the following formula:
1014	1014	A = $6,160 X TR/MCR
1015	1015	where:
1016	1016	"A" is the allotment to which a district is entitled;
1017	1017	"TR" is the district's tier one maintenance and operations
1018	1018	tax rate, as provided by Section 45.0032; and
1019	1019	"MCR" is the district's maximum compressed tax rate, as
1020	1020	determined under Section 48.2551.
1021	1021	(c) During any school year for which the maximum amount of
1022	1022	the basic allotment provided under Subsection (a) or (b) is greater
1023	1023	than the maximum amount provided for the preceding school year, a
1024	1024	school district must use at least 30 percent of the amount, if the
1025	1025	amount is greater than zero, that equals the product of the average
1026	1026	enrollment [daily attendance] of the district multiplied by the
1027	1027	amount of the difference between the district's funding under this
1028	1028	chapter per student in average enrollment [daily attendance] for
1029	1029	the current school year and the preceding school year to provide
1030	1030	compensation increases to full-time district employees other than
1031	1031	administrators as follows:
1032	1032	(1) 75 percent must be used to increase the
1033	1033	compensation paid to classroom teachers, full-time librarians,
1034	1034	full-time school counselors certified under Subchapter B, Chapter
1035	1035	21, and full-time school nurses, prioritizing differentiated
1036	1036	compensation for classroom teachers with more than five years of
1037	1037	experience; and
1038	1038	(2) 25 percent may be used as determined by the
1039	1039	district to increase compensation paid to full-time district
1040	1040	employees.
1041	1041	SECTION 48. Sections 48.052(a) and (c), Education Code, are
1042	1042	amended to read as follows:
1043	1043	(a) Notwithstanding Section 48.051, a school district that
1044	1044	has fewer than 130 students in average enrollment [daily
1045	1045	attendance] shall be provided a basic allotment on the basis of 130
1046	1046	students in average enrollment [daily attendance] if it offers a
1047	1047	kindergarten through grade 12 program and has preceding or current
1048	1048	year's average enrollment [daily attendance] of at least 90
1049	1049	students or is 30 miles or more by bus route from the nearest high
1050	1050	school district. A district offering a kindergarten through grade 8
1051	1051	program whose preceding or current year's average enrollment [daily
1052	1052	attendance] was at least 50 students or which is 30 miles or more by
1053	1053	bus route from the nearest high school district shall be provided a
1054	1054	basic allotment on the basis of 75 students in average enrollment
1055	1055	[daily attendance]. An average enrollment [daily attendance] of 60
1056	1056	students shall be the basis of providing the basic allotment if a
1057	1057	district offers a kindergarten through grade 6 program and has
1058	1058	preceding or current year's average enrollment [daily attendance]
1059	1059	of at least 40 students or is 30 miles or more by bus route from the
1060	1060	nearest high school district.
1061	1061	(c) Notwithstanding Subsection (a) or Section 48.051, a
1062	1062	school district to which this subsection applies, as provided by
1063	1063	Subsection (b), that has fewer than 130 students in average
1064	1064	enrollment [daily attendance] shall be provided a basic allotment
1065	1065	on the basis of 130 students in average enrollment [daily
1066	1066	attendance] if it offers a kindergarten through grade four program
1067	1067	and has preceding or current year's average enrollment [daily
1068	1068	attendance] of at least 75 students or is 30 miles or more by bus
1069	1069	route from the nearest high school district.
1070	1070	SECTION 49. Section 48.101, Education Code, is amended to
1071	1071	read as follows:
1072	1072	Sec. 48.101. SMALL AND MID-SIZED DISTRICT ALLOTMENT. (a)
1073	1073	Small and mid-sized districts are entitled to an annual allotment
1074	1074	in accordance with this section. In this section:
1075	1075	(1) "AA" is the district's annual allotment per
1076	1076	student in average enrollment [daily attendance];
1077	1077	(2) "AE" ["ADA"] is the number of students in average
1078	1078	enrollment [daily attendance] for which the district is entitled to
1079	1079	an allotment under Section 48.051; and
1080	1080	(3) "BA" is the basic allotment determined under
1081	1081	Section 48.051.
1082	1082	(b) A school district that has fewer than 1,600 students in
1083	1083	average enrollment [daily attendance] is entitled to an annual
1084	1084	allotment for each student in average enrollment [daily attendance]
1085	1085	based on the following formula:
1086	1086	AA = ((1,600 - AE [ADA]) X .0004) X BA
1087	1087	(c) A school district that offers a kindergarten through
1088	1088	grade 12 program and has less than 5,000 students in average
1089	1089	enrollment [daily attendance] is entitled to an annual allotment
1090	1090	for each student in average enrollment [daily attendance] based on
1091	1091	the formula, of the following formulas, that results in the
1092	1092	greatest annual allotment:
1093	1093	(1) the formula in Subsection (b), if the district is
1094	1094	eligible for that formula; or
1095	1095	(2) AA = ((5,000 - AE [ADA]) X .000025) X BA.
