Texas 2025 - 89th Regular

Texas House Bill HB1889 Compare Versions

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1	1	89R1505 KJE-D
2	2	By: A. Davis of Dallas H.B. No. 1889
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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) The rules adopted under Subsection (m)(1) must include a
154	154	requirement that the agency use a school district's total
155	155	enrollment on the last Friday of October and March for purposes of
156	156	estimating the district's average enrollment for that school year.
157	157	(o) To assist school districts in implementing this section
158	158	as amended by H.B. 2442, [Acts of the] 85th Legislature, Regular
159	159	Session, 2017, the commissioner may waive a requirement of this
160	160	section or adopt rules to implement this section.
161	161	SECTION 2. Section 7.062(a), Education Code, is amended to
162	162	read as follows:
163	163	(a) In this section, "wealth per student" means a school
164	164	district's taxable value of property as determined under Subchapter
165	165	M, Chapter 403, Government Code, or, if applicable, Section 48.258,
166	166	divided by the district's average enrollment [daily attendance] as
167	167	determined under Section 48.005.
168	168	SECTION 3. Section 11.052(f), Education Code, is amended to
169	169	read as follows:
170	170	(f) If single-member trustee districts are adopted or
171	171	approved as provided by this section, the board shall divide the
172	172	school district into the appropriate number of trustee districts,
173	173	based on the number of members of the board that are to be elected
174	174	from single-member trustee districts, and shall number each trustee
175	175	district. The trustee districts must be compact and contiguous and
176	176	must be as nearly as practicable of equal population. In a district
177	177	with 150,000 or more students in average enrollment [daily
178	178	attendance], the boundary of a trustee district may not cross a
179	179	county election precinct boundary except at a point at which the
180	180	boundary of the school district crosses the county election
181	181	precinct boundary. Trustee districts must be drawn not later than
182	182	the 90th day before the date of the first election of trustees from
183	183	those districts.
184	184	SECTION 4. Sections 12.106(a), (a-2), and (d), Education
185	185	Code, are amended to read as follows:
186	186	(a) A charter holder is entitled to receive for the
187	187	open-enrollment charter school funding under Chapter 48 equal to
188	188	the amount of funding per student in weighted average enrollment
189	189	[daily attendance], excluding the adjustment under Section 48.052,
190	190	the funding under Sections 48.101, 48.110, 48.111, and 48.112, and
191	191	enrichment funding under Section 48.202(a), to which the charter
192	192	holder would be entitled for the school under Chapter 48 if the
193	193	school were a school district without a tier one local share for
194	194	purposes of Section 48.266.
195	195	(a-2) In addition to the funding provided by Subsection (a),
196	196	a charter holder is entitled to receive for the open-enrollment
197	197	charter school an allotment per student in average enrollment
198	198	[daily attendance] in an amount equal to the difference between:
199	199	(1) the product of:
200	200	(A) the quotient of:
201	201	(i) the total amount of funding provided to
202	202	eligible school districts under Section 48.101(b) or (c); and
203	203	(ii) the total number of students in
204	204	average enrollment [daily attendance] in school districts that
205	205	receive an allotment under Section 48.101(b) or (c); and
206	206	(B) the sum of one and the quotient of:
207	207	(i) the total number of students in average
208	208	enrollment [daily attendance] in school districts that receive an
209	209	allotment under Section 48.101(b) or (c); and
210	210	(ii) the total number of students in
211	211	average enrollment [daily attendance] in school districts
212	212	statewide; and
213	213	(2) $125.
214	214	(d) Subject to Subsection (e), in addition to other amounts
215	215	provided by this section, a charter holder is entitled to receive,
216	216	for the open-enrollment charter school, funding per student in
217	217	average enrollment [daily attendance] in an amount equal to the
218	218	guaranteed level of state and local funds per student per cent of
219	219	tax effort under Section 46.032(a) multiplied by the lesser of:
220	220	(1) the state average interest and sinking fund tax
221	221	rate imposed by school districts for the current year; or
222	222	(2) a rate that would result in a total amount to which
223	223	charter schools are entitled under this subsection for the current
224	224	year equal to $60 million.
225	225	SECTION 5. Sections 12.263(a), (b), and (c), Education
226	226	Code, are amended to read as follows:
227	227	(a) Except as otherwise provided by this section, funding
228	228	for an adult education program operated under a charter granted
229	229	under this subchapter is an amount per participant through the
230	230	Foundation School Program equal to the amount of state funding per
231	231	student in weighted average enrollment [daily attendance] that
232	232	would be allocated under the Foundation School Program for the
233	233	student's enrollment [attendance] at an open-enrollment charter
234	234	school in accordance with Section 12.106.
235	235	(b) For purposes of determining the average enrollment
236	236	[daily attendance] of an adult education program operated under a
237	237	charter granted under this subchapter, a student is considered to
238	238	be in average enrollment [daily attendance, with a 100 percent
239	239	attendance rate,] for:
240	240	(1) all of the instructional days of the school year,
241	241	if the student is enrolled for at least 75 percent of the school
242	242	year;
243	243	(2) half of the instructional days of the school year,
244	244	if the student is enrolled for at least 50 percent but less than 75
245	245	percent of the school year;
246	246	(3) a quarter of the instructional days of the school
247	247	year, if the student is enrolled for at least 25 percent but less
248	248	than 50 percent of the school year; or
249	249	(4) one-tenth of the instructional days of the school
250	250	year, if the student is enrolled for at least 10 percent but less
251	251	than 25 percent of the school year.
252	252	(c) A student enrolled in an adult education program
253	253	operated under a charter granted under this subchapter for less
254	254	than 10 percent of a school year may not be counted toward the adult
255	255	education program's average enrollment [daily attendance] for that
256	256	school year.
257	257	SECTION 6. Section 13.051(c), Education Code, is amended to
258	258	read as follows:
259	259	(c) Territory that does not have residents may be detached
260	260	from a school district and annexed to another school district if:
261	261	(1) the total taxable value of the property in the
262	262	territory according to the most recent certified appraisal roll for
263	263	each school district is not greater than:
264	264	(A) five percent of the district's taxable value
265	265	of all property in that district as determined under Subchapter M,
266	266	Chapter 403, Government Code; and
267	267	(B) $5,000 property value per student in average
268	268	enrollment [daily attendance] as determined under Section 48.005;
269	269	and
270	270	(2) the school district from which the property will
271	271	be detached does not own any real property located in the territory.
272	272	SECTION 7. Section 13.102, Education Code, is amended to
273	273	read as follows:
274	274	Sec. 13.102. MINIMUM AREA AND ENROLLMENT [ATTENDANCE]
275	275	REQUIREMENTS. A new district may not be created with an area of
276	276	less than nine square miles or fewer than 8,000 students in average
277	277	enrollment [daily attendance], and a district may not be reduced to
278	278	an area of less than nine square miles or fewer than 8,000 students
279	279	in average enrollment [daily attendance].
280	280	SECTION 8. Section 13.283, Education Code, is amended to
281	281	read as follows:
282	282	Sec. 13.283. PAYMENTS REDUCED. The incentive aid payments
283	283	shall be reduced in direct proportion to any reduction in the
284	284	average enrollment [daily attendance] as determined under Section
285	285	48.005 of the reorganized school district for the preceding year.
286	286	SECTION 9. Section 19.009(d-2), Education Code, is amended
287	287	to read as follows:
288	288	(d-2) Beginning with the 2009-2010 school year, the
289	289	district shall increase the monthly salary of each classroom
290	290	teacher, full-time speech pathologist, full-time librarian,
291	291	full-time school counselor certified under Subchapter B, Chapter
292	292	21, and full-time school nurse employed by the district by the
293	293	greater of:
294	294	(1) $80; or
295	295	(2) the maximum uniform amount that, when combined
296	296	with any resulting increases in the amount of contributions made by
297	297	the district for social security coverage for the specified
298	298	employees or by the district on behalf of the specified employees
299	299	under Section 825.405, Government Code, may be provided using an
300	300	amount equal to the product of $60 multiplied by the number of
301	301	students in weighted average enrollment [daily attendance] in the
302	302	district during the 2009-2010 school year.
303	303	SECTION 10. Section 25.038, Education Code, is amended to
304	304	read as follows:
305	305	Sec. 25.038. TUITION FEE FOR TRANSFER STUDENTS. The
306	306	receiving school district may charge a tuition fee to the extent
307	307	that the district's actual expenditure per student in average
308	308	enrollment [daily attendance], as determined by its board of
309	309	trustees, exceeds the sum the district benefits from state aid
310	310	sources as provided by Section 25.037. However, unless a tuition
311	311	fee is prescribed and set out in a transfer agreement before its
312	312	execution by the parties, an increase in tuition charge may not be
313	313	made for the year of that transfer that exceeds the tuition charge,
314	314	if any, of the preceding school year.
315	315	SECTION 11. Section 25.045(c), Education Code, is amended
316	316	to read as follows:
317	317	(c) A student who transfers to another school district under
318	318	this section may not be charged tuition. The student is included in
319	319	the average enrollment [daily attendance] of the district in which
320	320	the student attends school.
321	321	SECTION 12. Sections 25.081(e) and (f), Education Code, are
322	322	amended to read as follows:
323	323	(e) A school district or education program is exempt from
324	324	the minimum minutes of operation requirement if the district's or
325	325	program's average enrollment [daily attendance] is calculated
326	326	under Section 48.005(j).
327	327	(f) The commissioner may proportionally reduce the amount
328	328	of funding a district receives under Chapter 46, 48, or 49 and the
329	329	average enrollment [daily attendance] calculation for the district
330	330	if the district operates on a calendar that provides fewer minutes
331	331	of operation than required under Subsection (a).
332	332	SECTION 13. Section 25.087(d), Education Code, is amended
333	333	to read as follows:
334	334	(d) A student whose absence is excused under Subsection (b),
335	335	(b-1), (b-2), (b-4), (b-5), (b-7), (b-8), or (c) may not be
336	336	penalized for that absence and shall be counted as if the student
337	337	attended school for purposes of funding under Chapter 48
338	338	[calculating the average daily attendance of students in the school
339	339	district]. A student whose absence is excused under Subsection (b),
340	340	(b-1), (b-2), (b-4), (b-5), (b-7), (b-8), or (c) shall be allowed a
341	341	reasonable time to make up school work missed on those days. If the
342	342	student satisfactorily completes the school work, the day of
343	343	absence shall be counted as a day of compulsory attendance.
