TITLE 19.EDUCATION

Part 2. TEXAS EDUCATION AGENCY

Chapter 61. SCHOOL DISTRICTS

Subchapter CC. COMMISSIONER'S RULES CONCERNING SCHOOL FACILITIES

19 TAC §61.1034

The Texas Education Agency (TEA) proposes an amendment to §61.1034, concerning school facilities. The section establishes provisions related to the allotment for new instructional facilities as authorized under Texas Education Code (TEC), §42.158. The proposed amendment replaces an earlier version that was filed as proposed in the March 19, 2004, issue of the Texas Register (29 TexReg 2840), which has been withdrawn. Like the earlier version, the proposed amendment would modify existing provisions in order to accommodate an electronic, web-based application for funding. The new proposed changes restore language regarding the requirements to send documents by certified mail that were inadvertently omitted in the originally proposed amendment. Additional changes also clarify the deadline for submitting on-line applications and the supporting documentation.

Senate Bill 4, 76th Texas Legislature, 1999, created the new instructional facility allotment (NIFA) within the first tier of the Foundation School Program pursuant to TEC, Chapter 42. The NIFA provides funding of $250 for each student in average daily attendance at a new instructional facility during the first school year of operation, and $250 for each new student in attendance at the facility for the second school year. The specifications for this program were adopted in 19 TAC §61.1034 in January 2000 and have not been amended since. The proposed amendment to 19 TAC §61.1034 would add language related to campus qualifications and the new electronic, web-based application and would remove outdated language related to specifications for the 1999-2000 school year. This proposed amendment restores language inadvertently omitted in the original proposal regarding sending documents by certified mail, clarifies the submission deadline, and makes minor punctuation corrections.

Language is added in subsection (a)(1) to specify the qualification requirements for first-year, follow-up, and one-year funding.

Language in subsection (b) is modified to establish provisions related to the first-year application, including electronic submissions and submission of materials by certified mail; to address the deadline for submitting on-line applications and supporting documents; and to specify requirements for second-year applications.

Language in subsection (c)(3) is deleted to remove specifications related to the 1999-2000 school year. Minor punctuation changes are proposed in subsection (c)(5).

Joe Wisnoski, Deputy Associate Commissioner for School Finance and Fiscal Analysis, has determined that for the first five-year period the amendment is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section.

Mr. Wisnoski has determined that for each year of the first five years the amendment is in effect the public benefit anticipated as a result of enforcing the section would be the streamlining of the application process. School districts would submit their applications for funding via a secure web-based application. There will not be an effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the amendment as proposed.

Comments on the proposal may be submitted to Cristina De La Fuente-Valadez, Policy Coordination, 1701 North Congress Avenue, Austin, Texas 78701, (512) 475-1497. Comments may also be submitted electronically to rules@tea.state.tx.us or faxed to (512) 463-0028. All requests for a public hearing on the proposed amendment submitted under the Administrative Procedure Act must be received by the commissioner of education not more than 15 calendar days after notice of a proposed change in the section has been published in the Texas Register .

The amendment is proposed under the Texas Education Code, §42.158(f), which authorizes the commissioner of education to adopt rules as necessary to implement the new instructional facilities allotment.

The amendment implements the Texas Education Code, §42.158.

§61.1034.New Instructional Facility Allotment.

(a) Definitions and eligibility. The following definitions and eligibility criteria apply to the new instructional facility allotment (NIFA) in accordance with Texas Education Code (TEC), §42.158.

(1) A facility eligible for the NIFA is a newly constructed instructional site (campus)[ , not occupied prior to the 1999-2000 school year, ] used for teaching the curriculum required by TEC, Chapter 28. To qualify for first-year funding, a new campus will not have been occupied in the prior school year. To qualify for follow-up funding, the campus will have been occupied for the first time in the prior school year and funded for the NIFA for that first year. A special case of one-year funding pertains to facilities that were occupied for the first time in the prior school year but did not receive NIFA funds because of a failure to apply. Any such eligible campus will receive funds for one year of operation only.

(2) The facility must have its own principal or will receive an accountability rating through the standard or the optional alternative rating procedures as described in the most current accountability manuals, published by the Texas Education Agency (TEA).

