HB 1157

relating to the use of average enrollment for purposes of the public
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 48.005, Education Code, is amended to
Sec. 48.005.  AVERAGE ENROLLMENT [DAILY ATTENDANCE].  (a)
In this chapter, average enrollment [daily attendance] is:
(1)  the average number of students enrolled in the
school district during a school year [quotient of the sum of
attendance for each day of the minimum number of days of instruction
as described under Section 25.081(a) divided by the minimum number
[(2)  for a district that operates under a flexible
year program under Section 29.0821, the quotient of the sum of
attendance for each actual day of instruction as permitted by
Section 29.0821(b)(1) divided by the number of actual days of
instruction as permitted by Section 29.0821(b)(1);
[(3)  for a district that operates under a flexible
school day program under Section 29.0822, the average daily
attendance as calculated by the commissioner in accordance with
Sections 29.0822(d) and (d-1)]; or
(2) [(4)]  for a district that operates a half-day
program or a full-day program under Section 29.153(c), one-half of
the average enrollment [daily attendance] calculated under
(b)  A school district that experiences a decline of two
percent or more in average enrollment [daily attendance] shall be
(1)  the actual average enrollment [daily attendance]
of the preceding school year, if the decline is the result of the
closing or reduction in personnel of a military base; or
(2)  subject to Subsection (e), an average enrollment
[daily attendance] not to exceed 98 percent of the actual average
enrollment [daily attendance] of the preceding school year, if the
decline is not the result of the closing or reduction in personnel
(c)  The commissioner shall adjust the average enrollment
[daily attendance] of a school district that has a significant
percentage of students who are migratory children as defined by 20
(d)  The commissioner may adjust the average enrollment
[daily attendance] of a school district in which a disaster, flood,
extreme weather condition, fuel curtailment, or other calamity has
a significant effect on the district's enrollment [attendance]. In
addition to providing the adjustment for the amount of
instructional days during the semester in which the calamity first
occurred, an adjustment under this section may only be provided
based on a particular calamity for an additional amount of
instructional days equivalent to one school year.  The commissioner
may divide the adjustment between two consecutive school years.
(e)  For each school year, the commissioner shall adjust the
average enrollment [daily attendance] of school districts that are
entitled to funding on the basis of an adjusted average enrollment
[daily attendance] under Subsection (b)(2) so that:
(1)  all districts are funded on the basis of the same
percentage of the preceding year's actual average enrollment [daily
(2)  the total cost to the state does not exceed the
amount specifically appropriated for that year for purposes of
(f)  An open-enrollment charter school is not entitled to
funding based on an adjustment under Subsection (b)(2).
(g)  If a student may receive course credit toward the
student's high school academic requirements and toward the
student's higher education academic requirements for a single
course, including a course provided under Section 28.009 by a
public institution of higher education, the time during which the
student attends the course shall be counted as part of the minimum
number of instructional hours required for a student to be
considered a full-time student in average enrollment [daily
attendance] for purposes of this section.
[(g-1)  The commissioner shall adopt rules to calculate
average daily attendance for students participating in a blended
learning program in which classroom instruction is supplemented
with applied workforce learning opportunities, including
participation of students in internships, externships, and
(h)  Time [Subject to rules adopted by the commissioner under
Section 48.007(b), time] that a student participates in an
off-campus instructional program provided by an entity other than a
school district or open-enrollment charter school and approved by
the commissioner in accordance with commissioner rule [under
Section 48.007(a)] shall be counted as part of the minimum number of
instructional hours required for a student to be considered a
full-time student in average enrollment [daily attendance] for
(i)  A district or a charter school operating under Chapter
12 that operates a prekindergarten program is eligible to receive
one-half of average enrollment [daily attendance] under Subsection
(a) if the district's or charter school's prekindergarten program
provides at least 32,400 minutes of instructional time to students.
(j)  A district or charter school is eligible to earn full
average enrollment [daily attendance] under Subsection (a) if the
district or school provides at least 43,200 minutes of
instructional time to students enrolled in:
(1)  a dropout recovery school or program operating
under Section 12.1141(c) or Section 39.0548;
(2)  an alternative education program operating under
(3)  a school program located at a day treatment
facility, residential treatment facility, psychiatric hospital, or
(4)  a school program offered at a correctional
(5)  a school operating under Subchapter G, Chapter 12.
(k)  A charter school operating under a charter granted under
Chapter 12 before January 1, 2015, is eligible to earn full average
enrollment [daily attendance] under Subsection (a), as that
subsection existed immediately before January 1, 2015, for:
(1)  all campuses of the charter school operating
(2)  any campus or site expansion approved on or after
January 1, 2015, provided that the charter school received an
academic accountability performance rating of C or higher, and the
campus or site expansion is approved by the commissioner.
(l)  A school district campus or charter school described by
Subsection (j) may operate more than one program and be eligible for
full average enrollment [daily attendance] for each program if the
programs operated by the district campus or charter school satisfy
all applicable state and federal requirements.
