S.B. No. 7
                                        AN ACT
    1-1  relating to public school education and finance; providing civil
    1-2  penalties.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4                               ARTICLE 1
    1-5        SECTION 1.01.  Title 2, Education Code, is amended by adding
    1-6  Chapter 36 to read as follows:
    1-7                  CHAPTER 36.  EQUALIZED WEALTH LEVEL
    1-8                   SUBCHAPTER A.  GENERAL PROVISIONS
    1-9        Sec. 36.001.  DEFINITIONS.  In this chapter:
   1-10              (1)  "Equalized wealth level" means the wealth per
   1-11  student provided by Section 36.002.
   1-12              (2)  "Wealth per student" means the taxable value of
   1-13  property, as determined under Section 11.86, divided by the number
   1-14  of students in weighted average daily attendance.
   1-15              (3)  "Weighted average daily attendance" has the
   1-16  meaning assigned by Section 16.302, except that weighted average
   1-17  daily attendance is computed using the estimate of average daily
   1-18  attendance under Section 16.2541, and the estimate under Section
   1-19  16.2541 is modified by including a student residing in a school
   1-20  district but attending school in another district in the estimate
   1-21  for the district of the student's residence and not of the district
   1-22  in which the student attends school.
   1-23        Sec. 36.002.  EQUALIZED WEALTH LEVEL.  (a)  Except as
   1-24  provided by Subsections (b) and (c), a school district may not have
    2-1  a wealth per student that exceeds $280,000.
    2-2        (b)  For the 1993-1994 school year, in accordance with a
    2-3  determination of the commissioner of education, the wealth per
    2-4  student that a school district may have after exercising an option
    2-5  under Section 36.003(2), (3), or (4) may not be less than the
    2-6  amount needed to maintain the amount of state and local revenue per
    2-7  weighted student for maintenance and operation of the district for
    2-8  the 1992-1993 school year if the district imposes an effective tax
    2-9  rate for maintenance and operation of the district equal to the
   2-10  greater of the district's current tax rate or $1.375 on the $100
   2-11  valuation of taxable property.
   2-12        (c)  For the 1994-1995 and 1995-1996 school years, in
   2-13  accordance with a determination of the commissioner of education,
   2-14  the wealth per student that a school district may have after
   2-15  exercising an option under Section 36.003(2), (3), or (4) may not
   2-16  be less than the amount needed to maintain the amount of state and
   2-17  local revenue per weighted student for maintenance and operation of
   2-18  the district for the 1992-1993 school year if the district imposes
   2-19  an effective tax rate for maintenance and operation of the district
   2-20  equal to the greater of the district's current tax rate or $1.50 on
   2-21  the $100 valuation of taxable property.
   2-22        (d)  For purposes of Subsections (b) and (c), a school
   2-23  district's effective tax rate is determined by dividing the total
   2-24  amount of taxes collected by the district for the applicable school
   2-25  year by the quotient of the district's taxable value of property,
   2-26  as determined under Section 11.86, divided by 100.
   2-27        Sec. 36.003.  OPTIONS TO ACHIEVE EQUALIZED WEALTH LEVEL.  A
    3-1  district with a wealth per student that exceeds the equalized
    3-2  wealth level may take any combination of the following actions to
    3-3  achieve the equalized wealth level:
    3-4              (1)  consolidation with another district as provided by
    3-5  Subchapter B;
    3-6              (2)  detachment of territory as provided by Subchapter
    3-7  C;
    3-8              (3)  purchase of average daily attendance credit as
    3-9  provided by Subchapter D;
   3-10              (4)  contracting for the education of nonresident
   3-11  students as provided by Subchapter E; or
   3-12              (5)  tax base consolidation with another district as
   3-13  provided by Subchapter F.
   3-14        Sec. 36.004.  ANNUAL REVIEW OF PROPERTY WEALTH.  (a)  Not
   3-15  later than July 15 of each year, the commissioner of education
   3-16  shall review the wealth per student of school districts in the
   3-17  state and shall notify:
   3-18              (1)  each district with wealth per student exceeding
   3-19  the equalized wealth level;
   3-20              (2)  each district to which the commissioner proposes
   3-21  to annex property detached from a district notified under
   3-22  Subdivision (1), if necessary, under Subchapter G; and
   3-23              (3)  each district to which the commissioner proposes
   3-24  to consolidate a district notified under Subdivision (1), if
   3-25  necessary, under Subchapter H.
   3-26        (b)  If, before the dates provided by this subsection, a
   3-27  district notified under Subsection (a)(1) has not successfully
    4-1  exercised one or more options under Section 36.003 that reduce the
    4-2  district's wealth per student to a level equal to or less than the
    4-3  equalized wealth level, the commissioner shall order the detachment
    4-4  of property from that district as provided by Subchapter G.  If
    4-5  that detachment will not reduce the district's wealth per student
    4-6  to a level equal to or less than the equalized wealth level, the
    4-7  commissioner may not detach property under Subchapter G but shall
    4-8  order the consolidation of the district with one or more other
    4-9  districts as provided by Subchapter H.  An agreement under Section
   4-10  36.003(1) or (2) must be executed not later than September 1
   4-11  immediately following the notice under Subsection (a).  An election
   4-12  for an option under Section 36.003(3), (4), or (5) must be ordered
   4-13  before September 1 immediately following the notice under
   4-14  Subsection (a).
   4-15        (c)  A district notified under Subsection (a) may not adopt a
   4-16  tax rate for the tax year in which the district receives the notice
   4-17  until the commissioner of education certifies that the district has
   4-18  achieved the equalized wealth level.
   4-19        (d)  A detachment and annexation or consolidation under this
   4-20  chapter:
   4-21              (1)  is effective for foundation school program funding
   4-22  purposes for the school year that begins in the calendar year in
   4-23  which the detachment and annexation or consolidation is agreed to
   4-24  or ordered; and
   4-25              (2)  applies to the ad valorem taxation of property
   4-26  beginning with the tax year in which the agreement or order is
   4-27  effective.
    5-1        Sec. 36.005.  COMPTROLLER AND APPRAISAL DISTRICT COOPERATION.
    5-2  The chief appraiser of each appraisal district and the comptroller
    5-3  shall cooperate with the commissioner and school districts in
    5-4  implementing this chapter.
    5-5        Sec. 36.006.  RULES.  (a)  The commissioner of education may
    5-6  adopt rules necessary for the implementation of this chapter.  The
    5-7  rules may provide for the commissioner to make necessary
    5-8  adjustments to the provisions of Chapter 16, including providing
    5-9  for the commissioner, with the approval of the foundation school
   5-10  fund budget committee, to make an adjustment in the funding element
   5-11  established by Section 16.302, at the earliest date practicable, to
   5-12  the amount the commissioner believes, taking into consideration
   5-13  options exercised by school districts under this chapter and
   5-14  estimates of student enrollments, will match appropriation levels.
   5-15        (b)  As necessary for the effective and efficient
   5-16  administration of this chapter, the commissioner of education may
   5-17  modify effective dates and time periods for actions described by
   5-18  this chapter.
   5-19        Sec. 36.007.  COMMISSIONER TO APPROVE SUBSEQUENT BOUNDARY
   5-20  CHANGES.  A school district that is involved in an action under
   5-21  this chapter that results in boundary changes to the district or in
   5-22  the consolidation of tax bases is subject to consolidation,
   5-23  detachment, or annexation under Chapter 19 only if the commissioner
   5-24  of education certifies that the change under Chapter 19 will not
   5-25  result in a district with a wealth per student that exceeds the
   5-26  equalized wealth level.
   5-27        Sec. 36.0075.  HOMESTEAD EXEMPTIONS.  (a)  The governing
    6-1  board of a school district that results from consolidation under
    6-2  this chapter, including a consolidated taxing district under
    6-3  Subchapter F, for the tax year in which the consolidation occurs
    6-4  may determine whether to adopt a homestead exemption provided by
    6-5  Section 11.13, Tax Code, and may set the amount of the exemption,
    6-6  if adopted, at any time before the school district adopts a tax
    6-7  rate for that tax year.  This section applies only to an exemption
    6-8  that the governing board of a school district is authorized to
    6-9  adopt or change in amount under Section 11.13, Tax Code.
   6-10        (b)  This section prevails over any inconsistent provision of
   6-11  Section 11.13, Tax Code, or other law.
   6-12        Sec. 36.008.  TAX ABATEMENTS.  (a)  A tax abatement agreement
   6-13  executed by a school district that is involved in consolidation or
   6-14  in detachment and annexation of territory under this chapter is not
   6-15  affected and applies to the taxation of the property covered by the
   6-16  agreement as if executed by the district within which the property
   6-17  is included.
   6-18        (b)  The commissioner shall determine the wealth per student
   6-19  of a school district under this chapter as if any tax abatement
   6-20  agreement executed by a school district on or after May 31, 1993,
   6-21  had not been executed.
   6-22        Sec. 36.0085.  TAX INCREMENT OBLIGATIONS.  The payment of tax
   6-23  increments under Chapter 311, Tax Code, is not affected by the
   6-24  consolidation of territory or tax bases or by annexation under this
   6-25  chapter.  In each tax year a school district paying a tax increment
   6-26  from taxes on property over which the district has assumed taxing
   6-27  power is entitled to retain the same percentage of the tax
    7-1  increment from that property that the district in which the
    7-2  property was located before the consolidation or annexation could
    7-3  have retained for the respective tax year.
    7-4        Sec. 36.009.  CONTINGENCY.  (a)  If any of the options
    7-5  described by Section 36.003 as applied to a school district are
    7-6  held invalid by a final decision of a court of competent
    7-7  jurisdiction, a school district is entitled to exercise any of the
    7-8  remaining valid options in accordance with a schedule approved by
    7-9  the commissioner of education.
   7-10        (b)  If a final order of a court of competent jurisdiction
   7-11  should hold each of the options provided by Section 36.003 invalid,
   7-12  the commissioner shall act under Subchapter G or H to achieve the
   7-13  equalized wealth level only after notice and hearing is afforded to
   7-14  each school district affected by the order.  The commissioner shall
   7-15  adopt a plan that least disrupts the affected school districts.  If
   7-16  because the exigency to adopt a plan prevents the commissioner from
   7-17  giving a reasonable time for notice and hearing, the commissioner
   7-18  shall timely give notice to and hold a hearing for the affected
   7-19  school districts, but in no event less than 30 days from time of
   7-20  notice to the date of hearing.
   7-21        (c)  If a final order of a court of competent jurisdiction
   7-22  should hold an option provided by Section 36.003 invalid and order
   7-23  a refund to a district of any amounts paid by a district choosing
   7-24  that option, the amount shall be refunded but held in reserve and
   7-25  not expended by the district until released by order of the
   7-26  commissioner of education.  The commissioner shall order the
   7-27  release immediately on the commissioner's determination that,
    8-1  through one of the means provided by law, the district has achieved
    8-2  the equalized wealth level.  The amount released shall be deducted
    8-3  from any state aid payable to the district according to a schedule
    8-4  adopted by the commissioner.
    8-5        Sec. 36.010.  DATE OF ELECTIONS.  An election under this
    8-6  chapter for voter approval of an agreement entered by the board of
    8-7  trustees shall be held on a Tuesday or Saturday not more than 45
    8-8  days after the date of the agreement.  Section 41.001, Election
    8-9  Code, does not apply to the election.
   8-10        Sec. 36.011.  PROCEDURE.  (a)  Except as provided by
   8-11  Subchapter G, a decision of the commissioner under this chapter is
   8-12  appealable under Section 11.13(c).
   8-13        (b)  Any order of the commissioner issued under this chapter
   8-14  shall be given immediate effect and may not be stayed or enjoined
   8-15  pending any appeal.
   8-16        (c)  The Administrative Procedure and Texas Register Act
   8-17  (Article 6252-13a, Vernon's Texas Civil Statutes) does not apply to
   8-18  a decision of the commissioner under this chapter.
   8-19        (d)  On the request of the commissioner, the secretary of
   8-20  state shall publish any rules adopted under this chapter in the
   8-21  Texas Register and the Texas Administrative Code.
   8-22               SUBCHAPTER B.  CONSOLIDATION BY AGREEMENT
   8-23        Sec. 36.031.  AGREEMENT.  The governing boards of any two or
   8-24  more school districts may consolidate the districts by agreement in
   8-25  accordance with this subchapter to establish a consolidated
   8-26  district with a wealth per student equal to or less than the
   8-27  equalized wealth level.  The agreement is not effective unless the
    9-1  commissioner of education certifies that the consolidated district,
    9-2  as a result of actions taken under this chapter, will have a wealth
    9-3  per student equal to or less than the equalized wealth level.
    9-4        Sec. 36.032.  GOVERNING LAW.  Except to the extent modified
    9-5  by the terms of the agreement, the consolidated district is
    9-6  governed by the applicable provisions of Subchapter C, Chapter 19,
    9-7  other than a provision requiring consolidating districts to be
    9-8  contiguous.  The agreement may not be inconsistent with the
    9-9  requirements of this subchapter.
   9-10        Sec. 36.033.  GOVERNANCE PLAN.  (a)  The agreement among the
   9-11  consolidating districts may include a governance plan designed to
   9-12  preserve community-based and site-based decision making within the
   9-13  consolidated district, including the delegation of specific powers
   9-14  of the governing board of the district other than the power to levy
   9-15  taxes.
   9-16        (b)  The governance plan may provide for a transitional board
   9-17  of trustees during the first year after consolidation, but
   9-18  beginning with the next year the board of trustees must be elected
   9-19  from within the boundaries of the consolidated district from
   9-20  single-member districts drawn in accordance with the procedures
   9-21  provided by Section 23.024.
   9-22        Sec. 36.034.  INCENTIVE AID.  (a)  For the first and second
   9-23  school years after creation of a consolidated district under this
   9-24  subchapter, the commissioner of education shall adjust allotments
   9-25  to the consolidated district to the extent necessary to preserve
   9-26  the effects of an adjustment under Section 16.102, 16.103, or
   9-27  16.104 to which either of the consolidating districts would have
   10-1  been entitled but for the consolidation.
   10-2        (b)  A district receiving incentive aid payments under this
   10-3  section is not entitled to incentive aid under Subchapter G,
   10-4  Chapter 23.
   10-5         SUBCHAPTER C.  DETACHMENT AND ANNEXATION BY AGREEMENT
   10-6        Sec. 36.061.  AGREEMENT.  (a)  By agreement of the governing
   10-7  boards of two school districts, territory may be detached from one
   10-8  of the districts and annexed to the other district if, after the
   10-9  action:
  10-10              (1)  the wealth per student of the district from which
  10-11  territory is detached is equal to or less than the equalized wealth
  10-12  level; and
  10-13              (2)  the wealth per student of the district to which
  10-14  territory is annexed is not greater than the greatest level for
  10-15  which funds are provided under Subchapter H, Chapter 16.
  10-16        (b)  The agreement is not effective unless the commissioner
  10-17  of education certifies that, after all actions taken under this
  10-18  chapter, the wealth per student of each district involved will be
  10-19  equal to or less than the applicable level permitted by Subsection
  10-20  (a).
  10-21        Sec. 36.062.  GOVERNING LAW.  Except to the extent of any
  10-22  conflict with this chapter and except for any requirement that
  10-23  detached property must be annexed to a school district that is
  10-24  contiguous to the detached territory, the annexation and detachment
  10-25  is governed by Chapter 19.
  10-26        Sec. 36.063.  ALLOCATION OF APPRAISED VALUE OF DIVIDED UNIT.
  10-27  If portions of a parcel or other item of property are located in
   11-1  different school districts as a result of a detachment and
   11-2  annexation under this subchapter, the parcel or other item of
   11-3  property shall be appraised for taxation as a unit, and the
   11-4  agreement shall allocate the taxable value of the property between
   11-5  the districts.
   11-6        Sec. 36.064.  ALLOCATION OF INDEBTEDNESS.  The annexation
   11-7  agreement may allocate to the receiving district any portion of the
   11-8  indebtedness of the district from which the territory is detached,
   11-9  and the receiving district assumes and is liable for the allocated
  11-10  indebtedness.
  11-11        Sec. 36.065.  NOTICE.  As soon as practicable after the
  11-12  agreement is executed, the districts involved shall notify each
  11-13  affected property owner and the appraisal district in which the
  11-14  affected property is located.
  11-15             SUBCHAPTER D.  PURCHASE OF ATTENDANCE CREDIT
  11-16        Sec. 36.091.  AGREEMENT.  A school district with a wealth per
  11-17  student that exceeds the equalized wealth level may execute an
  11-18  agreement with the commissioner of education to purchase attendance
  11-19  credits in an amount sufficient, in combination with any other
  11-20  actions taken under this chapter, to reduce the district's wealth
  11-21  per student to a level that is equal to or less than the equalized
  11-22  wealth level.
  11-23        Sec. 36.092.  CREDIT.  (a)  For each credit purchased, the
  11-24  weighted average daily attendance of the purchasing school district
  11-25  is increased by one student in weighted average daily attendance
  11-26  for purposes of determining whether the district exceeds the
  11-27  equalized wealth level.
   12-1        (b)  A credit is not used in determining a school district's
   12-2  scholastic population, average daily attendance, or weighted
   12-3  average daily attendance for purposes of Chapter 15 or 16.
   12-4        Sec. 36.093.  COST.  The cost of each credit is an amount
   12-5  equal to the greater of:
   12-6              (1)  the amount of the district's total tax revenue per
   12-7  weighted student in average daily attendance for the school year
   12-8  for which the contract is executed; or
   12-9              (2)  the amount of the statewide district average of
  12-10  total tax revenue per weighted student in average daily attendance
  12-11  for the school year preceding the school year for which the
  12-12  contract is executed.
  12-13        Sec. 36.094.  PAYMENT.  (a)  A school district shall pay for
  12-14  credits purchased in accordance with a schedule adopted by the
  12-15  commissioner of education, with all payments being made not later
  12-16  than February 15 of the school year for which the agreement is in
  12-17  effect.
  12-18        (b)  Receipts shall be deposited in the state treasury and
  12-19  may be used only for foundation school program purposes.
  12-20        Sec. 36.095.  DURATION.  An agreement under this section is
  12-21  valid for one school year and, subject to Section 36.096, may be
  12-22  renewed annually.
  12-23        Sec. 36.096.  VOTER APPROVAL.  (a)  After first executing an
  12-24  agreement under this section, the board of trustees shall order and
  12-25  conduct an election, in the manner provided by Sections
  12-26  19.003(d)-(h), to obtain voter approval of the agreement.
  12-27        (b)  The ballot shall be printed to provide for voting for or
   13-1  against the proposition:  "Authorizing the board of trustees of
   13-2  ________ School District to purchase attendance credits from the
   13-3  state with local tax revenues."
   13-4        (c)  The proposition is approved if the proposition receives
   13-5  a favorable vote of a majority of the votes cast.  If the
   13-6  proposition is approved, the agreement executed by the board is
   13-7  ratified, and the board has continuing authority to execute
   13-8  agreements under this subchapter on behalf of the district without
   13-9  further voter approval.
  13-10     SUBCHAPTER E.  CONTRACT FOR EDUCATION OF NONRESIDENT STUDENTS
  13-11        Sec. 36.121.  AGREEMENT.  The board of trustees of a district
  13-12  with a wealth per student that exceeds the equalized wealth level
  13-13  may execute an agreement to educate the students of another
  13-14  district in a number that, when the weighted average daily
  13-15  attendance of the students served is added to the weighted average
  13-16  daily attendance of the contracting district, is sufficient, in
  13-17  combination with any other actions taken under this chapter, to
  13-18  reduce the district's wealth per student to a level that is equal
  13-19  to or less than the equalized wealth level.  The agreement is not
  13-20  effective unless the commissioner of education certifies that the
  13-21  transfer of weighted average daily attendance will not result in
  13-22  any of the contracting districts' wealth per student being greater
  13-23  than the equalized wealth level and that the agreement requires an
  13-24  expenditure per weighted student in average daily attendance that
  13-25  is at least equal to the amount per weighted student in average
  13-26  daily attendance required under Section 36.093, unless it is
  13-27  determined by the commissioner that a quality educational program
   14-1  can be delivered at a lesser amount.
   14-2        Sec. 36.122.  VOTER APPROVAL.  (a)  After first executing an
   14-3  agreement under this section, the board of trustees of the district
   14-4  that will be educating nonresident students shall order and conduct
   14-5  an election, in the manner provided by Sections 19.003(d)-(h), to
   14-6  obtain voter approval of the agreement.
   14-7        (b)  The ballot shall be printed to provide for voting for or
   14-8  against the proposition:  "Authorizing the board of trustees of
   14-9  ________ School District to educate students of other school
  14-10  districts with local tax revenues."
  14-11        (c)  The proposition is approved if the proposition receives
  14-12  a favorable vote of a majority of the votes cast.  If the
  14-13  proposition is approved, the agreement executed by the board is
  14-14  ratified, and the board has continuing authority to execute
  14-15  agreements under this subchapter on behalf of the district without
  14-16  further voter approval.
  14-17        Sec. 36.123.  WADA COUNT.  For purposes of Chapter 16,
  14-18  students served under an agreement under this subchapter are
  14-19  counted only in the weighted average daily attendance of the
  14-20  district providing the services.
  14-21                 SUBCHAPTER F.  TAX BASE CONSOLIDATION
  14-22        Sec. 36.151.  AGREEMENT.  The board of trustees of two or
  14-23  more school districts may execute an agreement to conduct an
  14-24  election on the creation of a consolidated taxing district for the
  14-25  maintenance and operation of the component school districts.  The
  14-26  agreement is subject to approval by the commissioner of education.
  14-27  The agreement is not effective unless the commissioner of education
   15-1  certifies that the consolidated taxing district will have a wealth
   15-2  per student equal to or less than the equalized wealth level after
   15-3  all actions taken under this chapter.
   15-4        Sec. 36.152.  DATE OF ELECTION.  Any agreement under this
   15-5  subchapter must provide for the ordering of an election to be held
   15-6  on the same date in each district.
   15-7        Sec. 36.153.  PROPOSITION.  (a)  The ballot shall be printed
   15-8  to provide for voting for or against the proposition:  "Creation of
   15-9  a consolidated taxing district composed of the territory of
  15-10  _________________________ school districts, and authorizing the
  15-11  levy, assessment, and collection of annual ad valorem taxes for the
  15-12  maintenance of the public free schools within that taxing district
  15-13  at a rate not to exceed $_________ on the $100 valuation of taxable
  15-14  property."
  15-15        (b)  The rate to be included in the proposition shall be
  15-16  provided by the agreement among the districts but may not exceed
  15-17  the maximum rate provided by law for independent school districts.
  15-18        Sec. 36.154.  APPROVAL.  The proposition is approved only if
  15-19  the proposition receives a favorable vote of the majority of the
  15-20  votes cast within each participating school district.
  15-21        Sec. 36.155.  CONSOLIDATED TAXING DISTRICT.  A consolidated
  15-22  taxing district is a school district established for the limited
  15-23  purpose of exercising the taxing power authorized by Article VII,
  15-24  Section 3, of the Texas Constitution and distributing the revenue
  15-25  to its component school districts.
  15-26        Sec. 36.156.  GOVERNANCE.  (a)  The consolidated taxing
  15-27  district is governed by the boards of the component school
   16-1  districts acting jointly.
   16-2        (b)  Any action taken by the joint board must receive a
   16-3  favorable vote of a majority of each component district's board of
   16-4  trustees.
   16-5        Sec. 36.157.  MAINTENANCE TAX.  (a)  The joint board  shall
   16-6  levy a maintenance tax for the benefit of the component school
   16-7  districts not later than September 1 of each year or as soon
   16-8  thereafter as practicable.
   16-9        (b)  Each component district shall bear a share of the costs
  16-10  of assessing and collecting taxes in proportion to the component
  16-11  district's share of weighted average daily attendance in the
  16-12  consolidated taxing district.
  16-13        (c)  A component district may not levy an ad valorem tax for
  16-14  the maintenance and operation of the schools.
  16-15        (d)  Notwithstanding Sections 20.04 and 20.09, the
  16-16  consolidated taxing district may levy, assess, and collect a
  16-17  maintenance tax for the benefit of the component districts at a
  16-18  rate that exceeds $1.50 per $100 valuation of taxable property to
  16-19  the extent necessary to pay contracted obligations on the lease
  16-20  purchase of permanent improvements to real property entered into on
  16-21  or before May 12, 1993.  The proposition to impose taxes at the
  16-22  necessary rate must be submitted to the voters in the manner
  16-23  provided by Section 20.04.
  16-24        Sec. 36.158.  REVENUE DISTRIBUTION.  The consolidated taxing
  16-25  district shall distribute maintenance tax revenue to the component
  16-26  districts on the basis of the number of weighted students in
  16-27  average daily attendance in the component districts.
   17-1        Sec. 36.159.  TAXES OF COMPONENT DISTRICTS.  (a)  The
   17-2  governing board of a component school district of a consolidated
   17-3  taxing district that has consolidated for maintenance and operation
   17-4  purposes only may issue bonds and levy, pledge, and collect ad
   17-5  valorem taxes within that component district sufficient to pay the
   17-6  principal of and interest on those bonds as provided by Chapter 20.
   17-7        (b)  A component district levying an ad valorem tax under
   17-8  this section or Section 36.160(b)(1) is entitled to the guaranteed
   17-9  yield provided by Subchapter H, Chapter 16, for that portion of its
  17-10  tax rate that, when added to the maintenance tax levied by the
  17-11  consolidated taxing unit, does not exceed the limitation provided
  17-12  by Section 16.303.
  17-13        Sec. 36.160.  OPTIONAL TOTAL TAX BASE CONSOLIDATION.  (a)  An
  17-14  agreement executed under Section 36.151 may provide for total tax
  17-15  base consolidation instead of consolidation for maintenance and
  17-16  operation purposes only.
  17-17        (b)  Under an agreement providing for total tax base
  17-18  consolidation:
  17-19              (1)  the component districts may not levy maintenance
  17-20  or bond taxes, except to the extent necessary to retire bonds and
  17-21  other obligations issued before the effective date of the
  17-22  consolidation;
  17-23              (2)  the joint board may issue bonds and levy, pledge,
  17-24  and collect ad valorem taxes sufficient to pay the principal of and
  17-25  interest on those bonds, and issue refunding bonds, as provided by
  17-26  Chapter 20 for independent school districts; and
  17-27              (3)  to the end of the ballot proposition required
   18-1  under Section 36.153(a) shall be added ", and further to create a
   18-2  consolidated tax base for the repayment of all bonded indebtedness
   18-3  issued by the joint board of the taxing district after the
   18-4  effective date of the consolidation and to authorize the joint
   18-5  board to levy, pledge, and collect ad valorem taxes at a rate
   18-6  sufficient to pay the principal of and interest on those bonds."
   18-7        (c)  Under an agreement providing for total tax base
   18-8  consolidation:
   18-9              (1)  the component districts may provide for the
  18-10  consolidated taxing district to assume all of the indebtedness of
  18-11  all component districts; and
  18-12              (2)  to the end of the ballot proposition required by
  18-13  Section 36.153(a) shall be added ", and further to create a
  18-14  consolidated tax base for the repayment of all bonded indebtedness
  18-15  issued by the joint board of the taxing district or previously
  18-16  issued by the component school districts and to authorize the joint
  18-17  board to levy, pledge, and collect ad valorem taxes at a rate
  18-18  sufficient to pay the principal of and interest on those bonds."
  18-19              SUBCHAPTER G.  DETACHMENT AND ANNEXATION BY
  18-20                       COMMISSIONER OF EDUCATION
  18-21        Sec. 36.201.  DEFINITION.  In this subchapter, "mineral
  18-22  property" means a real property mineral interest that has been
  18-23  severed from the surface estate by a mineral lease creating a
  18-24  determinable fee or by a conveyance that creates an interest
  18-25  taxable separately from the surface estate.  A mineral property
  18-26  includes each royalty interest, working interest, or other
  18-27  undivided interest in the mineral property.
   19-1        Sec. 36.202.  DETERMINATION OF TAXABLE VALUE.  (a)  For
   19-2  purposes of this subchapter, the taxable value of an individual
   19-3  parcel or other item of property and the total taxable value of
   19-4  property in a school district resulting from the detachment of
   19-5  property from or annexation of property to that district is
   19-6  determined by applying the appraisal ratio for the appropriate
   19-7  category of property determined under Section 11.86 for the
   19-8  preceding tax year to the taxable value of the detached or annexed
   19-9  property determined under Title 1, Tax Code, for the preceding tax
  19-10  year.
  19-11        (b)  For purposes of this subchapter, the taxable value of
  19-12  all or a portion of a parcel or item of real property includes the
  19-13  taxable value of personal property having taxable situs at the same
  19-14  location as the real property.
  19-15        Sec. 36.203.  PROPERTY SUBJECT TO DETACHMENT AND ANNEXATION.
  19-16  (a)  Only the following property may be detached and annexed under
  19-17  this subchapter:
  19-18              (1)  a mineral property;
  19-19              (2)  real property used in the operation of a public
  19-20  utility, including a pipeline, pipeline gathering system, or
  19-21  railroad or other rail system; and
  19-22              (3)  real property used primarily for industrial or
  19-23  other commercial purposes, other than property used primarily for
  19-24  agriculture or for residential purposes.
  19-25        (b)  If a final judgment of a court determines that a mineral
  19-26  interest may not be annexed and detached as provided by this
  19-27  subchapter without an attendant annexation and detachment of the
   20-1  surface estate or any other interest in the same land, the
   20-2  detachment and annexation of a mineral interest under this
   20-3  subchapter includes the surface estate and each other interest in
   20-4  the land covered by the mineral interest.
   20-5        Sec. 36.204.  TAXATION OF PERSONAL PROPERTY.  Personal
   20-6  property having a taxable situs at the same location as real
   20-7  property detached and annexed under this subchapter is taxable by
   20-8  the school district to which the real property is annexed.
   20-9        Sec. 36.205.  DETACHMENT OF PROPERTY.  (a)  The commissioner
  20-10  shall detach property under this section from each school district
  20-11  from which the commissioner is required under Section 36.004 to
  20-12  detach property under this subchapter.
  20-13        (b)  The commissioner shall detach from each school district
  20-14  covered by Subsection (a) one or more whole parcels or items of
  20-15  property in descending order of the taxable value of each parcel or
  20-16  item, beginning with the parcel or item having the greatest taxable
  20-17  value, until the school district's wealth per student is equal to
  20-18  or less than the equalized wealth level, except as otherwise
  20-19  provided by Subsection (c).
  20-20        (c)  If the detachment of whole parcels or items of property,
  20-21  as provided by Subsection (a) would result in a district's wealth
  20-22  per student that is less than the equalized wealth level by more
  20-23  than $10,000, the commissioner may not detach the last parcel or
  20-24  item of property and shall detach the next one or more parcels or
  20-25  items of property in descending order of taxable value that would
  20-26  result in the school district having a wealth per student that is
  20-27  equal to or less than the equalized wealth level by not more than
   21-1  $10,000.
   21-2        (d)  Notwithstanding Subsections (a)-(c), the commissioner
   21-3  may detach only a portion of a parcel or item of property if:
   21-4              (1)  it is not possible to reduce the district's wealth
   21-5  per student to a level that is equal to or less than the equalized
   21-6  wealth level under this subchapter unless some or all of the parcel
   21-7  or item of property is detached and the detachment of the whole
   21-8  parcel or item would result in the district from which it is
   21-9  detached having a wealth per student that is less than the
  21-10  equalized wealth level by more than $10,000; or
  21-11              (2)  the commissioner determines that a partial
  21-12  detachment of that parcel or item of property is preferable to the
  21-13  detachment of one or more other parcels or items having a lower
  21-14  taxable value in order to minimize the number of parcels or items
  21-15  of property to be detached consistent with the purposes of this
  21-16  chapter.
  21-17        Sec. 36.206.  ANNEXATION OF PROPERTY.  (a)  The commissioner
  21-18  shall annex property detached under Section 36.205 to school
  21-19  districts eligible for annexation in accordance with this section.
  21-20  A school district is eligible for annexation of property to it
  21-21  under this subchapter only if, before any detachments or
  21-22  annexations are made in a year, the district's wealth per student
  21-23  is less than the greatest level for which funds are provided under
  21-24  Subchapter H, Chapter 16.
  21-25        (b)  Property may be annexed to a school district without
  21-26  regard to whether the property is contiguous to other property in
  21-27  that district.
   22-1        (c)  The commissioner shall annex property detached from
   22-2  school districts beginning with the property detached from the
   22-3  school district with the greatest wealth per student before
   22-4  detachment, and continuing with the property detached from each
   22-5  other school district in descending order of the district's wealth
   22-6  per student before detachment.
   22-7        (d)  The commissioner shall annex the parcels or items of
   22-8  property detached from a school district to other school districts
   22-9  that are eligible for annexation of property in descending order of
  22-10  the taxable value of each parcel or item according to the following
  22-11  priorities:
  22-12              (1)  first, to the eligible school districts assigned
  22-13  to the same county as the school district from which the property
  22-14  is detached whose total adopted tax rate for the preceding tax year
  22-15  does not exceed by more than $0.15 the total tax rate adopted for
  22-16  that year by the school district from which the property is
  22-17  detached;
  22-18              (2)  second, to the eligible school districts served by
  22-19  the same Regional Education Service Center as the district from
  22-20  which the property is detached whose total adopted tax rate for the
  22-21  preceding tax year does not exceed by more than $0.10 the total tax
  22-22  rate adopted for that year by the school district from which the
  22-23  property is detached; and
  22-24              (3)  third, to other eligible school districts whose
  22-25  total adopted tax rate for the preceding tax year does not exceed
  22-26  by more than $0.05 the total tax rate adopted for that year by the
  22-27  school district from which the property is detached.
   23-1        (e)  If the districts identified by Subsection (d) for a
   23-2  school district are insufficient to annex all the property detached
   23-3  from the school district, the commissioner shall increase, for
   23-4  purposes of this section, all the maximum difference in tax rates
   23-5  allowed under Subsection (d) in increments of $0.01 until the
   23-6  districts are identified that are sufficient to annex all the
   23-7  property detached from the district.
   23-8        (f)  If only one school district is eligible to annex
   23-9  property detached from a school district within a priority group
  23-10  established by Subsections (d) and (e), the commissioner shall
  23-11  annex property to that district until it reaches a wealth per
  23-12  student equal as nearly as possible to the greatest level for which
  23-13  funds are provided under Subchapter H, Chapter 16, by annexing
  23-14  whole parcels or items of property.  Any remaining detached
  23-15  property shall be annexed to eligible school districts in the next
  23-16  priority group as provided by this section.
  23-17        (g)  If more than one school district is eligible to annex
  23-18  property detached from a school district within a priority group
  23-19  established by Subsections (d) and (e), the commissioner shall
  23-20  first annex property to the district within the priority group to
  23-21  which could be annexed the most taxable value of property without
  23-22  increasing its wealth per student above the greatest level for
  23-23  which funds are provided under Subchapter H, Chapter 16, until that
  23-24  district reaches a wealth per student equal as nearly as possible
  23-25  to the greatest level for which funds are provided under Subchapter
  23-26  H, Chapter 16, by annexing whole parcels or items of property.
  23-27  Then any additional detached property shall be annexed in the same
   24-1  manner to other eligible school districts in the same priority
   24-2  group in descending order of capacity to receive taxable value of
   24-3  annexed property without increasing the district's wealth per
   24-4  student above the greatest level for which funds are provided under
   24-5  Subchapter H, Chapter 16.  If every school district in a priority
   24-6  group reaches a wealth per student equal to the greatest level for
   24-7  which funds are provided under Subchapter H, Chapter 16, as nearly
   24-8  as possible, the remaining detached property shall be annexed to
   24-9  school districts in the next priority group in the manner provided
  24-10  by this section.
  24-11        (h)  For purposes of this section, a portion of a parcel or
  24-12  item of property detached in that subdivided form from a school
  24-13  district is treated as a whole parcel or item of property.
  24-14        (i)  The commissioner may order the annexation of a portion
  24-15  of a parcel or item of property, including a portion of property
  24-16  treated as a whole parcel or item under Subsection (h), if:
  24-17              (1)  the annexation of the whole parcel or item would
  24-18  result in the district eligible to receive it in the appropriate
  24-19  priority order provided by this section having a wealth per student
  24-20  greater than $10,000 more than the greatest level for which funds
  24-21  are provided under Subchapter H, Chapter 16; or
  24-22              (2)  the commissioner determines that annexation of
  24-23  portions of the parcel or item would reduce disparities in district
  24-24  wealth per student more efficiently than would be possible if the
  24-25  parcel or item were annexed as a whole.
  24-26        (j)  The commissioner may modify the priorities established
  24-27  by this section as the commissioner considers reasonable to
   25-1  minimize or reduce the number of school districts to which the
   25-2  property detached from a school district is annexed, to minimize or
   25-3  reduce the geographic dispersal of property in a school district,
   25-4  to minimize or reduce disparities in school district wealth per
   25-5  student that would otherwise result, or to minimize or reduce any
   25-6  administrative burden or expense.
   25-7        (k)  For purposes of this section, a school district is
   25-8  assigned to a county if the school district is assigned to that
   25-9  county in the 1992-1993 Texas School Directory published by the
  25-10  Central Education Agency.
  25-11        Sec. 36.207.  LIMITATIONS ON DETACHMENT AND ANNEXATION.  The
  25-12  commissioner may detach and annex property under this subchapter
  25-13  only if:
  25-14              (1)  the property is not exempt from ad valorem
  25-15  taxation under Section 11.20 or 11.21, Tax Code; and
  25-16              (2)  the property does not contain a building or
  25-17  structure owned by the United States, this state, or a political
  25-18  subdivision of this state that is exempt from ad valorem taxation
  25-19  under law.
  25-20        Sec. 36.208.  ORDERS AND NOTICE.  (a)  The commissioner shall
  25-21  order any detachments and annexations of property under this
  25-22  subchapter not later than November 8 of each year.
  25-23        (b)  As soon as practicable after issuing the order under
  25-24  Subsection (a), the commissioner shall notify each affected school
  25-25  district and the appraisal district in which the affected property
  25-26  is located of the determination.
  25-27        Sec. 36.209.  TREATMENT OF SUBDIVIDED PROPERTY.  (a)  If the
   26-1  commissioner orders the detachment or annexation of a portion of a
   26-2  parcel or item of property under this subchapter, the order shall
   26-3  specify the portion of the taxable value of the property to be
   26-4  detached or annexed and may, but need not, describe the specific
   26-5  area of the parcel or item to be detached or annexed.
