Texas 2025 - 89th Regular

Texas Senate Bill SB233 Compare Versions

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1	1	89R4155 KJE-D
2	2	By: Johnson S.B. No. 233
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the public school finance system.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 7.062(a), Education Code, is amended to
12	12	read as follows:
13	13	(a) In this section, "wealth per student" means a school
14	14	district's taxable value of property as determined under Subchapter
15	15	M, Chapter 403, Government Code, or, if applicable, Section 48.258,
16	16	divided by the district's average enrollment [daily attendance] as
17	17	determined under Section 48.005.
18	18	SECTION 2. Section 11.052(f), Education Code, is amended to
19	19	read as follows:
20	20	(f) If single-member trustee districts are adopted or
21	21	approved as provided by this section, the board shall divide the
22	22	school district into the appropriate number of trustee districts,
23	23	based on the number of members of the board that are to be elected
24	24	from single-member trustee districts, and shall number each trustee
25	25	district. The trustee districts must be compact and contiguous and
26	26	must be as nearly as practicable of equal population. In a district
27	27	with 150,000 or more students in average enrollment [daily
28	28	attendance], the boundary of a trustee district may not cross a
29	29	county election precinct boundary except at a point at which the
30	30	boundary of the school district crosses the county election
31	31	precinct boundary. Trustee districts must be drawn not later than
32	32	the 90th day before the date of the first election of trustees from
33	33	those districts.
34	34	SECTION 3. Sections 12.106(a), (a-2), and (d), Education
35	35	Code, are amended to read as follows:
36	36	(a) A charter holder is entitled to receive for the
37	37	open-enrollment charter school funding under Chapter 48 equal to
38	38	the amount of funding per student in weighted average enrollment
39	39	[daily attendance], excluding the adjustment under Section 48.052,
40	40	the funding under Sections 48.101, 48.110, 48.111, and 48.112, and
41	41	enrichment funding under Section 48.202(a), to which the charter
42	42	holder would be entitled for the school under Chapter 48 if the
43	43	school were a school district without a tier one local share for
44	44	purposes of Section 48.266.
45	45	(a-2) In addition to the funding provided by Subsection (a),
46	46	a charter holder is entitled to receive for the open-enrollment
47	47	charter school an allotment per student in average enrollment
48	48	[daily attendance] in an amount equal to the difference between:
49	49	(1) the product of:
50	50	(A) the quotient of:
51	51	(i) the total amount of funding provided to
52	52	eligible school districts under Section 48.101(b) or (c); and
53	53	(ii) the total number of students in
54	54	average enrollment [daily attendance] in school districts that
55	55	receive an allotment under Section 48.101(b) or (c); and
56	56	(B) the sum of one and the quotient of:
57	57	(i) the total number of students in average
58	58	enrollment [daily attendance] in school districts that receive an
59	59	allotment under Section 48.101(b) or (c); and
60	60	(ii) the total number of students in
61	61	average enrollment [daily attendance] in school districts
62	62	statewide; and
63	63	(2) $125.
64	64	(d) Subject to Subsection (e), in addition to other amounts
65	65	provided by this section, a charter holder is entitled to receive,
66	66	for the open-enrollment charter school, funding per student in
67	67	average enrollment [daily attendance] in an amount equal to the
68	68	guaranteed level of state and local funds per student per cent of
69	69	tax effort under Section 46.032(a) multiplied by the lesser of:
70	70	(1) the state average interest and sinking fund tax
71	71	rate imposed by school districts for the current year; or
72	72	(2) a rate that would result in a total amount to which
73	73	charter schools are entitled under this subsection for the current
74	74	year equal to $60 million.
75	75	SECTION 4. Sections 12.263(a), (b), and (c), Education
76	76	Code, are amended to read as follows:
77	77	(a) Except as otherwise provided by this section, funding
78	78	for an adult education program operated under a charter granted
79	79	under this subchapter is an amount per participant through the
80	80	Foundation School Program equal to the amount of state funding per
81	81	student in weighted average enrollment [daily attendance] that
82	82	would be allocated under the Foundation School Program for the
83	83	student's enrollment [attendance] at an open-enrollment charter
84	84	school in accordance with Section 12.106.
85	85	(b) For purposes of determining the average enrollment
86	86	[daily attendance] of an adult education program operated under a
87	87	charter granted under this subchapter, a student is considered to
88	88	be in average enrollment [daily attendance, with a 100 percent
89	89	attendance rate,] for:
90	90	(1) all of the instructional days of the school year,
91	91	if the student is enrolled for at least 75 percent of the school
92	92	year;
93	93	(2) half of the instructional days of the school year,
94	94	if the student is enrolled for at least 50 percent but less than 75
95	95	percent of the school year;
96	96	(3) a quarter of the instructional days of the school
97	97	year, if the student is enrolled for at least 25 percent but less
98	98	than 50 percent of the school year; or
99	99	(4) one-tenth of the instructional days of the school
100	100	year, if the student is enrolled for at least 10 percent but less
101	101	than 25 percent of the school year.
102	102	(c) A student enrolled in an adult education program
103	103	operated under a charter granted under this subchapter for less
104	104	than 10 percent of a school year may not be counted toward the adult
105	105	education program's average enrollment [daily attendance] for that
106	106	school year.
107	107	SECTION 5. Section 13.051(c), Education Code, is amended to
108	108	read as follows:
109	109	(c) Territory that does not have residents may be detached
110	110	from a school district and annexed to another school district if:
111	111	(1) the total taxable value of the property in the
112	112	territory according to the most recent certified appraisal roll for
113	113	each school district is not greater than:
114	114	(A) five percent of the district's taxable value
115	115	of all property in that district as determined under Subchapter M,
116	116	Chapter 403, Government Code; and
117	117	(B) $5,000 property value per student in average
118	118	enrollment [daily attendance] as determined under Section 48.005;
119	119	and
120	120	(2) the school district from which the property will
121	121	be detached does not own any real property located in the territory.
122	122	SECTION 6. Section 13.102, Education Code, is amended to
123	123	read as follows:
124	124	Sec. 13.102. MINIMUM AREA AND ENROLLMENT [ATTENDANCE]
125	125	REQUIREMENTS. A new district may not be created with an area of
126	126	less than nine square miles or fewer than 8,000 students in average
127	127	enrollment [daily attendance], and a district may not be reduced to
128	128	an area of less than nine square miles or fewer than 8,000 students
129	129	in average enrollment [daily attendance].
130	130	SECTION 7. Section 13.283, Education Code, is amended to
131	131	read as follows:
132	132	Sec. 13.283. PAYMENTS REDUCED. The incentive aid payments
133	133	shall be reduced in direct proportion to any reduction in the
134	134	average enrollment [daily attendance] as determined under Section
135	135	48.005 of the reorganized school district for the preceding year.
136	136	SECTION 8. Section 19.009(d-2), Education Code, is amended
137	137	to read as follows:
138	138	(d-2) Beginning with the 2009-2010 school year, the
139	139	district shall increase the monthly salary of each classroom
140	140	teacher, full-time speech pathologist, full-time librarian,
141	141	full-time school counselor certified under Subchapter B, Chapter
142	142	21, and full-time school nurse employed by the district by the
143	143	greater of:
144	144	(1) $80; or
145	145	(2) the maximum uniform amount that, when combined
146	146	with any resulting increases in the amount of contributions made by
147	147	the district for social security coverage for the specified
148	148	employees or by the district on behalf of the specified employees
149	149	under Section 825.405, Government Code, may be provided using an
150	150	amount equal to the product of $60 multiplied by the number of
151	151	students in weighted average enrollment [daily attendance] in the
152	152	district during the 2009-2010 school year.
153	153	SECTION 9. Section 25.038, Education Code, is amended to
154	154	read as follows:
155	155	Sec. 25.038. TUITION FEE FOR TRANSFER STUDENTS. The
156	156	receiving school district may charge a tuition fee to the extent
157	157	that the district's actual expenditure per student in average
158	158	enrollment [daily attendance], as determined by its board of
159	159	trustees, exceeds the sum the district benefits from state aid
160	160	sources as provided by Section 25.037. However, unless a tuition
161	161	fee is prescribed and set out in a transfer agreement before its
162	162	execution by the parties, an increase in tuition charge may not be
163	163	made for the year of that transfer that exceeds the tuition charge,
164	164	if any, of the preceding school year.
165	165	SECTION 10. Section 25.045(c), Education Code, is amended
166	166	to read as follows:
167	167	(c) A student who transfers to another school district under
168	168	this section may not be charged tuition. The student is included in
169	169	the average enrollment [daily attendance] of the district in which
170	170	the student attends school.
171	171	SECTION 11. Sections 25.081(e) and (f), Education Code, are
172	172	amended to read as follows:
173	173	(e) A school district or education program is exempt from
174	174	the minimum minutes of operation requirement if the district's or
175	175	program's average enrollment [daily attendance] is calculated
176	176	under Section 48.005(j).
177	177	(f) The commissioner may proportionally reduce the amount
178	178	of funding a district receives under Chapter 46, 48, or 49 and the
179	179	average enrollment [daily attendance] calculation for the district
180	180	if the district operates on a calendar that provides fewer minutes
181	181	of operation than required under Subsection (a).
182	182	SECTION 12. Section 25.087(d), Education Code, is amended
183	183	to read as follows:
184	184	(d) A student whose absence is excused under Subsection (b),
185	185	(b-1), (b-2), (b-4), (b-5), (b-7), (b-8), or (c) may not be
186	186	penalized for that absence and shall be counted as if the student
187	187	attended school for purposes of funding under Chapter 48
188	188	[calculating the average daily attendance of students in the school
189	189	district]. A student whose absence is excused under Subsection (b),
190	190	(b-1), (b-2), (b-4), (b-5), (b-7), (b-8), or (c) shall be allowed a
191	191	reasonable time to make up school work missed on those days. If the
192	192	student satisfactorily completes the school work, the day of
193	193	absence shall be counted as a day of compulsory attendance.
194	194	SECTION 13. Section 25.111, Education Code, is amended to
195	195	read as follows:
196	196	Sec. 25.111. STUDENT/TEACHER RATIOS. Except as provided by
197	197	Section 25.112, each school district must employ a sufficient
198	198	number of teachers certified under Subchapter B, Chapter 21, to
199	199	maintain an average ratio of not less than one teacher for each 20
200	200	students in average enrollment [daily attendance].
201	201	SECTION 14. Sections 25.112(a) and (b), Education Code, are
202	202	amended to read as follows:
203	203	(a) Except as otherwise authorized by this section, a school
204	204	district may not enroll more than 22 students in a prekindergarten,
205	205	kindergarten, first, second, third, or fourth grade class. That
206	206	limitation does not apply during:
207	207	(1) any 12-week period of the school year selected by
208	208	the district, in the case of a district whose average enrollment
209	209	[daily attendance] is adjusted under Section 48.005(c); or
210	210	(2) the last 12 weeks of any school year in the case of
211	211	any other district.
212	212	(b) Not later than the 30th day after the first day of the
213	213	12-week period for which a district whose average enrollment [daily
214	214	attendance] is adjusted under Section 48.005(c) is claiming an
215	215	exemption under Subsection (a), the district shall notify the
216	216	commissioner in writing that the district is claiming an exemption
217	217	for the period stated in the notice.
