By: Paxton	S.B. No. 1658
	(In the Senate - Filed March 8, 2013; March 20, 2013, read
	first time and referred to Committee on Education; April 16, 2013,
	reported adversely, with favorable Committee Substitute by the
	following vote:  Yeas 7, Nays 0; April 16, 2013, sent to printer.)
	COMMITTEE SUBSTITUTE FOR S.B. No. 1658	By:  Paxton

	A BILL TO BE ENTITLED
	AN ACT
	relating to the effect of certain state aid on school districts
	required to take action to equalize wealth under the school finance
	system.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  The heading to Section 41.0041, Education Code,
	is amended to read as follows:
	Sec. 41.0041.  EFFECT OF [ADDITIONAL] STATE AID [FOR TAX
	REDUCTION].
	SECTION 2.  Subsections (b), (c), and (d), Section 41.0041,
	Education Code, are amended to read as follows:
	(b)  When the commissioner initially identifies a school
	district under Section 41.004 as having a wealth per student for a
	school year that exceeds the equalized wealth level, the
	commissioner shall estimate:
	(1)  the amount of state revenue to which the district
	is entitled under Chapter 42 [Section 42.2516] for that school
	year; and
	(2)  the cost to the district to purchase attendance
	credits under Subchapter D in an amount sufficient to reduce the
	district's wealth per student to the equalized wealth level for
	that school year.
	(c)  If the commissioner determines that the amount
	described by Subsection (b)(1) exceeds the amount described by
	Subsection (b)(2), the commissioner shall notify the district of
	the commissioner's determination.  In lieu of exercising an option
	described by Section 41.003, the district's board of trustees may
	authorize the commissioner to withhold from the state revenue to
	which the district is entitled under Chapter 42 [Section 42.2516]
	an amount equal to the amount described by Subsection (b)(2).
	(d)  In calculating the amount of state revenue to be
	withheld from a school district under this section, the
	commissioner shall calculate the cost for the district to reduce
	the district's wealth per student to the equalized wealth level
	using the final attendance and tax rate data for the school year and
	shall award the district any available credit or discount under
	Subchapter D as if the district had exercised the option under
	Section 41.003(3) in a timely manner.  If the final amount
	calculated for the cost for the district to reduce the district's
	wealth per student to the equalized wealth level for a school year
	exceeds the amount of state revenue to which the district is
	entitled under Chapter 42 [Section 42.2516] for that year:
	(1)  the commissioner shall:
	(A)  withhold the entire amount of state revenue
	to which the district is entitled under Chapter 42 [Section
	42.2516] for that year; and
	(B)  withhold the additional amount of the cost
	for the district to reduce the district's wealth per student to the
	equalized wealth level for that year from the state revenue to which
	the district is entitled under Chapter 42 [Section 42.2516] for a
	subsequent school year, or if the additional amount exceeds the
	amount of state revenue to which the district is entitled, add the
	difference to the cost of the attendance credits that the district
	must purchase in the subsequent year; and
	(2)  the district is not required to take any further
	action to reduce its wealth per student for that year.
	SECTION 3.  Subsection (a), Section 57.32, Chapter 4 (S.B.
	1), Acts of the 82nd Legislature, 1st Called Session, 2011, is
	amended to read as follows:
	(a)  Effective September 1, 2017, the following provisions
	of the Education Code are repealed:
	(1)  [Section 41.0041;
	[(2)]  Subsections (b), (b-1), (b-2), (c), (d), (e),
	(f), (f-1), (f-2), (f-3), and (i), Section 42.2516;
	(2) [(3)]  Section 42.25161;
	(3) [(4)]  Subsection (c), Section 42.2523;
	(4) [(5)]  Subsection (g), Section 42.2524;
	(5) [(6)]  Subsection (c-1), Section 42.253; and
	(6) [(7)]  Section 42.261.
	SECTION 4.  This Act takes effect September 1, 2013.
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