(m)  The commissioner shall adopt rules necessary to
implement this section, including rules that:
(1)  determine the method to calculate the average
number of students enrolled in a school district during a school
(2)  establish the minimum amount of instructional time
per day that allows a school district or charter school to be
eligible for full average enrollment [daily attendance], which may
differ based on the instructional program offered by the district
(3) [(2)]  establish the requirements necessary for a
school district or charter school to be eligible for one-half of
average enrollment [daily attendance], which may differ based on
the instructional program offered by the district or charter
(4) [(3)]  proportionally reduce the average
enrollment [daily attendance] for a school district if any campus
or instructional program in the district provides fewer than the
required minimum minutes of instruction to students; and
(5) [(4)]  allow a grade or course repeated under
Section 28.02124 to qualify for average enrollment [daily
attendance] even if the student previously passed or earned credit
for the grade or course, if the grade or course would otherwise be
(n)  To assist school districts in implementing this section
as amended by H.B. 2442, [Acts of the] 85th Legislature, Regular
Session, 2017, the commissioner may waive a requirement of this
section or adopt rules to implement this section.
SECTION 2.  Section 7.062(a), Education Code, is amended to
(a)  In this section, "wealth per student" means a school
district's taxable value of property as determined under Subchapter
M, Chapter 403, Government Code, or, if applicable, Section 48.258,
divided by the district's average enrollment [daily attendance] as
determined under Section 48.005.
SECTION 3.  Section 11.052(f), Education Code, is amended to
(f)  If single-member trustee districts are adopted or
approved as provided by this section, the board shall divide the
school district into the appropriate number of trustee districts,
based on the number of members of the board that are to be elected
from single-member trustee districts, and shall number each trustee
district.  The trustee districts must be compact and contiguous and
must be as nearly as practicable of equal population.  In a district
with 150,000 or more students in average enrollment [daily
attendance], the boundary of a trustee district may not cross a
county election precinct boundary except at a point at which the
boundary of the school district crosses the county election
precinct boundary.  Trustee districts must be drawn not later than
the 90th day before the date of the first election of trustees from
SECTION 4.  Sections 12.106(a), (a-2), and (d), Education
Code, are amended to read as follows:
(a)  A charter holder is entitled to receive for the
open-enrollment charter school funding under Chapter 48 equal to
the amount of funding per student in weighted average enrollment
[daily attendance], excluding the adjustment under Section 48.052,
the funding under Sections 48.101, 48.110, 48.111, and 48.112, and
enrichment funding under Section 48.202(a), to which the charter
holder would be entitled for the school under Chapter 48 if the
school were a school district without a tier one local share for
(a-2)  In addition to the funding provided by Subsection (a),
a charter holder is entitled to receive for the open-enrollment
charter school an allotment per student in average enrollment
[daily attendance] in an amount equal to the difference between:
(i)  the total amount of funding provided to
eligible school districts under Section 48.101(b) or (c); and
(ii)  the total number of students in
average enrollment [daily attendance] in school districts that
receive an allotment under Section 48.101(b) or (c); and
(B)  the sum of one and the quotient of:
(i)  the total number of students in average
enrollment [daily attendance] in school districts that receive an
allotment under Section 48.101(b) or (c); and
(ii)  the total number of students in
average enrollment [daily attendance] in school districts
(d)  Subject to Subsection (e), in addition to other amounts
provided by this section, a charter holder is entitled to receive,
for the open-enrollment charter school, funding per student in
average enrollment [daily attendance] in an amount equal to the
guaranteed level of state and local funds per student per cent of
tax effort under Section 46.032(a) multiplied by the lesser of:
(1)  the state average interest and sinking fund tax
rate imposed by school districts for the current year; or
(2)  a rate that would result in a total amount to which
charter schools are entitled under this subsection for the current
SECTION 5.  Sections 12.263(a), (b), and (c), Education
Code, are amended to read as follows:
(a)  Except as otherwise provided by this section, funding
for an adult education program operated under a charter granted
under this subchapter is an amount per participant through the
Foundation School Program equal to the amount of state funding per
student in weighted average enrollment [daily attendance] that
would be allocated under the Foundation School Program for the
student's attendance at an open-enrollment charter school in
accordance with Section 12.106.
(b)  For purposes of determining the average enrollment
[daily attendance] of an adult education program operated under a
charter granted under this subchapter, a student is considered to
be in average enrollment [daily attendance, with a 100 percent
(1)  all of the instructional days of the school year,
if the student is enrolled for at least 75 percent of the school
(2)  half of the instructional days of the school year,
if the student is enrolled for at least 50 percent but less than 75
(3)  a quarter of the instructional days of the school
year, if the student is enrolled for at least 25 percent but less
than 50 percent of the school year; or
(4)  one-tenth of the instructional days of the school
year, if the student is enrolled for at least 10 percent but less
than 25 percent of the school year.