344	344	SECTION 14. Section 25.111, Education Code, is amended to
345	345	read as follows:
346	346	Sec. 25.111. STUDENT/TEACHER RATIOS. Except as provided by
347	347	Section 25.112, each school district must employ a sufficient
348	348	number of teachers certified under Subchapter B, Chapter 21, to
349	349	maintain an average ratio of not less than one teacher for each 20
350	350	students in average enrollment [daily attendance].
351	351	SECTION 15. Sections 25.112(a) and (b), Education Code, are
352	352	amended to read as follows:
353	353	(a) Except as otherwise authorized by this section, a school
354	354	district may not enroll more than 22 students in a prekindergarten,
355	355	kindergarten, first, second, third, or fourth grade class. That
356	356	limitation does not apply during:
357	357	(1) any 12-week period of the school year selected by
358	358	the district, in the case of a district whose average enrollment
359	359	[daily attendance] is adjusted under Section 48.005(c); or
360	360	(2) the last 12 weeks of any school year in the case of
361	361	any other district.
362	362	(b) Not later than the 30th day after the first day of the
363	363	12-week period for which a district whose average enrollment [daily
364	364	attendance] is adjusted under Section 48.005(c) is claiming an
365	365	exemption under Subsection (a), the district shall notify the
366	366	commissioner in writing that the district is claiming an exemption
367	367	for the period stated in the notice.
368	368	SECTION 16. Section 29.008(b), Education Code, is amended
369	369	to read as follows:
370	370	(b) Except as provided by Subsection (c), costs of an
371	371	approved contract for residential placement may be paid from a
372	372	combination of federal, state, and local funds. The local share of
373	373	the total contract cost for each student is that portion of the
374	374	local tax effort that exceeds the district's local fund assignment
375	375	under Section 48.256, divided by the average enrollment [daily
376	376	attendance] in the district. If the contract involves a private
377	377	facility, the state share of the total contract cost is that amount
378	378	remaining after subtracting the local share. If the contract
379	379	involves a public facility, the state share is that amount
380	380	remaining after subtracting the local share from the portion of the
381	381	contract that involves the costs of instructional and related
382	382	services. For purposes of this subsection, "local tax effort"
383	383	means the total amount of money generated by taxes imposed for debt
384	384	service and maintenance and operation less any amounts paid into a
385	385	tax increment fund under Chapter 311, Tax Code.
386	386	SECTION 17. Section 29.014(b), Education Code, is amended
387	387	to read as follows:
388	388	(b) A school district to which this section applies may
389	389	operate an extended year program for a period not to exceed 45 days.
390	390	[The district's average daily attendance shall be computed for the
391	391	regular school year plus the extended year.]
392	392	SECTION 18. Section 29.081(f), Education Code, is amended
393	393	to read as follows:
394	394	(f) The commissioner shall include a student who
395	395	successfully completes a course offered through a program under
396	396	Subsection (e) in the computation of the district's or school's
397	397	average enrollment [daily attendance] for funding purposes. [For a
398	398	student who successfully completes a remote course offered through
399	399	the program, the commissioner shall include the student in the
400	400	computation of the district's or school's average daily attendance
401	401	with an attendance rate equal to:
402	402	[(1) the district's or school's average attendance
403	403	rate for students successfully completing a course offered in
404	404	person under the program; or
405	405	[(2) if the district or school does not offer courses
406	406	in person under the program, the statewide average attendance rate
407	407	for students successfully completing a course offered in person
408	408	under a program under Subsection (e).]
409	409	SECTION 19. Section 29.0822(d), Education Code, is amended
410	410	to read as follows:
411	411	(d) The commissioner may adopt rules for the administration
412	412	of this section, including rules establishing application
413	413	requirements. [Subject to Subsection (d-1), the commissioner shall
414	414	calculate average daily attendance for students served under this
415	415	section. The commissioner shall allow accumulations of hours of
416	416	instruction for students whose schedule would not otherwise allow
417	417	full state funding. Funding under this subsection shall be
418	418	determined based on the number of instructional days in the school
419	419	district calendar and a seven-hour school day, but attendance may
420	420	be cumulated over a school year, including any summer or vacation
421	421	session. The attendance of students who accumulate less than the
422	422	number of attendance hours required under this subsection shall be
423	423	proportionately reduced for funding purposes. The commissioner
424	424	may:
425	425	[(1) set maximum funding amounts for an individual
426	426	course under this section; and
427	427	[(2) limit funding for the attendance of a student
428	428	described by Subsection (a)(3) in a course under this section to
429	429	funding only for the attendance necessary for the student to earn
430	430	class credit that, as a result of attendance requirements under
431	431	Section 25.092, the student would not otherwise be able to receive
432	432	without retaking the class.]
433	433	SECTION 20. Section 29.184(b), Education Code, is amended
434	434	to read as follows:
435	435	(b) A student who attends career and technology classes at
436	436	another school under a contract authorized by Subsection (a) is
437	437	included in the average enrollment [daily attendance] of the
438	438	district in which the student is regularly enrolled.
439	439	SECTION 21. Sections 29.203(a) and (c), Education Code, are
440	440	amended to read as follows:
441	441	(a) A student who under this subchapter uses a public
442	442	education grant to attend a public school in a school district other
443	443	than the district in which the student resides is included in the
444	444	average enrollment [daily attendance] of the district in which the
445	445	student attends school.
446	446	(c) A school district is entitled to additional facilities
447	447	assistance under Section 48.301 if the district agrees to:
448	448	(1) accept a number of students using public education
449	449	grants that is at least one percent of the district's average
450	450	enrollment [daily attendance] for the preceding school year; and
451	451	(2) provide services to each student until the student
452	452	either voluntarily decides to attend a school in a different
453	453	district or graduates from high school.
454	454	SECTION 22. Section 29.403(b), Education Code, is amended
455	455	to read as follows:
456	456	(b) A student who is enrolled in a program under this
457	457	subchapter is included in determining the average enrollment [daily
458	458	attendance] under Section 48.005 of the partnering school district.
459	459	SECTION 23. Section 29.457(a), Education Code, is amended
460	460	to read as follows:
461	461	(a) In addition to other funding to which a school district
462	462	is entitled under this code, each district in which alleged
463	463	offender residents attend school is entitled to an annual allotment
464	464	of $5,100 for each resident in average enrollment [daily
465	465	attendance] or a different amount for any year provided by
466	466	appropriation.
467	467	SECTION 24. Section 29.912(c), Education Code, is amended
468	468	to read as follows:
469	469	(c) The program must enable an eligible school district that
470	470	has fewer than 1,600 students in average enrollment [daily
471	471	attendance] to partner with at least one other school district
472	472	located within a distance of 100 miles to offer a broader array of
473	473	robust college and career pathways. Each partnership must:
474	474	(1) offer college and career pathways that align with
475	475	regional labor market projections for high-wage, high-demand
476	476	careers; and
477	477	(2) be managed by a coordinating entity that:
478	478	(A) has or will have at the time students are
479	479	served under the partnership the capacity to effectively coordinate
480	480	the partnership;
481	481	(B) has entered into a performance agreement
482	482	approved by the board of trustees of each partnering school
483	483	district that confers on the coordinating entity the same authority
484	484	with respect to pathways offered under the partnership provided to
485	485	an entity that contracts to operate a district campus under Section
486	486	11.174;
487	487	(C) is an eligible entity as defined by Section
488	488	12.101(a); and
489	489	(D) has on the entity's governing board as either
490	490	voting or ex officio members, or has on an advisory body,
491	491	representatives of each partnering school district and members of
492	492	regional higher education and workforce organizations.
493	493	SECTION 25. Section 30.003(b), Education Code, is amended
494	494	to read as follows:
495	495	(b) If the student is admitted to the school for a full-time
496	496	program for the equivalent of two long semesters, the district's
497	497	share of the cost is an amount equal to the dollar amount of
498	498	maintenance and debt service taxes imposed by the district for that
499	499	year divided by the district's average enrollment [daily
500	500	attendance] for the preceding year.
501	501	SECTION 26. Section 30.102(a), Education Code, is amended
502	502	to read as follows:
503	503	(a) The Texas Juvenile Justice Department is entitled to
504	504	receive the state available school fund apportionment based on the
505	505	average enrollment [daily attendance] in the department's
506	506	educational programs of students who are at least three years of age
507	507	and not older than 21 years of age.
508	508	SECTION 27. Section 30A.151(f), Education Code, is amended
509	509	to read as follows:
510	510	(f) For a full-time electronic course program offered
511	511	through the state virtual school network for a grade level at or
512	512	above grade level three but not above grade level eight, a school
513	513	district or open-enrollment charter school is entitled to receive
514	514	federal, state, and local funding for a student enrolled in the
515	515	program in an amount equal to the funding the district or school
516	516	would otherwise receive for a student enrolled in the district or
517	517	school. [The district or school may calculate the average daily
518	518	attendance of a student enrolled in the program based on:
519	519	[(1) hours of contact with the student;
520	520	[(2) the student's successful completion of a course;
521	521	or
522	522	[(3) a method approved by the commissioner.]
523	523	SECTION 28. Section 33.157, Education Code, is amended to
524	524	read as follows:
525	525	Sec. 33.157. PARTICIPATION IN PROGRAM. An elementary or
526	526	secondary school receiving funding under Section 33.156 shall
527	527	participate in a local Communities In Schools program if the number
528	528	of students enrolled in the school who are at risk of dropping out
529	529	of school is equal to at least 10 percent of the number of students
530	530	in average enrollment [daily attendance] at the school, as
531	531	determined by the agency.
532	532	SECTION 29. Section 37.0061, Education Code, is amended to
533	533	read as follows:
534	534	Sec. 37.0061. FUNDING FOR ALTERNATIVE EDUCATION SERVICES IN
535	535	JUVENILE RESIDENTIAL FACILITIES. A school district that provides
536	536	education services to pre-adjudicated and post-adjudicated
537	537	students who are confined by court order in a juvenile residential
538	538	facility operated by a juvenile board is entitled to count such
539	539	students in the district's average enrollment [daily attendance]
540	540	for purposes of receipt of state funds under the Foundation School
541	541	Program. If the district has a local revenue level greater than the
542	542	guaranteed local revenue level but less than the level established
543	543	under Section 48.257, the district in which the student is enrolled
544	544	on the date a court orders the student to be confined to a juvenile
545	545	residential facility shall transfer to the district providing
546	546	education services an amount equal to the difference between the
547	547	average Foundation School Program costs per student of the district
548	548	providing education services and the sum of the state aid and the
549	549	money from the available school fund received by the district that
550	550	is attributable to the student for the portion of the school year
551	551	for which the district provides education services to the student.