218	218	SECTION 15. Section 29.008(b), Education Code, is amended
219	219	to read as follows:
220	220	(b) Except as provided by Subsection (c), costs of an
221	221	approved contract for residential placement may be paid from a
222	222	combination of federal, state, and local funds. The local share of
223	223	the total contract cost for each student is that portion of the
224	224	local tax effort that exceeds the district's local fund assignment
225	225	under Section 48.256, divided by the average enrollment [daily
226	226	attendance] in the district. If the contract involves a private
227	227	facility, the state share of the total contract cost is that amount
228	228	remaining after subtracting the local share. If the contract
229	229	involves a public facility, the state share is that amount
230	230	remaining after subtracting the local share from the portion of the
231	231	contract that involves the costs of instructional and related
232	232	services. For purposes of this subsection, "local tax effort"
233	233	means the total amount of money generated by taxes imposed for debt
234	234	service and maintenance and operation less any amounts paid into a
235	235	tax increment fund under Chapter 311, Tax Code.
236	236	SECTION 16. Section 29.014(b), Education Code, is amended
237	237	to read as follows:
238	238	(b) A school district to which this section applies may
239	239	operate an extended year program for a period not to exceed 45 days.
240	240	[The district's average daily attendance shall be computed for the
241	241	regular school year plus the extended year.]
242	242	SECTION 17. Section 29.081(f), Education Code, is amended
243	243	to read as follows:
244	244	(f) The commissioner shall include a student who
245	245	successfully completes a course offered through a program under
246	246	Subsection (e) in the computation of the district's or school's
247	247	average enrollment [daily attendance] for funding purposes. [For a
248	248	student who successfully completes a remote course offered through
249	249	the program, the commissioner shall include the student in the
250	250	computation of the district's or school's average daily attendance
251	251	with an attendance rate equal to:
252	252	[(1) the district's or school's average attendance
253	253	rate for students successfully completing a course offered in
254	254	person under the program; or
255	255	[(2) if the district or school does not offer courses
256	256	in person under the program, the statewide average attendance rate
257	257	for students successfully completing a course offered in person
258	258	under a program under Subsection (e).]
259	259	SECTION 18. Section 29.0822(d), Education Code, is amended
260	260	to read as follows:
261	261	(d) The commissioner may adopt rules for the administration
262	262	of this section, including rules establishing application
263	263	requirements. [Subject to Subsection (d-1), the commissioner shall
264	264	calculate average daily attendance for students served under this
265	265	section. The commissioner shall allow accumulations of hours of
266	266	instruction for students whose schedule would not otherwise allow
267	267	full state funding. Funding under this subsection shall be
268	268	determined based on the number of instructional days in the school
269	269	district calendar and a seven-hour school day, but attendance may
270	270	be cumulated over a school year, including any summer or vacation
271	271	session. The attendance of students who accumulate less than the
272	272	number of attendance hours required under this subsection shall be
273	273	proportionately reduced for funding purposes. The commissioner
274	274	may:
275	275	[(1) set maximum funding amounts for an individual
276	276	course under this section; and
277	277	[(2) limit funding for the attendance of a student
278	278	described by Subsection (a)(3) in a course under this section to
279	279	funding only for the attendance necessary for the student to earn
280	280	class credit that, as a result of attendance requirements under
281	281	Section 25.092, the student would not otherwise be able to receive
282	282	without retaking the class.]
283	283	SECTION 19. Section 29.184(b), Education Code, is amended
284	284	to read as follows:
285	285	(b) A student who attends career and technology classes at
286	286	another school under a contract authorized by Subsection (a) is
287	287	included in the average enrollment [daily attendance] of the
288	288	district in which the student is regularly enrolled.
289	289	SECTION 20. Sections 29.203(a) and (c), Education Code, are
290	290	amended to read as follows:
291	291	(a) A student who under this subchapter uses a public
292	292	education grant to attend a public school in a school district other
293	293	than the district in which the student resides is included in the
294	294	average enrollment [daily attendance] of the district in which the
295	295	student attends school.
296	296	(c) A school district is entitled to additional facilities
297	297	assistance under Section 48.301 if the district agrees to:
298	298	(1) accept a number of students using public education
299	299	grants that is at least one percent of the district's average
300	300	enrollment [daily attendance] for the preceding school year; and
301	301	(2) provide services to each student until the student
302	302	either voluntarily decides to attend a school in a different
303	303	district or graduates from high school.
304	304	SECTION 21. Section 29.403(b), Education Code, is amended
305	305	to read as follows:
306	306	(b) A student who is enrolled in a program under this
307	307	subchapter is included in determining the average enrollment [daily
308	308	attendance] under Section 48.005 of the partnering school district.
309	309	SECTION 22. Section 29.457(a), Education Code, is amended
310	310	to read as follows:
311	311	(a) In addition to other funding to which a school district
312	312	is entitled under this code, each district in which alleged
313	313	offender residents attend school is entitled to an annual allotment
314	314	of $5,100 for each resident in average enrollment [daily
315	315	attendance] or a different amount for any year provided by
316	316	appropriation.
317	317	SECTION 23. Section 29.912(c), Education Code, is amended
318	318	to read as follows:
319	319	(c) The program must enable an eligible school district that
320	320	has fewer than 1,600 students in average enrollment [daily
321	321	attendance] to partner with at least one other school district
322	322	located within a distance of 100 miles to offer a broader array of
323	323	robust college and career pathways. Each partnership must:
324	324	(1) offer college and career pathways that align with
325	325	regional labor market projections for high-wage, high-demand
326	326	careers; and
327	327	(2) be managed by a coordinating entity that:
328	328	(A) has or will have at the time students are
329	329	served under the partnership the capacity to effectively coordinate
330	330	the partnership;
331	331	(B) has entered into a performance agreement
332	332	approved by the board of trustees of each partnering school
333	333	district that confers on the coordinating entity the same authority
334	334	with respect to pathways offered under the partnership provided to
335	335	an entity that contracts to operate a district campus under Section
336	336	11.174;
337	337	(C) is an eligible entity as defined by Section
338	338	12.101(a); and
339	339	(D) has on the entity's governing board as either
340	340	voting or ex officio members, or has on an advisory body,
341	341	representatives of each partnering school district and members of
342	342	regional higher education and workforce organizations.
343	343	SECTION 24. Section 30.003(b), Education Code, is amended
344	344	to read as follows:
345	345	(b) If the student is admitted to the school for a full-time
346	346	program for the equivalent of two long semesters, the district's
347	347	share of the cost is an amount equal to the dollar amount of
348	348	maintenance and debt service taxes imposed by the district for that
349	349	year divided by the district's average enrollment [daily
350	350	attendance] for the preceding year.
351	351	SECTION 25. Section 30.102(a), Education Code, is amended
352	352	to read as follows:
353	353	(a) The Texas Juvenile Justice Department is entitled to
354	354	receive the state available school fund apportionment based on the
355	355	average enrollment [daily attendance] in the department's
356	356	educational programs of students who are at least three years of age
357	357	and not older than 21 years of age.
358	358	SECTION 26. Section 30A.151(f), Education Code, is amended
359	359	to read as follows:
360	360	(f) For a full-time electronic course program offered
361	361	through the state virtual school network for a grade level at or
362	362	above grade level three but not above grade level eight, a school
363	363	district or open-enrollment charter school is entitled to receive
364	364	federal, state, and local funding for a student enrolled in the
365	365	program in an amount equal to the funding the district or school
366	366	would otherwise receive for a student enrolled in the district or
367	367	school. [The district or school may calculate the average daily
368	368	attendance of a student enrolled in the program based on:
369	369	[(1) hours of contact with the student;
370	370	[(2) the student's successful completion of a course;
371	371	or
372	372	[(3) a method approved by the commissioner.]
373	373	SECTION 27. Section 33.157, Education Code, is amended to
374	374	read as follows:
375	375	Sec. 33.157. PARTICIPATION IN PROGRAM. An elementary or
376	376	secondary school receiving funding under Section 33.156 shall
377	377	participate in a local Communities In Schools program if the number
378	378	of students enrolled in the school who are at risk of dropping out
379	379	of school is equal to at least 10 percent of the number of students
380	380	in average enrollment [daily attendance] at the school, as
381	381	determined by the agency.
382	382	SECTION 28. Section 37.0061, Education Code, is amended to
383	383	read as follows:
384	384	Sec. 37.0061. FUNDING FOR ALTERNATIVE EDUCATION SERVICES IN
385	385	JUVENILE RESIDENTIAL FACILITIES. A school district that provides
386	386	education services to pre-adjudicated and post-adjudicated
387	387	students who are confined by court order in a juvenile residential
388	388	facility operated by a juvenile board is entitled to count such
389	389	students in the district's average enrollment [daily attendance]
390	390	for purposes of receipt of state funds under the Foundation School
391	391	Program. If the district has a local revenue level greater than the
392	392	guaranteed local revenue level but less than the level established
393	393	under Section 48.257, the district in which the student is enrolled
394	394	on the date a court orders the student to be confined to a juvenile
395	395	residential facility shall transfer to the district providing
396	396	education services an amount equal to the difference between the
397	397	average Foundation School Program costs per student of the district
398	398	providing education services and the sum of the state aid and the
399	399	money from the available school fund received by the district that
400	400	is attributable to the student for the portion of the school year
401	401	for which the district provides education services to the student.
402	402	SECTION 29. Section 37.008(f), Education Code, is amended
403	403	to read as follows:
404	404	(f) A student removed to a disciplinary alternative
405	405	education program is counted in computing the average enrollment
406	406	[daily attendance] of students in the district [for the student's
407	407	time in actual attendance in the program].
408	408	SECTION 30. Section 37.011(a-4), Education Code, is amended
409	409	to read as follows:
410	410	(a-4) A school district located in a county considered to be
411	411	a county with a population of 125,000 or less under Subsection (a-3)
412	412	shall provide educational services to a student who is expelled
413	413	from school under this chapter. The district is entitled to count
414	414	the student in the district's average enrollment [daily attendance]
415	415	for purposes of receipt of state funds under the Foundation School
416	416	Program. An educational placement under this section may include:
417	417	(1) the district's disciplinary alternative education
418	418	program; or
419	419	(2) a contracted placement with:
420	420	(A) another school district;
421	421	(B) an open-enrollment charter school;
422	422	(C) an institution of higher education;
423	423	(D) an adult literacy council; or
424	424	(E) a community organization that can provide an
425	425	educational program that allows the student to complete the credits
426	426	required for high school graduation.
427	427	SECTION 31. Sections 39.027(c) and (f), Education Code, are
428	428	amended to read as follows:
429	429	(c) The commissioner shall develop and adopt a process for
430	430	reviewing the exemption process of a school district or shared
431	431	services arrangement that gives an exemption under Subsection
432	432	(a)(1) as follows:
433	433	(1) to more than five percent of the students in the
434	434	special education program, in the case of a district or shared
435	435	services arrangement with an average enrollment [daily attendance]
436	436	of at least 1,600;
437	437	(2) to more than 10 percent of the students in the
438	438	special education program, in the case of a district or shared
439	439	services arrangement with an average enrollment [daily attendance]
440	440	of at least 190 and not more than 1,599; or
441	441	(3) to the greater of more than 10 percent of the
442	442	students in the special education program or to at least five
443	443	students in the special education program, in the case of a district
444	444	or shared services arrangement with an average enrollment [daily
445	445	attendance] of not more than 189.