   26-6        (b)  If an order for the detachment or annexation of a
   26-7  portion of a parcel or item of property does not describe the
   26-8  specific area of the parcel or item to be detached or annexed, the
   26-9  commissioner, as soon as practicable after issuing the order, shall
  26-10  determine the specific area to be detached or annexed and shall
  26-11  certify that determination to the appraisal district for the county
  26-12  in which the property is located.
  26-13        (c)  If portions of a parcel or item of property are located
  26-14  in two or more school districts as the result of a detachment or
  26-15  annexation, the parcel or item shall be appraised for taxation as a
  26-16  unit, and the commissioner shall determine the portion of the
  26-17  taxable value of the property that is located in each of those
  26-18  school districts based on the square footage of the property, or
  26-19  any other reasonable method adopted by the commissioner.
  26-20        Sec. 36.210.  DUTIES OF CHIEF APPRAISER.  (a)  The chief
  26-21  appraiser of each appraisal district shall cooperate with the
  26-22  commissioner in administering this subchapter.  The commissioner
  26-23  may require the chief appraiser to submit any reports or provide
  26-24  any information available to the chief appraiser in the form and at
  26-25  the times required by the commissioner.
  26-26        (b)  As soon as practicable after the detachment and
  26-27  annexation of property, the chief appraiser of the appraisal
   27-1  district for the school district from which the property is
   27-2  detached shall send a written notice of the detachment and
   27-3  annexation to the owner of any property taxable in a different
   27-4  school district as a result of the detachment and annexation.  The
   27-5  notice must include the name of the school district by which the
   27-6  property is taxable after the detachment and annexation.
   27-7        (c)  The commissioner may reimburse an appraisal district for
   27-8  any costs incurred in administering this subchapter and may
   27-9  condition the reimbursement or the amount of the reimbursement on
  27-10  the timely submission of reports or information required by the
  27-11  commissioner or the satisfactory performance of any other action
  27-12  required or requested by the commissioner.
  27-13        Sec. 36.211.  STUDENT ATTENDANCE.  A student who is a
  27-14  resident of real property detached from a school district may
  27-15  choose to attend school in that district or in the district to
  27-16  which the property is annexed.  For purposes of determining average
  27-17  daily attendance under Section 16.006, the student shall be counted
  27-18  in the district to which the property is annexed.  If the student
  27-19  chooses to attend school in the district from which the property is
  27-20  detached, the state shall withhold any foundation school funds from
  27-21  the district to which the property is annexed and shall allocate to
  27-22  the district in which the student is attending school those funds
  27-23  and the amount of funds equal to the difference between the state
  27-24  funds the district is receiving for the student and the district's
  27-25  cost in educating the student.
  27-26        Sec. 36.212.  BOND TAXES.  Property detached from a school
  27-27  district is released from the obligation for any tax to pay
   28-1  principal and interest on bonds authorized by the district before
   28-2  detachment.  The property is subject to any tax to pay principal or
   28-3  interest on bonds authorized by the district to which the property
   28-4  is annexed whether authorized before or after annexation.
   28-5        Sec. 36.213.  DETERMINATION BY COMMISSIONER FINAL.  A
   28-6  decision or determination of the commissioner of education under
   28-7  this subchapter is final and not appealable.
   28-8       SUBCHAPTER H.  CONSOLIDATION BY COMMISSIONER OF EDUCATION
   28-9        Sec. 36.251.  COMMISSIONER ORDER.  If the commissioner of
  28-10  education is required under Section 36.004 to order the
  28-11  consolidation of districts, the consolidation is governed by this
  28-12  subchapter.  The commissioner's order shall be effective on a date
  28-13  determined by the commissioner, but not later than the earliest
  28-14  practicable date after November 8.
  28-15        Sec. 36.252.  SELECTION CRITERIA.  (a)  In selecting the
  28-16  districts to be consolidated with a district that has a property
  28-17  wealth greater than the equalized wealth level, the commissioner
  28-18  shall select one or more districts with a wealth per student that,
  28-19  when consolidated, will result in a consolidated district with a
  28-20  wealth per student equal to or less than the equalized wealth
  28-21  level.  In achieving that result, the commissioner shall give
  28-22  priority to school districts in the following order:
  28-23              (1)  first, to the contiguous district that has the
  28-24  lowest wealth per student and is located in the same county;
  28-25              (2)  second, to the district that has the lowest wealth
  28-26  per student and is located in the same county;
  28-27              (3)  third, to a contiguous district with a property
   29-1  wealth below the equalized wealth level that has requested the
   29-2  commissioner that it be considered in a consolidation plan;
   29-3              (4)  fourth, to include as few districts as possible
   29-4  that fall below the equalized wealth level within the consolidation
   29-5  order that have not requested the commissioner to be included;
   29-6              (5)  fifth, to the district that has the lowest wealth
   29-7  per student and is located in the same regional education service
   29-8  center area; and
   29-9              (6)  sixth, to a district that has a tax rate similar
  29-10  to that of the district that has a property wealth greater than the
  29-11  equalized wealth level.
  29-12        (b)  The commissioner may not select a district that has been
  29-13  created as a result of consolidation by agreement under Subchapter
  29-14  B to be consolidated under this subchapter with a district that has
  29-15  a property wealth greater than the equalized wealth level.
  29-16        (c)  In applying the selection criteria specified by
  29-17  Subsection (a), if more than two districts are to be consolidated,
  29-18  the commissioner shall select the third and each subsequent
  29-19  district to be consolidated by treating the district that has a
  29-20  property wealth greater than the equalized wealth level and the
  29-21  district or districts previously selected for consolidation as one
  29-22  district.
  29-23        Sec. 36.253.  GOVERNANCE.  (a)  Until the initial trustees
  29-24  elected as provided by Subsection (b) have qualified and taken
  29-25  office, a district consolidated under this subchapter is governed
  29-26  by a transitional board of trustees consisting of the board of
  29-27  trustees of the district having the greatest student membership on
   30-1  the last day of the school year preceding the consolidation plus
   30-2  one member of the board of trustees of each other consolidating
   30-3  district selected by that board.
   30-4        (b)  The transitional board of trustees shall divide the
   30-5  consolidated district into nine single-member trustee districts in
   30-6  accordance with the procedures provided by Section 23.024.  The
   30-7  transitional board shall order an election for the initial board of
   30-8  trustees to be held on the first January uniform election date
   30-9  after the effective date of a consolidation order.
  30-10        (c)  Members of the board of trustees of a consolidated
  30-11  district serve staggered terms of office for four years.
  30-12        (d)  Section 19.058 applies to districts consolidated under
  30-13  this subchapter.
  30-14        Sec. 36.254.  DISSOLUTION OF CONSOLIDATED DISTRICT.  (a)  If
  30-15  the legislature abolishes ad valorem taxes for public school
  30-16  maintenance and operations and adopts another method of funding
  30-17  public education, the board of trustees of a consolidated district
  30-18  created under this subchapter may dissolve the consolidated
  30-19  district, provided that the dissolution is approved by a majority
  30-20  of those voters residing within the district participating in an
  30-21  election called for the purpose of approving the dissolution of the
  30-22  consolidated school district.
  30-23        (b)  If a consolidated district is dissolved, each of the
  30-24  former districts is restored as a separate district and is
  30-25  classified as an independent district.
  30-26        (c)  Title to real property of the consolidated district is
  30-27  allocated to the restored district in which the property is
   31-1  located.  Title to proportionate shares of the fund balances and
   31-2  personal property of the consolidated district, as determined by
   31-3  Subsection (e), are allocated to each restored district.
   31-4        (d)  Each of the restored districts assumes and is liable
   31-5  for:
   31-6              (1)  indebtedness of the consolidated district that
   31-7  relates to real property allocated to the district; and
   31-8              (2)  a proportionate share, as determined by Subsection
   31-9  (e), of indebtedness of the consolidated district that does not
  31-10  relate to real property.
  31-11        (e)  A restored district's proportionate share of fund
  31-12  balances, personal property, or indebtedness is equal to the
  31-13  proportion that the number of students in average daily attendance
  31-14  in the restored district bears to the number of students in average
  31-15  daily attendance in the consolidated district.
  31-16        Sec. 36.255.  FUND BALANCES.  Fund balances of a school
  31-17  district consolidated under this subchapter may be used only for
  31-18  the benefit of the schools within the district that generated the
  31-19  funds.
  31-20        Sec. 36.256.  EMPLOYMENT CONTRACTS.  A consolidated district
  31-21  created under this subchapter shall honor an employment contract
  31-22  entered into by a consolidating district.
  31-23        Sec. 36.257.  APPLICATION OF SMALL AND SPARSE ADJUSTMENTS AND
  31-24  TRANSPORTATION ALLOTMENT.  The budget of the consolidated district
  31-25  must apply the benefit of the adjustment or allotment to the
  31-26  schools of the consolidating district to which Section 16.103,
  31-27  16.104, or 16.156 would have applied in the event that the
   32-1  consolidated district still qualifies as a small or sparse
   32-2  district.
   32-3        SECTION 1.02.  (a)  Subsection (a), Section 18.03, Education
   32-4  Code, is amended to read as follows:
   32-5        (a)  A county-unit system may not be adopted under this
   32-6  chapter after May 1, 1993.  A system purportedly created after that
   32-7  date is dissolved September 1, 1993.  This subsection does not
   32-8  affect the existence or operation of a county-unit system adopted
   32-9  before that date.  <Any county in this state may, at an election
  32-10  called for that purpose under the provisions of this chapter and to
  32-11  the extent herein provided, adopt a county-unit system of education
  32-12  for the purpose of levying, assessing, and collecting a school
  32-13  equalization tax and for such other administrative purposes as are
  32-14  authorized in this chapter.>
  32-15        (b)  Sections 18.04, 18.21, 18.22, 18.23, 18.24, and 18.31,
  32-16  Education Code, are repealed.
  32-17        SECTION 1.03.  (a)  Notwithstanding any provision of Chapter
  32-18  36, Education Code, as added by this Act, this section applies to
  32-19  actions in 1993 to achieve the equalized wealth level.
  32-20        (b)  The commissioner shall make the determinations of wealth
  32-21  per student not later than August 30, 1993.  The commissioner may
  32-22  use wealth and weighted student data from the current year or the
  32-23  preceding school year for purposes of those determinations.  The
  32-24  commissioner shall immediately notify each district that exceeds
  32-25  the equalized wealth level and each district with which the
  32-26  commissioner intends to consolidate that district under Subchapter
  32-27  G, Chapter 36, Education Code, as added by this Act.
   33-1        (c)  Notwithstanding Section 36.006(b), Education Code, as
   33-2  added by this Act, if not later than October 19, 1993, a school
   33-3  district notified under Section 36.004(a)(1), Education Code, as
   33-4  added by this Act, has not exercised one or more options under
   33-5  Section 36.003, Education Code, as added by this Act, that reduce
   33-6  the district's wealth per student to a level equal to or less than
   33-7  the equalized wealth level, the commissioner of education, not
   33-8  later than November 8, 1993, shall order detachment of territory as
   33-9  provided by Subchapter G, Chapter 36, Education Code, as added by
  33-10  this Act.  If detachment under that subchapter will not reduce the
  33-11  district's wealth per student to a level equal to or less than the
  33-12  equalized wealth level, the commissioner of education shall order
  33-13  the consolidation of the district with one or more other districts
  33-14  as provided by Subchapter H, Chapter 36, Education Code, as added
  33-15  by this Act.
  33-16        SECTION 1.04.  This article takes effect immediately.
  33-17                               ARTICLE 2
  33-18        SECTION 2.01.  Chapter 16, Education Code, is reenacted and
  33-19  amended to read as follows:
  33-20                CHAPTER 16.  FOUNDATION SCHOOL PROGRAM
  33-21                   SUBCHAPTER A.  GENERAL PROVISIONS
  33-22        Sec. 16.001.  State Policy.  (a)  It is the policy of the
  33-23  State of Texas that the provision of public education is a state
  33-24  responsibility and that a thorough and efficient system be provided
  33-25  and substantially financed through state revenue sources so that
  33-26  each student enrolled in the public school system shall have access
  33-27  to programs and services that are appropriate to his or her
   34-1  educational needs and that are substantially equal to those
   34-2  available to any similar student, notwithstanding varying local
   34-3  economic factors.
   34-4        (b)  The public school finance system of the State of Texas
   34-5  shall adhere to a standard of neutrality which provides for
   34-6  substantially equal access to similar revenue per student at
   34-7  similar tax effort, considering all state and local tax revenues of
   34-8  districts after acknowledging all legitimate student and district
   34-9  cost differences.
  34-10        Sec. 16.002.  Purpose of Foundation School Program.  (a)  The
  34-11  purposes of the Foundation School Program set forth in this chapter
  34-12  are to guarantee that each school district in the state has:
  34-13              (1)  adequate resources to provide each eligible
  34-14  student a basic instructional program and facilities suitable to
  34-15  the student's educational needs; and
  34-16              (2)  access to a substantially equalized program of
  34-17  financing in excess of basic costs for certain services, as
  34-18  provided by this chapter.
  34-19        (b)  The Foundation School Program consists of two tiers to
  34-20  provide for the purposes specified by Subsection (a) of this
  34-21  section.  The first tier guarantees sufficient financing for all
  34-22  school districts to provide a basic program of education that meets
  34-23  accreditation and other legal standards.  The second tier provides
  34-24  a guaranteed yield system of financing to provide all school
  34-25  districts with substantially equal access to funds to provide an
  34-26  enriched program and additional funds for facilities.
  34-27        Sec. 16.003.  Student Eligibility.  (a)  A student is
   35-1  entitled to the benefits of the Foundation School Program if he is
   35-2  5 years of age or older and under 21 years of age at the beginning
   35-3  of the scholastic year and has not graduated from high school.
   35-4        (b)  A student to whom Subsection (a) of this section does
   35-5  not apply is entitled to the benefits of the Foundation School
   35-6  Program if the student is enrolled in a prekindergarten class under
   35-7  Section 21.136 of this code.
   35-8        (c)  The commissioner of education, in consultation with the
   35-9  Commissioner of Human Services, shall monitor and evaluate
  35-10  prekindergarten programs in the State of Texas as to their
  35-11  developmental appropriateness.  Furthermore, the commissioner of
  35-12  education, in consultation with the Commissioner of Human Services,
  35-13  shall evaluate the potential for coordination on a statewide basis
  35-14  of prekindergarten programs with government-funded early childhood
  35-15  care and education programs such as child care administered under
  35-16  Chapter 44 of the Human Resources Code and federal Head Start
  35-17  programs.  This evaluation shall utilize recommendations contained
  35-18  in the report to the 71st Legislature required by Chapter 717, Acts
  35-19  of the 70th Legislature, Regular Session, 1987.  For the purpose of
  35-20  providing cost-effective care for children during the full work day
  35-21  with developmentally appropriate curriculum, the commissioners
  35-22  shall investigate the use of existing child care program sites as
  35-23  prekindergarten sites.  Following the evaluation required by this
  35-24  section, the commissioners, in cooperation with school districts
  35-25  and other program administrators, shall integrate programs, staff,
  35-26  and program sites for prekindergarten, child care, and federal Head
  35-27  Start programs to the greatest extent possible.
   36-1        (d)  A child may be enrolled in the first grade if he is at
   36-2  least six years of age at the beginning of the scholastic year or
   36-3  has been enrolled in the first grade or has completed kindergarten
   36-4  in the public schools in another state prior to transferring to a
   36-5  Texas public school.
   36-6        Sec. 16.005.  Administration of the Program.  The
   36-7  commissioner of education, in accordance with the rules of the
   36-8  State Board of Education, shall take such action and require such
   36-9  reports consistent with the terms of this chapter as may be
  36-10  necessary to implement and administer the Foundation School
  36-11  Program.
  36-12        Sec. 16.006.  Average Daily Attendance.  (a)  In this
  36-13  chapter:
  36-14              (1)  for the 1993-1994 and 1994-1995 school years,
  36-15  average daily attendance is determined by the daily attendance as
  36-16  averaged each month of the minimum school year as described under
  36-17  Section 16.052(a); and
  36-18              (2)  for the 1995-1996 school year and each year
  36-19  thereafter, average daily attendance is the quotient of the sum of
  36-20  attendance for each day of the minimum school year as described
  36-21  under Section 16.052(a) and for each day approved by the
  36-22  commissioner of education for an extended year program under
  36-23  Section 21.562 divided by the number of days in the minimum school
  36-24  year <of this code>.
  36-25        (b)  A school district that experiences a decline of two
  36-26  percent or more in average daily attendance as a result of the
  36-27  closing or reduction in personnel of a military base shall be
   37-1  funded on the basis of the actual average daily attendance of the
   37-2  immediately preceding school year.
   37-3        (c)  The commissioner of education shall adjust the average
   37-4  daily attendance of school districts that have a significant
   37-5  percentage of students whose parent or guardian is a migrant
   37-6  worker.  For the purposes of this subsection, "migrant worker" has
   37-7  the meaning assigned by Section 35.029 <21.5515> of this code.
   37-8        (d)  The commissioner may adjust the average daily attendance
   37-9  of a school district in which a disaster, flood, extreme weather
  37-10  condition, fuel curtailment, or other calamity has a significant
  37-11  effect on the district's attendance.
  37-12        Sec. 16.007.  Public Education Information Management System
  37-13  (PEIMS).  (a)  Each school district <and each county education
  37-14  district> shall participate in the Public Education Information
  37-15  Management System (PEIMS) and shall provide through that system
  37-16  information required for the administration of this chapter and of
  37-17  other appropriate provisions of this code.
  37-18        (b)  Each school district shall use a uniform accounting
  37-19  system adopted by the commissioner of education for the data
  37-20  required to be reported for the Public Education Information
  37-21  Management System.
  37-22        (c)  Annually, the commissioner of education shall review the
  37-23  Public Education Information Management System and shall repeal or
  37-24  amend rules that require school districts to provide information
  37-25  through the Public Education Information Management System that is
  37-26  not necessary or useful.  In reviewing and revising the Public
  37-27  Education Information Management System, the commissioner shall
   38-1  develop rules to ensure that the system provides useful, accurate,
   38-2  and timely information on student demographics and academic
   38-3  performance, personnel, and school district finances.  <The Central
   38-4  Education Agency shall report annually to the Legislative Education
   38-5  Board the financial status of each county education district.  The
   38-6  report shall include the total state and local education revenues
   38-7  for each tier of the Foundation School Program.>
   38-8        Sec. 16.008.  EQUALIZED FUNDING ELEMENTS.  (a)  The
   38-9  Legislative Education Board shall adopt rules, subject to
  38-10  appropriate notice and opportunity for public comment, for the
  38-11  calculation for each year of a biennium of the qualified funding
  38-12  elements under Section 16.256(e) of this code necessary to achieve
  38-13  the state policy under Section 16.001 of this code not later than
  38-14  the 1994-1995 school year and for each school year thereafter.
  38-15        (b)  Not <Beginning in 1992, not> later than October 1
  38-16  preceding each regular session of the legislature, the board shall
  38-17  report the equalized funding elements to the foundation school fund
  38-18  budget committee, the commissioner of education, and the
  38-19  legislature.
  38-20        <Sec. 16.009.  REVENUE LIMIT.  (a)  The revenue limit is an
  38-21  amount equal to 110 percent of the amount of state and local funds
  38-22  guaranteed under the Foundation School Program per student in
  38-23  weighted average daily attendance to each school district at a
  38-24  total tax rate of $0.25 per $100 of taxable value of property as
  38-25  calculated for the 1994-1995 school year.>
  38-26        <(b)  Not later than April 15, the commissioner of education
  38-27  shall estimate the revenue limit for each school district for the
   39-1  current school year and shall certify that amount to each school
   39-2  district.>
   39-3        <(c)  Not later than August 15 of each year the commissioner
   39-4  of education shall determine as nearly as possible for the current
   39-5  school year:>
   39-6              <(1)  the total amount of state and local funds per
   39-7  student in weighted average daily attendance available in each
   39-8  school district; and>
   39-9              <(2)  the total amount of state and local funds per
  39-10  student in weighted average daily attendance required for debt
  39-11  service in each school district.>
  39-12        <(d)  The commissioner shall determine the total number of
  39-13  students in weighted average daily attendance in school districts
  39-14  in which the amount specified in Subsection (c)(1) of this section,
  39-15  less the amount specified in Subsection (c)(2) of this section,
  39-16  exceeds the revenue limit.>
  39-17        <(e)  If the total number of students in weighted average
  39-18  daily attendance in districts with state and local revenues
  39-19  exceeding the revenue limit equals or exceeds two percent of the
  39-20  total number of students in weighted average daily attendance for
  39-21  the current school year, no school district may levy a tax at a
  39-22  rate that would result in an amount of state and local funds,
  39-23  excluding funds required for debt service, during the next school
  39-24  year that exceeds the revenue limit, except that those districts
  39-25  exceeding the revenue limit may maintain during the next school
  39-26  year the total amount of state and local funds per student in
  39-27  weighted average daily attendance for the current school year.  The
   40-1  commissioner shall notify those districts in which revenues are
   40-2  subject to the limitation imposed in this subsection.>
   40-3        <(f)  In this section:>
   40-4              <(1)  "Weighted student in average daily attendance"
   40-5  has the meaning assigned in Section 16.302 of this code.>
   40-6              <(2)  "Taxable value of property" has the meaning
   40-7  assigned in Section 11.86 of this code.>
   40-8        <Sec. 16.010.  DEFINITION.  In this chapter, "school
   40-9  district" does not include a county education district unless
  40-10  expressly included.>
  40-11        <Sec. 16.011.  NOTICE OF YIELDS TO BE PUBLISHED.  (a)  Not
  40-12  earlier than the 30th day or later than the seventh day before the
  40-13  date of adopting a tax rate for the years 1991, 1992, 1993, and
  40-14  1994, a school district shall publish the following notice, using
  40-15  the yields and tax rates certified by the commissioner:>
  40-16             <"NOTICE OF COMPARABLE TAX RATES AND REVENUES>
  40-17        <"The legislature has enacted a statute on school funding to
  40-18  comply with a court mandate enforcing the state constitution.
  40-19  Under prior statutes, the tax rate for last year provides _____ per
  40-20  student in state and local revenues.  Under this statute, that same
  40-21  rate now provides _____ per student in state and local revenues.>
  40-22        <"State law only requires a minimum tax rate of _____ for
  40-23  county education districts.  State law does not require a school
  40-24  district to adopt additional taxes.  Neither does state law require
  40-25  a school district to adopt a tax rate that maximizes the receipt of
  40-26  state funds.>
  40-27        <"The board of trustees of the _____ School District hereby
   41-1  gives notice that it is considering the adoption of a tax rate of
   41-2  _____ that will provide _____ per student in state and local
   41-3  revenues.">
   41-4        <(b)  If a district is required to give public notice of a
   41-5  hearing under Section 26.06, Tax Code, the notice described by
   41-6  Subsection (a) of this section may be included in the required
   41-7  notice under Section 26.06, Tax Code.>
   41-8        <(c)  The notice described by Subsection (a) of this section
   41-9  shall be published in the two newspapers with the largest
  41-10  circulation within the school district unless only one newspaper is
  41-11  in general circulation within the district.  The notice may not be
  41-12  smaller than one-quarter page of a standard-size or a tabloid-size
  41-13  newspaper, and the headline must be 18-point or larger type.>
  41-14        <(d)  The notice described by Subsection (a) of this section
  41-15  must also be included in the tax bill or a separate statement
  41-16  accompanying the tax bill.>
  41-17        <(e)  The commissioner shall adopt rules to implement this
  41-18  section.>
  41-19        <(f)  This section expires January 1, 1995.>
  41-20     SUBCHAPTER B.  REQUIREMENTS FOR DISTRICT PARTICIPATION IN THE
  41-21                    FOUNDATION SCHOOL PROGRAM FUND
  41-22        Sec. 16.051.  Required Compliance.  In order to receive
  41-23  financial support from the Foundation School Fund, a school
  41-24  district must comply with the standards set forth in this
  41-25  subchapter.
  41-26        Sec. 16.052.  Operation of Schools; Teacher Preparation and
  41-27  Staff Development.  (a)  Each school district must provide for not
   42-1  less than 180 days of instruction for students and not less than
   42-2  three days of preparation for teachers for each school year, except
   42-3  as provided in Subsection (c) of this section.
   42-4        (b)  Each school district must provide for not less than 20
   42-5  hours of staff development training under guidelines provided by
   42-6  the commissioner of education.  The training provided must include
   42-7  technology training and must occur during regular hours of required
   42-8  teacher service.  On the request of a teacher, a school district
   42-9  may credit the teacher compensatory time to be applied toward the
  42-10  number of training hours required under this subsection for
  42-11  workshops, conferences, or other professional training that the
  42-12  teacher has attended.
  42-13        (c)  The commissioner of education may approve the operation
  42-14  of schools for less than the number of days of instruction and
  42-15  teacher preparation otherwise required when disasters, floods,
  42-16  extreme weather conditions, fuel curtailments, or other calamities
  42-17  have caused the closing of the school.
  42-18        (d)  Each school district may reserve three hours of the
  42-19  first preparation day provided each school year under Subsection
  42-20  (a) of this section for faculty staff meetings.
  42-21        (e)  The staff development required by this section must be
  42-22  predominantly campus-based, for the purpose of improving student
  42-23  achievement, and planned with the involvement of the campus school
  42-24  committee established under Section 21.931 of this code.  Campus
  42-25  staff development may include activities that enable the campus
  42-26  staff to plan together, to enhance existing skills, to share
  42-27  effective strategies, to reflect on curricular and instructional
   43-1  issues, to analyze student achievement results, to reflect on means
   43-2  of increasing student achievement, to study research, to practice
   43-3  new methods, to identify students' strengths and needs, to develop
   43-4  meaningful programs for students, to appropriately implement
   43-5  site-based decision making, and to conduct action research.  Staff
   43-6  development activities may include study teams, individual
   43-7  research, peer coaching, workshops, seminars, conferences, and
   43-8  other reasonable activities that have the potential to improve
   43-9  student achievement.
  43-10        Sec. 16.053.  ACCREDITATION.  Each school district must be
  43-11  accredited by the Central Education Agency.
  43-12        Sec. 16.054.  Student/Teacher Ratios; Class Size.
  43-13  (a)  Except as provided by Subsection (b) of this section, each
  43-14  school district must employ a sufficient number of certified
  43-15  teachers to maintain an average ratio of not less than one teacher
  43-16  for each 20 students in average daily attendance.
  43-17        (b)  A school district may not enroll more than 22 students
  43-18  in a kindergarten, first, second, third, or fourth grade class.
  43-19  This requirement shall not apply during the last 12 weeks of any
  43-20  school year.
  43-21        (c)  In determining the number of students to enroll in any
  43-22  class, a district shall consider the subject to be taught, the
  43-23  teaching methodology to be used, and any need for individual
  43-24  instruction.
  43-25        (d)  On application of a school district, the commissioner
  43-26  may except the district from the limits in Subsection (b) of this
  43-27  section if the commissioner finds the limits work an undue hardship
   44-1  on the district.  An exception expires at the end of the semester
   44-2  for which it is granted, and the commissioner may not grant an
   44-3  exception for more than one semester at a time.
   44-4        (e)  The commissioner shall report to the legislature each
   44-5  biennium regarding compliance with this section.  The report must
   44-6  include:
   44-7              (1)  a statement of the number of school districts
   44-8  granted an exception under Subsection (d) of this section; and
   44-9              (2)  an estimate of the total cost incurred by school
  44-10  districts in that biennium in complying with this section.
  44-11        Sec. 16.055.  Compensation of Professional and
  44-12  Paraprofessional Personnel.  (a)  A school district must pay each
  44-13  employee who is qualified for and employed in a position classified
  44-14  under the Texas Public Education Compensation Plan set forth in
  44-15  Section 16.056 of this chapter not less than the minimum monthly
  44-16  base salary, plus increments for teaching experience, specified for
  44-17  the position.
  44-18        (b)  Contracts for personnel shall be made on the basis of a
  44-19  minimum of 10 months' service, which must include the number of
  44-20  days of instruction for students and days of preparation for
  44-21  personnel required by Section 16.052 of this code.  The days of
  44-22  preparation required herein shall be conducted by local boards of
  44-23  education under rules and regulations established by the State
  44-24  Board of Education that are consistent with the state accreditation
  44-25  standards for program planning, preparation, and improvement.
  44-26  Personnel employed for more than 10 months shall be paid not less
  44-27  than the minimum monthly base pay plus increments for experience
   45-1  for each month of actual employment.  Personnel employed for 11
   45-2  months at pay grades 1-11 must render 202 days of service, and
   45-3  personnel employed for 12 months at pay grades 1-11 must render 220
   45-4  days of service.  Personnel employed for 11 months at pay grades
   45-5  12-18 must render 207 days of service, and personnel employed for
   45-6  12 months at pay grades 12-18 must render 226 days of service.
   45-7  However, the number of days of service required by this subsection
   45-8  may be reduced by the commissioner under Section 16.052(c) of this
   45-9  code, and the reduction shall not reduce the total salaries of
  45-10  personnel.
  45-11        (c)  Notwithstanding Subsection (b) of this section, a
  45-12  vocational agriculture teacher employed for 12 months shall render
  45-13  226 days of service regardless of pay grade.
  45-14        Sec. 16.056.  Texas Public Education Compensation Plan.
  45-15  (a)  School district personnel who are qualified for and employed
  45-16  in positions described in Subsection (d) of this section shall be
  45-17  paid not less than the monthly base salary, plus increments for
  45-18  teaching experience, set forth in Subsection (c) of this section,
  45-19  or greater amounts provided by appropriation.
  45-20        (b)  Each individual shall advance one step per each year of
  45-21  experience until step 10 is reached.  For each year, up to a
  45-22  maximum of two years, of work experience required for certification
  45-23  in a vocational field, a vocational teacher who is certified in
  45-24  that field is entitled to salary step credit as if the work
  45-25  experience were teaching experience.
  45-26        (c)  SALARY SCHEDULE BY STEPS
  45-27   0     1     2     3     4     5     6     7     8     9     10
   46-1  1700  1814  1928  2042  2156  2270  2384  2498  2612  2726  2840
   46-2        (d)  The following positions are entitled to the minimum
   46-3  monthly salary set by Subsection (c) of this section for the number
   46-4  of annual contract months specified:
   46-5          No.
   46-6       Months Paid                            Class Title
   46-7         10                               Nurse, R.N. and/or
   46-8                                            Bachelor's Degree
   46-9         10                               Special Education Related
  46-10                                            Service Personnel (other
  46-11                                            than Occupational or
  46-12                                            Physical Therapist),
  46-13                                            Bachelor's Degree
  46-14         10                               Teacher, Bachelor's Degree
  46-15         10                               Vocational Teacher,
  46-16         11                               Bachelor's Degree and/or
  46-17         12                               Certified in Field
  46-18         10                               Librarian I, Bachelor's
  46-19                                            Degree
  46-20         10                               Visiting Teacher I,
  46-21                                            Psychological Associate,
  46-22                                            Bachelor's Degree
  46-23         10                               Special Education Related
  46-24                                            Service Personnel (other
  46-25                                            than Occupational or
  46-26                                            Physical Therapist),
  46-27                                            Master's Degree
   47-1         10                               Teacher, Master's Degree
   47-2         10                               Vocational Teacher,
   47-3         11                               Master's Degree
   47-4         12
   47-5         10                               Librarian II, Master's
   47-6                                            Degree
   47-7         10                               Physician, M.D.
   47-8         10                               Teacher, Bachelor of Laws
   47-9                                            or Doctor of Jurispru-
  47-10                                            dence Degree
  47-11         10                               Teacher, Doctor's Degree
  47-12         10                               Special Duty Teacher,
  47-13                                            Master's Degree
  47-14         10                               Occupational Therapist
  47-15         10                               Physical Therapist
  47-16         10                               Educational Diagnostician
  47-17         10                               Visiting Teacher II,
  47-18                                            Master's Degree
  47-19         10                               Counselor I, Psychologist
  47-20         10                               School Social Worker
  47-21         10                               Supervisor I
  47-22         10                               Part-time Principal--11 or
  47-23                                            fewer teachers on campus
  47-24         10                               Instructional/Administra-
  47-25                                            tive Officer I
  47-26         10                               Assistant Principal--20 or
  47-27                                            more teachers on campus
   48-1         10                               Instructional/Administra-
   48-2                                            tive Officer II
   48-3         11                               Principal--19 or fewer
   48-4                                            teachers on campus
   48-5         10                               Instructional/Administra-
   48-6                                            tive Officer III
   48-7         11                               Principal--20-49 teachers
   48-8                                            on campus
   48-9         11                               Instructional/Administra-
  48-10                                            tive Officer IV
  48-11         11                               Principal--50-99 teachers
  48-12                                            on campus
  48-13         12                               Principal--100 or more
  48-14                                            teachers on campus
  48-15         12                               Instructional/Administra-
  48-16                                            tive Officer V
  48-17         12                               Instructional/Administra-
  48-18                                            tive Officer VI
  48-19         12                               Superintendent--District
  48-20                                            with 3,000
  48-21                                            or less ADA
  48-22         12                               Instructional/Administra-
  48-23                                            tive Officer VII
  48-24         12                               Superintendent--District
  48-25                                            with 3,001-12,500 ADA
  48-26         12                               Instructional/Administra-
  48-27                                            tive Officer VIII
   49-1         12                               Superintendent--District
   49-2                                            with 12,501-50,000 ADA
   49-3         12                               Superintendent--District
   49-4                                            with 50,000 or more ADA
   49-5        (e)  With the approval of the State Board of Education, the
   49-6  commissioner of education may add additional positions and months
   49-7  of service to the Texas Public Education Compensation Plan to
   49-8  reflect curriculum and program changes authorized by law.  With the
   49-9  approval of the board, the commissioner shall also develop policies
  49-10  for the implementation and administration of the compensation plan.
  49-11        (f)  Each person employed in the public schools of this state
  49-12  who is an educational aide, teacher trainee, or nondegree teacher
  49-13  or who is assigned to a position classified under the Texas Public
  49-14  Education Compensation Plan must be certified according to the
  49-15  certification requirements or standards for each position as
  49-16  established by rule adopted by the State Board of Education.
  49-17  However, additional certification may not be required of a person
  49-18  holding a valid state license as a speech language pathologist or
  49-19  audiologist.  Persons other than those holding such a license may
  49-20  only be employed to render such services if an acceptable licensed
  49-21  applicant is not available.
  49-22        (g)  The State Board of Education shall prescribe the general
  49-23  duties and required preparation and education for educational
  49-24  aides, teacher trainees, and nondegree teachers and for the
  49-25  positions listed in Subsection (d) of this section under the
  49-26  circumstances described therein.
  49-27        (h)  In determining the placement of a teacher on the salary
   50-1  schedule under Subsection (c) of this section, a district shall
   50-2  credit the teacher for each year of experience, whether or not the
   50-3  years are consecutive.  Notwithstanding the provision of this
   50-4  subsection, no teacher shall be placed on the salary schedule at a
   50-5  step above the step where the teacher would have been placed had
   50-6  that teacher remained in continuous service.
   50-7        <Sec. 16.057.  ><Career Ladder Salary Supplement><.  (a)  Except
   50-8  as provided by Subsection (c) of this section, each teacher on
   50-9  level two, three, or four of a career ladder is entitled to the
  50-10  following annual supplement in addition to the minimum salary set
  50-11  by this subchapter:>
  50-12                 <Level 2 ............. $2,000>
  50-13                 <Level 3 ............. $4,000>
  50-14                 <Level 4 ............. $6,000>
  50-15        <(b)  If the district pays more than the state minimum salary
  50-16  prescribed by this subchapter, the teacher is entitled to the
  50-17  career ladder supplement in addition to the amount otherwise paid
  50-18  by the district for the teacher's step.>
  50-19        <(c)  If the allotment under Section 16.158 of this code that
  50-20  is designated for support of the career ladder will not fully fund
  50-21  the supplements under this section:>
  50-22              <(1)  the district may reduce the supplements to not
  50-23  less than the following:>
  50-24                 <Level 2 ............. $1,500>
  50-25                 <Level 3 ............. $3,000>
  50-26                 <Level 4 ............. $4,500>
  50-27  <or;>
   51-1              <(2)  provide for stricter performance criteria than
   51-2  that provided under Section 13.302 of this code, subject to the
   51-3  approval of the State Board of Education; or>
   51-4              <(3)  take action under both Subdivisions (1) and (2)
   51-5  of this subsection.>
   51-6                   SUBCHAPTER C.  BASIC ENTITLEMENT
   51-7        Sec. 16.101.  Basic Allotment.  For each student in average
   51-8  daily attendance, not including the time students spend each day in
   51-9  special education programs in an instructional arrangement other
  51-10  than mainstream or vocational education programs, for which an
  51-11  additional allotment is made under Subchapter D of this chapter, a
  51-12  district is entitled to an allotment of $2,300 <$2,200 for the
  51-13  1991-1992 school year, $2,400 for the 1992-1993 school year, $2,600
  51-14  for the 1993-1994 school year, and $2,800 for the 1994-1995 school
  51-15  year and thereafter> or a greater amount adopted by the foundation
  51-16  school fund budget committee under Section 16.256 of this code <for
  51-17  the 1993-1994 school year and each school year thereafter>.  A
  51-18  greater amount for any school year may be provided by
  51-19  appropriation.
  51-20        Sec. 16.102.  Cost of Education Adjustment.  (a)  The basic
  51-21  allotment for each district is adjusted to reflect the geographic
  51-22  variation in known resource costs and costs of education due to
  51-23  factors beyond the control of the school district.  <Except as
  51-24  provided by this section, the adjustment is that provided under
  51-25  Section 16.206 of this code.>
  51-26        (b)  The adjustment for the 1993-1994 and 1994-1995
  51-27  <1991-1992 and 1992-1993> school years is the cost of education
   52-1  index and formula adopted in December 1990 by the foundation school
   52-2  fund budget committee.  The <For the 1991-1992 and 1992-1993 school
   52-3  years, the> commissioner of education shall recalculate the cost of
   52-4  education index for school districts that are eligible for the
   52-5  adjustment under Section 16.103 of this code, excluding from the
   52-6  computation the calculation for the diseconomies of scale component
   52-7  and substituting a value of 1.00.  Beginning with the 1995-1996
   52-8  school year, the foundation school fund budget committee shall
   52-9  determine the cost of education adjustment under Section 16.256.