1096	1096	(d) Instead of the allotment under Subsection (b) or (c)(1),
1097	1097	a school district that has fewer than 300 students in average
1098	1098	enrollment [daily attendance] and is the only school district
1099	1099	located in and operating in a county is entitled to an annual
1100	1100	allotment for each student in average enrollment [daily attendance]
1101	1101	based on the following formula:
1102	1102	AA = ((1,600 - AE [ADA]) X .00047) X BA
1103	1103	SECTION 50. Sections 48.102(a) and (j), Education Code, are
1104	1104	amended to read as follows:
1105	1105	(a) For each student in average enrollment [daily
1106	1106	attendance] in a special education program under Subchapter A,
1107	1107	Chapter 29, in a mainstream instructional arrangement, a school
1108	1108	district is entitled to an annual allotment equal to the basic
1109	1109	allotment, or, if applicable, the sum of the basic allotment and the
1110	1110	allotment under Section 48.101 to which the district is entitled,
1111	1111	multiplied by 1.15. For each full-time equivalent student in
1112	1112	average enrollment [daily attendance] in a special education
1113	1113	program under Subchapter A, Chapter 29, in an instructional
1114	1114	arrangement other than a mainstream instructional arrangement, a
1115	1115	district is entitled to an annual allotment equal to the basic
1116	1116	allotment, or, if applicable, the sum of the basic allotment and the
1117	1117	allotment under Section 48.101 to which the district is entitled,
1118	1118	multiplied by a weight determined according to instructional
1119	1119	arrangement as follows:
1120	1120	Homebound5.0
1121	1121	Hospital class3.0
1122	1122	Speech therapy5.0
1123	1123	Resource room3.0
1124	1124	Self-contained, mild and moderate,
1125	1125	regular campus3.0
1126	1126	Self-contained, severe, regular campus3.0
1127	1127	Off home campus2.7
1128	1128	Nonpublic day school1.7
1129	1129	Vocational adjustment class2.3
1130	1130	(j) A school district that provides an extended year program
1131	1131	required by federal law for special education students who may
1132	1132	regress is entitled to receive funds in an amount equal to 75
1133	1133	percent, or a lesser percentage determined by the commissioner, of
1134	1134	the basic allotment, or, if applicable, the sum of the basic
1135	1135	allotment and the allotment under Section 48.101 to which the
1136	1136	district is entitled for each full-time equivalent student in
1137	1137	average enrollment [daily attendance], multiplied by the amount
1138	1138	designated for the student's instructional arrangement under this
1139	1139	section[, for each day the program is provided divided by the number
1140	1140	of days in the minimum school year]. The total amount of state
1141	1141	funding for extended year services under this section may not
1142	1142	exceed $10 million per year. A school district may use funds
1143	1143	received under this section only in providing an extended year
1144	1144	program.
1145	1145	SECTION 51. Section 48.105(a), Education Code, is amended
1146	1146	to read as follows:
1147	1147	(a) For each student in average enrollment [daily
1148	1148	attendance] in a bilingual education or special language program
1149	1149	under Subchapter B, Chapter 29, a district is entitled to an annual
1150	1150	allotment equal to the basic allotment multiplied by:
1151	1151	(1) for an emergent bilingual student, as defined by
1152	1152	Section 29.052:
1153	1153	(A) 0.1; or
1154	1154	(B) 0.15 if the student is in a bilingual
1155	1155	education program using a dual language immersion/one-way or
1156	1156	two-way program model; and
1157	1157	(2) for a student not described by Subdivision (1),
1158	1158	0.05 if the student is in a bilingual education program using a dual
1159	1159	language immersion/two-way program model.
1160	1160	SECTION 52. Sections 48.106(a) and (a-1), Education Code,
1161	1161	are amended to read as follows:
1162	1162	(a) For each full-time equivalent student in average
1163	1163	enrollment [daily attendance] in an approved career and technology
1164	1164	education program in grades 7 through 12, a district is entitled to
1165	1165	an annual allotment equal to the basic allotment, or, if
1166	1166	applicable, the sum of the basic allotment and the allotment under
1167	1167	Section 48.101 to which the district is entitled, multiplied by:
1168	1168	(1) 1.1 for a full-time equivalent student in career
1169	1169	and technology education courses not in an approved program of
1170	1170	study;
1171	1171	(2) 1.28 for a full-time equivalent student in levels
1172	1172	one and two career and technology education courses in an approved
1173	1173	program of study, as identified by the agency; and
1174	1174	(3) 1.47 for a full-time equivalent student in levels
1175	1175	three and four career and technology education courses in an
1176	1176	approved program of study, as identified by the agency.
