Bill Text: TX HB31 | 2023-2024 | 88th Legislature | Introduced

Bill Title: Relating to the use of average enrollment for purposes of the public school finance system.

Spectrum: Moderate Partisan Bill (Democrat 19-4)

Status: (Introduced - Dead) 2023-02-23 - Referred to Public Education [HB31 Detail]

Download: Texas-2023-HB31-Introduced.html
  88R522 KJE-D
 
  By: Hinojosa H.B. No. 31
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the use of average enrollment for purposes of the public
  school finance system.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 48.005, Education Code, is amended to
  read as follows:
         Sec. 48.005.  AVERAGE ENROLLMENT [DAILY ATTENDANCE]. (a)
  In this chapter, average enrollment [daily attendance] is:
               (1)  the average number of students enrolled in the
  school district during a school year [quotient of the sum of
  attendance for each day of the minimum number of days of instruction
  as described under Section 25.081(a) divided by the minimum number
  of days of instruction;
               [(2)  for a district that operates under a flexible
  year program under Section 29.0821, the quotient of the sum of
  attendance for each actual day of instruction as permitted by
  Section 29.0821(b)(1) divided by the number of actual days of
  instruction as permitted by Section 29.0821(b)(1);
               [(3)  for a district that operates under a flexible
  school day program under Section 29.0822, the average daily
  attendance as calculated by the commissioner in accordance with
  Sections 29.0822(d) and (d-1)]; or
               (2) [(4)]  for a district that operates a half-day
  program or a full-day program under Section 29.153(c), one-half of
  the average enrollment [daily attendance] calculated under
  Subdivision (1).
         (b)  A school district that experiences a decline of two
  percent or more in average enrollment [daily attendance] shall be
  funded on the basis of:
               (1)  the actual average enrollment [daily attendance]
  of the preceding school year, if the decline is the result of the
  closing or reduction in personnel of a military base; or
               (2)  subject to Subsection (e), an average enrollment
  [daily attendance] not to exceed 98 percent of the actual average
  enrollment [daily attendance] of the preceding school year, if the
  decline is not the result of the closing or reduction in personnel
  of a military base.
         (c)  The commissioner shall adjust the average enrollment
  [daily attendance] of a school district that has a significant
  percentage of students who are migratory children as defined by 20
  U.S.C. Section 6399.
         (d)  The commissioner may adjust the average enrollment
  [daily attendance] of a school district in which a disaster, flood,
  extreme weather condition, fuel curtailment, or other calamity has
  a significant effect on the district's enrollment [attendance]. In
  addition to providing the adjustment for the amount of
  instructional days during the semester in which the calamity first
  occurred, an adjustment under this section may only be provided
  based on a particular calamity for an additional amount of
  instructional days equivalent to one school year.  The commissioner
  may divide the adjustment between two consecutive school years.
         (e)  For each school year, the commissioner shall adjust the
  average enrollment [daily attendance] of school districts that are
  entitled to funding on the basis of an adjusted average enrollment
  [daily attendance] under Subsection (b)(2) so that:
               (1)  all districts are funded on the basis of the same
  percentage of the preceding year's actual average enrollment [daily
  attendance]; and
               (2)  the total cost to the state does not exceed the
  amount specifically appropriated for that year for purposes of
  Subsection (b)(2).
         (f)  An open-enrollment charter school is not entitled to
  funding based on an adjustment under Subsection (b)(2).
         (g)  If a student may receive course credit toward the
  student's high school academic requirements and toward the
  student's higher education academic requirements for a single
  course, including a course provided under Section 28.009 by a
  public institution of higher education, the time during which the
  student attends the course shall be counted as part of the minimum
  number of instructional hours required for a student to be
  considered a full-time student in average enrollment [daily
  attendance] for purposes of this section.
         [(g-1)  The commissioner shall adopt rules to calculate
  average daily attendance for students participating in a blended
  learning program in which classroom instruction is supplemented
  with applied workforce learning opportunities, including
  participation of students in internships, externships, and
  apprenticeships.]
         (h)  Time [Subject to rules adopted by the commissioner under
  Section 48.007(b), time] that a student participates in an
  off-campus instructional program provided by an entity other than a
  school district or open-enrollment charter school and approved by
  the commissioner in accordance with commissioner rule [under
  Section 48.007(a)] shall be counted as part of the minimum number of
  instructional hours required for a student to be considered a
  full-time student in average enrollment [daily attendance] for
  purposes of this section.
         (h-1)  Subject to rules adopted by the commissioner under
  Section 48.007(b), time that a student participates in a course or
  program provided under Section 48.0071(b) shall be counted as part
  of the minimum number of instructional hours required for a student
  to be considered a full-time student in average daily attendance
  for purposes of this section.  This subsection expires September 1,
  2023.
         (i)  A district or a charter school operating under Chapter
  12 that operates a prekindergarten program is eligible to receive
  one-half of average enrollment [daily attendance] under Subsection
  (a) if the district's or charter school's prekindergarten program
  provides at least 32,400 minutes of instructional time to students.
         (j)  A district or charter school is eligible to earn full
  average enrollment [daily attendance] under Subsection (a) if the
  district or school provides at least 43,200 minutes of
  instructional time to students enrolled in:
               (1)  a dropout recovery school or program operating
  under Section 12.1141(c) or Section 39.0548;
               (2)  an alternative education program operating under
  Section 37.008;
               (3)  a school program located at a day treatment
  facility, residential treatment facility, psychiatric hospital, or
  medical hospital;
               (4)  a school program offered at a correctional
  facility; or
               (5)  a school operating under Subchapter G, Chapter 12.
         (k)  A charter school operating under a charter granted under
  Chapter 12 before January 1, 2015, is eligible to earn full average
  enrollment [daily attendance] under Subsection (a), as that
  subsection existed immediately before January 1, 2015, for:
               (1)  all campuses of the charter school operating
  before January 1, 2015; and
               (2)  any campus or site expansion approved on or after
  January 1, 2015, provided that the charter school received an
  academic accountability performance rating of C or higher, and the
  campus or site expansion is approved by the commissioner.
         (l)  A school district campus or charter school described by
  Subsection (j) may operate more than one program and be eligible for
  full average enrollment [daily attendance] for each program if the
  programs operated by the district campus or charter school satisfy
  all applicable state and federal requirements.
         (m)  The commissioner shall adopt rules necessary to
  implement this section, including rules that:
               (1)  determine the method to calculate the average
  number of students enrolled in a school district during a school
  year;
               (2)  establish the minimum amount of instructional time
  per day that allows a school district or charter school to be
  eligible for full average enrollment [daily attendance], which may
  differ based on the instructional program offered by the district
  or charter school;
               (3) [(2)]  establish the requirements necessary for a
  school district or charter school to be eligible for one-half of
  average enrollment [daily attendance], which may differ based on
  the instructional program offered by the district or charter
  school;
               (4) [(3)]  proportionally reduce the average
  enrollment [daily attendance] for a school district if any campus
  or instructional program in the district provides fewer than the
  required minimum minutes of instruction to students; and
               (5) [(4)]  allow a grade or course repeated under
  Section 28.02124 to qualify for average enrollment [daily
  attendance] even if the student previously passed or earned credit
  for the grade or course, if the grade or course would otherwise be
  eligible.
         (m-1)  Except for students enrolled in programs or courses
  offered under Chapter 30A or Section 48.053, a school district or
  open-enrollment charter school may not count for purposes of
  calculating the district's or school's average daily attendance a
  student who received virtual or remote instruction for a majority
  of the instructional days during the preceding school year if the
  student:
               (1)  did not achieve satisfactory performance or higher
  or the equivalent in the preceding school year on:
                     (A)  each assessment instrument administered to
  the student under Section 39.023 or 39.025; or
                     (B)  if the student was not administered an
  assessment instrument that was required to be administered to the
  student under Section 39.023 or 39.025 during the preceding school
  year, an assessment instrument designed to show grade-level
  proficiency in the essential knowledge and skills identified under
  Section 28.002 by the State Board of Education for the student's
  grade level;
               (2)  had a number of unexcused absences that exceeds 10
  percent of the number of instructional days in the preceding school
  year; or
               (3)  did not earn a grade of C or higher or the
  equivalent in each of the foundation curriculum courses taken
  virtually or remotely in the preceding school year.
         (m-2)  Subsection (m-1) and this subsection expire September
  1, 2023.
         (n)  To assist school districts in implementing this section
  as amended by H.B. 2442, Acts of the 85th Legislature, Regular
  Session, 2017, the commissioner may waive a requirement of this
  section or adopt rules to implement this section.
         SECTION 2.  Section 7.062(a), Education Code, is amended to
  read as follows:
         (a)  In this section, "wealth per student" means a school
  district's taxable value of property as determined under Subchapter
  M, Chapter 403, Government Code, or, if applicable, Section 48.258,
  divided by the district's average enrollment [daily attendance] as
  determined under Section 48.005.
         SECTION 3.  Section 11.052(f), Education Code, is amended to
  read as follows:
         (f)  If single-member trustee districts are adopted or
  approved as provided by this section, the board shall divide the
  school district into the appropriate number of trustee districts,
  based on the number of members of the board that are to be elected
  from single-member trustee districts, and shall number each trustee
  district. The trustee districts must be compact and contiguous and
  must be as nearly as practicable of equal population. In a district
  with 150,000 or more students in average enrollment [daily
  attendance], the boundary of a trustee district may not cross a
  county election precinct boundary except at a point at which the
  boundary of the school district crosses the county election
  precinct boundary. Trustee districts must be drawn not later than
  the 90th day before the date of the first election of trustees from
  those districts.