552	552	SECTION 30. Section 37.008(f), Education Code, is amended
553	553	to read as follows:
554	554	(f) A student removed to a disciplinary alternative
555	555	education program is counted in computing the average enrollment
556	556	[daily attendance] of students in the district [for the student's
557	557	time in actual attendance in the program].
558	558	SECTION 31. Section 37.011(a-4), Education Code, is amended
559	559	to read as follows:
560	560	(a-4) A school district located in a county considered to be
561	561	a county with a population of 125,000 or less under Subsection (a-3)
562	562	shall provide educational services to a student who is expelled
563	563	from school under this chapter. The district is entitled to count
564	564	the student in the district's average enrollment [daily attendance]
565	565	for purposes of receipt of state funds under the Foundation School
566	566	Program. An educational placement under this section may include:
567	567	(1) the district's disciplinary alternative education
568	568	program; or
569	569	(2) a contracted placement with:
570	570	(A) another school district;
571	571	(B) an open-enrollment charter school;
572	572	(C) an institution of higher education;
573	573	(D) an adult literacy council; or
574	574	(E) a community organization that can provide an
575	575	educational program that allows the student to complete the credits
576	576	required for high school graduation.
577	577	SECTION 32. Sections 39.027(c) and (f), Education Code, are
578	578	amended to read as follows:
579	579	(c) The commissioner shall develop and adopt a process for
580	580	reviewing the exemption process of a school district or shared
581	581	services arrangement that gives an exemption under Subsection
582	582	(a)(1) as follows:
583	583	(1) to more than five 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 1,600;
587	587	(2) to more than 10 percent of the students in the
588	588	special education program, in the case of a district or shared
589	589	services arrangement with an average enrollment [daily attendance]
590	590	of at least 190 and not more than 1,599; or
591	591	(3) to the greater of more than 10 percent of the
592	592	students in the special education program or to at least five
593	593	students in the special education program, in the case of a district
594	594	or shared services arrangement with an average enrollment [daily
595	595	attendance] of not more than 189.
596	596	(f) In this section, "average enrollment [daily
597	597	attendance]" is computed in the manner provided by Section 48.005.
598	598	SECTION 33. Section 39.053(g-1), Education Code, is amended
599	599	to read as follows:
600	600	(g-1) In computing dropout and completion rates such as high
601	601	school graduation rates under Subsection (c)(1)(B)(ix), the
602	602	commissioner shall exclude:
603	603	(1) students who are ordered by a court to attend a
604	604	high school equivalency certificate program but who have not yet
605	605	earned a high school equivalency certificate;
606	606	(2) students who were previously reported to the state
607	607	as dropouts, including a student who is reported as a dropout,
608	608	reenrolls, and drops out again, regardless of the number of times of
609	609	reenrollment and dropping out;
610	610	(3) students in attendance who are not in membership
611	611	for purposes of average enrollment [daily attendance];
612	612	(4) students whose initial enrollment in a school in
613	613	the United States in grades 7 through 12 was as an unschooled asylee
614	614	or refugee as defined by Section 39.027(a-1);
615	615	(5) students who are detained at a county
616	616	pre-adjudication or post-adjudication juvenile detention facility
617	617	and:
618	618	(A) in the district exclusively as a function of
619	619	having been detained at the facility but are otherwise not students
620	620	of the district in which the facility is located; or
621	621	(B) provided services by an open-enrollment
622	622	charter school exclusively as the result of having been detained at
623	623	the facility;
624	624	(6) students who are incarcerated in state jails and
625	625	federal penitentiaries as adults and as persons certified to stand
626	626	trial as adults; and
627	627	(7) students who have suffered a condition, injury, or
628	628	illness that requires substantial medical care and leaves the
629	629	student:
630	630	(A) unable to attend school; and
631	631	(B) assigned to a medical or residential
632	632	treatment facility.
633	633	SECTION 34. Section 39.262(a), Education Code, is amended
634	634	to read as follows:
635	635	(a) The governor may present a financial award to the
636	636	schools or districts that the commissioner determines have
637	637	demonstrated the highest levels of sustained success or the
638	638	greatest improvement in achieving the education goals. For each
639	639	student in average enrollment [daily attendance], each of those
640	640	schools or districts is entitled to an amount set for the award for
641	641	which the school or district is selected by the commissioner,
642	642	subject to any limitation set by the commissioner on the total
643	643	amount that may be awarded to a school or district.
644	644	SECTION 35. Section 43.001(c), Education Code, is amended
645	645	to read as follows:
646	646	(c) The term "scholastic population" in Subsection (b) or
647	647	any other law governing the apportionment, distribution, and
648	648	transfer of the available school fund means all students of school
649	649	age [enrolled] in average enrollment [daily attendance] the
650	650	preceding school year in the public elementary and high school
651	651	grades of school districts within or under the jurisdiction of a
652	652	county of this state.
653	653	SECTION 36. Section 44.004(c), Education Code, is amended
654	654	to read as follows:
655	655	(c) The notice of public meeting to discuss and adopt the
656	656	budget and the proposed tax rate may not be smaller than one-quarter
657	657	page of a standard-size or a tabloid-size newspaper, and the
658	658	headline on the notice must be in 18-point or larger type. Subject
659	659	to Subsection (d), the notice must:
660	660	(1) contain a statement in the following form:
661	661	"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
662	662	"The (name of school district) will hold a public meeting at
663	663	(time, date, year) in (name of room, building, physical location,
664	664	city, state). The purpose of this meeting is to discuss the school
665	665	district's budget that will determine the tax rate that will be
666	666	adopted. Public participation in the discussion is invited." The
667	667	statement of the purpose of the meeting must be in bold type. In
668	668	reduced type, the notice must state: "The tax rate that is
669	669	ultimately adopted at this meeting or at a separate meeting at a
670	670	later date may not exceed the proposed rate shown below unless the
671	671	district publishes a revised notice containing the same information
672	672	and comparisons set out below and holds another public meeting to
673	673	discuss the revised notice." In addition, in reduced type, the
674	674	notice must state: "Visit Texas.gov/PropertyTaxes to find a link to
675	675	your local property tax database on which you can easily access
676	676	information regarding your property taxes, including information
677	677	about proposed tax rates and scheduled public hearings of each
678	678	entity that taxes your property.";
679	679	(2) contain a section entitled "Comparison of Proposed
680	680	Budget with Last Year's Budget," which must show the difference,
681	681	expressed as a percent increase or decrease, as applicable, in the
682	682	amounts budgeted for the preceding fiscal year and the amount
683	683	budgeted for the fiscal year that begins in the current tax year for
684	684	each of the following:
685	685	(A) maintenance and operations;
686	686	(B) debt service; and
687	687	(C) total expenditures;
688	688	(3) contain a section entitled "Total Appraised Value
689	689	and Total Taxable Value," which must show the total appraised value
690	690	and the total taxable value of all property and the total appraised
691	691	value and the total taxable value of new property taxable by the
692	692	district in the preceding tax year and the current tax year as
693	693	calculated under Section 26.04, Tax Code;
694	694	(4) contain a statement of the total amount of the
695	695	outstanding and unpaid bonded indebtedness of the school district;
696	696	(5) contain a section entitled "Comparison of Proposed
697	697	Rates with Last Year's Rates," which must:
698	698	(A) show in rows the tax rates described by
699	699	Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
700	700	property, for columns entitled "Maintenance & Operations,"
701	701	"Interest & Sinking Fund," and "Total," which is the sum of
702	702	"Maintenance & Operations" and "Interest & Sinking Fund":
703	703	(i) the school district's "Last Year's
704	704	Rate";
705	705	(ii) the "Rate to Maintain Same Level of
706	706	Maintenance & Operations Revenue & Pay Debt Service," which:
707	707	(a) in the case of "Maintenance &
708	708	Operations," is the tax rate that, when applied to the current
709	709	taxable value for the district, as certified by the chief appraiser
710	710	under Section 26.01, Tax Code, and as adjusted to reflect changes
711	711	made by the chief appraiser as of the time the notice is prepared,
712	712	would impose taxes in an amount that, when added to state funds to
713	713	be distributed to the district under Chapter 48, would provide the
714	714	same amount of maintenance and operations taxes and state funds
715	715	distributed under Chapter 48 per student in average enrollment
716	716	[daily attendance] for the applicable school year that was
717	717	available to the district in the preceding school year; and
718	718	(b) in the case of "Interest & Sinking
719	719	Fund," is the tax rate that, when applied to the current taxable
720	720	value for the district, as certified by the chief appraiser under
721	721	Section 26.01, Tax Code, and as adjusted to reflect changes made by
722	722	the chief appraiser as of the time the notice is prepared, and when
723	723	multiplied by the district's anticipated collection rate, would
724	724	impose taxes in an amount that, when added to state funds to be
725	725	distributed to the district under Chapter 46 and any excess taxes
726	726	collected to service the district's debt during the preceding tax
727	727	year but not used for that purpose during that year, would provide
728	728	the amount required to service the district's debt; and
729	729	(iii) the "Proposed Rate";
730	730	(B) contain fourth and fifth columns aligned with
731	731	the columns required by Paragraph (A) that show, for each row
732	732	required by Paragraph (A):
733	733	(i) the "Local Revenue per Student," which
734	734	is computed by multiplying the district's total taxable value of
735	735	property, as certified by the chief appraiser for the applicable
736	736	school year under Section 26.01, Tax Code, and as adjusted to
737	737	reflect changes made by the chief appraiser as of the time the
738	738	notice is prepared, by the total tax rate, and dividing the product
739	739	by the number of students in average enrollment [daily attendance]
740	740	in the district for the applicable school year; and
741	741	(ii) the "State Revenue per Student," which
742	742	is computed by determining the amount of state aid received or to be
743	743	received by the district under Chapters 43, 46, and 48 and dividing
744	744	that amount by the number of students in average enrollment [daily
745	745	attendance] in the district for the applicable school year; and
746	746	(C) contain an asterisk after each calculation
747	747	for "Interest & Sinking Fund" and a footnote to the section that, in
748	748	reduced type, states "The Interest & Sinking Fund tax revenue is
749	749	used to pay for bonded indebtedness on construction, equipment, or
750	750	both. The bonds, and the tax rate necessary to pay those bonds, were
751	751	approved by the voters of this district.";
752	752	(6) contain a section entitled "Comparison of Proposed
753	753	Levy with Last Year's Levy on Average Residence," which must:
754	754	(A) show in rows the information described by
755	755	Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
756	756	entitled "Last Year" and "This Year":
757	757	(i) "Average Market Value of Residences,"
758	758	determined using the same group of residences for each year;
759	759	(ii) "Average Taxable Value of Residences,"
760	760	determined after taking into account the limitation on the
761	761	appraised value of residences under Section 23.23, Tax Code, and
762	762	after subtracting all homestead exemptions applicable in each year,
763	763	other than exemptions available only to disabled persons or persons
764	764	65 years of age or older or their surviving spouses, and using the
765	765	same group of residences for each year;
766	766	(iii) "Last Year's Rate Versus Proposed
767	767	Rate per $100 Value"; and
768	768	(iv) "Taxes Due on Average Residence,"
769	769	determined using the same group of residences for each year; and
770	770	(B) contain the following information: "Increase
771	771	(Decrease) in Taxes" expressed in dollars and cents, which is
772	772	computed by subtracting the "Taxes Due on Average Residence" for
773	773	the preceding tax year from the "Taxes Due on Average Residence" for
774	774	the current tax year;
775	775	(7) contain the following statement in bold print:
776	776	"Under state law, the dollar amount of school taxes imposed on the
777	777	residence of a person 65 years of age or older or of the surviving
778	778	spouse of such a person, if the surviving spouse was 55 years of age
779	779	or older when the person died, may not be increased above the amount
780	780	paid in the first year after the person turned 65, regardless of
781	781	changes in tax rate or property value.";
782	782	(8) contain the following statement in bold print:
783	783	"Notice of Voter-Approval Rate: The highest tax rate the district
784	784	can adopt before requiring voter approval at an election is (the
785	785	school district voter-approval rate determined under Section
786	786	26.08, Tax Code). This election will be automatically held if the
787	787	district adopts a rate in excess of the voter-approval rate of (the
788	788	school district voter-approval rate)."; and
789	789	(9) contain a section entitled "Fund Balances," which
790	790	must include the estimated amount of interest and sinking fund
791	791	balances and the estimated amount of maintenance and operation or
792	792	general fund balances remaining at the end of the current fiscal
793	793	year that are not encumbered with or by corresponding debt
794	794	obligation, less estimated funds necessary for the operation of the
795	795	district before the receipt of the first payment under Chapter 48 in
796	796	the succeeding school year.