446	446	(f) In this section, "average enrollment [daily
447	447	attendance]" is computed in the manner provided by Section 48.005.
448	448	SECTION 32. Section 39.053(g-1), Education Code, is amended
449	449	to read as follows:
450	450	(g-1) In computing dropout and completion rates such as high
451	451	school graduation rates under Subsection (c)(1)(B)(ix), the
452	452	commissioner shall exclude:
453	453	(1) students who are ordered by a court to attend a
454	454	high school equivalency certificate program but who have not yet
455	455	earned a high school equivalency certificate;
456	456	(2) students who were previously reported to the state
457	457	as dropouts, including a student who is reported as a dropout,
458	458	reenrolls, and drops out again, regardless of the number of times of
459	459	reenrollment and dropping out;
460	460	(3) students in attendance who are not in membership
461	461	for purposes of average enrollment [daily attendance];
462	462	(4) students whose initial enrollment in a school in
463	463	the United States in grades 7 through 12 was as an unschooled asylee
464	464	or refugee as defined by Section 39.027(a-1);
465	465	(5) students who are detained at a county
466	466	pre-adjudication or post-adjudication juvenile detention facility
467	467	and:
468	468	(A) in the district exclusively as a function of
469	469	having been detained at the facility but are otherwise not students
470	470	of the district in which the facility is located; or
471	471	(B) provided services by an open-enrollment
472	472	charter school exclusively as the result of having been detained at
473	473	the facility;
474	474	(6) students who are incarcerated in state jails and
475	475	federal penitentiaries as adults and as persons certified to stand
476	476	trial as adults; and
477	477	(7) students who have suffered a condition, injury, or
478	478	illness that requires substantial medical care and leaves the
479	479	student:
480	480	(A) unable to attend school; and
481	481	(B) assigned to a medical or residential
482	482	treatment facility.
483	483	SECTION 33. Section 39.262(a), Education Code, is amended
484	484	to read as follows:
485	485	(a) The governor may present a financial award to the
486	486	schools or districts that the commissioner determines have
487	487	demonstrated the highest levels of sustained success or the
488	488	greatest improvement in achieving the education goals. For each
489	489	student in average enrollment [daily attendance], each of those
490	490	schools or districts is entitled to an amount set for the award for
491	491	which the school or district is selected by the commissioner,
492	492	subject to any limitation set by the commissioner on the total
493	493	amount that may be awarded to a school or district.
494	494	SECTION 34. Section 43.001(c), Education Code, is amended
495	495	to read as follows:
496	496	(c) The term "scholastic population" in Subsection (b) or
497	497	any other law governing the apportionment, distribution, and
498	498	transfer of the available school fund means all students of school
499	499	age [enrolled] in average enrollment [daily attendance] the
500	500	preceding school year in the public elementary and high school
501	501	grades of school districts within or under the jurisdiction of a
502	502	county of this state.
503	503	SECTION 35. Section 44.004(c), Education Code, is amended
504	504	to read as follows:
505	505	(c) The notice of public meeting to discuss and adopt the
506	506	budget and the proposed tax rate may not be smaller than one-quarter
507	507	page of a standard-size or a tabloid-size newspaper, and the
508	508	headline on the notice must be in 18-point or larger type. Subject
509	509	to Subsection (d), the notice must:
510	510	(1) contain a statement in the following form:
511	511	"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
512	512	"The (name of school district) will hold a public meeting at
513	513	(time, date, year) in (name of room, building, physical location,
514	514	city, state). The purpose of this meeting is to discuss the school
515	515	district's budget that will determine the tax rate that will be
516	516	adopted. Public participation in the discussion is invited." The
517	517	statement of the purpose of the meeting must be in bold type. In
518	518	reduced type, the notice must state: "The tax rate that is
519	519	ultimately adopted at this meeting or at a separate meeting at a
520	520	later date may not exceed the proposed rate shown below unless the
521	521	district publishes a revised notice containing the same information
522	522	and comparisons set out below and holds another public meeting to
523	523	discuss the revised notice." In addition, in reduced type, the
524	524	notice must state: "Visit Texas.gov/PropertyTaxes to find a link to
525	525	your local property tax database on which you can easily access
526	526	information regarding your property taxes, including information
527	527	about proposed tax rates and scheduled public hearings of each
528	528	entity that taxes your property.";
529	529	(2) contain a section entitled "Comparison of Proposed
530	530	Budget with Last Year's Budget," which must show the difference,
531	531	expressed as a percent increase or decrease, as applicable, in the
532	532	amounts budgeted for the preceding fiscal year and the amount
533	533	budgeted for the fiscal year that begins in the current tax year for
534	534	each of the following:
535	535	(A) maintenance and operations;
536	536	(B) debt service; and
537	537	(C) total expenditures;
538	538	(3) contain a section entitled "Total Appraised Value
539	539	and Total Taxable Value," which must show the total appraised value
540	540	and the total taxable value of all property and the total appraised
541	541	value and the total taxable value of new property taxable by the
542	542	district in the preceding tax year and the current tax year as
543	543	calculated under Section 26.04, Tax Code;
544	544	(4) contain a statement of the total amount of the
545	545	outstanding and unpaid bonded indebtedness of the school district;
546	546	(5) contain a section entitled "Comparison of Proposed
547	547	Rates with Last Year's Rates," which must:
548	548	(A) show in rows the tax rates described by
549	549	Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
550	550	property, for columns entitled "Maintenance & Operations,"
551	551	"Interest & Sinking Fund," and "Total," which is the sum of
552	552	"Maintenance & Operations" and "Interest & Sinking Fund":
553	553	(i) the school district's "Last Year's
554	554	Rate";
555	555	(ii) the "Rate to Maintain Same Level of
556	556	Maintenance & Operations Revenue & Pay Debt Service," which:
557	557	(a) in the case of "Maintenance &
558	558	Operations," is the tax rate that, when applied to the current
559	559	taxable value for the district, as certified by the chief appraiser
560	560	under Section 26.01, Tax Code, and as adjusted to reflect changes
561	561	made by the chief appraiser as of the time the notice is prepared,
562	562	would impose taxes in an amount that, when added to state funds to
563	563	be distributed to the district under Chapter 48, would provide the
564	564	same amount of maintenance and operations taxes and state funds
565	565	distributed under Chapter 48 per student in average enrollment
566	566	[daily attendance] for the applicable school year that was
567	567	available to the district in the preceding school year; and
568	568	(b) in the case of "Interest & Sinking
569	569	Fund," is the tax rate that, when applied to the current taxable
570	570	value for the district, as certified by the chief appraiser under
571	571	Section 26.01, Tax Code, and as adjusted to reflect changes made by
572	572	the chief appraiser as of the time the notice is prepared, and when
573	573	multiplied by the district's anticipated collection rate, would
574	574	impose taxes in an amount that, when added to state funds to be
575	575	distributed to the district under Chapter 46 and any excess taxes
576	576	collected to service the district's debt during the preceding tax
577	577	year but not used for that purpose during that year, would provide
578	578	the amount required to service the district's debt; and
579	579	(iii) the "Proposed Rate";
580	580	(B) contain fourth and fifth columns aligned with
581	581	the columns required by Paragraph (A) that show, for each row
582	582	required by Paragraph (A):
583	583	(i) the "Local Revenue per Student," which
584	584	is computed by multiplying the district's total taxable value of
585	585	property, as certified by the chief appraiser for the applicable
586	586	school year under Section 26.01, Tax Code, and as adjusted to
587	587	reflect changes made by the chief appraiser as of the time the
588	588	notice is prepared, by the total tax rate, and dividing the product
589	589	by the number of students in average enrollment [daily attendance]
590	590	in the district for the applicable school year; and
591	591	(ii) the "State Revenue per Student," which
592	592	is computed by determining the amount of state aid received or to be
593	593	received by the district under Chapters 43, 46, and 48 and dividing
594	594	that amount by the number of students in average enrollment [daily
595	595	attendance] in the district for the applicable school year; and
596	596	(C) contain an asterisk after each calculation
597	597	for "Interest & Sinking Fund" and a footnote to the section that, in
598	598	reduced type, states "The Interest & Sinking Fund tax revenue is
599	599	used to pay for bonded indebtedness on construction, equipment, or
600	600	both. The bonds, and the tax rate necessary to pay those bonds, were
601	601	approved by the voters of this district.";
602	602	(6) contain a section entitled "Comparison of Proposed
603	603	Levy with Last Year's Levy on Average Residence," which must:
604	604	(A) show in rows the information described by
605	605	Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
606	606	entitled "Last Year" and "This Year":
607	607	(i) "Average Market Value of Residences,"
608	608	determined using the same group of residences for each year;
609	609	(ii) "Average Taxable Value of Residences,"
610	610	determined after taking into account the limitation on the
611	611	appraised value of residences under Section 23.23, Tax Code, and
612	612	after subtracting all homestead exemptions applicable in each year,
613	613	other than exemptions available only to disabled persons or persons
614	614	65 years of age or older or their surviving spouses, and using the
615	615	same group of residences for each year;
616	616	(iii) "Last Year's Rate Versus Proposed
617	617	Rate per $100 Value"; and
618	618	(iv) "Taxes Due on Average Residence,"
619	619	determined using the same group of residences for each year; and
620	620	(B) contain the following information: "Increase
621	621	(Decrease) in Taxes" expressed in dollars and cents, which is
622	622	computed by subtracting the "Taxes Due on Average Residence" for
623	623	the preceding tax year from the "Taxes Due on Average Residence" for
624	624	the current tax year;
625	625	(7) contain the following statement in bold print:
626	626	"Under state law, the dollar amount of school taxes imposed on the
627	627	residence of a person 65 years of age or older or of the surviving
628	628	spouse of such a person, if the surviving spouse was 55 years of age
629	629	or older when the person died, may not be increased above the amount
630	630	paid in the first year after the person turned 65, regardless of
631	631	changes in tax rate or property value.";
632	632	(8) contain the following statement in bold print:
633	633	"Notice of Voter-Approval Rate: The highest tax rate the district
634	634	can adopt before requiring voter approval at an election is (the
635	635	school district voter-approval rate determined under Section
636	636	26.08, Tax Code). This election will be automatically held if the
637	637	district adopts a rate in excess of the voter-approval rate of (the
638	638	school district voter-approval rate)."; and
639	639	(9) contain a section entitled "Fund Balances," which
640	640	must include the estimated amount of interest and sinking fund
641	641	balances and the estimated amount of maintenance and operation or
642	642	general fund balances remaining at the end of the current fiscal
643	643	year that are not encumbered with or by corresponding debt
644	644	obligation, less estimated funds necessary for the operation of the
645	645	district before the receipt of the first payment under Chapter 48 in
646	646	the succeeding school year.
647	647	SECTION 36. Sections 45.0011(a), (d), and (e), Education
648	648	Code, are amended to read as follows:
649	649	(a) This section applies only to an independent school
650	650	district that, at the time of the issuance of obligations and
651	651	execution of credit agreements under this section, has:
652	652	(1) at least 2,000 students in average enrollment
653	653	[daily attendance]; or
654	654	(2) a combined aggregate principal amount of at least
655	655	$50 million of outstanding bonds and voted but unissued bonds.