(c)  A student enrolled in an adult education program
operated under a charter granted under this subchapter for less
than 10 percent of a school year may not be counted toward the adult
education program's average enrollment [daily attendance] for that
SECTION 6.  Section 13.051(c), Education Code, is amended to
(c)  Territory that does not have residents may be detached
from a school district and annexed to another school district if:
(1)  the total taxable value of the property in the
territory according to the most recent certified appraisal roll for
each school district is not greater than:
(A)  five percent of the district's taxable value
of all property in that district as determined under Subchapter M,
Chapter 403, Government Code; and
(B)  $5,000 property value per student in average
enrollment [daily attendance] as determined under Section 48.005;
(2)  the school district from which the property will
be detached does not own any real property located in the territory.
SECTION 7.  Section 13.102, Education Code, is amended to
Sec. 13.102.  MINIMUM AREA AND ENROLLMENT [ATTENDANCE]
REQUIREMENTS.  A new district may not be created with an area of
less than nine square miles or fewer than 8,000 students in average
enrollment [daily attendance], and a district may not be reduced to
an area of less than nine square miles or fewer than 8,000 students
in average enrollment [daily attendance].
SECTION 8.  Section 13.283, Education Code, is amended to
Sec. 13.283.  PAYMENTS REDUCED.  The incentive aid payments
shall be reduced in direct proportion to any reduction in the
average enrollment [daily attendance] as determined under Section
48.005 of the reorganized school district for the preceding year.
SECTION 9.  Section 19.009(d-2), Education Code, is amended
(d-2)  Beginning with the 2009-2010 school year, the
district shall increase the monthly salary of each classroom
teacher, full-time speech pathologist, full-time librarian,
full-time school counselor certified under Subchapter B, Chapter
21, and full-time school nurse employed by the district by the
(2)  the maximum uniform amount that, when combined
with any resulting increases in the amount of contributions made by
the district for social security coverage for the specified
employees or by the district on behalf of the specified employees
under Section 825.405, Government Code, may be provided using an
amount equal to the product of $60 multiplied by the number of
students in weighted average enrollment [daily attendance] in the
district during the 2009-2010 school year.
SECTION 10.  Section 25.038, Education Code, is amended to
Sec. 25.038.  TUITION FEE FOR TRANSFER STUDENTS.  The
receiving school district may charge a tuition fee to the extent
that the district's actual expenditure per student in average
enrollment [daily attendance], as determined by its board of
trustees, exceeds the sum the district benefits from state aid
sources as provided by Section 25.037.  However, unless a tuition
fee is prescribed and set out in a transfer agreement before its
execution by the parties, an increase in tuition charge may not be
made for the year of that transfer that exceeds the tuition charge,
if any, of the preceding school year.
SECTION 11.  Section 25.045(c), Education Code, is amended
(c)  A student who transfers to another school district under
this section may not be charged tuition.  The student is included in
the average enrollment [daily attendance] of the district in which
SECTION 12.  Sections 25.081(e) and (f), Education Code, are
(e)  A school district or education program is exempt from
the minimum minutes of operation requirement if the district's or
program's average enrollment [daily attendance] is calculated
(f)  The commissioner may proportionally reduce the amount
of funding a district receives under Chapter 46, 48, or 49 and the
average enrollment [daily attendance] calculation for the district
if the district operates on a calendar that provides fewer minutes
of operation than required under Subsection (a).
SECTION 13.  Section 25.087(d), Education Code, is amended
(d)  A student whose absence is excused under Subsection (b),
(b-1), (b-2), (b-4), (b-5), (b-7), (b-8), or (c) may not be
penalized for that absence and shall be counted as if the student
attended school for purposes of funding under Chapter 48
[calculating the average daily attendance of students in the school
district]. A student whose absence is excused under Subsection (b),
(b-1), (b-2), (b-4), (b-5), (b-7), (b-8), or (c) shall be allowed a
reasonable time to make up school work missed on those days. If the
student satisfactorily completes the school work, the day of
absence shall be counted as a day of compulsory attendance.
SECTION 14.  Section 25.111, Education Code, is amended to
Sec. 25.111.  STUDENT/TEACHER RATIOS.  Except as provided by
Section 25.112, each school district must employ a sufficient
number of teachers certified under Subchapter B, Chapter 21, to
maintain an average ratio of not less than one teacher for each 20
students in average enrollment [daily attendance].
SECTION 15.  Sections 25.112(a) and (b), Education Code, are
(a)  Except as otherwise authorized by this section, a school
district may not enroll more than 22 students in a prekindergarten,
kindergarten, first, second, third, or fourth grade class.  That
limitation does not apply during:
(1)  any 12-week period of the school year selected by
the district, in the case of a district whose average enrollment
[daily attendance] is adjusted under Section 48.005(c); or
(2)  the last 12 weeks of any school year in the case of
(b)  Not later than the 30th day after the first day of the
12-week period for which a district whose average enrollment [daily
attendance] is adjusted under Section 48.005(c) is claiming an
exemption under Subsection (a), the district shall notify the
commissioner in writing that the district is claiming an exemption
for the period stated in the notice.