         SECTION 4.  Sections 12.106(a), (a-2), and (d), Education
  Code, are amended to read as follows:
         (a)  A charter holder is entitled to receive for the
  open-enrollment charter school funding under Chapter 48 equal to
  the amount of funding per student in weighted average enrollment
  [daily attendance], excluding the adjustment under Section 48.052,
  the funding under Sections 48.101, 48.110, 48.111, and 48.112, and
  enrichment funding under Section 48.202(a), to which the charter
  holder would be entitled for the school under Chapter 48 if the
  school were a school district without a tier one local share for
  purposes of Section 48.266.
         (a-2)  In addition to the funding provided by Subsection (a),
  a charter holder is entitled to receive for the open-enrollment
  charter school an allotment per student in average enrollment
  [daily attendance] in an amount equal to the difference between:
               (1)  the product of:
                     (A)  the quotient of:
                           (i)  the total amount of funding provided to
  eligible school districts under Section 48.101(b) or (c); and
                           (ii)  the total number of students in
  average enrollment [daily attendance] in school districts that
  receive an allotment under Section 48.101(b) or (c); and
                     (B)  the sum of one and the quotient of:
                           (i)  the total number of students in average
  enrollment [daily attendance] in school districts that receive an
  allotment under Section 48.101(b) or (c); and
                           (ii)  the total number of students in
  average enrollment [daily attendance] in school districts
  statewide; and
               (2)  $125.
         (d)  Subject to Subsection (e), in addition to other amounts
  provided by this section, a charter holder is entitled to receive,
  for the open-enrollment charter school, funding per student in
  average enrollment [daily attendance] in an amount equal to the
  guaranteed level of state and local funds per student per cent of
  tax effort under Section 46.032(a) multiplied by the lesser of:
               (1)  the state average interest and sinking fund tax
  rate imposed by school districts for the current year; or
               (2)  a rate that would result in a total amount to which
  charter schools are entitled under this subsection for the current
  year equal to $60 million.
         SECTION 5.  Sections 12.263(a), (b), and (c), Education
  Code, as effective September 1, 2023, are amended to read as
  follows:
         (a)  Except as otherwise provided by this section, funding
  for an adult education program operated under a charter granted
  under this subchapter is an amount per participant through the
  Foundation School Program equal to the amount of state funding per
  student in weighted average enrollment [daily attendance] that
  would be allocated under the Foundation School Program for the
  student's attendance at an open-enrollment charter school in
  accordance with Section 12.106.
         (b)  For purposes of determining the average enrollment
  [daily attendance] of an adult education program operated under a
  charter granted under this subchapter, a student is considered to
  be in average enrollment [daily attendance, with a 100 percent
  attendance rate,] for:
               (1)  all of the instructional days of the school year,
  if the student is enrolled for at least 75 percent of the school
  year;
               (2)  half of the instructional days of the school year,
  if the student is enrolled for at least 50 percent but less than 75
  percent of the school year;
               (3)  a quarter of the instructional days of the school
  year, if the student is enrolled for at least 25 percent but less
  than 50 percent of the school year; or
               (4)  one-tenth of the instructional days of the school
  year, if the student is enrolled for at least 10 percent but less
  than 25 percent of the school year.
         (c)  A student enrolled in an adult education program
  operated under a charter granted under this subchapter for less
  than 10 percent of a school year may not be counted toward the adult
  education program's average enrollment [daily attendance] for that
  school year.
         SECTION 6.  Section 13.051(c), Education Code, is amended to
  read as follows:
         (c)  Territory that does not have residents may be detached
  from a school district and annexed to another school district if:
               (1)  the total taxable value of the property in the
  territory according to the most recent certified appraisal roll for
  each school district is not greater than:
                     (A)  five percent of the district's taxable value
  of all property in that district as determined under Subchapter M,
  Chapter 403, Government Code; and
                     (B)  $5,000 property value per student in average
  enrollment [daily attendance] as determined under Section 48.005;
  and
               (2)  the school district from which the property will
  be detached does not own any real property located in the territory.
         SECTION 7.  Section 13.102, Education Code, is amended to
  read as follows:
         Sec. 13.102.  MINIMUM AREA AND ENROLLMENT [ATTENDANCE]
  REQUIREMENTS. A new district may not be created with an area of
  less than nine square miles or fewer than 8,000 students in average
  enrollment [daily attendance], and a district may not be reduced to
  an area of less than nine square miles or fewer than 8,000 students
  in average enrollment [daily attendance].
         SECTION 8.  Section 13.283, Education Code, is amended to
  read as follows:
         Sec. 13.283.  PAYMENTS REDUCED. The incentive aid payments
  shall be reduced in direct proportion to any reduction in the
  average enrollment [daily attendance] as determined under Section
  48.005 of the reorganized school district for the preceding year.
         SECTION 9.  Section 19.009(d-2), Education Code, is amended
  to read as follows:
         (d-2)  Beginning with the 2009-2010 school year, the
  district shall increase the monthly salary of each classroom
  teacher, full-time speech pathologist, full-time librarian,
  full-time school counselor certified under Subchapter B, Chapter
  21, and full-time school nurse employed by the district by the
  greater of:
               (1)  $80; or
               (2)  the maximum uniform amount that, when combined
  with any resulting increases in the amount of contributions made by
  the district for social security coverage for the specified
  employees or by the district on behalf of the specified employees
  under Section 825.405, Government Code, may be provided using an
  amount equal to the product of $60 multiplied by the number of
  students in weighted average enrollment [daily attendance] in the
  district during the 2009-2010 school year.
         SECTION 10.  Section 25.038, Education Code, is amended to
  read as follows:
         Sec. 25.038.  TUITION FEE FOR TRANSFER STUDENTS. The
  receiving school district may charge a tuition fee to the extent
  that the district's actual expenditure per student in average
  enrollment [daily attendance], as determined by its board of
  trustees, exceeds the sum the district benefits from state aid
  sources as provided by Section 25.037. However, unless a tuition
  fee is prescribed and set out in a transfer agreement before its
  execution by the parties, an increase in tuition charge may not be
  made for the year of that transfer that exceeds the tuition charge,
  if any, of the preceding school year.
         SECTION 11.  Section 25.045(c), Education Code, is amended
  to read as follows:
         (c)  A student who transfers to another school district under
  this section may not be charged tuition.  The student is included in
  the average enrollment [daily attendance] of the district in which
  the student attends school.
         SECTION 12.  Sections 25.081(e) and (f), Education Code, are
  amended to read as follows:
         (e)  A school district or education program is exempt from
  the minimum minutes of operation requirement if the district's or
  program's average enrollment [daily attendance] is calculated
  under Section 48.005(j).
         (f)  The commissioner may proportionally reduce the amount
  of funding a district receives under Chapter 46, 48, or 49 and the
  average enrollment [daily attendance] calculation for the district
  if the district operates on a calendar that provides fewer minutes
  of operation than required under Subsection (a).
         SECTION 13.  Section 25.087(d), Education Code, is amended
  to read as follows:
         (d)  A student whose absence is excused under Subsection (b),
  (b-1), (b-2), (b-4), (b-5), (b-7), or (c) may not be penalized for
  that absence and shall be counted as if the student attended school
  for purposes of funding under Chapter 48 [calculating the average
  daily attendance of students in the school district]. A student
  whose absence is excused under Subsection (b), (b-1), (b-2), (b-4),
  (b-5), (b-7), or (c) shall be allowed a reasonable time to make up
  school work missed on those days. If the student satisfactorily
  completes the school work, the day of absence shall be counted as a
  day of compulsory attendance.
         SECTION 14.  Section 25.111, Education Code, is amended to
  read as follows:
         Sec. 25.111.  STUDENT/TEACHER RATIOS. Except as provided by
  Section 25.112, each school district must employ a sufficient
  number of teachers certified under Subchapter B, Chapter 21, to
  maintain an average ratio of not less than one teacher for each 20
  students in average enrollment [daily attendance].
         SECTION 15.  Sections 25.112(a) and (b), Education Code, are
  amended to read as follows:
         (a)  Except as otherwise authorized by this section, a school
  district may not enroll more than 22 students in a prekindergarten,
  kindergarten, first, second, third, or fourth grade class. That
  limitation does not apply during:
               (1)  any 12-week period of the school year selected by
  the district, in the case of a district whose average enrollment
  [daily attendance] is adjusted under Section 48.005(c); or
               (2)  the last 12 weeks of any school year in the case of
  any other district.
         (b)  Not later than the 30th day after the first day of the
  12-week period for which a district whose average enrollment [daily
  attendance] is adjusted under Section 48.005(c) is claiming an
  exemption under Subsection (a), the district shall notify the
  commissioner in writing that the district is claiming an exemption
  for the period stated in the notice.
         SECTION 16.  Section 29.008(b), Education Code, is amended
  to read as follows:
         (b)  Except as provided by Subsection (c), costs of an
  approved contract for residential placement may be paid from a
  combination of federal, state, and local funds. The local share of
  the total contract cost for each student is that portion of the
  local tax effort that exceeds the district's local fund assignment
  under Section 48.256, divided by the average enrollment [daily
  attendance] in the district. If the contract involves a private
  facility, the state share of the total contract cost is that amount
  remaining after subtracting the local share. If the contract
  involves a public facility, the state share is that amount
  remaining after subtracting the local share from the portion of the
  contract that involves the costs of instructional and related
  services. For purposes of this subsection, "local tax effort"
  means the total amount of money generated by taxes imposed for debt
  service and maintenance and operation less any amounts paid into a
  tax increment fund under Chapter 311, Tax Code.