656	656	(d) A district may not issue bonds to which this section
657	657	applies in an amount greater than the greater of:
658	658	(1) 25 percent of the sum of:
659	659	(A) the aggregate principal amount of all
660	660	district debt payable from ad valorem taxes that is outstanding at
661	661	the time the bonds are issued; and
662	662	(B) the aggregate principal amount of all bonds
663	663	payable from ad valorem taxes that have been authorized but not
664	664	issued;
665	665	(2) $25 million, in a district that has at least 3,500
666	666	but not more than 15,000 students in average enrollment [daily
667	667	attendance]; or
668	668	(3) $50 million, in a district that has more than
669	669	15,000 students in average enrollment [daily attendance].
670	670	(e) In this section, average enrollment [daily attendance]
671	671	is determined in the manner provided by Section 48.005.
672	672	SECTION 37. Section 45.006(a), Education Code, is amended
673	673	to read as follows:
674	674	(a) This section applies only to a school district that:
675	675	(1) has an average enrollment [daily attendance] of
676	676	less than 10,000; and
677	677	(2) is located in whole or part in a municipality with
678	678	a population of less than 25,000 that is located in a county with a
679	679	population of 200,000 or more bordering another county with a
680	680	population of 2.8 million or more.
681	681	SECTION 38. Section 45.105(d), Education Code, is amended
682	682	to read as follows:
683	683	(d) An independent school district that has in its limits a
684	684	municipality with a population of 150,000 or more or that contains
685	685	at least 170 square miles, has $850 million or more assessed value
686	686	of taxable property on the most recent approved tax roll and has a
687	687	growth in average enrollment [daily attendance] of 11 percent or
688	688	more for each of the preceding five years as determined by the
689	689	agency may, in buying school sites or additions to school sites and
690	690	in building school buildings, issue and deliver negotiable or
691	691	nonnegotiable notes representing all or part of the cost to the
692	692	school district of the land or building. The district may secure
693	693	the notes by a vendor's lien or deed of trust lien against the land
694	694	or building. By resolution or order of the governing body made at
695	695	or before the delivery of the notes, the district may set aside and
696	696	appropriate as a trust fund, and the sole and only fund, for the
697	697	payment of the principal of and interest on the notes that part of
698	698	the local school funds, levied and collected by the school district
699	699	in that year or subsequent years, as the governing body determines.
700	700	The aggregate amount of local school funds set aside in or for any
701	701	subsequent year for the retirement of the notes may not exceed, in
702	702	any one subsequent year, 10 percent of the local school funds
703	703	collected during that year. The district may issue the notes only
704	704	if approved by majority vote of the qualified voters voting in an
705	705	election conducted in the manner provided by Section 45.003 for
706	706	approval of bonds.
707	707	SECTION 39. Section 46.003(a), Education Code, is amended
708	708	to read as follows:
709	709	(a) For each year, except as provided by Sections 46.005 and
710	710	46.006, a school district is guaranteed a specified amount per
711	711	student in state and local funds for each cent of tax effort, up to
712	712	the maximum rate under Subsection (b), to pay the principal of and
713	713	interest on eligible bonds issued to construct, acquire, renovate,
714	714	or improve an instructional facility. The amount of state support
715	715	is determined by the formula:
716	716	FYA = (FYL X AE [ADA] X BTR X 100) - (BTR X (DPV/100))
717	717	where:
718	718	"FYA" is the guaranteed facilities yield amount of state
719	719	funds allocated to the district for the year;
720	720	"FYL" is the dollar amount guaranteed level of state and
721	721	local funds per student per cent of tax effort, which is $35 or a
722	722	greater amount for any year provided by appropriation;
723	723	"AE" ["ADA"] is the greater of the number of students in
724	724	average enrollment [daily attendance], as determined under Section
725	725	48.005, in the district or 400;
726	726	"BTR" is the district's bond tax rate for the current year,
727	727	which is determined by dividing the amount budgeted by the district
728	728	for payment of eligible bonds by the quotient of the district's
729	729	taxable value of property as determined under Subchapter M, Chapter
730	730	403, Government Code, or, if applicable, Section 48.258, divided by
731	731	100; and
732	732	"DPV" is the district's taxable value of property as
733	733	determined under Subchapter M, Chapter 403, Government Code, or, if
734	734	applicable, Section 48.258.
735	735	SECTION 40. Section 46.005, Education Code, is amended to
736	736	read as follows:
737	737	Sec. 46.005. LIMITATION ON GUARANTEED AMOUNT. The
738	738	guaranteed amount of state and local funds for a new project that a
739	739	district may be awarded in any state fiscal biennium under Section
740	740	46.003 for a school district may not exceed the lesser of:
741	741	(1) the amount the actual debt service payments the
742	742	district makes in the biennium in which the bonds are issued; or
743	743	(2) the greater of:
744	744	(A) $100,000; or
745	745	(B) the product of the number of students in
746	746	average enrollment [daily attendance] in the district multiplied by
747	747	$250.
748	748	SECTION 41. Section 46.006(g), Education Code, is amended
749	749	to read as follows:
750	750	(g) In this section, "wealth per student" means a school
751	751	district's taxable value of property as determined under Subchapter
752	752	M, Chapter 403, Government Code, or, if applicable, Section 48.258,
753	753	divided by the district's average enrollment [daily attendance] as
754	754	determined under Section 48.005.
755	755	SECTION 42. Section 46.032(a), Education Code, is amended
756	756	to read as follows:
757	757	(a) Each school district is guaranteed a specified amount
758	758	per student in state and local funds for each cent of tax effort to
759	759	pay the principal of and interest on eligible bonds. The amount of
760	760	state support, subject only to the maximum amount under Section
761	761	46.034, is determined by the formula:
762	762	EDA = (EDGL X AE [ADA] X EDTR X 100) - (EDTR X (DPV/100))
763	763	where:
764	764	"EDA" is the amount of state funds to be allocated to the
765	765	district for assistance with existing debt;
766	766	"EDGL" is the dollar amount guaranteed level of state and
767	767	local funds per student per cent of tax effort, which is the lesser
768	768	of:
769	769	(1) $40 or a greater amount for any year provided by
770	770	appropriation; or
771	771	(2) the amount that would result in a total additional
772	772	amount of state funds under this subchapter for the current year
773	773	equal to $60 million in excess of the state funds to which school
774	774	districts would have been entitled under this section if the
775	775	guaranteed level amount were $35;
776	776	"AE" ["ADA"] is the number of students in average enrollment
777	777	[daily attendance], as determined under Section 48.005, in the
778	778	district;
779	779	"EDTR" is the existing debt tax rate of the district, which is
780	780	determined by dividing the amount budgeted by the district for
781	781	payment of eligible bonds by the quotient of the district's taxable
782	782	value of property as determined under Subchapter M, Chapter 403,
783	783	Government Code, or, if applicable, under Section 48.258, divided
784	784	by 100; and
785	785	"DPV" is the district's taxable value of property as
786	786	determined under Subchapter M, Chapter 403, Government Code, or, if
787	787	applicable, under Section 48.258.
788	788	SECTION 43. Section 48.005, Education Code, is amended to
789	789	read as follows:
790	790	Sec. 48.005. AVERAGE ENROLLMENT [DAILY ATTENDANCE]. (a)
791	791	In this chapter, average enrollment [daily attendance] is:
792	792	(1) the average number of students enrolled in the
793	793	school district during a school year [quotient of the sum of
794	794	attendance for each day of the minimum number of days of instruction
795	795	as described under Section 25.081(a) divided by the minimum number
796	796	of days of instruction;
797	797	[(2) for a district that operates under a flexible
798	798	year program under Section 29.0821, the quotient of the sum of
799	799	attendance for each actual day of instruction as permitted by
800	800	Section 29.0821(b)(1) divided by the number of actual days of
801	801	instruction as permitted by Section 29.0821(b)(1);
802	802	[(3) for a district that operates under a flexible
803	803	school day program under Section 29.0822, the average daily
804	804	attendance as calculated by the commissioner in accordance with
805	805	Sections 29.0822(d) and (d-1)]; or
806	806	(2) [(4)] for a district that operates a half-day
807	807	program or a full-day program under Section 29.153(c), one-half of
808	808	the average enrollment [daily attendance] calculated under
809	809	Subdivision (1).
810	810	(b) A school district that experiences a decline of two
811	811	percent or more in average enrollment [daily attendance] shall be
812	812	funded on the basis of:
813	813	(1) the actual average enrollment [daily attendance]
814	814	of the preceding school year, if the decline is the result of the
815	815	closing or reduction in personnel of a military base; or
816	816	(2) subject to Subsection (e), an average enrollment
817	817	[daily attendance] not to exceed 98 percent of the actual average
818	818	enrollment [daily attendance] of the preceding school year, if the
819	819	decline is not the result of the closing or reduction in personnel
820	820	of a military base.
821	821	(c) The commissioner shall adjust the average enrollment
822	822	[daily attendance] of a school district that has a significant
823	823	percentage of students who are migratory children as defined by 20
824	824	U.S.C. Section 6399.
825	825	(d) The commissioner may adjust the average enrollment
826	826	[daily attendance] of a school district in which a disaster, flood,
827	827	extreme weather condition, fuel curtailment, or other calamity has
828	828	a significant effect on the district's enrollment [attendance]. In
829	829	addition to providing the adjustment for the amount of
830	830	instructional days during the semester in which the calamity first
831	831	occurred, an adjustment under this section may only be provided
832	832	based on a particular calamity for an additional amount of
833	833	instructional days equivalent to one school year. The commissioner
834	834	may divide the adjustment between two consecutive school years.
835	835	(e) For each school year, the commissioner shall adjust the
836	836	average enrollment [daily attendance] of school districts that are
837	837	entitled to funding on the basis of an adjusted average enrollment
838	838	[daily attendance] under Subsection (b)(2) so that:
839	839	(1) all districts are funded on the basis of the same
840	840	percentage of the preceding year's actual average enrollment [daily
841	841	attendance]; and
842	842	(2) the total cost to the state does not exceed the
843	843	amount specifically appropriated for that year for purposes of
844	844	Subsection (b)(2).
845	845	(f) An open-enrollment charter school is not entitled to
846	846	funding based on an adjustment under Subsection (b)(2).
847	847	(g) If a student may receive course credit toward the
848	848	student's high school academic requirements and toward the
849	849	student's higher education academic requirements for a single
850	850	course, including a course provided under Section 28.009 by a
851	851	public institution of higher education, the time during which the
852	852	student attends the course shall be counted as part of the minimum
853	853	number of instructional hours required for a student to be
854	854	considered a full-time student in average enrollment [daily
855	855	attendance] for purposes of this section.
856	856	[(g-1) The commissioner shall adopt rules to calculate
857	857	average daily attendance for students participating in a blended
858	858	learning program in which classroom instruction is supplemented
859	859	with applied workforce learning opportunities, including
860	860	participation of students in internships, externships, and
861	861	apprenticeships.]
862	862	(h) Time [Subject to rules adopted by the commissioner under
863	863	Section 48.007(b), time] that a student participates in an
864	864	off-campus instructional program provided by an entity other than a
865	865	school district or open-enrollment charter school and approved by
866	866	the commissioner in accordance with commissioner rule [under
867	867	Section 48.007(a)] shall be counted as part of the minimum number of
868	868	instructional hours required for a student to be considered a
869	869	full-time student in average enrollment [daily attendance] for
870	870	purposes of this section.