1177	1177	(a-1) In addition to the amounts under Subsection (a), for
1178	1178	each student in average enrollment [daily attendance], a district
1179	1179	is entitled to $50 for each of the following in which the student is
1180	1180	enrolled:
1181	1181	(1) a campus designated as a P-TECH school under
1182	1182	Section 29.556; or
1183	1183	(2) a campus that is a member of the New Tech Network
1184	1184	and that focuses on project-based learning and work-based
1185	1185	education.
1186	1186	SECTION 53. Section 48.107(a), Education Code, is amended
1187	1187	to read as follows:
1188	1188	(a) Except as provided by Subsection (b), for each student
1189	1189	in average enrollment [daily attendance] who is using a public
1190	1190	education grant under Subchapter G, Chapter 29, to attend school in
1191	1191	a district other than the district in which the student resides, the
1192	1192	district in which the student attends school is entitled to an
1193	1193	annual allotment equal to the basic allotment multiplied by a
1194	1194	weight of 0.1.
1195	1195	SECTION 54. Section 48.108(a), Education Code, is amended
1196	1196	to read as follows:
1197	1197	(a) For each student in average enrollment [daily
1198	1198	attendance] in kindergarten through third grade, a school district
1199	1199	is entitled to an annual allotment equal to the basic allotment
1200	1200	multiplied by 0.1 if the student is:
1201	1201	(1) educationally disadvantaged; or
1202	1202	(2) an emergent bilingual student, as defined by
1203	1203	Section 29.052, and is in a bilingual education or special language
1204	1204	program under Subchapter B, Chapter 29.
1205	1205	SECTION 55. Section 48.109(c), Education Code, is amended
1206	1206	to read as follows:
1207	1207	(c) Not more than five percent of a district's students in
1208	1208	average enrollment [daily attendance] are eligible for funding
1209	1209	under this section.
1210	1210	SECTION 56. Section 48.115(a), Education Code, is amended
1211	1211	to read as follows:
1212	1212	(a) Except as provided by Subsection (a-1), a school
1213	1213	district is entitled to an annual allotment equal to the sum of the
1214	1214	following amounts or a greater amount provided by appropriation:
1215	1215	(1) $10 for each student in average enrollment [daily
1216	1216	attendance], plus $1 for each student in average enrollment [daily
1217	1217	attendance] per every $50 by which the district's maximum basic
1218	1218	allotment under Section 48.051 exceeds $6,160, prorated as
1219	1219	necessary; and
1220	1220	(2) $15,000 per campus.
1221	1221	SECTION 57. Section 48.118(a), Education Code, is amended
1222	1222	to read as follows:
1223	1223	(a) For each full-time equivalent student in average
1224	1224	enrollment [daily attendance] in grades 9 through 12 in a college or
1225	1225	career pathway offered through a partnership under the Rural
1226	1226	Pathway Excellence Partnership (R-PEP) program under Section
1227	1227	29.912, a school district is entitled to an allotment equal to the
1228	1228	basic allotment, or, if applicable, the sum of the basic allotment
1229	1229	and the allotment under Section 48.101 to which the district is
1230	1230	entitled, multiplied by:
1231	1231	(1) 1.15 if the student is educationally
1232	1232	disadvantaged; or
1233	1233	(2) 1.11 if the student is not educationally
1234	1234	disadvantaged.
1235	1235	SECTION 58. Sections 48.152(d) and (e), Education Code, are
1236	1236	amended to read as follows:
1237	1237	(d) For the first school year in which students attend a new
1238	1238	instructional facility, a school district is entitled to an
1239	1239	allotment of $1,000 for each student in average enrollment [daily
1240	1240	attendance] at the facility. For the second school year in which
1241	1241	students attend that instructional facility, a school district is
1242	1242	entitled to an allotment of $1,000 for each additional student in
1243	1243	average enrollment [daily attendance] at the facility.
1244	1244	(e) For purposes of this section, the number of additional
1245	1245	students in average enrollment [daily attendance] at a facility is
1246	1246	the difference between the number of students in average enrollment
1247	1247	[daily attendance] in the current year at that facility and the
1248	1248	number of students in average enrollment [daily attendance] at that
1249	1249	facility in the preceding year.