797	797	SECTION 37. Sections 45.0011(a), (d), and (e), Education
798	798	Code, are amended to read as follows:
799	799	(a) This section applies only to an independent school
800	800	district that, at the time of the issuance of obligations and
801	801	execution of credit agreements under this section, has:
802	802	(1) at least 2,000 students in average enrollment
803	803	[daily attendance]; or
804	804	(2) a combined aggregate principal amount of at least
805	805	$50 million of outstanding bonds and voted but unissued bonds.
806	806	(d) A district may not issue bonds to which this section
807	807	applies in an amount greater than the greater of:
808	808	(1) 25 percent of the sum of:
809	809	(A) the aggregate principal amount of all
810	810	district debt payable from ad valorem taxes that is outstanding at
811	811	the time the bonds are issued; and
812	812	(B) the aggregate principal amount of all bonds
813	813	payable from ad valorem taxes that have been authorized but not
814	814	issued;
815	815	(2) $25 million, in a district that has at least 3,500
816	816	but not more than 15,000 students in average enrollment [daily
817	817	attendance]; or
818	818	(3) $50 million, in a district that has more than
819	819	15,000 students in average enrollment [daily attendance].
820	820	(e) In this section, average enrollment [daily attendance]
821	821	is determined in the manner provided by Section 48.005.
822	822	SECTION 38. Section 45.006(a), Education Code, is amended
823	823	to read as follows:
824	824	(a) This section applies only to a school district that:
825	825	(1) has an average enrollment [daily attendance] of
826	826	less than 10,000; and
827	827	(2) is located in whole or part in a municipality with
828	828	a population of less than 25,000 that is located in a county with a
829	829	population of 200,000 or more bordering another county with a
830	830	population of 2.8 million or more.
831	831	SECTION 39. Section 45.105(d), Education Code, is amended
832	832	to read as follows:
833	833	(d) An independent school district that has in its limits a
834	834	municipality with a population of 150,000 or more or that contains
835	835	at least 170 square miles, has $850 million or more assessed value
836	836	of taxable property on the most recent approved tax roll and has a
837	837	growth in average enrollment [daily attendance] of 11 percent or
838	838	more for each of the preceding five years as determined by the
839	839	agency may, in buying school sites or additions to school sites and
840	840	in building school buildings, issue and deliver negotiable or
841	841	nonnegotiable notes representing all or part of the cost to the
842	842	school district of the land or building. The district may secure
843	843	the notes by a vendor's lien or deed of trust lien against the land
844	844	or building. By resolution or order of the governing body made at
845	845	or before the delivery of the notes, the district may set aside and
846	846	appropriate as a trust fund, and the sole and only fund, for the
847	847	payment of the principal of and interest on the notes that part of
848	848	the local school funds, levied and collected by the school district
849	849	in that year or subsequent years, as the governing body determines.
850	850	The aggregate amount of local school funds set aside in or for any
851	851	subsequent year for the retirement of the notes may not exceed, in
852	852	any one subsequent year, 10 percent of the local school funds
853	853	collected during that year. The district may issue the notes only
854	854	if approved by majority vote of the qualified voters voting in an
855	855	election conducted in the manner provided by Section 45.003 for
856	856	approval of bonds.
857	857	SECTION 40. Section 46.003(a), Education Code, is amended
858	858	to read as follows:
859	859	(a) For each year, except as provided by Sections 46.005 and
860	860	46.006, a school district is guaranteed a specified amount per
861	861	student in state and local funds for each cent of tax effort, up to
862	862	the maximum rate under Subsection (b), to pay the principal of and
863	863	interest on eligible bonds issued to construct, acquire, renovate,
864	864	or improve an instructional facility. The amount of state support
865	865	is determined by the formula:
866	866	FYA = (FYL X AE [ADA] X BTR X 100) - (BTR X (DPV/100))
867	867	where:
868	868	"FYA" is the guaranteed facilities yield amount of state
869	869	funds allocated to the district for the year;
870	870	"FYL" is the dollar amount guaranteed level of state and
871	871	local funds per student per cent of tax effort, which is $35 or a
872	872	greater amount for any year provided by appropriation;
873	873	"AE" ["ADA"] is the greater of the number of students in
874	874	average enrollment [daily attendance], as determined under Section
875	875	48.005, in the district or 400;
876	876	"BTR" is the district's bond tax rate for the current year,
877	877	which is determined by dividing the amount budgeted by the district
878	878	for payment of eligible bonds by the quotient of the district's
879	879	taxable value of property as determined under Subchapter M, Chapter
880	880	403, Government Code, or, if applicable, Section 48.258, divided by
881	881	100; and
882	882	"DPV" is the district's taxable value of property as
883	883	determined under Subchapter M, Chapter 403, Government Code, or, if
884	884	applicable, Section 48.258.
885	885	SECTION 41. Section 46.005, Education Code, is amended to
886	886	read as follows:
887	887	Sec. 46.005. LIMITATION ON GUARANTEED AMOUNT. The
888	888	guaranteed amount of state and local funds for a new project that a
889	889	district may be awarded in any state fiscal biennium under Section
890	890	46.003 for a school district may not exceed the lesser of:
891	891	(1) the amount the actual debt service payments the
892	892	district makes in the biennium in which the bonds are issued; or
893	893	(2) the greater of:
894	894	(A) $100,000; or
895	895	(B) the product of the number of students in
896	896	average enrollment [daily attendance] in the district multiplied by
897	897	$250.
898	898	SECTION 42. Section 46.006(g), Education Code, is amended
899	899	to read as follows:
900	900	(g) In this section, "wealth per student" means a school
901	901	district's taxable value of property as determined under Subchapter
902	902	M, Chapter 403, Government Code, or, if applicable, Section 48.258,
903	903	divided by the district's average enrollment [daily attendance] as
904	904	determined under Section 48.005.
905	905	SECTION 43. Section 46.032(a), Education Code, is amended
906	906	to read as follows:
907	907	(a) Each school district is guaranteed a specified amount
908	908	per student in state and local funds for each cent of tax effort to
909	909	pay the principal of and interest on eligible bonds. The amount of
910	910	state support, subject only to the maximum amount under Section
911	911	46.034, is determined by the formula:
912	912	EDA = (EDGL X AE [ADA] X EDTR X 100) - (EDTR X (DPV/100))
913	913	where:
914	914	"EDA" is the amount of state funds to be allocated to the
915	915	district for assistance with existing debt;
916	916	"EDGL" is the dollar amount guaranteed level of state and
917	917	local funds per student per cent of tax effort, which is the lesser
918	918	of:
919	919	(1) $40 or a greater amount for any year provided by
920	920	appropriation; or
921	921	(2) the amount that would result in a total additional
922	922	amount of state funds under this subchapter for the current year
923	923	equal to $60 million in excess of the state funds to which school
924	924	districts would have been entitled under this section if the
925	925	guaranteed level amount were $35;
926	926	"AE" ["ADA"] is the number of students in average enrollment
927	927	[daily attendance], as determined under Section 48.005, in the
928	928	district;
929	929	"EDTR" is the existing debt tax rate of the district, which is
930	930	determined by dividing the amount budgeted by the district for
931	931	payment of eligible bonds by the quotient of the district's taxable
932	932	value of property as determined under Subchapter M, Chapter 403,
933	933	Government Code, or, if applicable, under Section 48.258, divided
934	934	by 100; and
935	935	"DPV" is the district's taxable value of property as
936	936	determined under Subchapter M, Chapter 403, Government Code, or, if
937	937	applicable, under Section 48.258.
938	938	SECTION 44. Sections 48.0051(a) and (b), Education Code,
939	939	are amended to read as follows:
940	940	(a) The [Subject to Subsection (a-1), the] commissioner
941	941	shall adjust the average enrollment [daily attendance] of a school
942	942	district or open-enrollment charter school under Section 48.005 in
943	943	the manner provided by Subsection (b) if the district or school:
944	944	(1) provides the minimum number of minutes of
945	945	operational and instructional time required under Section 25.081
946	946	and commissioner rules adopted under that section over at least 180
947	947	days of instruction; and
948	948	(2) offers an additional 30 days of half-day
949	949	instruction for students enrolled in prekindergarten through fifth
950	950	grade.
951	951	(b) For a school district or open-enrollment charter school
952	952	described by Subsection (a), the commissioner shall increase the
953	953	average enrollment [daily attendance] of the district or school
954	954	under Section 48.005 by the amount equal to one-sixth [that results
955	955	from the quotient] of the enrollment [sum of attendance] by
956	956	students described by Subsection (a)(2) in [for each of] the 30
957	957	additional instructional days of half-day instruction [that are
958	958	provided divided by 180].
