By: Linebarger H.B. No. 609
73R3014 CAE-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to public school finance.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 14.063(b), Education Code, is amended to
1-5 read as follows:
1-6 (b) Each school district is entitled to an annual allotment
1-7 for the purposes provided under Section 14.064 of this code equal
1-8 to its unadjusted average daily attendance multiplied by<:>
1-9 <(1)> $30 <for the 1992-1993 school year, or a greater
1-10 amount provided by appropriation;>
1-11 <(2) $35 for the 1993-1994 school year, or a greater
1-12 amount provided by appropriation;>
1-13 <(3) $40 for the 1994-1995 school year, or a greater
1-14 amount provided by appropriation;>
1-15 <(4) $45 for the 1995-1996 school year, or a greater
1-16 amount provided by appropriation; and>
1-17 <(5) $50 for the 1996-1997 school year and for each
1-18 school year thereafter>, or a greater amount provided by
1-19 appropriation.
1-20 SECTION 2. Subchapter A, Chapter 16, Education Code, is
1-21 amended by adding Section 16.0011 to read as follows:
1-22 Sec. 16.0011. STATE POLICY: MORATORIUM ON UNFUNDED
1-23 MANDATES. (a) A state educational mandate may not be enforced
1-24 against a school district if it is in addition to those mandates
2-1 imposed by law or rule on January 1, 1993, and if state funds are
2-2 not appropriated to fully cover the cost of the mandate, as
2-3 determined by the commissioner of education. In this section,
2-4 "state educational mandate" means a requirement imposed by statute
2-5 or rule that requires an expenditure of funds by a school district
2-6 and that would not have been required in the absence of the statute
2-7 or rule.
2-8 (b) This section expires September 1, 1995.
2-9 SECTION 3. Section 16.101, Education Code, is amended to
2-10 read as follows:
2-11 Sec. 16.101. Basic Allotment. For each student in average
2-12 daily attendance, not including the time students spend each day in
2-13 special education or vocational education programs for which an
2-14 additional allotment is made under Subchapter D of this chapter, a
2-15 district is entitled to an allotment of <$2,200 for the 1991-1992
2-16 school year,> $2,400 <for the 1992-1993 school year, $2,600 for the
2-17 1993-1994 school year, and $2,800 for the 1994-1995 school year and
2-18 thereafter> or a greater amount adopted by the foundation school
2-19 fund budget committee under Section 16.256 of this code <for the
2-20 1993-1994 school year and each school year thereafter>. A greater
2-21 amount for any school year may be provided by appropriation.
2-22 SECTION 4. Section 16.252, Education Code, is amended to
2-23 read as follows:
2-24 Sec. 16.252. LOCAL SHARE OF PROGRAM COST (TIER ONE). (a)
2-25 Each county education district's share of the Foundation School
2-26 Program shall be an amount determined by the following formula:
2-27 where:
3-1 "LFA" is the county education district's local share;
3-2 "TR" is a tax rate which for each hundred dollars of
3-3 valuation is <$0.72 for the 1991-1992 school year, $0.82 for the
3-4 1992-1993 school year,> $0.92 <for the 1993-1994 school year, and
3-5 $1.00 for each school year thereafter>; and
3-6 "DPV" is the taxable value of property in the county
3-7 education district.
3-8 (b) Each <for the prior tax year determined under Section
3-9 11.86 of this code.>
3-10 <(b) The commissioner of education shall adjust the values
3-11 reported in the official report of the comptroller as required by
3-12 Section 5.09(a), Property Tax Code to reflect reductions in taxable
3-13 value of property resulting from natural or economic disaster after
3-14 January 1 in the year in which the valuations are determined. The
3-15 decision of the commissioner of education shall be final. An
3-16 adjustment does not affect the local fund assignment of any other
3-17 county education district.>
3-18 <(c) Appeals of district values shall be held pursuant to
3-19 Subsection (e) of Section 11.86 of this code.>
3-20 <(d) A> county education district's <district shall raise
3-21 its total> local share of the foundation school program is
3-22 collected as provided by Subchapter G, Chapter 20, of this code,
3-23 and allocated<. The funds shall be reallocated to the school
3-24 districts in the county education district> in the manner
3-25 prescribed by Subchapter J of this chapter.