1250	1250	SECTION 59. Section 48.153, Education Code, is amended to
1251	1251	read as follows:
1252	1252	Sec. 48.153. DROPOUT RECOVERY SCHOOL AND RESIDENTIAL
1253	1253	PLACEMENT FACILITY ALLOTMENT. A school district or open-enrollment
1254	1254	charter school is entitled to $275 for each student in average
1255	1255	enrollment [daily attendance] who:
1256	1256	(1) resides in a residential placement facility; or
1257	1257	(2) is at a district or school or a campus of the
1258	1258	district or school that is designated as a dropout recovery school
1259	1259	under Section 39.0548.
1260	1260	SECTION 60. Section 48.202(a), Education Code, is amended
1261	1261	to read as follows:
1262	1262	(a) Each school district is guaranteed a specified amount
1263	1263	per weighted student in state and local funds for each cent of tax
1264	1264	effort over that required for the district's local fund assignment
1265	1265	up to the maximum level specified in this subchapter. The amount of
1266	1266	state support, subject only to the maximum amount under Section
1267	1267	48.203, is determined by the formula:
1268	1268	GYA = (GL X WAE [WADA] X DTR X 100) - LR
1269	1269	where:
1270	1270	"GYA" is the guaranteed yield amount of state funds to be
1271	1271	allocated to the district;
1272	1272	"GL" is the dollar amount guaranteed level of state and local
1273	1273	funds per weighted student per cent of tax effort, which is an
1274	1274	amount described by Subsection (a-1) or a greater amount for any
1275	1275	year provided by appropriation;
1276	1276	"WAE" ["WADA"] is the number of students in weighted average
1277	1277	enrollment [daily attendance], which is calculated by dividing the
1278	1278	sum of the school district's allotments under Subchapters B and C by
1279	1279	the basic allotment for the applicable year;
1280	1280	"DTR" is the district enrichment tax rate of the school
1281	1281	district, which is determined by subtracting the amounts specified
1282	1282	by Subsection (b) from the total amount of maintenance and
1283	1283	operations taxes collected by the school district for the
1284	1284	applicable school year and dividing the difference by the quotient
1285	1285	of the district's taxable value of property as determined under
1286	1286	Subchapter M, Chapter 403, Government Code, or, if applicable,
1287	1287	under Section 48.258 or by the quotient of the value of "DPV" as
1288	1288	determined under Section 48.256(d) if that subsection applies to
1289	1289	the district, divided by 100; and
1290	1290	"LR" is the local revenue, which is determined by multiplying
1291	1291	"DTR" by the quotient of the district's taxable value of property as
1292	1292	determined under Subchapter M, Chapter 403, Government Code, or, if
1293	1293	applicable, under Section 48.258 or by the quotient of the value of
1294	1294	"DPV" as determined under Section 48.256(d) if that subsection
1295	1295	applies to the district, divided by 100.
1296	1296	SECTION 61. Section 48.252(b), Education Code, is amended
1297	1297	to read as follows:
1298	1298	(b) Notwithstanding any other provision of this chapter or
1299	1299	Chapter 49, a school district subject to this section is entitled to
1300	1300	receive for each student in average enrollment [daily attendance]
1301	1301	at the campus or program described by Subsection (a) an amount
1302	1302	equivalent to the difference, if the difference results in
1303	1303	increased funding, between:
1304	1304	(1) the amount described by Section 12.106; and
1305	1305	(2) the amount to which the district would be entitled
1306	1306	under this chapter.
1307	1307	SECTION 62. Section 48.2642(a), Education Code, is amended
1308	1308	to read as follows:
1309	1309	(a) Notwithstanding any other provision of this chapter,
1310	1310	the commissioner shall count toward a school district's or
1311	1311	open-enrollment charter school's average enrollment [daily
1312	1312	attendance] under Section 48.005 each student who graduates early
1313	1313	from high school in the district or school under the Texas First
1314	1314	Early High School Completion Program established under Section
1315	1315	28.0253 for the period in which the student is enrolled at an
1316	1316	eligible institution using state credit awarded under the Texas
1317	1317	First Scholarship Program established under Subchapter K-1,
1318	1318	Chapter 56, based on a 100 percent attendance rate.
1319	1319	SECTION 63. Section 48.273(a)(4), Education Code, is
1320	1320	amended to read as follows:
1321	1321	(4) "Wealth per student" means the taxable property
1322	1322	values reported by the comptroller to the commissioner under
1323	1323	Section 48.256 divided by the number of students in average
1324	1324	enrollment [daily attendance].