         SECTION 17.  Section 29.014(b), Education Code, is amended
  to read as follows:
         (b)  A school district to which this section applies may
  operate an extended year program for a period not to exceed 45 days.
  [The district's average daily attendance shall be computed for the
  regular school year plus the extended year.]
         SECTION 18.  Section 29.081(f), Education Code, is amended
  to read as follows:
         (f)  The commissioner shall include students enrolled in
  [attendance in] a program under Subsection (e) in the computation
  of the district's average enrollment [daily attendance] for funding
  purposes.
         SECTION 19.  Section 29.0822(d), Education Code, is amended
  to read as follows:
         (d)  The commissioner may adopt rules for the administration
  of this section, including rules establishing application
  requirements. [Subject to Subsection (d-1), the commissioner shall
  calculate average daily attendance for students served under this
  section. The commissioner shall allow accumulations of hours of
  instruction for students whose schedule would not otherwise allow
  full state funding. Funding under this subsection shall be
  determined based on the number of instructional days in the school
  district calendar and a seven-hour school day, but attendance may
  be cumulated over a school year, including any summer or vacation
  session. The attendance of students who accumulate less than the
  number of attendance hours required under this subsection shall be
  proportionately reduced for funding purposes. The commissioner
  may:
               [(1)  set maximum funding amounts for an individual
  course under this section; and
               [(2)  limit funding for the attendance of a student
  described by Subsection (a)(3) in a course under this section to
  funding only for the attendance necessary for the student to earn
  class credit that, as a result of attendance requirements under
  Section 25.092, the student would not otherwise be able to receive
  without retaking the class.]
         SECTION 20.  Section 29.184(b), Education Code, is amended
  to read as follows:
         (b)  A student who attends career and technology classes at
  another school under a contract authorized by Subsection (a) is
  included in the average enrollment [daily attendance] of the
  district in which the student is regularly enrolled.
         SECTION 21.  Sections 29.203(a) and (c), Education Code, are
  amended to read as follows:
         (a)  A student who under this subchapter uses a public
  education grant to attend a public school in a school district other
  than the district in which the student resides is included in the
  average enrollment [daily attendance] of the district in which the
  student attends school.
         (c)  A school district is entitled to additional facilities
  assistance under Section 48.301 if the district agrees to:
               (1)  accept a number of students using public education
  grants that is at least one percent of the district's average
  enrollment [daily attendance] for the preceding school year; and
               (2)  provide services to each student until the student
  either voluntarily decides to attend a school in a different
  district or graduates from high school.
         SECTION 22.  Section 29.403(b), Education Code, is amended
  to read as follows:
         (b)  A student who is enrolled in a program under this
  subchapter is included in determining the average enrollment [daily
  attendance] under Section 48.005 of the partnering school district.
         SECTION 23.  Section 29.457(a), Education Code, is amended
  to read as follows:
         (a)  In addition to other funding to which a school district
  is entitled under this code, each district in which alleged
  offender residents attend school is entitled to an annual allotment
  of $5,100 for each resident in average enrollment [daily
  attendance] or a different amount for any year provided by
  appropriation.
         SECTION 24.  Section 30.003(b), Education Code, is amended
  to read as follows:
         (b)  If the student is admitted to the school for a full-time
  program for the equivalent of two long semesters, the district's
  share of the cost is an amount equal to the dollar amount of
  maintenance and debt service taxes imposed by the district for that
  year divided by the district's average enrollment [daily
  attendance] for the preceding year.
         SECTION 25.  Section 30.102(a), Education Code, is amended
  to read as follows:
         (a)  The Texas Juvenile Justice Department is entitled to
  receive the state available school fund apportionment based on the
  average enrollment [daily attendance] in the department's
  educational programs of students who are at least three years of age
  and not older than 21 years of age.
         SECTION 26.  Section 30A.151(f), Education Code, is amended
  to read as follows:
         (f)  For a full-time electronic course program offered
  through the state virtual school network for a grade level at or
  above grade level three but not above grade level eight, a school
  district or open-enrollment charter school is entitled to receive
  federal, state, and local funding for a student enrolled in the
  program in an amount equal to the funding the district or school
  would otherwise receive for a student enrolled in the district or
  school. [The district or school may calculate the average daily
  attendance of a student enrolled in the program based on:
               [(1) hours of contact with the student;
               [(2) the student's successful completion of a course;
  or
               [(3) a method approved by the commissioner.]
         SECTION 27.  Section 33.157, Education Code, is amended to
  read as follows:
         Sec. 33.157.  PARTICIPATION IN PROGRAM. An elementary or
  secondary school receiving funding under Section 33.156 shall
  participate in a local Communities In Schools program if the number
  of students enrolled in the school who are at risk of dropping out
  of school is equal to at least 10 percent of the number of students
  in average enrollment [daily attendance] at the school, as
  determined by the agency.
         SECTION 28.  Section 37.0061, Education Code, is amended to
  read as follows:
         Sec. 37.0061.  FUNDING FOR ALTERNATIVE EDUCATION SERVICES IN
  JUVENILE RESIDENTIAL FACILITIES. A school district that provides
  education services to pre-adjudicated and post-adjudicated
  students who are confined by court order in a juvenile residential
  facility operated by a juvenile board is entitled to count such
  students in the district's average enrollment [daily attendance]
  for purposes of receipt of state funds under the Foundation School
  Program. If the district has a local revenue level greater than the
  guaranteed local revenue level but less than the level established
  under Section 48.257, the district in which the student is enrolled
  on the date a court orders the student to be confined to a juvenile
  residential facility shall transfer to the district providing
  education services an amount equal to the difference between the
  average Foundation School Program costs per student of the district
  providing education services and the sum of the state aid and the
  money from the available school fund received by the district that
  is attributable to the student for the portion of the school year
  for which the district provides education services to the student.
         SECTION 29.  Section 37.008(f), Education Code, is amended
  to read as follows:
         (f)  A student removed to a disciplinary alternative
  education program is counted in computing the average enrollment
  [daily attendance] of students in the district [for the student's
  time in actual attendance in the program].
         SECTION 30.  Section 37.011(a-4), Education Code, is amended
  to read as follows:
         (a-4)  A school district located in a county considered to be
  a county with a population of 125,000 or less under Subsection (a-3)
  shall provide educational services to a student who is expelled
  from school under this chapter. The district is entitled to count
  the student in the district's average enrollment [daily attendance]
  for purposes of receipt of state funds under the Foundation School
  Program. An educational placement under this section may include:
               (1)  the district's disciplinary alternative education
  program; or
               (2)  a contracted placement with:
                     (A)  another school district;
                     (B)  an open-enrollment charter school;
                     (C)  an institution of higher education;
                     (D)  an adult literacy council; or
                     (E)  a community organization that can provide an
  educational program that allows the student to complete the credits
  required for high school graduation.
         SECTION 31.  Sections 39.027(c) and (f), Education Code, are
  amended to read as follows:
         (c)  The commissioner shall develop and adopt a process for
  reviewing the exemption process of a school district or shared
  services arrangement that gives an exemption under Subsection
  (a)(1) as follows:
               (1)  to more than five percent of the students in the
  special education program, in the case of a district or shared
  services arrangement with an average enrollment [daily attendance]
  of at least 1,600;
               (2)  to more than 10 percent of the students in the
  special education program, in the case of a district or shared
  services arrangement with an average enrollment [daily attendance]
  of at least 190 and not more than 1,599; or
               (3)  to the greater of more than 10 percent of the
  students in the special education program or to at least five
  students in the special education program, in the case of a district
  or shared services arrangement with an average enrollment [daily
  attendance] of not more than 189.
         (f)  In this section, "average enrollment [daily
  attendance]" is computed in the manner provided by Section 48.005.
         SECTION 32.  Section 39.053(g-1), Education Code, is amended
  to read as follows:
         (g-1)  In computing dropout and completion rates such as high
  school graduation rates under Subsection (c)(1)(B)(ix), the
  commissioner shall exclude:
               (1)  students who are ordered by a court to attend a
  high school equivalency certificate program but who have not yet
  earned a high school equivalency certificate;
               (2)  students who were previously reported to the state
  as dropouts, including a student who is reported as a dropout,
  reenrolls, and drops out again, regardless of the number of times of
  reenrollment and dropping out;
               (3)  students in attendance who are not in membership
  for purposes of average enrollment [daily attendance];
               (4)  students whose initial enrollment in a school in
  the United States in grades 7 through 12 was as an unschooled asylee
  or refugee as defined by Section 39.027(a-1);
               (5)  students who are detained at a county
  pre-adjudication or post-adjudication juvenile detention facility
  and:
                     (A)  in the district exclusively as a function of
  having been detained at the facility but are otherwise not students
  of the district in which the facility is located; or
                     (B)  provided services by an open-enrollment
  charter school exclusively as the result of having been detained at
  the facility;
               (6)  students who are incarcerated in state jails and
  federal penitentiaries as adults and as persons certified to stand
  trial as adults; and
               (7)  students who have suffered a condition, injury, or
  illness that requires substantial medical care and leaves the
  student:
                     (A)  unable to attend school; and
                     (B)  assigned to a medical or residential
  treatment facility.