  52-10  <This subsection expires September 1, 1993.>
  52-11        Sec. 16.103.  SMALL DISTRICT ADJUSTMENT.  (a)  The basic
  52-12  allotment  for  certain  small  districts  is  adjusted  in
  52-13  accordance with Subsections (b) and (c) of this section.  In this
  52-14  section:
  52-15              (1)  "AA" is the district's adjusted allotment per
  52-16  student;
  52-17              (2)  "ADA" is the number of students in average daily
  52-18  attendance for which the district is entitled to an allotment under
  52-19  Section 16.101 of this code; and
  52-20              (3)  "ABA" is the adjusted basic allotment determined
  52-21  under Section 16.102 of this code.
  52-22        (b)  The basic allotment <average daily attendance> of a
  52-23  school district that contains at least 300 square miles and has not
  52-24  more than 1,600 students in average daily attendance is adjusted by
  52-25  applying the formula:
  52-26        (c)  The basic allotment <average daily attendance> of a
  52-27  school district that contains less than 300 square miles and has
   53-1  not more than 1,600 students in average daily attendance is
   53-2  adjusted by applying the formula:
   53-3        <(e)  This section expires September 1, 1993.>
   53-4        Sec. 16.1031.  USE OF SMALL DISTRICT ADJUSTMENT IN
   53-5  CALCULATING SPECIAL ALLOTMENTS.  In determining the amount of a
   53-6  special allotment under Subchapter D of this chapter for a district
   53-7  to which Section 16.103 of this code applies, a district's adjusted
   53-8  basic allotment is considered to be the district's adjusted
   53-9  allotment determined under Section 16.103.  <This section expires
  53-10  September 1, 1993.>
  53-11        Sec. 16.104.  Sparsity Adjustment.  Notwithstanding Sections
  53-12  16.101, 16.102, and 16.103 of this code, a school district that has
  53-13  fewer than 130 students in average daily attendance shall be
  53-14  provided an adjusted basic allotment on the basis of 130 average
  53-15  daily attendance if it offers a kindergarten through grade 12
  53-16  program and has prior or current year's average daily attendance of
  53-17  at least 90 students or is 30 miles or more by bus route from the
  53-18  nearest high school district.  A district offering a kindergarten
  53-19  through grade 8 program whose prior or current year's average daily
  53-20  attendance was at least 50 students or which is 30 miles or more by
  53-21  bus route from the nearest high school district shall be provided
  53-22  an adjusted basic allotment on the basis of 75 average daily
  53-23  attendance.  An average daily attendance of 60 students shall be
  53-24  the basis of providing the adjusted basic allotment if a district
  53-25  offers a kindergarten through grade 6 program and has prior or
  53-26  current year's average daily attendance of at least 40 students or
  53-27  is 30 miles or more by bus route from the nearest high school
   54-1  district.  <This section expires September 1, 1993.>
   54-2                   SUBCHAPTER D.  SPECIAL ALLOTMENTS
   54-3        Sec. 16.151.  Special Education.  (a)  For each student in
   54-4  average daily attendance in a special education program under
   54-5  Subchapter N, Chapter 21, in a mainstream instructional
   54-6  arrangement, a school district is entitled to an annual allotment
   54-7  equal to the adjusted basic allotment multiplied by 1.1.  For each
   54-8  full-time equivalent student in average daily attendance in a
   54-9  special education program under Subchapter N, Chapter 21, of this
  54-10  code, in an instructional arrangement other than a mainstream
  54-11  instructional arrangement, a district is entitled to an annual
  54-12  allotment equal to the adjusted basic allotment multiplied by a
  54-13  weight determined according to instructional arrangement as
  54-14  follows:
  54-15              Homebound ................................... 5.0
  54-16              Hospital class ........................ 3.0 <5.0>
  54-17              Speech therapy ....................... 5.0 <7.11>
  54-18              Resource room ......................... 3.0 <2.7>
  54-19              Self-contained, mild and moderate,
  54-20              regular campus ........................ 3.0 <2.3>
  54-21              Self-contained, severe, regular
  54-22              campus ................................ 3.0 <3.5>
  54-23              Self-contained, separate campus ............. 2.7
  54-24              Multidistrict class ................... 2.7 <3.5>
  54-25              Nonpublic day school .................. 1.7 <3.5>
  54-26              Vocational adjustment class ................. 2.3
  54-27              Community class ....................... 2.7 <3.5>
   55-1              <Mainstream ............................... 0.25>
   55-2        (b)  A special instructional arrangement for handicapped
   55-3  students residing in care and treatment facilities, other than
   55-4  state schools, whose parents or guardians do not reside in the
   55-5  district providing education services shall be established under
   55-6  the rules of the State Board of Education.  The funding weight for
   55-7  this arrangement shall be 4.0 <5.0> for those students who receive
   55-8  their education service on a local school district campus.  A
   55-9  special instructional arrangement for handicapped students residing
  55-10  in state schools shall be established under the rules of the State
  55-11  Board of Education with a funding weight of 2.8 <5.0>.
  55-12        (c)  Beginning with the 1995-1996 school year, the
  55-13  self-contained, separate campus; multidistrict class; and community
  55-14  class instructional arrangements shall be combined into a single
  55-15  instructional arrangement known as the off home campus
  55-16  instructional arrangement.  For funding purposes, the number of
  55-17  contact hours credited per day for each student in the off home
  55-18  campus instructional arrangement may not exceed the contact hours
  55-19  credited per day for the multidistrict class instructional
  55-20  arrangement in the 1992-1993 school year.
  55-21        (d)  Beginning with the 1995-1996 school year, for funding
  55-22  purposes the contact hours credited per day for each student in the
  55-23  resource room; self-contained, mild and moderate; and
  55-24  self-contained, severe, instructional arrangements may not exceed
  55-25  the average of the statewide total contact hours credited per day
  55-26  for those three instructional arrangements in the 1992-1993 school
  55-27  year.
   56-1        (e)  The State Board of Education by rule shall prescribe the
   56-2  qualifications an instructional arrangement must meet in order to
   56-3  be funded as a particular instructional arrangement under this
   56-4  section.  In prescribing the qualifications that a mainstream
   56-5  instructional arrangement must meet, the board shall establish
   56-6  requirements that students with disabilities and their teachers
   56-7  receive the direct, indirect, and support services that are
   56-8  necessary to enrich the regular classroom and enable student
   56-9  success.
  56-10        (f)  In this section, "full-time equivalent student" means 30
  56-11  hours of contact a week between a special education student and
  56-12  special education program personnel.
  56-13        (g)  The State Board of Education shall adopt rules and
  56-14  procedures governing contracts for residential placement of special
  56-15  education students.  The legislature shall provide by appropriation
  56-16  for the state's share of the costs of those placements.
  56-17        (h)  Funds allocated under this section, other than an
  56-18  indirect cost allotment established under State Board of Education
  56-19  rule, must be used in the special education program under
  56-20  Subchapter N, Chapter 21, of this code.
  56-21        (i)  In the determination of instructional arrangements for
  56-22  students in residential instructional arrangements, the State Board
  56-23  of Education shall develop arrangements that encourage placement of
  56-24  students in the least restrictive environment appropriate for their
  56-25  educational needs.
  56-26        (j)  The Central Education Agency shall encourage the
  56-27  placement of students in special education programs in the least
   57-1  restrictive environment appropriate for their educational needs.
   57-2  <The Central Education Agency shall provide transitional support
   57-3  for the movement of students from self-contained severe (totally
   57-4  self-contained) to self-contained mild and moderate (partially
   57-5  self-contained) instructional arrangements.  For each student
   57-6  placed in a partially self-contained classroom who was placed in a
   57-7  totally self-contained classroom for at least two-thirds of the
   57-8  prior year, a district will receive $2,500.  This payment must be
   57-9  used to facilitate the placement of the student in the less
  57-10  restrictive environment (partially self-contained classroom).  A
  57-11  district may not receive more than one support payment for any
  57-12  individual student.  This support payment shall be forfeited by the
  57-13  district if the student is returned to the totally self-contained
  57-14  classroom instructional arrangement within one month of placement
  57-15  into the partially self-contained classroom or within one year of
  57-16  initial reclassification without adequate justification.>
  57-17        (k)  A school district that maintains for two successive
  57-18  years a ratio of full-time equivalent students placed in partially
  57-19  or totally self-contained classrooms to the number of full-time
  57-20  equivalent students placed in resource room or mainstream
  57-21  instructional arrangements <partially self-contained classrooms>
  57-22  that is 25 percent higher than the statewide average ratio shall be
  57-23  reviewed by the Central Education Agency to determine the
  57-24  appropriateness of student placement.  The commissioner of
  57-25  education may reduce the special education allotment the district
  57-26  receives to the level to which the district would be entitled if
  57-27  the district's ratio was not more than 25 percent higher than the
   58-1  statewide average ratio.  <To the extent that there are net cost
   58-2  savings to the state resulting from the movement of students from
   58-3  totally self-contained to partially self-contained, as provided in
   58-4  Subsection (j) of this section, those net savings will be directed
   58-5  to regional education service centers to provide technical
   58-6  assistance in accordance with Section 11.33(c) of this code
   58-7  regarding the movement of students to less restrictive environments
   58-8  to those school districts whose ratio of full-time equivalent
   58-9  students placed in totally self-contained classrooms is 25 percent
  58-10  higher than the statewide average.>
  58-11        (l)  A school district that provides an extended year program
  58-12  required by federal law for special education students who may
  58-13  regress is entitled to receive funds in an amount equal to 75
  58-14  percent, or a lesser percentage determined by the commissioner of
  58-15  education, of the adjusted basic allotment or adjusted allotment,
  58-16  as applicable, for each full-time equivalent student in average
  58-17  daily attendance, multiplied by the amount designated for the
  58-18  student's instructional arrangement under this section, for each
  58-19  day the program is provided divided by the number of days in the
  58-20  minimum school year.  The total amount of state funding for
  58-21  extended year services under this section may not exceed $10
  58-22  million per year.  A school district may use funds received under
  58-23  this section only in providing an extended year program <student in
  58-24  a mainstream instructional arrangement who is not also in another
  58-25  instructional arrangement as provided in Subsection (a) of this
  58-26  section is provided the support necessary for the student to remain
  58-27  in the regular classroom.  This support may include related
   59-1  services as defined in Section 21.502 of this code, special
   59-2  teaching, or other special education support services while in the
   59-3  regular classroom>.
   59-4        (m)  From the total amount of funds appropriated for special
   59-5  education under this section, the commissioner of education shall
   59-6  withhold an amount specified in the General Appropriations Act,
   59-7  which for the 1994-1995 biennium may not exceed $2 million, and
   59-8  distribute that amount to school districts for programs under
   59-9  Section 21.513.  The program established under that section is
  59-10  required only in school districts in which the program is financed
  59-11  by funds distributed under this section and any other funds
  59-12  available for the program.  After deducting the amount withheld
  59-13  under this subsection from the total amount appropriated for
  59-14  special education, the commissioner of education shall reduce each
  59-15  district's allotment proportionately and shall allocate funds to
  59-16  each district accordingly.
  59-17        Sec. 16.152.  Compensatory Education Allotment.  (a)  For
  59-18  each student who is educationally disadvantaged or who is a
  59-19  nonhandicapped student residing in a residential placement facility
  59-20  in a district in which the student's parent or legal guardian does
  59-21  not reside, a district is entitled to an annual allotment equal to
  59-22  the adjusted basic allotment multiplied by 0.2, and by 2.41 for
  59-23  each full-time equivalent student who is in a remedial and support
  59-24  program under Section 21.557 of this code because the student is
  59-25  pregnant.
  59-26        (b)  For purposes of this section, the number of
  59-27  educationally disadvantaged students is determined by averaging the
   60-1  best six months' enrollment in the national school lunch program of
   60-2  free or reduced-price lunches for the preceding school year.
   60-3        (c)  Funds allocated under this section, other than an
   60-4  indirect cost allotment established under State Board of Education
   60-5  rule, which shall not exceed 15 percent, must be used in providing
   60-6  remedial and compensatory education programs under Section 21.557
   60-7  of this code, and the district must account for the expenditure of
   60-8  state funds by program and by campus.  Funds allocated under this
   60-9  section, other than the indirect cost allotment, shall only be
  60-10  expended to improve and enhance programs and services funded under
  60-11  the regular education program.
  60-12        (d)  The Central Education Agency shall evaluate the
  60-13  effectiveness of remedial and support programs provided under
  60-14  Section 21.557 of this code for students at risk of dropping out of
  60-15  school.
  60-16        (e)  A school district in which the actual dropout rate in
  60-17  any school year exceeds the state's dropout rate goal for that year
  60-18  under Subsection (a) of Section 11.205 of this code shall, for the
  60-19  school year immediately following that school year, allocate a
  60-20  percentage of the district's allotment under this section to
  60-21  remedial and support programs under Section 21.557 of this code for
  60-22  students at risk of dropping out of school.  The percentage
  60-23  allocated to those programs must be at least equal to the state's
  60-24  actual dropout rate for the preceding year.  The programs must be
  60-25  programs authorized by the State Board of Education.  The Central
  60-26  Education Agency shall provide to the district technical assistance
  60-27  in reducing the district's dropout rate.  At the request of a
   61-1  district, the commissioner of education may exempt the district
   61-2  from the requirements of this section if the commissioner finds
   61-3  that special circumstances in the district merit the exemption.
   61-4        (f)  The commissioner of education may:
   61-5              (1)  retain a portion of the total amount allotted
   61-6  under Subsection (a) of this section that the commissioner
   61-7  considers appropriate to finance pilot programs under Section
   61-8  11.191 of this code and to finance intensive remedial instruction
   61-9  programs and study guides provided under Sections 21.552(b) and (c)
  61-10  of this code; and
  61-11              (2)  reduce each district's tier one allotments in the
  61-12  same manner described for a reduction in allotments under Section
  61-13  16.254 <allotment proportionately>.
  61-14        (g)  From the total amount of funds appropriated for
  61-15  allotments under this section, the commissioner of education shall,
  61-16  each fiscal year, withhold the amount of $10,000,000 and distribute
  61-17  that amount for programs under Section 21.114 of this code.  The
  61-18  program established under that section is required only in school
  61-19  districts in which the program is financed by funds distributed
  61-20  under this section and any other funds available for the program.
  61-21        (h)  The commissioner of education shall coordinate the funds
  61-22  withheld under Subsection (g) of this section and any other funds
  61-23  available for the program and shall distribute those funds.  To
  61-24  receive funds for the program, a school district must apply to the
  61-25  commissioner.  The commissioner shall give a preference to the
  61-26  districts that apply that have the highest concentration of
  61-27  students who are pregnant or who are parents.
   62-1        (i)  The commissioner of education shall withhold funds
   62-2  allocated under this section to a district that fails to timely
   62-3  prepare or make available on request of a member of the general
   62-4  public the report required under Section 21.557(i) of this code.
   62-5  The commissioner may restore withheld funds only when the
   62-6  commissioner is satisfied that the district has provided the
   62-7  information requested.
   62-8        (j) <(i)>  After deducting the amount withheld under
   62-9  Subsection (g) of this section from the total amount appropriated
  62-10  for the allotment under Subsection (a) of this section, the
  62-11  commissioner of education shall reduce each district's tier one
  62-12  allotments in the same manner described for a reduction in
  62-13  allotments under Section 16.254 <allotment under Subsection (a)
  62-14  proportionately> and shall allocate funds to each district
  62-15  accordingly.
  62-16        (k) <(j)>  From the total amount of funds appropriated for
  62-17  allotments under this section, the commissioner of education shall,
  62-18  each fiscal year, withhold the amount of $5,000,000 and distribute
  62-19  that amount for programs under Subchapter V, Chapter 21, of this
  62-20  code.  A program established under that subchapter is required only
  62-21  in school districts in which the program is financed by funds
  62-22  distributed under this section or other funds distributed by the
  62-23  commissioner for a program under that subchapter.
  62-24        (l) <(k)>  The commissioner of education shall coordinate the
  62-25  funds withheld under Subsection (k) <(j)> of this section and any
  62-26  other funds available for the program and shall distribute those
  62-27  funds.  To receive funds for the program, a school district must
   63-1  apply to the commissioner.  The commissioner shall give a
   63-2  preference to the districts that apply that have the highest
   63-3  concentration of at-risk students.  For each school year that a
   63-4  school district receives funds under this section, the district
   63-5  shall allocate an amount of local funds for school guidance and
   63-6  counseling programs that is equal to or greater than the amount of
   63-7  local funds that the school district allocated for that purpose
   63-8  during the preceding school year.
   63-9        (m) <(l)>  After deducting the amount withheld under
  63-10  Subsection (k) <(j)> of this section from the total amount
  63-11  appropriated for the allotment under Subsection (a) of this
  63-12  section, the commissioner of education shall reduce each district's
  63-13  tier one allotments in the same manner described for a reduction in
  63-14  allotments under Section 16.254 <allotment under Subsection (a) on
  63-15  a per pupil basis>.
  63-16        (n)  From the total amount of funds appropriated for
  63-17  allotments under this section, the commissioner of education may
  63-18  withhold an amount not exceeding $1 million each fiscal year and
  63-19  distribute the funds to school districts that incur unanticipated
  63-20  expenditures resulting from a significant increase in the
  63-21  enrollment of nonhandicapped students who reside in residential
  63-22  placement facilities.
  63-23        (o)  After deducting the amount withheld under Subsection (n)
  63-24  from the total amount appropriated for the allotment under
  63-25  Subsection (a), the commissioner of education shall reduce each
  63-26  district's allotment under Subsection (a) proportionately.
  63-27        Sec. 16.153.  BILINGUAL EDUCATION ALLOTMENT.  (a)  For each
   64-1  student in average daily attendance in a bilingual education or
   64-2  special language program under Subchapter L, Chapter 21, of this
   64-3  code, a district is entitled to an annual allotment equal to the
   64-4  adjusted basic allotment multiplied by 0.1.
   64-5        (b)  Funds allocated under this section, other than an
   64-6  indirect cost allotment established under State Board of Education
   64-7  rule, must be used in providing bilingual education or special
   64-8  language programs under Subchapter L, Chapter 21, of this code.
   64-9        (c)  A district's bilingual education or special language
  64-10  allocation may be used only for program and pupil evaluation,
  64-11  instructional materials and equipment, staff development,
  64-12  supplemental staff expenses, salary supplements for teachers, and
  64-13  other supplies required for quality instruction and smaller class
  64-14  size.
  64-15        Sec. 16.155.  VOCATIONAL EDUCATION ALLOTMENT.  (a)  For each
  64-16  full-time equivalent student in average daily attendance in an
  64-17  approved vocational education program in grades nine through 12 or
  64-18  in vocational education for the handicapped programs in grades
  64-19  seven through 12, a district is entitled to an annual allotment
  64-20  equal to the adjusted basic allotment multiplied by a weight of
  64-21  1.37.
  64-22        (b)  In this section, "full-time equivalent student" means 30
  64-23  hours of contact a week between a student and vocational education
  64-24  program personnel.
  64-25        (c)  Funds allocated under this section, other than an
  64-26  indirect cost allotment established under State Board of Education
  64-27  rule, must be used in providing vocational education programs in
   65-1  grades nine through 12 or vocational education for the handicapped
   65-2  programs in grades seven through 12 under the provisions of
   65-3  Sections 21.111, 21.1111, and 21.112 of this code.
   65-4        (d)  The indirect cost allotment established under board
   65-5  rules shall first be effective for the 1991-1992 school year
   65-6  consistent with the weight effective that year.
   65-7        (e)  The commissioner shall conduct a cost-benefit comparison
   65-8  between vocational education programs and mathematics and science
   65-9  programs.
  65-10        (f) <(h)>  Out of the total statewide allotment for
  65-11  vocational education under this section, the commissioner of
  65-12  education shall set aside an amount specified in the General
  65-13  Appropriations Act, which may not exceed an amount equal to one
  65-14  percent of the total amount appropriated, to support regional
  65-15  vocational education planning committees established under Section
  65-16  21.115(b) of this code.  After deducting the amount set aside under
  65-17  this subsection from the total amount appropriated for vocational
  65-18  education under this section, the commissioner shall reduce each
  65-19  district's tier one allotments <allotment> in the same manner
  65-20  described for a reduction in allotments <state funds> under Section
  65-21  16.254 <16.254(d)> of this code.
  65-22        Sec. 16.156.  TRANSPORTATION ALLOTMENT.  (a)  Each district
  65-23  or county operating a transportation system is entitled to
  65-24  allotments for transportation costs as provided by this section.
  65-25        (b)  As used in this section:
  65-26              (1)  "Regular eligible pupil" means a pupil who resides
  65-27  two or more miles from his or her campus of regular attendance,
   66-1  measured along the shortest route that may be traveled on public
   66-2  roads, and who is not classified as an eligible handicapped pupil.
   66-3              (2)  "Eligible handicapped pupil" means a pupil who is
   66-4  handicapped as defined in Section 21.503 of this code and who would
   66-5  be unable to attend classes without special transportation
   66-6  services.
   66-7              (3)  "Linear density" means the average number of
   66-8  regular eligible pupils transported daily, divided by the approved
   66-9  daily route miles traveled by the respective transportation system.
  66-10        (c)  Each district or county operating a regular
  66-11  transportation system is entitled to an allotment based on the
  66-12  daily cost per regular eligible pupil of operating and maintaining
  66-13  the regular transportation system and the linear density of that
  66-14  system.  In determining the cost, the commissioner shall give
  66-15  consideration to factors affecting the actual cost of providing
  66-16  these transportation services in each district or county.  The
  66-17  average actual cost is to be computed by the commissioner of
  66-18  education and included for consideration by the Foundation School
  66-19  Fund Budget Committee and the legislature in the General
  66-20  Appropriations Act.  The allotment per mile of approved route may
  66-21  not exceed the amount set by appropriation.
  66-22        (d)  A district or county may apply for and on approval of
  66-23  the commissioner of education receive an additional amount of up to
  66-24  10 percent of its regular transportation allotment to be used for
  66-25  the transportation of children living within two miles of the
  66-26  school they attend who would be subject to hazardous traffic
  66-27  conditions if they walked to school.  Each board of trustees shall
   67-1  provide to the commissioner the definition of hazardous conditions
   67-2  applicable to that district and shall identify the specific
   67-3  hazardous areas for which the allocation is requested.  A hazardous
   67-4  condition exists where no walkway is provided and children must
   67-5  walk along or cross a freeway or expressway, an underpass, an
   67-6  overpass or a bridge, an uncontrolled major traffic artery, an
   67-7  industrial or commercial area, or another comparable condition.
   67-8        (e)  The <state> commissioner of education may grant an
   67-9  amount set by appropriation for private or commercial
  67-10  transportation for eligible pupils from isolated areas.   The need
  67-11  for this type of transportation grant shall be determined on an
  67-12  individual basis and the amount granted shall not exceed the actual
  67-13  cost.  The grants shall be made only in extreme hardship cases, and
  67-14  no grants shall be made if the pupils live within two miles of an
  67-15  approved school bus route.
  67-16        (f)  The cost of transporting vocational education students
  67-17  from one campus to another inside a district or from a sending
  67-18  district to another secondary public school for a vocational
  67-19  program or an area vocational school or to an approved
  67-20  post-secondary institution under a contract for instruction
  67-21  approved by the Central Education Agency shall be reimbursed based
  67-22  on the number of actual miles traveled times the district's
  67-23  official extracurricular travel per mile rate as set by their local
  67-24  board of trustees and approved by the Central Education Agency.
  67-25        (g)  A school district or county that provides special
  67-26  transportation services for eligible handicapped pupils is entitled
  67-27  to a state allocation paid on a previous year's cost-per-mile
   68-1  basis.  The maximum rate per mile allowable shall be set by
   68-2  appropriation based on data gathered from the first year of each
   68-3  preceding biennium.  Districts may use a portion of their support
   68-4  allocation to pay transportation costs, if necessary.  The
   68-5  commissioner of education may grant an amount set by appropriation
   68-6  for private transportation to reimburse parents or their agents for
   68-7  transporting eligible handicapped pupils.  The mileage allowed
   68-8  shall be computed along the shortest public road from the pupil's
   68-9  home to school and back, morning and afternoon.  The need for this
  68-10  type transportation shall be determined on an individual basis and
  68-11  shall be approved only in extreme hardship cases.
  68-12        (h)  The allocation for eligible regular students transported
  68-13  by the regular transportation system shall be increased by five
  68-14  percent for any district or county school board which has complied
  68-15  with the provisions of Section 21.173 of this code in accordance
  68-16  with rules adopted by the State Board of Education.
  68-17        (i)  Funds allotted under this section must be used in
  68-18  providing transportation services.
  68-19        (j)  In the case of a district belonging to a county
  68-20  transportation system, the district's transportation allotment for
  68-21  purposes of determining a district's foundation school program
  68-22  allocations shall be determined on the basis of the number of
  68-23  approved daily route miles in the district multiplied by the
  68-24  allotment per mile to which the county transportation system is
  68-25  entitled.
  68-26        Sec. 16.158.  TEACHER COMPENSATION <CAREER LADDER> ALLOTMENT.
  68-27  (a)  Each district is entitled to an allotment for teacher
   69-1  compensation <support of the career ladder> equal to its unadjusted
   69-2  average daily attendance multiplied by $90.
   69-3        (b)  Except as provided by Subsection (d), an <An> allotment
   69-4  under this section may be used only for the purposes of paying the
   69-5  salaries of teachers who were entitled to career ladder
   69-6  supplements.
   69-7        (c)  <From the funds designated for that purpose, the
   69-8  district shall supplement the salary of each teacher above level
   69-9  one on the career ladder.  The district shall decide the amount of
  69-10  supplement to be provided at each career ladder level.>
  69-11        <(d)>  Money received under this section may not be used to
  69-12  supplement the salary of an employee for directing cocurricular or
  69-13  extracurricular activities.
  69-14        (d)  If an allotment under this section exceeds the amount
  69-15  necessary to pay the salaries of teachers who were entitled to
  69-16  career ladder supplements as provided by Section 16.058, a district
  69-17  shall use the excess to supplement salaries of other teachers.
  69-18        Sec. 16.159.  Gifted and Talented Student Allotment.
  69-19  (a)  For each student a school district serves in a Central
  69-20  Education Agency approved program for gifted and talented students
  69-21  under Subchapter Q, Chapter 21, of this code or, in the case of a
  69-22  district that is developing a program in accordance with standards
  69-23  established by the commissioner of education, for each student the
  69-24  district identifies as gifted and talented under State Board of
  69-25  Education criteria, a district is entitled to an annual allotment
  69-26  equal to the district's adjusted basic allotment as determined
  69-27  under Section 16.102 or Section 16.103 of this code, as applicable,
   70-1  multiplied by .12 for each school year or a greater amount provided
   70-2  by appropriation.
   70-3        (b)  Funds allocated under this section, other than the
   70-4  amount that represents the program's share of general
   70-5  administrative costs, must be used in providing approved programs
   70-6  for gifted and talented students under Subchapter Q, Chapter 21, of
   70-7  this code or, in the case of a district that has not yet
   70-8  established a program, in developing programs for gifted and
   70-9  talented students.  Each district must account for the expenditure
  70-10  of state funds as provided by rule of the State Board of Education.
  70-11  If by the end of the 12th month after receiving an allotment for
  70-12  developing a program a district has failed to implement an approved
  70-13  program, the district must refund the amount of the allotment to
  70-14  the agency within 30 days.
  70-15        (c)  Not more than five percent of a district's students in
  70-16  average daily attendance are eligible for funding under this
  70-17  section.
  70-18        (d)  If the amount of state funds for which school districts
  70-19  are eligible under this section exceeds the amount of state funds
  70-20  appropriated in any year for the programs, the commissioner of
  70-21  education shall reduce each district's tier one allotments in the
  70-22  same manner described for a reduction in allotments under Section
  70-23  16.254 <allotment on a pro rata basis>.
  70-24        (e)  If the total amount of funds allotted under this section
  70-25  before a date set by rule of the State Board of Education is less
  70-26  than the total amount appropriated for a school year, the
  70-27  commissioner shall distribute the remainder proportionately to the
   71-1  districts that have received an allotment, and no other districts
   71-2  are eligible for an allotment for that school year.
   71-3        (f)  After each district has received allotted funds for this
   71-4  program, the State Board of Education may use up to $500,000 of the
   71-5  funds allocated under this section for programs such as Future
   71-6  Problem Solving Olympics of the Mind, and Academic Decathlon, as
   71-7  long as these funds are used to train personnel and provide program
   71-8  services.  To be eligible for funding under this section, a program
   71-9  must be determined by the State Board of Education to provide
  71-10  services that are effective and consistent with the state plan for
  71-11  gifted and talented education.
  71-12        Sec. 16.160.  TECHNOLOGY FUNDS.  (a)  Developmental and
  71-13  technology allotment allocations under the provisions of Chapter 14
  71-14  are included in the Foundation School Program.
  71-15        (b)  Each district shall be allotted the amount specified in
  71-16  Section 14.063 of this code after deductions by the commissioner of
  71-17  education for the purposes of financing programs authorized under
  71-18  Subchapter C, Chapter 14, of this code.
  71-19             SUBCHAPTER F.  ACCOUNTABLE COSTS OF EDUCATION
  71-20        Sec. 16.201.  Purpose.  The accountable costs of education
  71-21  studies are designed to support the development of the equalized
  71-22  funding elements necessary to provide an efficient state and local
  71-23  public school finance system which meets the state policy
  71-24  established in Section 16.001 of this code and provides the
  71-25  research basis for the equalized funding elements under the
  71-26  provisions of Section 16.256 of this code.
  71-27        <Sec. 16.202.  STUDIES.  On a biennial basis, the Legislative
   72-1  Education Board and the Legislative Budget Board, with the
   72-2  assistance of the Educational Economic Policy Center and the
   72-3  Central Education Agency, shall complete each of the following
   72-4  studies and develop recommended amounts where appropriate for each
   72-5  year of the next biennium:>
   72-6              <(1)  a study of the fiscal neutrality of the system to
   72-7  determine the status of the state and local finance system with
   72-8  regard to the policies established under the provisions of Section
   72-9  16.001 of this code, including recommendations for adjustments
  72-10  necessary to maintain fiscal neutrality;>
  72-11              <(2)  the accountable costs per student to school
  72-12  districts of providing educational programs, personnel, and other
  72-13  operating costs that meet accreditation criteria and the provisions
  72-14  of law and regulation;>
  72-15              <(3)  program cost differentials designed by program to
  72-16  provide support for the added expense of high-cost courses or
  72-17  programs for students participating in such courses or programs,
  72-18  with the program funding level expressed as dollar amounts and as
  72-19  weights applied to the adjusted basic allotment for the appropriate
  72-20  year;>
  72-21              <(4)  transportation and career ladder allotments;>
  72-22              <(5)  the levels of tax effort necessary for each tier
  72-23  of the Foundation School Program necessary to fulfill the
  72-24  requirements of Sections 16.001 and 16.008 of this code; and>
  72-25              <(6)  capital outlay and debt service requirements and
  72-26  formula elements for the requirements of Subchapter I of this
  72-27  chapter or other provisions of this chapter.>
   73-1        <Sec. 16.203.  PROCEDURES.  (a)  The program cost
   73-2  differentials developed jointly by the Legislative Education Board
   73-3  and the Legislative Budget Board shall be submitted to the
   73-4  foundation school fund budget committee for adoption beginning with
   73-5  the 1993-1994 school year.  If the foundation school fund budget
   73-6  committee fails to adopt by April 1 the program cost differentials
   73-7  for the following school year, the commissioner of education, after
   73-8  considering the recommendations developed by those boards, shall
   73-9  adopt program cost differentials.>
  73-10        <(b)  The commissioner of education shall provide appropriate
  73-11  assistance to the boards for the calculation of the various funding
  73-12  elements.  Subject to review by the Legislative Education Board,
  73-13  the commissioner of education shall retain from the allotments
  73-14  under Sections 16.102 and 16.103 of this code and Subchapter D of
  73-15  this chapter amounts appropriate to finance necessary additional
  73-16  costs for the studies required under this subchapter.>
  73-17        <(c)  The boards may appoint advisory committees to assist in
  73-18  the development of the various funding elements and studies
  73-19  required under this subchapter.  Advisory committee members serve
  73-20  without compensation but are entitled to reimbursement for actual
  73-21  and necessary expenses incurred in the performance of their duties.
  73-22  Reimbursement shall be from funds available under Subsection (b) of
  73-23  this section or from other funds available to the boards.>
  73-24        <(d)  In the studies relating to program cost differentials
  73-25  the boards shall give special consideration to cost factors
  73-26  associated with class size, laboratory expenses, materials,
  73-27  equipment, teacher training, necessary salary supplementation, and
   74-1  special services related to individual courses or groups of
   74-2  courses.>
   74-3        <Sec. 16.204.  ><Naval Military Facility Impact><.  (a)  The
   74-4  model on which a cost of education index is based must specifically
   74-5  consider the impact of a significant new naval military facility on
   74-6  each district in an impacted region.>
   74-7        <(b)  If the construction or operation of a significant new
   74-8  naval military facility begins during a school year, the
   74-9  Legislative Education Board and the Legislative Budget Board shall
  74-10  recommend the adjustment of the basic allotment during that school
  74-11  year to consider any impact of the facility on the cost of
  74-12  education index of the districts in the impacted region.>
  74-13        <(c)  In this section, "significant new naval military
  74-14  facility" and "impacted region" have the meanings assigned by
  74-15  Section 4, Article 1, National Defense Impacted Region Assistance
  74-16  Act of 1985 (Article 689a-4d, Vernon's Texas Civil Statutes).>
  74-17        <(d)  This section expires September 1, -1993.>
  74-18        Sec. 16.205.  LIMIT ON ADMINISTRATIVE COSTS.  (a)  The
  74-19  commissioner of education by rule shall determine annually:
  74-20              (1)  an administrative cost ratio for school districts
  74-21  with fewer than 500 students in average daily attendance;
  74-22              (2)  an administrative cost ratio for school districts
  74-23  with 500 to 999 students in average daily attendance;
  74-24              (3)  an administrative cost ratio for school districts
  74-25  with 1,000 to 4,999 students in average daily attendance;
  74-26              (4)  an administrative cost ratio for school districts
  74-27  with 5,000 to 9,999 students in average daily attendance; and
   75-1              (5)  an administrative cost ratio for school districts
   75-2  with more than 10,000 students in average daily attendance.
   75-3        (b)  The commissioner of education may adjust the
   75-4  administrative cost ratio of a district to allow for additional
   75-5  administrative costs required by:
   75-6              (1)  the sparsity of the district; or
   75-7              (2)  students with special needs.
   75-8        (c)  Not later than February 1 of each year, the commissioner
   75-9  of education shall notify all districts of the requirements and
  75-10  standards for determining administrative cost ratios for the
  75-11  following year.  Not later than May 1 of each year, Central
  75-12  Education Agency staff shall conduct a desk audit of prior-year
  75-13  expenditure data available through the Public Education Information
  75-14  Management System (PEIMS) to identify those districts whose
  75-15  administrative cost ratio in the prior year exceeded their adjusted
  75-16  group standard.  Districts with an administrative cost ratio in
  75-17  excess of their adjusted group standard shall be notified not later
  75-18  than May 15 that they have excessive administrative costs and that
  75-19  they are required to reduce these costs to the level of the
  75-20  adjusted group standard for the following school year.  Not later
  75-21  than the 60th day after receiving notification, a district shall
  75-22  respond to the commissioner of education by submitting a
  75-23  description of the district's plan to comply with the standard for
  75-24  the following year or request a waiver from the commissioner of
  75-25  education explaining why the district cannot comply with the
  75-26  standard.  Not later than August 15, the commissioner of education
  75-27  shall notify responding districts if further action is needed.
   76-1        (d)  If a school district fails to reduce administrative
   76-2  costs to the level required by this section, the commissioner of
   76-3  education shall deduct from a school district's tier one allotments
   76-4  an amount equal to the amount by which the district's
   76-5  administrative costs exceed the amount permitted by its
   76-6  administrative cost ratio, unless the commissioner has granted a
   76-7  waiver in response to the district's request.  The commissioner
   76-8  shall make a deduction under this subsection from the foundation
   76-9  school fund payments to the district in the school year following
  76-10  the school year in which the plan to reduce costs was to be
  76-11  implemented.  If a school district does not receive a tier one
  76-12  allotment, the district shall remit an amount equal to the excess
  76-13  to the comptroller for deposit to the credit of the foundation
  76-14  school fund.
  76-15        (e)  The commissioner of education may grant a waiver to a
  76-16  school district that exceeds its administrative cost ratio if the
  76-17  excess is justified by unusual circumstances.
  76-18        (f)  A school district shall include a statement of any
  76-19  amount withheld or remitted under Subsection (d) in the district
  76-20  report card required by Section 35.042.
  76-21        (g)  In this section:
  76-22              (1)  "Administrative cost ratio" means a school
  76-23  district's administrative costs divided by its instructional costs,
  76-24  expressed as a percentage.
  76-25              (2)  "Administrative costs" are defined as operating
  76-26  expenses made from funds other than federal funds associated with
  76-27  managing, planning, directing, coordinating, and evaluating a
   77-1  school district in accordance with Accounting functions 21 -
   77-2  Instructional Administration, and 41 - General Administration as
   77-3  described in the Financial Accounting Manual Bulletin 679 for
   77-4  Budgeting, Accounting, and Auditing in Texas Public Schools, Ninth
   77-5  Edition, published by the Central Education Agency.
   77-6              (3)  "Instructional costs" are defined as operating
   77-7  expenses made from funds other than federal funds associated with
   77-8  teacher-student instruction in accordance with Accounting functions
   77-9  11 - Instruction, 22 - Instructional Resources and Media Services,
  77-10  25 - Curriculum and Instructional Staff Development, and 31 -
  77-11  Guidance and Counseling Services as described in the Financial
  77-12  Accounting Manual Bulletin 679 for Budgeting, Accounting, and
  77-13  Auditing in Texas Public Schools, Ninth Edition, published by the
  77-14  Central Education Agency.