1325	1325	SECTION 64. Section 48.277(a), Education Code, is amended
1326	1326	to read as follows:
1327	1327	(a) A school district or open-enrollment charter school is
1328	1328	entitled to receive an annual allotment for each student in average
1329	1329	enrollment [daily attendance] in the amount equal to the
1330	1330	difference, if the difference is greater than zero, that results
1331	1331	from subtracting the total maintenance and operations revenue per
1332	1332	student in average enrollment [daily attendance] for the current
1333	1333	school year from the lesser of:
1334	1334	(1) 103 percent of the district's or school's total
1335	1335	maintenance and operations revenue per student in average
1336	1336	enrollment [daily attendance] for the 2019-2020 school year that
1337	1337	the district or school would have received under former Chapters 41
1338	1338	and 42, as those chapters existed on January 1, 2019; or
1339	1339	(2) 128 percent of the statewide average amount of
1340	1340	maintenance and operations revenue per student in average
1341	1341	enrollment [daily attendance] that would have been provided for the
1342	1342	2019-2020 school year under former Chapters 41 and 42, as those
1343	1343	chapters existed on January 1, 2019.
1344	1344	SECTION 65. Section 49.001(2), Education Code, is amended
1345	1345	to read as follows:
1346	1346	(2) "Weighted average enrollment [daily attendance]"
1347	1347	has the meaning assigned by Section 48.202.
1348	1348	SECTION 66. Section 49.002, Education Code, is amended to
1349	1349	read as follows:
1350	1350	Sec. 49.002. OPTIONS TO REDUCE LOCAL REVENUE LEVEL. A
1351	1351	district with a local revenue level in excess of entitlement may
1352	1352	take any combination of the following actions to reduce the
1353	1353	district's revenue level:
1354	1354	(1) consolidation with another district as provided by
1355	1355	Subchapter B;
1356	1356	(2) detachment of territory as provided by Subchapter
1357	1357	C;
1358	1358	(3) purchase of average enrollment [daily attendance]
1359	1359	credit as provided by Subchapter D;
1360	1360	(4) education of nonresident students as provided by
1361	1361	Subchapter E; or
1362	1362	(5) tax base consolidation with another district as
1363	1363	provided by Subchapter F.
1364	1364	SECTION 67. Section 49.003, Education Code, is amended to
1365	1365	read as follows:
1366	1366	Sec. 49.003. INCLUSION OF ATTENDANCE CREDIT AND
1367	1367	NONRESIDENTS IN WEIGHTED AVERAGE ENROLLMENT [DAILY ATTENDANCE]. In
1368	1368	determining whether a school district has a local revenue level in
1369	1369	excess of entitlement, the commissioner shall use:
1370	1370	(1) the district's final weighted average enrollment
1371	1371	[daily attendance]; and
1372	1372	(2) the amount of attendance credit a district
1373	1373	purchases under Subchapter D or the number of nonresident students
1374	1374	a district educates under Subchapter E for a school year.
1375	1375	SECTION 68. Section 49.158(a), Education Code, is amended
1376	1376	to read as follows:
1377	1377	(a) Sections 49.154 and 49.157 apply only to a district
1378	1378	that:
1379	1379	(1) executes an agreement to purchase attendance
1380	1380	credit necessary to reduce the district's local revenue level to
1381	1381	the level established under Section 48.257;
1382	1382	(2) executes an agreement to purchase attendance
1383	1383	credit and an agreement under Subchapter E to contract for the
1384	1384	education of nonresident students who transfer to and are educated
1385	1385	in the district but who are not charged tuition; or
1386	1386	(3) executes an agreement under Subchapter E to
1387	1387	contract for the education of nonresident students:
1388	1388	(A) to an extent that does not provide more than
1389	1389	10 percent of the reduction in local revenue required for the
1390	1390	district to achieve a local revenue level that is equal to or less
1391	1391	than the level established under Section 48.257; and
1392	1392	(B) under which all revenue paid by the district
1393	1393	to other districts, in excess of the reduction in state aid that
1394	1394	results from counting the weighted average enrollment [daily
1395	1395	attendance] of the students served in the contracting district, is
1396	1396	required to be used for funding a consortium of at least three
1397	1397	districts in a county with a population of less than 40,000 that is
1398	1398	formed to support a technology initiative.