959	959	SECTION 45. Section 48.006, Education Code, is amended to
960	960	read as follows:
961	961	Sec. 48.006. AVERAGE ENROLLMENT [DAILY ATTENDANCE] FOR
962	962	DISTRICTS IN DISASTER AREA. (a) The commissioner may adjust the
963	963	average enrollment [daily attendance] of a school district all or
964	964	part of which is located in an area declared a disaster area by the
965	965	governor under Chapter 418, Government Code, if the district
966	966	experiences a decline in average enrollment [daily attendance] that
967	967	is reasonably attributable to the impact of the disaster.
968	968	(b) The adjustment must be sufficient to ensure that the
969	969	district receives funding comparable to the funding that the
970	970	district would have received if the decline in average enrollment
971	971	[daily attendance] reasonably attributable to the impact of the
972	972	disaster had not occurred.
973	973	(c) The commissioner may make the adjustment under this
974	974	section for the two-year period following the date of the
975	975	governor's initial proclamation or executive order declaring the
976	976	state of disaster.
977	977	(d) Section 48.005(b)(2) does not apply to a district that
978	978	receives an adjustment under this section.
979	979	(e) A district that receives an adjustment under this
980	980	section may not receive any additional adjustment under Section
981	981	48.005(d) for the decline in average enrollment [daily attendance]
982	982	on which the adjustment under this section is based.
983	983	(f) For purposes of this title, a district's adjusted
984	984	average enrollment [daily attendance] under this section is
985	985	considered to be the district's average enrollment [daily
986	986	attendance] as determined under Section 48.005.
987	987	SECTION 46. Sections 48.010(a) and (b), Education Code, are
988	988	amended to read as follows:
989	989	(a) Not later than July 1 of each year, the commissioner
990	990	shall determine for each school district whether the estimated
991	991	amount of state and local funding per student in weighted average
992	992	enrollment [daily attendance] to be provided to the district under
993	993	the Foundation School Program for maintenance and operations for
994	994	the following school year is less than the amount provided to the
995	995	district for the 2010-2011 school year. If the amount estimated to
996	996	be provided is less, the commissioner shall certify the percentage
997	997	decrease in funding to be provided to the district.
998	998	(b) In making the determinations regarding funding levels
999	999	required by Subsection (a), the commissioner shall:
1000	1000	(1) make adjustments as necessary to reflect changes
1001	1001	in a school district's maintenance and operations tax rate;
1002	1002	(2) for a district required to reduce its local
1003	1003	revenue level under Section 48.257, base the determinations on the
1004	1004	district's net funding levels after deducting any amounts required
1005	1005	to be expended by the district to comply with Chapter 49; and
1006	1006	(3) determine a district's weighted average enrollment
1007	1007	[daily attendance] in accordance with this chapter as it existed on
1008	1008	January 1, 2011.
1009	1009	SECTION 47. Sections 48.051(a) and (c), Education Code, are
1010	1010	amended to read as follows:
1011	1011	(a) For each student in average enrollment [daily
1012	1012	attendance], not including the time students spend each day in
1013	1013	special education programs in an instructional arrangement other
1014	1014	than mainstream or career and technology education programs, for
1015	1015	which an additional allotment is made under Subchapter C, a
1016	1016	district is entitled to an allotment equal to the lesser of $6,160
1017	1017	or the amount that results from the following formula:
1018	1018	A = $6,160 X TR/MCR
1019	1019	where:
1020	1020	"A" is the allotment to which a district is entitled;
1021	1021	"TR" is the district's tier one maintenance and operations
1022	1022	tax rate, as provided by Section 45.0032; and
1023	1023	"MCR" is the district's maximum compressed tax rate, as
1024	1024	determined under Section 48.2551.
1025	1025	(c) During any school year for which the maximum amount of
1026	1026	the basic allotment provided under Subsection (a) or (b) is greater
1027	1027	than the maximum amount provided for the preceding school year, a
1028	1028	school district must use at least 30 percent of the amount, if the
1029	1029	amount is greater than zero, that equals the product of the average
1030	1030	enrollment [daily attendance] of the district multiplied by the
1031	1031	amount of the difference between the district's funding under this
1032	1032	chapter per student in average enrollment [daily attendance] for
1033	1033	the current school year and the preceding school year to provide
1034	1034	compensation increases to full-time district employees other than
1035	1035	administrators as follows:
1036	1036	(1) 75 percent must be used to increase the
1037	1037	compensation paid to classroom teachers, full-time librarians,
1038	1038	full-time school counselors certified under Subchapter B, Chapter
1039	1039	21, and full-time school nurses, prioritizing differentiated
1040	1040	compensation for classroom teachers with more than five years of
1041	1041	experience; and
1042	1042	(2) 25 percent may be used as determined by the
1043	1043	district to increase compensation paid to full-time district
1044	1044	employees.
1045	1045	SECTION 48. Sections 48.052(a) and (c), Education Code, are
1046	1046	amended to read as follows:
1047	1047	(a) Notwithstanding Section 48.051, a school district that
1048	1048	has fewer than 130 students in average enrollment [daily
1049	1049	attendance] shall be provided a basic allotment on the basis of 130
1050	1050	students in average enrollment [daily attendance] if it offers a
1051	1051	kindergarten through grade 12 program and has preceding or current
1052	1052	year's average enrollment [daily attendance] of at least 90
1053	1053	students or is 30 miles or more by bus route from the nearest high
1054	1054	school district. A district offering a kindergarten through grade 8
1055	1055	program whose preceding or current year's average enrollment [daily
1056	1056	attendance] was at least 50 students or which is 30 miles or more by
1057	1057	bus route from the nearest high school district shall be provided a
1058	1058	basic allotment on the basis of 75 students in average enrollment
1059	1059	[daily attendance]. An average enrollment [daily attendance] of 60
1060	1060	students shall be the basis of providing the basic allotment if a
1061	1061	district offers a kindergarten through grade 6 program and has
1062	1062	preceding or current year's average enrollment [daily attendance]
1063	1063	of at least 40 students or is 30 miles or more by bus route from the
1064	1064	nearest high school district.
1065	1065	(c) Notwithstanding Subsection (a) or Section 48.051, a
1066	1066	school district to which this subsection applies, as provided by
1067	1067	Subsection (b), that has fewer than 130 students in average
1068	1068	enrollment [daily attendance] shall be provided a basic allotment
1069	1069	on the basis of 130 students in average enrollment [daily
1070	1070	attendance] if it offers a kindergarten through grade four program
1071	1071	and has preceding or current year's average enrollment [daily
1072	1072	attendance] of at least 75 students or is 30 miles or more by bus
1073	1073	route from the nearest high school district.
1074	1074	SECTION 49. Section 48.101, Education Code, is amended to
1075	1075	read as follows:
1076	1076	Sec. 48.101. SMALL AND MID-SIZED DISTRICT ALLOTMENT. (a)
1077	1077	Small and mid-sized districts are entitled to an annual allotment
1078	1078	in accordance with this section. In this section:
1079	1079	(1) "AA" is the district's annual allotment per
1080	1080	student in average enrollment [daily attendance];
1081	1081	(2) "AE" ["ADA"] is the number of students in average
1082	1082	enrollment [daily attendance] for which the district is entitled to
1083	1083	an allotment under Section 48.051; and
1084	1084	(3) "BA" is the basic allotment determined under
1085	1085	Section 48.051.
1086	1086	(b) A school district that has fewer than 1,600 students in
1087	1087	average enrollment [daily attendance] is entitled to an annual
1088	1088	allotment for each student in average enrollment [daily attendance]
1089	1089	based on the following formula:
1090	1090	AA = ((1,600 - AE [ADA]) X .0004) X BA
1091	1091	(c) A school district that offers a kindergarten through
1092	1092	grade 12 program and has less than 5,000 students in average
1093	1093	enrollment [daily attendance] is entitled to an annual allotment
1094	1094	for each student in average enrollment [daily attendance] based on
1095	1095	the formula, of the following formulas, that results in the
1096	1096	greatest annual allotment:
1097	1097	(1) the formula in Subsection (b), if the district is
1098	1098	eligible for that formula; or
1099	1099	(2) AA = ((5,000 - AE [ADA]) X .000025) X BA.
1100	1100	(d) Instead of the allotment under Subsection (b) or (c)(1),
1101	1101	a school district that has fewer than 300 students in average
1102	1102	enrollment [daily attendance] and is the only school district
1103	1103	located in and operating in a county is entitled to an annual
1104	1104	allotment for each student in average enrollment [daily attendance]
1105	1105	based on the following formula:
1106	1106	AA = ((1,600 - AE [ADA]) X .00047) X BA
1107	1107	SECTION 50. Sections 48.102(a) and (j), Education Code, are
1108	1108	amended to read as follows:
1109	1109	(a) For each student in average enrollment [daily
1110	1110	attendance] in a special education program under Subchapter A,
1111	1111	Chapter 29, in a mainstream instructional arrangement, a school
1112	1112	district is entitled to an annual allotment equal to the basic
1113	1113	allotment, or, if applicable, the sum of the basic allotment and the
1114	1114	allotment under Section 48.101 to which the district is entitled,
1115	1115	multiplied by 1.15. For each full-time equivalent student in
1116	1116	average enrollment [daily attendance] in a special education
1117	1117	program under Subchapter A, Chapter 29, in an instructional
1118	1118	arrangement other than a mainstream instructional arrangement, a
1119	1119	district is entitled to an annual allotment equal to the basic
1120	1120	allotment, or, if applicable, the sum of the basic allotment and the
1121	1121	allotment under Section 48.101 to which the district is entitled,
1122	1122	multiplied by a weight determined according to instructional
1123	1123	arrangement as follows:
1124	1124	Homebound5.0
1125	1125	Hospital class3.0
1126	1126	Speech therapy5.0
1127	1127	Resource room3.0
1128	1128	Self-contained, mild and moderate,
1129	1129	regular campus3.0
1130	1130	Self-contained, severe, regular campus3.0
1131	1131	Off home campus2.7
1132	1132	Nonpublic day school1.7
1133	1133	Vocational adjustment class2.3
1134	1134	(j) A school district that provides an extended year program
1135	1135	required by federal law for special education students who may
1136	1136	regress is entitled to receive funds in an amount equal to 75
1137	1137	percent, or a lesser percentage determined by the commissioner, of
1138	1138	the basic allotment, or, if applicable, the sum of the basic
1139	1139	allotment and the allotment under Section 48.101 to which the
1140	1140	district is entitled for each full-time equivalent student in
1141	1141	average enrollment [daily attendance], multiplied by the amount
1142	1142	designated for the student's instructional arrangement under this
1143	1143	section[, for each day the program is provided divided by the number
1144	1144	of days in the minimum school year]. The total amount of state
1145	1145	funding for extended year services under this section may not
1146	1146	exceed $10 million per year. A school district may use funds
1147	1147	received under this section only in providing an extended year
1148	1148	program.
