HBA-JRA H.B. 2326 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2326
By: Hardcastle
Public Education
4/19/1999
Introduced



BACKGROUND AND PURPOSE 

Current law requires a school district that accepts a transfer student to
establish an agreement with the district from which the student came in
order to count the student towards its weighted average daily attendance.
Several districts in the state are currently providing tuition free
services to transfer students, but the agreements between the sending and
receiving districts have already expired or will soon expire, making these
districts ineligible for state assistance and possibly jeopardizing the
districts' ability to accept such students.  H.B. 2326 eliminates the
requirement that a school district execute an agreement with the school
district in which a transferring student resides.  This bill also
authorizes a school district to include such transfer students in its final
weighted average daily attendance and authorizes a school district with a
wealth per student that exceeds the equalized wealth level to reduce the
district's wealth per student by serving nonresident students who transfer
to the district and are educated by the district but who are not charged
tuition. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 41.001(3), Education Code, to redefine "weighted
average daily attendance" as it is defined by Section 42.302 (Allotment).
Deletes exceptions related to using a modification of the estimate of
average daily attendance under Section 42.254 (Estimates Required). 

SECTION 2.  Amends Section 41.003, Education Code, to authorize a district
with a wealth per student that exceeds the equalized wealth level to
educate, rather than contract for the education of, nonresident students as
provided by Subchapter E (Financing the Program). 

SECTION 3.  Amends Subchapter A, Chapter 41, Education Code, by adding
Section 41.0031, as follows: 

Sec. 41.0031.  INCLUSION OF ATTENDANCE CREDITS AND NONRESIDENTS IN WEIGHTED
AVERAGE DAILY ATTENDANCE.  Requires the commissioner of education
(commissioner), in determining whether a school district has a wealth per
student less than or equal to the equalized wealth level, to use the
district's final weighted average daily attendance and the number of
attendance credits a district purchases under Subchapter D (Purchase of
Attendance Credit) or the number of nonresident students a district
educates under Subchapter E for a school year. 

SECTION 4.  Amends Section 41.004(a), Education Code, to require the
commissioner to use the estimate of enrollment under Section 42.254 in
reviewing the wealth per student of school districts in the state. 

SECTION 5.  Amends Section 41.093, Education Code, by adding Subsection
(c), as follows: 

(c)  Provides that the cost of an attendance credit for a school district
is computed using the final tax collections of the district. 
 
SECTION 6.  Amends Subchapter E, Chapter 41, Education Code, by adding
Section 41.124, as follows: 

Sec. 41.124.  TRANSFERS.  (a)  Authorizes the board of trustees of a school
district with a wealth per student that exceeds the equalized wealth level
to reduce the district's wealth per student by serving nonresident students
who transfer to the district and are educated by the district but who are
not charged tuition.  Provides that a district that exercises this option
is not required to execute an agreement with the school district in which a
transferring student resides and must certify to the commissioner that the
district has not charged or received tuition for the transferring students. 

(b)  Authorizes a school district with a wealth per student that exceeds
the equalized wealth level that pays tuition to another school district for
the education of students that reside in the district to apply the amount
of tuition paid toward the cost of the option chosen by the district to
reduce its wealth per student.  Prohibits the amount applied under this
subsection from exceeding the amount determined under Section 41.093 as the
cost of an attendance credit for the district.  Authorizes the commissioner
to require any reports necessary to document the tuition payments. 

(c)  Prohibits a school district that receives tuition for a student from a
school district with a wealth per student that exceeds the equalized wealth
level from claiming attendance for that student for purposes of Chapter 42
(Foundation School Program) and Chapter 46 (Instructional Facilities
Allotment). 

SECTION. 7  Amends the heading to Subchapter E, Chapter 42, Education Code,
as follows: 

SUBCHAPTER E.  EDUCATION OF NONRESIDENT STUDENTS

SECTION 8.  Makes application of this Act prospective to the 1999-2000
school year. 

SECTION 9.Emergency clause.
  Effective date: upon passage.