3-26 <(e) The commissioner of education shall hear appeals from
3-27 county education districts which have experienced a rapid decline
4-1 in tax base used in calculating the local fund assignment,
4-2 exceeding eight percent of prior year, that is beyond the control
4-3 of the board of trustees of the county education district. The
4-4 commissioner of education may adjust the county education
4-5 district's taxable values for local fund assignment purposes for
4-6 such losses in value exceeding eight percent and thereby adjust the
4-7 local fund assignment to reflect the local current year taxable
4-8 value. The decision of the commissioner of education shall be
4-9 final. An adjustment does not affect the local fund assignment of
4-10 any other county education district.>
4-11 <(f) For the purposes of Subsection (a) of this section, a
4-12 county education district's "DPV" for the 1991-1992 school year is
4-13 the sum of the taxable value of property for the prior tax year
4-14 determined under Section 11.86 of this code for the school
4-15 districts composing the county education district. This subsection
4-16 expires September 1, 1992.>
4-17 SECTION 5. Section 16.254, Education Code, is amended to
4-18 read as follows:
4-19 Sec. 16.254. Distribution of Foundation School Fund.
4-20 (a) The commissioner of education shall determine annually:
4-21 (1) the amount of money necessary to operate a
4-22 Foundation School Program in each school district;
4-23 (2) the amount of local funds due the school district
4-24 from the local fund assignment of the county education district;
4-25 and
4-26 (3) the amount of state available school funds
4-27 distributed to each school district.
5-1 (b) The commissioner shall base the determinations under
5-2 Subsection (a) of this section on the estimates provided to the
5-3 legislature under Section 16.2541 of this code for each school
5-4 district for each school year.
5-5 (c) Each school district is entitled to an amount equal to
5-6 the difference for that district between Subsection (a)(1) and the
5-7 sum of Subsections (a)(2) and (a)(3) of this section.
5-8 (d) The commissioner shall approve warrants to each school
5-9 district equaling the amount of its entitlement except as provided
5-10 by this section. Warrants for all money expended according to the
5-11 provisions of this chapter shall be approved and transmitted to
5-12 treasurers or depositories of school districts in the same manner
5-13 that warrants for state payments are transmitted.
5-14 (e) The commissioner shall recompute the amount to which the
5-15 district is entitled under Subsection (c) of this section if a
5-16 school district's tax rate is less than the limit authorized under
5-17 Section 16.2541 of this code or if the commissioner has knowledge
5-18 that the district's average daily attendance is less than the
5-19 number used for the average daily attendance estimate under Section
5-20 16.2541 of this code. The amount to which a district is entitled
5-21 under this section may not exceed the amount to which the district
5-22 would be entitled at the district's tax rate for the final year of
5-23 the preceding biennium, or a greater tax rate provided by
5-24 appropriation, and the commissioner shall recompute the amount to
5-25 which a district is entitled to the extent necessary. The
5-26 commissioner shall approve warrants to the school in the amount
5-27 that results from the new computation. An amount equal to the
6-1 difference between the initial allocation and the amount of the
6-2 warrants shall be transferred to a special account in the
6-3 foundation school fund known as the reserve account.
6-4 (f) Amounts transferred to the reserve account under
6-5 Subsection (e) of this section shall be used in the succeeding
6-6 fiscal year to finance increases in allocations to school districts
6-7 under Subsection (h) of this section. If the amount in the reserve
6-8 account is less than the amount of the increases under Subsection
6-9 (h) of this section for the second year of a state fiscal biennium,
6-10 the commissioner shall certify the amount of the difference to the
6-11 foundation school fund budget committee not later than January 1 of
6-12 the second year of the state fiscal biennium. The committee shall
6-13 propose to the legislature that the certified amount be transferred
6-14 to the foundation school fund from the economic stabilization fund
6-15 and appropriated for the purpose of increases in appropriations
6-16 under Subsection (h) of this section.