         SECTION 33.  Section 39.262(a), Education Code, is amended
  to read as follows:
         (a)  The governor may present a financial award to the
  schools or districts that the commissioner determines have
  demonstrated the highest levels of sustained success or the
  greatest improvement in achieving the education goals. For each
  student in average enrollment [daily attendance], each of those
  schools or districts is entitled to an amount set for the award for
  which the school or district is selected by the commissioner,
  subject to any limitation set by the commissioner on the total
  amount that may be awarded to a school or district.
         SECTION 34.  Section 43.001(c), Education Code, is amended
  to read as follows:
         (c)  The term "scholastic population" in Subsection (b) or
  any other law governing the apportionment, distribution, and
  transfer of the available school fund means all students of school
  age [enrolled] in average enrollment [daily attendance] the
  preceding school year in the public elementary and high school
  grades of school districts within or under the jurisdiction of a
  county of this state.
         SECTION 35.  Section 44.004(c), Education Code, is amended
  to read as follows:
         (c)  The notice of public meeting to discuss and adopt the
  budget and the proposed tax rate may not be smaller than one-quarter
  page of a standard-size or a tabloid-size newspaper, and the
  headline on the notice must be in 18-point or larger type. Subject
  to Subsection (d), the notice must:
               (1)  contain a statement in the following form:
  "NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
         "The (name of school district) will hold a public meeting at
  (time, date, year) in (name of room, building, physical location,
  city, state). The purpose of this meeting is to discuss the school
  district's budget that will determine the tax rate that will be
  adopted. Public participation in the discussion is invited." The
  statement of the purpose of the meeting must be in bold type. In
  reduced type, the notice must state: "The tax rate that is
  ultimately adopted at this meeting or at a separate meeting at a
  later date may not exceed the proposed rate shown below unless the
  district publishes a revised notice containing the same information
  and comparisons set out below and holds another public meeting to
  discuss the revised notice." In addition, in reduced type, the
  notice must state: "Visit Texas.gov/PropertyTaxes to find a link to
  your local property tax database on which you can easily access
  information regarding your property taxes, including information
  about proposed tax rates and scheduled public hearings of each
  entity that taxes your property.";
               (2)  contain a section entitled "Comparison of Proposed
  Budget with Last Year's Budget," which must show the difference,
  expressed as a percent increase or decrease, as applicable, in the
  amounts budgeted for the preceding fiscal year and the amount
  budgeted for the fiscal year that begins in the current tax year for
  each of the following:
                     (A)  maintenance and operations;
                     (B)  debt service; and
                     (C)  total expenditures;
               (3)  contain a section entitled "Total Appraised Value
  and Total Taxable Value," which must show the total appraised value
  and the total taxable value of all property and the total appraised
  value and the total taxable value of new property taxable by the
  district in the preceding tax year and the current tax year as
  calculated under Section 26.04, Tax Code;
               (4)  contain a statement of the total amount of the
  outstanding and unpaid bonded indebtedness of the school district;
               (5)  contain a section entitled "Comparison of Proposed
  Rates with Last Year's Rates," which must:
                     (A)  show in rows the tax rates described by
  Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
  property, for columns entitled "Maintenance & Operations,"
  "Interest & Sinking Fund," and "Total," which is the sum of
  "Maintenance & Operations" and "Interest & Sinking Fund":
                           (i)  the school district's "Last Year's
  Rate";
                           (ii)  the "Rate to Maintain Same Level of
  Maintenance & Operations Revenue & Pay Debt Service," which:
                                 (a)  in the case of "Maintenance &
  Operations," is the tax rate that, when applied to the current
  taxable value for the district, as certified by the chief appraiser
  under Section 26.01, Tax Code, and as adjusted to reflect changes
  made by the chief appraiser as of the time the notice is prepared,
  would impose taxes in an amount that, when added to state funds to
  be distributed to the district under Chapter 48, would provide the
  same amount of maintenance and operations taxes and state funds
  distributed under Chapter 48 per student in average enrollment
  [daily attendance] for the applicable school year that was
  available to the district in the preceding school year; and
                                 (b)  in the case of "Interest & Sinking
  Fund," is the tax rate that, when applied to the current taxable
  value for the district, as certified by the chief appraiser under
  Section 26.01, Tax Code, and as adjusted to reflect changes made by
  the chief appraiser as of the time the notice is prepared, and when
  multiplied by the district's anticipated collection rate, would
  impose taxes in an amount that, when added to state funds to be
  distributed to the district under Chapter 46 and any excess taxes
  collected to service the district's debt during the preceding tax
  year but not used for that purpose during that year, would provide
  the amount required to service the district's debt; and
                           (iii)  the "Proposed Rate";
                     (B)  contain fourth and fifth columns aligned with
  the columns required by Paragraph (A) that show, for each row
  required by Paragraph (A):
                           (i)  the "Local Revenue per Student," which
  is computed by multiplying the district's total taxable value of
  property, as certified by the chief appraiser for the applicable
  school year under Section 26.01, Tax Code, and as adjusted to
  reflect changes made by the chief appraiser as of the time the
  notice is prepared, by the total tax rate, and dividing the product
  by the number of students in average enrollment [daily attendance]
  in the district for the applicable school year; and
                           (ii)  the "State Revenue per Student," which
  is computed by determining the amount of state aid received or to be
  received by the district under Chapters 43, 46, and 48 and dividing
  that amount by the number of students in average enrollment [daily
  attendance] in the district for the applicable school year; and
                     (C)  contain an asterisk after each calculation
  for "Interest & Sinking Fund" and a footnote to the section that, in
  reduced type, states "The Interest & Sinking Fund tax revenue is
  used to pay for bonded indebtedness on construction, equipment, or
  both. The bonds, and the tax rate necessary to pay those bonds, were
  approved by the voters of this district.";
               (6)  contain a section entitled "Comparison of Proposed
  Levy with Last Year's Levy on Average Residence," which must:
                     (A)  show in rows the information described by
  Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
  entitled "Last Year" and "This Year":
                           (i)  "Average Market Value of Residences,"
  determined using the same group of residences for each year;
                           (ii)  "Average Taxable Value of Residences,"
  determined after taking into account the limitation on the
  appraised value of residences under Section 23.23, Tax Code, and
  after subtracting all homestead exemptions applicable in each year,
  other than exemptions available only to disabled persons or persons
  65 years of age or older or their surviving spouses, and using the
  same group of residences for each year;
                           (iii)  "Last Year's Rate Versus Proposed
  Rate per $100 Value"; and
                           (iv)  "Taxes Due on Average Residence,"
  determined using the same group of residences for each year; and
                     (B)  contain the following information: "Increase
  (Decrease) in Taxes" expressed in dollars and cents, which is
  computed by subtracting the "Taxes Due on Average Residence" for
  the preceding tax year from the "Taxes Due on Average Residence" for
  the current tax year;
               (7)  contain the following statement in bold print:
  "Under state law, the dollar amount of school taxes imposed on the
  residence of a person 65 years of age or older or of the surviving
  spouse of such a person, if the surviving spouse was 55 years of age
  or older when the person died, may not be increased above the amount
  paid in the first year after the person turned 65, regardless of
  changes in tax rate or property value.";
               (8)  contain the following statement in bold print:
  "Notice of Voter-Approval Rate: The highest tax rate the district
  can adopt before requiring voter approval at an election is (the
  school district voter-approval rate determined under Section
  26.08, Tax Code). This election will be automatically held if the
  district adopts a rate in excess of the voter-approval rate of (the
  school district voter-approval rate)."; and
               (9)  contain a section entitled "Fund Balances," which
  must include the estimated amount of interest and sinking fund
  balances and the estimated amount of maintenance and operation or
  general fund balances remaining at the end of the current fiscal
  year that are not encumbered with or by corresponding debt
  obligation, less estimated funds necessary for the operation of the
  district before the receipt of the first payment under Chapter 48 in
  the succeeding school year.
         SECTION 36.  Sections 45.0011(a), (d), and (e), Education
  Code, are amended to read as follows:
         (a)  This section applies only to an independent school
  district that, at the time of the issuance of obligations and
  execution of credit agreements under this section, has:
               (1)  at least 2,000 students in average enrollment
  [daily attendance]; or
               (2)  a combined aggregate principal amount of at least
  $50 million of outstanding bonds and voted but unissued bonds.
         (d)  A district may not issue bonds to which this section
  applies in an amount greater than the greater of:
               (1)  25 percent of the sum of:
                     (A)  the aggregate principal amount of all
  district debt payable from ad valorem taxes that is outstanding at
  the time the bonds are issued; and
                     (B)  the aggregate principal amount of all bonds
  payable from ad valorem taxes that have been authorized but not
  issued;
               (2)  $25 million, in a district that has at least 3,500
  but not more than 15,000 students in average enrollment [daily
  attendance]; or
               (3)  $50 million, in a district that has more than
  15,000 students in average enrollment [daily attendance].
         (e)  In this section, average enrollment [daily attendance]
  is determined in the manner provided by Section 48.005.
         SECTION 37.  Section 45.006(a), Education Code, is amended
  to read as follows:
         (a)  This section applies only to a school district that:
               (1)  has an average enrollment [daily attendance] of
  less than 10,000; and
               (2)  is located in whole or part in a municipality with
  a population of less than 25,000 that is located in a county with a
  population of 200,000 or more bordering another county with a
  population of 2.8 million or more.