  77-15              (4)  "Adjusted group standard" is the acceptable
  77-16  administrative cost ratio for each district as determined in
  77-17  accordance with Subsections (a) and (b).  <EFFICIENCY IN
  77-18  ADMINISTRATION REPORT.  (a)  The commissioner of education shall
  77-19  conduct a study to determine the most appropriate and efficient
  77-20  method for reporting and monitoring the allocation of resources by
  77-21  school districts.>
  77-22        <(b)  The study shall identify the most effective means for
  77-23  calculating, monitoring, and reporting the proportion of resources
  77-24  that school districts allocate for their administrative costs and
  77-25  shall include administrator-teacher ratios.>
  77-26        <(c)  The study shall include a description of average
  77-27  efficient administrative expenditures by districts with
   78-1  consideration of district size and demographics.>
   78-2        <(d)  Prior to the beginning of each regular session of the
   78-3  legislature, the agency shall provide a report with recommendations
   78-4  to the Legislative Education Board and the legislature.>
   78-5        <(e)  The study is an element of the study of accountable
   78-6  costs of education under this subchapter.>
   78-7        <Sec. 16.206.  COST ADJUSTMENTS.  (a)  The lieutenant
   78-8  governor shall appoint five members of the senate and the speaker
   78-9  of the house of representatives shall appoint five members of the
  78-10  house to a committee to conduct a study of certain costs of
  78-11  providing public education as provided by this section.  The
  78-12  lieutenant governor and the speaker shall make the appointments not
  78-13  later than September 1, 1991.>
  78-14        <(b)  The committee shall examine methods of adjusting for
  78-15  specific resource cost variations caused by factors beyond the
  78-16  control of school districts.  The committee shall recommend
  78-17  adjustments for these factors that will provide the most efficient
  78-18  service delivery considering optimum district size, enrollment
  78-19  growth, and other cost factors.  For the purpose of the study, the
  78-20  committee shall divide districts and campuses into a variety of
  78-21  categories that may include region, size, area, density,
  78-22  educational characteristics, and economic conditions.>
  78-23        <(c)  The committee may appoint one or more advisory panels
  78-24  to assist the committee in conducting the study.  Advisory panel
  78-25  members serve without compensation but are entitled to
  78-26  reimbursement for actual and necessary expenses incurred in the
  78-27  performance of their duties.>
   79-1        <(d)  The committee shall recommend adjustments to the
   79-2  Foundation School Program for resource cost variations caused by
   79-3  factors beyond the control of school districts to the foundation
   79-4  school fund budget committee not later than June 1, 1992.  The
   79-5  adjustments shall include:>
   79-6              <(1)  an adjustment to account for fast enrollment
   79-7  growth and other factors relevant to a district's need for
   79-8  facilities; and>
   79-9              <(2)  appropriate treatment of the calculation of
  79-10  weighted students under Section 16.302 of this code.>
  79-11        <(e)  The foundation school fund budget committee by rule
  79-12  shall adopt adjustments to the Foundation School Program for
  79-13  resource cost variations beyond the control of school districts to
  79-14  apply beginning with the 1993-1994 school year.  The foundation
  79-15  school fund budget committee shall report the adjustments adopted
  79-16  to the legislature and the commissioner of education.  If the
  79-17  foundation school fund budget committee fails to adopt the
  79-18  adjustments by November 1, 1992, the commissioner of education by
  79-19  rule shall adopt adjustments not later than December 1, 1992.>
  79-20        <(f)  The rules adopted under this section apply beginning
  79-21  with the 1993-1994 school year.  If no rules are adopted under this
  79-22  section, the basic allotment calculated under Sections 16.008 and
  79-23  16.256(e) of this code shall be increased to reflect the costs
  79-24  associated with the adjustments made by the cost of education index
  79-25  and formula for the 1992-1993 school year.>
  79-26                 SUBCHAPTER G.  FINANCING THE PROGRAM
  79-27        Sec. 16.251.  FINANCING; GENERAL RULE.  (a)  The sum of the
   80-1  basic allotment under Subchapter C and<,> the special allotments
   80-2  under Subchapter D, computed in accordance with this chapter,
   80-3  constitute the tier one allotments.  The sum of the tier one
   80-4  allotments and the guaranteed yield allotments under Subchapter H,
   80-5  computed in accordance with <the provisions of> this chapter,
   80-6  constitute the total cost of the Foundation School Program.
   80-7        (b)  The program shall be financed by:
   80-8              (1)  ad valorem tax revenue generated by an equalized
   80-9  uniform school <county education> district effort;
  80-10              (2)  ad valorem tax revenue generated by local school
  80-11  district effort in excess of the equalized uniform school <county
  80-12  education> district effort;
  80-13              (3)  state available school funds distributed in
  80-14  accordance with law; and
  80-15              (4)  state funds appropriated for the purposes of
  80-16  public school education and allocated to each district in an amount
  80-17  sufficient to finance the cost of each district's Foundation School
  80-18  Program not covered by other funds specified in this subsection.
  80-19        (c)  The commissioner of education shall compute for each
  80-20  school district the total amount, if any, by which the district's
  80-21  total revenue is reduced from one school year to the next because
  80-22  of a change in the method of finance under this chapter.  The
  80-23  commissioner shall certify the amount of the reduction to the
  80-24  school district for use in determining the school district's
  80-25  rollback rate under Section 26.08, Tax Code.
  80-26        Sec. 16.252.  LOCAL SHARE OF PROGRAM COST (TIER ONE).
  80-27  (a)  Each school <county education> district's share of the
   81-1  Foundation School Program shall be an amount determined by the
   81-2  following formula:
   81-3  where:
   81-4        "LFA" is the school <county education> district's local
   81-5  share;
   81-6        "TR" is a tax rate which for each hundred   dollars  of
   81-7  valuation  is  an effective  tax  rate of $0.86 <$0.72 for the
   81-8  1991-1992 school year, $0.82 for the 1992-1993 school year, $0.92
   81-9  for the 1993-1994 school year, and $1.00 for each school year
  81-10  thereafter>; and
  81-11        "DPV" is the taxable value of property in the school <county
  81-12  education> district for the prior tax year determined under Section
  81-13  11.86 of this code.
  81-14        (b)  The commissioner of education shall adjust the values
  81-15  reported in the official report of the comptroller as required by
  81-16  Section 5.09(a), <Property> Tax Code, to reflect reductions in
  81-17  taxable value of property resulting from natural or economic
  81-18  disaster after January 1 in the year in which the valuations are
  81-19  determined.  The decision of the commissioner of education shall be
  81-20  final.  An adjustment does not affect the local fund assignment of
  81-21  any other school <county education> district.
  81-22        (c)  Appeals of district values shall be held pursuant to
  81-23  Subsection (e) of Section 11.86 of this code.
  81-24        (d)  A school <county education> district must <shall> raise
  81-25  its total local share of the foundation school program to be
  81-26  eligible to receive foundation school fund payments.  <The funds
  81-27  shall be reallocated to the school districts in the county
   82-1  education district in the manner prescribed by Subchapter J of this
   82-2  chapter.>
   82-3        (e)  The commissioner of education shall hear appeals from
   82-4  school <county education> districts which have experienced a rapid
   82-5  decline in tax base used in calculating the local fund assignment,
   82-6  exceeding eight percent of prior year, that is beyond the control
   82-7  of the board of trustees of the <county education> district.  The
   82-8  commissioner of education may adjust the <county education>
   82-9  district's taxable values for local fund assignment purposes for
  82-10  such losses in value exceeding eight percent and thereby adjust the
  82-11  local fund assignment to reflect the local current year taxable
  82-12  value.  The decision of the commissioner of education shall be
  82-13  final.  An adjustment does not affect the local fund assignment of
  82-14  any other school <county education> district.  This subsection
  82-15  shall apply to determinations by the commissioner in identifying
  82-16  districts with wealth per student exceeding the equalized wealth
  82-17  level pursuant to Section 36.004.
  82-18        Sec. 16.254.  DISTRIBUTION OF FOUNDATION SCHOOL FUND.
  82-19  (a)  For each school year the commissioner of education shall
  82-20  determine:
  82-21              (1)  the amount of money to which a school district is
  82-22  entitled under Subchapters C and D;
  82-23              (2)  the amount of money to which a school district is
  82-24  entitled under Subchapter H;
  82-25              (3)  the amount of money allocated to the district from
  82-26  the available school fund;
  82-27              (4)  the amount of each district's tier one local share
   83-1  under Section 16.252; and
   83-2              (5)  the amount of each district's tier two local share
   83-3  under Section 16.303.
   83-4        (b)  The commissioner shall base the determinations under
   83-5  Subsection (a) on the estimates provided to the legislature under
   83-6  Section 16.2541 for each school district for each school year or
   83-7  different estimates provided by the General Appropriations Act.
   83-8        (c)  Each school district is entitled to an amount equal to
   83-9  the difference for that district between the sum of Subsections
  83-10  (a)(1) and (a)(2) and the sum of Subsections (a)(3), (a)(4), and
  83-11  (a)(5).
  83-12        (d)  The commissioner shall approve warrants to each school
  83-13  district equaling the amount of its entitlement except as provided
  83-14  by this section.  Warrants for all money expended according to this
  83-15  chapter shall be approved and transmitted to treasurers or
  83-16  depositories of school districts in the same manner that warrants
  83-17  for state payments are transmitted.  The total amount of the
  83-18  warrants issued under this section may not exceed the total amount
  83-19  appropriated for foundation school program purposes for that fiscal
  83-20  year.
  83-21        (e)  The commissioner shall recompute the amount to which the
  83-22  district is entitled under Subsection (c) if a school district's
  83-23  tax rate is less than the limit authorized under this subsection.
  83-24  The amount to which a district is entitled under this section may
  83-25  not exceed the amount to which the district would be entitled at
  83-26  the district's tax rate for the final year of the preceding
  83-27  biennium, or a different tax rate provided by appropriation.  The
   84-1  commissioner shall recompute the amount to which a district is
   84-2  entitled to the extent necessary under this section.  The
   84-3  commissioner shall approve warrants to the school in the amount
   84-4  that results from the new computation.  An amount equal to the
   84-5  difference between the initial allocation and the amount of the
   84-6  warrants shall be transferred to a special account in the
   84-7  foundation school fund known as the reserve account.
   84-8        (f)  Amounts transferred to the reserve account under
   84-9  Subsection (e) shall be used in the succeeding fiscal year to
  84-10  finance increases in allocations to school districts under
  84-11  Subsection (i).  If the amount in the reserve account is less than
  84-12  the amount of the increases under Subsection (i) for the second
  84-13  year of a state fiscal biennium, the commissioner shall certify the
  84-14  amount of the difference to the foundation school fund budget
  84-15  committee not later than January 1 of the second year of the state
  84-16  fiscal biennium.  The committee shall propose to the legislature
  84-17  that the certified amount be transferred to the foundation school
  84-18  fund from the economic stabilization fund and appropriated for the
  84-19  purpose of increases in allocations under Subsection (h).
  84-20        (g)  If a school district demonstrates to the satisfaction of
  84-21  the commissioner that the estimate of the district's tax rate,
  84-22  student enrollment, or taxable value of property used in
  84-23  determining the amount of state funds to which the district is
  84-24  entitled are so inaccurate as to result in undue financial hardship
  84-25  to the district, the commissioner may adjust funding to that
  84-26  district in that school year to the extent that funds are available
  84-27  for that year, including funds in the reserve account.  Funds in
   85-1  the reserve account may not be used under this subsection until any
   85-2  reserve funds have been used for purposes of Subsection (f).
   85-3        (h)  If the legislature fails during the regular session to
   85-4  enact the transfer and appropriation proposed under Subsection (f)
   85-5  and there are not funds available under Subsection (j), the
   85-6  commissioner shall reduce the total amount of state funds allocated
   85-7  to each district by an amount determined by a method under which
   85-8  the application of the same number of cents of increase in tax rate
   85-9  in all districts applied to the taxable value of property of each
  85-10  district, as determined under Section 11.86, results in a total
  85-11  levy equal to the total reduction.  The following fiscal year, a
  85-12  district's entitlement under this section is increased by an amount
  85-13  equal to the reduction made under this subsection.
  85-14        (i)  Not later than March 1 each year, the commissioner shall
  85-15  determine the actual amount of state funds to which each school
  85-16  district is entitled under the allocation formulas in this chapter
  85-17  for the current school year and shall compare that amount with the
  85-18  amount of the warrants issued to each district for that year.  If
  85-19  the amount of the warrants differs from the amount to which a
  85-20  district is entitled because of variations in the district's tax
  85-21  rate, student enrollment,  or taxable value of property, the
  85-22  commissioner shall adjust the district's entitlement for the next
  85-23  fiscal year accordingly.
  85-24        (j)  The legislature may appropriate funds necessary for
  85-25  increases under Subsection (i) from funds that the comptroller, at
  85-26  any time during the fiscal year, finds are available.
  85-27        (k)  The commissioner shall compute for each school district
   86-1  the total amount by which the district's allocation of state funds
   86-2  is increased or reduced under Subsection (i) and shall certify that
   86-3  amount to the district.
   86-4        (l)  In this section, the number of weighted students in
   86-5  average daily attendance is calculated in the manner provided by
   86-6  Section 16.302.  <The commissioner of education shall determine
   86-7  annually:>
   86-8              <(1)  the amount of money necessary to operate a
   86-9  Foundation School Program in each school district;>
  86-10              <(2)  the amount of local funds due the school district
  86-11  from the local fund assignment of the county education district;
  86-12  and>
  86-13              <(3)  the amount of state available school funds
  86-14  distributed to each school district.>
  86-15        <(b)  The commissioner of education shall then grant to each
  86-16  school district from the Foundation School Program appropriation
  86-17  the amount of funds necessary to provide the difference between
  86-18  Subdivision (1) and the sum of Subdivisions (2) and (3) of
  86-19  Subsection (a) of this section.>
  86-20        <(c)  The commissioner shall approve warrants to each school
  86-21  district equaling the amount of its grant.  Warrants for all money
  86-22  expended according to the provisions of this chapter shall be
  86-23  approved and transmitted to treasurers or depositories of school
  86-24  districts in the same manner as warrants for state apportionment
  86-25  are transmitted.>
  86-26        <(d)  Notwithstanding any other provision of this chapter, if
  86-27  for any year the total state's share of the Foundation School
   87-1  Program, as determined under this chapter, exceeds the total amount
   87-2  appropriated for that year, the commissioner shall reduce the total
   87-3  amount of state funds allocated to each district by an amount
   87-4  determined by a method under which the application of the same
   87-5  number of cents of increase in tax rate applied to the taxable
   87-6  value of property of each district, as determined under Section
   87-7  11.86 of this code, results in a levy for each district equal to
   87-8  the amount deducted from that district's allocation.>
   87-9        <(e)  The commissioner of education shall compute for each
  87-10  school district the total amount by which the district's allocation
  87-11  of state funds is reduced under Subsection (d) of this section and
  87-12  shall certify that amount to the district.>
  87-13        Sec. 16.2541.  ESTIMATES REQUIRED.  (a)  Not later than
  87-14  October 1 of each even-numbered year:
  87-15              (1)  the Central Education Agency shall submit to the
  87-16  foundation school fund budget committee and the legislature an
  87-17  estimate of the tax rate and student enrollment of each school
  87-18  district for the following biennium; and
  87-19              (2)  the comptroller shall submit to the foundation
  87-20  school fund budget committee and the legislature an estimate of the
  87-21  total taxable value of all property in the state as determined
  87-22  under Section 11.86 for the following biennium.
  87-23        (b)  The Central Education Agency and the comptroller shall
  87-24  update the information provided to the legislature under Subsection
  87-25  (a) not later than March 1 of each odd-numbered year.
  87-26        Sec. 16.255.  Falsification of Records; Report.  (a)  When,
  87-27  in the opinion of the director of school audits of the Central
   88-1  Education Agency, audits or reviews of accounting, enrollment, or
   88-2  other records of a school district reveal deliberate falsification
   88-3  of the records, or violation of the provisions of this chapter,
   88-4  whereby the district's share of state funds allocated under the
   88-5  authority of this chapter would be, or has been, illegally
   88-6  increased, the director shall promptly and fully report the fact to
   88-7  the State Board of Education and the state auditor.
   88-8        (b)  In the event of overallocation of state funds, as
   88-9  determined by the State Board of Education or the state auditor by
  88-10  reference to the director's report, the Central Education Agency
  88-11  shall, by withholding from subsequent allocations of state funds,
  88-12  recover from the district an amount, or amounts, equal to the
  88-13  overallocation.
  88-14        Sec. 16.256.  FOUNDATION SCHOOL FUND BUDGET COMMITTEE.
  88-15  (a)  The foundation school fund budget committee is composed of the
  88-16  governor, the lieutenant governor, and the comptroller <of public
  88-17  accounts>.
  88-18        (b)  On or before December <November> 1 before each regular
  88-19  session of the legislature, the budget committee shall determine
  88-20  and certify to the comptroller <of public accounts> an amount of
  88-21  money to be placed in the foundation school fund for the succeeding
  88-22  biennium for the purpose of financing the Foundation School Program
  88-23  as described in this code.
  88-24        (c)  The budget committee may, during the biennium, change
  88-25  the estimate of money necessary to finance the Foundation School
  88-26  Program.
  88-27        (d)  The foundation school fund budget committee shall adopt
   89-1  rules for the calculation for each year of a biennium of the
   89-2  qualified funding elements necessary to achieve the state funding
   89-3  policy under Section 16.001 of this code not later than the
   89-4  1994-1995 school year and for each year thereafter.  In the
   89-5  calculation of these funding elements, the committee shall consider
   89-6  the report of the Legislative Education Board prescribed under
   89-7  Section 16.008 of this code.
   89-8        (e)  The funding elements shall include:
   89-9              (1)  a basic allotment for the purposes of Section
  89-10  16.101 of this code that represents the cost per student of a
  89-11  regular education program that meets the basic criteria for an
  89-12  accredited program including all mandates of law and regulation;
  89-13              (2)  adjustments designed to reflect the variation in
  89-14  known resource costs and costs of education beyond the control of
  89-15  school districts;
  89-16              (3)  appropriate program cost differentials and other
  89-17  funding elements for the programs authorized under Subchapter D of
  89-18  this chapter, with the program funding level expressed as dollar
  89-19  amounts and as weights applied to the adjusted basic allotment for
  89-20  the appropriate year;
  89-21              (4)  the maximum guaranteed level of qualified state
  89-22  and local funds per student for the purposes of Subchapter H of
  89-23  this chapter;
  89-24              (5)  the enrichment and facilities tax rate under
  89-25  Subchapter H of this chapter;
  89-26              (6)  the formula elements for the funding formulas for
  89-27  capital outlay and debt service under the provision of Subchapter I
   90-1  of this chapter; and
   90-2              (7)  the calculation of weighted students in average
   90-3  daily attendance under Section 16.302 of this code.
   90-4        (f)  Not <Beginning in 1992, not> later than December
   90-5  <November> 1 preceding each regular session of the legislature, the
   90-6  foundation school fund budget committee by rule shall adopt and
   90-7  report the equalized funding elements calculated under this section
   90-8  to the commissioner of education and the legislature.  Before the
   90-9  committee adopts the elements, the committee or the committee's
  90-10  designees shall hold a public hearing on the recommendations of the
  90-11  Legislative Education Board.
  90-12        <(g)  Notwithstanding other provisions of this section, the
  90-13  funding elements adopted by the foundation school fund budget
  90-14  committee for the 1993-1994 school year and the 1994-1995 school
  90-15  year shall provide for appropriate transition from the program in
  90-16  effect for the 1992-1993 school year.>
  90-17        Sec. 16.258.  Effect Of Appraisal Appeal.  (a)  If the final
  90-18  determination of an appeal under Chapter 42, Tax Code, results in a
  90-19  reduction in the taxable value of property that exceeds five
  90-20  percent of the total taxable value of property in the school
  90-21  district for the same tax year determined under Section 11.86 of
  90-22  this code, the commissioner of education shall request the
  90-23  comptroller to adjust its taxable property value findings for that
  90-24  year consistent with the final determination of the appraisal
  90-25  appeal.
  90-26        (b)  If the district would have received a greater amount
  90-27  from the foundation school fund for the applicable school year
   91-1  using the adjusted value, the commissioner shall add the difference
   91-2  to subsequent distributions to the district from the foundation
   91-3  school fund.  An adjustment does not affect the local fund
   91-4  assignment of any other district.
   91-5        Sec. 16.260.  FOUNDATION SCHOOL FUND TRANSFERS.  (a)  In this
   91-6  section:
   91-7              (1)  "Category 1 school district" means a school
   91-8  district having a wealth of less than one-half of the statewide
   91-9  average wealth.
  91-10              (2)  "Category 2 school district" means a school
  91-11  district having a wealth of at least one-half of the statewide
  91-12  average wealth per pupil but not more than the statewide average
  91-13  wealth.
  91-14              (3)  "Category 3 school district" means a school
  91-15  district having a wealth of more than the statewide average wealth.
  91-16              (4)  "Wealth" means the taxable property values
  91-17  reported by the comptroller to the commissioner of education under
  91-18  Section 16.252 of this code divided by the number of students in
  91-19  average daily attendance.
  91-20        (b)  Payments from the foundation school fund to each
  91-21  category 1 school district shall be made as follows:
  91-22              (1)  21 percent of the yearly entitlement of the
  91-23  district shall be paid in two equal installments to be made on or
  91-24  before the 25th day of September and October of a fiscal year;
  91-25              (2)  57 percent of the yearly entitlement of the
  91-26  district shall be paid in six equal installments to be made on or
  91-27  before the 25th day of November, December, January, February,
   92-1  March, and July; and
   92-2              (3)  22 percent of the yearly entitlement of the
   92-3  district shall be paid in two equal installments to be made on or
   92-4  before the 25th day of April and May.
   92-5        (c)  Payments from the foundation school fund to each
   92-6  category 2 school district shall be made as follows:
   92-7              (1)  21 percent of the yearly entitlement of the
   92-8  district shall be paid in two equal installments to be made on or
   92-9  before the 25th day of September and October of a fiscal year;
  92-10              (2)  38 percent of the yearly entitlement of the
  92-11  district shall be paid in four equal installments to be made on or
  92-12  before the 25th day of November, December, March, and July;
  92-13              (3)  seven percent of the yearly entitlement of the
  92-14  <school> district shall be paid in two equal installments to be
  92-15  made on or before the 25th day of January and February;
  92-16              (4)  22 percent of the yearly entitlement of the
  92-17  <school> district shall be paid in two equal installments to be
  92-18  made on or before the 25th day of April and May; and
  92-19              (5)  12 percent of the yearly entitlement of the
  92-20  <school> district shall be paid in two equal installments to be
  92-21  made on or before the 25th day of June and August.
  92-22        (d)  Payments from the foundation school fund to each
  92-23  category 3 school district shall be made as follows:
  92-24              (1)  21 percent of the yearly entitlement of the
  92-25  district <school> shall be paid in two equal installments to be
  92-26  made on or before the 25th day of September and October of a fiscal
  92-27  year;
   93-1              (2)  57 percent of the yearly entitlement of the
   93-2  district <school> shall be paid in six equal installments to be
   93-3  made on or before the 25th day of November, December, March, June,
   93-4  July, and August; and
   93-5              (3)  22 percent of the yearly entitlement of the
   93-6  <school> district shall be paid in two equal installments to be
   93-7  made on or before the 25th day of April and May.
   93-8        (e)  The amount of any installment required by this section
   93-9  may be modified to provide a school district with the proper amount
  93-10  to which the district may be entitled by law and to correct errors
  93-11  in the allocation or distribution of funds.  If an installment
  93-12  under this section is required to be equal to other installments,
  93-13  the amount of other installments may be adjusted to provide for
  93-14  that equality.  A payment under this section is not invalid because
  93-15  it is not equal to other installments.
  93-16          SUBCHAPTER H.  GUARANTEED YIELD PROGRAM (TIER TWO)
  93-17        Sec. 16.301.  PURPOSE.  The purpose of the guaranteed yield
  93-18  component of the Foundation School Program is to provide each
  93-19  school district with the opportunity to supplement the basic
  93-20  program at a level of its own choice and with access to additional
  93-21  funds for facilities.  An allotment under this subchapter may be
  93-22  used for any legal purpose, including capital outlay and debt
  93-23  service.
  93-24        Sec. 16.302.  ALLOTMENT.  <(a)>  Each school district is
  93-25  guaranteed a specified amount per weighted student in state and
  93-26  local funds for each cent of tax effort over that required for the
  93-27  district's local fund assignment <of the county education district
   94-1  in which the school district is located> up to the maximum level
   94-2  specified in this subchapter.  The amount of state support, subject
   94-3  only to the maximum amount under Section 16.303 of this code, is
   94-4  determined by the formula:
   94-5  where:
   94-6        "GYA" is the guaranteed yield amount of state funds to be
   94-7  allocated to the district;
   94-8        "GL" is the dollar amount guaranteed level of state and local
   94-9  funds per weighted student per cent of tax effort, which is $20.55
  94-10  <$21.50 for the 1991-1992 school year, $22.50 for the 1992-1993
  94-11  school year, $26 for the 1993-1994 school year, and $28 for each
  94-12  school year thereafter,> or a greater amount for any year provided
  94-13  by appropriation, or a greater amount adopted by the foundation
  94-14  school fund budget committee under Section 16.256(d) <of this code
  94-15  for the 1993-1994 or 1994-1995 school year or thereafter>;
  94-16        "WADA", except as provided by Section 16.206 of this code, is
  94-17  the number of weighted students in average daily attendance, which
  94-18  is calculated by dividing the sum of the school district's
  94-19  allotments under Subchapters C and D of this chapter, less any
  94-20  allotments to the district for transportation, teacher compensation
  94-21  <career ladder supplements>, or technology and 50 percent of the
  94-22  adjustment under Section 16.102 of this code, by the basic
  94-23  allotment for the applicable year;
  94-24        "DTR" is the district enrichment and facilities tax rate of
  94-25  the school district, which is determined by subtracting the
  94-26  district's local fund assignment from <dividing> the total amount
  94-27  of taxes collected by the school district for the applicable school
   95-1  year and dividing the difference by the quotient of the district's
   95-2  taxable value of property as determined under Section 11.86 of this
   95-3  code divided by 100; and
   95-4        "LR" is the local revenue, which is determined by multiplying
   95-5  "DTR" by the quotient of the district's taxable value of property
   95-6  as determined under Section 11.86 of this code divided by 100.
   95-7        <(b)  Beginning with the 1993-1994 school year, if the
   95-8  program cost differentials developed jointly by the Legislative
   95-9  Education Board and the Legislative Budget Board under Section
  95-10  16.203 of this code and the adjustments studied under Section
  95-11  16.206 of this code are not adopted by the foundation school fund
  95-12  budget committee or the commissioner of education, the amount
  95-13  guaranteed under this section is an amount per student rather than
  95-14  per weighted student and a school district's average daily
  95-15  attendance ("ADA") under Section 16.006 of this code is substituted
  95-16  for "WADA" in the formula under Subsection (a) of this section.>
  95-17        Sec. 16.303.  LIMITATION ON ENRICHMENT AND FACILITIES TAX
  95-18  RATE.  The district enrichment and facilities tax rate ("DTR")
  95-19  under Section 16.302 of this code may not exceed $0.64 per $100 of
  95-20  valuation, <$0.45> or a greater amount <for 1993-1994 and 1994-1995
  95-21  school years or thereafter as> adopted by the foundation school
  95-22  fund budget committee under Section 16.256(d) of this code.
  95-23        Sec. 16.304.  COMPUTATION OF AID FOR DISTRICT ON MILITARY
  95-24  RESERVATION OR AT STATE SCHOOL.  State assistance under this
  95-25  subchapter for a school district located on a federal military
  95-26  installation or at Moody State School is computed using the average
  95-27  tax rate and property value per student of school districts in the
   96-1  county, as determined by the commissioner of education.
   96-2            SUBCHAPTER I.  CAPITAL OUTLAY AND DEBT SERVICE
   96-3        Sec. 16.401.  Inventory of School Facilities.  (a)  The State
   96-4  Board of Education shall establish a statewide inventory of school
   96-5  facilities and shall update the inventory on a periodic basis.
   96-6        (b)  The inventory shall include information on the
   96-7  condition, use, type, and replacement cost of public school
   96-8  facilities in this state.
   96-9        Sec. 16.402.  Standards.  The State Board of Education shall
  96-10  establish standards for adequacy of school facilities.  The
  96-11  standards shall include requirements related to space, educational
  96-12  adequacy, and construction quality.  All facilities constructed
  96-13  after September 1, 1992, must meet the standards in order to be
  96-14  financed with state or local tax funds.
  96-15        Sec. 16.403.  Advisory Committee.  The State Board of
  96-16  Education shall appoint a committee composed of 15 persons
  96-17  knowledgeable of various aspects of school facility planning,
  96-18  construction, renovation, and financing.  The advisory committee
  96-19  shall provide the board and the commissioner with assistance on the
  96-20  development of the inventory system, the creation of facility
  96-21  standards, and the conduct of facility research related to current
  96-22  and future roles of the state in the provision of financial and
  96-23  technical assistance to school districts.  The members of the
  96-24  committee shall serve without compensation but may be reimbursed
  96-25  for actual and necessary expenses.
  96-26        <SUBCHAPTER J.  COUNTY EDUCATION DISTRICT DISTRIBUTIONS>
  96-27        <Sec. 16.501.  TIER ONE.  (a)  The commissioner of education
   97-1  shall notify each county education district of the total amount of
   97-2  funds that each school district in the county education district is
   97-3  entitled to receive under tier one of the Foundation School
   97-4  Program.>
   97-5        <(b)  For tier one, the board of trustees of each county
   97-6  education district shall distribute the funds collected from the
   97-7  tax levied by the county education district under Section 20.945 of
   97-8  this code to the school districts in the county on the basis of the
   97-9  component districts' share of the taxable value of property of the
  97-10  county education district with the provision that no component
  97-11  district shall receive funds in excess of the cost of tier one less
  97-12  the distribution of the available school fund.>
  97-13        <(c)(1)  Notwithstanding Subsection (b) of this section, for
  97-14  the 1991-1992, 1992-1993, and 1993-1994 school years, for tier one
  97-15  the board of trustees of each county education district shall
  97-16  distribute the funds collected from the tax levied by the county
  97-17  education district under Section 20.945 of this code to the school
  97-18  districts in the county education district as follows:>
  97-19                    <(A)  to those school districts that did not
  97-20  receive foundation school funds for the 1990-1991 school year in
  97-21  which the amount of revenue per weighted student from local funds
  97-22  and the available school fund for the 1990-1991 school year exceeds
  97-23  the total amount of revenue per weighted student to which the
  97-24  district is entitled under the Foundation School Program at a tax
  97-25  rate equal to the maximum tax rate authorized under Section 20.09
  97-26  of this code, the county education district shall distribute an
  97-27  amount equal to the difference between the amount of revenue per
   98-1  weighted student in the district in the 1990-1991 school year from
   98-2  local funds and the available school fund and the levy that results
   98-3  from the application of the maximum rate authorized under Section
   98-4  20.09 of this code to the district's taxable value of property; and>
   98-5                    <(B)  the county education district shall
   98-6  apportion the remaining funds collected from the tax levy to each
   98-7  school district in the county education district on the basis of
   98-8  the component districts' share of the taxable value of property of
   98-9  the county education district with the provision that no component
  98-10  district shall receive funds in excess of the cost of tier one less
  98-11  the distribution of the available school fund.>
  98-12              <(2)  This subsection expires September 1, 1994.>
  98-13        <(d)  If the total amount available for distribution by the
  98-14  county education district exceeds the county education district's
  98-15  local share under Section 16.252 of this code, the county education
  98-16  district shall retain the excess amount for distribution in
  98-17  succeeding years.>
  98-18        <(e)  If the total amount available for distribution by the
  98-19  county education district is less than the county education
  98-20  district's local share under Section 16.252 of this code, the
  98-21  distributions shall be made under rules adopted by the commissioner
  98-22  of education.>
  98-23        <Sec. 16.502.  COLLECTION AND DISTRIBUTION SCHEDULES.  The
  98-24  commissioner of education shall establish a schedule for the
  98-25  distribution of funds to each school district under this
  98-26  subchapter.>
  98-27        <Sec. 16.503.  DEFINITION.  In this subchapter, "taxable
   99-1  value of property" is the value determined under Section 11.86 of
   99-2  this code.>
   99-3        SECTION 2.02.  Subsections (b) and (e), Section 14.063,
   99-4  Education Code, are amended to read as follows:
   99-5        (b)  Each school district is entitled to an annual allotment
   99-6  for the purposes provided under Section 14.064 of this code equal
   99-7  to its unadjusted average daily attendance multiplied by<:>
   99-8              <(1)>  $30 <for the 1992-1993 school year, or a greater
   99-9  amount provided by appropriation;>
  99-10              <(2)  $35 for the 1993-1994 school year, or a greater
  99-11  amount provided by appropriation;>
  99-12              <(3)  $40 for the 1994-1995 school year, or a greater
  99-13  amount provided by appropriation;>
  99-14              <(4)  $45 for the 1995-1996 school year, or a greater
  99-15  amount provided by appropriation; and>
  99-16              <(5)  $50 for the 1996-1997 school year and for each
  99-17  school year thereafter>, or a greater amount provided by
  99-18  appropriation.
  99-19        (e)  If an insufficient amount is available in the fund for
  99-20  the state's share of the allotments under Subsection (b) of this
  99-21  section, the agency shall reduce each district's allotment in the
  99-22  same manner described for a reduction in allotments <by application
  99-23  of the formula adopted> under Section 16.254 <16.254(d)> of this
  99-24  code.
  99-25        SECTION 2.03.  Subsections (a) and (b), Section 20.09,
  99-26  Education Code, are amended to read as follows:
  99-27        (a)  Except as provided by Subsections (c) and (d) and unless
  100-1  specifically approved in an election called for that purpose <of
  100-2  this section>, a school district may not impose a total tax rate on
  100-3  the $100 valuation of taxable property that <results in a levy
  100-4  that> exceeds $1.50.  <the levy that results from applying the
  100-5  following rate to the district's taxable value of property as
  100-6  determined under Section 11.86 of this code:>
  100-7              <(1)  $0.78 for the 1991 tax year;>
  100-8              <(2)  $0.68 for the 1992 tax year;>
  100-9              <(3)  $0.58 for the 1993 tax year; and>
 100-10              <(4)  $0.50 for each subsequent tax year.>
 100-11        (b)  A district may impose taxes under this chapter on the
 100-12  residence homestead of a person whose taxes for general elementary
 100-13  and secondary public school purposes are limited under Article
 100-14  VIII, Section 1-b(d), of the Texas Constitution, only to the extent
 100-15  that the imposition<, when added to the taxes imposed on the
 100-16  homestead by the county education district,> does not increase the
 100-17  person's tax liability for those purposes in violation of the
 100-18  constitutional limit.
 100-19        SECTION 2.04.  Section 26.08,  Tax Code, is amended to read
 100-20  as follows:
 100-21        Sec. 26.08.  Election to Limit School Taxes.  (a)  If the
 100-22  governing body of a school district adopts a rate that exceeds the
 100-23  school district rollback tax rate <sum of the district's effective
 100-24  maintenance rate, the rate of $0.08, and the district's current
 100-25  debt rate>, the qualified voters of the district at <by petition
 100-26  may require that> an election <be> held for that purpose must <to>
 100-27  determine whether or not to limit the tax rate the governing body
  101-1  may adopt for the current <following> year to the school district
  101-2  rollback tax rate.  When increased expenditure of funds by a school
  101-3  district is necessary to respond to a disaster, such as a tornado,
  101-4  hurricane, flood, or other calamity (not including a drought) which
  101-5  has impacted a school district and the governor has requested
  101-6  federal disaster assistance for the area in which the school
  101-7  district is located, an election <a petition> is not required
  101-8  <valid> under this section to repeal a tax increase adopted the
  101-9  next time the district adopts a tax rate after the date the
 101-10  disaster occurs.
 101-11        (b)  The <A petition is valid only if:>
 101-12              <(1)  it states that it is intended to require an
 101-13  election in the school district on the question of limiting the tax
 101-14  rate for the following year;>
 101-15              <(2)  it is signed by a number of qualified voters of
 101-16  the school district equal to at least 10 percent of the number of
 101-17  qualified voters of the district according to the most recent
 101-18  official list of qualified voters not counting the signatures of
 101-19  voters gathered by a person who received compensation for
 101-20  circulating the petition; and>
 101-21              <(3)  it is submitted to the governing body on or
 101-22  before the 90th day after the date on which the governing body
 101-23  adopted the tax rate for the current year.>
 101-24        <(c)  Not later than the 20th day after the day a petition is
 101-25  submitted, the governing body shall determine whether or not the
 101-26  petition is valid and pass a resolution stating its finding.  If
 101-27  the governing body fails to act within the time allowed, the
  102-1  petition is treated as if it had been found valid.>
  102-2        <(d)  If the> governing body <finds that the petition is
  102-3  valid (or fails to act within the time allowed), it> shall order
  102-4  that the <an> election be held in the school district on a date not
  102-5  less than 30 or more than 90 days after the <last> day on which it
  102-6  adopted the tax rate <could have acted to approve or disapprove the
  102-7  petition>.  A state law requiring local elections to be held on a
  102-8  specified date does not apply to the election unless a specified
  102-9  date falls within the time permitted by this section.  At the
 102-10  election, the ballots shall be prepared to permit voting for or
 102-11  against the proposition:  "Reducing <Limiting> the ad valorem tax
 102-12  rate in (name of school district) for the current year from (the
 102-13  rate adopted) to (the school district rollback tax rate) <(the
 102-14  following year)>."
 102-15        (c) <(e)>  If a majority of the qualified voters voting on
 102-16  the question in the election favor the proposition, the <governing
 102-17  body may not adopt a> tax rate for the school district for <in> the
 102-18  current <following> year is <that exceeds> the school district
 102-19  rollback tax rate calculated for that year; otherwise the tax rate
 102-20  for the current year is the one adopted by the governing body
 102-21  <using the following formula:>
 102-22     RATE FOR ELECTION YEAR) + $0.08 (X 1.08)) + CURRENT DEBT RATEää
 102-23  <where "election year" denotes amounts used in calculating the
 102-24  rollback tax rate in the year in which the tax increase that
 102-25  initiated the referendum occurred rather than the year in which the
 102-26  calculation occurs>.