SECTION 16.  Section 29.008(b), Education Code, is amended
(b)  Except as provided by Subsection (c), costs of an
approved contract for residential placement may be paid from a
combination of federal, state, and local funds.  The local share of
the total contract cost for each student is that portion of the
local tax effort that exceeds the district's local fund assignment
under Section 48.256, divided by the average enrollment [daily
attendance] in the district.  If the contract involves a private
facility, the state share of the total contract cost is that amount
remaining after subtracting the local share.  If the contract
involves a public facility, the state share is that amount
remaining after subtracting the local share from the portion of the
contract that involves the costs of instructional and related
services.  For purposes of this subsection, "local tax effort"
means the total amount of money generated by taxes imposed for debt
service and maintenance and operation less any amounts paid into a
tax increment fund under Chapter 311, Tax Code.
SECTION 17.  Section 29.014(b), Education Code, is amended
(b)  A school district to which this section applies may
operate an extended year program for a period not to exceed 45 days.
[The district's average daily attendance shall be computed for the
regular school year plus the extended year.]
SECTION 18.  Section 29.081(f), Education Code, is amended
(f)  The commissioner shall include a student who
successfully completes a course offered through a program under
Subsection (e) in the computation of the district's or school's
average enrollment [daily attendance] for funding purposes.  [For a
student who successfully completes a remote course offered through
the program, the commissioner shall include the student in the
computation of the district's or school's average daily attendance
with an attendance rate equal to:
[(1)  the district's or school's average attendance
rate for students successfully completing a course offered in
[(2)  if the district or school does not offer courses
in person under the program, the statewide average attendance rate
for students successfully completing a course offered in person
under a program under Subsection (e).]
SECTION 19.  Section 29.0822(d), Education Code, is amended
(d)  The commissioner may adopt rules for the administration
of this section, including rules establishing application
requirements.  [Subject to Subsection (d-1), the commissioner shall
calculate average daily attendance for students served under this
section.  The commissioner shall allow accumulations of hours of
instruction for students whose schedule would not otherwise allow
full state funding.  Funding under this subsection shall be
determined based on the number of instructional days in the school
district calendar and a seven-hour school day, but attendance may
be cumulated over a school year, including any summer or vacation
session.  The attendance of students who accumulate less than the
number of attendance hours required under this subsection shall be
proportionately reduced for funding purposes.  The commissioner
[(1)  set maximum funding amounts for an individual
[(2)  limit funding for the attendance of a student
described by Subsection (a)(3) in a course under this section to
funding only for the attendance necessary for the student to earn
class credit that, as a result of attendance requirements under
Section 25.092, the student would not otherwise be able to receive
SECTION 20.  Section 29.184(b), Education Code, is amended
(b)  A student who attends career and technology classes at
another school under a contract authorized by Subsection (a) is
included in the average enrollment [daily attendance] of the
district in which the student is regularly enrolled.
SECTION 21.  Sections 29.203(a) and (c), Education Code, are
(a)  A student who under this subchapter uses a public
education grant to attend a public school in a school district other
than the district in which the student resides is included in the
average enrollment [daily attendance] of the district in which the
(c)  A school district is entitled to additional facilities
assistance under Section 48.301 if the district agrees to:
(1)  accept a number of students using public education
grants that is at least one percent of the district's average
enrollment [daily attendance] for the preceding school year; and
(2)  provide services to each student until the student
either voluntarily decides to attend a school in a different
district or graduates from high school.
SECTION 22.  Section 29.403(b), Education Code, is amended
(b)  A student who is enrolled in a program under this
subchapter is included in determining the average enrollment [daily
attendance] under Section 48.005 of the partnering school district.
SECTION 23.  Section 29.457(a), Education Code, is amended
(a)  In addition to other funding to which a school district
is entitled under this code, each district in which alleged
offender residents attend school is entitled to an annual allotment
of $5,100 for each resident in average enrollment [daily
attendance] or a different amount for any year provided by
SECTION 24.  Section 29.912(c), Education Code, is amended
(c)  The program must enable an eligible school district that
has fewer than 1,600 students in average enrollment [daily
attendance] to partner with at least one other school district
located within a distance of 100 miles to offer a broader array of
robust college and career pathways.  Each partnership must:
(1)  offer college and career pathways that align with
regional labor market projections for high-wage, high-demand
(2)  be managed by a coordinating entity that:
(A)  has or will have at the time students are
served under the partnership the capacity to effectively coordinate
(B)  has entered into a performance agreement
approved by the board of trustees of each partnering school
district that confers on the coordinating entity the same authority
with respect to pathways offered under the partnership provided to
an entity that contracts to operate a district campus under Section
(C)  is an eligible entity as defined by Section
(D)  has on the entity's governing board as either
voting or ex officio members, or has on an advisory body,
representatives of each partnering school district and members of
regional higher education and workforce organizations.
SECTION 25.  Section 30.003(b), Education Code, is amended
(b)  If the student is admitted to the school for a full-time
program for the equivalent of two long semesters, the district's
share of the cost is an amount equal to the dollar amount of
maintenance and debt service taxes imposed by the district for that
year divided by the district's average enrollment [daily
attendance] for the preceding year.
