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Amend CSHB 3646 (Senate committee printing) as follows:                      
	(1)  In ARTICLE 1 of the bill (page 1, between lines 12 and 
13), add the following appropriately numbered SECTION:
	SECTION 1.___.  Section 12.106, Education Code, is amended 
by amending Subsection (a) and adding Subsections (a-1) and (a-2) 
to read as follows:
	(a)  A charter holder is entitled to receive for the 
open-enrollment charter school funding under Chapter 42 equal to 
the greater of:
		(1)  the amount of funding per student in weighted 
average daily attendance, excluding enrichment funding under 
Section 42.302(a), that would have been received for the school 
during the 2009-2010 school year under Chapter 42 as it existed on 
January 1, 2009, and an additional amount of $135 for each student 
in weighted average daily attendance; or
		(2)  the amount of funding per student in weighted 
average daily attendance, excluding enrichment funding under 
Section 42.302(a), to which the charter holder would be entitled 
for the school under Chapter 42 [as] if the school were a school 
district without a tier one local share for purposes of Section 
42.253 and without any local revenue [("LR")] for purposes of 
Section 42.2516 [42.302].
	(a-1)  In determining funding for an open-enrollment charter 
school under Subsection (a), adjustments under Sections 42.102, 
42.103, 42.104, and 42.105 [and the district enrichment tax rate 
("DTR") under Section 42.302] are based on the average adjustment 
[and average district enrichment tax rate] for the state.
	(a-2)  In addition to the funding provided by Subsection (a), 
a charter holder is entitled to receive for the open-enrollment 
charter school enrichment funding under Section 42.302 based on the 
state average tax effort.
	(2)  In SECTION 1.01 of the bill, in added Section 
12.1331(b), Education Code (page 1, line 23), between "district" 
and the period, insert "or to pay for any resulting increases in the 
amount of contributions made by the charter holder for social 
security coverage for the specified employees or on behalf of the 
specified employees under Section 825.405, Government Code".
	(3)  In SECTION 1.03 of the bill, in added Section 
19.009(d-2), Education Code (page 1, line 60), between "Chapter 11" 
and the period, insert "or to pay for any resulting increases in the 
amount of contributions made by the district for social security 
coverage for the specified employees or on behalf of the specified 
employees under Section 825.405, Government Code".
	(4)  In SECTION 1.04 of the bill, in added Section 
21.402(c-1), Education Code (page 2, line 31), between "district" 
and the period, insert "or to pay for any resulting increases in the 
amount of contributions made by the district for social security 
coverage for the specified employees or on behalf of the specified 
employees under Section 825.405, Government Code".
	(5)  In SECTION 1.04 of the bill, in added Section 
21.402(c-3), Education Code (page 2, lines 41 and 42), strike "does 
not include" and substitute "is in addition to".
	(6)  In ARTICLE 1 of the bill (page 3, between lines 14 and 
15), add the following appropriately numbered SECTION:
	SECTION 1.___.  Section 21.704, Education Code, is amended 
by adding Subsection (c-1) to read as follows:
	(c-1)  A local awards plan must provide for teachers and 
principals eligible to receive awards under the plan to be notified 
of the specific criteria and any formulas on which the awards will 
be based before the beginning of the period on which the awards will 
be based.
	(7)  In SECTION 1.10 of the bill, in amended Section 
41.002(a)(1), Education Code (page 4, line 20), strike "$470,000" 
and substitute "$475,000".
	(8)  In SECTION 1.12 of the bill, in added Section 42.008(a), 
Education Code (page 4, lines 67 and 68), strike "six percent" and 
substitute "$350".
	(9)  In SECTION 1.12 of the bill, in added Section 
42.008(a-1), Education Code (page 5, line 6), strike "six percent" 
and substitute "$350".
	(10)  In SECTION 1.13 of the bill, in amended Section 
42.101(a), Education Code (page 5, lines 32 and 34), strike 
"$4,700" each place it appears and substitute "$4,750".