 102-27        (d)  For purposes of this section, except as provided by
  103-1  Subsection (e), the school district rollback tax rate of a school
  103-2  district is the sum of:
  103-3              (1)  the tax rate that, applied to the current total
  103-4  value for the district, would impose taxes in an amount that, when
  103-5  added to state funds to be distributed to the district under
  103-6  Chapters 15 and 16, Education Code, for the school year beginning
  103-7  in the current tax year, would provide the same amount of state
  103-8  funds and local maintenance and operations taxes per student in
  103-9  weighted average daily attendance for that school year that was
 103-10  available to the district in the preceding year;
 103-11              (2)  the rate of $0.06; and
 103-12              (3)  the district's current debt rate.
 103-13        (e)  In the first year in which a school district that is the
 103-14  product of the consolidation of two or more whole school districts
 103-15  adopts a tax, the school district rollback tax rate for the
 103-16  consolidated district is the sum of:
 103-17              (1)  the tax rate that, applied to the current total
 103-18  value for the district, would impose taxes in an amount that, when
 103-19  added to state funds to be distributed to the district under
 103-20  Chapters 15 and 16, Education Code, for the school year beginning
 103-21  in the current tax year, would provide the same amount of state
 103-22  funds and local maintenance and operations taxes per student in
 103-23  weighted average daily attendance for that school year that was
 103-24  available to the component district in the preceding year for which
 103-25  that amount was greater than for any other component district;
 103-26              (2)  the rate of $0.06; and
 103-27              (3)  the consolidated district's current debt rate.
  104-1        (f)  For purposes of Subsections (d) and (e), the amount of
  104-2  state funds and local maintenance and operations taxes that was
  104-3  available to a school district in the preceding year is the amount
  104-4  of state funds distributed to the school district under Chapters 15
  104-5  and 16, Education Code, for the preceding school year and the total
  104-6  amount of local maintenance and operations taxes imposed by the
  104-7  district in the preceding tax year.
  104-8        (g)  In this section, "weighted students in average daily
  104-9  attendance" has the meaning assigned by Section 16.302, Education
 104-10  Code.
 104-11        (h) <(f)>  For purposes of this section, local tax funds
 104-12  dedicated to a junior college district under Section 20.48(e),
 104-13  <Texas> Education Code, shall be eliminated from the calculation of
 104-14  the tax rate adopted by the governing body of the school district.
 104-15  However, the funds dedicated to the junior college district are
 104-16  subject to Section 26.085 of this code.
 104-17        (i)  In calculating the school district rollback tax rate for
 104-18  a school district for the 1993 tax year, county education district
 104-19  taxes received by the school district for the 1992-1993 school year
 104-20  are treated as state funds distributed to the district under
 104-21  Chapter 16, Education Code, for that school year.  This subsection
 104-22  expires January 1, 1995.
 104-23        <(g)  If a school district is certified by the commissioner
 104-24  of education under Section 16.251(c), Education Code, to have been
 104-25  subject to a reduction in total revenue for the school year ending
 104-26  on August 31 of the tax year:>
 104-27              <(1)  the district's effective maintenance and
  105-1  operations rate for the tax year is calculated as provided by
  105-2  Section 26.012, except that last year's levy is reduced by the
  105-3  amount of taxes imposed in the preceding year, if any, to offset
  105-4  the amount of any reduction certified by the commissioner of
  105-5  education under Section 16.251(c), Education Code, for the school
  105-6  year ending on August 31 of the preceding year; and>
  105-7              <(2)  the district's rollback tax rate for the tax year
  105-8  calculated as provided by Section 26.04 or by Subsection (e) of
  105-9  this section, as applicable, is increased by the tax rate that, if
 105-10  applied to the current total value for the school district, would
 105-11  impose taxes in an amount equal to the amount of the reduction
 105-12  certified by the commissioner of education under Section 16.251(c),
 105-13  Education Code, for the school year ending on August 31 of the tax
 105-14  year.>
 105-15        <(i)  If a school district is certified by the commissioner
 105-16  of education under Section 16.254(e), Education Code, to have been
 105-17  subject to a reduction in state funds for the school year ending on
 105-18  August 31 of the tax year:>
 105-19              <(1)  the district's effective maintenance and
 105-20  operations rate for the tax year is calculated as provided by
 105-21  Section 26.012, except that last year's levy is reduced by the
 105-22  amount of taxes imposed in the preceding year, if any, to offset
 105-23  the amount of any reduction in state funds certified by the
 105-24  commissioner of education under Section 16.254, Education Code, for
 105-25  the school year ending on August 31 of the preceding year; and>
 105-26              <(2)  the district's rollback tax rate for the tax year
 105-27  calculated as provided by Section 26.04 or by Subsection (e) of
  106-1  this section, as applicable, is increased by the tax rate that, if
  106-2  applied to the current total value for the school district, would
  106-3  impose taxes in an amount equal to the amount of the reduction in
  106-4  state funds certified by the commissioner of education under
  106-5  Section 16.254, Education Code, for the school year ending on
  106-6  August 31 of the tax year.>
  106-7        <(j)  In a school district that received distributions from
  106-8  an equalization tax imposed under Chapter 18, Education Code, the
  106-9  effective rate of that tax as of the date of the county-unit
 106-10  system's abolition is added to the district's effective maintenance
 106-11  and operations rate under Subsections (a) and (e) of this section
 106-12  in the calculation of the district's rollback tax rate.>
 106-13        SECTION 2.05.  It is the intent of the 73rd Legislature that,
 106-14  in case of a conflict, the funding provisions for an optional
 106-15  extended year program as provided by Section 21.562, Education
 106-16  Code, as added by this Act, control over any other funding
 106-17  provisions for the program enacted by the 73rd Legislature during
 106-18  its regular session.
 106-19        SECTION 2.06.  (a)  Notwithstanding the requirement in
 106-20  Section 16.254, Education Code, as amended by this Act, requiring
 106-21  determinations under that section to be based on estimates provided
 106-22  under Section 16.2541, Education Code, as added by this Act, or on
 106-23  different estimates provided by the General Appropriations Act, for
 106-24  the biennium ending August 31, 1995, determinations required under
 106-25  Section 16.254 shall be based on estimates provided by the
 106-26  Legislative Budget Board model run, number 401, as adjusted to
 106-27  reflect options exercised by school districts under Chapter 36,
  107-1  Education Code, as added by this Act.
  107-2        (b)  Changes in funding to school districts for special
  107-3  education under Sections 16.151(a) and (b), Education Code, and
  107-4  under Section 16.101, Education Code, to the extent of its
  107-5  reference to the mainstream instructional arrangement, as those
  107-6  sections are amended by this Act, apply beginning with the
  107-7  1994-1995 school year.  For the 1993-1994 school year, the weights
  107-8  provided by Sections 16.151(a) and (b), Education Code, as those
  107-9  sections existed before amendment by this Act, apply to funding to
 107-10  school districts for special education and those sections are
 107-11  continued in effect for that purpose.
 107-12        (c)  Any other changes in the funding of public schools made
 107-13  by this Act apply beginning with the 1993-1994 school year.
 107-14        SECTION 2.07.  To the extent that reenactment of Chapter 16,
 107-15  Education Code, by this article conflicts with another enactment of
 107-16  the 73rd Legislature, Regular Session, 1993, amending a provision
 107-17  of that chapter, the other enactment prevails without regard to the
 107-18  relative dates of enactment.
 107-19        SECTION 2.08.  This article takes effect immediately.
 107-20                               ARTICLE 3
 107-21        SECTION 3.01.  Subsection (c), Section 21.032, Education
 107-22  Code, is amended to read as follows:
 107-23        (c)  Unless specifically exempted by Section 21.033 of this
 107-24  code, a student enrolled in a public school district must attend an
 107-25  extended year program provided by a school district for which the
 107-26  student is eligible or  tutorial classes required by the district
 107-27  under Section 21.103(b) of this code.  A district shall provide
  108-1  transportation services to students required to attend an extended
  108-2  year program provided by a school district in the same manner as
  108-3  during the regular school year.  A school district is not required
  108-4  to provide transportation services to accommodate <such> students
  108-5  required to attend tutorial classes under Section 21.103(b).
  108-6        SECTION 3.02.  Section 21.502, Education Code, is amended to
  108-7  read as follows:
  108-8        Sec. 21.502.  Definitions.  As used in this subchapter,
  108-9  "special services" means:
 108-10              (1)  "special teaching," which may be provided by
 108-11  professional and paraprofessional personnel in the following
 108-12  instructional settings:
 108-13                    (A)  resource room;
 108-14                    (B)  self-contained classroom, regular or special
 108-15  campus;
 108-16                    (C)  hospital or community class;
 108-17                    (D)  homebound or bedside;
 108-18                    (E)  speech or hearing therapy class; or
 108-19                    (F)  mainstream; or
 108-20              (2)  "related services," which are developmental,
 108-21  corrective, supportive, or evaluative services, not instructional
 108-22  in nature, that may be required for the proper development and
 108-23  implementation of a handicapped student's individualized
 108-24  educational plan, including but not limited to special
 108-25  transportation, school health services, counseling with students or
 108-26  families, psychological services, audiological services, visual
 108-27  training, medical or psychiatric diagnostic services, occupational
  109-1  therapy, physical therapy, recreational therapy, social work
  109-2  services, parent counseling and training, adaptive equipment,
  109-3  special seating, orientation and mobility training, speech therapy,
  109-4  music therapy, and corrective therapy.
  109-5        SECTION 3.03.  Subsection (b), Section 21.506, Education
  109-6  Code, is amended to read as follows:
  109-7        (b)  Except as provided by Subsection (c) of this section,
  109-8  contracts for residential placements when approved may be paid for
  109-9  from a combination of federal, state, and local funds.  The local
 109-10  share of the total contract cost per pupil is that portion of the
 109-11  local tax effort (total dollars generated by debt service and
 109-12  maintenance taxes) which exceeds the district's local fund
 109-13  assignment under Section 16.252, divided by the average daily
 109-14  attendance in the district.  If the contract involves a private
 109-15  facility, the state share of the total contract cost is that which
 109-16  remains after subtracting the local share.  If the contract
 109-17  involves a public facility other than a program or facility
 109-18  administered by the Central Education Agency, the state share is
 109-19  that which remains after subtracting the local share from that
 109-20  portion of the contract which involves the costs of instructional
 109-21  and related services.  If the contract involves a program or
 109-22  facility administered by the Central Education Agency, there is no
 109-23  state share paid from this program.
 109-24        SECTION 3.04.  Subchapter O, Chapter 21, Education Code, is
 109-25  amended by adding Sections 21.562 and 21.563 to read as follows:
 109-26        Sec. 21.562.  STATE-FUNDED OPTIONAL EXTENDED YEAR PROGRAM.
 109-27  (a)  A school district may apply to the commissioner of education
  110-1  for funding and approval of an extended year program for a period
  110-2  not to exceed 30 days for students in kindergarten through grade
  110-3  level eight who are identified as likely not to be promoted to the
  110-4  next grade level for the succeeding school year.
  110-5        (b)  The commissioner may adopt rules for the administration
  110-6  of programs provided under this section.
  110-7        (c)  A school district may not enroll more than 12 students
  110-8  in a class provided under this section.
  110-9        (d)  Each class provided under this section shall be taught
 110-10  by a teacher who has completed successfully a program that provides
 110-11  training to teach a class under this section and that satisfies
 110-12  standards the commissioner establishes.
 110-13        (e)  A student who attends at least 85 percent of the program
 110-14  days of a program under this section shall be promoted to the next
 110-15  grade level at the beginning of the next school year unless a
 110-16  parent of the student presents a written request to the school
 110-17  principal that the student not be promoted to the next grade level.
 110-18  As soon as practicable after receiving the request from a parent,
 110-19  the principal shall hold a formal meeting with the student's
 110-20  parent, extended year program teacher, and counselor.  During the
 110-21  meeting, the principal, teacher, or counselor shall explain the
 110-22  longitudinal statistics on the academic performance of students who
 110-23  are not promoted to the next grade level and provide information on
 110-24  the effect of retention on a student's self-esteem and on the
 110-25  likelihood of a student dropping out of school.  After the meeting,
 110-26  the parent may withdraw the request that the student not be
 110-27  promoted to the next grade level.  If the parent of a student
  111-1  eligible for promotion under this subsection withdraws the request,
  111-2  the student shall be promoted.  If a student is promoted under this
  111-3  subsection, the school district shall continue to use innovative
  111-4  practices to ensure that the student is successful in school in
  111-5  succeeding years.
  111-6        (f)  A school district that provides a program under this
  111-7  section shall adopt a policy designed to lead to immediate
  111-8  reduction and ultimate elimination of student retention.
  111-9        (g)  A school district may apply for approval under this
 111-10  section only for a pilot program for students in grade level one
 111-11  for the 1993-1994 school year and only for a pilot program for
 111-12  students in grade levels one and two for the 1994-1995 school year.
 111-13  The state's share of a pilot program under this section may not
 111-14  exceed the amount appropriated for program purposes.  Funds
 111-15  provided to a pilot program may be used for transportation of
 111-16  eligible students.  This subsection expires September 1, 1995.
 111-17        Sec. 21.563.  OPTIONAL EXTENDED YEAR PROGRAM.  (a)  A school
 111-18  district may apply to the commissioner of education for approval to
 111-19  provide an extended year program for a period not to exceed 45 days
 111-20  for students in kindergarten through grade level eight who would
 111-21  otherwise not be promoted.
 111-22        (b)  In order to provide the funding necessary for a program
 111-23  approved under this section, with the approval of the commissioner,
 111-24  a school district may provide a number of days of instruction for
 111-25  students during the regular school term that is up to five days
 111-26  less than the number otherwise required under Section 16.052(a).  A
 111-27  school district providing a program under this section is not
  112-1  entitled to funding appropriated for purposes of providing programs
  112-2  under Section 21.562.
  112-3        (c)  The commissioner may adopt rules for the administration
  112-4  of programs provided under this section.
  112-5        SECTION 3.05.  Subchapter Z, Chapter 21, Education Code, is
  112-6  amended by adding Section 21.939 to read as follows:
  112-7        Sec. 21.939.  LEGISLATIVE LOBBYIST OR LIAISON; PROHIBITION.
  112-8  (a)  A school district may not employ a person who is required to
  112-9  register under Chapter 305, Government Code, by virtue of the
 112-10  person's activities on behalf of the school district.
 112-11        (b)  A school district may not employ a person whose primary
 112-12  duties are activities related to proposed legislation or
 112-13  administrative action, including supplying information to members
 112-14  of the legislative or executive branch, obtaining information from
 112-15  members of the legislative or executive branch, monitoring the
 112-16  progress of proposed legislation or administrative action, or
 112-17  acting as an advocate or proponent of proposed legislation or
 112-18  administrative action.
 112-19        (c)  A school district that employs a person in violation of
 112-20  this section is liable to this state for a civil penalty in an
 112-21  amount equal to three times the total compensation the district has
 112-22  paid to that person.  The attorney general may sue to collect the
 112-23  penalty.
 112-24        (d)  If a civil penalty is imposed against a school district
 112-25  under this section, the commissioner of education shall reduce the
 112-26  amount allocated to the district from the foundation school fund in
 112-27  an amount equal to the compensation paid by the district to the
  113-1  person employed in violation of this section.
  113-2        SECTION 3.06.  This article takes effect immediately and
  113-3  applies beginning with the 1993-1994 school year.
  113-4                               ARTICLE 4
  113-5        SECTION 4.01.  Subsection (a), Section 11.86, Education Code,
  113-6  is amended to read as follows:
  113-7        (a)  The comptroller shall conduct an annual study using
  113-8  comparable sales and generally accepted auditing and sampling
  113-9  techniques to determine the total value of all taxable property in
 113-10  each <county education> school district <and each of its component
 113-11  school districts>.  The study shall determine the taxable value of
 113-12  all property and of each category of property within the district
 113-13  and the productivity value of all land that qualifies for appraisal
 113-14  on the basis of its productive capacity and for which the owner has
 113-15  applied for and received a productivity appraisal.  The comptroller
 113-16  shall make appropriate adjustments in the study to account for
 113-17  actions taken under Chapter 36.  In conducting the study, the
 113-18  comptroller shall review the appraisal standards, procedures, and
 113-19  methodology used by each appraisal district to determine the
 113-20  taxable value of property in each school district.  The review must
 113-21  test the validity of the taxable values assigned to each category
 113-22  of property by the appraisal district:
 113-23              (1)  using, if appropriate, samples selected through
 113-24  generally accepted sampling techniques; and
 113-25              (2)  according to generally accepted standard
 113-26  valuation, statistical compilation, and analysis techniques.  If
 113-27  the comptroller finds in the annual study that generally accepted
  114-1  appraisal standards and practices were used by the appraisal
  114-2  district in valuing a particular category of property, and that the
  114-3  taxable values assigned to each category of property by the
  114-4  appraisal district are valid, the appraisal roll value of that
  114-5  category of property is presumed to represent taxable value.  In
  114-6  the absence of such a presumption, the comptroller shall estimate
  114-7  the taxable value of that category of property using generally
  114-8  accepted standard valuation, statistical compilation, and analysis
  114-9  techniques.  For the purposes of this section, "taxable value"
 114-10  means market value less:
 114-11              (1)  the total dollar amount of any exemptions of part
 114-12  but not all of the value of taxable property required by the
 114-13  constitution or a statute that a district lawfully granted in the
 114-14  year that is the subject of the study;
 114-15              (2)  the total dollar amount of any abatements
 114-16  <exemptions> granted before May 31, 1993, within a reinvestment
 114-17  zone under agreements authorized by the Property Redevelopment and
 114-18  Tax Abatement Act (Chapter 312, Tax Code);
 114-19              (3)  the total dollar amount of any captured appraised
 114-20  value of property that is located in a reinvestment zone and that
 114-21  is eligible for tax increment financing under the Tax Increment
 114-22  Financing Act (Chapter 311, Tax Code);
 114-23              (4)  the total dollar amount of any exemptions granted
 114-24  under Section 11.251, Tax Code;
 114-25              (5)  the difference between the market value and the
 114-26  productivity value of land that qualifies for appraisal on the
 114-27  basis of its productive capacity, except that the productivity
  115-1  value may not exceed the fair market value of the land;
  115-2              (6)  the portion of the appraised value of residence
  115-3  homesteads of the elderly on which school district taxes are not
  115-4  imposed in the year that is the subject of the study, calculated as
  115-5  if the residence homesteads were appraised at the full value
  115-6  required by law;
  115-7              (7)  a portion of the market value of property not
  115-8  otherwise fully taxable by the district at market value because of
  115-9  action required by statute or the Texas Constitution that, if the
 115-10  tax rate adopted by the district is applied to it, produces an
 115-11  amount equal to the difference between the tax that the district
 115-12  would have imposed on the property if the property were fully
 115-13  taxable at market value and the tax that the district is actually
 115-14  authorized to impose on the property; and
 115-15              (8)  the market value of all tangible personal
 115-16  property, other than manufactured homes, owned by a family or
 115-17  individual and not held or used for the production of income.
 115-18        SECTION 4.02.  Subchapter B, Chapter 23, Education Code, is
 115-19  amended by adding Section 23.34 to read as follows:
 115-20        Sec. 23.34.  CONTRACTS FOR EDUCATIONAL SERVICES.  The board
 115-21  of trustees of an independent school district may contract with a
 115-22  public or private entity for that entity to provide educational
 115-23  services for the district.
 115-24        SECTION 4.03.  Subsection (f), Section 317.005, Government
 115-25  Code, is amended to read as follows:
 115-26        (f)  The governor or board may adopt an order under this
 115-27  section withholding or transferring any portion of the total amount
  116-1  appropriated to finance the foundation school program for a fiscal
  116-2  year.  The governor or board may not adopt such an order if it
  116-3  would result in an allocation of money between particular programs
  116-4  or statutory allotments under the foundation school program
  116-5  contrary to the statutory proration formula provided by Section
  116-6  16.254(h) <16.254(d)>, Education Code.  The governor or board may
  116-7  transfer an amount to the total amount appropriated to finance the
  116-8  foundation school program for a fiscal year and may increase the
  116-9  basic allotment.  The governor or board may adjust allocations of
 116-10  amounts between particular programs or statutory allotments under
 116-11  the foundation school program only for the purpose of conforming
 116-12  the allocations to actual pupil enrollments or attendance.
 116-13        SECTION 4.04.  Subdivision (12), Section 1.04, Tax Code, is
 116-14  amended to read as follows:
 116-15              (12)  "Taxing unit" means a county, an incorporated
 116-16  city or town (including a home-rule city), a school district, <a
 116-17  county education district,> a special district or authority
 116-18  (including a junior college district, a hospital district, a
 116-19  district created by or pursuant to the Water Code, a mosquito
 116-20  control district, a fire prevention district, or a noxious weed
 116-21  control district), or any other political unit of this state,
 116-22  whether created by or pursuant to the constitution or a local,
 116-23  special, or general law, that is authorized to impose and is
 116-24  imposing ad valorem taxes on property even if the governing body of
 116-25  another political unit determines the tax rate for the unit or
 116-26  otherwise governs its affairs.
 116-27        SECTION 4.05.  Section 6.02, Tax Code, is amended by amending
  117-1  Subsections (b) and (f) and adding Subsection (g) to read as
  117-2  follows:
  117-3        (b)  A taxing unit <other than a county education district>
  117-4  that has boundaries extending into two or more counties may choose
  117-5  to participate in only one of the appraisal districts.  In that
  117-6  event, the boundaries of the district chosen extend outside the
  117-7  county to the extent of the unit's boundaries.  To be effective,
  117-8  the choice must be approved by resolution of the board of directors
  117-9  of the district chosen.  The choice of a school district to
 117-10  participate in a single appraisal district does not apply to
 117-11  property annexed to the school district under Subchapter C or G,
 117-12  Chapter 36, Education Code, unless:
 117-13              (1)  the school district taxes property other than
 117-14  property annexed to the district under Subchapter C or G, Chapter
 117-15  36, Education Code, in the same county as the annexed property; or
 117-16              (2)  the annexed property is contiguous to property in
 117-17  the school district other than property annexed to the district
 117-18  under Subchapter C or G, Chapter 36, Education Code.  <A county
 117-19  education district that has boundaries extending into two or more
 117-20  counties must participate in each appraisal district in which one
 117-21  of its component school districts participates for purposes of
 117-22  appraisal of the component school district's territory.>
 117-23        (f)  All costs of operating an appraisal district in
 117-24  territory outside the county for which the appraisal district is
 117-25  established are allocated to the taxing unit for which the
 117-26  appraisal district appraises property in <that chooses to add> that
 117-27  territory <to the district>.  If the appraisal district appraises
  118-1  property in the same territory for two or more taxing units <add
  118-2  the same territory to an appraisal district>, costs of operating
  118-3  the district in that territory are allocated to the units in the
  118-4  proportion the total dollar amount of taxes each unit imposes in
  118-5  that territory bears to the total dollar amount of taxes all taxing
  118-6  units participating in the appraisal district impose in that
  118-7  territory.
  118-8        (g)  If property is annexed to a school district under
  118-9  Subchapter C or G, Chapter 36, Education Code, the appraisal
 118-10  district established for the county in which the property is
 118-11  located shall appraise the property for the school district, and
 118-12  the school district participates in that appraisal district for
 118-13  purposes of the appraisal of that property, except as otherwise
 118-14  permitted by Subsection (b).
 118-15        SECTION 4.06.  Section 6.03, Tax Code, is amended by amending
 118-16  Subsections (c) through (e) and adding Subsection (m) to read as
 118-17  follows:
 118-18        (c)  Members of the board of directors are appointed by vote
 118-19  of the governing bodies of the incorporated cities and towns, the
 118-20  school districts <other than the county education district>, and,
 118-21  if entitled to vote, the conservation and reclamation districts
 118-22  that participate in the district and of the county.  A governing
 118-23  body may cast all its votes for one candidate or distribute them
 118-24  among candidates for any number of directorships.  Conservation and
 118-25  reclamation districts are not entitled to vote unless at least one
 118-26  conservation and reclamation district in the district delivers to
 118-27  the chief appraiser a written request to nominate and vote on the
  119-1  board of directors by June 1 of each odd-numbered year.  On receipt
  119-2  of a request, the chief appraiser shall certify a list by June 15
  119-3  of all eligible conservation and reclamation districts that are
  119-4  imposing taxes and that participate in the district.
  119-5        (d)  The voting entitlement of a taxing unit that is entitled
  119-6  to vote for directors is determined by dividing the total dollar
  119-7  amount of property taxes imposed in the district by the taxing unit
  119-8  for the preceding tax year by the sum of the total dollar amount of
  119-9  property taxes imposed in the district for that year by each taxing
 119-10  unit that is entitled to vote, by multiplying the quotient by
 119-11  1,000, and by rounding the product to the nearest whole number.
 119-12  That number is multiplied by the number of directorships to be
 119-13  filled.  <For a school district, the total dollar amount of
 119-14  property taxes imposed in the district by the unit is considered to
 119-15  be the sum of the taxes imposed by the district and the revenue
 119-16  received by the district from the county education district.>  A
 119-17  taxing unit participating in two or more districts is entitled to
 119-18  vote in each district in which it participates, but only the taxes
 119-19  imposed in a district are used to calculate voting entitlement in
 119-20  that district.
 119-21        (e)  The chief appraiser shall calculate the number of votes
 119-22  to which each taxing unit other than a conservation and reclamation
 119-23  district is entitled and shall deliver written notice to each of
 119-24  those units of its voting entitlement before October 1 of each
 119-25  odd-numbered year.  The  chief  appraiser  shall  deliver  the
 119-26  notice:
 119-27              (1)  to the county judge and each commissioner of the
  120-1  county served by the appraisal district;
  120-2              (2)  to the presiding officer of the governing body of
  120-3  each city or town participating in the appraisal district, to the
  120-4  city manager of each city or town having a city manager, and to the
  120-5  city secretary or clerk, if there is one, of each city or town that
  120-6  does not have a city manager; and
  120-7              (3)  to the presiding officer of the governing body of
  120-8  each school district<, other than the county education district,>
  120-9  participating in the district and to the superintendent of those
 120-10  school districts.
 120-11        (m)  If a school district participates in an appraisal
 120-12  district in which the only property of the school district located
 120-13  in the appraisal district is property annexed to the school
 120-14  district under Subchapter C or G, Chapter 36, Education Code, an
 120-15  individual who does not meet the residency requirements of
 120-16  Subsection (a) is eligible to be appointed to the board of
 120-17  directors of the appraisal district if:
 120-18              (1)  the individual is a resident of the school
 120-19  district; and
 120-20              (2)  the individual is nominated as a candidate for the
 120-21  board of directors by the school district or, if the taxing units
 120-22  have adopted a change in the method of appointing board members
 120-23  that does not require a nomination, the school district appoints or
 120-24  participates in the appointment of the individual.
 120-25        SECTION 4.07.  Subsections (d) and (h), Section 6.06, Tax
 120-26  Code, are amended to read as follows:
 120-27        (d)  Each taxing unit participating in the district<, other
  121-1  than a county education district,> is allocated a portion of the
  121-2  amount of the budget equal to the proportion that the total dollar
  121-3  amount of property taxes imposed in the district by the unit for
  121-4  the tax year in which the budget proposal is prepared bears to the
  121-5  sum of the total dollar amount of property taxes imposed in the
  121-6  district by each participating unit for that year.  <For a school
  121-7  district, other than a county education district, the total dollar
  121-8  amount of property taxes imposed in the district by the unit is
  121-9  considered to be the sum of the taxes imposed by the district and
 121-10  the revenue received by the district from the county education
 121-11  district.>  If a taxing unit participates in two or more districts,
 121-12  only the taxes imposed in a district are used to calculate the
 121-13  unit's cost allocations in that district.  If the number of real
 121-14  property parcels in a taxing unit is less than 5 percent of the
 121-15  total number of real property parcels in the district and the
 121-16  taxing unit imposes in excess of 25 percent of the total amount of
 121-17  the property taxes imposed in the district by all of the
 121-18  participating taxing units for a year, the unit's allocation may
 121-19  not exceed a percentage of the appraisal district's budget equal to
 121-20  three times the unit's percentage of the total number of real
 121-21  property parcels appraised by the district.
 121-22        (h)  If a newly formed taxing unit or a taxing unit that did
 121-23  not impose taxes in the preceding year<, other than a county
 121-24  education district,> imposes taxes in any tax year, that unit is
 121-25  allocated a portion of the amount budgeted to operate the district
 121-26  as if it had imposed taxes in the preceding year, except that the
 121-27  amount of taxes the unit imposes in the current year is used to
  122-1  calculate its allocation.  Before the amount of taxes to be imposed
  122-2  for the current year is known, the allocation may be based on an
  122-3  estimate to which the district board of directors and the governing
  122-4  body of the unit agree, and the payments made after that amount is
  122-5  known shall be adjusted to reflect the amount imposed.  The
  122-6  payments of a newly formed taxing unit that has no source of funds
  122-7  are postponed until the unit has received adequate tax or other
  122-8  revenues.
  122-9        SECTION 4.08.  Subsections (d), (e), (m), and (n), Section
 122-10  11.13, Tax Code, are amended to read as follows:
 122-11        (d)  In addition to the exemptions provided by Subsections
 122-12  (b) and (c) of this section, an individual who is disabled or is 65
 122-13  or older is entitled to an exemption from taxation by a taxing unit
 122-14  of a portion (the amount of which is fixed as provided by
 122-15  Subsection (e) of this section) of the appraised value of his
 122-16  residence homestead if the exemption is adopted either:
 122-17              (1)  by the governing body of the taxing unit <other
 122-18  than a county education district>; or
 122-19              (2)  by a favorable vote of a majority of the qualified
 122-20  voters of the taxing unit at an election called by the governing
 122-21  body of a taxing unit <other than a county education district>, and
 122-22  the governing body shall call the election on the petition of at
 122-23  least 20 percent of the number of qualified voters who voted in the
 122-24  preceding election of the taxing unit<; or>
 122-25              <(3)  by a favorable vote of a majority of the
 122-26  qualified voters of a county education district at an election held
 122-27  under Section 20.950, Education Code>.
  123-1        (e)  The amount of an exemption adopted as provided by
  123-2  Subsection (d) of this section is $3,000 of the appraised value of
  123-3  the residence homestead unless a larger amount is specified by:
  123-4              (1)  the governing body authorizing the exemption if
  123-5  the exemption is authorized as provided by Subdivision (1) of
  123-6  Subsection (d) of this section; or
  123-7              (2)  the petition for the election if the exemption is
  123-8  authorized as provided by Subdivision (2) of Subsection (d) of this
  123-9  section<; or>
 123-10              <(3)  the proposition approved at an election held
 123-11  under Section 20.950, Education Code>.
 123-12        (m)  In this section:
 123-13              (1)  "Disabled" means under a disability for purposes
 123-14  of payment of disability insurance benefits under Federal Old-Age,
 123-15  Survivors, and Disability Insurance.
 123-16              (2)  "School district" means a political subdivision
 123-17  organized to provide general elementary and secondary public
 123-18  education.  <"School district" includes a county education district
 123-19  established by the consolidation of the local school districts in
 123-20  its boundaries for the limited purpose of exercising a portion of
 123-21  the taxing power previously authorized by the voters in those
 123-22  school districts.>   "School district" does not include a junior
 123-23  college district or a political subdivision organized to provide
 123-24  special education services.
 123-25        (n)  In addition to any other exemptions provided by this
 123-26  section, an individual is entitled to an exemption from taxation by
 123-27  a taxing unit <other than a county education district> of a
  124-1  percentage of the appraised value of his residence homestead if the
  124-2  exemption is adopted by the governing body of the taxing unit
  124-3  before May 1 in the manner provided by law for official action by
  124-4  the body.  If the percentage set by the taxing unit produces an
  124-5  exemption in a tax year of less than $5,000 when applied to a
  124-6  particular residence homestead, the individual is entitled to an
  124-7  exemption of $5,000 of the appraised value.  The percentage adopted
  124-8  by the taxing unit may not exceed 20 percent.  <In addition to any
  124-9  other exemptions provided by this section, an individual is
 124-10  entitled to an exemption from taxation by a county education
 124-11  district of a percentage of the appraised value of his residence
 124-12  homestead if the exemption is adopted by the voters of the district
 124-13  at an election held in the district for that purpose under Section
 124-14  20.946, Education Code.>  If the percentage set by the voters
 124-15  produces an exemption in a tax year of less than $5,000 when
 124-16  applied to a particular residence homestead, the individual is
 124-17  entitled to an exemption of $5,000 of the appraised value.  The
 124-18  percentage adopted by the voters may not exceed 20 percent.
 124-19        SECTION 4.09.  Subsections (c) and (e), Section 11.14, Tax
 124-20  Code, are amended to read as follows:
 124-21        (c)  The governing body of a taxing unit, <other than a
 124-22  county education district,> by resolution or order, depending upon
 124-23  the method prescribed by law for official action by that governing
 124-24  body, may provide for taxation of tangible personal property
 124-25  exempted under Subsection (a).  <The voters of a county education
 124-26  district, by an election held under Section 20.951, Education Code,
 124-27  may provide for taxation of tangible personal property exempted
  125-1  under Subsection (a).>  If a taxing unit provides for taxation of
  125-2  tangible personal property as provided by this subsection, the
  125-3  exemption prescribed by Subsection (a) does not apply to that unit.
  125-4        (e)  A political subdivision <other than a county education
  125-5  district> choosing to tax property otherwise made exempt by this
  125-6  section, pursuant to Article VIII, Section 1(e), of the Texas
  125-7  Constitution, may not do so until the governing body of the
  125-8  political subdivision has held a public hearing on the matter,
  125-9  after having given notice of the hearing at the times and in the
 125-10  manner required by this subsection, and has found that the action
 125-11  will be in the public interest of all the residents of that
 125-12  political subdivision.  At the hearing, all interested persons are
 125-13  entitled to speak and present evidence for or against taxing the
 125-14  property.  Not later than the 30th day prior to the date of a
 125-15  hearing held under this subsection, notice of the hearing must be:
 125-16              (1)  published in a newspaper having general
 125-17  circulation in the political subdivision and in a section of the
 125-18  newspaper other than the advertisement section;
 125-19              (2)  not less than one-half of one page in size; and
 125-20              (3)  republished on not less than three separate days
 125-21  during the period beginning with the 10th day prior to the hearing
 125-22  and ending with the actual date of the hearing.
 125-23        SECTION 4.10.  Section 21.01, Tax Code, is amended to read as
 125-24  follows:
 125-25        Sec. 21.01.  Real Property.  Real property is taxable by a
 125-26  taxing unit if located in the unit on January 1, except as provided
 125-27  by Chapter 36, Education Code.
  126-1        SECTION 4.11.  Section 21.02, Tax Code, is amended to read as
  126-2  follows:
  126-3        Sec. 21.02.  TANGIBLE PERSONAL PROPERTY GENERALLY.
  126-4  (a)  Except as provided by Subsection (b) and Sections 21.021,
  126-5  21.04, and 21.05 <of this code>, tangible personal property is
  126-6  taxable by a taxing unit if:
  126-7              (1)  it is located in the unit on January 1 for more
  126-8  than a temporary period;
  126-9              (2)  it normally is located in the unit, even though it
 126-10  is outside the unit on January 1, if it is outside the unit only
 126-11  temporarily;
 126-12              (3)  it normally is returned to the unit between uses
 126-13  elsewhere and is not located in any one place for more than a
 126-14  temporary period; or
 126-15              (4)  the owner resides (for property not used for
 126-16  business purposes) or  maintains his principal place of business in
 126-17  this state (for property used for business purposes) in the unit
 126-18  and the property is taxable in this state but does not have a
 126-19  taxable situs pursuant to Subdivisions (1) through (3) of this
 126-20  section.
 126-21        (b)  Tangible personal property having taxable situs at the
 126-22  same location as real property detached from a school district and
 126-23  annexed by another school district under Chapter 36, Education
 126-24  Code, is taxable in the tax year in which the detachment and
 126-25  annexation occurs by the same school district by which the real
 126-26  property is taxable in that tax year under Chapter 36, Education
 126-27  Code.  For purposes of this subsection and Chapter 36, Education
  127-1  Code, tangible personal property has taxable situs at the same
  127-2  location as real property detached and annexed under Chapter 36,
  127-3  Education Code, if the detachment and annexation of the real
  127-4  property, had it occurred before January 1 of the tax year, would
  127-5  have changed the taxable situs of the tangible personal property
  127-6  determined as provided by Subsection (a) from the school district
  127-7  from which the real property was detached to the school district to
  127-8  which the real property was annexed.
  127-9        (c)  Tangible personal property has taxable situs in a school
 127-10  district that is the result of a consolidation under Chapter 36,
 127-11  Education Code, in the year in which the consolidation occurs if
 127-12  the property would have had taxable situs in the consolidated
 127-13  district in that year had the consolidation occurred before January
 127-14  1 of that year.
 127-15        SECTION 4.12.  Section 25.25, Tax Code, is amended by adding
 127-16  Subsection (h) to read as follows:
 127-17        (h)  The chief appraiser shall change the appraisal records
 127-18  and school district appraisal rolls promptly to reflect the
 127-19  detachment and annexation of property among school districts under
 127-20  Subchapter C or G, Chapter 36, Education Code.
 127-21        SECTION 4.13.  The following provisions are repealed:
 127-22              (1)  Section 1.05 and Subchapter G, Chapter 20,
 127-23  Education Code;
 127-24              (2)  Sections 6.061(f), 26.12(e), and 312.002(e) and
 127-25  (f), Tax Code.
 127-26        SECTION 4.14.  Effective September 1, 1993, each county
 127-27  education district created under Section 2, Chapter 20, Acts of the
  128-1  72nd Legislature, Regular Session, 1991, is abolished.
  128-2        SECTION 4.15.  (a)  On August 31, 1993, each county education
  128-3  district shall transfer its funds to its component school districts
  128-4  in the manner provided by rule of the commissioner of education,
  128-5  except any penalties paid to a county education district in 1993
  128-6  shall be allocated to the school district that is the situs of the
  128-7  property that incurred the penalties.
  128-8        (b)  On September 1, 1993, any assets of a county education
  128-9  district other than funds are transferred to its component school
 128-10  districts in the manner and amounts provided by rule of the
 128-11  commissioner of education.
 128-12        (c)  On September 1, 1993, the contracts and other
 128-13  liabilities of a county education district are transferred to its
 128-14  component school districts in the manner and amounts, including
 128-15  joint obligations, provided by rule of the commissioner of
 128-16  education.