SECTION 26.  Section 30.102(a), Education Code, is amended
(a)  The Texas Juvenile Justice Department is entitled to
receive the state available school fund apportionment based on the
average enrollment [daily attendance] in the department's
educational programs of students who are at least three years of age
and not older than 21 years of age.
SECTION 27.  Section 30A.151(f), Education Code, is amended
(f)  For a full-time electronic course program offered
through the state virtual school network for a grade level at or
above grade level three but not above grade level eight, a school
district or open-enrollment charter school is entitled to receive
federal, state, and local funding for a student enrolled in the
program in an amount equal to the funding the district or school
would otherwise receive for a student enrolled in the district or
school.  [The district or school may calculate the average daily
attendance of a student enrolled in the program based on:
[(1)  hours of contact with the student;
[(2)  the student's successful completion of a course;
[(3)  a method approved by the commissioner.]
SECTION 28.  Section 33.157, Education Code, is amended to
Sec. 33.157.  PARTICIPATION IN PROGRAM.  An elementary or
secondary school receiving funding under Section 33.156 shall
participate in a local Communities In Schools program if the number
of students enrolled in the school who are at risk of dropping out
of school is equal to at least 10 percent of the number of students
in average enrollment [daily attendance] at the school, as
SECTION 29.  Section 37.0061, Education Code, is amended to
Sec. 37.0061.  FUNDING FOR ALTERNATIVE EDUCATION SERVICES IN
JUVENILE RESIDENTIAL FACILITIES.  A school district that provides
education services to pre-adjudicated and post-adjudicated
students who are confined by court order in a juvenile residential
facility operated by a juvenile board is entitled to count such
students in the district's average enrollment [daily attendance]
for purposes of receipt of state funds under the Foundation School
Program.  If the district has a local revenue level greater than the
guaranteed local revenue level but less than the level established
under Section 48.257, the district in which the student is enrolled
on the date a court orders the student to be confined to a juvenile
residential facility shall transfer to the district providing
education services an amount equal to the difference between the
average Foundation School Program costs per student of the district
providing education services and the sum of the state aid and the
money from the available school fund received by the district that
is attributable to the student for the portion of the school year
for which the district provides education services to the student.
SECTION 30.  Section 37.008(f), Education Code, is amended
(f)  A student removed to a disciplinary alternative
education program is counted in computing the average enrollment
[daily attendance] of students in the district [for the student's
time in actual attendance in the program].
SECTION 31.  Section 37.011(a-4), Education Code, is amended
(a-4)  A school district located in a county considered to be
a county with a population of 125,000 or less under Subsection (a-3)
shall provide educational services to a student who is expelled
from school under this chapter.  The district is entitled to count
the student in the district's average enrollment [daily attendance]
for purposes of receipt of state funds under the Foundation School
Program.  An educational placement under this section may include:
(1)  the district's disciplinary alternative education
(2)  a contracted placement with:
(B)  an open-enrollment charter school;
(C)  an institution of higher education;
(D)  an adult literacy council; or
(E)  a community organization that can provide an
educational program that allows the student to complete the credits
required for high school graduation.
SECTION 32.  Sections 39.027(c) and (f), Education Code, are
(c)  The commissioner shall develop and adopt a process for
reviewing the exemption process of a school district or shared
services arrangement that gives an exemption under Subsection
(1)  to more than five percent of the students in the
special education program, in the case of a district or shared
services arrangement with an average enrollment [daily attendance]
(2)  to more than 10 percent of the students in the
special education program, in the case of a district or shared
services arrangement with an average enrollment [daily attendance]
of at least 190 and not more than 1,599; or
(3)  to the greater of more than 10 percent of the
students in the special education program or to at least five
students in the special education program, in the case of a district
or shared services arrangement with an average enrollment [daily
attendance] of not more than 189.
(f)  In this section, "average enrollment [daily
attendance]" is computed in the manner provided by Section 48.005.
SECTION 33.  Section 39.053(g-1), Education Code, is amended
(g-1)  In computing dropout and completion rates such as high
school graduation rates under Subsection (c)(1)(B)(ix), the
(1)  students who are ordered by a court to attend a
high school equivalency certificate program but who have not yet
earned a high school equivalency certificate;
(2)  students who were previously reported to the state
as dropouts, including a student who is reported as a dropout,
reenrolls, and drops out again, regardless of the number of times of
(3)  students in attendance who are not in membership
for purposes of average enrollment [daily attendance];
(4)  students whose initial enrollment in a school in
the United States in grades 7 through 12 was as an unschooled asylee
or refugee as defined by Section 39.027(a-1);
(5)  students who are detained at a county
pre-adjudication or post-adjudication juvenile detention facility
(A)  in the district exclusively as a function of
having been detained at the facility but are otherwise not students
of the district in which the facility is located; or
(B)  provided services by an open-enrollment
charter school exclusively as the result of having been detained at
(6)  students who are incarcerated in state jails and
federal penitentiaries as adults and as persons certified to stand
(7)  students who have suffered a condition, injury, or
illness that requires substantial medical care and leaves the
(A)  unable to attend school; and
(B)  assigned to a medical or residential
SECTION 34.  Section 39.262(a), Education Code, is amended
(a)  The governor may present a financial award to the
schools or districts that the commissioner determines have
demonstrated the highest levels of sustained success or the
greatest improvement in achieving the education goals.  For each
student in average enrollment [daily attendance], each of those
schools or districts is entitled to an amount set for the award for
which the school or district is selected by the commissioner,
subject to any limitation set by the commissioner on the total
amount that may be awarded to a school or district.