         SECTION 38.  Section 45.105(d), Education Code, is amended
  to read as follows:
         (d)  An independent school district that has in its limits a
  municipality with a population of 150,000 or more or that contains
  at least 170 square miles, has $850 million or more assessed value
  of taxable property on the most recent approved tax roll and has a
  growth in average enrollment [daily attendance] of 11 percent or
  more for each of the preceding five years as determined by the
  agency may, in buying school sites or additions to school sites and
  in building school buildings, issue and deliver negotiable or
  nonnegotiable notes representing all or part of the cost to the
  school district of the land or building. The district may secure
  the notes by a vendor's lien or deed of trust lien against the land
  or building. By resolution or order of the governing body made at
  or before the delivery of the notes, the district may set aside and
  appropriate as a trust fund, and the sole and only fund, for the
  payment of the principal of and interest on the notes that part of
  the local school funds, levied and collected by the school district
  in that year or subsequent years, as the governing body determines.
  The aggregate amount of local school funds set aside in or for any
  subsequent year for the retirement of the notes may not exceed, in
  any one subsequent year, 10 percent of the local school funds
  collected during that year. The district may issue the notes only
  if approved by majority vote of the qualified voters voting in an
  election conducted in the manner provided by Section 45.003 for
  approval of bonds.
         SECTION 39.  Section 46.003(a), Education Code, is amended
  to read as follows:
         (a)  For each year, except as provided by Sections 46.005 and
  46.006, a school district is guaranteed a specified amount per
  student in state and local funds for each cent of tax effort, up to
  the maximum rate under Subsection (b), to pay the principal of and
  interest on eligible bonds issued to construct, acquire, renovate,
  or improve an instructional facility. The amount of state support
  is determined by the formula:
  FYA = (FYL X AE [ADA] X BTR X 100) - (BTR X (DPV/100))
  where:
         "FYA" is the guaranteed facilities yield amount of state
  funds allocated to the district for the year;
         "FYL" is the dollar amount guaranteed level of state and
  local funds per student per cent of tax effort, which is $35 or a
  greater amount for any year provided by appropriation;
         "AE" ["ADA"] is the greater of the number of students in
  average enrollment [daily attendance], as determined under Section
  48.005, in the district or 400;
         "BTR" is the district's bond tax rate for the current year,
  which is determined by dividing the amount budgeted by the district
  for payment of eligible bonds by the quotient of the district's
  taxable value of property as determined under Subchapter M, Chapter
  403, Government Code, or, if applicable, Section 48.258, divided by
  100; and
         "DPV" is the district's taxable value of property as
  determined under Subchapter M, Chapter 403, Government Code, or, if
  applicable, Section 48.258.
         SECTION 40.  Section 46.005, Education Code, is amended to
  read as follows:
         Sec. 46.005.  LIMITATION ON GUARANTEED AMOUNT. The
  guaranteed amount of state and local funds for a new project that a
  district may be awarded in any state fiscal biennium under Section
  46.003 for a school district may not exceed the lesser of:
               (1)  the amount the actual debt service payments the
  district makes in the biennium in which the bonds are issued; or
               (2)  the greater of:
                     (A)  $100,000; or
                     (B)  the product of the number of students in
  average enrollment [daily attendance] in the district multiplied by
  $250.
         SECTION 41.  Section 46.006(g), Education Code, is amended
  to read as follows:
         (g)  In this section, "wealth per student" means a school
  district's taxable value of property as determined under Subchapter
  M, Chapter 403, Government Code, or, if applicable, Section 48.258,
  divided by the district's average enrollment [daily attendance] as
  determined under Section 48.005.
         SECTION 42.  Section 46.032(a), Education Code, is amended
  to read as follows:
         (a)  Each school district is guaranteed a specified amount
  per student in state and local funds for each cent of tax effort to
  pay the principal of and interest on eligible bonds. The amount of
  state support, subject only to the maximum amount under Section
  46.034, is determined by the formula:
  EDA = (EDGL X AE [ADA] X EDTR X 100) - (EDTR X (DPV/100))
  where:
         "EDA" is the amount of state funds to be allocated to the
  district for assistance with existing debt;
         "EDGL" is the dollar amount guaranteed level of state and
  local funds per student per cent of tax effort, which is the lesser
  of:
               (1)  $40 or a greater amount for any year provided by
  appropriation; or
               (2)  the amount that would result in a total additional
  amount of state funds under this subchapter for the current year
  equal to $60 million in excess of the state funds to which school
  districts would have been entitled under this section if the
  guaranteed level amount were $35;
         "AE" ["ADA"] is the number of students in average enrollment
  [daily attendance], as determined under Section 48.005, in the
  district;
         "EDTR" is the existing debt tax rate of the district, which is
  determined by dividing the amount budgeted by the district for
  payment of eligible bonds by the quotient of the district's taxable
  value of property as determined under Subchapter M, Chapter 403,
  Government Code, or, if applicable, under Section 48.258, divided
  by 100; and
         "DPV" is the district's taxable value of property as
  determined under Subchapter M, Chapter 403, Government Code, or, if
  applicable, under Section 48.258.
         SECTION 43.  Sections 48.0051(a) and (b), Education Code,
  are amended to read as follows:
         (a)  The [Subject to Subsection (a-1), the] commissioner
  shall adjust the average enrollment [daily attendance] of a school
  district or open-enrollment charter school under Section 48.005 in
  the manner provided by Subsection (b) if the district or school:
               (1)  provides the minimum number of minutes of
  operational and instructional time required under Section 25.081
  and commissioner rules adopted under that section over at least 180
  days of instruction; and
               (2)  offers an additional 30 days of half-day
  instruction for students enrolled in prekindergarten through fifth
  grade.
         (b)  For a school district or open-enrollment charter school
  described by Subsection (a), the commissioner shall increase the
  average enrollment [daily attendance] of the district or school
  under Section 48.005 by the amount equal to one-sixth [that results
  from the quotient] of the enrollment [sum of attendance] by
  students described by Subsection (a)(2) in [for each of] the 30
  additional instructional days of half-day instruction [that are
  provided divided by 180].
         SECTION 44.  Section 48.006, Education Code, is amended to
  read as follows:
         Sec. 48.006.  AVERAGE ENROLLMENT [DAILY ATTENDANCE] FOR
  DISTRICTS IN DISASTER AREA. (a) The commissioner may adjust the
  average enrollment [daily attendance] of a school district all or
  part of which is located in an area declared a disaster area by the
  governor under Chapter 418, Government Code, if the district
  experiences a decline in average enrollment [daily attendance] that
  is reasonably attributable to the impact of the disaster.
         (b)  The adjustment must be sufficient to ensure that the
  district receives funding comparable to the funding that the
  district would have received if the decline in average enrollment
  [daily attendance] reasonably attributable to the impact of the
  disaster had not occurred.
         (c)  The commissioner may make the adjustment under this
  section for the two-year period following the date of the
  governor's initial proclamation or executive order declaring the
  state of disaster.
         (d)  Section 48.005(b)(2) does not apply to a district that
  receives an adjustment under this section.
         (e)  A district that receives an adjustment under this
  section may not receive any additional adjustment under Section
  48.005(d) for the decline in average enrollment [daily attendance]
  on which the adjustment under this section is based.
         (f)  For purposes of this title, a district's adjusted
  average enrollment [daily attendance] under this section is
  considered to be the district's average enrollment [daily
  attendance] as determined under Section 48.005.
         SECTION 45.  Sections 48.010(a) and (b), Education Code, are
  amended to read as follows:
         (a)  Not later than July 1 of each year, the commissioner
  shall determine for each school district whether the estimated
  amount of state and local funding per student in weighted average
  enrollment [daily attendance] to be provided to the district under
  the Foundation School Program for maintenance and operations for
  the following school year is less than the amount provided to the
  district for the 2010-2011 school year. If the amount estimated to
  be provided is less, the commissioner shall certify the percentage
  decrease in funding to be provided to the district.
         (b)  In making the determinations regarding funding levels
  required by Subsection (a), the commissioner shall:
               (1)  make adjustments as necessary to reflect changes
  in a school district's maintenance and operations tax rate;
               (2)  for a district required to reduce its local
  revenue level under Section 48.257, base the determinations on the
  district's net funding levels after deducting any amounts required
  to be expended by the district to comply with Chapter 49; and
               (3)  determine a district's weighted average enrollment
  [daily attendance] in accordance with this chapter as it existed on
  January 1, 2011.
         SECTION 46.  Sections 48.051(a) and (c), Education Code, are
  amended to read as follows:
         (a)  For each student in average enrollment [daily
  attendance], not including the time students spend each day in
  special education programs in an instructional arrangement other
  than mainstream or career and technology education programs, for
  which an additional allotment is made under Subchapter C, a
  district is entitled to an allotment equal to the lesser of $6,160
  or the amount that results from the following formula:
  A = $6,160 X TR/MCR
  where:
         "A" is the allotment to which a district is entitled;
         "TR" is the district's tier one maintenance and operations
  tax rate, as provided by Section 45.0032; and
         "MCR" is the district's maximum compressed tax rate, as
  determined under Section 48.2551.