	(11)  In SECTION 1.19 of the bill, in amended Section 
42.2516, Education Code (page 9, lines 16-44), strike deleted 
Subsection (b-1) and substitute the following:
	(b-1)  The amount determined for a school district under 
Subsection (b) is increased or reduced as follows:
		(1)  if for any school year the district is entitled to 
a greater allotment under Section 42.155 or 42.158 or more 
additional state aid under Section 42.2515 than the allotment or 
additional state aid to which the district was entitled under 
Section 42.155, 42.158, or 42.2515, as applicable, [that section] 
for the 2009-2010 school year [on which the district's entitlement 
under Subsection (b) is based], the district's entitlement under 
Subsection (b) is increased by an amount equal to the difference 
between the amount to which the district is entitled under Section 
42.155, 42.158, or 42.2515, as applicable, for that school year and 
the amount to which the district was entitled under the applicable
[that] section for the 2009-2010 school year[:
			[(A)  the 2005-2006 school year, if the amount 
determined for the district under Subsection (b) is determined 
under Subsection (b)(1)(A); or
			[(B)  the 2006-2007 school year, if the amount 
determined for the district under Subsection (b) is determined 
under Subsection (b)(1)(B) or (C)]; and
		(2)  if for any school year the district is not entitled 
to an allotment under Section 42.155 or 42.158 or additional state 
aid under Section 42.2515 or is entitled to a lesser allotment or 
less additional state aid under the applicable [that] section than 
the allotment or additional state aid to which the district was 
entitled under the applicable [that] section for the 2009-2010 
school year [on which the district's entitlement under Subsection 
(b) is based], the district's entitlement under Subsection (b) is 
reduced by an amount equal to the difference between the amount to 
which the district was entitled under Section 42.155, 42.158, or 
42.2515, as applicable, for the 2009-2010 [2005-2006 or 2006-2007] 
school year[, as appropriate based on whether the district's 
entitlement under Subsection (b) is determined under Subsection 
(b)(1)(A), (B), or (C),] and the amount to which the district is 
entitled under the applicable section [Section 42.158] for the 
current school year.
	(12)  In SECTION 1.19 of the bill, in amended Section 
42.2516, Education Code (page 10, line 69, through page 11, line 
40), strike deleted Subsections (f-1), (f-2), and (f-3) and  
substitute the following:
	(f-1)  The commissioner shall, in accordance with rules 
adopted by the commissioner, adjust the amount of a school 
district's local revenue derived from maintenance and operations 
tax collections, as calculated for purposes of determining the 
amount of state revenue to which the district is entitled under this 
section, if the district, for the 2010 [2007] tax year or a 
subsequent tax year:
		(1)  adopts an exemption under Section 11.13(n), Tax 
Code, that was not in effect for the 2009 [2005 or 2006] tax year, or 
eliminates an exemption under Section 11.13(n), Tax Code,  that was 
in effect for the 2009 [2005 or 2006] tax year;
		(2)  adopts an exemption under Section 11.13(n), Tax 
Code, at a greater or lesser percentage than the percentage in 
effect for the district for the 2009 [2005 or 2006] tax year;
		(3)  grants an exemption under an agreement authorized 
by Chapter 312, Tax Code, that was not in effect for the 2009 [2005 
or 2006] tax year, or ceases to grant an exemption authorized by 
that chapter that was in effect for the 2009 [2005 or 2006] tax 
year; or
		(4)  agrees to deposit taxes into a tax increment fund 
created under Chapter 311, Tax Code, under a reinvestment zone 
financing plan that was not in effect for the 2009 [2005 or 2006] 
tax year, or ceases depositing taxes into a tax increment fund 
created under that chapter under a reinvestment zone financing plan 
that was in effect for the 2009 [2005 or 2006] tax year.
	(f-2)  The rules adopted by the commissioner under 
Subsection (f-1) must:    
		(1)  require the commissioner to determine, as if this 
section did not exist, the effect under Chapter 41 and this chapter 
of a school district's action described by Subsection (f-1)(1), 
(2), (3), or (4) on the total state revenue to which the district 
would be entitled or the cost to the district of purchasing 
sufficient attendance credits to reduce the district's wealth per 
student to the equalized wealth level; and
		(2)  require an increase or reduction in the amount of 
state revenue to which a school district is entitled under 
Subsection (b) that is substantially equivalent to any change in 
total state revenue or the cost of purchasing attendance credits 
that would apply to the district if this section did not exist.