SECTION 35.  Section 43.001(c), Education Code, is amended
(c)  The term "scholastic population" in Subsection (b) or
any other law governing the apportionment, distribution, and
transfer of the available school fund means all students of school
age [enrolled] in average enrollment [daily attendance] the
preceding school year in the public elementary and high school
grades of school districts within or under the jurisdiction of a
SECTION 36.  Section 44.004(c), Education Code, is amended
(c)  The notice of public meeting to discuss and adopt the
budget and the proposed tax rate may not be smaller than one-quarter
page of a standard-size or a tabloid-size newspaper, and the
headline on the notice must be in 18-point or larger type. Subject
to Subsection (d), the notice must:
(1)  contain a statement in the following form:
"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
"The (name of school district) will hold a public meeting at
(time, date, year) in (name of room, building, physical location,
city, state). The purpose of this meeting is to discuss the school
district's budget that will determine the tax rate that will be
adopted. Public participation in the discussion is invited." The
statement of the purpose of the meeting must be in bold type. In
reduced type, the notice must state: "The tax rate that is
ultimately adopted at this meeting or at a separate meeting at a
later date may not exceed the proposed rate shown below unless the
district publishes a revised notice containing the same information
and comparisons set out below and holds another public meeting to
discuss the revised notice." In addition, in reduced type, the
notice must state: "Visit Texas.gov/PropertyTaxes to find a link to
your local property tax database on which you can easily access
information regarding your property taxes, including information
about proposed tax rates and scheduled public hearings of each
entity that taxes your property.";
(2)  contain a section entitled "Comparison of Proposed
Budget with Last Year's Budget," which must show the difference,
expressed as a percent increase or decrease, as applicable, in the
amounts budgeted for the preceding fiscal year and the amount
budgeted for the fiscal year that begins in the current tax year for
(A)  maintenance and operations;
(3)  contain a section entitled "Total Appraised Value
and Total Taxable Value," which must show the total appraised value
and the total taxable value of all property and the total appraised
value and the total taxable value of new property taxable by the
district in the preceding tax year and the current tax year as
calculated under Section 26.04, Tax Code;
(4)  contain a statement of the total amount of the
outstanding and unpaid bonded indebtedness of the school district;
(5)  contain a section entitled "Comparison of Proposed
Rates with Last Year's Rates," which must:
(A)  show in rows the tax rates described by
Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
property, for columns entitled "Maintenance & Operations,"
"Interest & Sinking Fund," and "Total," which is the sum of
"Maintenance & Operations" and "Interest & Sinking Fund":
(i)  the school district's "Last Year's
(ii)  the "Rate to Maintain Same Level of
Maintenance & Operations Revenue & Pay Debt Service," which:
(a)  in the case of "Maintenance &
Operations," is the tax rate that, when applied to the current
taxable value for the district, as certified by the chief appraiser
under Section 26.01, Tax Code, and as adjusted to reflect changes
made by the chief appraiser as of the time the notice is prepared,
would impose taxes in an amount that, when added to state funds to
be distributed to the district under Chapter 48, would provide the
same amount of maintenance and operations taxes and state funds
distributed under Chapter 48 per student in average enrollment
[daily attendance] for the applicable school year that was
available to the district in the preceding school year; and
(b)  in the case of "Interest & Sinking
Fund," is the tax rate that, when applied to the current taxable
value for the district, as certified by the chief appraiser under
Section 26.01, Tax Code, and as adjusted to reflect changes made by
the chief appraiser as of the time the notice is prepared, and when
multiplied by the district's anticipated collection rate, would
impose taxes in an amount that, when added to state funds to be
distributed to the district under Chapter 46 and any excess taxes
collected to service the district's debt during the preceding tax
year but not used for that purpose during that year, would provide
the amount required to service the district's debt; and
(B)  contain fourth and fifth columns aligned with
the columns required by Paragraph (A) that show, for each row
(i)  the "Local Revenue per Student," which
is computed by multiplying the district's total taxable value of
property, as certified by the chief appraiser for the applicable
school year under Section 26.01, Tax Code, and as adjusted to
reflect changes made by the chief appraiser as of the time the
notice is prepared, by the total tax rate, and dividing the product
by the number of students in average enrollment [daily attendance]
in the district for the applicable school year; and
(ii)  the "State Revenue per Student," which
is computed by determining the amount of state aid received or to be
received by the district under Chapters 43, 46, and 48 and dividing
that amount by the number of students in average enrollment [daily
attendance] in the district for the applicable school year; and