1399	1399	SECTION 69. Section 49.201, Education Code, is amended to
1400	1400	read as follows:
1401	1401	Sec. 49.201. AGREEMENT. The board of trustees of a
1402	1402	district with a local revenue level in excess of entitlement may
1403	1403	execute an agreement to educate the students of another district in
1404	1404	a number that, when the weighted average enrollment [daily
1405	1405	attendance] of the students served is added to the weighted average
1406	1406	enrollment [daily attendance] of the contracting district, is
1407	1407	sufficient, in combination with any other actions taken under this
1408	1408	chapter, to reduce the district's local revenue level to a level
1409	1409	that is equal to or less than the level established under Section
1410	1410	48.257. The agreement is not effective unless the commissioner
1411	1411	certifies that the transfer of weighted average enrollment [daily
1412	1412	attendance] will not result in any of the contracting districts'
1413	1413	local revenue level being greater than the level established under
1414	1414	Section 48.257 and that the agreement requires an expenditure per
1415	1415	student in weighted average enrollment [daily attendance] that is
1416	1416	at least equal to the amount per student in weighted average
1417	1417	enrollment [daily attendance] required under Section 49.153.
1418	1418	SECTION 70. Section 49.203, Education Code, is amended to
1419	1419	read as follows:
1420	1420	Sec. 49.203. WEIGHTED AVERAGE ENROLLMENT [WADA] COUNT. For
1421	1421	purposes of Chapter 48, students served under an agreement under
1422	1422	this subchapter are counted only in the weighted average enrollment
1423	1423	[daily attendance] of the district providing the services, except
1424	1424	that students served under an agreement authorized by Section
1425	1425	49.205 are counted in a manner determined by the commissioner.
1426	1426	SECTION 71. Section 49.257(b), Education Code, is amended
1427	1427	to read as follows:
1428	1428	(b) Each component district shall bear a share of the costs
1429	1429	of assessing and collecting taxes in proportion to the component
1430	1430	district's share of weighted average enrollment [daily attendance]
1431	1431	in the consolidated taxing district.
1432	1432	SECTION 72. Section 49.258, Education Code, is amended to
1433	1433	read as follows:
1434	1434	Sec. 49.258. REVENUE DISTRIBUTION. The consolidated taxing
1435	1435	district shall distribute maintenance tax revenue to the component
1436	1436	districts on the basis of the number of students in weighted average
1437	1437	enrollment [daily attendance] in the component districts.
1438	1438	SECTION 73. Sections 49.305(c) and (d), Education Code, are
1439	1439	amended to read as follows:
1440	1440	(c) If the detachment of whole parcels or items of property
1441	1441	as provided by Subsection (a) would result in a district's local
1442	1442	revenue level that is less than the level established under Section
1443	1443	48.257 by more than the product of $10,000 multiplied by weighted
1444	1444	average enrollment [daily attendance], the commissioner may not
1445	1445	detach the last parcel or item of property and shall detach the next
1446	1446	one or more parcels or items of property in descending order of
1447	1447	taxable value that would result in the school district having a
1448	1448	local revenue level that is equal to or less than the level
1449	1449	established under Section 48.257 by not more than the product of
1450	1450	$10,000 multiplied by weighted average enrollment [daily
1451	1451	attendance].
1452	1452	(d) Notwithstanding Subsections (a), (b), and (c), the
1453	1453	commissioner may detach only a portion of a parcel or item of
1454	1454	property if:
1455	1455	(1) it is not possible under this subchapter to reduce
1456	1456	the district's local revenue level to a level that is equal to or
1457	1457	less than the level established under Section 48.257 unless some or
1458	1458	all of the parcel or item of property is detached and the detachment
1459	1459	of the whole parcel or item would result in the district from which
1460	1460	it is detached having a local revenue level that is less than the
1461	1461	level established under Section 48.257 by more than the product of
1462	1462	$10,000 multiplied by weighted average enrollment [daily
1463	1463	attendance]; or
1464	1464	(2) the commissioner determines that a partial
1465	1465	detachment of that parcel or item of property is preferable to the
1466	1466	detachment of one or more other parcels or items having a lower
1467	1467	taxable value in order to minimize the number of parcels or items of
1468	1468	property to be detached consistent with the purposes of this
1469	1469	chapter.
1470	1470	SECTION 74. Section 49.306(i), Education Code, is amended
1471	1471	to read as follows:
1472	1472	(i) The commissioner may order the annexation of a portion
1473	1473	of a parcel or item of property, including a portion of property
1474	1474	treated as a whole parcel or item under Subsection (h), if:
1475	1475	(1) the annexation of the whole parcel or item would
1476	1476	result in the district eligible to receive it in the appropriate
1477	1477	priority order provided by this section having a local revenue
1478	1478	level greater than the amount by which the product of $10,000
1479	1479	multiplied by weighted average enrollment [daily attendance]
1480	1480	exceeds the taxable value of property necessary to generate
1481	1481	maintenance and operations tax revenue in the amount equal to the
1482	1482	district's entitlement under Section 48.202(a-1)(2); or
1483	1483	(2) the commissioner determines that annexation of
1484	1484	portions of the parcel or item would reduce disparities in district
1485	1485	taxable values of property necessary to generate maintenance and
1486	1486	operations tax revenue in the amount equal to a district's
1487	1487	entitlement under Section 48.202(a-1)(2) more efficiently than
1488	1488	would be possible if the parcel or item were annexed as a whole.