(3) The facility must have its own unique campus ID number as designated by the TEA, its own record of expenditures that is not a subset of another school budget, and attendance data that can be reported for those students who are assigned to its campus.

(4) With the exception of a covered walkway connecting the new facility to another building, the new facility must be physically separate from other existing school structures.

(5) The facility must have its own assigned instructional staff and instructional program distinct from other facilities, and cannot be a program for students enrolled in another public school (summer school, evening school, etc.).

(6) Expansion or renovation of existing facilities, as well as portable and temporary structures, are not eligible for the NIFA.

(b) Application process. School districts must complete the TEA's on-line [ an ] application process requesting funding pursuant to the NIFA.

(1) The initial (first-year) application must include the following:

(A) the electronic submission of the TEA's on-line application for initial funding; and

(B) the submission of the following materials by certified mail through the U.S. Postal Service or other common postal carrier:

(i) a brief description and photograph of the newly constructed instructional site; and

(ii) a copy of a legal document that clearly describes the nature and dates of the new construction.

[(A) a written request for funds;]

[(B) a brief description and photograph of the newly constructed instructional site;]

[(C) a copy of contracts that document the nature and dates of the construction; and]

[(D) an estimate of the number of students in average daily attendance (ADA).]

(2) On-line [ For the 1999-2000 school year, ] applications must be submitted electronically no later than July 15 and supporting documents must be postmarked no later than July 15 of the year preceding the applicable school year [ by the last day in December in order to qualify for the allotment. For school years beginning with 2000-2001, applications must be postmarked by July 15 ].

[(3) All applications must be submitted to the TEA by certified mail through the U.S. Postal Service or other common postal carrier.]

(3) [ (4) ] Second-year applications require only the electronic submission of the TEA's on-line application for follow-up funding no later than July 15 of the year preceding the applicable school year [ an estimate of students in ADA ].

(c) Costs and payments. The cost and payments for the NIFA are determined by the commissioner of education.

(1) The allotment for the NIFA is a part of the cost of the first tier of the Foundation School Program (FSP). This allotment is not counted in the calculation of weighted average daily attendance (WADA) for the second tier of the FSP.

(2) If, for all eligible districts combined, the total cost of the NIFA exceeds the amount appropriated, each allotment is reduced so that the total amount to be distributed equals the amount appropriated. Reductions to allotments are made by applying the same number of cents of tax rate in each district to the district's taxable value of property so that the reduced total for all districts equals the amount appropriated. For each district, the taxable value of property is the property value certified by the Comptroller of Public Accounts for the preceding school year as determined under Government Code, Chapter 403, Subchapter M, or, if applicable, a reduced property value that reflects either a rapid decline pursuant to TEC, §42.2521, or a grade level adjustment pursuant to TEC, §42.106.

(3) Allocations [ For the 1999-2000 school year, districts not subject to the requirements of wealth equalization pursuant to TEC, Chapter 41, will begin receiving payments of the NIFA in January based on the estimate of ADA submitted in the funding application. For the remainder of 1999-2000 and for subsequent years, allocations ] will be made in conjunction with allotments for the FSP in accordance with the district's payment class. For districts that are not subject to the requirements of TEC, Chapter 41, and do not receive payments from the Foundation School Fund, NIFA distributions will correspond to the schedule for payment class 3.

(4) For districts that are required to reduce wealth pursuant to TEC, Chapter 41, any NIFA funds for which the district is eligible are applied as credits to the amounts owed to equalize wealth.

(5) For all districts receiving the NIFA, a final (settle-up) amount earned is determined by the commissioner when final counts of ADA , as reported through the Public Education Information Management System (PEIMS) , are available for the eligible campus[ , ] at the close of business for the school year.

(6) The amount of funds to be distributed for the NIFA to a school district is in addition to any other state aid entitlements.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on June 7, 2004.

TRD-200403701

Cristina De La Fuente-Valadez

Director, Policy Coordination

Texas Education Agency

Earliest possible date of adoption: July 18, 2004

For further information, please call: (512) 475-1497