(C)  contain an asterisk after each calculation
for "Interest & Sinking Fund" and a footnote to the section that, in
reduced type, states "The Interest & Sinking Fund tax revenue is
used to pay for bonded indebtedness on construction, equipment, or
both. The bonds, and the tax rate necessary to pay those bonds, were
approved by the voters of this district.";
(6)  contain a section entitled "Comparison of Proposed
Levy with Last Year's Levy on Average Residence," which must:
(A)  show in rows the information described by
Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
entitled "Last Year" and "This Year":
(i)  "Average Market Value of Residences,"
determined using the same group of residences for each year;
(ii)  "Average Taxable Value of Residences,"
determined after taking into account the limitation on the
appraised value of residences under Section 23.23, Tax Code, and
after subtracting all homestead exemptions applicable in each year,
other than exemptions available only to disabled persons or persons
65 years of age or older or their surviving spouses, and using the
same group of residences for each year;
(iii)  "Last Year's Rate Versus Proposed
(iv)  "Taxes Due on Average Residence,"
determined using the same group of residences for each year; and
(B)  contain the following information: "Increase
(Decrease) in Taxes" expressed in dollars and cents, which is
computed by subtracting the "Taxes Due on Average Residence" for
the preceding tax year from the "Taxes Due on Average Residence" for
(7)  contain the following statement in bold print:
"Under state law, the dollar amount of school taxes imposed on the
residence of a person 65 years of age or older or of the surviving
spouse of such a person, if the surviving spouse was 55 years of age
or older when the person died, may not be increased above the amount
paid in the first year after the person turned 65, regardless of
changes in tax rate or property value.";
(8)  contain the following statement in bold print:
"Notice of Voter-Approval Rate: The highest tax rate the district
can adopt before requiring voter approval at an election is (the
school district voter-approval rate determined under Section
26.08, Tax Code). This election will be automatically held if the
district adopts a rate in excess of the voter-approval rate of (the
school district voter-approval rate)."; and
(9)  contain a section entitled "Fund Balances," which
must include the estimated amount of interest and sinking fund
balances and the estimated amount of maintenance and operation or
general fund balances remaining at the end of the current fiscal
year that are not encumbered with or by corresponding debt
obligation, less estimated funds necessary for the operation of the
district before the receipt of the first payment under Chapter 48 in
SECTION 37.  Sections 45.0011(a), (d), and (e), Education
Code, are amended to read as follows:
(a)  This section applies only to an independent school
district that, at the time of the issuance of obligations and
execution of credit agreements under this section, has:
(1)  at least 2,000 students in average enrollment
(2)  a combined aggregate principal amount of at least
$50 million of outstanding bonds and voted but unissued bonds.
(d)  A district may not issue bonds to which this section
applies in an amount greater than the greater of:
(A)  the aggregate principal amount of all
district debt payable from ad valorem taxes that is outstanding at
the time the bonds are issued; and
(B)  the aggregate principal amount of all bonds
payable from ad valorem taxes that have been authorized but not
(2)  $25 million, in a district that has at least 3,500
but not more than 15,000 students in average enrollment [daily
(3)  $50 million, in a district that has more than
15,000 students in average enrollment [daily attendance].
(e)  In this section, average enrollment [daily attendance]
is determined in the manner provided by Section 48.005.
SECTION 38.  Section 45.006(a), Education Code, is amended
(a)  This section applies only to a school district that:
(1)  has an average enrollment [daily attendance] of
(2)  is located in whole or part in a municipality with
a population of less than 25,000 that is located in a county with a
population of 200,000 or more bordering another county with a
population of 2.8 million or more.
SECTION 39.  Section 45.105(d), Education Code, is amended
(d)  An independent school district that has in its limits a
municipality with a population of 150,000 or more or that contains
at least 170 square miles, has $850 million or more assessed value
of taxable property on the most recent approved tax roll and has a
growth in average enrollment [daily attendance] of 11 percent or
more for each of the preceding five years as determined by the
agency may, in buying school sites or additions to school sites and
in building school buildings, issue and deliver negotiable or
nonnegotiable notes representing all or part of the cost to the
school district of the land or building.  The district may secure
the notes by a vendor's lien or deed of trust lien against the land
or building.  By resolution or order of the governing body made at
or before the delivery of the notes, the district may set aside and
appropriate as a trust fund, and the sole and only fund, for the
payment of the principal of and interest on the notes that part of
the local school funds, levied and collected by the school district
in that year or subsequent years, as the governing body determines.