         (c)  During any school year for which the maximum amount of
  the basic allotment provided under Subsection (a) or (b) is greater
  than the maximum amount provided for the preceding school year, a
  school district must use at least 30 percent of the amount, if the
  amount is greater than zero, that equals the product of the average
  enrollment [daily attendance] of the district multiplied by the
  amount of the difference between the district's funding under this
  chapter per student in average enrollment [daily attendance] for
  the current school year and the preceding school year to provide
  compensation increases to full-time district employees other than
  administrators as follows:
               (1)  75 percent must be used to increase the
  compensation paid to classroom teachers, full-time librarians,
  full-time school counselors certified under Subchapter B, Chapter
  21, and full-time school nurses, prioritizing differentiated
  compensation for classroom teachers with more than five years of
  experience; and
               (2)  25 percent may be used as determined by the
  district to increase compensation paid to full-time district
  employees.
         SECTION 47.  Sections 48.052(a) and (c), Education Code, are
  amended to read as follows:
         (a)  Notwithstanding Section 48.051, a school district that
  has fewer than 130 students in average enrollment [daily
  attendance] shall be provided a basic allotment on the basis of 130
  students in average enrollment [daily attendance] if it offers a
  kindergarten through grade 12 program and has preceding or current
  year's average enrollment [daily attendance] of at least 90
  students or is 30 miles or more by bus route from the nearest high
  school district. A district offering a kindergarten through grade 8
  program whose preceding or current year's average enrollment [daily
  attendance] was at least 50 students or which is 30 miles or more by
  bus route from the nearest high school district shall be provided a
  basic allotment on the basis of 75 students in average enrollment
  [daily attendance]. An average enrollment [daily attendance] of 60
  students shall be the basis of providing the basic allotment if a
  district offers a kindergarten through grade 6 program and has
  preceding or current year's average enrollment [daily attendance]
  of at least 40 students or is 30 miles or more by bus route from the
  nearest high school district.
         (c)  Notwithstanding Subsection (a) or Section 48.051, a
  school district to which this subsection applies, as provided by
  Subsection (b), that has fewer than 130 students in average
  enrollment [daily attendance] shall be provided a basic allotment
  on the basis of 130 students in average enrollment [daily
  attendance] if it offers a kindergarten through grade four program
  and has preceding or current year's average enrollment [daily
  attendance] of at least 75 students or is 30 miles or more by bus
  route from the nearest high school district.
         SECTION 48.  Section 48.101, Education Code, is amended to
  read as follows:
         Sec. 48.101.  SMALL AND MID-SIZED DISTRICT ALLOTMENT. (a)
  Small and mid-sized districts are entitled to an annual allotment
  in accordance with this section. In this section:
               (1)  "AA" is the district's annual allotment per
  student in average enrollment [daily attendance];
               (2)  "AE" ["ADA"] is the number of students in average
  enrollment [daily attendance] for which the district is entitled to
  an allotment under Section 48.051; and
               (3)  "BA" is the basic allotment determined under
  Section 48.051.
         (b)  A school district that has fewer than 1,600 students in
  average enrollment [daily attendance] is entitled to an annual
  allotment for each student in average enrollment [daily attendance]
  based on the following formula:
  AA = ((1,600 - AE [ADA]) X .0004) X BA
         (c)  A school district that offers a kindergarten through
  grade 12 program and has less than 5,000 students in average
  enrollment [daily attendance] is entitled to an annual allotment
  for each student in average enrollment [daily attendance] based on
  the formula, of the following formulas, that results in the
  greatest annual allotment:
               (1)  the formula in Subsection (b), if the district is
  eligible for that formula; or
               (2)  AA = ((5,000 - AE [ADA]) X .000025) X BA.
         (d)  Instead of the allotment under Subsection (b) or (c)(1),
  a school district that has fewer than 300 students in average
  enrollment [daily attendance] and is the only school district
  located in and operating in a county is entitled to an annual
  allotment for each student in average enrollment [daily attendance]
  based on the following formula:
  AA = ((1,600 - AE [ADA]) X .00047) X BA
         SECTION 49.  Sections 48.102(a) and (j), Education Code, are
  amended to read as follows:
         (a)  For each student in average enrollment [daily
  attendance] in a special education program under Subchapter A,
  Chapter 29, in a mainstream instructional arrangement, a school
  district is entitled to an annual allotment equal to the basic
  allotment, or, if applicable, the sum of the basic allotment and the
  allotment under Section 48.101 to which the district is entitled,
  multiplied by 1.15. For each full-time equivalent student in
  average enrollment [daily attendance] in a special education
  program under Subchapter A, Chapter 29, in an instructional
  arrangement other than a mainstream instructional arrangement, a
  district is entitled to an annual allotment equal to the basic
  allotment, or, if applicable, the sum of the basic allotment and the
  allotment under Section 48.101 to which the district is entitled,
  multiplied by a weight determined according to instructional
  arrangement as follows:
                     Homebound5.0
                     Hospital class3.0
                     Speech therapy5.0
                     Resource room3.0
                     Self-contained, mild and moderate,
                     regular campus3.0
                     Self-contained, severe, regular campus3.0
                     Off home campus2.7
                     Nonpublic day school1.7
                     Vocational adjustment class2.3
         (j)  A school district that provides an extended year program
  required by federal law for special education students who may
  regress is entitled to receive funds in an amount equal to 75
  percent, or a lesser percentage determined by the commissioner, of
  the basic allotment, or, if applicable, the sum of the basic
  allotment and the allotment under Section 48.101 to which the
  district is entitled for each full-time equivalent student in
  average enrollment [daily attendance], multiplied by the amount
  designated for the student's instructional arrangement under this
  section[, for each day the program is provided divided by the number
  of days in the minimum school year]. The total amount of state
  funding for extended year services under this section may not
  exceed $10 million per year. A school district may use funds
  received under this section only in providing an extended year
  program.
         SECTION 50.  Section 48.105(a), Education Code, is amended
  to read as follows:
         (a)  For each student in average enrollment [daily
  attendance] in a bilingual education or special language program
  under Subchapter B, Chapter 29, a district is entitled to an annual
  allotment equal to the basic allotment multiplied by:
               (1)  for an emergent bilingual student, as defined by
  Section 29.052:
                     (A)  0.1; or
                     (B)  0.15 if the student is in a bilingual
  education program using a dual language immersion/one-way or
  two-way program model; and
               (2)  for a student not described by Subdivision (1),
  0.05 if the student is in a bilingual education program using a dual
  language immersion/two-way program model.
         SECTION 51.  Sections 48.106(a) and (a-1), Education Code,
  are amended to read as follows:
         (a)  For each full-time equivalent student in average
  enrollment [daily attendance] in an approved career and technology
  education program in grades 7 through 12, a district is entitled to
  an annual allotment equal to the basic allotment, or, if
  applicable, the sum of the basic allotment and the allotment under
  Section 48.101 to which the district is entitled, multiplied by:
               (1)  1.1 for a full-time equivalent student in career
  and technology education courses not in an approved program of
  study;
               (2)  1.28 for a full-time equivalent student in levels
  one and two career and technology education courses in an approved
  program of study, as identified by the agency; and
               (3)  1.47 for a full-time equivalent student in levels
  three and four career and technology education courses in an
  approved program of study, as identified by the agency.
         (a-1)  In addition to the amounts under Subsection (a), for
  each student in average enrollment [daily attendance], a district
  is entitled to $50 for each of the following in which the student is
  enrolled:
               (1)  a campus designated as a P-TECH school under
  Section 29.556; or
               (2)  a campus that is a member of the New Tech Network
  and that focuses on project-based learning and work-based
  education.
         SECTION 52.  Section 48.107(a), Education Code, is amended
  to read as follows:
         (a)  Except as provided by Subsection (b), for each student
  in average enrollment [daily attendance] who is using a public
  education grant under Subchapter G, Chapter 29, to attend school in
  a district other than the district in which the student resides, the
  district in which the student attends school is entitled to an
  annual allotment equal to the basic allotment multiplied by a
  weight of 0.1.
         SECTION 53.  Section 48.108(a), Education Code, is amended
  to read as follows:
         (a)  For each student in average enrollment [daily
  attendance] in kindergarten through third grade, a school district
  is entitled to an annual allotment equal to the basic allotment
  multiplied by 0.1 if the student is:
               (1)  educationally disadvantaged; or
               (2)  an emergent bilingual student, as defined by
  Section 29.052, and is in a bilingual education or special language
  program under Subchapter B, Chapter 29.
         SECTION 54.  Section 48.109(c), Education Code, is amended
  to read as follows:
         (c)  Not more than five percent of a district's students in
  average enrollment [daily attendance] are eligible for funding
  under this section.
         SECTION 55.  Section 48.115(a), Education Code, is amended
  to read as follows:
         (a)  From funds appropriated for that purpose, the
  commissioner shall provide to a school district an annual allotment
  in the amount provided by appropriation for each student in average
  enrollment [daily attendance].
         SECTION 56.  Sections 48.152(d) and (e), Education Code, are
  amended to read as follows:
         (d)  For the first school year in which students attend a new
  instructional facility, a school district is entitled to an
  allotment of $1,000 for each student in average enrollment [daily
  attendance] at the facility. For the second school year in which
  students attend that instructional facility, a school district is
  entitled to an allotment of $1,000 for each additional student in
  average enrollment [daily attendance] at the facility.
         (e)  For purposes of this section, the number of additional
  students in average enrollment [daily attendance] at a facility is
  the difference between the number of students in average enrollment
  [daily attendance] in the current year at that facility and the
  number of students in average enrollment [daily attendance] at that
  facility in the preceding year.