1149	1149	SECTION 51. Section 48.105(a), Education Code, is amended
1150	1150	to read as follows:
1151	1151	(a) For each student in average enrollment [daily
1152	1152	attendance] in a bilingual education or special language program
1153	1153	under Subchapter B, Chapter 29, a district is entitled to an annual
1154	1154	allotment equal to the basic allotment multiplied by:
1155	1155	(1) for an emergent bilingual student, as defined by
1156	1156	Section 29.052:
1157	1157	(A) 0.1; or
1158	1158	(B) 0.15 if the student is in a bilingual
1159	1159	education program using a dual language immersion/one-way or
1160	1160	two-way program model; and
1161	1161	(2) for a student not described by Subdivision (1),
1162	1162	0.05 if the student is in a bilingual education program using a dual
1163	1163	language immersion/two-way program model.
1164	1164	SECTION 52. Sections 48.106(a) and (a-1), Education Code,
1165	1165	are amended to read as follows:
1166	1166	(a) For each full-time equivalent student in average
1167	1167	enrollment [daily attendance] in an approved career and technology
1168	1168	education program in grades 7 through 12, a district is entitled to
1169	1169	an annual allotment equal to the basic allotment, or, if
1170	1170	applicable, the sum of the basic allotment and the allotment under
1171	1171	Section 48.101 to which the district is entitled, multiplied by:
1172	1172	(1) 1.1 for a full-time equivalent student in career
1173	1173	and technology education courses not in an approved program of
1174	1174	study;
1175	1175	(2) 1.28 for a full-time equivalent student in levels
1176	1176	one and two career and technology education courses in an approved
1177	1177	program of study, as identified by the agency; and
1178	1178	(3) 1.47 for a full-time equivalent student in levels
1179	1179	three and four career and technology education courses in an
1180	1180	approved program of study, as identified by the agency.
1181	1181	(a-1) In addition to the amounts under Subsection (a), for
1182	1182	each student in average enrollment [daily attendance], a district
1183	1183	is entitled to $50 for each of the following in which the student is
1184	1184	enrolled:
1185	1185	(1) a campus designated as a P-TECH school under
1186	1186	Section 29.556; or
1187	1187	(2) a campus that is a member of the New Tech Network
1188	1188	and that focuses on project-based learning and work-based
1189	1189	education.
1190	1190	SECTION 53. Section 48.107(a), Education Code, is amended
1191	1191	to read as follows:
1192	1192	(a) Except as provided by Subsection (b), for each student
1193	1193	in average enrollment [daily attendance] who is using a public
1194	1194	education grant under Subchapter G, Chapter 29, to attend school in
1195	1195	a district other than the district in which the student resides, the
1196	1196	district in which the student attends school is entitled to an
1197	1197	annual allotment equal to the basic allotment multiplied by a
1198	1198	weight of 0.1.
1199	1199	SECTION 54. Section 48.108(a), Education Code, is amended
1200	1200	to read as follows:
1201	1201	(a) For each student in average enrollment [daily
1202	1202	attendance] in kindergarten through third grade, a school district
1203	1203	is entitled to an annual allotment equal to the basic allotment
1204	1204	multiplied by 0.1 if the student is:
1205	1205	(1) educationally disadvantaged; or
1206	1206	(2) an emergent bilingual student, as defined by
1207	1207	Section 29.052, and is in a bilingual education or special language
1208	1208	program under Subchapter B, Chapter 29.
1209	1209	SECTION 55. Section 48.109(c), Education Code, is amended
1210	1210	to read as follows:
1211	1211	(c) Not more than five percent of a district's students in
1212	1212	average enrollment [daily attendance] are eligible for funding
1213	1213	under this section.
1214	1214	SECTION 56. Section 48.115(a), Education Code, is amended
1215	1215	to read as follows:
1216	1216	(a) Except as provided by Subsection (a-1), a school
1217	1217	district is entitled to an annual allotment equal to the sum of the
1218	1218	following amounts or a greater amount provided by appropriation:
1219	1219	(1) $10 for each student in average enrollment [daily
1220	1220	attendance], plus $1 for each student in average enrollment [daily
1221	1221	attendance] per every $50 by which the district's maximum basic
1222	1222	allotment under Section 48.051 exceeds $6,160, prorated as
1223	1223	necessary; and
1224	1224	(2) $15,000 per campus.
1225	1225	SECTION 57. Section 48.118(a), Education Code, is amended
1226	1226	to read as follows:
1227	1227	(a) For each full-time equivalent student in average
1228	1228	enrollment [daily attendance] in grades 9 through 12 in a college or
1229	1229	career pathway offered through a partnership under the Rural
1230	1230	Pathway Excellence Partnership (R-PEP) program under Section
1231	1231	29.912, a school district is entitled to an allotment equal to the
1232	1232	basic allotment, or, if applicable, the sum of the basic allotment
1233	1233	and the allotment under Section 48.101 to which the district is
1234	1234	entitled, multiplied by:
1235	1235	(1) 1.15 if the student is educationally
1236	1236	disadvantaged; or
1237	1237	(2) 1.11 if the student is not educationally
1238	1238	disadvantaged.
1239	1239	SECTION 58. Sections 48.152(d) and (e), Education Code, are
1240	1240	amended to read as follows:
1241	1241	(d) For the first school year in which students attend a new
1242	1242	instructional facility, a school district is entitled to an
1243	1243	allotment of $1,000 for each student in average enrollment [daily
1244	1244	attendance] at the facility. For the second school year in which
1245	1245	students attend that instructional facility, a school district is
1246	1246	entitled to an allotment of $1,000 for each additional student in
1247	1247	average enrollment [daily attendance] at the facility.
1248	1248	(e) For purposes of this section, the number of additional
1249	1249	students in average enrollment [daily attendance] at a facility is
1250	1250	the difference between the number of students in average enrollment
1251	1251	[daily attendance] in the current year at that facility and the
1252	1252	number of students in average enrollment [daily attendance] at that
1253	1253	facility in the preceding year.
1254	1254	SECTION 59. Section 48.153, Education Code, is amended to
1255	1255	read as follows:
1256	1256	Sec. 48.153. DROPOUT RECOVERY SCHOOL AND RESIDENTIAL
1257	1257	PLACEMENT FACILITY ALLOTMENT. A school district or open-enrollment
1258	1258	charter school is entitled to $275 for each student in average
1259	1259	enrollment [daily attendance] who:
1260	1260	(1) resides in a residential placement facility; or
1261	1261	(2) is at a district or school or a campus of the
1262	1262	district or school that is designated as a dropout recovery school
1263	1263	under Section 39.0548.
1264	1264	SECTION 60. Section 48.202(a), Education Code, is amended
1265	1265	to read as follows:
1266	1266	(a) Each school district is guaranteed a specified amount
1267	1267	per weighted student in state and local funds for each cent of tax
1268	1268	effort over that required for the district's local fund assignment
1269	1269	up to the maximum level specified in this subchapter. The amount of
1270	1270	state support, subject only to the maximum amount under Section
1271	1271	48.203, is determined by the formula:
1272	1272	GYA = (GL X WAE [WADA] X DTR X 100) - LR
1273	1273	where:
1274	1274	"GYA" is the guaranteed yield amount of state funds to be
1275	1275	allocated to the district;
1276	1276	"GL" is the dollar amount guaranteed level of state and local
1277	1277	funds per weighted student per cent of tax effort, which is an
1278	1278	amount described by Subsection (a-1) or a greater amount for any
1279	1279	year provided by appropriation;
1280	1280	"WAE" ["WADA"] is the number of students in weighted average
1281	1281	enrollment [daily attendance], which is calculated by dividing the
1282	1282	sum of the school district's allotments under Subchapters B and C by
1283	1283	the basic allotment for the applicable year;
1284	1284	"DTR" is the district enrichment tax rate of the school
1285	1285	district, which is determined by subtracting the amounts specified
1286	1286	by Subsection (b) from the total amount of maintenance and
1287	1287	operations taxes collected by the school district for the
1288	1288	applicable school year and dividing the difference by the quotient
1289	1289	of the district's taxable value of property as determined under
1290	1290	Subchapter M, Chapter 403, Government Code, or, if applicable,
1291	1291	under Section 48.258 or by the quotient of the value of "DPV" as
1292	1292	determined under Section 48.256(d) if that subsection applies to
1293	1293	the district, divided by 100; and
1294	1294	"LR" is the local revenue, which is determined by multiplying
1295	1295	"DTR" by the quotient of the district's taxable value of property as
1296	1296	determined under Subchapter M, Chapter 403, Government Code, or, if
1297	1297	applicable, under Section 48.258 or by the quotient of the value of
1298	1298	"DPV" as determined under Section 48.256(d) if that subsection
1299	1299	applies to the district, divided by 100.
1300	1300	SECTION 61. Section 48.252(b), Education Code, is amended
1301	1301	to read as follows:
1302	1302	(b) Notwithstanding any other provision of this chapter or
1303	1303	Chapter 49, a school district subject to this section is entitled to
1304	1304	receive for each student in average enrollment [daily attendance]
1305	1305	at the campus or program described by Subsection (a) an amount
1306	1306	equivalent to the difference, if the difference results in
1307	1307	increased funding, between:
1308	1308	(1) the amount described by Section 12.106; and
1309	1309	(2) the amount to which the district would be entitled
1310	1310	under this chapter.
1311	1311	SECTION 62. Section 48.2642(a), Education Code, is amended
1312	1312	to read as follows:
1313	1313	(a) Notwithstanding any other provision of this chapter,
1314	1314	the commissioner shall count toward a school district's or
1315	1315	open-enrollment charter school's average enrollment [daily
1316	1316	attendance] under Section 48.005 each student who graduates early
1317	1317	from high school in the district or school under the Texas First
1318	1318	Early High School Completion Program established under Section
1319	1319	28.0253 for the period in which the student is enrolled at an
1320	1320	eligible institution using state credit awarded under the Texas
1321	1321	First Scholarship Program established under Subchapter K-1,
1322	1322	Chapter 56, based on a 100 percent attendance rate.
1323	1323	SECTION 63. Section 48.273(a)(4), Education Code, is
1324	1324	amended to read as follows:
1325	1325	(4) "Wealth per student" means the taxable property
1326	1326	values reported by the comptroller to the commissioner under
1327	1327	Section 48.256 divided by the number of students in average
1328	1328	enrollment [daily attendance].