1489	1489	SECTION 75. Section 49.311, Education Code, is amended to
1490	1490	read as follows:
1491	1491	Sec. 49.311. STUDENT ATTENDANCE. A student who is a
1492	1492	resident of real property detached from a school district may
1493	1493	choose to attend school in that district or in the district to which
1494	1494	the property is annexed. For purposes of determining average
1495	1495	enrollment [daily attendance] under Section 48.005, the student
1496	1496	shall be counted in the district to which the property is annexed.
1497	1497	If the student chooses to attend school in the district from which
1498	1498	the property is detached, the state shall withhold any foundation
1499	1499	school funds from the district to which the property is annexed and
1500	1500	shall allocate to the district in which the student is attending
1501	1501	school those funds and the amount of funds equal to the difference
1502	1502	between the state funds the district is receiving for the student
1503	1503	and the district's cost in educating the student.
1504	1504	SECTION 76. Section 49.354(e), Education Code, is amended
1505	1505	to read as follows:
1506	1506	(e) A restored district's proportionate share of fund
1507	1507	balances, personal property, or indebtedness is equal to the
1508	1508	proportion that the number of students in average enrollment [daily
1509	1509	attendance] in the restored district bears to the number of
1510	1510	students in average enrollment [daily attendance] in the
1511	1511	consolidated district.
1512	1512	SECTION 77. Section 403.104(d), Government Code, is amended
1513	1513	to read as follows:
1514	1514	(d) The proportionate share of an independent school
1515	1515	district is determined by multiplying the total amount of the
1516	1516	payment available for distribution to school districts by the ratio
1517	1517	that the average number of [daily attendance for] students who
1518	1518	reside in the county and are enrolled in [who attend] that school
1519	1519	district bears to the average number of [daily attendance for] all
1520	1520	students who reside in the county and are enrolled in [who attend]
1521	1521	any independent school district. However, if there are fewer than
1522	1522	10 independent school districts located in whole or part in the
1523	1523	county and if an independent school district would receive under
1524	1524	this formula less than 10 percent of the total payment available for
1525	1525	distribution to independent school districts, the school
1526	1526	district's share shall be increased to 10 percent of the total
1527	1527	payment and the shares of the school districts that would receive
1528	1528	more than 10 percent under the formula shall be reduced
1529	1529	proportionately, but not to an amount less than 10 percent of the
1530	1530	total payment. [Each independent school district shall develop a
1531	1531	reasonable method for determining the average daily attendance for
1532	1532	students who reside in the county and who attend the school
1533	1533	district.]
1534	1534	SECTION 78. Section 1371.001(4), Government Code, is
1535	1535	amended to read as follows:
1536	1536	(4) "Issuer" means:
1537	1537	(A) a home-rule municipality that:
1538	1538	(i) adopted its charter under Section 5,
1539	1539	Article XI, Texas Constitution;
1540	1540	(ii) has a population of 50,000 or more; and
1541	1541	(iii) has outstanding long-term
1542	1542	indebtedness that is rated by a nationally recognized rating agency
1543	1543	for municipal securities in one of the four highest rating
1544	1544	categories for a long-term obligation;
1545	1545	(B) a conservation and reclamation district
1546	1546	created and organized as a river authority under Section 52,
1547	1547	Article III, or Section 59, Article XVI, Texas Constitution;
1548	1548	(C) a joint powers agency organized and operating
1549	1549	under Chapter 163, Utilities Code;
1550	1550	(D) a metropolitan rapid transit authority,
1551	1551	regional transportation authority, or coordinated county
1552	1552	transportation authority created, organized, or operating under
1553	1553	Chapter 451, 452, or 460, Transportation Code;
1554	1554	(E) a conservation and reclamation district
1555	1555	organized or operating as a navigation district under Section 52,
1556	1556	Article III, or Section 59, Article XVI, Texas Constitution;
1557	1557	(F) a district organized or operating under
1558	1558	Section 59, Article XVI, Texas Constitution, that has all or part of
1559	1559	two or more municipalities within its boundaries;
1560	1560	(G) a state agency, including a state institution
1561	1561	of higher education;
1562	1562	(H) a hospital authority created or operating
1563	1563	under Chapter 262 or 264, Health and Safety Code, in a county that:
1564	1564	(i) has a population of more than 3.3
1565	1565	million; or
1566	1566	(ii) is included, in whole or in part, in a
1567	1567	standard metropolitan statistical area of this state that includes
1568	1568	a county with a population of more than 2.5 million;
1569	1569	(I) a hospital district in a county that has a
1570	1570	population of more than 2.5 million;
1571	1571	(J) a nonprofit corporation organized to
1572	1572	exercise the powers of a higher education loan authority under
1573	1573	Section 53B.47(e), Education Code;
1574	1574	(K) a county:
1575	1575	(i) that has a population of more than 3.3
1576	1576	million; or
1577	1577	(ii) that, on the date of issuance of
1578	1578	obligations under this chapter, has authorized, outstanding, or any
1579	1579	combination of authorized and outstanding, indebtedness of at least
1580	1580	$100 million secured by and payable from the county's ad valorem
1581	1581	taxes and the authorized long-term indebtedness of which is rated
1582	1582	by a nationally recognized rating agency of securities issued by
1583	1583	local governments in one of the four highest rating categories for a
1584	1584	long-term obligation;
1585	1585	(L) an independent school district that has an
1586	1586	average enrollment [daily attendance] of 50,000 or more as
1587	1587	determined under Section 48.005, Education Code;
1588	1588	(M) a municipality or county operating under
1589	1589	Chapter 334, Local Government Code;
1590	1590	(N) a district created under Chapter 335, Local
1591	1591	Government Code;
1592	1592	(O) a junior college district that has a total
1593	1593	headcount enrollment of 40,000 or more based on enrollment in the
1594	1594	most recent regular semester; or
1595	1595	(P) an issuer, as defined by Section 1201.002,
1596	1596	that has:
1597	1597	(i) a principal amount of at least $100
1598	1598	million in outstanding long-term indebtedness, in long-term
1599	1599	indebtedness proposed to be issued, or in a combination of
1600	1600	outstanding or proposed long-term indebtedness; and
1601	1601	(ii) some amount of long-term indebtedness
1602	1602	outstanding or proposed to be issued that is rated in one of the
1603	1603	four highest rating categories for long-term debt instruments by a
1604	1604	nationally recognized rating agency for municipal securities,
1605	1605	without regard to the effect of any credit agreement or other form
1606	1606	of credit enhancement entered into in connection with the
1607	1607	obligation.
1608	1608	SECTION 79. Section 1431.001(3), Government Code, is
1609	1609	amended to read as follows:
1610	1610	(3) "Eligible school district" means an independent
1611	1611	school district that has an average enrollment [daily attendance]
1612	1612	of 190,000 or more as determined under Section 48.005, Education
1613	1613	Code.
1614	1614	SECTION 80. Section 325.011(a), Local Government Code, is
1615	1615	amended to read as follows:
1616	1616	(a) The district is governed by a board of directors
1617	1617	composed of five members, with two directors appointed by the
1618	1618	commissioners court of the county, two directors appointed by the
1619	1619	governing body of the municipality having the largest population in
1620	1620	the county, and one director appointed by the governing body of the
1621	1621	school district with the largest number of students in average
1622	1622	enrollment [daily attendance] in the county. The board shall
1623	1623	manage the district and administer this chapter.
1624	1624	SECTION 81. Section 1, Article 2688d, Vernon's Texas Civil
1625	1625	Statutes, is amended to read as follows:
1626	1626	Section 1. In all counties of the State where, according to
1627	1627	the preceding annual statistical report of the schools said county
1628	1628	has not more than four (4) school districts, with one (1) of such
1629	1629	districts comprising more than half of the county and having more
1630	1630	than two thousand (2,000) pupils in average enrollment [daily
1631	1631	attendance] in the one (1) district alone, and such district having
1632	1632	an assessed valuation of more than Twenty Million Dollars
1633	1633	($20,000,000) and where there is only one (1) common school
1634	1634	district in such county with an average enrollment [daily
1635	1635	attendance] of less than sixteen (16), the office of county
1636	1636	superintendent is hereby abolished, to be effective at the end of
1637	1637	the term of the incumbent county superintendent, as is now provided
1638	1638	by law.
1639	1639	SECTION 82. The following provisions of the Education Code
1640	1640	are repealed:
1641	1641	(1) Section 29.0822(d-1); and
1642	1642	(2) Section 48.007.
1643	1643	SECTION 83. This Act takes effect September 1, 2025.