         SECTION 57.  Section 48.153, Education Code, is amended to
  read as follows:
         Sec. 48.153.  DROPOUT RECOVERY SCHOOL AND RESIDENTIAL
  PLACEMENT FACILITY ALLOTMENT. A school district or open-enrollment
  charter school is entitled to $275 for each student in average
  enrollment [daily attendance] who:
               (1)  resides in a residential placement facility; or
               (2)  is at a district or school or a campus of the
  district or school that is designated as a dropout recovery school
  under Section 39.0548.
         SECTION 58.  Section 48.202(a), Education Code, is amended
  to read as follows:
         (a)  Each school district is guaranteed a specified amount
  per weighted student in state and local funds for each cent of tax
  effort over that required for the district's local fund assignment
  up to the maximum level specified in this subchapter. The amount of
  state support, subject only to the maximum amount under Section
  48.203, is determined by the formula:
  GYA = (GL X WAE [WADA] X DTR X 100) - LR
  where:
         "GYA" is the guaranteed yield amount of state funds to be
  allocated to the district;
         "GL" is the dollar amount guaranteed level of state and local
  funds per weighted student per cent of tax effort, which is an
  amount described by Subsection (a-1) or a greater amount for any
  year provided by appropriation;
         "WAE" ["WADA"] is the number of students in weighted average
  enrollment [daily attendance], which is calculated by dividing the
  sum of the school district's allotments under Subchapters B and C by
  the basic allotment for the applicable year;
         "DTR" is the district enrichment tax rate of the school
  district, which is determined by subtracting the amounts specified
  by Subsection (b) from the total amount of maintenance and
  operations taxes collected by the school district for the
  applicable school year and dividing the difference by the quotient
  of the district's taxable value of property as determined under
  Subchapter M, Chapter 403, Government Code, or, if applicable,
  under Section 48.258 or by the quotient of the value of "DPV" as
  determined under Section 48.256(d) if that subsection applies to
  the district, divided by 100; and
         "LR" is the local revenue, which is determined by multiplying
  "DTR" by the quotient of the district's taxable value of property as
  determined under Subchapter M, Chapter 403, Government Code, or, if
  applicable, under Section 48.258 or by the quotient of the value of
  "DPV" as determined under Section 48.256(d) if that subsection
  applies to the district, divided by 100.
         SECTION 59.  Section 48.252(b), Education Code, is amended
  to read as follows:
         (b)  Notwithstanding any other provision of this chapter or
  Chapter 49, a school district subject to this section is entitled to
  receive for each student in average enrollment [daily attendance]
  at the campus or program described by Subsection (a) an amount
  equivalent to the difference, if the difference results in
  increased funding, between:
               (1)  the amount described by Section 12.106; and
               (2)  the amount to which the district would be entitled
  under this chapter.
         SECTION 60.  Section 48.2642(a), Education Code, is amended
  to read as follows:
         (a)  Notwithstanding any other provision of this chapter,
  the commissioner shall count toward a school district's or
  open-enrollment charter school's average enrollment [daily
  attendance] under Section 48.005 each student who graduates early
  from high school in the district or school under the Texas First
  Early High School Completion Program established under Section
  28.0253 for the period in which the student is enrolled at an
  eligible institution using state credit awarded under the Texas
  First Scholarship Program established under Subchapter K-1,
  Chapter 56, based on a 100 percent attendance rate.
         SECTION 61.  Section 48.273(a)(4), Education Code, is
  amended to read as follows:
               (4)  "Wealth per student" means the taxable property
  values reported by the comptroller to the commissioner under
  Section 48.256 divided by the number of students in average
  enrollment [daily attendance].
         SECTION 62.  Section 48.277(a), Education Code, is amended
  to read as follows:
         (a)  A school district or open-enrollment charter school is
  entitled to receive an annual allotment for each student in average
  enrollment [daily attendance] in the amount equal to the
  difference, if the difference is greater than zero, that results
  from subtracting the total maintenance and operations revenue per
  student in average enrollment [daily attendance] for the current
  school year from the lesser of:
               (1)  103 percent of the district's or school's total
  maintenance and operations revenue per student in average
  enrollment [daily attendance] for the 2019-2020 school year that
  the district or school would have received under former Chapters 41
  and 42, as those chapters existed on January 1, 2019; or
               (2)  128 percent of the statewide average amount of
  maintenance and operations revenue per student in average
  enrollment [daily attendance] that would have been provided for the
  2019-2020 school year under former Chapters 41 and 42, as those
  chapters existed on January 1, 2019.
         SECTION 63.  Section 49.001(2), Education Code, is amended
  to read as follows:
               (2)  "Weighted average enrollment [daily attendance]"
  has the meaning assigned by Section 48.202.
         SECTION 64.  Section 49.002, Education Code, is amended to
  read as follows:
         Sec. 49.002.  OPTIONS TO REDUCE LOCAL REVENUE LEVEL. A
  district with a local revenue level in excess of entitlement may
  take any combination of the following actions to reduce the
  district's revenue level:
               (1)  consolidation with another district as provided by
  Subchapter B;
               (2)  detachment of territory as provided by Subchapter
  C;
               (3)  purchase of average enrollment [daily attendance]
  credit as provided by Subchapter D;
               (4)  education of nonresident students as provided by
  Subchapter E; or
               (5)  tax base consolidation with another district as
  provided by Subchapter F.
         SECTION 65.  Section 49.003, Education Code, is amended to
  read as follows:
         Sec. 49.003.  INCLUSION OF ATTENDANCE CREDIT AND
  NONRESIDENTS IN WEIGHTED AVERAGE ENROLLMENT [DAILY ATTENDANCE]. In
  determining whether a school district has a local revenue level in
  excess of entitlement, the commissioner shall use:
               (1)  the district's final weighted average enrollment
  [daily attendance]; and
               (2)  the amount of attendance credit a district
  purchases under Subchapter D or the number of nonresident students
  a district educates under Subchapter E for a school year.
         SECTION 66.  Section 49.158(a), Education Code, is amended
  to read as follows:
         (a)  Sections 49.154 and 49.157 apply only to a district
  that:
               (1)  executes an agreement to purchase attendance
  credit necessary to reduce the district's local revenue level to
  the level established under Section 48.257;
               (2)  executes an agreement to purchase attendance
  credit and an agreement under Subchapter E to contract for the
  education of nonresident students who transfer to and are educated
  in the district but who are not charged tuition; or
               (3)  executes an agreement under Subchapter E to
  contract for the education of nonresident students:
                     (A)  to an extent that does not provide more than
  10 percent of the reduction in local revenue required for the
  district to achieve a local revenue level that is equal to or less
  than the level established under Section 48.257; and
                     (B)  under which all revenue paid by the district
  to other districts, in excess of the reduction in state aid that
  results from counting the weighted average enrollment [daily
  attendance] of the students served in the contracting district, is
  required to be used for funding a consortium of at least three
  districts in a county with a population of less than 40,000 that is
  formed to support a technology initiative.
         SECTION 67.  Section 49.201, Education Code, is amended to
  read as follows:
         Sec. 49.201.  AGREEMENT. The board of trustees of a
  district with a local revenue level in excess of entitlement may
  execute an agreement to educate the students of another district in
  a number that, when the weighted average enrollment [daily
  attendance] of the students served is added to the weighted average
  enrollment [daily attendance] of the contracting district, is
  sufficient, in combination with any other actions taken under this
  chapter, to reduce the district's local revenue level to a level
  that is equal to or less than the level established under Section
  48.257. The agreement is not effective unless the commissioner
  certifies that the transfer of weighted average enrollment [daily
  attendance] will not result in any of the contracting districts'
  local revenue level being greater than the level established under
  Section 48.257 and that the agreement requires an expenditure per
  student in weighted average enrollment [daily attendance] that is
  at least equal to the amount per student in weighted average
  enrollment [daily attendance] required under Section 49.153.
         SECTION 68.  Section 49.203, Education Code, is amended to
  read as follows:
         Sec. 49.203.  WEIGHTED AVERAGE ENROLLMENT [WADA] COUNT. For
  purposes of Chapter 48, students served under an agreement under
  this subchapter are counted only in the weighted average enrollment
  [daily attendance] of the district providing the services, except
  that students served under an agreement authorized by Section
  49.205 are counted in a manner determined by the commissioner.
         SECTION 69.  Section 49.257(b), Education Code, is amended
  to read as follows:
         (b)  Each component district shall bear a share of the costs
  of assessing and collecting taxes in proportion to the component
  district's share of weighted average enrollment [daily attendance]
  in the consolidated taxing district.
         SECTION 70.  Section 49.258, Education Code, is amended to
  read as follows:
         Sec. 49.258.  REVENUE DISTRIBUTION. The consolidated taxing
  district shall distribute maintenance tax revenue to the component
  districts on the basis of the number of students in weighted average
  enrollment [daily attendance] in the component districts.
         SECTION 71.  Sections 49.305(c) and (d), Education Code, are
  amended to read as follows:
         (c)  If the detachment of whole parcels or items of property
  as provided by Subsection (a) would result in a district's local
  revenue level that is less than the level established under Section
  48.257 by more than the product of $10,000 multiplied by weighted
  average enrollment [daily attendance], the commissioner may not
  detach the last parcel or item of property and shall detach the next
  one or more parcels or items of property in descending order of
  taxable value that would result in the school district having a
  local revenue level that is equal to or less than the level
  established under Section 48.257 by not more than the product of
  $10,000 multiplied by weighted average enrollment [daily
  attendance].
