By: Bernal H.B. No. 1017       A BILL TO BE ENTITLED   AN ACT   relating to a study of the impact and feasibility of adopting   average daily membership when determining the entitlement of a   school district or open-enrollment charter school.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  (a)  The commissioner of education shall conduct   a study of the impact and feasibility of adopting average daily   membership when determining the entitlement of a school district or   open-enrollment charter school.          (b)  The commissioner of education shall establish an   advisory committee to assist the commissioner of education in   conducting the study. The advisory committee must be composed of:                (1)  the following representatives appointed by the   commissioner of education:                      (A)  one representative of a school district that   is considered a "major urban" district, as defined by the Texas   Education Agency;                      (B)  one representative of a school district that   is considered a "major suburban" district, as defined by the Texas   Education Agency;                      (C)  one representative of a school district that   is considered an "other central city" district, as defined by the   Texas Education Agency;                      (D)  one representative of a school district that   is considered an "other central city suburban" district, as defined   by the Texas Education Agency;                      (E)  one representative of a school district that   is considered an "independent town" district, as defined by the   Texas Education Agency;                      (F)  one representative of a school district that   is considered a "non-metropolitan: fast growing" district, as   defined by the Texas Education Agency;                      (G)  one representative of a school district that   is considered a "non-metropolitan: stable" district, as defined by   the Texas Education Agency;                      (H)  one representative of a school district that   is considered a "rural" district, as defined by the Texas Education   Agency;                      (I)  one or more representatives from an   open-enrollment charter school;                      (J)  one or more representatives from   organizations interested in the effect of chronic absenteeism;                      (K)  public school finance experts;                      (L)  one or more representatives from the Texas   Demographic Center; and                      (M)  agency staff, as appropriate.          (c)  The commissioner of education, with the assistance of   the advisory committee, shall study:                (1)  the impact of transitioning from average daily   attendance to average daily membership on entitlements for school   districts and open-enrollment charter schools and the state school   finance system, disaggregated by all student groups served by the   districts and open-enrollment charter schools, including   categories of ethnicity, socioeconomic status, sex, populations   eligible for allotments under Subchapter C, Chapter 48, Education   Code, and populations served by special programs, including   students in special education programs under Subchapter A, Chapter   29, Education Code; and                (2)  the statutory and administrative changes that   would be necessary to effectively calculate district entitlements   under Subsection (c)(1);          (d)  In studying the adoption of a new model for entitlement   calculations, the commissioner of education and the advisory   committee must compare the benefits and costs among different types   of districts, including comparisons between:                (1)  "major urban" districts, as defined by the Texas   Education Agency;                (2)  "major suburban" districts, as defined by the   Texas Education Agency;                (3)  "other central city" districts, as defined by the   Texas Education Agency;                (4)  "other central city suburban" districts, as   defined by the Texas Education Agency;                (5)  "independent town" districts, as defined by the   Texas Education Agency;                (6)  "non-metropolitan: fast growth" districts, as   defined by the Texas Education Agency;                (7)  "non-metropolitan: stable" districts, as defined   by the Texas Education Agency;                (8)  "rural" districts, as defined by the Texas   Education Agency; and                (9)  open-enrollment charter districts.          (e)  The commissioner of education and the advisory   committee shall prepare a report that:                (1)  forecasts the fiscal impact to the State to   transition from the current school finance system that utilizes   average daily attendance to the systems described in Subsection   (c)(1) for a period of five years;                (2)  evaluates relevant academic research regarding   the connection between attendance and academic success, and methods   and their cost to improve attendance in chronically absent   populations; and                (3)  make recommendations regarding:                      (A)  methods for transitioning away from   utilizing average daily attendance as a system of funding   distribution to using a system that is dependent on both student   enrollment and student attendance in a manner that offers funding   stability;                      (B)  phasing in a new approach under Subsection   (c)(1) in a manner that would lessen the overall cost burden to the   state; and                      (C)  appropriate ways to consider enrollment when   determining entitlement calculations, including establishing   average daily membership as a calculation model;          (f)  The commissioner of education may partner with school   districts, open-enrollment charter schools, or other appropriate   entities for assistance and to obtain information necessary to   conduct the study. A state agency, school district, or   open-enrollment charter school shall assist the commissioner of   education if the commissioner of education requests information or   assistance in conducting the study.          (g)  Not later than December 1, 2022, the commissioner of   education shall submit to the governor, lieutenant governor,   members of the texas senate, speaker of the house of   representatives and members of the Texas house of representatives   the report prepared under Subsection (e) of this section.          SECTION 2.  This Act expires September 1, 2023.          SECTION 3.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution. If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2021.