871	871	(i) A district or a charter school operating under Chapter
872	872	12 that operates a prekindergarten program is eligible to receive
873	873	one-half of average enrollment [daily attendance] under Subsection
874	874	(a) if the district's or charter school's prekindergarten program
875	875	provides at least 32,400 minutes of instructional time to students.
876	876	(j) A district or charter school is eligible to earn full
877	877	average enrollment [daily attendance] under Subsection (a) if the
878	878	district or school provides at least 43,200 minutes of
879	879	instructional time to students enrolled in:
880	880	(1) a dropout recovery school or program operating
881	881	under Section 12.1141(c) or Section 39.0548;
882	882	(2) an alternative education program operating under
883	883	Section 37.008;
884	884	(3) a school program located at a day treatment
885	885	facility, residential treatment facility, psychiatric hospital, or
886	886	medical hospital;
887	887	(4) a school program offered at a correctional
888	888	facility; or
889	889	(5) a school operating under Subchapter G, Chapter 12.
890	890	(k) A charter school operating under a charter granted under
891	891	Chapter 12 before January 1, 2015, is eligible to earn full average
892	892	enrollment [daily attendance] under Subsection (a)[, as that
893	893	subsection existed immediately before January 1, 2015,] for:
894	894	(1) all campuses of the charter school operating
895	895	before January 1, 2015; and
896	896	(2) any campus or site expansion approved on or after
897	897	January 1, 2015, provided that the charter school received an
898	898	academic accountability performance rating of C or higher, and the
899	899	campus or site expansion is approved by the commissioner.
900	900	(l) A school district campus or charter school described by
901	901	Subsection (j) may operate more than one program and be eligible for
902	902	full average enrollment [daily attendance] for each program if the
903	903	programs operated by the district campus or charter school satisfy
904	904	all applicable state and federal requirements.
905	905	(m) The commissioner shall adopt rules necessary to
906	906	implement this section, including rules that:
907	907	(1) determine the method to calculate the average
908	908	number of students enrolled in a school district during a school
909	909	year;
910	910	(2) establish the minimum amount of instructional time
911	911	per day that allows a school district or charter school to be
912	912	eligible for full average enrollment [daily attendance], which may
913	913	differ based on the instructional program offered by the district
914	914	or charter school;
915	915	(3) [(2)] establish the requirements necessary for a
916	916	school district or charter school to be eligible for one-half of
917	917	average enrollment [daily attendance], which may differ based on
918	918	the instructional program offered by the district or charter
919	919	school;
920	920	(4) [(3)] proportionally reduce the average
921	921	enrollment [daily attendance] for a school district if any campus
922	922	or instructional program in the district provides fewer than the
923	923	required minimum minutes of instruction to students; and
924	924	(5) [(4)] allow a grade or course repeated under
925	925	Section 28.02124 to qualify for average enrollment [daily
926	926	attendance] even if the student previously passed or earned credit
927	927	for the grade or course, if the grade or course would otherwise be
928	928	eligible.
929	929	(n) To assist school districts in implementing this section
930	930	as amended by H.B. 2442, [Acts of the] 85th Legislature, Regular
931	931	Session, 2017, the commissioner may waive a requirement of this
932	932	section or adopt rules to implement this section.
933	933	SECTION 44. Sections 48.0051(a) and (b), Education Code,
934	934	are amended to read as follows:
935	935	(a) The [Subject to Subsection (a-1), the] commissioner
936	936	shall adjust the average enrollment [daily attendance] of a school
937	937	district or open-enrollment charter school under Section 48.005 in
938	938	the manner provided by Subsection (b) if the district or school:
939	939	(1) provides the minimum number of minutes of
940	940	operational and instructional time required under Section 25.081
941	941	and commissioner rules adopted under that section over at least 180
942	942	days of instruction; and
943	943	(2) offers an additional 30 days of half-day
944	944	instruction for students enrolled in prekindergarten through fifth
945	945	grade.
946	946	(b) For a school district or open-enrollment charter school
947	947	described by Subsection (a), the commissioner shall increase the
948	948	average enrollment [daily attendance] of the district or school
949	949	under Section 48.005 by the amount equal to one-sixth [that results
950	950	from the quotient] of the enrollment [sum of attendance] by
951	951	students described by Subsection (a)(2) in [for each of] the 30
952	952	additional instructional days of half-day instruction [that are
953	953	provided divided by 180].
954	954	SECTION 45. Section 48.006, Education Code, is amended to
955	955	read as follows:
956	956	Sec. 48.006. AVERAGE ENROLLMENT [DAILY ATTENDANCE] FOR
957	957	DISTRICTS IN DISASTER AREA. (a) The commissioner may adjust the
958	958	average enrollment [daily attendance] of a school district all or
959	959	part of which is located in an area declared a disaster area by the
960	960	governor under Chapter 418, Government Code, if the district
961	961	experiences a decline in average enrollment [daily attendance] that
962	962	is reasonably attributable to the impact of the disaster.
963	963	(b) The adjustment must be sufficient to ensure that the
964	964	district receives funding comparable to the funding that the
965	965	district would have received if the decline in average enrollment
966	966	[daily attendance] reasonably attributable to the impact of the
967	967	disaster had not occurred.
968	968	(c) The commissioner may make the adjustment under this
969	969	section for the two-year period following the date of the
970	970	governor's initial proclamation or executive order declaring the
971	971	state of disaster.
972	972	(d) Section 48.005(b)(2) does not apply to a district that
973	973	receives an adjustment under this section.
974	974	(e) A district that receives an adjustment under this
975	975	section may not receive any additional adjustment under Section
976	976	48.005(d) for the decline in average enrollment [daily attendance]
977	977	on which the adjustment under this section is based.
978	978	(f) For purposes of this title, a district's adjusted
979	979	average enrollment [daily attendance] under this section is
980	980	considered to be the district's average enrollment [daily
981	981	attendance] as determined under Section 48.005.
982	982	SECTION 46. Sections 48.010(a) and (b), Education Code, are
983	983	amended to read as follows:
984	984	(a) Not later than July 1 of each year, the commissioner
985	985	shall determine for each school district whether the estimated
986	986	amount of state and local funding per student in weighted average
987	987	enrollment [daily attendance] to be provided to the district under
988	988	the Foundation School Program for maintenance and operations for
989	989	the following school year is less than the amount provided to the
990	990	district for the 2010-2011 school year. If the amount estimated to
991	991	be provided is less, the commissioner shall certify the percentage
992	992	decrease in funding to be provided to the district.
993	993	(b) In making the determinations regarding funding levels
994	994	required by Subsection (a), the commissioner shall:
995	995	(1) make adjustments as necessary to reflect changes
996	996	in a school district's maintenance and operations tax rate;
997	997	(2) for a district required to reduce its local
998	998	revenue level under Section 48.257, base the determinations on the
999	999	district's net funding levels after deducting any amounts required
1000	1000	to be expended by the district to comply with Chapter 49; and
1001	1001	(3) determine a district's weighted average enrollment
1002	1002	[daily attendance] in accordance with this chapter as it existed on
1003	1003	January 1, 2011.
1004	1004	SECTION 47. Section 48.051, Education Code, is amended by
1005	1005	amending Subsections (a) and (c) and adding Subsection (a-1) to
1006	1006	read as follows:
1007	1007	(a) Subject to adjustment under Subsection (a-1), for [For]
1008	1008	each student in average enrollment [daily attendance], not
1009	1009	including the time students spend each day in special education
1010	1010	programs in an instructional arrangement other than mainstream or
1011	1011	career and technology education programs, for which an additional
1012	1012	allotment is made under Subchapter C, a district is entitled to an
1013	1013	allotment equal to the lesser of $7,750 [$6,160] or the amount that
1014	1014	results from the following formula:
1015	1015	A = $7,750 [$6,160] X TR/MCR
1016	1016	where:
1017	1017	"A" is the allotment to which a district is entitled;
1018	1018	"TR" is the district's tier one maintenance and operations
1019	1019	tax rate, as provided by Section 45.0032; and
1020	1020	"MCR" is the district's maximum compressed tax rate, as
1021	1021	determined under Section 48.2551.
1022	1022	(a-1) Beginning with the 2026-2027 school year, the basic
1023	1023	allotment provided to a district under Subsection (a) or (b) is
1024	1024	adjusted annually to increase the allotment by a factor equal to the
1025	1025	average annual percentage increase, if any, in the Consumer Price
1026	1026	Index for All Urban Consumers published by the Bureau of Labor
1027	1027	Statistics of the United States Department of Labor, to the
1028	1028	allotment for the preceding five years.
1029	1029	(c) During any school year for which the maximum amount of
1030	1030	the basic allotment provided under Subsection (a) or (b) is greater
1031	1031	than the maximum amount provided for the preceding school year, a
1032	1032	school district must use at least 30 percent of the amount, if the
1033	1033	amount is greater than zero, that equals the product of the average
1034	1034	enrollment [daily attendance] of the district multiplied by the
1035	1035	amount of the difference between the district's funding under this
1036	1036	chapter per student in average enrollment [daily attendance] for
1037	1037	the current school year and the preceding school year to provide
1038	1038	compensation increases to full-time district employees other than
1039	1039	administrators as follows:
1040	1040	(1) 75 percent must be used to increase the
1041	1041	compensation paid to classroom teachers, full-time librarians,
1042	1042	full-time school counselors certified under Subchapter B, Chapter
1043	1043	21, and full-time school nurses, prioritizing differentiated
1044	1044	compensation for classroom teachers with more than five years of
1045	1045	experience; and
1046	1046	(2) 25 percent may be used as determined by the
1047	1047	district to increase compensation paid to full-time district
1048	1048	employees.
1049	1049	SECTION 48. Sections 48.052(a) and (c), Education Code, are
1050	1050	amended to read as follows:
1051	1051	(a) Notwithstanding Section 48.051, a school district that
1052	1052	has fewer than 130 students in average enrollment [daily
1053	1053	attendance] shall be provided a basic allotment on the basis of 130
1054	1054	students in average enrollment [daily attendance] if it offers a
1055	1055	kindergarten through grade 12 program and has preceding or current
1056	1056	year's average enrollment [daily attendance] of at least 90
1057	1057	students or is 30 miles or more by bus route from the nearest high
1058	1058	school district. A district offering a kindergarten through grade 8
1059	1059	program whose preceding or current year's average enrollment [daily
1060	1060	attendance] was at least 50 students or which is 30 miles or more by
1061	1061	bus route from the nearest high school district shall be provided a
1062	1062	basic allotment on the basis of 75 students in average enrollment
1063	1063	[daily attendance]. An average enrollment [daily attendance] of 60
1064	1064	students shall be the basis of providing the basic allotment if a
1065	1065	district offers a kindergarten through grade 6 program and has
1066	1066	preceding or current year's average enrollment [daily attendance]
1067	1067	of at least 40 students or is 30 miles or more by bus route from the
1068	1068	nearest high school district.
1069	1069	(c) Notwithstanding Subsection (a) or Section 48.051, a
1070	1070	school district to which this subsection applies, as provided by
1071	1071	Subsection (b), that has fewer than 130 students in average
1072	1072	enrollment [daily attendance] shall be provided a basic allotment
1073	1073	on the basis of 130 students in average enrollment [daily
1074	1074	attendance] if it offers a kindergarten through grade four program
1075	1075	and has preceding or current year's average enrollment [daily
1076	1076	attendance] of at least 75 students or is 30 miles or more by bus
1077	1077	route from the nearest high school district.