1329	1329	SECTION 64. Section 48.277(a), Education Code, is amended
1330	1330	to read as follows:
1331	1331	(a) A school district or open-enrollment charter school is
1332	1332	entitled to receive an annual allotment for each student in average
1333	1333	enrollment [daily attendance] in the amount equal to the
1334	1334	difference, if the difference is greater than zero, that results
1335	1335	from subtracting the total maintenance and operations revenue per
1336	1336	student in average enrollment [daily attendance] for the current
1337	1337	school year from the lesser of:
1338	1338	(1) 103 percent of the district's or school's total
1339	1339	maintenance and operations revenue per student in average
1340	1340	enrollment [daily attendance] for the 2019-2020 school year that
1341	1341	the district or school would have received under former Chapters 41
1342	1342	and 42, as those chapters existed on January 1, 2019; or
1343	1343	(2) 128 percent of the statewide average amount of
1344	1344	maintenance and operations revenue per student in average
1345	1345	enrollment [daily attendance] that would have been provided for the
1346	1346	2019-2020 school year under former Chapters 41 and 42, as those
1347	1347	chapters existed on January 1, 2019.
1348	1348	SECTION 65. Section 49.001(2), Education Code, is amended
1349	1349	to read as follows:
1350	1350	(2) "Weighted average enrollment [daily attendance]"
1351	1351	has the meaning assigned by Section 48.202.
1352	1352	SECTION 66. Section 49.002, Education Code, is amended to
1353	1353	read as follows:
1354	1354	Sec. 49.002. OPTIONS TO REDUCE LOCAL REVENUE LEVEL. A
1355	1355	district with a local revenue level in excess of entitlement may
1356	1356	take any combination of the following actions to reduce the
1357	1357	district's revenue level:
1358	1358	(1) consolidation with another district as provided by
1359	1359	Subchapter B;
1360	1360	(2) detachment of territory as provided by Subchapter
1361	1361	C;
1362	1362	(3) purchase of average enrollment [daily attendance]
1363	1363	credit as provided by Subchapter D;
1364	1364	(4) education of nonresident students as provided by
1365	1365	Subchapter E; or
1366	1366	(5) tax base consolidation with another district as
1367	1367	provided by Subchapter F.
1368	1368	SECTION 67. Section 49.003, Education Code, is amended to
1369	1369	read as follows:
1370	1370	Sec. 49.003. INCLUSION OF ENROLLMENT [ATTENDANCE] CREDIT
1371	1371	AND NONRESIDENTS IN WEIGHTED AVERAGE ENROLLMENT [DAILY
1372	1372	ATTENDANCE]. In determining whether a school district has a local
1373	1373	revenue level in excess of entitlement, the commissioner shall use:
1374	1374	(1) the district's final weighted average enrollment
1375	1375	[daily attendance]; and
1376	1376	(2) the amount of enrollment [attendance] credit a
1377	1377	district purchases under Subchapter D or the number of nonresident
1378	1378	students a district educates under Subchapter E for a school year.
1379	1379	SECTION 68. The heading to Subchapter D, Chapter 49,
1380	1380	Education Code, is amended to read as follows:
1381	1381	SUBCHAPTER D. PURCHASE OF ENROLLMENT [ATTENDANCE] CREDIT
1382	1382	SECTION 69. Section 49.151, Education Code, is amended to
1383	1383	read as follows:
1384	1384	Sec. 49.151. AGREEMENT. A school district with a local
1385	1385	revenue level in excess of entitlement may execute an agreement
1386	1386	with the commissioner to purchase enrollment [attendance] credit in
1387	1387	an amount sufficient, in combination with any other actions taken
1388	1388	under this chapter, to reduce the district's local revenue level to
1389	1389	a level that is equal to or less than the level established under
1390	1390	Section 48.257.
1391	1391	SECTION 70. Section 49.153(c), Education Code, is amended
1392	1392	to read as follows:
1393	1393	(c) The cost of enrollment [attendance] credit for a school
1394	1394	district is computed using the final tax collections of the
1395	1395	district.
1396	1396	SECTION 71. Section 49.156(b), Education Code, is amended
1397	1397	to read as follows:
1398	1398	(b) The ballot shall be printed to permit voting for or
1399	1399	against the proposition: "Authorizing the board of trustees of
1400	1400	________ School District to purchase enrollment [attendance]
1401	1401	credit from the state with local tax revenues."
1402	1402	SECTION 72. Section 49.157, Education Code, is amended to
1403	1403	read as follows:
1404	1404	Sec. 49.157. CREDIT FOR APPRAISAL COSTS. The total amount
1405	1405	required under Section 49.153 for a district to purchase enrollment
1406	1406	[attendance] credit under this subchapter for any school year is
1407	1407	reduced by an amount equal to the product of the district's total
1408	1408	costs under Section 6.06, Tax Code, for the appraisal district or
1409	1409	districts in which it participates multiplied by a percentage that
1410	1410	is computed by dividing the total amount required under Section
1411	1411	49.153 by the total amount of taxes imposed in the district for that
1412	1412	year less any amounts paid into a tax increment fund under Chapter
1413	1413	311, Tax Code.
1414	1414	SECTION 73. Section 49.158(a), Education Code, is amended
1415	1415	to read as follows:
1416	1416	(a) Sections 49.154 and 49.157 apply only to a district
1417	1417	that:
1418	1418	(1) executes an agreement to purchase enrollment
1419	1419	[attendance] credit necessary to reduce the district's local
1420	1420	revenue level to the level established under Section 48.257;
1421	1421	(2) executes an agreement to purchase enrollment
1422	1422	[attendance] credit and an agreement under Subchapter E to contract
1423	1423	for the education of nonresident students who transfer to and are
1424	1424	educated in the district but who are not charged tuition; or
1425	1425	(3) executes an agreement under Subchapter E to
1426	1426	contract for the education of nonresident students:
1427	1427	(A) to an extent that does not provide more than
1428	1428	10 percent of the reduction in local revenue required for the
1429	1429	district to achieve a local revenue level that is equal to or less
1430	1430	than the level established under Section 48.257; and
1431	1431	(B) under which all revenue paid by the district
1432	1432	to other districts, in excess of the reduction in state aid that
1433	1433	results from counting the weighted average enrollment [daily
1434	1434	attendance] of the students served in the contracting district, is
1435	1435	required to be used for funding a consortium of at least three
1436	1436	districts in a county with a population of less than 40,000 that is
1437	1437	formed to support a technology initiative.
1438	1438	SECTION 74. Section 49.201, Education Code, is amended to
1439	1439	read as follows:
1440	1440	Sec. 49.201. AGREEMENT. The board of trustees of a
1441	1441	district with a local revenue level in excess of entitlement may
1442	1442	execute an agreement to educate the students of another district in
1443	1443	a number that, when the weighted average enrollment [daily
1444	1444	attendance] of the students served is added to the weighted average
1445	1445	enrollment [daily attendance] of the contracting district, is
1446	1446	sufficient, in combination with any other actions taken under this
1447	1447	chapter, to reduce the district's local revenue level to a level
1448	1448	that is equal to or less than the level established under Section
1449	1449	48.257. The agreement is not effective unless the commissioner
1450	1450	certifies that the transfer of weighted average enrollment [daily
1451	1451	attendance] will not result in any of the contracting districts'
1452	1452	local revenue level being greater than the level established under
1453	1453	Section 48.257 and that the agreement requires an expenditure per
1454	1454	student in weighted average enrollment [daily attendance] that is
1455	1455	at least equal to the amount per student in weighted average
1456	1456	enrollment [daily attendance] required under Section 49.153.
1457	1457	SECTION 75. Section 49.203, Education Code, is amended to
1458	1458	read as follows:
1459	1459	Sec. 49.203. WEIGHTED AVERAGE ENROLLMENT [WADA] COUNT. For
1460	1460	purposes of Chapter 48, students served under an agreement under
1461	1461	this subchapter are counted only in the weighted average enrollment
1462	1462	[daily attendance] of the district providing the services, except
1463	1463	that students served under an agreement authorized by Section
1464	1464	49.205 are counted in a manner determined by the commissioner.
1465	1465	SECTION 76. Section 49.205(b), Education Code, is amended
1466	1466	to read as follows:
1467	1467	(b) The agreement is not effective unless the commissioner
1468	1468	certifies that:
1469	1469	(1) implementation of the agreement will not result in
1470	1470	any of the affected districts' local revenue level being greater
1471	1471	than the level established under Section 48.257; and
1472	1472	(2) the agreement requires the district with a local
1473	1473	revenue level in excess of entitlement to make expenditures
1474	1474	benefiting students from other districts in an amount at least
1475	1475	equal to the amount that would be required for the district to
1476	1476	purchase enrollment [attendance] credit under Subchapter D
1477	1477	necessary, in combination with any other actions taken under this
1478	1478	chapter other than an action under this section, to reduce the
1479	1479	district's local revenue level to a level that is equal to or less
1480	1480	than the level established under Section 48.257.
1481	1481	SECTION 77. Section 49.257(b), Education Code, is amended
1482	1482	to read as follows:
1483	1483	(b) Each component district shall bear a share of the costs
1484	1484	of assessing and collecting taxes in proportion to the component
1485	1485	district's share of weighted average enrollment [daily attendance]
1486	1486	in the consolidated taxing district.
1487	1487	SECTION 78. Section 49.258, Education Code, is amended to
1488	1488	read as follows:
1489	1489	Sec. 49.258. REVENUE DISTRIBUTION. The consolidated taxing
1490	1490	district shall distribute maintenance tax revenue to the component
1491	1491	districts on the basis of the number of students in weighted average
1492	1492	enrollment [daily attendance] in the component districts.
1493	1493	SECTION 79. Sections 49.305(c) and (d), Education Code, are
1494	1494	amended to read as follows:
1495	1495	(c) If the detachment of whole parcels or items of property
1496	1496	as provided by Subsection (a) would result in a district's local
1497	1497	revenue level that is less than the level established under Section
1498	1498	48.257 by more than the product of $10,000 multiplied by weighted
1499	1499	average enrollment [daily attendance], the commissioner may not
1500	1500	detach the last parcel or item of property and shall detach the next
1501	1501	one or more parcels or items of property in descending order of
1502	1502	taxable value that would result in the school district having a
1503	1503	local revenue level that is equal to or less than the level
1504	1504	established under Section 48.257 by not more than the product of
1505	1505	$10,000 multiplied by weighted average enrollment [daily
1506	1506	attendance].