	(f-3)  An adjustment made by the commissioner under the rules 
adopted under Subsection (f-1) is final and may not be appealed.
	(13)  In ARTICLE 1 of the bill (page 12, between lines 19 and 
20), insert the following appropriately numbered SECTION:
	SECTION 1.___.  Subchapter E, Chapter 42, Education Code, is 
amended by adding Section 42.25161 to read as follows:
	Sec. 42.25161.  ADDITIONAL STATE AID FOR SOUTH TEXAS 
INDEPENDENT SCHOOL DISTRICT.  (a)  The commissioner shall provide 
South Texas Independent School District with the amount of state 
aid necessary to ensure that the district receives an amount of 
state and local revenue per student in weighted average daily 
attendance that is at least $135 greater than the amount the 
district would have received per student in weighted average daily 
attendance during the 2009-2010 school year under this chapter, as 
it existed on January 1, 2009, at a maintenance and operations tax 
rate equal to the product of the state compression percentage 
multiplied by the maintenance and operations tax rate adopted by 
the district for the 2005 tax year, provided that the district 
imposes a maintenance and operations tax at that rate.
	(b)  The commissioner may adopt rules necessary to implement 
this section.
	(c)  A determination by the commissioner under this section 
is final and may not be appealed.
	(14)  In SECTION 1.25 of the bill, in added Section 
42.451(a), Education Code (page 14, line 1), between "system" and 
the period, insert ", including all current weights and adjustments 
provided under this chapter and any additional weights and 
adjustments recommended by the committee".
	(15)  In SECTION 1.25 of the bill, in added Section 42.451, 
Education Code (page 14, lines 2-26), strike added Subsection (b) 
and substitute the following:
	(b)  The committee is composed of 15 members appointed as 
follows:    
		(1)  two members of the senate, appointed by the 
lieutenant governor;
		(2)  two members of the house of representatives, 
appointed by the speaker of the house of representatives;
		(3)  the commissioner of education;                                    
		(4)  three school district superintendents and two 
school district business officials, each currently employed in this 
state and each appointed jointly by the lieutenant governor and the 
speaker of the house of representatives;
		(5)  one representative from the business community or 
the public, appointed by the lieutenant governor;
		(6)  one representative from the business community or 
the public, appointed by the speaker of the house of 
representatives; and
		(7)  three representatives from the business community 
or the public, at least one of whom has one or more children who 
currently attend public school in this state, appointed by the 
governor.
	(16)  In SECTION 1.25 of the bill, in added Section 
42.455(c), Education Code (page 14, line 65), between "Board," and 
"the comptroller", insert "the Texas Education Agency,".
	(17)  In SECTION 1.25 of the bill, in added Section 
42.455(d), Education Code (page 15, line 1), immediately following 
the period, insert "To the extent the review duplicates the study of 
funding elements otherwise required by Section 42.007, the review 
replaces that study."
	(18)  In SECTION 3.01 of the bill (page 19, between lines 24 
and 25), insert the following:
	(d)  Section 40, Chapter 1504 (H.B. 6), Acts of the 77th 
Legislature, Regular Session, 2001, is repealed.
	(19)  Add the following appropriately numbered SECTIONS to 
ARTICLE 3 of the bill:
	SECTION 3.___.  For purposes of interpreting and 
implementing Section 825.406, Government Code, the Teacher 
Retirement System of Texas may not consider salaries of personnel 
paid in whole or in part from education stabilization funds 
distributed to school districts under the American Recovery and 
Reinvestment Act of 2009 (Pub. L. No. 111-5) as being paid from 
federal funds.
	SECTION 3.___.  The commissioner of education shall provide 
school districts with the maximum flexibility permitted under 
federal law in the administration of education stabilization funds 
distributed under the American Recovery and Reinvestment Act of 
2009 (Pub. L. No. 111-5).
	(20)  Renumber existing SECTIONS in the bill accordingly.