6-17 (g) If the legislature fails during the regular session to
6-18 enact the transfer and appropriation proposed under Subsection (f)
6-19 of this section and there are not funds available under Subsection
6-20 (i) of this section, the commissioner shall determine a basic
6-21 allotment that results in school district entitlements under the
6-22 allocation formulas in this chapter that are equal to the amount
6-23 available for distribution from the foundation school fund. Each
6-24 district's entitlement is reduced to the amount to which the
6-25 district is entitled under the allocation formulas using the basic
6-26 allotment determined by the commissioner. The following fiscal
6-27 year, a district's entitlement under this section is increased by
7-1 an amount equal to the reduction made under this subsection.
7-2 (h) Not later than January 1 each year, the commissioner
7-3 shall determine the actual amount of state funds to which each
7-4 school district is entitled under the allocation formulas in this
7-5 chapter for the current school year and shall compare that amount
7-6 with the amount of the warrants issued to each district for that
7-7 year. If the amount of the warrants differs from the amount to
7-8 which a district is entitled because of variations in student
7-9 enrollment or property value, the commissioner shall adjust the
7-10 district's entitlement for the next fiscal year accordingly.
7-11 (i) The legislature may appropriate funds necessary for
7-12 increases under Subsection (h) of this section from funds that the
7-13 comptroller of public accounts, at any time during the fiscal year,
7-14 finds are available.
7-15 (j) The commissioner shall compute for each school district
7-16 the total amount by which the district's allocation of state funds
7-17 is increased or reduced under Subsection (h) of this section and
7-18 shall certify that amount to the district.
7-19 (k) If in any school year the amount in the reserve account
7-20 exceeds the amount necessary for adjustments under this section,
7-21 the commissioner shall determine a guaranteed yield that results in
7-22 school district entitlements under the allocation formulas in this
7-23 chapter that are equal to the amount available from the foundation
7-24 school fund, including the excess amount in the reserve account.
7-25 Each district's entitlement is increased to the amount to which the
7-26 district is entitled under the allocation formulas using the
7-27 guaranteed yield determined by the commissioner. The commissioner
8-1 shall make the adjustments authorized by this subsection by the
8-2 earliest possible date in the school year.
8-3 (l) The commissioner of education shall compute for each
8-4 school district the total amount, if any, by which the district's
8-5 total revenue is reduced from one school year to the next because
8-6 of a change in the method of finance under this chapter. The
8-7 commissioner shall certify the amount of the reduction to the
8-8 school district for use in determining the school district's
8-9 rollback rate under Section 26.08, Tax Code <The commissioner of
8-10 education shall then grant to each school district from the
8-11 Foundation School Program appropriation the amount of funds
8-12 necessary to provide the difference between Subdivision (1) and the
8-13 sum of Subdivisions (2) and (3) of Subsection (a) of this section.>
8-14 <(c) The commissioner shall approve warrants to each school
8-15 district equaling the amount of its grant. Warrants for all money
8-16 expended according to the provisions of this chapter shall be
8-17 approved and transmitted to treasurers or depositories of school
8-18 districts in the same manner as warrants for state apportionment
8-19 are transmitted.>
8-20 <(d) Notwithstanding any other provision of this chapter, if
8-21 for any year the total state's share of the Foundation School
8-22 Program, as determined under this chapter, exceeds the total amount
8-23 appropriated for that year, the commissioner shall reduce the total
8-24 amount of state funds allocated to each district by an amount
8-25 determined by a method under which the application of the same
8-26 number of cents of increase in tax rate applied to the taxable
8-27 value of property of each district, as determined under Section
9-1 11.86 of this code, results in a levy for each district equal to
9-2 the amount deducted from that district's allocation.>
9-3 <(e) The commissioner of education shall compute for each
9-4 school district the total amount by which the district's allocation
9-5 of state funds is reduced under Subsection (d) of this section and
9-6 shall certify that amount to the district>.