 128-17        (d)  The records of the board of a county education district
 128-18  shall be maintained as provided by rule of the commissioner of
 128-19  education.
 128-20        (e)  The component school districts of a county education
 128-21  district abolished by this Act may collect and use or distribute
 128-22  taxes imposed by the county education district that are delinquent
 128-23  in the manner provided by rule of the commissioner of education.
 128-24        SECTION 4.16.  This article takes effect immediately and
 128-25  applies beginning with the 1993-1994 school year.
 128-26                               ARTICLE 5
 128-27        SECTION 5.01.  Subchapter Z, Chapter 13, Education Code, is
  129-1  amended by adding Section 13.914 to read as follows:
  129-2        Sec. 13.914.  LOANED TEACHERS.  (a)  A school district may by
  129-3  agreement with a business, including a sole proprietorship or
  129-4  corporation, accept for special employment as a classroom teacher
  129-5  with the district a person employed by the business subject to the
  129-6  conditions prescribed by Subsection (b).
  129-7        (b)  An agreement under Subsection (a) must provide that:
  129-8              (1)  the salary of the loaned teacher is paid by the
  129-9  business according to the contractual relationship between the
 129-10  business and the loaned teacher;
 129-11              (2)  the school district shall supervise the loaned
 129-12  teacher in the performance of teaching activities; and
 129-13              (3)  all health and accident insurance and pension
 129-14  benefits of the loaned teacher are the exclusive obligation of the
 129-15  business.
 129-16        (c)  The commissioner of education may adopt guidelines for
 129-17  an agreement under this section and may authorize the expenditure
 129-18  of Central Education Agency funds for the recruiting and employment
 129-19  of loaned teachers under this section.
 129-20        (d)  The State Board of Education by rule may provide a
 129-21  one-year exemption for a loaned teacher from the teacher
 129-22  certification requirements of this chapter and may provide minimum
 129-23  standards and educational experience for qualifications for the
 129-24  exemption.
 129-25        SECTION 5.02.  This article takes effect immediately.
 129-26                               ARTICLE 6
 129-27        SECTION 6.01.  Subsections (a) and (b), Section 4.25,
  130-1  Education Code, are amended to read as follows:
  130-2        (a)  If any parent or person standing in parental relation to
  130-3  a child, within the compulsory school attendance ages and not
  130-4  lawfully exempt or properly excused from school attendance, fails
  130-5  to require such child to attend school for such periods as required
  130-6  by law, it shall be the duty of the proper attendance officer to
  130-7  warn, in writing, the parent or person standing in parental
  130-8  relation that attendance must be immediately required.  If after
  130-9  this warning the parent or person standing in parental relation
 130-10  intentionally, knowingly, recklessly, or with criminal negligence
 130-11  fails to require the child to attend school as required by law and
 130-12  the child has unexcused voluntary absences for the amount of time
 130-13  specified under Section 51.03(b)(2), Family Code, the parent or
 130-14  person standing in parental relation commits an offense.  The
 130-15  attendance officer shall file a complaint against him in the county
 130-16  court, in the justice court of his resident precinct, or in the
 130-17  municipal court of the municipality in which he resides or in the
 130-18  municipality or justice of the peace precinct in which the school
 130-19  is located.  In addition, if the child has unexcused voluntary
 130-20  absences for the amount of time specified under Section
 130-21  51.03(b)(2), Family Code <been voluntarily absent from school for
 130-22  10 or more days or parts of days within a six-month period or three
 130-23  or more days or parts of days within a four-week period without the
 130-24  consent of his parents>, the attendance officer shall refer the
 130-25  child to the county juvenile probation department for action as
 130-26  conduct indicating a need for supervision under that section
 130-27  <Section 51.03(b), Family Code>.  A court in which a complaint is
  131-1  filed under this subsection shall give preference to a hearing on
  131-2  the complaint over other cases before the court.  An offense under
  131-3  this section is punishable by a fine of not less than $10 <$5> nor
  131-4  more than $50 <$25> for the first offense, not less than $20 <$10>
  131-5  nor more than $100 <$50> for the second offense, and not less than
  131-6  $50 <$25> nor more than $200 <$100> for a subsequent offense.  Each
  131-7  day the child remains out of school after the warning has been
  131-8  given or the child ordered to school by the juvenile court may
  131-9  constitute a separate offense.  If the court probates the sentence,
 131-10  the court may require the defendant to render personal services to
 131-11  a charitable or educational institution as a condition of
 131-12  probation.
 131-13        (b)  A fine collected under this section shall be deposited
 131-14  as follows:
 131-15              (1)  one-half shall be deposited to the credit of the
 131-16  operating fund of the school district in which the child attends
 131-17  school; and
 131-18              (2)  one-half shall be deposited to the credit of:
 131-19                    (A)  the general fund of the county, if the
 131-20  complaint is filed in the county court or justice court; or
 131-21                    (B)  the general fund of the municipality, if the
 131-22  complaint is filed in municipal court <It is a defense to
 131-23  prosecution under Subsection (a) of this section that the parent or
 131-24  person standing in parental relation to the child is unable to
 131-25  compel the child to attend school>.
 131-26        SECTION 6.02.  Chapter 54, Family Code, is amended by adding
 131-27  Section 54.043 to read as follows:
  132-1        Sec. 54.043.  MONITORING SCHOOL ATTENDANCE.  If the court
  132-2  places a child on probation under Section 54.04(d) and requires as
  132-3  a condition of probation that the child attend school, the
  132-4  probation officer charged with supervising the child shall monitor
  132-5  the child's school attendance and report to the court if the child
  132-6  is voluntarily absent from school.
  132-7        SECTION 6.03.  (a)  The change in law made by this article
  132-8  applies only to an offense committed on or after the effective date
  132-9  of this article.  For the purposes of this section, an offense is
 132-10  committed before the effective date of this article if any element
 132-11  of the offense occurs before the effective date.
 132-12        (b)  An offense committed before the effective date of this
 132-13  article is covered by the law in effect when the offense was
 132-14  committed, and the former law is continued in effect for that
 132-15  purpose.
 132-16        SECTION 6.04.  This article takes effect September 1, 1993.
 132-17                               ARTICLE 7
 132-18        SECTION 7.01.  Title 2, Education Code, is amended by adding
 132-19  Chapter 35 to read as follows:
 132-20           CHAPTER 35.  PUBLIC SCHOOL SYSTEM ACCOUNTABILITY
 132-21                   SUBCHAPTER A.  GENERAL PROVISIONS
 132-22        Sec. 35.001.  PUBLIC EDUCATION GOALS.  The objective of state
 132-23  support and maintenance of a system of public education is
 132-24  education for good citizenship and is grounded on the conviction
 132-25  that a general diffusion of knowledge is essential for the welfare
 132-26  of Texas and for the preservation of the liberties and rights of
 132-27  citizens.  The goals of public education are as follows:
  133-1        GOAL A:  All students shall have access to an education of
  133-2  high quality that will prepare them to participate fully now and in
  133-3  the future in the social, economic, and educational opportunities
  133-4  available in Texas.
  133-5        GOAL B:  The achievement gap between educationally
  133-6  disadvantaged students and other populations will be closed.
  133-7  Through enhanced dropout prevention efforts, the graduation rate
  133-8  will be raised to 95 percent of students who enter the seventh
  133-9  grade.
 133-10        GOAL C:  The state shall demonstrate exemplary performance in
 133-11  comparison to national and international standards for student
 133-12  performance.
 133-13        GOAL D:  A well-balanced and appropriate curriculum will be
 133-14  provided to all students.
 133-15        GOAL E:  Qualified and effective personnel will be attracted
 133-16  and retained.  Adequate and competitive compensation commensurate
 133-17  with responsibilities will be ensured.  Qualified staff in critical
 133-18  shortage areas will be recruited, trained, and retained.
 133-19        GOAL F:  The organization and management of all levels of the
 133-20  education system will be productive, efficient, and accountable.
 133-21        GOAL G:  Instruction and administration will be improved
 133-22  through research that identifies creative and effective methods.
 133-23  Demonstration programs will be developed and local initiatives
 133-24  encouraged for new instructional arrangements and management
 133-25  techniques.  Technology will be used to increase the equity,
 133-26  efficiency, and effectiveness of student learning, instructional
 133-27  management, staff development, and administration.
  134-1             SUBCHAPTER B.  ASSESSMENT OF ACADEMIC SKILLS
  134-2        Sec. 35.021.  ESSENTIAL SKILLS AND KNOWLEDGE.  (a)  The State
  134-3  Board of Education by rule shall establish the essential skills and
  134-4  knowledge that all students should learn to achieve the goals
  134-5  provided under Section 35.001.
  134-6        (b)  Before adopting rules under this section, the board
  134-7  shall consider the comments of the Legislative Education Board as
  134-8  required under Section 11.24.
  134-9        Sec. 35.022.  ASSESSMENT PROGRAM.  (a)  The State Board of
 134-10  Education by rule shall create and implement a statewide assessment
 134-11  program that is primarily performance-based to ensure school
 134-12  accountability for student achievement that achieves the goals
 134-13  provided under Section 35.001.  After adopting rules under this
 134-14  section, the State Board of Education shall consider the importance
 134-15  of maintaining stability in the statewide assessment program when
 134-16  adopting any subsequent modification of the rules.
 134-17        (b)  Before adopting rules under this section, the State
 134-18  Board of Education shall consider the comments of the Legislative
 134-19  Education Board as required under Section 11.24.
 134-20        Sec. 35.023.  ADOPTION AND ADMINISTRATION OF INSTRUMENTS.
 134-21  (a)  The Central Education Agency shall adopt appropriate
 134-22  criterion-referenced assessment instruments designed to assess
 134-23  competencies in reading, writing, social studies, science,
 134-24  mathematics, and other subject areas determined by the State Board
 134-25  of Education.  Assessment in reading and mathematics shall be
 134-26  annual for all nonexempt pupils in grades three through eight and
 134-27  assessment shall be periodic in other areas as determined by the
  135-1  State Board of Education.
  135-2        (b)  The Central Education Agency shall also adopt secondary
  135-3  exit-level assessment instruments designed to assess competencies
  135-4  in mathematics, social studies, science, and English language arts
  135-5  and other subject areas determined by the State Board of Education.
  135-6  The English language arts section must include the assessment of
  135-7  writing competencies.  The State Board of Education shall
  135-8  administer the assessment instruments.
  135-9        (c)  The State Board of Education shall adopt a schedule for
 135-10  the administration of secondary exit-level assessment instruments.
 135-11  Each pupil who did not perform satisfactorily on any secondary
 135-12  exit-level assessment instrument when initially tested shall be
 135-13  given multiple opportunities to retake that assessment instrument.
 135-14        (d)  An assessment instrument adopted under this section may
 135-15  include multiple sets of questions with one set administered to
 135-16  each group of students assessed in order to enhance security and
 135-17  broaden the total curriculum elements assessed.
 135-18        (e)  The assessment instruments shall be designed to include
 135-19  assessment of a student's problem-solving ability and
 135-20  complex-thinking skills.
 135-21        (f)  The assessment instruments required by Subsections (a)
 135-22  and (b) must include assessments of social studies and science not
 135-23  later than the 1994-1995 school year.  The State Board of Education
 135-24  may adopt a schedule for the addition of the assessment of those
 135-25  subjects at the required grade levels in phases.  This subsection
 135-26  expires August 31, 1995.
 135-27        (g)  The State Board of Education may adopt one appropriate,
  136-1  nationally recognized, norm-referenced assessment instrument in
  136-2  reading and mathematics to be administered uniformly in the spring.
  136-3  If adopted, a norm-referenced assessment instrument must be a
  136-4  secured test.  The state may pay the costs of purchasing and
  136-5  scoring the adopted assessment instrument and of distributing the
  136-6  results of the adopted instrument to the school districts.  A
  136-7  district that administers the norm-referenced test adopted under
  136-8  this section shall report the results to the Central Education
  136-9  Agency in a manner prescribed by the commissioner of education.
 136-10        (h)  Not later than the 1994-1995 school year, the Central
 136-11  Education Agency shall adopt end-of-course tests for grades nine
 136-12  through 12 for subjects as defined by the commissioner of education
 136-13  and the State Board of Education.
 136-14        (i)  The Central Education Agency shall notify school
 136-15  districts and campuses of the results of assessment instruments
 136-16  administered under this section at the earliest possible date
 136-17  determined by the State Board of Education but not later than the
 136-18  beginning of the subsequent school year.
 136-19        (j)  The provisions of this section are subject to
 136-20  modification by rules adopted under Section 35.022.  Each
 136-21  assessment instrument adopted under those rules must be reliable
 136-22  and valid and must meet federal requirements for measurement of
 136-23  student progress.
 136-24        Sec. 35.024.  SATISFACTORY PERFORMANCE.  (a)  The State Board
 136-25  of Education shall determine the level of performance considered to
 136-26  be satisfactory on the assessment instruments.
 136-27        (b)  Each school district shall offer an intensive program of
  137-1  instruction for students who did not perform satisfactorily on an
  137-2  assessment instrument administered under this subchapter.  The
  137-3  intensive programs shall be designed to enable the students to be
  137-4  performing at grade level at the conclusion of the next regular
  137-5  school term.
  137-6        (c)  The Central Education Agency shall develop and
  137-7  distribute study guides to assist parents in providing assistance
  137-8  during the period that school is recessed for summer to students
  137-9  who do not perform satisfactorily on one or more parts of an
 137-10  assessment instrument administered under this subchapter.  The
 137-11  commissioner of education shall retain a portion of the total
 137-12  amount of funds allotted under Section 16.152(a) that the
 137-13  commissioner considers appropriate to finance the development and
 137-14  distribution of the study guides and shall reduce each district's
 137-15  allotment proportionately.
 137-16        Sec. 35.025.  EXIT-LEVEL PERFORMANCE REQUIRED.  (a)  A
 137-17  student may not receive a high school diploma until the student has
 137-18  performed satisfactorily on the secondary exit-level assessment
 137-19  instruments for reading, writing, and mathematics.  The State Board
 137-20  of Education shall adopt a schedule for the addition of
 137-21  satisfactory performance on secondary exit-level assessment
 137-22  instruments in other subject areas as a requirement for receipt of
 137-23  a high school diploma.
 137-24        (b)  Each time a secondary exit-level assessment instrument
 137-25  is administered, a student who has not been given a high school
 137-26  diploma because of a failure to perform satisfactorily on the
 137-27  assessment instrument for that subject area may retake the
  138-1  assessment instrument.
  138-2        (c)  A student who has been denied a high school diploma
  138-3  under Subsections (a) and (b) and who subsequently performs
  138-4  satisfactorily on each secondary exit-level assessment instrument
  138-5  shall be issued a high school diploma.
  138-6        Sec. 35.026.  LOCAL OPTION.  In addition to the assessment
  138-7  instruments adopted by the Central Education Agency and
  138-8  administered by the State Board of Education, a local school
  138-9  district may adopt and administer criterion-referenced or
 138-10  norm-referenced assessment instruments, or both, at any grade
 138-11  level.  A norm-referenced assessment instrument adopted under this
 138-12  section must be economical, nationally recognized, and
 138-13  state-approved.
 138-14        Sec. 35.027.  EXEMPTION.  (a)  Any student who has a physical
 138-15  or mental impairment or a learning disability that prevents the
 138-16  student from mastering the competencies which the academic skills
 138-17  assessment instruments are designed to measure may be exempted from
 138-18  the requirements of this subchapter.
 138-19        (b)  The State Board of Education shall adopt rules under
 138-20  which a district may determine if a student is eligible for an
 138-21  exemption under this section.  The Central Education Agency shall
 138-22  closely monitor compliance with those rules.
 138-23        (c)  The State Board of Education shall adopt rules under
 138-24  which a dyslexic student who is not exempt under this section may
 138-25  utilize procedures including but not limited to oral examinations
 138-26  where appropriate and the allowance of additional time and the
 138-27  materials or technology necessary for the student to demonstrate
  139-1  the student's mastery of the competencies the assessment
  139-2  instruments are designed to measure.
  139-3        Sec. 35.028.  COMPARISON OF STATE RESULTS TO NATIONAL
  139-4  RESULTS.  The state assessment program shall obtain nationally
  139-5  comparative results for the subject areas and grade levels for
  139-6  which criterion-referenced assessment instruments are adopted under
  139-7  Section 35.023.
  139-8        Sec. 35.029.  MIGRANT WORKERS.  (a)  The State Board of
  139-9  Education by rule may provide alternate dates for the
 139-10  administration of the assessments to a student whose parent or
 139-11  guardian is a migrant worker and who travels with the parent or
 139-12  guardian.  The alternate dates may be chosen following a
 139-13  consideration of migrant work patterns, and the dates selected may
 139-14  afford maximum opportunity for the students to be present when the
 139-15  assessment instruments are administered.
 139-16        (b)  In this section, "migrant worker" means an individual
 139-17  who is employed in agricultural labor of a seasonal or temporary
 139-18  nature and whose work requires the individual to be absent
 139-19  overnight from the individual's residence.
 139-20        Sec. 35.030.  CONFIDENTIALITY; PERFORMANCE REPORTS.  (a)  In
 139-21  adopting academic skills assessment instruments under this
 139-22  subchapter, the State Board of Education or a local school district
 139-23  shall ensure the security of the instruments and tests in their
 139-24  preparation, administration, and grading.  Meetings or portions of
 139-25  meetings held by the State Board of Education or a local school
 139-26  district at which individual assessment instruments or assessment
 139-27  instrument items are discussed or adopted are not open to the
  140-1  public under Chapter 271, Acts of the 60th Legislature, Regular
  140-2  Session, 1967 (Article 6252-17, Vernon's Texas Civil Statutes), and
  140-3  the assessment instruments or assessment instrument items are
  140-4  confidential.
  140-5        (b)  The results of individual student performance on
  140-6  academic skills assessment instruments administered under this
  140-7  subchapter are confidential and may be made available only to the
  140-8  student, the student's parent or guardian, the school personnel
  140-9  directly involved with the student's educational program, and the
 140-10  Central Education Agency as required by this subchapter.  However,
 140-11  overall student performance data shall be aggregated by grade
 140-12  level, subject area, campus, and district and made available to the
 140-13  public, with appropriate interpretations, at regularly scheduled
 140-14  meetings of the governing board of each school district.  The
 140-15  information may not contain the names of individual students or
 140-16  teachers.  The commissioner of education shall compile all of the
 140-17  data and report it to the legislature, lieutenant governor, and
 140-18  governor no later than January 1 of each odd-numbered year.
 140-19        (c)  In compiling performance data under Subsection (b), a
 140-20  district or the commissioner of education may aggregate separately
 140-21  from the performance data of other students the performance data of
 140-22  students enrolled in:
 140-23              (1)  a bilingual education or special language program
 140-24  under Subchapter L, Chapter 21; or
 140-25              (2)  a special education program under Subchapter N,
 140-26  Chapter 21.
 140-27        Sec. 35.031.  COST.  The cost of preparing, administering, or
  141-1  grading the assessment instruments shall be paid from the
  141-2  compensatory aid provided by Section 16.152, and each district
  141-3  shall bear the cost in the same manner described for a reduction in
  141-4  allotments under Section 16.254.  If a district does not receive an
  141-5  allocation of compensatory aid, the commissioner of education shall
  141-6  subtract the cost from the district's other foundation school fund
  141-7  allocations.
  141-8        Sec. 35.032.  BIENNIAL REPORTS.  The State Board of Education
  141-9  shall biennially report to the legislature an evaluation of the
 141-10  correlation between student grades and student performance on
 141-11  assessment instruments administered under this subchapter.  The
 141-12  report may be included with other reports made as required by law.
 141-13        Sec. 35.033.  ASSESSMENT INSTRUMENT STANDARDS; CIVIL PENALTY.
 141-14  (a)  A company or organization may not distribute to, sell to, or
 141-15  grade for the same school district the same form of an assessment
 141-16  instrument for more than three school years.  A school district may
 141-17  not use the same form of an assessment instrument for more than
 141-18  three years.
 141-19        (b)  A company or organization that grades an assessment
 141-20  instrument shall report the results to the district and to the
 141-21  Central Education Agency by campus and district and in comparison
 141-22  to state and national averages, unless the agency requests a report
 141-23  of the results in another form.
 141-24        (c)  State and national norms of averages shall be computed
 141-25  using data that are not more than two years old at the time the
 141-26  assessment instrument is administered and that are representative
 141-27  of the group of students to whom the assessment instrument is
  142-1  administered.  The standardization norms shall be based on a
  142-2  national probability sample that meets accepted standards for
  142-3  educational and psychological testing and shall be updated at least
  142-4  every two years using proven psychometric procedures approved by
  142-5  the State Board of Education.
  142-6        (d)  A company or organization that reports results using
  142-7  national norms that are not calculated in compliance with
  142-8  Subsection (c) is liable to the state in an amount equal to three
  142-9  times the amount of actual damages.  The actual damages are
 142-10  presumed to be at least equal to the amount charged by the company
 142-11  or organization to a school district for the assessment instrument,
 142-12  including any charge for grading the assessment instrument.  The
 142-13  attorney general, a district attorney, or a county attorney may
 142-14  bring suit to collect the damages on the request of the State Board
 142-15  of Education or on the request of a student or a parent or guardian
 142-16  of a student to whom the assessment instrument was administered.
 142-17        (e)  The State Board of Education shall adopt rules for the
 142-18  implementation of this section and for the maintenance of the
 142-19  security of the contents of all assessment instruments.
 142-20        (f)  In this section, "assessment instrument" means a
 142-21  group-administered achievement test.
 142-22                 SUBCHAPTER C.  PERFORMANCE INDICATORS
 142-23        Sec. 35.041.  ACADEMIC EXCELLENCE INDICATORS.  (a)  The State
 142-24  Board of Education, on the advice of the Legislative Education
 142-25  Board, shall adopt a set of indicators of the quality of learning
 142-26  on a campus.  The State Board of Education biennially shall review
 142-27  the indicators for the consideration of appropriate revisions.
  143-1        (b)  Performance on the indicators adopted under this section
  143-2  shall be compared to state-established standards.  The degree of
  143-3  change from one school year to the next in performance on each
  143-4  indicator adopted under this section shall also be considered.  The
  143-5  indicators must be based on information that is disaggregated with
  143-6  respect to race, ethnicity, gender, and socioeconomic status and
  143-7  must include:
  143-8              (1)  the results of assessment instruments required
  143-9  under Subchapter B aggregated by grade level and subject area;
 143-10              (2)  dropout rates;
 143-11              (3)  student attendance rates;
 143-12              (4)  high school end-of-course examinations adopted by
 143-13  the State Board of Education;
 143-14              (5)  the percentage of graduating students who attain
 143-15  scores on the secondary exit-level assessment instruments required
 143-16  under Subchapter B that are equivalent to a passing score on the
 143-17  test instrument required under Section 51.306;
 143-18              (6)  the percentage of graduating students who meet the
 143-19  course requirements established by the State Board of Education for
 143-20  career or college preparation program designations when available;
 143-21              (7)  the results of the Scholastic Assessment Test
 143-22  (SAT) and the American College Test; and
 143-23              (8)  any other indicator the State Board of Education
 143-24  adopts.
 143-25        (c)  Performance on the indicator under Subsection (b)(1)
 143-26  shall be compared to state standards, required improvement, and
 143-27  comparable improvement.  The state standard shall be established by
  144-1  the commissioner of education.  Required improvement is defined as
  144-2  the progress necessary for the campus or district to meet state
  144-3  standards and for its students to meet exit requirements as defined
  144-4  by the commissioner of education.  Comparable improvement is
  144-5  derived by measuring campuses and districts against a profile
  144-6  developed from a total state student performance data base which
  144-7  exhibits substantial equivalence to the characteristics of students
  144-8  served by the campus or district, including but not limited to past
  144-9  academic performance, socioeconomic status, ethnicity, and limited
 144-10  English proficiency.
 144-11        (d)  The State Board of Education shall report the status of
 144-12  education in the state as reflected by the indicators to the
 144-13  legislature not later than February 1 of each odd-numbered year.
 144-14        (e)  Annually, the commissioner of education shall define
 144-15  exemplary, recognized, and unacceptable performance for each
 144-16  academic excellence indicator included under Subsections (b)(1)
 144-17  through (6) and shall project the standards for each of those
 144-18  levels of performance for succeeding years.
 144-19        Sec. 35.042.  PERFORMANCE REPORT.  (a)  Each board of
 144-20  trustees shall publish an annual report describing the educational
 144-21  performance of the district and of each campus in the district that
 144-22  includes uniform student performance and descriptive information as
 144-23  determined under rules adopted by the commissioner of education.
 144-24  The annual report must also include campus performance objectives
 144-25  established under Section 21.7532 and the progress of each campus
 144-26  toward those objectives, which shall be available to the public.
 144-27  The annual report must also include the performance rating for the
  145-1  district as provided under Section 35.062(a) and the performance
  145-2  rating of each campus in the district as provided under Section
  145-3  35.062(c).  Supplemental information to be included in the reports
  145-4  shall be determined by the local board of trustees.  Performance
  145-5  information in the annual reports on the indicators established
  145-6  under Section 35.041 and descriptive information required by this
  145-7  section shall be provided by the Central Education Agency.
  145-8        (b)  The board of trustees shall hold a hearing for public
  145-9  discussion of the report.  The board of trustees shall notify
 145-10  property owners and parents in the district of the hearing.  After
 145-11  the hearing the report shall be widely disseminated within the
 145-12  district in a manner to be determined under rules adopted by the
 145-13  commissioner of education.
 145-14        (c)  The report must also include a comparison provided by
 145-15  the Central Education Agency of:
 145-16              (1)  the performance of each campus to its previous
 145-17  performance and to state-established standards;
 145-18              (2)  the performance of each district to its previous
 145-19  performance and to state-established standards; and
 145-20              (3)  the performance of each campus or district to
 145-21  comparable improvement.
 145-22        (d)  The report may include the following information:
 145-23              (1)  student information, including total enrollment,
 145-24  enrollment by ethnicity, economic status, and grade groupings and
 145-25  retention rates;
 145-26              (2)  financial information, including revenues and
 145-27  expenditures;
  146-1              (3)  staff information, including number and type of
  146-2  staff by sex, ethnicity, years of experience, and highest degree
  146-3  held, teacher and administrator salaries, and teacher turnover; and
  146-4              (4)  program information, including student enrollment
  146-5  by program, teachers by program, and instructional operating
  146-6  expenditures by program.
  146-7        (e)  The State Board of Education by rule shall authorize the
  146-8  combination of this report with other reports and financial
  146-9  statements and shall restrict the number and length of reports that
 146-10  school districts, school district employees, and school campuses
 146-11  are required to prepare.
 146-12        (f)  The report must include a statement of the amount, if
 146-13  any, of the school district's unencumbered surplus fund balance as
 146-14  of the last day of the preceding fiscal year and the percentage of
 146-15  the preceding year's budget that the surplus represents.
 146-16        Sec. 35.043.  CAMPUS REPORT CARD.  (a)  Each school year, the
 146-17  Central Education Agency shall prepare and distribute to each
 146-18  school district a report card for each campus.  The campus report
 146-19  cards must be based on the most current data available
 146-20  disaggregated by student groups.  Campus performance must be
 146-21  compared to previous campus and district performance, current
 146-22  district performance, state established standards, and comparable
 146-23  campus group performance.
 146-24        (b)  The report card shall include the following information
 146-25  where applicable:
 146-26              (1)  student performance on state adopted assessment
 146-27  instruments;
  147-1              (2)  attendance;
  147-2              (3)  dropout rate;
  147-3              (4)  student performance on college admissions tests;
  147-4              (5)  student/teacher ratios; and
  147-5              (6)  administrative and instructional costs per
  147-6  student.
  147-7        (c)  The commissioner of education shall adopt rules for
  147-8  requiring dissemination of campus report cards annually to the
  147-9  parent of or person standing in parental relation to each student
 147-10  at the campus.  On written request, the school district shall
 147-11  provide a copy of a campus report card to any other party.
 147-12        Sec. 35.044.  USES OF PERFORMANCE REPORT.  The information
 147-13  required to be reported under Section 35.042 shall be:
 147-14              (1)  the subject of public hearings or meetings
 147-15  required under Sections 21.930, 21.931, and 35.042;
 147-16              (2)  a primary consideration in district and campus
 147-17  planning; and
 147-18              (3)  a primary consideration of:
 147-19                    (A)  the State Board of Education in the
 147-20  evaluation of the performance of the commissioner of education;
 147-21                    (B)  the commissioner of education in the
 147-22  evaluation of the performance of the directors of the regional
 147-23  education service centers;
 147-24                    (C)  the board of trustees of a school district
 147-25  in the evaluation of the performance of the superintendent of the
 147-26  district; and
 147-27                    (D)  the superintendent in the evaluation of the
  148-1  performance of the district's campus principals.
  148-2                  SUBCHAPTER D.  ACCREDITATION STATUS
  148-3        Sec. 35.061.  ACCREDITATION REQUIRED.  Each school district
  148-4  must be accredited by the Central Education Agency.
  148-5        Sec. 35.062.  ACCREDITATION STANDARDS.  (a)  The State Board
  148-6  of Education shall adopt rules for the accreditation of school
  148-7  districts.  The rules shall include criteria to evaluate the
  148-8  performance of school districts and to assign to districts that are
  148-9  accredited and that have a performance in one of the categories
 148-10  described below an additional performance rating as follows:
 148-11              (1)  exemplary (meets or exceeds state exemplary
 148-12  standards);
 148-13              (2)  recognized (meets or exceeds required improvement
 148-14  and within 10 percent of state exemplary standards); or
 148-15              (3)  accredited warned (below the state clearly
 148-16  unacceptable performance standard and does not meet required
 148-17  improvement).
 148-18        (b)  The academic excellence indicators adopted under
 148-19  Sections 35.041(b)(1) through (6) shall be the main consideration
 148-20  of the Central Education Agency in the rating of the district under
 148-21  this section.  Additional criteria in the accreditation rules may
 148-22  include consideration of:
 148-23              (1)  goals and objectives of the district;
 148-24              (2)  compliance with statutory requirements and
 148-25  requirements imposed by rule of the State Board of Education under
 148-26  statutory authority;
 148-27              (3)  the relation between the academic excellence
  149-1  indicators adopted by the State Board of Education under Section
  149-2  35.041 and the campus performance objectives established under
  149-3  Section 21.7532, including the manner in which the campus
  149-4  performance objectives were established and the progress of the
  149-5  campus in meeting the objectives;
  149-6              (4)  the quality of learning on each of the district's
  149-7  campuses based on indicators including scores on achievement tests;
  149-8              (5)  the quality of the district's appraisal of teacher
  149-9  performance and of administrator performance;
 149-10              (6)  the effectiveness of the district's principals as
 149-11  instructional leaders;
 149-12              (7)  the effectiveness of the district's campuses on
 149-13  the basis of the most current criteria identified by research on
 149-14  effective schools;
 149-15              (8)  the fulfillment of curriculum requirements;
 149-16              (9)  the effectiveness of the district's programs in
 149-17  special education based on the Central Education Agency's most
 149-18  recent compliance review of the district and programs for special
 149-19  populations;
 149-20              (10)  the effectiveness of district and campus staff
 149-21  development programs;
 149-22              (11)  the effective use of technology to enhance
 149-23  student achievement;
 149-24              (12)  the effectiveness of the district's remedial and
 149-25  support programs under Section 21.557 for students at risk of
 149-26  dropping out of school;
 149-27              (13)  the effectiveness of the district's dropout
  150-1  prevention and recovery programs;
  150-2              (14)  efficient allocation of available resources;
  150-3              (15)  the presence and quality of comprehensive and
  150-4  developmental guidance and counseling programs on campuses;
  150-5              (16)  the quality and effectiveness of the district's
  150-6  vocational education program; and
  150-7              (17)  the effectiveness of the board of trustees in
  150-8  governing the district.
  150-9        (c)  The Central Education Agency shall evaluate against
 150-10  state standards and shall report the performance of each campus in
 150-11  a district on the basis of the campus's performance on the
 150-12  indicators adopted under Sections 35.041(b)(1) through (6).
 150-13        Sec. 35.063.  DETERMINING ACCREDITATION STATUS.  (a)  The
 150-14  Central Education Agency shall annually review the performance of
 150-15  each district and campus on the indicators adopted under Sections
 150-16  35.041(b)(1) through (6) and determine if a change in the
 150-17  accreditation status of the district is warranted.
 150-18        (b)  Each annual review shall include an analysis of the
 150-19  indicators under Sections 35.041(b)(1) through (6) to determine
 150-20  district and campus performance in relation to:
 150-21              (1)  standards established for each indicator;
 150-22              (2)  required improvement as defined under Section
 150-23  35.041(c); and
 150-24              (3)  comparable improvement as defined by Section
 150-25  35.041(c).
 150-26        (c)  A district's accreditation rating may be raised or
 150-27  lowered based on the district's performance or may be lowered based
  151-1  on the unacceptable performance of one or more campuses in the
  151-2  district.
  151-3        (d)  In compliance with Section 21.925, the State Board of
  151-4  Education shall make optimum use of the agency's public education
  151-5  information management system to minimize the written reporting
  151-6  requirements of school districts.
  151-7        (e)  Beginning not later than the 1993-1994 school year, the
  151-8  commissioner of education shall notify a district that is rated
  151-9  accredited warned and the performance of the district or a campus
 151-10  in the district is below each standard under Subsection (b) and
 151-11  shall require the district to notify property owners and parents in
 151-12  the district of the lowered accreditation rating and its
 151-13  implication.
 151-14        Sec. 35.064.  ON-SITE INVESTIGATIONS.  (a)  The commissioner
 151-15  of education may direct the Central Education Agency to conduct
 151-16  on-site investigations at any time and may raise or lower the
 151-17  accreditation rating as a result of the investigation.
 151-18        (b)  The commissioner of education shall determine the
 151-19  frequency of on-site investigations by the Central Education Agency
 151-20  according to annual comprehensive analyses of student performance
 151-21  and equity in relation to the academic excellence indicators
 151-22  adopted under Section 35.041.
 151-23        (c)  In making an on-site accreditation investigation, the
 151-24  investigators shall obtain information from administrators,
 151-25  teachers, and parents of students enrolled in the district.  The
 151-26  investigation may not be closed until information is obtained from
 151-27  each of those sources.  The State Board of Education shall adopt
  152-1  rules for:
  152-2              (1)  obtaining information from parents and using that
  152-3  information in the investigator's report; and
  152-4              (2)  obtaining information from teachers in a manner
  152-5  that prevents a campus or district from screening the information.
  152-6        (d)  The Central Education Agency shall give written notice
  152-7  to the superintendent and the board of trustees of any impending
  152-8  investigation of the district's accreditation.
  152-9        (e)  If an annual review indicates low performance on one or
 152-10  more of the indicators under Sections 35.041(b)(1) through (6) of
 152-11  one or more campuses in a district, the Central Education Agency
 152-12  may conduct an on-site evaluation of those campuses only.
 152-13        (f)  The investigators shall report orally and in writing to
 152-14  the board of trustees of the district and, as appropriate, to
 152-15  campus administrators and shall make recommendations concerning any
 152-16  necessary improvements or sources of aid such as regional education
 152-17  service centers.
 152-18        Sec. 35.065.  SPECIAL ACCREDITATION INVESTIGATIONS.  (a)  The
 152-19  commissioner of education shall authorize special accreditation
 152-20  investigations to be conducted under the following circumstances:
 152-21              (1)  when excessive numbers of absences of students
 152-22  eligible to be tested on state assessment instruments are
 152-23  determined;
 152-24              (2)  when excessive numbers of allowable exemptions
 152-25  from the required state assessment are determined;
 152-26              (3)  in response to complaints submitted to the Central
 152-27  Education Agency with respect to any of the following:
  153-1                    (A)  alleged violations of civil rights or other
  153-2  requirements imposed on the state by federal law or court order; or
  153-3                    (B)  alleged violations of the accreditation
  153-4  criteria related to effective governance operations; or
  153-5              (4)  in response to established compliance reviews of
  153-6  the district's financial accounting practices and state and federal
  153-7  program requirements.
  153-8        (b)  Based on the results of a special accreditation
  153-9  investigation, the commissioner of education may lower the
 153-10  district's accreditation rating and may take appropriate action
 153-11  under Subchapter G.
 153-12        Sec. 35.066.  AGENCY ASSISTANCE.  The Central Education
 153-13  Agency shall provide assistance to districts which have been found
 153-14  to have difficulty meeting accreditation standards.
 153-15               SUBCHAPTER E.  SUCCESSFUL SCHOOLS AWARDS
 153-16        Sec. 35.081.  CREATION OF SYSTEM.  The Texas Successful
 153-17  Schools Awards System is created to recognize and reward those
 153-18  schools and school districts that demonstrate progress or success
 153-19  in achieving the education goals of the state.
 153-20        Sec. 35.082.  TYPES OF AWARDS.  (a)  The governor may present
 153-21  a financial award to the schools or districts that the commissioner
 153-22  of education determines have demonstrated the highest levels of
 153-23  sustained success or the greatest improvement in achieving the
 153-24  education goals.  For each student in average daily attendance,
 153-25  each of those schools or districts is entitled to an amount set for
 153-26  the award for which the school or district is selected by the
 153-27  commissioner of education, subject to any limitation set by the
  154-1  commissioner on the total amount that may be awarded to a school or
  154-2  district.
  154-3        (b)  The governor may present proclamations or certificates
  154-4  to additional schools and districts determined to have met or
  154-5  exceeded the education goals.
  154-6        (c)  The commissioner of education may establish additional
  154-7  categories of awards and award amounts for a school or district
  154-8  determined to be successful under Subsection (a) or (b) that are
  154-9  contingent on the school's or district's involvement with paired,
 154-10  lower-performing schools.
 154-11        Sec. 35.083.  AWARDS.  (a)  The criteria which the
 154-12  commissioner of education shall use to select successful schools
 154-13  and districts shall be related to the goals in Section 35.001 and
 154-14  shall include consideration of performance on the academic
 154-15  excellence indicators adopted under Section 35.041.  For purposes
 154-16  of selecting schools and districts under Section 35.082(a), each
 154-17  school's performance shall be compared to state standards and to
 154-18  its previous performance.