The aggregate amount of local school funds set aside in or for any
subsequent year for the retirement of the notes may not exceed, in
any one subsequent year, 10 percent of the local school funds
collected during that year.  The district may issue the notes only
if approved by majority vote of the qualified voters voting in an
election conducted in the manner provided by Section 45.003 for
SECTION 40.  Section 46.003(a), Education Code, is amended
(a)  For each year, except as provided by Sections 46.005 and
46.006, a school district is guaranteed a specified amount per
student in state and local funds for each cent of tax effort, up to
the maximum rate under Subsection (b), to pay the principal of and
interest on eligible bonds issued to construct, acquire, renovate,
or improve an instructional facility.  The amount of state support
FYA = (FYL X AE [ADA] X BTR X 100) - (BTR X (DPV/100))
"FYA" is the guaranteed facilities yield amount of state
funds allocated to the district for the year;
"FYL" is the dollar amount guaranteed level of state and
local funds per student per cent of tax effort, which is $35 or a
greater amount for any year provided by appropriation;
"AE" ["ADA"] is the greater of the number of students in
average enrollment [daily attendance], as determined under Section
48.005, in the district or 400;
"BTR" is the district's bond tax rate for the current year,
which is determined by dividing the amount budgeted by the district
for payment of eligible bonds by the quotient of the district's
taxable value of property as determined under Subchapter M, Chapter
403, Government Code, or, if applicable, Section 48.258, divided by
"DPV" is the district's taxable value of property as
determined under Subchapter M, Chapter 403, Government Code, or, if
SECTION 41.  Section 46.005, Education Code, is amended to
Sec. 46.005.  LIMITATION ON GUARANTEED AMOUNT.  The
guaranteed amount of state and local funds for a new project that a
district may be awarded in any state fiscal biennium under Section
46.003 for a school district may not exceed the lesser of:
(1)  the amount the actual debt service payments the
district makes in the biennium in which the bonds are issued; or
(B)  the product of the number of students in
average enrollment [daily attendance] in the district multiplied by
SECTION 42.  Section 46.006(g), Education Code, is amended
(g)  In this section, "wealth per student" means a school
district's taxable value of property as determined under Subchapter
M, Chapter 403, Government Code, or, if applicable, Section 48.258,
divided by the district's average enrollment [daily attendance] as
determined under Section 48.005.
SECTION 43.  Section 46.032(a), Education Code, is amended
(a)  Each school district is guaranteed a specified amount
per student in state and local funds for each cent of tax effort to
pay the principal of and interest on eligible bonds.  The amount of
state support, subject only to the maximum amount under Section
46.034, is determined by the formula:
EDA = (EDGL X AE [ADA] X EDTR X 100) - (EDTR X (DPV/100))
"EDA" is the amount of state funds to be allocated to the
district for assistance with existing debt;
"EDGL" is the dollar amount guaranteed level of state and
local funds per student per cent of tax effort, which is the lesser
(1)  $40 or a greater amount for any year provided by
(2)  the amount that would result in a total additional
amount of state funds under this subchapter for the current year
equal to $60 million in excess of the state funds to which school
districts would have been entitled under this section if the
guaranteed level amount were $35;
"AE" ["ADA"] is the number of students in average enrollment
[daily attendance], as determined under Section 48.005, in the
"EDTR" is the existing debt tax rate of the district, which is
determined by dividing the amount budgeted by the district for
payment of eligible bonds by the quotient of the district's taxable
value of property as determined under Subchapter M, Chapter 403,
Government Code, or, if applicable, under Section 48.258, divided
"DPV" is the district's taxable value of property as
determined under Subchapter M, Chapter 403, Government Code, or, if
applicable, under Section 48.258.
SECTION 44.  Sections 48.0051(a) and (b), Education Code,
are amended to read as follows:
(a)  The [Subject to Subsection (a-1), the] commissioner
shall adjust the average enrollment [daily attendance] of a school
district or open-enrollment charter school under Section 48.005 in
the manner provided by Subsection (b) if the district or school:
(1)  provides the minimum number of minutes of
operational and instructional time required under Section 25.081
and commissioner rules adopted under that section over at least 180
(2)  offers an additional 30 days of half-day
instruction for students enrolled in prekindergarten through fifth
(b)  For a school district or open-enrollment charter school
described by Subsection (a), the commissioner shall increase the
average enrollment [daily attendance] of the district or school
under Section 48.005 by the amount equal to one-sixth [that results
from the quotient] of the enrollment [sum of attendance] by
students described by Subsection (a)(2) in [for each of] the 30
additional instructional days of half-day instruction [that are
SECTION 45.  Section 48.006, Education Code, is amended to
Sec. 48.006.  AVERAGE ENROLLMENT [DAILY ATTENDANCE] FOR
DISTRICTS IN DISASTER AREA.  (a)  The commissioner may adjust the
average enrollment [daily attendance] of a school district all or
part of which is located in an area declared a disaster area by the
governor under Chapter 418, Government Code, if the district
experiences a decline in average enrollment [daily attendance] that
is reasonably attributable to the impact of the disaster.
(b)  The adjustment must be sufficient to ensure that the
district receives funding comparable to the funding that the
district would have received if the decline in average enrollment
[daily attendance] reasonably attributable to the impact of the
(c)  The commissioner may make the adjustment under this
section for the two-year period following the date of the
governor's initial proclamation or executive order declaring the
(d)  Section 48.005(b)(2) does not apply to a district that
receives an adjustment under this section.
(e)  A district that receives an adju