9-7 SECTION 6. Subchapter G, Chapter 16, Education Code, is
9-8 amended by adding Section 16.2541 to read as follows:
9-9 Sec. 16.2541. ESTIMATES REQUIRED. (a) Not later than
9-10 October 1 of each even-numbered year:
9-11 (1) the Central Education Agency shall submit to the
9-12 foundation school fund budget committee and the legislature an
9-13 estimate of student enrollment by school district for the following
9-14 biennium; and
9-15 (2) the comptroller of public accounts shall submit to
9-16 the foundation school fund budget committee and the legislature an
9-17 estimate of the total value of all taxable property in the state as
9-18 determined under Section 11.86 of this code for the following
9-19 biennium.
9-20 (b) The Central Education Agency and the comptroller of
9-21 public accounts shall update the information provided to the
9-22 legislature under Subsection (a) of this section not later than
9-23 March 1 of each odd-numbered year.
9-24 SECTION 7. Section 16.302(a), Education Code, is amended to
9-25 read as follows:
9-26 (a) Each school district is guaranteed a specified amount
9-27 per weighted student in state and local funds for each cent of tax
10-1 effort over that required for the local fund assignment of the
10-2 county education district in which the school district is located
10-3 up to the maximum level specified in this subchapter. The amount
10-4 of state support, subject only to the maximum amount under Section
10-5 16.303 of this code, is determined by the formula:
10-6 where:
10-7 "GYA" is the guaranteed yield amount of state funds to be
10-8 allocated to the district;
10-9 "GL" is the dollar amount guaranteed level of state and local
10-10 funds per weighted student per cent of tax effort, which is $20.35
10-11 <$21.50 for the 1991-1992 school year, $22.50 for the 1992-1993
10-12 school year, $26 for the 1993-1994 school year, and $28 for each
10-13 school year thereafter>, or a greater amount for any year provided
10-14 by appropriation, or a greater amount adopted by the foundation
10-15 school fund budget committee under Section 16.256(d) of this code
10-16 for the 1993-1994 or 1994-1995 school year or thereafter;
10-17 "WADA", except as provided by Section 16.206 of this code, is
10-18 the number of weighted students in average daily attendance, which
10-19 is calculated by dividing the sum of the school district's
10-20 allotments under Subchapters C and D of this chapter, less any
10-21 allotments to the district for transportation, career ladder
10-22 supplements, or technology and 50 percent of the adjustment under
10-23 Section 16.102 of this code, by the basic allotment for the
10-24 applicable year;
10-25 "DTR" is the district enrichment and facilities tax rate of
10-26 the school district, which is determined by dividing the total
10-27 amount of taxes collected by the school district for the applicable
11-1 school year by the quotient of the district's taxable value of
11-2 property as determined under Section 11.86 of this code divided by
11-3 100; and
11-4 "LR" is the local revenue, which is determined by multiplying
11-5 "DTR" by the quotient of the district's taxable value of property
11-6 as determined under Section 11.86 of this code divided by 100.
11-7 SECTION 8. Section 16.501, Education Code, is amended to
11-8 read as follows:
11-9 Sec. 16.501. TIER ONE. (a) The commissioner of education
11-10 shall notify the person designated to distribute a county education
11-11 district's funds under a plan adopted under Section 20.945(b) of
11-12 this code <each county education district> of the total amount of
11-13 funds that each school district in the county education district is
11-14 entitled to receive under tier one of the Foundation School
11-15 Program.
11-16 (b) For tier one, the person notified under Subsection (a)
11-17 of this section <board of trustees of each county education
11-18 district> shall distribute the funds collected from the tax levied
11-19 in <by> the county education district under Section 20.945 of this
11-20 code to the school districts in the county education district on
11-21 the basis of the component districts' share of the taxable value of
11-22 property of the county education district with the provision that
11-23 no component district shall receive funds in excess of the cost of
11-24 tier one less the distribution of the available school fund.