 154-19        (b)  The commissioner of education shall select annually
 154-20  schools and districts qualified to receive successful school awards
 154-21  for their performance and report the selections to the governor and
 154-22  the State Board of Education.
 154-23        (c)  The Central Education Agency shall notify each school
 154-24  district of the manner in which the district or a school in the
 154-25  district may qualify for a successful school award.
 154-26        Sec. 35.084.  USE OF AWARDS.  (a)  In determining the use of
 154-27  a monetary award received under this subchapter, a school or
  155-1  district shall give priority to academic enhancement purposes.  The
  155-2  award may not be used for any purpose related to athletics, and it
  155-3  may not be used to substitute for or replace funds already in the
  155-4  regular budget for a school or district.
  155-5        (b)  The school committee established under Section 21.931
  155-6  shall determine the use of the funds awarded to a school under this
  155-7  subchapter.  The professional staff, as that term is used in
  155-8  Section 21.930, shall determine the use of the funds awarded to the
  155-9  school district under this subchapter.
 155-10        Sec. 35.085.  FUNDING.  The award system may be funded by
 155-11  donations, grants, or legislative appropriations.  The commissioner
 155-12  of education may solicit and receive grants and donations for the
 155-13  purpose of making awards under this subchapter.  A small portion of
 155-14  the award funds may be used by the commissioner of education to pay
 155-15  for the costs associated with sponsoring a ceremony to recognize or
 155-16  present awards to schools or districts under this subchapter.  The
 155-17  donations, grants, or legislative appropriations shall be accounted
 155-18  for and distributed by the Central Education Agency.  The awards
 155-19  are subject to audit requirements established by the State Board of
 155-20  Education.
 155-21        Sec. 35.086.  CONFIDENTIALITY.  All information and reports
 155-22  received by the commissioner of education under this subchapter
 155-23  from schools or school districts deemed confidential under the open
 155-24  records law, Chapter 424, Acts of the 63rd Legislature, Regular
 155-25  Session, 1973 (Article 6252-17a, Vernon's Texas Civil Statutes),
 155-26  are confidential and may not be disclosed in any public or private
 155-27  proceeding.
  156-1                   SUBCHAPTER F.  ADDITIONAL REWARDS
  156-2        Sec. 35.101.  RECOGNITION AND REWARDS.  The State Board of
  156-3  Education shall develop a plan for recognizing and rewarding school
  156-4  districts and campuses that are rated as exemplary or recognized
  156-5  and for developing a network for sharing proven successful
  156-6  practices statewide and regionally.
  156-7        Sec. 35.102.  EXCELLENCE EXEMPTIONS.  (a)  Except as provided
  156-8  by Subsection (b), a school campus or district that is rated
  156-9  exemplary is exempt from requirements and prohibitions imposed
 156-10  under this code including rules adopted under this code.
 156-11        (b)  A school campus or district is not exempt under this
 156-12  section from a prohibition on conduct that constitutes a criminal
 156-13  offense.  A school campus or district is not exempt under this
 156-14  section from requirements imposed by federal law or rule including
 156-15  requirements for special education or bilingual education programs.
 156-16  Except as provided by Subsection (d), a school campus or district
 156-17  is not exempt under this section from a requirement or prohibition
 156-18  imposed by state law or rule relating to:
 156-19              (1)  curriculum essential elements, excluding the
 156-20  methodology used by a teacher and the time spent by a teacher or a
 156-21  student on a particular task or subject;
 156-22              (2)  restrictions on extracurricular activities;
 156-23              (3)  health and safety;
 156-24              (4)  competitive bidding;
 156-25              (5)  textbook selection;
 156-26              (6)  elementary school class size limits;
 156-27              (7)  removal of a disruptive student from the
  157-1  classroom;
  157-2              (8)  suspension or expulsion of a student;
  157-3              (9)  at-risk programs;
  157-4              (10)  prekindergarten programs;
  157-5              (11)  minimum graduation requirements; or
  157-6              (12)  educational employee and educational support
  157-7  employee rights and benefits.  In this section, "educational
  157-8  support employee" means a full-time or part-time school employee
  157-9  not defined as a "teacher" by Section 21.201(1).
 157-10        (c)  The Central Education Agency shall monitor and evaluate
 157-11  deregulation of a school campus or district under this section and
 157-12  Section 11.273 and report annually on the effect of deregulation on
 157-13  student achievement to the State Board of Education, the
 157-14  Legislative Education Board, the governor, the lieutenant governor,
 157-15  the speaker of the house of representatives, and the legislature.
 157-16  The report must include a list of the exemptions utilized and a
 157-17  review of the effectiveness of the waivers and exemptions programs.
 157-18        (d)  The commissioner of education may exempt an exemplary
 157-19  school campus from elementary class size limits under this section
 157-20  if the school campus submits to the commissioner a written plan
 157-21  showing steps that will be taken to ensure that the exemption from
 157-22  the class size limits will not be harmful to the academic
 157-23  achievement of the students on the school campus.  The commissioner
 157-24  shall review achievement levels annually.  The exemption remains in
 157-25  effect until the commissioner determines that achievement levels of
 157-26  the campus have declined.
 157-27                SUBCHAPTER G.  ACCREDITATION SANCTIONS
  158-1        Sec. 35.121.  SANCTIONS.  (a)  If a district does not satisfy
  158-2  the accreditation criteria, the commissioner of education shall
  158-3  take any of the following actions, listed in order of severity, to
  158-4  the extent the commissioner determines necessary:
  158-5              (1)  issue public notice of the deficiency to the board
  158-6  of trustees;
  158-7              (2)  order a hearing conducted by the board of trustees
  158-8  of the district for the purpose of notifying the public of the
  158-9  unacceptable performance, the improvements in performance expected
 158-10  by the Central Education Agency, and the sanctions that may be
 158-11  imposed under this section if the performance does not improve;
 158-12              (3)  order the preparation of a student achievement
 158-13  improvement plan that addresses each academic excellence indicator
 158-14  for which the district's performance is unacceptable, the
 158-15  submission of the plan to the commissioner of education for
 158-16  approval, and implementation of the plan;
 158-17              (4)  order a hearing to be held before the commissioner
 158-18  of education or the commissioner's designee at which the president
 158-19  of the board of trustees of the district and the superintendent
 158-20  shall appear and explain the district's low performance, lack of
 158-21  improvement, and plans for improvement;
 158-22              (5)  arrange an on-site investigation of the district;
 158-23              (6)  appoint an agency monitor to participate in and
 158-24  report to the agency on the activities of the board of trustees or
 158-25  the superintendent;
 158-26              (7)  appoint a master to oversee the operations of the
 158-27  district;
  159-1              (8)  appoint a management team to direct the operations
  159-2  of the district in areas of unacceptable performance;
  159-3              (9)  if a district has been rated as accredited warned
  159-4  for a period of one year or more, appoint a board of managers
  159-5  composed of residents of the district to exercise the powers and
  159-6  duties of the board of trustees; or
  159-7              (10)  if a district has been rated as accredited warned
  159-8  for a period of two years or more, annex the district to one or
  159-9  more adjoining districts under Section 19.027.
 159-10        (b)  If a campus performance is below any standard under
 159-11  Section 35.063(b), the campus is considered a low-performing campus
 159-12  and the commissioner of education may take any of the following
 159-13  actions, listed in order of severity, to the extent the
 159-14  commissioner determines necessary:
 159-15              (1)  issue public notice of the deficiency to the board
 159-16  of trustees;
 159-17              (2)  order a hearing conducted by the board of trustees
 159-18  at the campus for the purpose of notifying the public of the
 159-19  unacceptable performance, the improvements in performance expected
 159-20  by the Central Education Agency, and the sanctions that may be
 159-21  imposed under this section if the performance does not improve
 159-22  within a designated period of time and of soliciting public comment
 159-23  on the initial steps being taken to improve performance;
 159-24              (3)  order the preparation of a student achievement
 159-25  improvement plan that addresses each academic excellence indicator
 159-26  for which the campus's performance is unacceptable, the submission
 159-27  of the plan to the commissioner of education for approval, and
  160-1  implementation of the plan;
  160-2              (4)  order a hearing to be held before the commissioner
  160-3  of education or the commissioner's designee at which the president
  160-4  of the board of trustees, the superintendent, and the campus
  160-5  principal shall appear and explain the campus's low performance,
  160-6  lack of improvement, and plans for improvement;
  160-7              (5)  appoint a special campus intervention team to:
  160-8                    (A)  conduct a comprehensive on-site evaluation
  160-9  of each low-performing campus to determine the cause for the
 160-10  campus's low performance and lack of progress;
 160-11                    (B)  recommend actions, including reallocation of
 160-12  resources and technical assistance, changes in school procedures or
 160-13  operations, staff development for instructional and administrative
 160-14  staff, intervention for individual administrators or teachers,
 160-15  waivers from state statute or rule, or other actions the team
 160-16  considers appropriate;
 160-17                    (C)  assist in the development of a campus plan
 160-18  for student achievement; and
 160-19                    (D)  assist the commissioner of education in
 160-20  monitoring the progress of the campus in implementing the campus
 160-21  plan for improvement of student achievement;
 160-22              (6)  if a campus has been a low-performing campus for a
 160-23  period of one year or more, appoint a board of managers composed of
 160-24  residents of the district to exercise the powers and duties of the
 160-25  board of trustees of the district in relation to the campus; or
 160-26              (7)  if a campus has been a low-performing campus for a
 160-27  period of two years or more, order closure of the school program on
  161-1  the campus.
  161-2        (c)  The commissioner of education shall review annually the
  161-3  performance of a district or campus subject to this section to
  161-4  determine the appropriate actions to be implemented under this
  161-5  section.  The commissioner must review at least annually the
  161-6  performance of a district for which the accreditation rating has
  161-7  been lowered due to unacceptable student performance and may not
  161-8  raise the rating until the district has demonstrated improved
  161-9  student performance.  If the review reveals a lack of improvement,
 161-10  the commissioner shall increase the level of state intervention and
 161-11  sanction unless the commissioner finds good cause for maintaining
 161-12  the current status.  At the beginning of the 1993-1994 school year,
 161-13  the Central Education Agency shall rate any district with clearly
 161-14  unacceptable performance as accredited warned and the commissioner
 161-15  of education shall begin appropriate intervention in the district.
 161-16  The commissioner of education shall report annually to the
 161-17  governor, lieutenant governor, and the speaker of the house of
 161-18  representatives on districts or campuses subject to this section
 161-19  the actions taken by the commissioner to improve student
 161-20  performance and the results of those actions.
 161-21        (d)  The costs of providing a monitor, master, management
 161-22  team, or special campus intervention team shall be paid by the
 161-23  district.
 161-24        (e)  A master or management team appointed to oversee the
 161-25  operations of the district shall prepare a plan for the
 161-26  implementation of action under Subsection (a)(9) or (10) and may:
 161-27              (1)  direct an action to be taken by the principal of a
  162-1  campus, the superintendent of the district, or the board of
  162-2  trustees of the district; or
  162-3              (2)  approve or disapprove any action of the principal
  162-4  of a campus, the superintendent of the district, or the board of
  162-5  trustees of the district.
  162-6        (f)  A special campus intervention team appointed under this
  162-7  section may consist of teachers, principals, other educational
  162-8  professionals, and superintendents recognized for excellence in
  162-9  their roles and appointed by the commissioner of education to serve
 162-10  as members of a team.
 162-11        (g)  If the commissioner of education appoints a board of
 162-12  managers to govern a district, the powers of the board of trustees
 162-13  of the district are suspended for the period of the appointment and
 162-14  the commissioner shall appoint a district superintendent.
 162-15  Notwithstanding any other provision of this code, the board of
 162-16  managers may amend the budget of the district.
 162-17        (h)  If the commissioner of education appoints a board of
 162-18  managers to govern a campus, the powers of the board of trustees of
 162-19  the district in relation to the campus are suspended for the period
 162-20  of the appointment and the commissioner shall appoint a campus
 162-21  principal.  Notwithstanding any other provision of this code, the
 162-22  board of managers may submit to the commissioner for approval
 162-23  amendments to the budget of the district for the benefit of the
 162-24  campus.  If the commissioner approves the amendments, the board of
 162-25  trustees of the district shall adopt the amendments.
 162-26        SECTION 7.02.  Section 11.273, Education Code, is amended by
 162-27  amending Subsection (e) and adding Subsection (h) to read as
  163-1  follows:
  163-2        (e)  A school campus or district may not receive an exemption
  163-3  or waiver under this section from requirements imposed by federal
  163-4  law or rule, including requirements for special education or
  163-5  bilingual education programs.  Except as provided by Subsection
  163-6  (h), a <A> school campus or district may not receive an exemption
  163-7  or waiver under this section from a requirement or prohibition
  163-8  imposed by state law or rule relating to:
  163-9              (1)  curriculum essential elements, excluding the
 163-10  methodology used by a teacher and the time spent by a teacher or a
 163-11  student on a particular task or subject;
 163-12              (2)  restrictions on extracurricular activities;
 163-13              (3)  health and safety;
 163-14              (4)  competitive bidding;
 163-15              (5)  elementary school class size limits, except as
 163-16  provided by Section 16.054;
 163-17              (6)  minimum graduation requirements;
 163-18              (7)  removal of a disruptive student from the
 163-19  classroom;
 163-20              (8)  suspension or expulsion of a student;
 163-21              (9)  at risk programs;
 163-22              (10)  prekindergarten programs;
 163-23              (11)  educational employee and educational support
 163-24  employee rights and benefits.  In this section, "educational
 163-25  support employee" means a full-time or part-time school employee
 163-26  not defined as a "teacher" by Section 21.201(1) of this code; or
 163-27              (12)  special education or bilingual education
  164-1  programs.
  164-2        (h)  The commissioner of education may grant to a school
  164-3  district or campus that is required to develop and implement a
  164-4  student achievement improvement plan under Section 35.121 an
  164-5  exemption or waiver from any law or rule other than a prohibition
  164-6  on conduct that constitutes a criminal offense or a requirement
  164-7  imposed by federal law or rule.  A school campus or district may
  164-8  not receive an exemption or waiver under this section from a
  164-9  requirement or prohibition imposed by state law or rule relating to
 164-10  educational employee and educational support employee rights and
 164-11  benefits.  In this section, "educational support employee" means a
 164-12  full-time or part-time school employee not defined as a "teacher"
 164-13  by Section 21.201(1).
 164-14        SECTION 7.03.  Section 11.62, Education Code, is amended to
 164-15  read as follows:
 164-16        Sec. 11.62.  Organization and Regulations.  (a)  The State
 164-17  Department of Education shall be organized into divisions and
 164-18  subdivisions established by the commissioner of education <subject
 164-19  to the approval of the State Board of Education>.
 164-20        (b)  Directors of the major divisions of the State Department
 164-21  of Education, and all of its other employees, shall be appointed by
 164-22  the commissioner of education <pursuant to general rules and
 164-23  regulations adopted by the State Board of Education>.
 164-24        (c)  The rules and regulations pertaining to personnel
 164-25  administration shall include a comprehensive classification plan,
 164-26  including an appropriate title for each position, a description of
 164-27  duties and responsibilities, and the minimum requirements of
  165-1  training, experience, and other qualifications essential for
  165-2  adequate performance of the work.  These rules and regulations
  165-3  shall likewise provide <tenure safeguards,> leave and retirement
  165-4  provisions<,> and establish hearing procedures.
  165-5        SECTION 7.04.  Section 13.351, Education Code, is amended by
  165-6  adding Subsection (c) to read as follows:
  165-7        (c)  The duties of the superintendent include:
  165-8              (1)  assuming administrative responsibility and
  165-9  leadership for the planning, operation, supervision, and evaluation
 165-10  of the education programs, services, and facilities of the district
 165-11  and for the annual performance appraisal of the district's staff;
 165-12              (2)  assuming administrative authority and
 165-13  responsibility for the assignment and evaluation of all personnel
 165-14  of the district other than the superintendent and making
 165-15  recommendations regarding the selection, promotion, and dismissal
 165-16  of such personnel, except as provided by Section 13.352 of this
 165-17  code;
 165-18              (3)  managing the day-to-day operations of the district
 165-19  as its chief executive officer;
 165-20              (4)  as directed by local board  policy, causing to be
 165-21  prepared a budget covering all estimated revenue and proposed
 165-22  expenditures of the district for the next succeeding fiscal year,
 165-23  according to generally accepted accounting principles, rules
 165-24  adopted by the State Board of Education, and adopted policies of
 165-25  the board of trustees;
 165-26              (5)  preparing recommendations for policies to be
 165-27  adopted by the board of trustees and overseeing the implementation
  166-1  of adopted policies;
  166-2              (6)  developing or causing to be developed appropriate
  166-3  administrative regulations to implement policies established by the
  166-4  board of trustees;
  166-5              (7)  providing leadership for the attainment of student
  166-6  performance in the district based on the indicators adopted under
  166-7  Section 35.041 and other indicators as may be adopted by the State
  166-8  Board of Education or the district's board of trustees; and
  166-9              (8)  performing any other duties assigned by action of
 166-10  the board of trustees.
 166-11        SECTION 7.05.  Subsections (a), (b), and (d), Section 19.027,
 166-12  Education Code, are amended to read as follows:
 166-13        (a)  The commissioner of education by order may annex to one
 166-14  or more adjoining districts a school district that has been rated
 166-15  as accredited warned <academically unaccredited> for a period of
 166-16  two years.
 166-17        (b)  The governing board of a district to which territory of
 166-18  an accredited warned <academically unaccredited> district is
 166-19  annexed is the governing board for the new district.
 166-20        (d)  Title to the real property of the accredited warned
 166-21  <academically unaccredited> district vests in the district to which
 166-22  the property is annexed.  Each district to which territory is
 166-23  annexed assumes and is liable for any portion of the accredited
 166-24  warned <academically unaccredited> district's indebtedness that is
 166-25  allocated to the receiving district under Section 19.004 of this
 166-26  code.
 166-27        SECTION 7.06.  Subsection (f), Section 21.557, Education
  167-1  Code, is amended to read as follows:
  167-2        (f)  For the purposes of this section, "student at risk of
  167-3  dropping out of school" includes:
  167-4              (1)  each student in grade levels seven through 12 who
  167-5  is under 21 years of age and who:
  167-6                    (A)  was not advanced from one grade level to the
  167-7  next two or more school years;
  167-8                    (B)  has mathematics or reading skills that are
  167-9  two or more years below grade level;
 167-10                    (C)  did not maintain an average equivalent to 70
 167-11  on a scale of 100 in two or more courses during a semester, or is
 167-12  not maintaining such an average in two or more courses in the
 167-13  current semester, and is not expected to graduate within four years
 167-14  of the date the student begins ninth grade; or
 167-15                    (D)  did not perform satisfactorily on an
 167-16  assessment instrument administered under Subchapter B, Chapter 35
 167-17  <this subchapter in the seventh, ninth, or twelfth grade>;
 167-18              (2)  each student in prekindergarten through grade
 167-19  level six who:
 167-20                    (A)  did not perform satisfactorily on a
 167-21  readiness test or assessment instrument administered at the
 167-22  beginning of the school year;
 167-23                    (B)  did not perform satisfactorily on an
 167-24  assessment instrument administered under Subchapter B, Chapter 35
 167-25  <this subchapter in the third or fifth grade>;
 167-26                    (C)  is a student of limited English proficiency,
 167-27  as defined by Section 21.452 of this code;
  168-1                    (D)  is sexually, physically, or psychologically
  168-2  abused;
  168-3                    (E)  engages in conduct described by Section
  168-4  51.03(a), Family Code; or
  168-5                    (F)  is otherwise identified as at risk under
  168-6  rules adopted by the State Board of Education; and
  168-7              (3)  each nonhandicapped student who resides in a
  168-8  residential placement facility in a district in which the student's
  168-9  parent or legal guardian does not reside, including a detention
 168-10  facility, substance abuse treatment facility, emergency shelter,
 168-11  psychiatric hospital, halfway house, or foster family group home.
 168-12        SECTION 7.07.  Section 21.930, Education Code, is amended by
 168-13  adding Subsection (h) to read as follows:
 168-14        (h)  The professional staff elected under this section shall
 168-15  hold at least one public meeting per year.  The required meeting
 168-16  shall be held after receipt of the annual district performance
 168-17  report from the Central Education Agency for the purpose of
 168-18  discussing the performance of the district and the district
 168-19  performance objectives.
 168-20        SECTION 7.08.  Section 21.931, Education Code, is amended by
 168-21  adding Subsection (g) to read as follows:
 168-22        (g)  Each school committee shall hold at least one public
 168-23  meeting per year.  The required meeting shall be held after receipt
 168-24  of the annual campus rating from the Central Education Agency for
 168-25  the purpose of discussing the performance of the campus and the
 168-26  campus performance objectives.
 168-27        SECTION 7.09.  Subsection (a), Section 23.33, Education Code,
  169-1  is amended to read as follows:
  169-2        (a)  The State Board of Education shall adopt statewide
  169-3  standards for the duties of a school board member as criteria for
  169-4  board member training <appoint an advisory committee to develop
  169-5  statewide standards on the duties of a school board member.  The
  169-6  committee shall consist of at least 15 persons knowledgeable in the
  169-7  management of the public schools of the state, and no less than
  169-8  five members of the committee shall consist of individuals
  169-9  currently serving as locally elected school board members>.
 169-10        SECTION 7.10.  The Educational Economic Policy Center,
 169-11  established under Section 34.051, Education Code, shall monitor and
 169-12  evaluate the implementation of the accountability system set forth
 169-13  in this Act and provide annual progress reports to the governor,
 169-14  the Legislative Education Board, and the commissioner of education.
 169-15        SECTION 7.11.  (a)  The Select Committee to Conduct a
 169-16  Comprehensive Review of the Central Education Agency and efficient
 169-17  use of educational resources in the state is established.
 169-18        (b)  The committee is composed of:
 169-19              (1)  the chairs of the Senate Education Committee and
 169-20  the House Public Education Committee;
 169-21              (2)  two members of the senate, appointed by the
 169-22  lieutenant governor;
 169-23              (3)  two members of the house of representatives,
 169-24  appointed by the speaker of the house of representatives;
 169-25              (4)  one teacher, one principal, and one school
 169-26  district superintendent, appointed jointly by the lieutenant
 169-27  governor and the speaker of the house of representatives; and
  170-1              (5)  four representatives of businesses and
  170-2  communities, at least two of whom have one or more children
  170-3  attending the public schools, appointed jointly by the lieutenant
  170-4  governor and the speaker of the house of representatives.
  170-5        (c)  The chairs of the Senate Education Committee and the
  170-6  House Public Education Committee serve as co-chairs of the
  170-7  committee.
  170-8        (d)  The committee shall conduct an in-depth and
  170-9  comprehensive review of the mission, organization, size, and
 170-10  effectiveness of the Central Education Agency.  In conducting its
 170-11  review, the committee shall study the mission, organizational
 170-12  structure, and practices of similar agencies in other states.  The
 170-13  review must include:
 170-14              (1)  a study of the agency's success in addressing
 170-15  national education goals adopted by the president of the United
 170-16  States and the nation's 50 governors and the goals for public
 170-17  education provided by Section 35.001, Education Code, as added by
 170-18  this Act;
 170-19              (2)  a study of the agency's organizational mission,
 170-20  structure, size, and effectiveness;
 170-21              (3)  a study of the number and effectiveness of
 170-22  committees created under the auspices of the agency or the State
 170-23  Board of Education;
 170-24              (4)  identification of those functions that should be
 170-25  performed by the state and those that should be performed
 170-26  regionally through regional service centers;
 170-27              (5)  a study of the adequacy, validity, and timeliness
  171-1  of data collected and published by the Public Education Information
  171-2  Management System (PEIMS) as provided by Section 16.007, Education
  171-3  Code;
  171-4              (6)  a study of the adequacy and effectiveness of
  171-5  programs designed for special populations of students and for
  171-6  teacher and administrator staff development;
  171-7              (7)  a study of the adequacy and effectiveness of
  171-8  assistance provided the site-based management teams established
  171-9  under Section 21.931, Education Code; and
 171-10              (8)  a study of the efficient use of state resources,
 171-11  school district structure, and opportunities for shared cost in
 171-12  order to determine the best management and use of state resources
 171-13  and to assist school districts in determining optimum educational
 171-14  opportunities.
 171-15        (e)  The commissioner of education shall ensure that the
 171-16  committee has access to any documentation and agency personnel the
 171-17  committee requests.
 171-18        (f)  Meetings of the committee shall be held at the call of
 171-19  the co-chairs.
 171-20        (g)  A majority of the members of the committee constitutes a
 171-21  quorum.
 171-22        (h)  Not later than December 1, 1994, the committee shall
 171-23  issue a report stating the findings of its review under Subsection
 171-24  (d) of this section, including any recommendations for statutory
 171-25  changes.  The report must be approved by a majority of the
 171-26  membership of the committee.  Any dissenting member may attach a
 171-27  statement to the report.
  172-1        (i)  Staff members of the Senate Education Committee and the
  172-2  House Public Education Committee shall serve as the staff of the
  172-3  committee.
  172-4        (j)  The Legislative Budget Board, comptroller, state
  172-5  auditor, and other state agencies, officials, and personnel shall
  172-6  cooperate with the committee in carrying out its duties under this
  172-7  section.
  172-8        (k)  Each member of the committee is entitled to
  172-9  reimbursement for actual and necessary expenses incurred in
 172-10  performing committee duties.  Each legislative member is entitled
 172-11  to reimbursement from the appropriate fund of the member's
 172-12  respective house.  Each public member is entitled to reimbursement
 172-13  from funds appropriated to the committee.
 172-14        (l)  The committee may coordinate its study with any other
 172-15  legislative study.
 172-16        (m)  The committee expires January 10, 1995.
 172-17        SECTION 7.12.  The following provisions of the Education Code
 172-18  are repealed:
 172-19              (1)  Sections 2.01, 11.272, 21.258, 21.551 through
 172-20  21.556, 21.558 through 21.561, 21.751 through 21.7531, and 21.754
 172-21  through 21.758; and
 172-22              (2)  Subchapter A, Chapter 34.
 172-23        SECTION 7.13.  Section 21.9211, Education Code, is amended by
 172-24  amending Subsection (e) and adding Subsections (g) and (h) to read
 172-25  as follows:
 172-26        (e)  The advisory council shall review the rules of the
 172-27  University Interscholastic League and shall make recommendations
  173-1  relating to the rules to the governor, the legislature, the
  173-2  Legislative Council of the University Interscholastic League, and
  173-3  <to> the State Board of Education.  The advisory council shall
  173-4  submit its initial report not later than January 1, 1995 <September
  173-5  1, 1990>.
  173-6        (g)  The advisory council shall study:
  173-7              (1)  University Interscholastic League policy with
  173-8  respect to the eligibility of students to participate in programs;
  173-9              (2)  geographic distribution of University
 173-10  Interscholastic League resources and programs; and
 173-11              (3)  gender equity.
 173-12        (h)  No actions of the University Interscholastic League
 173-13  relating to the provision of additional programs of school
 173-14  districts shall be taken pending submission of a final report by
 173-15  the advisory council.
 173-16        SECTION 7.14.  This article takes effect immediately and
 173-17  applies beginning with the 1993-1994 school year.
 173-18                              ARTICLE 8
 173-19        SECTION 8.01.  Subchapter Z, Chapter 21, Education Code, is
 173-20  amended by adding Section 21.938 to read as follows:
 173-21        Sec. 21.938.  DISTRICT AND CAMPUS PLANNING PROCESS.  (a)  The
 173-22  board of trustees of each school district shall develop a district
 173-23  and campus planning process, utilizing the procedures established
 173-24  in Sections 35.041, 21.930, and 21.931, under which the board shall
 173-25  adopt a report detailing a plan for the district and plans for each
 173-26  campus.
 173-27        (b)  Each district's report shall include a current analysis
  174-1  of student performance based on the academic excellence indicators
  174-2  adopted under Section 35.041, campus performance objectives
  174-3  established under Section 21.7532, and other measures of student
  174-4  performance the board determines and shall include provisions for:
  174-5              (1)  addressing the needs of district students for
  174-6  special programs, such as suicide prevention or dyslexia treatment
  174-7  programs;
  174-8              (2)  requiring the principal of each campus, with the
  174-9  assistance of parents and guardians of the school's students, other
 174-10  adults in the attendance area, and the professional staff of the
 174-11  school, to establish a campus plan consistent with Sections 21.7532
 174-12  and 21.931;
 174-13              (3)  dropout reduction;
 174-14              (4)  integration of technology in instructional and
 174-15  administrative programs;
 174-16              (5)  discipline management;
 174-17              (6)  staff development for professional staff of the
 174-18  district;
 174-19              (7)  career education to assist students in developing
 174-20  the knowledge, skills, and competencies necessary for a broad range
 174-21  of career opportunities;
 174-22              (8)  compensatory and remedial education as required by
 174-23  Section 21.557; and
 174-24              (9)  other information the board considers useful.
 174-25        (c)  In the district and campus plan or in another manner
 174-26  permitted by federal law, the board shall address any federal
 174-27  planning requirements.
  175-1        (d)  A district report is not filed with the Central
  175-2  Education Agency, but the district must make the report available
  175-3  to the agency on request.
  175-4        SECTION 8.02.  Subsection (f), Section 12.65, Education Code,
  175-5  is amended to read as follows:
  175-6        (f)  Covers of all books shall be removed before reissue, and
  175-7  the pupils to whom the books are issued shall replace the covers
  175-8  <under direction of the teacher>.
  175-9        SECTION 8.03.  Subsection (a), Section 12.67, Education Code,
 175-10  is amended to read as follows:
 175-11        (a)  If a school district employee enters into a business
 175-12  relationship, employment contract, or other transaction with a
 175-13  textbook publisher doing business, or with the potential of doing
 175-14  business, with the state or a school district in the state and the
 175-15  transaction directly or indirectly results in remuneration to the
 175-16  employee, the transaction must be registered with the
 175-17  superintendent of the school district <and with the commissioner of
 175-18  education>.
 175-19        SECTION 8.04.  Section 21.601, Education Code, is amended to
 175-20  read as follows:
 175-21        Sec. 21.601.  Establishment.  <(a)>  Each school district may
 175-22  establish a school-community guidance center designed to locate and
 175-23  assist children with problems which interfere with their education,
 175-24  including but not limited to juvenile offenders and children with
 175-25  severe behavioral problems or character disorders.  The centers
 175-26  shall coordinate the efforts of school district personnel, local
 175-27  police departments, truant officers, and probation officers in
  176-1  working with students, dropouts, and parents in identifying and
  176-2  correcting factors which adversely affect the education of the
  176-3  children.
  176-4        <(b)  With the approval of the commissioner of education,
  176-5  school districts with an average daily attendance of less than
  176-6  6,000 students may cooperate with other districts for the purpose
  176-7  of establishing a common center.>
  176-8        SECTION 8.05.  Section 21.701, Education Code, is amended to
  176-9  read as follows:
 176-10        Sec. 21.701.  Adoption and Approval of Programs.  Each school
 176-11  district shall adopt and implement a discipline management program
 176-12  to be included in the district plan under Section 21.938.  <Before
 176-13  implementation, the proposed program must be submitted to the
 176-14  Central Education Agency, which shall review and approve or reject
 176-15  the program.>
 176-16        SECTION 8.06.  Section 21.702, Education Code, is amended to
 176-17  read as follows:
 176-18        Sec. 21.702.  Content of Approved Programs.  A <To be
 176-19  approved, a> discipline management program must:
 176-20              (1)  encourage the commitment, cooperation, and
 176-21  involvement of school district administrators, teachers, parents,
 176-22  and students in the development of the program;
 176-23              (2)  encourage the use of the regional education
 176-24  service center to assist in developing the program and providing
 176-25  training to teachers and administrators;
 176-26              (3)  require the designation of a person in each school
 176-27  with special training in discipline management to implement and
  177-1  assess the program in that school and to identify and refer
  177-2  appropriate students to school-community guidance programs;
  177-3              (4)  require the development of a student code of
  177-4  conduct that clearly describes the district's expectations with
  177-5  respect to student conduct, including provisions similar to the
  177-6  Attorney General's Proposed Voluntary Student Code of Conduct of
  177-7  1980, and specifies the consequences of violating the code;
  177-8              (5)  specifically outline the responsibilities of
  177-9  teachers, administrators, parents, and students in the discipline
 177-10  management program; and
 177-11              (6)  make parental involvement an integral part of the
 177-12  discipline management program, requiring:
 177-13                    (A)  one or more conferences during each school
 177-14  year between a teacher and the parents of a student if the student
 177-15  is not maintaining passing grades or achieving the expected level
 177-16  of performance or presents some other problem to the teacher or in
 177-17  any other case the teacher considers necessary;
 177-18                    (B)  parent training workshops for home
 177-19  reinforcement of study skills and specific curriculum objectives
 177-20  conducted for parents who want to participate and based on interest
 177-21  indicated by parents in the community; and
 177-22                    (C)  a written statement signed by each parent
 177-23  that the parent understands and consents to the responsibilities
 177-24  outlined in the discipline management program.
 177-25        SECTION 8.07.  Section 21.926, Education Code, is amended to
 177-26  read as follows:
 177-27        Sec. 21.926.  Information to be Posted.  (a)  For the benefit
  178-1  of parents of school age children, each school in a district shall
  178-2  post in a conspicuous location in the main administration building
  178-3  accessible to the general public<:>
  178-4              <(1)  a map of the school's attendance area; and>
  178-5              <(2)  a notice that includes:>
  178-6                    <(A)  the aggregate results by grade level for
  178-7  the state and for each campus in the district of assessment
  178-8  instruments administered under Section 21.551 of this code for each
  178-9  of the preceding three school years and, for each high school, the
 178-10  aggregate results by grade level of the most recent administration
 178-11  of any norm-referenced assessment instrument, including the
 178-12  Scholastic Aptitude Test and American College Testing Program
 178-13  assessment instruments;>
 178-14                    <(B)  the total enrollment at each campus in the
 178-15  district for each of the four most recent school years;>
 178-16                    <(C)  the ratio of classroom teachers to students
 178-17  at each campus in the district;>
 178-18                    <(D)  a statement that copies of the notice and
 178-19  of a map of the school's attendance area are available in the
 178-20  school's main office; and>
 178-21                    <(E)>  a statement that the district's annual
 178-22  performance report is available in the school library.
 178-23        (b)  <The assessment instrument results posted under
 178-24  Subsection (a)(2)(A) of this section must be presented in the form
 178-25  of appropriate, nontechnical interpretations in terms
 178-26  understandable to the general public.>
 178-27        <(c)  The board of trustees of the district may prescribe the
  179-1  format of the notice required by Subsection (a)(2) of this section.>
  179-2        <(d)>  Each school shall have available in its main office
  179-3  copies of:
  179-4              (1)  the notice <and map> required to be posted under
  179-5  Subsection (a) of this section; and
  179-6              (2)  a map of the school's attendance area.
  179-7        (c) <(e)>  Each school shall have available in its library a
  179-8  copy of:
  179-9              (1)  the annual performance report for the district
 179-10  required by Section 21.258 of this code; and
 179-11              (2)  the district and campus plan required by Section
 179-12  21.938.
 179-13        <(f)  Each district shall have available in its
 179-14  administration building the information required to be posted by
 179-15  Subsection (a) of this section for each school in the district.>
 179-16        SECTION 8.08.  The following sections of the Education Code
 179-17  are repealed:  11.2051, 12.67(c), 14.065, 21.034, 21.1111(d),
 179-18  21.253, 21.301(o), 21.557(d), 21.654, and 21.909(d).
 179-19        SECTION 8.09.  Subsection (c), Section 13.037, Education
 179-20  Code, is amended to read as follows:
 179-21        (c)  The Central Education Agency shall collect and maintain
 179-22  <teacher performance data from each district's implementation of
 179-23  the statewide appraisal system and shall collect and maintain> data
 179-24  from state-mandated tests required for entry to and exit from
 179-25  teacher education programs.  The Central Education Agency shall
 179-26  provide probationary teacher performance data on a regular basis to
 179-27  the respective institutions of higher education and to the Texas
  180-1  Higher Education Coordinating Board<, Texas College and University
  180-2  System>.
  180-3        SECTION 8.10.  Section 13.103, Education Code, is amended to
  180-4  read as follows:
  180-5        Sec. 13.103.  Probationary Contract:  Termination.  The board
  180-6  of trustees of any school district may terminate the employment of
  180-7  any teacher holding a probationary contract at the end of the
  180-8  contract period, if in their judgment the best interests of the
  180-9  school district will be served thereby; provided, that notice of
 180-10  intention to terminate the employment shall be given by the board
 180-11  of trustees to the teacher not later than the 60th day before the
 180-12  last day of instruction required <on or before April 1, preceding
 180-13  the end of the employment term fixed> in the contract.  In event of
 180-14  failure to give such notice of intention to terminate within the
 180-15  time above specified, the board of trustees shall thereby elect to
 180-16  employ such probationary teacher in the same capacity, and under
 180-17  probationary contract status for the succeeding school year if the
 180-18  teacher has been employed by such district for less than three
 180-19  successive school years, or in a continuing contract position if
 180-20  such teacher has been employed during three consecutive school
 180-21  years.
 180-22        SECTION 8.11.  The heading to Subchapter E, Chapter 13,
 180-23  Education Code, is amended to read as follows:
 180-24           SUBCHAPTER E.  TEACHER APPRAISAL <CAREER LADDER>
 180-25        SECTION 8.12.  Subsections (a), (c), and (f), Section 13.302,
 180-26  Education Code, are amended to read as follows:
 180-27        (a)  The State Board of Education shall adopt an appraisal
  181-1  process and criteria on which to appraise the performance of
  181-2  teachers <for career ladder level assignment purposes>.  The
  181-3  criteria must be based on observable, job-related behavior,
  181-4  including teachers' implementation of discipline management
  181-5  procedures.
  181-6        (c)  An <In developing the appraisal process, the board shall
  181-7  provide for using not fewer than two appraisers for each appraisal.
  181-8  One> appraiser must be the teacher's supervisor or <and one must
  181-9  be> a person <as> approved by the board of trustees.  An appraiser
 181-10  who is a classroom teacher may not appraise the performance of
 181-11  another classroom teacher who teaches at the same school campus at
 181-12  which the appraiser teaches, unless it is impractical because of
 181-13  the number of campuses or unless the appraiser is the chairman of a
 181-14  department or grade level whose job description includes classroom
 181-15  observation responsibilities.  <In a district that uses not more
 181-16  than two appraisers per appraisal, the board shall provide for an
 181-17  appraisal by a third appraiser from another campus if the
 181-18  difference between the appraisals is such that the teacher's
 181-19  performance cannot be accurately evaluated.>  The board also shall
 181-20  provide for a uniform training program and uniform certification
 181-21  standards for appraisers to be used throughout the state.  The
 181-22  board shall include teacher self-appraisal in the process.