         (d)  Notwithstanding Subsections (a), (b), and (c), the
  commissioner may detach only a portion of a parcel or item of
  property if:
               (1)  it is not possible under this subchapter to reduce
  the district's local revenue level to a level that is equal to or
  less than the level established under Section 48.257 unless some or
  all of the parcel or item of property is detached and the detachment
  of the whole parcel or item would result in the district from which
  it is detached having a local revenue level that is less than the
  level established under Section 48.257 by more than the product of
  $10,000 multiplied by weighted average enrollment [daily
  attendance]; or
               (2)  the commissioner determines that a partial
  detachment of that parcel or item of property is preferable to the
  detachment of one or more other parcels or items having a lower
  taxable value in order to minimize the number of parcels or items of
  property to be detached consistent with the purposes of this
  chapter.
         SECTION 72.  Section 49.306(i), Education Code, is amended
  to read as follows:
         (i)  The commissioner may order the annexation of a portion
  of a parcel or item of property, including a portion of property
  treated as a whole parcel or item under Subsection (h), if:
               (1)  the annexation of the whole parcel or item would
  result in the district eligible to receive it in the appropriate
  priority order provided by this section having a local revenue
  level greater than the amount by which the product of $10,000
  multiplied by weighted average enrollment [daily attendance]
  exceeds the taxable value of property necessary to generate
  maintenance and operations tax revenue in the amount equal to the
  district's entitlement under Section 48.202(a-1)(2); or
               (2)  the commissioner determines that annexation of
  portions of the parcel or item would reduce disparities in district
  taxable values of property necessary to generate maintenance and
  operations tax revenue in the amount equal to a district's
  entitlement under Section 48.202(a-1)(2) more efficiently than
  would be possible if the parcel or item were annexed as a whole.
         SECTION 73.  Section 49.311, Education Code, is amended to
  read as follows:
         Sec. 49.311.  STUDENT ATTENDANCE. A student who is a
  resident of real property detached from a school district may
  choose to attend school in that district or in the district to which
  the property is annexed. For purposes of determining average
  enrollment [daily attendance] under Section 48.005, the student
  shall be counted in the district to which the property is annexed.
  If the student chooses to attend school in the district from which
  the property is detached, the state shall withhold any foundation
  school funds from the district to which the property is annexed and
  shall allocate to the district in which the student is attending
  school those funds and the amount of funds equal to the difference
  between the state funds the district is receiving for the student
  and the district's cost in educating the student.
         SECTION 74.  Section 49.354(e), Education Code, is amended
  to read as follows:
         (e)  A restored district's proportionate share of fund
  balances, personal property, or indebtedness is equal to the
  proportion that the number of students in average enrollment [daily
  attendance] in the restored district bears to the number of
  students in average enrollment [daily attendance] in the
  consolidated district.
         SECTION 75.  Section 403.104(d), Government Code, is amended
  to read as follows:
         (d)  The proportionate share of an independent school
  district is determined by multiplying the total amount of the
  payment available for distribution to school districts by the ratio
  that the average number of [daily attendance for] students who
  reside in the county and are enrolled in [who attend] that school
  district bears to the average number of [daily attendance for] all
  students who reside in the county and are enrolled in [who attend]
  any independent school district. However, if there are fewer than
  10 independent school districts located in whole or part in the
  county and if an independent school district would receive under
  this formula less than 10 percent of the total payment available for
  distribution to independent school districts, the school
  district's share shall be increased to 10 percent of the total
  payment and the shares of the school districts that would receive
  more than 10 percent under the formula shall be reduced
  proportionately, but not to an amount less than 10 percent of the
  total payment. [Each independent school district shall develop a
  reasonable method for determining the average daily attendance for
  students who reside in the county and who attend the school
  district.]
         SECTION 76.  Section 1371.001(4), Government Code, is
  amended to read as follows:
               (4)  "Issuer" means:
                     (A)  a home-rule municipality that:
                           (i)  adopted its charter under Section 5,
  Article XI, Texas Constitution;
                           (ii)  has a population of 50,000 or more; and
                           (iii)  has outstanding long-term
  indebtedness that is rated by a nationally recognized rating agency
  for municipal securities in one of the four highest rating
  categories for a long-term obligation;
                     (B)  a conservation and reclamation district
  created and organized as a river authority under Section 52,
  Article III, or Section 59, Article XVI, Texas Constitution;
                     (C)  a joint powers agency organized and operating
  under Chapter 163, Utilities Code;
                     (D)  a metropolitan rapid transit authority,
  regional transportation authority, or coordinated county
  transportation authority created, organized, or operating under
  Chapter 451, 452, or 460, Transportation Code;
                     (E)  a conservation and reclamation district
  organized or operating as a navigation district under Section 52,
  Article III, or Section 59, Article XVI, Texas Constitution;
                     (F)  a district organized or operating under
  Section 59, Article XVI, Texas Constitution, that has all or part of
  two or more municipalities within its boundaries;
                     (G)  a state agency, including a state institution
  of higher education;
                     (H)  a hospital authority created or operating
  under Chapter 262 or 264, Health and Safety Code, in a county that:
                           (i)  has a population of more than 3.3
  million; or
                           (ii)  is included, in whole or in part, in a
  standard metropolitan statistical area of this state that includes
  a county with a population of more than 2.2 million;
                     (I)  a hospital district in a county that has a
  population of more than two million;
                     (J)  a nonprofit corporation organized to
  exercise the powers of a higher education loan authority under
  Section 53B.47(e), Education Code;
                     (K)  a county:
                           (i)  that has a population of 3.3 million or
  more; or
                           (ii)  that, on the date of issuance of
  obligations under this chapter, has authorized, outstanding, or any
  combination of authorized and outstanding, indebtedness of at least
  $100 million secured by and payable from the county's ad valorem
  taxes and the authorized long-term indebtedness of which is rated
  by a nationally recognized rating agency of securities issued by
  local governments in one of the four highest rating categories for a
  long-term obligation;
                     (L)  an independent school district that has an
  average enrollment [daily attendance] of 50,000 or more as
  determined under Section 48.005, Education Code;
                     (M)  a municipality or county operating under
  Chapter 334, Local Government Code;
                     (N)  a district created under Chapter 335, Local
  Government Code;
                     (O)  a junior college district that has a total
  headcount enrollment of 40,000 or more based on enrollment in the
  most recent regular semester; or
                     (P)  an issuer, as defined by Section 1201.002,
  that has:
                           (i)  a principal amount of at least $100
  million in outstanding long-term indebtedness, in long-term
  indebtedness proposed to be issued, or in a combination of
  outstanding or proposed long-term indebtedness; and
                           (ii)  some amount of long-term indebtedness
  outstanding or proposed to be issued that is rated in one of the
  four highest rating categories for long-term debt instruments by a
  nationally recognized rating agency for municipal securities,
  without regard to the effect of any credit agreement or other form
  of credit enhancement entered into in connection with the
  obligation.
         SECTION 77.  Section 1431.001(3), Government Code, is
  amended to read as follows:
               (3)  "Eligible school district" means an independent
  school district that has an average enrollment [daily attendance]
  of 190,000 or more as determined under Section 48.005, Education
  Code.
         SECTION 78.  Section 325.011(a), Local Government Code, is
  amended to read as follows:
         (a)  The district is governed by a board of directors
  composed of five members, with two directors appointed by the
  commissioners court of the county, two directors appointed by the
  governing body of the municipality having the largest population in
  the county, and one director appointed by the governing body of the
  school district with the largest number of students in average
  enrollment [daily attendance] in the county. The board shall
  manage the district and administer this chapter.
         SECTION 79.  Section 313.027(i), Tax Code, is amended to
  read as follows:
         (i)  A person and the school district may not enter into an
  agreement under which the person agrees to provide supplemental
  payments to a school district or any other entity on behalf of a
  school district in an amount that exceeds an amount equal to the
  greater of $100 per student per year in average enrollment [daily
  attendance], as defined by Section 48.005, Education Code, or
  $50,000 per year, or for a period that exceeds the period beginning
  with the period described by Section 313.021(4) and ending December
  31 of the third tax year after the date the person's eligibility for
  a limitation under this chapter expires. This limit does not apply
  to amounts described by Subsection (f)(1) or (2).
         SECTION 80.  Section 1, Article 2688d, Vernon's Texas Civil
  Statutes, is amended to read as follows:
         Section 1. In all counties of the State where, according to
  the preceding annual statistical report of the schools said county
  has not more than four (4) school districts, with one (1) of such
  districts comprising more than half of the county and having more
  than two thousand (2,000) pupils in average enrollment [daily
  attendance] in the one (1) district alone, and such district having
  an assessed valuation of more than Twenty Million Dollars
  ($20,000,000) and where there is only one (1) common school
  district in such county with an average enrollment [daily
  attendance] of less than sixteen (16), the office of county
  superintendent is hereby abolished, to be effective at the end of
  the term of the incumbent county superintendent, as is now provided
  by law.
         SECTION 81.  The following provisions of the Education Code
  are repealed:
               (1)  Section 29.0822(d-1); and
               (2)  Section 48.007.
         SECTION 82.  This Act takes effect September 1, 2023.

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