11-25 (c)(1) Notwithstanding Subsection (b) of this section, for
11-26 the <1991-1992, 1992-1993, and> 1993-1994 school year <years>, for
11-27 tier one the person notified under Subsection (a) of this section
12-1 <board of trustees of each county education district> shall
12-2 distribute the funds collected from the tax levied in a <by the>
12-3 county education district under Section 20.945 of this code to the
12-4 school districts in the county education district as follows:
12-5 (A) to those school districts that did not
12-6 receive foundation school funds for the 1990-1991 school year in
12-7 which the amount of revenue per weighted student from local funds
12-8 and the available school fund for the 1990-1991 school year exceeds
12-9 the total amount of revenue per weighted student to which the
12-10 district is entitled under the Foundation School Program at a tax
12-11 rate equal to the maximum tax rate authorized under Section 20.09
12-12 of this code, <the county education district shall distribute> an
12-13 amount shall be distributed equal to the difference between the
12-14 amount of revenue per weighted student in the district in the
12-15 1990-1991 school year from local funds and the available school
12-16 fund and the levy that results from the application of the maximum
12-17 rate authorized under Section 20.09 of this code to the district's
12-18 taxable value of property; and
12-19 (B) the <county education district shall
12-20 apportion the> remaining funds collected from the tax levy shall be
12-21 distributed to the <each> school districts <district> in the county
12-22 education district on the basis of each <the> component district's
12-23 <districts'> share of the taxable value of property of the county
12-24 education district with the provision that no component district
12-25 shall receive funds in excess of the cost of tier one less the
12-26 distribution of the available school fund.
12-27 (2) This subsection expires September 1, 1994.
13-1 (d) If the total amount available for distribution in a <by
13-2 the> county education district exceeds the county education
13-3 district's local share under Section 16.252 of this code, the
13-4 person who distributes funds under this section <county education
13-5 district> shall retain the excess amount for distribution in
13-6 succeeding years except as provided by Subsection (f) of this
13-7 section.
13-8 (e) If the total amount available for distribution in a <by
13-9 the> county education district is less than the county education
13-10 district's local share under Section 16.252 of this code, the
13-11 distributions shall be made under rules adopted by the commissioner
13-12 of education.
13-13 (f) If the total amount available for distribution in a
13-14 county education district exceeds the product of the tax rate
13-15 designated as "TR" under Section 16.252(a) of this code multiplied
13-16 by the quotient of the taxable value of property, as determined
13-17 under Section 11.86 of this code, of the county education district
13-18 at the 95th percentile of taxable property per student in average
13-19 daily attendance divided by 100, the person who distributes funds
13-20 under this section shall remit an amount equal to that excess to
13-21 the comptroller, who shall deposit that amount to the credit of the
13-22 foundation school fund.
13-23 (g) If the total amounts received by the comptroller under
13-24 this section exceed the maximum amount that the legislature is
13-25 authorized to redistribute under the Texas Constitution, the
13-26 comptroller shall refund the excess to the districts that generated
13-27 the funds as provided by rule of the comptroller.
14-1 SECTION 9. Section 20.09(a), Education Code, is amended to
14-2 read as follows:
14-3 (a) Except as provided by Subsections (c) and (d) of this
14-4 section, a school district may not impose a total tax rate on the
14-5 $100 valuation of taxable property that results in a levy that
14-6 exceeds the levy that results from applying the <following> rate of
14-7 $0.58 to the district's taxable value of property as determined
14-8 under Section 11.86 of this code<:>
14-9 <(1) $0.78 for the 1991 tax year;>
14-10 <(2) $0.68 for the 1992 tax year;>
14-11 <(3) $0.58 for the 1993 tax year; and>
14-12 <(4) $0.50 for each subsequent tax year>.