 181-23        (f)  Appraisal for teachers must be detailed by category of
 181-24  professional skill and characteristic and must provide for separate
 181-25  ratings per category.  The appraisal process shall guarantee a
 181-26  conference between the teacher and the appraiser.  The <appraisers,
 181-27  and the> conference shall be diagnostic and prescriptive with
  182-1  regard to remediation <as> needed in overall <summary of>
  182-2  performance and by category <and identify the required performance
  182-3  for advancement to the next level>.
  182-4        SECTION 8.13.  Section 13.303, Education Code, is amended by
  182-5  amending Subsections (a) and (c) and adding Subsection (d) to read
  182-6  as follows:
  182-7        (a)  In appraising teachers, each <Each> school district
  182-8  shall use:
  182-9              (1)  the appraisal process and performance criteria
 182-10  developed by the board; or
 182-11              (2)  an appraisal process and performance criteria
 182-12  developed by the school district utilizing the procedures
 182-13  established in Sections 21.930 and 21.931 and approved by the
 182-14  commissioner of education <in appraising teachers for career ladder
 182-15  level assignment purposes>.
 182-16        (c)  Appraisal shall be done at least <not fewer than:>
 182-17              <(1)  two times during each school year for
 182-18  probationary teachers and for teachers on level one of the career
 182-19  ladder; and>
 182-20              <(2)>  once during each school year.  The district
 182-21  shall maintain a written copy of the evaluation of each teacher's
 182-22  performance in the teacher's personnel file.   Each teacher is
 182-23  entitled to receive a written copy of the evaluation.  After
 182-24  receiving a written copy of the evaluation, a teacher is entitled
 182-25  to a second appraisal by a different appraiser or to submit a
 182-26  written rebuttal to the evaluation to be attached to the evaluation
 182-27  in the teacher's personnel file.  The evaluation and any rebuttal
  183-1  may be given to another school district at which the teacher has
  183-2  applied for employment at the request of that district <for
  183-3  teachers on levels two, three, and four of the career ladder whose
  183-4  performance, on the most recent appraisal, was evaluated as
  183-5  exceeding expectations or clearly outstanding.  The performance of
  183-6  a teacher who, because of unusual circumstances, is appraised only
  183-7  once in a particular year shall be evaluated for career ladder
  183-8  purposes on the basis of a single appraisal>.
  183-9        (d)  A teacher may be given advance notice of the date or
 183-10  time of an appraisal.
 183-11        SECTION 8.14.  Section 13.304, Education Code, is amended to
 183-12  read as follows:
 183-13        Sec. 13.304.  PERFORMANCE CATEGORIES.  In appraisals of
 183-14  teacher performance <for career ladder level assignment purposes>,
 183-15  performance <shall be evaluated in the same manner and under the
 183-16  same criteria regardless of level.  Performance> shall be evaluated
 183-17  as:
 183-18              (1)  unsatisfactory (if the teacher's performance is
 183-19  clearly not acceptable in some major area);
 183-20              (2)  below expectations (if the teacher's performance
 183-21  needs improvement in some major areas);
 183-22              (3)  satisfactory (if the teacher's performance meets
 183-23  expectations);
 183-24              (4)  exceeding expectations (if the teacher's
 183-25  performance excels in some major areas); or
 183-26              (5)  clearly outstanding.
 183-27        SECTION 8.15.  Subchapter B, Chapter 16, Education Code, is
  184-1  amended by adding Section 16.058 to read as follows:
  184-2        Sec. 16.058.  SALARY OF TEACHER FORMERLY ON CAREER LADDER.
  184-3  (a)  Notwithstanding any provision to the contrary, a teacher who
  184-4  was assigned to a career ladder level under Subchapter E, Chapter
  184-5  13, on August 31, 1993, is entitled to receive for the 1993-1994
  184-6  school year and each school year thereafter, as long as the teacher
  184-7  is employed by the same district, a minimum salary equal to the
  184-8  teacher's base salary plus the teacher's career ladder supplement
  184-9  in the 1992-1993 school year.
 184-10        (b)  In this section, "base salary" means the minimum  salary
 184-11  prescribed by Sections 16.055 and 16.056 plus any amount in excess
 184-12  of the minimum salary that a school district pays the teacher.
 184-13        SECTION 8.16.  Subsection (e), Section 21.112, Education
 184-14  Code, is amended to read as follows:
 184-15        (e)  All new, additional, and continuing vocational programs
 184-16  shall offer competency-based instruction.  Instruction must be
 184-17  based on the essential elements approved by the State Board of
 184-18  Education.  <A competency profile must be maintained for each
 184-19  student enrolled.>
 184-20        SECTION 8.17.  Subsection (a), Section 21.204, Education
 184-21  Code, is amended to read as follows:
 184-22        (a)  In the event the board of trustees receives a
 184-23  recommendation for nonrenewal, the board, after consideration of
 184-24  the written evaluations required by Section 21.202 of this
 184-25  subchapter and the reasons for the recommendation, shall, in its
 184-26  sole discretion, either reject the recommendation or shall give the
 184-27  teacher written notice of the proposed nonrenewal not later than
  185-1  the 60th day before the last day of instruction required <on or
  185-2  before April 1 preceding the end of the employment term fixed> in
  185-3  the contract.
  185-4        SECTION 8.18.  Subsection (b), Section 822.201, Government
  185-5  Code, is amended to read as follows:
  185-6        (b)  "Salary and wages" as used in Subsection (a) means:
  185-7              (1)  normal periodic payments of money for service the
  185-8  right to which accrues on a regular basis in proportion to the
  185-9  service performed;
 185-10              (2)  <career ladder payments of money authorized by
 185-11  Section 16.057, Education Code;>
 185-12              <(3)>  amounts by which the member's salary is reduced
 185-13  under a salary reduction agreement authorized by Article 6252-3d,
 185-14  Revised Statutes; and
 185-15              (3) <(4)>  amounts that would otherwise qualify as
 185-16  salary and wages under Subdivision (1) <or (2)> but are not
 185-17  received directly by the member pursuant to a good faith, voluntary
 185-18  written salary reduction agreement in order to finance payments to
 185-19  a deferred compensation or tax sheltered annuity program
 185-20  specifically authorized by state law or to finance benefit options
 185-21  under a cafeteria plan qualifying under Section 125 of the Internal
 185-22  Revenue Code of 1986 (26 U.S.C. Section 125), if:
 185-23                    (A)  the program or benefit options are made
 185-24  available to all employees of the employer; and
 185-25                    (B)  the benefit options in the cafeteria plan
 185-26  are limited to one or more options that provide deferred
 185-27  compensation, group health and disability insurance, group term
  186-1  life insurance, dependent care assistance programs, or group legal
  186-2  services plans.
  186-3        SECTION 8.19.  Subsection (b), Section 825.405, Government
  186-4  Code, is amended to read as follows:
  186-5        (b)  For purposes of this section, the statutory minimum
  186-6  salary is the salary provided by Sections <Section> 16.056 and
  186-7  16.058, Education Code, multiplied by the cost of education
  186-8  adjustment applicable under Section 16.102, Education Code, to the
  186-9  district in which the member is employed<, plus any career ladder
 186-10  supplement under Section 16.057, Education Code>.
 186-11        SECTION 8.20.  The following sections of the Education Code
 186-12  are repealed:  12.61(a), 13.301, 13.305, 13.306(b), 13.307-13.317,
 186-13  13.319-13.323, and 21.251(c).
 186-14        SECTION 8.21.  Subsections (a) and (e), Section 13.353,
 186-15  Education Code, are amended to read as follows:
 186-16        (a)  Each school district shall offer in-service training in
 186-17  management skills for district administrators, including principals
 186-18  and superintendents.  The program may be one <programs must be
 186-19  consistent with standards or models> adopted by the State Board of
 186-20  Education or one approved by the board of trustees and shall
 186-21  include management training in site-based decision making
 186-22  established under Section 21.931 <must be flexible and draw from a
 186-23  variety of offerings both in and out of state>.
 186-24        (e)  From funds appropriated for that purpose, the Central
 186-25  Education Agency may <shall> allocate an amount each year for the
 186-26  identification, adaptation, development, and evaluation of
 186-27  professional development programs and materials; training of
  187-1  trainers; and technical assistance in the development of general
  187-2  management and leadership development skills, including skills
  187-3  necessary to implement Sections 21.7532, 21.930, and 21.931 of this
  187-4  code.  The State Board of Education may designate special projects
  187-5  and development activities to be carried out with such funds.  <The
  187-6  manner in which such funds are utilized shall be reported annually
  187-7  to the commissioner of education.>
  187-8        SECTION 8.22.  Subsection (d), Section 13.354, Education
  187-9  Code, is amended to read as follows:
 187-10        (d)  Each school district may <shall> use the appraisal
 187-11  process and performance criteria developed by the board in
 187-12  evaluating the performance of an administrator.
 187-13        SECTION 8.23.  The following sections of the Education Code
 187-14  are repealed:  12.64 and 13.354(c).
 187-15        SECTION 8.24.  Subsection (d), Section 21.165, Education
 187-16  Code, is amended to read as follows:
 187-17        (d)  If the requisition is for the purchase of a motor
 187-18  vehicle, bus, bus body, or bus chassis, it must be approved by
 187-19  either the county school board when funded under law or the board
 187-20  of trustees of a school district <and by the commissioner of
 187-21  education>.
 187-22        SECTION 8.25.  Subsections (c) through (i), Section 21.174,
 187-23  Education Code, are amended to read as follows:
 187-24        (c)(1)  Except as provided in Subsections (e) and (f)
 187-25  <Subdivision (4) of this subsection>, no county or local district
 187-26  school board may purchase or lease or authorize the purchase or
 187-27  lease after September 1, 1993 <1991>, of any motor vehicle used for
  188-1  transporting school children for any county or local school
  188-2  district operating more than 50 such vehicles unless that vehicle
  188-3  is capable of using compressed natural gas or other alternative
  188-4  fuels which result in comparably lower emissions of oxides of
  188-5  nitrogen, volatile organic compounds, carbon monoxide, or
  188-6  particulates or any combination thereof.
  188-7              (2)  A county or local district school board may
  188-8  acquire or be provided equipment or refueling facilities necessary
  188-9  to operate such vehicles using compressed natural gas or other
 188-10  alternative fuels:
 188-11                    (A)  by purchase or lease as authorized by law;
 188-12                    (B)  by gift or loan of the equipment or
 188-13  facilities; or
 188-14                    (C)  by gift or loan of the equipment or
 188-15  facilities or other arrangement pursuant to a service contract for
 188-16  the supply of compressed natural gas or other alternative fuels.
 188-17              (3)  If such equipment or facilities are donated,
 188-18  loaned, or provided through other arrangement with the supplier of
 188-19  compressed natural gas or other alternative fuels, the supplier
 188-20  shall be entitled to recoup its actual cost of donating, loaning,
 188-21  or providing the equipment or facilities through its fuel charges
 188-22  under the supply contract.
 188-23              <(4)  The State Purchasing and General Services
 188-24  Commission shall waive the requirements of this section for any
 188-25  school district if the county or local district school board
 188-26  certifies to the commission that:>
 188-27                    <(A)  the county's or district's vehicles will be
  189-1  operating primarily in an area in which neither the county or
  189-2  district nor a supplier has or can reasonably be expected to
  189-3  establish a central refueling station for compressed natural gas or
  189-4  other alternative fuels; or>
  189-5                    <(B)  the county or district is unable to acquire
  189-6  or be provided equipment or refueling facilities necessary to
  189-7  operate vehicles using compressed natural gas or other alternative
  189-8  fuels pursuant to Subdivision (2) of this subsection at a projected
  189-9  cost that is reasonably expected to result in no greater net costs
 189-10  than the continued use of traditional gasoline or diesel fuels
 189-11  measured over the expected useful life of the equipment or
 189-12  facilities supplied.>
 189-13              <(5)  Written notice of the date, hour, place, and
 189-14  subject of any county or local district school board meeting called
 189-15  for the purpose of considering certification under Subdivision (4)
 189-16  of this subsection shall be furnished to the secretary of state,
 189-17  who shall then post the notice on a bulletin board to be located in
 189-18  the main office of the secretary of state at a place convenient to
 189-19  the public and shall have a notice posted on a bulletin board
 189-20  located at a place convenient to the public in its central
 189-21  administrative office.  Notice of the meeting must be posted for at
 189-22  least 60 days preceding the scheduled time of the meeting.>
 189-23        (d)(1)  Any county or local district school board which
 189-24  operates a fleet of more than 50 motor vehicles used for
 189-25  transporting school children shall ensure that <achieve the
 189-26  following percentages of such vehicles capable of using compressed
 189-27  natural gas or other alternative fuels by the times specified>:
  190-1                    (A)  not less than 50 percent of its fleet is
  190-2  capable of using compressed natural gas or other alternative fuel
  190-3  not later than the earlier of September 1, 1997, or four years from
  190-4  the date the fleet exceeds 50 vehicles <the percentage shall be
  190-5  equal to or greater than 30 percent of the number of such vehicles
  190-6  operated by September 1, 1994>; and
  190-7                    (B)  not less than 90 percent of its fleet is
  190-8  capable of using compressed natural gas or other alternative fuel
  190-9  not later than September 1, 2001 <equal to or greater than 50
 190-10  percent of the number of such vehicles operated by September 1,
 190-11  1996>.
 190-12              (2)  A school district may meet the fleet composition
 190-13  requirements by converting new or existing vehicles to alternative
 190-14  fuel, by replacing existing vehicle engines with alternative fuel
 190-15  engines, or by purchasing new alternative fuel vehicles <The Texas
 190-16  Air Control Board  must review this alternative fuel use program by
 190-17  December 31, 1996, and, if the Texas Air Control Board determines
 190-18  that the program has been effective in reducing total annual
 190-19  emissions from vehicles in the area, county and local district
 190-20  school boards operating fleets of more than 50 motor vehicles used
 190-21  for transporting school children shall achieve a percentage of such
 190-22  vehicles capable of using compressed natural gas or other
 190-23  alternative fuels equal to or greater than 90 percent of the number
 190-24  of fleet vehicles operated by September 1, 1998, and thereafter>.
 190-25              (3)  School districts that achieve a fleet composition
 190-26  of 30 percent or more alternative fuel vehicles by September 1,
 190-27  1994, have priority to receive appropriated or other funds
  191-1  available for the purpose of fleet conversion to alternative fuel
  191-2  <County and local district school boards shall submit to the
  191-3  Central Education Agency annual reports summarizing their progress
  191-4  in achieving these percentage requirements and increasing use of
  191-5  compressed natural gas or other alternative fuels, and the Central
  191-6  Education Agency shall submit the summaries to the Texas Air
  191-7  Control Board by September 1 of each year.>
  191-8              <(4)  County and local district school boards, the
  191-9  Central Education Agency, and the State Purchasing and General
 191-10  Services Commission shall support the Texas Air Control Board in
 191-11  collecting reasonable information needed to determine air quality
 191-12  benefits from use of alternative fuels in affected districts>.
 191-13        (e)(1)  The requirements of Subsections (c) and (d) do not
 191-14  apply to any school district if the county or local district school
 191-15  board acts in accordance with Paragraph (A), (B), or (C).
 191-16                    (A)  The requirements do not apply if the county
 191-17  or local district school board solicits, but does not receive, any
 191-18  bids for service contracts for the supply of compressed natural gas
 191-19  or other alternative fuels that are at or below the net projected
 191-20  costs of continued use of traditional gasoline or diesel fuels
 191-21  measured over the expected useful life of the equipment or
 191-22  facilities supplied.  The bid solicitation provision does not
 191-23  require any board to solicit a bid for service contracts more than
 191-24  once during any fiscal year.
 191-25                    (B)  The requirements do not apply if the county
 191-26  or local district school board solicits, but does not receive, any
 191-27  bids for conversion of engines or vehicles or replacement of
  192-1  engines or vehicles to compressed natural gas or other alternative
  192-2  fuels that are at or below the net projected costs of continued use
  192-3  of traditional gasoline or diesel fuels measured over the expected
  192-4  useful life of the engine or vehicle.
  192-5                    (C)  The requirements do not apply if the county
  192-6  or local district school board solicits, but does not receive, any
  192-7  bids for a contract that provides for conversion or replacement, or
  192-8  both, of engines or vehicles, or both, to compressed natural gas or
  192-9  other alternative fuel and for the supply of compressed natural gas
 192-10  or other alternative fuels that is at or below the net projected
 192-11  costs of continued use of traditional gasoline or diesel fuels
 192-12  measured over the expected useful life of the equipment,
 192-13  facilities, vehicles, and engines.  The bid solicitation provision
 192-14  does not require a board to solicit such a bid more than once
 192-15  during any three-year period.
 192-16              (2)  A person making a bid or submitting a proposal in
 192-17  response to a solicitation made in compliance with this subsection
 192-18  has the burden to provide the school board the information on total
 192-19  cost-effectiveness of the bid, including, if applicable, the cost
 192-20  of new warranties for vehicle or engine conversion and insurance
 192-21  costs.
 192-22              (3)  In determining total cost-effectiveness under this
 192-23  subsection, a board may consider both the short-term and long-term
 192-24  costs to the district and other objective factors that may affect
 192-25  the capacity of the district to use compressed natural gas or other
 192-26  alternative fuels.  The board shall consider availability of state
 192-27  and federal funds for conversion and replacement purposes <County
  193-1  and local district school boards, the Central Education Agency, and
  193-2  the State Purchasing and General Services Commission in the
  193-3  development of the compressed natural gas or other alternative fuel
  193-4  use program should work with district fleet operators, vehicle
  193-5  manufacturers and converters, fuel distributors, and others to
  193-6  delineate the vehicles to be covered, taking into consideration
  193-7  range, specialty uses, fuel availability, vehicle manufacturing and
  193-8  conversion capability, safety, resale values, and other relevant
  193-9  factors.  Districts may also meet the percentage requirements of
 193-10  this section through the conversion of existing vehicles, in
 193-11  accordance with federal and state requirements and applicable
 193-12  safety laws, to use the alternative fuels>.
 193-13        (f)  The requirements of Subsections (c) and (d) do not
 193-14  require any district to convert any vehicle put into service on or
 193-15  before September 1, 1993, to alternative fuel.  The requirements of
 193-16  Subsections (c) and (d) do not apply until September 1, 1995, for
 193-17  any district that applied for a two-year life-cycle cost benefit
 193-18  waiver prior  to September 1, 1993, if that waiver is subsequently
 193-19  granted.  The General Services Commission shall expedite the
 193-20  process on all those waiver applications.  <The State Purchasing
 193-21  and General Services Commission may reduce any percentage specified
 193-22  or waive the requirements of Subsection (d) of this section for any
 193-23  county or district on receipt of certification supported by
 193-24  evidence acceptable to the commission that:>
 193-25              <(1)  the county or district's vehicles will be
 193-26  operating primarily in an area in which neither the county,
 193-27  district, nor a supplier has or can reasonably be expected to
  194-1  establish a central refueling station for compressed natural gas or
  194-2  other alternative fuels; or>
  194-3              <(2)  the county or district is unable to acquire or be
  194-4  provided equipment or refueling facilities necessary to operate
  194-5  vehicles using compressed natural gas or other alternative fuels
  194-6  pursuant to Subdivision (2) of Subsection (c) of this section at a
  194-7  projected cost that is reasonably expected to result in no greater
  194-8  net costs than the continued use of traditional gasoline or diesel
  194-9  fuels measured over the expected useful life of the equipment or
 194-10  facilities supplied.>
 194-11        (g)  County and local district school boards and the <State
 194-12  Purchasing and> General Services Commission in purchasing, leasing,
 194-13  maintaining, or converting vehicles for compressed natural gas or
 194-14  other alternative fuels use shall comply with all applicable safety
 194-15  standards promulgated by the United States Department of
 194-16  Transportation and the Railroad Commission of Texas or their
 194-17  successor agencies.  The requirements of Subsections (c) and (d) do
 194-18  not require a district to convert any vehicle or engine to
 194-19  compressed natural gas or other alternative fuel if the conversion
 194-20  does not meet fuel system integrity standards as designed and
 194-21  tested by the National Highway Transportation Safety Administration
 194-22  or the Railroad Commission of Texas.
 194-23        (h)  In this section, a vehicle is considered to be capable
 194-24  of using compressed natural gas or other alternative fuels if the
 194-25  vehicle is capable of using compressed natural gas or other
 194-26  alternative fuels either in its original equipment engine or in an
 194-27  engine that has been converted to use compressed natural gas or
  195-1  other alternative fuels after September 1, 1991<, unless the time
  195-2  for compliance is extended pursuant to Subsection (i) of this
  195-3  section>.
  195-4        <(i)  The General Services Commission may extend the date by
  195-5  which a vehicle powered by a traditional gasoline or diesel engine
  195-6  shall be capable of using compressed natural gas or other
  195-7  alternative fuels as required under this section for one or more
  195-8  periods of 90 days, but not beyond September 1, 1993, if it finds a
  195-9  lack of ability to acquire such vehicles with original alternative
 195-10  fuels equipment, to acquire such vehicles which are able to be
 195-11  converted, or to convert such vehicles to use compressed natural
 195-12  gas or other alternative fuels.>
 195-13        SECTION 8.26.  Subsection (a), Section 19.051, Education
 195-14  Code, is amended to read as follows:
 195-15        (a)  By the procedure described in this subchapter, any of
 195-16  the following groups of school districts may consolidate into a
 195-17  single school district:
 195-18              (1)  two or more <contiguous> independent school
 195-19  districts;
 195-20              (2)  two or more <contiguous> common school districts;
 195-21  or
 195-22              (3)  one or more independent school districts and one
 195-23  or more common school districts <constituting as a whole one
 195-24  continuous territory>.
 195-25        SECTION 8.27.  Section 21.041, Education Code, as amended by
 195-26  Section 1, Chapter 353, Acts of the 71st Legislature, Regular
 195-27  Session, 1989, and Section 2.12, Chapter 813, Acts of the 71st
  196-1  Legislature, Regular Session, 1989, is reenacted and amended to
  196-2  read as follows:
  196-3        Sec. 21.041.  Absences.  (a)  Except as provided by this
  196-4  section, a student may not be given credit for a class unless the
  196-5  student is in attendance for at least 90 percent of the <80> days
  196-6  the class is offered <during a semester>.
  196-7        (b)  The board of trustees of each school district shall
  196-8  appoint one or more attendance committees to hear petitions for
  196-9  class credit by students who are in attendance fewer than the
 196-10  number of days required under Subsection (a) <80 days during a
 196-11  semester>.  Each board may determine the number of committees
 196-12  needed in the district and the composition of each committee.  The
 196-13  committees may give class credit to a student who is in attendance
 196-14  fewer than the number of days required under Subsection (a) <80
 196-15  days during a semester> because of extenuating circumstances.  Each
 196-16  local school board shall establish guidelines to determine what
 196-17  constitutes extenuating circumstances, subject to rules adopted by
 196-18  the State Board of Education, and shall adopt policies establishing
 196-19  alternative ways for students to make up work or regain credit lost
 196-20  because of absences.  The State Board of Education shall submit its
 196-21  rules adopted under this section to the Legislative Education Board
 196-22  for review to ensure compliance with legislative intent.  A
 196-23  certified public school employee may not be assigned additional
 196-24  instructional duties as a result of this section outside of the
 196-25  regular workday unless the employee is compensated for the duties
 196-26  at a reasonable rate of pay.
 196-27        (c)  A member of an attendance committee is not personally
  197-1  liable for any act or omission arising out of duties as a member of
  197-2  an attendance committee.
  197-3        (d)  If a student is denied credit for a class by an
  197-4  attendance committee, the student may appeal the decision to the
  197-5  board.  The decision of the board may be appealed by trial de novo
  197-6  to the district court of the county in which the school district's
  197-7  central administrative office is located.
  197-8        (e)  This section does not affect the provision of Section
  197-9  21.035(f) of this code regarding a student's excused absence from
 197-10  school to observe religious holy days.
 197-11        SECTION 8.28.  Subsections (a), (b), (e), and (f), Section
 197-12  21.458, Education Code, are amended to read as follows:
 197-13        (a)  Each district that is required to offer a bilingual
 197-14  education or special language program shall offer a voluntary
 197-15  <summer> program for children of limited English proficiency who
 197-16  will be eligible for admission to kindergarten or the first grade
 197-17  at the beginning of the next school year.  A school that operates
 197-18  on a two-semester system shall offer the program during the period
 197-19  school is recessed for the summer.  A school that operates on any
 197-20  other system permitted by this code shall offer 120 hours of
 197-21  instruction on a schedule the board of trustees of the district
 197-22  establishes.
 197-23        (b)  Enrollment in the program is optional with the parent of
 197-24  the child.  In a district that operates on a two-semester system,
 197-25  the <The> program must be offered for one-half day for eight weeks.
 197-26        (e)  The <preschool or summer> programs required or
 197-27  authorized by this section shall not be a substitute for programs
  198-1  required to be provided during the regular school year.
  198-2        (f)  The legislature may appropriate funds from the
  198-3  foundation school program for support of a <the summer> program
  198-4  under Subsection (a) of this section.
  198-5        SECTION 8.29.  Subsection (b), Section 21.3011, Education
  198-6  Code, is amended to read as follows:
  198-7        (b)  A student may be removed from class and expelled without
  198-8  resort to an alternative education program under Section 21.301 of
  198-9  this code if the student, on school property or while attending a
 198-10  school-sponsored or school-related activity on or off of school
 198-11  property:
 198-12              (1)  assaults a teacher or other individual;
 198-13              (2)  sells, gives, or delivers to another person or
 198-14  possesses or uses or is under the influence of:
 198-15                    (A)  marihuana or a controlled substance, as
 198-16  defined by Chapter 481, Health and Safety Code, or by 21 U.S.C.
 198-17  Section 801 et seq.; or
 198-18                    (B)  a dangerous drug, as defined by Chapter 483,
 198-19  Health and Safety Code;
 198-20              (3)  sells, gives, or delivers to another person an
 198-21  alcoholic beverage, as defined by Section 1.04, Alcoholic Beverage
 198-22  Code, or commits a serious act or offense while under the influence
 198-23  of alcohol; or on more than one occasion possesses, uses, or is
 198-24  under the influence of an alcoholic beverage;
 198-25              (4)  possesses a firearm as defined by Section
 198-26  46.01(3), Penal Code, an illegal knife as defined by Section
 198-27  46.01(6), Penal Code, a club as defined by Section 46.01(1), Penal
  199-1  Code, or a weapon listed as a prohibited weapon under Section
  199-2  46.06, Penal Code;
  199-3              (5)  engages in conduct that contains the elements of
  199-4  an offense relating to abusable glue or aerosol paint under
  199-5  Sections 485.031 through 485.035, Health and Safety Code, or
  199-6  relating to volatile chemicals under Chapter 484, Health and Safety
  199-7  Code;
  199-8              (6)  engages in conduct that contains the elements of
  199-9  the offense of arson under Section 28.02, Penal Code; <or>
 199-10              (7)  engages in conduct that contains the elements of
 199-11  the offense of criminal mischief under Section 28.03, Penal Code,
 199-12  if the offense is punishable as a felony under that section; or
 199-13              (8)  engages in conduct that contains the elements of
 199-14  the offense of public lewdness under Section 21.07, Penal Code.
 199-15        SECTION 8.30.  Subsection (a), Section 3, Chapter 424, Acts
 199-16  of the 63rd Legislature, Regular Session, 1973 (Article 6252-17a,
 199-17  Vernon's Texas Civil Statutes), is amended to read as follows:
 199-18        (a)  All information collected, assembled, or maintained by
 199-19  or for governmental bodies, except in those situations where the
 199-20  governmental body does not have either a right of access to or
 199-21  ownership of the information, pursuant to law or ordinance or in
 199-22  connection with the transaction of official business is public
 199-23  information and available to the public during normal business
 199-24  hours of any governmental body, with the following exceptions only:
 199-25              (1)  information deemed confidential by law, either
 199-26  Constitutional, statutory, or by judicial decision;
 199-27              (2)  information in personnel files, the disclosure of
  200-1  which would constitute a clearly unwarranted invasion of personal
  200-2  privacy, and transcripts from institutions of higher education
  200-3  maintained in the personnel files of professional public school
  200-4  employees; provided, however, that nothing in this section shall be
  200-5  construed to exempt from disclosure the degree obtained and the
  200-6  curriculum on such transcripts of professional public school
  200-7  employees, and further provided that all information in personnel
  200-8  files of an individual employee within a governmental body is to be
  200-9  made available to that individual employee or his designated
 200-10  representative as is public information under this Act;
 200-11              (3)  information relating to litigation of a criminal
 200-12  or civil nature and settlement negotiations, to which the state or
 200-13  political subdivision is, or may be, a party, or to which an
 200-14  officer or employee of the state or political subdivision, as a
 200-15  consequence of his office or employment, is or may be a party, that
 200-16  the attorney general or the respective attorneys of the various
 200-17  political subdivisions has determined should be withheld from
 200-18  public inspection;
 200-19              (4)  information which, if released, would give
 200-20  advantage to competitors or bidders;
 200-21              (5)  information pertaining to the location of real or
 200-22  personal property for public purposes prior to public announcement
 200-23  of the project, and information pertaining to appraisals or
 200-24  purchase price of real or personal property for public purposes
 200-25  prior to the formal award of contracts therefor;
 200-26              (6)  drafts and working papers involved in the
 200-27  preparation of proposed legislation;
  201-1              (7)  matters in which the duty of the Attorney General
  201-2  of Texas or an attorney of a political subdivision, to his client,
  201-3  pursuant to the Rules and Canons of Ethics of the State Bar of
  201-4  Texas are prohibited from disclosure, or which by order of a court
  201-5  are prohibited from disclosure;
  201-6              (8)  records of law enforcement agencies and
  201-7  prosecutors that deal with the detection, investigation, and
  201-8  prosecution of crime and the internal records and notations of such
  201-9  law enforcement agencies and prosecutors which are maintained for
 201-10  internal use in matters relating to law enforcement and
 201-11  prosecution;
 201-12              (9)  private correspondence and communications of an
 201-13  elected office holder relating to matters the disclosure of which
 201-14  would constitute an invasion of privacy;
 201-15              (10)  trade secrets and commercial or financial
 201-16  information obtained from a person and privileged or confidential
 201-17  by statute or judicial decision;
 201-18              (11)  inter-agency or intra-agency memorandums or
 201-19  letters which would not be available by law to a party in
 201-20  litigation with the agency;
 201-21              (12)  information contained in or related to
 201-22  examination, operating, or condition reports prepared by, on behalf
 201-23  of, or for the use of an agency responsible for the regulation or
 201-24  supervision of financial institutions, and/or securities, as that
 201-25  term is defined in the Texas Securities Act;
 201-26              (13)  geological and geophysical information and data
 201-27  including maps concerning wells, except information filed in
  202-1  connection with an application or proceeding before any agency or
  202-2  an electric log confidential under Subchapter M, Chapter 91,
  202-3  Natural Resources Code;
  202-4              (14)  student records at educational institutions
  202-5  funded wholly, or in part, by state revenue; but such records shall
  202-6  be made available upon request of educational institution
  202-7  personnel, the student involved, that student's parent, legal
  202-8  guardian, or spouse or a person conducting a child abuse
  202-9  investigation required by Section 34.05, Family Code;
 202-10              (15)  birth and death records maintained by the Bureau
 202-11  of Vital Statistics of the Texas Department of Health, except that:
 202-12                    (A)  a birth record is public information and
 202-13  available to the public on and after the 50th anniversary of the
 202-14  date on which the record is filed with the Bureau of Vital
 202-15  Statistics or local registration official; and
 202-16                    (B)  a death record is public information and
 202-17  available to the public on and after the 25th anniversary of the
 202-18  date on which the record is filed with the Bureau of Vital
 202-19  Statistics or local registration official;
 202-20              (16)  the audit working papers of the State Auditor;
 202-21              (17)  information relating to:
 202-22                    (A)  the home addresses or home telephone numbers
 202-23  of each official or employee or each former official or employee of
 202-24  a governmental body except as otherwise provided by Section 3A of
 202-25  this Act, or of peace officers as defined by Article 2.12, Code of
 202-26  Criminal Procedure, 1965, as amended, or by Section 51.212, Texas
 202-27  Education Code; or
  203-1                    (B)  the home addresses, home telephone numbers,
  203-2  or social security numbers of employees of the Texas Department of
  203-3  Criminal Justice, or the home or employment addresses or telephone
  203-4  numbers or the names or social security numbers of their family
  203-5  members;
  203-6              (18)  information contained on or derived from
  203-7  triplicate prescription forms filed with the Department of Public
  203-8  Safety pursuant to Section 481.075, Health and Safety Code;
  203-9              (19)  photographs that depict a peace officer as
 203-10  defined by Article 2.12, Code of Criminal Procedure, or a security
 203-11  officer commissioned under Section 51.212, Education Code, the
 203-12  release of which would endanger the life or physical safety of the
 203-13  officer unless:
 203-14                    (A)  the officer is under indictment or charged
 203-15  with an offense by information; or
 203-16                    (B)  the officer is a party in a fire or police
 203-17  civil service hearing or a case in arbitration; or
 203-18                    (C)  the photograph is introduced as evidence in
 203-19  a judicial proceeding;
 203-20              (20)  rare books and original manuscripts which were
 203-21  not created or maintained in the conduct of official business of a
 203-22  governmental body and which are held by any private or public
 203-23  archival and manuscript repository for the purposes of historical
 203-24  research;
 203-25              (21)  oral history interviews, personal papers,
 203-26  unpublished letters, and organizational records of nongovernmental
 203-27  entities, which were not created or maintained in the conduct of
  204-1  official business of a governmental body and which are held by any
  204-2  private or public archival and manuscript repository for the
  204-3  purposes of historical research, to the extent that the archival
  204-4  and manuscript repository and the donor of the interviews, papers,
  204-5  letters, and records may agree to limit disclosure of the item;
  204-6              (22)  <curriculum objectives and> test items developed
  204-7  by educational institutions that are funded wholly or in part by
  204-8  state revenue and test items developed by licensing agencies or
  204-9  governmental bodies; and
 204-10              (23)  the names of applicants for the position of chief
 204-11  executive officer of institutions of higher education, except that
 204-12  the governing body of the institution of higher education must give
 204-13  public notice of the name or names of the finalists being
 204-14  considered for the position at least 21 days prior to the meeting
 204-15  at which final action or vote is to be taken on the employment of
 204-16  the individual.
 204-17        SECTION 8.31.  Subsection (a), Section 5, Chapter 173, Acts
 204-18  of the 47th Legislature, Regular Session, 1941 (Article 6687b,
 204-19  Vernon's Texas Civil Statutes), is amended to read as follows:
 204-20        (a)  No person who is under the age of eighteen (18) years
 204-21  shall drive any motor vehicle while in use as a school bus for the
 204-22  transportation of pupils to or from school.  A person who is
 204-23  eighteen (18) years of age or older may not operate a vehicle as a
 204-24  school bus until he has been properly licensed to operate a school
 204-25  bus.  It shall be unlawful for any person to be employed to drive a
 204-26  motor vehicle while in use as a school bus for the transportation
 204-27  of pupils who has not undergone a physical examination which
  205-1  reveals his physical and mental capabilities to safely operate a
  205-2  school bus.  Such physical examinations shall be conducted annually
  205-3  for each driver.  A pre-employment driver's license check shall
  205-4  have been made with the Texas Department of Public Safety prior to
  205-5  the employment and the person's driving record must be acceptable
  205-6  according to standards developed jointly by the State Board of
  205-7  Education and the Texas Department of Public Safety.  Effective at
  205-8  such date and under provisions as may be determined by the State
  205-9  Board of Education, the driver of a school bus shall have in his
 205-10  possession a certificate stating he is enrolled in, or has
 205-11  completed, a driver training course in school bus safety education
 205-12  that has been approved jointly by the State Board of Education and
 205-13  the Texas Department of Public Safety.  The bus driving certificate
 205-14  shall remain valid for a period of three years.  This subsection
 205-15  does not affect the right of any otherwise qualified person with a
 205-16  hearing disability to be licensed, certified, and employed as a bus
 205-17  driver for vehicles used to transport hearing impaired students or
 205-18  persons.  This subsection does not apply to the operation of a
 205-19  vehicle owned by a public institution of higher education to
 205-20  transport students of a school district that operates within that
 205-21  institution if:
 205-22              (1)  the person operating the vehicle is approved by
 205-23  the institution to operate the vehicle; and
 205-24              (2)  the transportation is for a field trip or other
 205-25  special event.
 205-26        SECTION 8.32.  The following sections of the Education Code
 205-27  are repealed:  21.008, 21.132 through 21.134, 23.993, 23.994, and
  206-1  23.999.
  206-2        SECTION 8.33.  Effective September 1, 1995, the following
  206-3  provisions of the Education Code are repealed:
  206-4              (1)  Title 1; and
  206-5              (2)  Title 2, except Chapters 16, 20, and 36.
  206-6        SECTION 8.34.  Not later than June 1, 1994, the commissioner
  206-7  of education shall submit to the legislature a proposed revision of
  206-8  Education Code provisions repealed by Section 8.33 of this article.
  206-9        SECTION 8.35.  Effective September 1, 1995, the Central
 206-10  Education Agency is abolished.
 206-11        SECTION 8.36.  This article takes effect September 1, 1993.
 206-12                               ARTICLE 9
 206-13        SECTION 9.01.  (a)  Except as otherwise provided by this Act,
 206-14  this Act takes effect immediately.
 206-15        (b)  This Act applies to taxes imposed on or after January 1,
 206-16  1993.
 206-17        SECTION 9.02.  The importance of this legislation and the
 206-18  crowded condition of the calendars in both houses create an
 206-19  emergency and an imperative public necessity that the
 206-20  constitutional rule requiring bills to be read on three several
 206-21  days in each house be suspended, and this rule is hereby suspended,
 206-22  and that this Act take effect and be in force according to its
 206-23  terms, and it is so enacted.