1078	1078	SECTION 49. Section 48.101, Education Code, is amended to
1079	1079	read as follows:
1080	1080	Sec. 48.101. SMALL AND MID-SIZED DISTRICT ALLOTMENT. (a)
1081	1081	Small and mid-sized districts are entitled to an annual allotment
1082	1082	in accordance with this section. In this section:
1083	1083	(1) "AA" is the district's annual allotment per
1084	1084	student in average enrollment [daily attendance];
1085	1085	(2) "AE" ["ADA"] is the number of students in average
1086	1086	enrollment [daily attendance] for which the district is entitled to
1087	1087	an allotment under Section 48.051; and
1088	1088	(3) "BA" is the basic allotment determined under
1089	1089	Section 48.051.
1090	1090	(b) A school district that has fewer than 1,600 students in
1091	1091	average enrollment [daily attendance] is entitled to an annual
1092	1092	allotment for each student in average enrollment [daily attendance]
1093	1093	based on the following formula:
1094	1094	AA = ((1,600 - AE [ADA]) X .0004) X BA
1095	1095	(c) A school district that offers a kindergarten through
1096	1096	grade 12 program and has less than 5,000 students in average
1097	1097	enrollment [daily attendance] is entitled to an annual allotment
1098	1098	for each student in average enrollment [daily attendance] based on
1099	1099	the formula, of the following formulas, that results in the
1100	1100	greatest annual allotment:
1101	1101	(1) the formula in Subsection (b), if the district is
1102	1102	eligible for that formula; or
1103	1103	(2) AA = ((5,000 - AE [ADA]) X .000025) X BA.
1104	1104	(d) Instead of the allotment under Subsection (b) or (c)(1),
1105	1105	a school district that has fewer than 300 students in average
1106	1106	enrollment [daily attendance] and is the only school district
1107	1107	located in and operating in a county is entitled to an annual
1108	1108	allotment for each student in average enrollment [daily attendance]
1109	1109	based on the following formula:
1110	1110	AA = ((1,600 - AE [ADA]) X .00047) X BA
1111	1111	SECTION 50. Sections 48.102(a) and (j), Education Code, are
1112	1112	amended to read as follows:
1113	1113	(a) For each student in average enrollment [daily
1114	1114	attendance] in a special education program under Subchapter A,
1115	1115	Chapter 29, in a mainstream instructional arrangement, a school
1116	1116	district is entitled to an annual allotment equal to the basic
1117	1117	allotment, or, if applicable, the sum of the basic allotment and the
1118	1118	allotment under Section 48.101 to which the district is entitled,
1119	1119	multiplied by 1.15. For each full-time equivalent student in
1120	1120	average enrollment [daily attendance] in a special education
1121	1121	program under Subchapter A, Chapter 29, in an instructional
1122	1122	arrangement other than a mainstream instructional arrangement, a
1123	1123	district is entitled to an annual allotment equal to the basic
1124	1124	allotment, or, if applicable, the sum of the basic allotment and the
1125	1125	allotment under Section 48.101 to which the district is entitled,
1126	1126	multiplied by a weight determined according to instructional
1127	1127	arrangement as follows:
1128	1128	Homebound5.0
1129	1129	Hospital class3.0
1130	1130	Speech therapy5.0
1131	1131	Resource room3.0
1132	1132	Self-contained, mild and moderate,
1133	1133	regular campus3.0
1134	1134	Self-contained, severe, regular campus3.0
1135	1135	Off home campus2.7
1136	1136	Nonpublic day school1.7
1137	1137	Vocational adjustment class2.3
1138	1138	(j) A school district that provides an extended year program
1139	1139	required by federal law for special education students who may
1140	1140	regress is entitled to receive funds in an amount equal to 75
1141	1141	percent, or a lesser percentage determined by the commissioner, of
1142	1142	the basic allotment, or, if applicable, the sum of the basic
1143	1143	allotment and the allotment under Section 48.101 to which the
1144	1144	district is entitled for each full-time equivalent student in
1145	1145	average enrollment [daily attendance], multiplied by the amount
1146	1146	designated for the student's instructional arrangement under this
1147	1147	section[, for each day the program is provided divided by the number
1148	1148	of days in the minimum school year]. The total amount of state
1149	1149	funding for extended year services under this section may not
1150	1150	exceed $10 million per year. A school district may use funds
1151	1151	received under this section only in providing an extended year
1152	1152	program.
1153	1153	SECTION 51. Section 48.105(a), Education Code, is amended
1154	1154	to read as follows:
1155	1155	(a) For each student in average enrollment [daily
1156	1156	attendance] in a bilingual education or special language program
1157	1157	under Subchapter B, Chapter 29, a district is entitled to an annual
1158	1158	allotment equal to the basic allotment multiplied by:
1159	1159	(1) for an emergent bilingual student, as defined by
1160	1160	Section 29.052:
1161	1161	(A) 0.1; or
1162	1162	(B) 0.15 if the student is in a bilingual
1163	1163	education program using a dual language immersion/one-way or
1164	1164	two-way program model; and
1165	1165	(2) for a student not described by Subdivision (1),
1166	1166	0.05 if the student is in a bilingual education program using a dual
1167	1167	language immersion/two-way program model.
1168	1168	SECTION 52. Sections 48.106(a) and (a-1), Education Code,
1169	1169	are amended to read as follows:
1170	1170	(a) For each full-time equivalent student in average
1171	1171	enrollment [daily attendance] in an approved career and technology
1172	1172	education program in grades 7 through 12, a district is entitled to
1173	1173	an annual allotment equal to the basic allotment, or, if
1174	1174	applicable, the sum of the basic allotment and the allotment under
1175	1175	Section 48.101 to which the district is entitled, multiplied by:
1176	1176	(1) 1.1 for a full-time equivalent student in career
1177	1177	and technology education courses not in an approved program of
1178	1178	study;
1179	1179	(2) 1.28 for a full-time equivalent student in levels
1180	1180	one and two career and technology education courses in an approved
1181	1181	program of study, as identified by the agency; and
1182	1182	(3) 1.47 for a full-time equivalent student in levels
1183	1183	three and four career and technology education courses in an
1184	1184	approved program of study, as identified by the agency.
1185	1185	(a-1) In addition to the amounts under Subsection (a), for
1186	1186	each student in average enrollment [daily attendance], a district
1187	1187	is entitled to $50 for each of the following in which the student is
1188	1188	enrolled:
1189	1189	(1) a campus designated as a P-TECH school under
1190	1190	Section 29.556; or
1191	1191	(2) a campus that is a member of the New Tech Network
1192	1192	and that focuses on project-based learning and work-based
1193	1193	education.
1194	1194	SECTION 53. Section 48.107(a), Education Code, is amended
1195	1195	to read as follows:
1196	1196	(a) Except as provided by Subsection (b), for each student
1197	1197	in average enrollment [daily attendance] who is using a public
1198	1198	education grant under Subchapter G, Chapter 29, to attend school in
1199	1199	a district other than the district in which the student resides, the
1200	1200	district in which the student attends school is entitled to an
1201	1201	annual allotment equal to the basic allotment multiplied by a
1202	1202	weight of 0.1.
1203	1203	SECTION 54. Section 48.108(a), Education Code, is amended
1204	1204	to read as follows:
1205	1205	(a) For each student in average enrollment [daily
1206	1206	attendance] in kindergarten through third grade, a school district
1207	1207	is entitled to an annual allotment equal to the basic allotment
1208	1208	multiplied by 0.1 if the student is:
1209	1209	(1) educationally disadvantaged; or
1210	1210	(2) an emergent bilingual student, as defined by
1211	1211	Section 29.052, and is in a bilingual education or special language
1212	1212	program under Subchapter B, Chapter 29.
1213	1213	SECTION 55. Section 48.109(c), Education Code, is amended
1214	1214	to read as follows:
1215	1215	(c) Not more than five percent of a district's students in
1216	1216	average enrollment [daily attendance] are eligible for funding
1217	1217	under this section.
1218	1218	SECTION 56. Section 48.115(a), Education Code, is amended
1219	1219	to read as follows:
1220	1220	(a) Except as provided by Subsection (a-1), a school
1221	1221	district is entitled to an annual allotment equal to the sum of the
1222	1222	following amounts or a greater amount provided by appropriation:
1223	1223	(1) $10 for each student in average enrollment [daily
1224	1224	attendance], plus $1 for each student in average enrollment [daily
1225	1225	attendance] per every $50 by which the district's maximum basic
1226	1226	allotment under Section 48.051 exceeds $7,750 [$6,160], prorated as
1227	1227	necessary; and
1228	1228	(2) $15,000 per campus.
1229	1229	SECTION 57. Section 48.118(a), Education Code, is amended
1230	1230	to read as follows:
1231	1231	(a) For each full-time equivalent student in average
1232	1232	enrollment [daily attendance] in grades 9 through 12 in a college or
1233	1233	career pathway offered through a partnership under the Rural
1234	1234	Pathway Excellence Partnership (R-PEP) program under Section
1235	1235	29.912, a school district is entitled to an allotment equal to the
1236	1236	basic allotment, or, if applicable, the sum of the basic allotment
1237	1237	and the allotment under Section 48.101 to which the district is
1238	1238	entitled, multiplied by:
1239	1239	(1) 1.15 if the student is educationally
1240	1240	disadvantaged; or
1241	1241	(2) 1.11 if the student is not educationally
1242	1242	disadvantaged.
1243	1243	SECTION 58. Sections 48.152(d) and (e), Education Code, are
1244	1244	amended to read as follows:
1245	1245	(d) For the first school year in which students attend a new
1246	1246	instructional facility, a school district is entitled to an
1247	1247	allotment of $1,000 for each student in average enrollment [daily
1248	1248	attendance] at the facility. For the second school year in which
1249	1249	students attend that instructional facility, a school district is
1250	1250	entitled to an allotment of $1,000 for each additional student in
1251	1251	average enrollment [daily attendance] at the facility.
1252	1252	(e) For purposes of this section, the number of additional
1253	1253	students in average enrollment [daily attendance] at a facility is
1254	1254	the difference between the number of students in average enrollment
1255	1255	[daily attendance] in the current year at that facility and the
1256	1256	number of students in average enrollment [daily attendance] at that
1257	1257	facility in the preceding year.
1258	1258	SECTION 59. Section 48.153, Education Code, is amended to
1259	1259	read as follows:
1260	1260	Sec. 48.153. DROPOUT RECOVERY SCHOOL AND RESIDENTIAL
1261	1261	PLACEMENT FACILITY ALLOTMENT. A school district or open-enrollment
1262	1262	charter school is entitled to $275 for each student in average
1263	1263	enrollment [daily attendance] who:
1264	1264	(1) resides in a residential placement facility; or
1265	1265	(2) is at a district or school or a campus of the
1266	1266	district or school that is designated as a dropout recovery school
1267	1267	under Section 39.0548.