14-13 SECTION 10. Sections 20.941(b) and (d), Education Code, are
14-14 amended to read as follows:
14-15 (b) Two adjacent counties together constitute a single
14-16 county education district if:
14-17 (1) one of the counties consists of a countywide
14-18 school district that includes territory in the adjacent county; and
14-19 (2) the school districts in the adjacent county are
14-20 assigned to the county consisting of a countywide district by the
14-21 1990-1991 Texas School Directory. <The school districts that are
14-22 assigned to a county in each of the following groups of counties in
14-23 the 1990-1991 Texas School Directory published by the Central
14-24 Education Agency constitute a county education district:>
14-25 <(1) Midland and Andrews>
14-26 <(2) Victoria and Calhoun>
14-27 <(3) Armstrong, Carson, and Randall>
15-1 <(4) Liberty and Chambers>
15-2 <(5) Bailey and Cochran>
15-3 <(6) Gaines, Borden, Dawson, Lubbock, Lynn, Terry, and
15-4 Yoakum>
15-5 <(7) Howard and Glasscock>
15-6 <(8) Hale and Hockley>
15-7 <(9) Schleicher, Tom Green, Sterling, and Irion>
15-8 <(10) Hidalgo and Kenedy>
15-9 <(11) Kent, Crosby, Fisher, Garza, and Scurry>
15-10 <(12) King, Cottle, Knox, and Dickens>
15-11 <(13) Limestone and Falls>
15-12 <(14) Lipscomb, Gray, Hemphill, Hutchinson, Ochiltree,
15-13 and Roberts>
15-14 <(15) Mason, San Saba, and Llano>
15-15 <(16) Matagorda, Jackson, and Wharton>
15-16 <(17) Frio and McMullen>
15-17 <(18) Pecos, Crockett, Jeff Davis, Kinney, Presidio,
15-18 and Val Verde>
15-19 <(19) Bee and Refugio>
15-20 <(20) Sherman, Dallam, Hansford, Moore, and Potter>
15-21 <(21) Somervell, Bosque, Erath, Hill, and Johnson>
15-22 <(22) Kimble and Sutton>
15-23 <(23) Brewster and Terrell>
15-24 <(24) Upton, Crane, Ector, and Reagan>
15-25 <(25) Wheeler, Collingsworth, and Donley>
15-26 <(26) Loving, Winkler, Culberson, Reeves, and Ward>
15-27 <(27) Starr and Zapata>
16-1 <(28) Stonewall and Jones>
16-2 <(29) Aransas and San Patricio>
16-3 <(30) Leon and Anderson>
16-4 <(31) Panola and Shelby>
16-5 (d) In this section, "weighted<:>
16-6 <(1) "Taxable value of property" is the value
16-7 determined under Section 11.86 of this code.>
16-8 <(2) "Weighted> student in average daily attendance"
16-9 has the meaning assigned by Section 16.302 of this code.
16-10 SECTION 11. Section 20.945, Education Code, is amended to
16-11 read as follows:
16-12 Sec. 20.945. LEVY OF TAX; ASSESSMENT AND COLLECTION OF
16-13 TAXES. (a) An annual ad valorem tax is imposed in each <The board
16-14 of trustees of a> county education district at the rate provided
16-15 for the district's <shall levy a tax at a rate necessary to collect
16-16 its> local fund assignment under Section 16.252 of this code <not
16-17 later than September 1 of each year or as soon thereafter as
16-18 practicable>.
16-19 (b) The boards of the component districts of each county
16-20 education district shall adopt a plan for the assessment,
16-21 collection, and distribution of the tax imposed by this section.
16-22 The plan must be approved by the board of each component district.
16-23 The plan must designate a person to file the plan with the
16-24 comptroller and the commissioner of education. A certification,
16-25 signed by the president of each board, that the plan adopted is the
16-26 most cost-efficient alternative must be attached to the copy filed
16-27 with the comptroller.
17-1 (c) The comptroller shall adopt rules prescribing methods of
17-2 accounting for the tax imposed by this section and shall prescribe
17-3 and furnish forms for periodic reports.
17-4 (d) The person designated under a plan adopted under
17-5 Subsection (b) of this section to supervise the assessment and
17-6 collection of taxes shall file with the comptroller at the times
17-7 and in the manner required by the rules sworn reports accounting
17-8 for all county education district ad valorem taxes, collected or
17-9 delinquent, on the tax roll for county education district taxes.