1507	1507	(d) Notwithstanding Subsections (a), (b), and (c), the
1508	1508	commissioner may detach only a portion of a parcel or item of
1509	1509	property if:
1510	1510	(1) it is not possible under this subchapter to reduce
1511	1511	the district's local revenue level to a level that is equal to or
1512	1512	less than the level established under Section 48.257 unless some or
1513	1513	all of the parcel or item of property is detached and the detachment
1514	1514	of the whole parcel or item would result in the district from which
1515	1515	it is detached having a local revenue level that is less than the
1516	1516	level established under Section 48.257 by more than the product of
1517	1517	$10,000 multiplied by weighted average enrollment [daily
1518	1518	attendance]; or
1519	1519	(2) the commissioner determines that a partial
1520	1520	detachment of that parcel or item of property is preferable to the
1521	1521	detachment of one or more other parcels or items having a lower
1522	1522	taxable value in order to minimize the number of parcels or items of
1523	1523	property to be detached consistent with the purposes of this
1524	1524	chapter.
1525	1525	SECTION 80. Section 49.306(i), Education Code, is amended
1526	1526	to read as follows:
1527	1527	(i) The commissioner may order the annexation of a portion
1528	1528	of a parcel or item of property, including a portion of property
1529	1529	treated as a whole parcel or item under Subsection (h), if:
1530	1530	(1) the annexation of the whole parcel or item would
1531	1531	result in the district eligible to receive it in the appropriate
1532	1532	priority order provided by this section having a local revenue
1533	1533	level greater than the amount by which the product of $10,000
1534	1534	multiplied by weighted average enrollment [daily attendance]
1535	1535	exceeds the taxable value of property necessary to generate
1536	1536	maintenance and operations tax revenue in the amount equal to the
1537	1537	district's entitlement under Section 48.202(a-1)(2); or
1538	1538	(2) the commissioner determines that annexation of
1539	1539	portions of the parcel or item would reduce disparities in district
1540	1540	taxable values of property necessary to generate maintenance and
1541	1541	operations tax revenue in the amount equal to a district's
1542	1542	entitlement under Section 48.202(a-1)(2) more efficiently than
1543	1543	would be possible if the parcel or item were annexed as a whole.
1544	1544	SECTION 81. Section 49.311, Education Code, is amended to
1545	1545	read as follows:
1546	1546	Sec. 49.311. STUDENT ATTENDANCE. A student who is a
1547	1547	resident of real property detached from a school district may
1548	1548	choose to attend school in that district or in the district to which
1549	1549	the property is annexed. For purposes of determining average
1550	1550	enrollment [daily attendance] under Section 48.005, the student
1551	1551	shall be counted in the district to which the property is annexed.
1552	1552	If the student chooses to attend school in the district from which
1553	1553	the property is detached, the state shall withhold any foundation
1554	1554	school funds from the district to which the property is annexed and
1555	1555	shall allocate to the district in which the student is attending
1556	1556	school those funds and the amount of funds equal to the difference
1557	1557	between the state funds the district is receiving for the student
1558	1558	and the district's cost in educating the student.
1559	1559	SECTION 82. Section 49.354(e), Education Code, is amended
1560	1560	to read as follows:
1561	1561	(e) A restored district's proportionate share of fund
1562	1562	balances, personal property, or indebtedness is equal to the
1563	1563	proportion that the number of students in average enrollment [daily
1564	1564	attendance] in the restored district bears to the number of
1565	1565	students in average enrollment [daily attendance] in the
1566	1566	consolidated district.
1567	1567	SECTION 83. Section 403.104(d), Government Code, is amended
1568	1568	to read as follows:
1569	1569	(d) The proportionate share of an independent school
1570	1570	district is determined by multiplying the total amount of the
1571	1571	payment available for distribution to school districts by the ratio
1572	1572	that the average number of [daily attendance for] students who
1573	1573	reside in the county and are enrolled in [who attend] that school
1574	1574	district bears to the average number of [daily attendance for] all
1575	1575	students who reside in the county and are enrolled in [who attend]
1576	1576	any independent school district. However, if there are fewer than
1577	1577	10 independent school districts located in whole or part in the
1578	1578	county and if an independent school district would receive under
1579	1579	this formula less than 10 percent of the total payment available for
1580	1580	distribution to independent school districts, the school
1581	1581	district's share shall be increased to 10 percent of the total
1582	1582	payment and the shares of the school districts that would receive
1583	1583	more than 10 percent under the formula shall be reduced
1584	1584	proportionately, but not to an amount less than 10 percent of the
1585	1585	total payment. [Each independent school district shall develop a
1586	1586	reasonable method for determining the average daily attendance for
1587	1587	students who reside in the county and who attend the school
1588	1588	district.]
1589	1589	SECTION 84. Section 1371.001(4), Government Code, is
1590	1590	amended to read as follows:
1591	1591	(4) "Issuer" means:
1592	1592	(A) a home-rule municipality that:
1593	1593	(i) adopted its charter under Section 5,
1594	1594	Article XI, Texas Constitution;
1595	1595	(ii) has a population of 50,000 or more; and
1596	1596	(iii) has outstanding long-term
1597	1597	indebtedness that is rated by a nationally recognized rating agency
1598	1598	for municipal securities in one of the four highest rating
1599	1599	categories for a long-term obligation;
1600	1600	(B) a conservation and reclamation district
1601	1601	created and organized as a river authority under Section 52,
1602	1602	Article III, or Section 59, Article XVI, Texas Constitution;
1603	1603	(C) a joint powers agency organized and operating
1604	1604	under Chapter 163, Utilities Code;
1605	1605	(D) a metropolitan rapid transit authority,
1606	1606	regional transportation authority, or coordinated county
1607	1607	transportation authority created, organized, or operating under
1608	1608	Chapter 451, 452, or 460, Transportation Code;
1609	1609	(E) a conservation and reclamation district
1610	1610	organized or operating as a navigation district under Section 52,
1611	1611	Article III, or Section 59, Article XVI, Texas Constitution;
1612	1612	(F) a district organized or operating under
1613	1613	Section 59, Article XVI, Texas Constitution, that has all or part of
1614	1614	two or more municipalities within its boundaries;
1615	1615	(G) a state agency, including a state institution
1616	1616	of higher education;
1617	1617	(H) a hospital authority created or operating
1618	1618	under Chapter 262 or 264, Health and Safety Code, in a county that:
1619	1619	(i) has a population of more than 3.3
1620	1620	million; or
1621	1621	(ii) is included, in whole or in part, in a
1622	1622	standard metropolitan statistical area of this state that includes
1623	1623	a county with a population of more than 2.5 million;
1624	1624	(I) a hospital district in a county that has a
1625	1625	population of more than 2.5 million;
1626	1626	(J) a nonprofit corporation organized to
1627	1627	exercise the powers of a higher education loan authority under
1628	1628	Section 53B.47(e), Education Code;
1629	1629	(K) a county:
1630	1630	(i) that has a population of more than 3.3
1631	1631	million; or
1632	1632	(ii) that, on the date of issuance of
1633	1633	obligations under this chapter, has authorized, outstanding, or any
1634	1634	combination of authorized and outstanding, indebtedness of at least
1635	1635	$100 million secured by and payable from the county's ad valorem
1636	1636	taxes and the authorized long-term indebtedness of which is rated
1637	1637	by a nationally recognized rating agency of securities issued by
1638	1638	local governments in one of the four highest rating categories for a
1639	1639	long-term obligation;
1640	1640	(L) an independent school district that has an
1641	1641	average enrollment [daily attendance] of 50,000 or more as
1642	1642	determined under Section 48.005, Education Code;
1643	1643	(M) a municipality or county operating under
1644	1644	Chapter 334, Local Government Code;
1645	1645	(N) a district created under Chapter 335, Local
1646	1646	Government Code;
1647	1647	(O) a junior college district that has a total
1648	1648	headcount enrollment of 40,000 or more based on enrollment in the
1649	1649	most recent regular semester; or
1650	1650	(P) an issuer, as defined by Section 1201.002,
1651	1651	that has:
1652	1652	(i) a principal amount of at least $100
1653	1653	million in outstanding long-term indebtedness, in long-term
1654	1654	indebtedness proposed to be issued, or in a combination of
1655	1655	outstanding or proposed long-term indebtedness; and
1656	1656	(ii) some amount of long-term indebtedness
1657	1657	outstanding or proposed to be issued that is rated in one of the
1658	1658	four highest rating categories for long-term debt instruments by a
1659	1659	nationally recognized rating agency for municipal securities,
1660	1660	without regard to the effect of any credit agreement or other form
1661	1661	of credit enhancement entered into in connection with the
1662	1662	obligation.
1663	1663	SECTION 85. Section 1431.001(3), Government Code, is
1664	1664	amended to read as follows:
1665	1665	(3) "Eligible school district" means an independent
1666	1666	school district that has an average enrollment [daily attendance]
1667	1667	of 190,000 or more as determined under Section 48.005, Education
1668	1668	Code.
1669	1669	SECTION 86. Section 325.011(a), Local Government Code, is
1670	1670	amended to read as follows:
1671	1671	(a) The district is governed by a board of directors
1672	1672	composed of five members, with two directors appointed by the
1673	1673	commissioners court of the county, two directors appointed by the
1674	1674	governing body of the municipality having the largest population in
1675	1675	the county, and one director appointed by the governing body of the
1676	1676	school district with the largest number of students in average
1677	1677	enrollment [daily attendance] in the county. The board shall
1678	1678	manage the district and administer this chapter.
1679	1679	SECTION 87. Section 1, Article 2688d, Vernon's Texas Civil
1680	1680	Statutes, is amended to read as follows:
1681	1681	Section 1. In all counties of the State where, according to
1682	1682	the preceding annual statistical report of the schools said county
1683	1683	has not more than four (4) school districts, with one (1) of such
1684	1684	districts comprising more than half of the county and having more
1685	1685	than two thousand (2,000) pupils in average enrollment [daily
1686	1686	attendance] in the one (1) district alone, and such district having
1687	1687	an assessed valuation of more than Twenty Million Dollars
1688	1688	($20,000,000) and where there is only one (1) common school
1689	1689	district in such county with an average enrollment [daily
1690	1690	attendance] of less than sixteen (16), the office of county
1691	1691	superintendent is hereby abolished, to be effective at the end of
1692	1692	the term of the incumbent county superintendent, as is now provided
1693	1693	by law.
1694	1694	SECTION 88. The following provisions of the Education Code
1695	1695	are repealed:
1696	1696	(1) Section 29.0822(d-1); and
1697	1697	(2) Section 48.007.
1698	1698	SECTION 89. This Act takes effect September 1, 2025.