1268	1268	SECTION 60. Sections 48.202(a) and (a-1), Education Code,
1269	1269	are amended to read as follows:
1270	1270	(a) Each school district is guaranteed a specified amount
1271	1271	per weighted student in state and local funds for each cent of tax
1272	1272	effort over that required for the district's local fund assignment
1273	1273	up to the maximum level specified in this subchapter. The amount of
1274	1274	state support, subject only to the maximum amount under Section
1275	1275	48.203, is determined by the formula:
1276	1276	GYA = (GL X WAE [WADA] X DTR X 100) - LR
1277	1277	where:
1278	1278	"GYA" is the guaranteed yield amount of state funds to be
1279	1279	allocated to the district;
1280	1280	"GL" is the dollar amount guaranteed level of state and local
1281	1281	funds per weighted student per cent of tax effort, which is an
1282	1282	amount described by Subsection (a-1) or a greater amount for any
1283	1283	year provided by appropriation;
1284	1284	"WAE" ["WADA"] is the number of students in weighted average
1285	1285	enrollment [daily attendance], which is calculated by dividing the
1286	1286	sum of the school district's allotments under Subchapters B and C by
1287	1287	the basic allotment for the applicable year;
1288	1288	"DTR" is the district enrichment tax rate of the school
1289	1289	district, which is determined by subtracting the amounts specified
1290	1290	by Subsection (b) from the total amount of maintenance and
1291	1291	operations taxes collected by the school district for the
1292	1292	applicable school year and dividing the difference by the quotient
1293	1293	of the district's taxable value of property as determined under
1294	1294	Subchapter M, Chapter 403, Government Code, or, if applicable,
1295	1295	under Section 48.258 or by the quotient of the value of "DPV" as
1296	1296	determined under Section 48.256(d) if that subsection applies to
1297	1297	the district, divided by 100; and
1298	1298	"LR" is the local revenue, which is determined by multiplying
1299	1299	"DTR" by the quotient of the district's taxable value of property as
1300	1300	determined under Subchapter M, Chapter 403, Government Code, or, if
1301	1301	applicable, under Section 48.258 or by the quotient of the value of
1302	1302	"DPV" as determined under Section 48.256(d) if that subsection
1303	1303	applies to the district, divided by 100.
1304	1304	(a-1) For purposes of Subsection (a), the dollar amount
1305	1305	guaranteed level of state and local funds per weighted student per
1306	1306	cent of tax effort ("GL") for a school district is:
1307	1307	(1) the greater of the amount of district tax revenue
1308	1308	per weighted student per cent of tax effort available to a school
1309	1309	district at the 96th percentile of wealth per weighted student or
1310	1310	the amount that results from multiplying the maximum amount of the
1311	1311	basic allotment provided under Section 48.051 for the applicable
1312	1312	school year [6,160, or the greater amount provided under Section
1313	1313	48.051(b), if applicable,] by 0.016, for the first eight cents by
1314	1314	which the district's maintenance and operations tax rate exceeds
1315	1315	the district's tier one tax rate; and
1316	1316	(2) subject to Subsection (f), the amount that results
1317	1317	from multiplying the maximum amount of the basic allotment provided
1318	1318	under Section 48.051 for the applicable school year [$6,160, or the
1319	1319	greater amount provided under Section 48.051(b), if applicable,] by
1320	1320	0.008, for the district's maintenance and operations tax effort
1321	1321	that exceeds the amount of tax effort described by Subdivision (1).
1322	1322	SECTION 61. Section 48.252(b), Education Code, is amended
1323	1323	to read as follows:
1324	1324	(b) Notwithstanding any other provision of this chapter or
1325	1325	Chapter 49, a school district subject to this section is entitled to
1326	1326	receive for each student in average enrollment [daily attendance]
1327	1327	at the campus or program described by Subsection (a) an amount
1328	1328	equivalent to the difference, if the difference results in
1329	1329	increased funding, between:
1330	1330	(1) the amount described by Section 12.106; and
1331	1331	(2) the amount to which the district would be entitled
1332	1332	under this chapter.
1333	1333	SECTION 62. Section 48.2642(a), Education Code, is amended
1334	1334	to read as follows:
1335	1335	(a) Notwithstanding any other provision of this chapter,
1336	1336	the commissioner shall count toward a school district's or
1337	1337	open-enrollment charter school's average enrollment [daily
1338	1338	attendance] under Section 48.005 each student who graduates early
1339	1339	from high school in the district or school under the Texas First
1340	1340	Early High School Completion Program established under Section
1341	1341	28.0253 for the period in which the student is enrolled at an
1342	1342	eligible institution using state credit awarded under the Texas
1343	1343	First Scholarship Program established under Subchapter K-1,
1344	1344	Chapter 56, based on a 100 percent attendance rate.
1345	1345	SECTION 63. Section 48.273(a)(4), Education Code, is
1346	1346	amended to read as follows:
1347	1347	(4) "Wealth per student" means the taxable property
1348	1348	values reported by the comptroller to the commissioner under
1349	1349	Section 48.256 divided by the number of students in average
1350	1350	enrollment [daily attendance].
1351	1351	SECTION 64. Section 48.277(a), Education Code, is amended
1352	1352	to read as follows:
1353	1353	(a) A school district or open-enrollment charter school is
1354	1354	entitled to receive an annual allotment for each student in average
1355	1355	enrollment [daily attendance] in the amount equal to the
1356	1356	difference, if the difference is greater than zero, that results
1357	1357	from subtracting the total maintenance and operations revenue per
1358	1358	student in average enrollment [daily attendance] for the current
1359	1359	school year from the lesser of:
1360	1360	(1) 103 percent of the district's or school's total
1361	1361	maintenance and operations revenue per student in average
1362	1362	enrollment [daily attendance] for the 2019-2020 school year that
1363	1363	the district or school would have received under former Chapters 41
1364	1364	and 42, as those chapters existed on January 1, 2019; or
1365	1365	(2) 128 percent of the statewide average amount of
1366	1366	maintenance and operations revenue per student in average
1367	1367	enrollment [daily attendance] that would have been provided for the
1368	1368	2019-2020 school year under former Chapters 41 and 42, as those
1369	1369	chapters existed on January 1, 2019.
1370	1370	SECTION 65. Section 49.001(2), Education Code, is amended
1371	1371	to read as follows:
1372	1372	(2) "Weighted average enrollment [daily attendance]"
1373	1373	has the meaning assigned by Section 48.202.
1374	1374	SECTION 66. Section 49.002, Education Code, is amended to
1375	1375	read as follows:
1376	1376	Sec. 49.002. OPTIONS TO REDUCE LOCAL REVENUE LEVEL. A
1377	1377	district with a local revenue level in excess of entitlement may
1378	1378	take any combination of the following actions to reduce the
1379	1379	district's revenue level:
1380	1380	(1) consolidation with another district as provided by
1381	1381	Subchapter B;
1382	1382	(2) detachment of territory as provided by Subchapter
1383	1383	C;
1384	1384	(3) purchase of [average daily] attendance credit as
1385	1385	provided by Subchapter D;
1386	1386	(4) education of nonresident students as provided by
1387	1387	Subchapter E; or
1388	1388	(5) tax base consolidation with another district as
1389	1389	provided by Subchapter F.
1390	1390	SECTION 67. Section 49.003, Education Code, is amended to
1391	1391	read as follows:
1392	1392	Sec. 49.003. INCLUSION OF ATTENDANCE CREDIT AND
1393	1393	NONRESIDENTS IN WEIGHTED AVERAGE ENROLLMENT [DAILY ATTENDANCE]. In
1394	1394	determining whether a school district has a local revenue level in
1395	1395	excess of entitlement, the commissioner shall use:
1396	1396	(1) the district's final weighted average enrollment
1397	1397	[daily attendance]; and
1398	1398	(2) the amount of attendance credit a district
1399	1399	purchases under Subchapter D or the number of nonresident students
1400	1400	a district educates under Subchapter E for a school year.
1401	1401	SECTION 68. Section 49.158(a), Education Code, is amended
1402	1402	to read as follows:
1403	1403	(a) Sections 49.154 and 49.157 apply only to a district
1404	1404	that:
1405	1405	(1) executes an agreement to purchase attendance
1406	1406	credit necessary to reduce the district's local revenue level to
1407	1407	the level established under Section 48.257;
1408	1408	(2) executes an agreement to purchase attendance
1409	1409	credit and an agreement under Subchapter E to contract for the
1410	1410	education of nonresident students who transfer to and are educated
1411	1411	in the district but who are not charged tuition; or
1412	1412	(3) executes an agreement under Subchapter E to
1413	1413	contract for the education of nonresident students:
1414	1414	(A) to an extent that does not provide more than
1415	1415	10 percent of the reduction in local revenue required for the
1416	1416	district to achieve a local revenue level that is equal to or less
1417	1417	than the level established under Section 48.257; and
1418	1418	(B) under which all revenue paid by the district
1419	1419	to other districts, in excess of the reduction in state aid that
1420	1420	results from counting the weighted average enrollment [daily
1421	1421	attendance] of the students served in the contracting district, is
1422	1422	required to be used for funding a consortium of at least three
1423	1423	districts in a county with a population of less than 40,000 that is
1424	1424	formed to support a technology initiative.
1425	1425	SECTION 69. Section 49.201, Education Code, is amended to
1426	1426	read as follows:
1427	1427	Sec. 49.201. AGREEMENT. The board of trustees of a
1428	1428	district with a local revenue level in excess of entitlement may
1429	1429	execute an agreement to educate the students of another district in
1430	1430	a number that, when the weighted average enrollment [daily
1431	1431	attendance] of the students served is added to the weighted average
1432	1432	enrollment [daily attendance] of the contracting district, is
1433	1433	sufficient, in combination with any other actions taken under this
1434	1434	chapter, to reduce the district's local revenue level to a level
1435	1435	that is equal to or less than the level established under Section
1436	1436	48.257. The agreement is not effective unless the commissioner
1437	1437	certifies that the transfer of weighted average enrollment [daily
1438	1438	attendance] will not result in any of the contracting districts'
1439	1439	local revenue level being greater than the level established under
1440	1440	Section 48.257 and that the agreement requires an expenditure per
1441	1441	student in weighted average enrollment [daily attendance] that is
1442	1442	at least equal to the amount per student in weighted average
1443	1443	enrollment [daily attendance] required under Section 49.153.
1444	1444	SECTION 70. Section 49.203, Education Code, is amended to
1445	1445	read as follows:
1446	1446	Sec. 49.203. WEIGHTED AVERAGE ENROLLMENT [WADA] COUNT. For
1447	1447	purposes of Chapter 48, students served under an agreement under
1448	1448	this subchapter are counted only in the weighted average enrollment
1449	1449	[daily attendance] of the district providing the services, except
1450	1450	that students served under an agreement authorized by Section
1451	1451	49.205 are counted in a manner determined by the commissioner.
1452	1452	SECTION 71. Section 49.257(b), Education Code, is amended
1453	1453	to read as follows:
1454	1454	(b) Each component district shall bear a share of the costs
1455	1455	of assessing and collecting taxes in proportion to the component
1456	1456	district's share of weighted average enrollment [daily attendance]
1457	1457	in the consolidated taxing district.
1458	1458	SECTION 72. Section 49.258, Education Code, is amended to
1459	1459	read as follows:
1460	1460	Sec. 49.258. REVENUE DISTRIBUTION. The consolidated taxing
1461	1461	district shall distribute maintenance tax revenue to the component
1462	1462	districts on the basis of the number of students in weighted average
1463	1463	enrollment [daily attendance] in the component districts.