17-10 (e) The comptroller shall periodically examine the records
17-11 of each appraisal district or tax assessor-collector to verify the
17-12 accuracy of reports required under this section. <Unless the board
17-13 of trustees of the county education district provides for the
17-14 assessment and collection of taxes levied by the district through a
17-15 contract with one or more appraisal districts or taxing units, each
17-16 component school district within a county education district shall
17-17 be responsible for the assessment and collection of taxes levied by
17-18 the board of trustees of the county education district on all
17-19 taxable property within the component school district at the same
17-20 time and in the same manner as it assesses and collects its own
17-21 taxes. Each component school district shall bear the cost of
17-22 assessing and collecting taxes levied by the county education
17-23 district, and shall have the legal authority to take actions on
17-24 behalf of the county education district to ensure the efficient
17-25 collection of these taxes.>
17-26 SECTION 12. Subchapter G, Chapter 20, Education Code, is
17-27 amended by adding Section 20.9451 to read as follows:
18-1 Sec. 20.9451. REVENUE DEPOSIT, DISTRIBUTION, AND USE. (a)
18-2 Each person designated under a plan adopted under Section 20.945(b)
18-3 of this code to collect a county education district's taxes shall
18-4 deposit the taxes collected in the depository designated under the
18-5 plan. Except for amounts deposited to the credit of the foundation
18-6 school fund under Section 16.501(f) of this code, the deposits are
18-7 held in trust for the county education district.
18-8 (b) The funds deposited in a county education district's
18-9 account may be used only for distributions to the district under
18-10 Section 16.501 of this code, to refund overpayments or erroneous
18-11 payments of county education district taxes, and for other expenses
18-12 directly related to the assessment and collection of county
18-13 education district taxes.
18-14 SECTION 13. Section 20.946, Education Code, is amended to
18-15 read as follows:
18-16 Sec. 20.946. RESIDENCE HOMESTEAD EXEMPTIONS. (a) The
18-17 <Subject to Subsection (f) of this section, the> voters of a county
18-18 education district may exempt from ad valorem taxation a percentage
18-19 of the market value of the residence homestead of a married or
18-20 unmarried adult, including one living alone, at an election held in
18-21 the district as provided by this section.
18-22 (b) <At the first regular meeting of the board, the board
18-23 shall order an election to be held on August 10, 1991, on the
18-24 question of exempting from ad valorem taxation by the district a
18-25 percentage of the market value of a residence homestead in the
18-26 district. The amount of the exemption shall be the maximum
18-27 percentage exemption as provided by Article VIII, Section 1-b(e),
19-1 of the Texas Constitution. If the exemption is approved, it takes
19-2 effect only if this section remains in effect after August 10,
19-3 1991, under Subsection (f) of this section.>
19-4 <(c)> If an <the> exemption has <is> not been adopted in
19-5 county education district <at the 1991 election> and the board of
19-6 each component school district in the county education district
19-7 <subsequently> receives a valid petition requesting an election for
19-8 the purpose of adopting the exemption, each of those boards shall
19-9 order an <the board shall hold another> election on the
19-10 proposition. The petition must be signed by a number of registered
19-11 voters of the county education district equal to at least five
19-12 percent of the registered voters residing in the district and must
19-13 state the percentage of market value to be exempted. The boards
19-14 <board> shall order the election to be held on an authorized
19-15 election date, as prescribed by Section 41.001, Election Code,
19-16 occurring not later than 60 days after the latest date on which the
19-17 petition is received by a <the> board. If at the election the
19-18 majority of the votes are cast against the proposition, another
19-19 election for the same purpose may not be held earlier than the
19-20 corresponding uniform election date three years after the date of
19-21 the preceding election ordered under this subsection.
19-22 (c) <(d)> At an election to authorize the exemption, the
19-23 ballot shall be prepared to permit voting for or against the
19-24 proposition: "The exemption of ____ percent of the market value of
19-25 the residence homestead from ad valorem taxation in (name of the
19-26 county education district)."