1464	1464	SECTION 73. Sections 49.305(c) and (d), Education Code, are
1465	1465	amended to read as follows:
1466	1466	(c) If the detachment of whole parcels or items of property
1467	1467	as provided by Subsection (a) would result in a district's local
1468	1468	revenue level that is less than the level established under Section
1469	1469	48.257 by more than the product of $10,000 multiplied by weighted
1470	1470	average enrollment [daily attendance], the commissioner may not
1471	1471	detach the last parcel or item of property and shall detach the next
1472	1472	one or more parcels or items of property in descending order of
1473	1473	taxable value that would result in the school district having a
1474	1474	local revenue level that is equal to or less than the level
1475	1475	established under Section 48.257 by not more than the product of
1476	1476	$10,000 multiplied by weighted average enrollment [daily
1477	1477	attendance].
1478	1478	(d) Notwithstanding Subsections (a), (b), and (c), the
1479	1479	commissioner may detach only a portion of a parcel or item of
1480	1480	property if:
1481	1481	(1) it is not possible under this subchapter to reduce
1482	1482	the district's local revenue level to a level that is equal to or
1483	1483	less than the level established under Section 48.257 unless some or
1484	1484	all of the parcel or item of property is detached and the detachment
1485	1485	of the whole parcel or item would result in the district from which
1486	1486	it is detached having a local revenue level that is less than the
1487	1487	level established under Section 48.257 by more than the product of
1488	1488	$10,000 multiplied by weighted average enrollment [daily
1489	1489	attendance]; or
1490	1490	(2) the commissioner determines that a partial
1491	1491	detachment of that parcel or item of property is preferable to the
1492	1492	detachment of one or more other parcels or items having a lower
1493	1493	taxable value in order to minimize the number of parcels or items of
1494	1494	property to be detached consistent with the purposes of this
1495	1495	chapter.
1496	1496	SECTION 74. Section 49.306(i), Education Code, is amended
1497	1497	to read as follows:
1498	1498	(i) The commissioner may order the annexation of a portion
1499	1499	of a parcel or item of property, including a portion of property
1500	1500	treated as a whole parcel or item under Subsection (h), if:
1501	1501	(1) the annexation of the whole parcel or item would
1502	1502	result in the district eligible to receive it in the appropriate
1503	1503	priority order provided by this section having a local revenue
1504	1504	level greater than the amount by which the product of $10,000
1505	1505	multiplied by weighted average enrollment [daily attendance]
1506	1506	exceeds the taxable value of property necessary to generate
1507	1507	maintenance and operations tax revenue in the amount equal to the
1508	1508	district's entitlement under Section 48.202(a-1)(2); or
1509	1509	(2) the commissioner determines that annexation of
1510	1510	portions of the parcel or item would reduce disparities in district
1511	1511	taxable values of property necessary to generate maintenance and
1512	1512	operations tax revenue in the amount equal to a district's
1513	1513	entitlement under Section 48.202(a-1)(2) more efficiently than
1514	1514	would be possible if the parcel or item were annexed as a whole.
1515	1515	SECTION 75. Section 49.311, Education Code, is amended to
1516	1516	read as follows:
1517	1517	Sec. 49.311. STUDENT ATTENDANCE. A student who is a
1518	1518	resident of real property detached from a school district may
1519	1519	choose to attend school in that district or in the district to which
1520	1520	the property is annexed. For purposes of determining average
1521	1521	enrollment [daily attendance] under Section 48.005, the student
1522	1522	shall be counted in the district to which the property is annexed.
1523	1523	If the student chooses to attend school in the district from which
1524	1524	the property is detached, the state shall withhold any foundation
1525	1525	school funds from the district to which the property is annexed and
1526	1526	shall allocate to the district in which the student is attending
1527	1527	school those funds and the amount of funds equal to the difference
1528	1528	between the state funds the district is receiving for the student
1529	1529	and the district's cost in educating the student.
1530	1530	SECTION 76. Section 49.354(e), Education Code, is amended
1531	1531	to read as follows:
1532	1532	(e) A restored district's proportionate share of fund
1533	1533	balances, personal property, or indebtedness is equal to the
1534	1534	proportion that the number of students in average enrollment [daily
1535	1535	attendance] in the restored district bears to the number of
1536	1536	students in average enrollment [daily attendance] in the
1537	1537	consolidated district.
1538	1538	SECTION 77. Section 403.104(d), Government Code, is amended
1539	1539	to read as follows:
1540	1540	(d) The proportionate share of an independent school
1541	1541	district is determined by multiplying the total amount of the
1542	1542	payment available for distribution to school districts by the ratio
1543	1543	that the average number of [daily attendance for] students who
1544	1544	reside in the county and are enrolled in [who attend] that school
1545	1545	district bears to the average number of [daily attendance for] all
1546	1546	students who reside in the county and are enrolled in [who attend]
1547	1547	any independent school district. However, if there are fewer than
1548	1548	10 independent school districts located in whole or part in the
1549	1549	county and if an independent school district would receive under
1550	1550	this formula less than 10 percent of the total payment available for
1551	1551	distribution to independent school districts, the school
1552	1552	district's share shall be increased to 10 percent of the total
1553	1553	payment and the shares of the school districts that would receive
1554	1554	more than 10 percent under the formula shall be reduced
1555	1555	proportionately, but not to an amount less than 10 percent of the
1556	1556	total payment. [Each independent school district shall develop a
1557	1557	reasonable method for determining the average daily attendance for
1558	1558	students who reside in the county and who attend the school
1559	1559	district.]
1560	1560	SECTION 78. Section 1371.001(4), Government Code, is
1561	1561	amended to read as follows:
1562	1562	(4) "Issuer" means:
1563	1563	(A) a home-rule municipality that:
1564	1564	(i) adopted its charter under Section 5,
1565	1565	Article XI, Texas Constitution;
1566	1566	(ii) has a population of 50,000 or more; and
1567	1567	(iii) has outstanding long-term
1568	1568	indebtedness that is rated by a nationally recognized rating agency
1569	1569	for municipal securities in one of the four highest rating
1570	1570	categories for a long-term obligation;
1571	1571	(B) a conservation and reclamation district
1572	1572	created and organized as a river authority under Section 52,
1573	1573	Article III, or Section 59, Article XVI, Texas Constitution;
1574	1574	(C) a joint powers agency organized and operating
1575	1575	under Chapter 163, Utilities Code;
1576	1576	(D) a metropolitan rapid transit authority,
1577	1577	regional transportation authority, or coordinated county
1578	1578	transportation authority created, organized, or operating under
1579	1579	Chapter 451, 452, or 460, Transportation Code;
1580	1580	(E) a conservation and reclamation district
1581	1581	organized or operating as a navigation district under Section 52,
1582	1582	Article III, or Section 59, Article XVI, Texas Constitution;
1583	1583	(F) a district organized or operating under
1584	1584	Section 59, Article XVI, Texas Constitution, that has all or part of
1585	1585	two or more municipalities within its boundaries;
1586	1586	(G) a state agency, including a state institution
1587	1587	of higher education;
1588	1588	(H) a hospital authority created or operating
1589	1589	under Chapter 262 or 264, Health and Safety Code, in a county that:
1590	1590	(i) has a population of more than 3.3
1591	1591	million; or
1592	1592	(ii) is included, in whole or in part, in a
1593	1593	standard metropolitan statistical area of this state that includes
1594	1594	a county with a population of more than 2.5 million;
1595	1595	(I) a hospital district in a county that has a
1596	1596	population of more than 2.5 million;
1597	1597	(J) a nonprofit corporation organized to
1598	1598	exercise the powers of a higher education loan authority under
1599	1599	Section 53B.47(e), Education Code;
1600	1600	(K) a county:
1601	1601	(i) that has a population of more than 3.3
1602	1602	million; or
1603	1603	(ii) that, on the date of issuance of
1604	1604	obligations under this chapter, has authorized, outstanding, or any
1605	1605	combination of authorized and outstanding, indebtedness of at least
1606	1606	$100 million secured by and payable from the county's ad valorem
1607	1607	taxes and the authorized long-term indebtedness of which is rated
1608	1608	by a nationally recognized rating agency of securities issued by
1609	1609	local governments in one of the four highest rating categories for a
1610	1610	long-term obligation;
1611	1611	(L) an independent school district that has an
1612	1612	average enrollment [daily attendance] of 50,000 or more as
1613	1613	determined under Section 48.005, Education Code;
1614	1614	(M) a municipality or county operating under
1615	1615	Chapter 334, Local Government Code;
1616	1616	(N) a district created under Chapter 335, Local
1617	1617	Government Code;
1618	1618	(O) a junior college district that has a total
1619	1619	headcount enrollment of 40,000 or more based on enrollment in the
1620	1620	most recent regular semester; or
1621	1621	(P) an issuer, as defined by Section 1201.002,
1622	1622	that has:
1623	1623	(i) a principal amount of at least $100
1624	1624	million in outstanding long-term indebtedness, in long-term
1625	1625	indebtedness proposed to be issued, or in a combination of
1626	1626	outstanding or proposed long-term indebtedness; and
1627	1627	(ii) some amount of long-term indebtedness
1628	1628	outstanding or proposed to be issued that is rated in one of the
1629	1629	four highest rating categories for long-term debt instruments by a
1630	1630	nationally recognized rating agency for municipal securities,
1631	1631	without regard to the effect of any credit agreement or other form
1632	1632	of credit enhancement entered into in connection with the
1633	1633	obligation.
1634	1634	SECTION 79. Section 1431.001(3), Government Code, is
1635	1635	amended to read as follows:
1636	1636	(3) "Eligible school district" means an independent
1637	1637	school district that has an average enrollment [daily attendance]
1638	1638	of 190,000 or more as determined under Section 48.005, Education
1639	1639	Code.
1640	1640	SECTION 80. Section 325.011(a), Local Government Code, is
1641	1641	amended to read as follows:
1642	1642	(a) The district is governed by a board of directors
1643	1643	composed of five members, with two directors appointed by the
1644	1644	commissioners court of the county, two directors appointed by the
1645	1645	governing body of the municipality having the largest population in
1646	1646	the county, and one director appointed by the governing body of the
1647	1647	school district with the largest number of students in average
1648	1648	enrollment [daily attendance] in the county. The board shall
1649	1649	manage the district and administer this chapter.
1650	1650	SECTION 81. Section 1, Article 2688d, Vernon's Texas Civil
1651	1651	Statutes, is amended to read as follows:
1652	1652	Section 1. In all counties of the State where, according to
1653	1653	the preceding annual statistical report of the schools said county
1654	1654	has not more than four (4) school districts, with one (1) of such
1655	1655	districts comprising more than half of the county and having more
1656	1656	than two thousand (2,000) pupils in average enrollment [daily
1657	1657	attendance] in the one (1) district alone, and such district having
1658	1658	an assessed valuation of more than Twenty Million Dollars
1659	1659	($20,000,000) and where there is only one (1) common school
1660	1660	district in such county with an average enrollment [daily
1661	1661	attendance] of less than sixteen (16), the office of county
1662	1662	superintendent is hereby abolished, to be effective at the end of
1663	1663	the term of the incumbent county superintendent, as is now provided
1664	1664	by law.
1665	1665	SECTION 82. The following provisions of the Education Code
1666	1666	are repealed:
1667	1667	(1) Section 29.0822(d-1); and
1668	1668	(2) Section 48.007.
1669	1669	SECTION 83. This Act takes effect September 1, 2025.