19-27 (d) <(e)> For elections ordered under this section, each
20-1 component school district shall conduct the election and deliver
20-2 the canvass of the vote to the county commissioners court <county
20-3 education district board of trustees>. The commissioners court
20-4 <county education district board> shall conduct a final canvass not
20-5 later than the second day after the receipt of all school district
20-6 election returns, and prepare a tabulation of the total number of
20-7 votes received in each school district and the sum of the school
20-8 district totals. The proposition is approved only if the majority
20-9 of the votes reflected in the sum of school district totals favors
20-10 the proposition. The commissioners court <county education
20-11 district board> shall declare the results and retain the election
20-12 returns and tabulations for the period for preserving precinct
20-13 election records.
20-14 <(f) This section remains in effect after August 10, 1991,
20-15 only if the constitutional amendment proposed by the 72nd
20-16 Legislature, Regular Session, providing an exemption of a
20-17 percentage of the market value of a residence homestead from ad
20-18 valorem taxation in county education districts by election of the
20-19 voters, is adopted. If that amendment is not adopted, this section
20-20 has no effect.>
20-21 SECTION 14. Section 20.950, Education Code, is amended to
20-22 read as follows:
20-23 Sec. 20.950. DISABLED AND ELDERLY HOMESTEAD EXEMPTIONS. (a)
20-24 The <Subject to Subsection (f) of this section, the> voters of a
20-25 county education district may exempt from ad valorem taxation not
20-26 less than $3,000 of the appraised value of the residence homestead
20-27 of an individual who is disabled or is 65 or older at an election
21-1 held in the district as provided by this section.
21-2 (b) <At the first regular meeting of the board, the board
21-3 shall order an election to be held on August 10, 1991, on the
21-4 question of exempting from ad valorem taxation by the district an
21-5 amount of the market value of a residence homestead in the district
21-6 of an individual who is disabled or is 65 or older. The amount of
21-7 the exemption for individuals who are disabled and the amount of
21-8 the exemption for individuals who are 65 or older shall each be
21-9 $10,000. If the exemption is approved, it takes effect only if
21-10 this section remains in effect after August 10, 1991, under
21-11 Subsection (f) of this section.>
21-12 <(c)> If an <the> exemption has <is> not been adopted in
21-13 county education district <at the 1991 election> and the board of
21-14 each component school district in the county education district
21-15 <subsequently> receives a valid petition requesting an election for
21-16 the purpose of adopting the exemption, each of those boards shall
21-17 order an <the board shall hold another> election on the
21-18 proposition. The petition must be signed by a number of registered
21-19 voters of the county education district equal to at least five
21-20 percent of the registered voters residing in the district and must
21-21 state the amount to be exempted. The boards <board> shall order
21-22 the election to be held on an authorized election date, as
21-23 prescribed by Section 41.001, Election Code, occurring not later
21-24 than 60 days after the latest date on which the petition is
21-25 received by a <the> board. If at the election the majority of the
21-26 votes are cast against the proposition, another election for the
21-27 same purpose may not be held earlier than the corresponding uniform
22-1 election date three years after the date of the preceding election
22-2 ordered under this subsection.
22-3 (c) <(d)> At an election to authorize the exemption, the
22-4 ballot shall be prepared to permit voting for or against the
22-5 proposition: "The exemption of $____ of the market value of the
22-6 residence homestead of an individual who is disabled and of $____
22-7 of the market value of the residence homestead of an individual who
22-8 is 65 or older from ad valorem taxation in (name of the county
22-9 education district)."
22-10 (d) <(e)> For elections ordered under this section, each
22-11 component school district shall conduct the election and deliver
22-12 the canvass of the vote to the county commissioners court <county
22-13 education district board of trustees>. The commissioners court
22-14 <county education district board> shall conduct a final canvass not
22-15 later than the second day after the receipt of all school district
22-16 election returns, and prepare a tabulation of the total number of
22-17 votes received in each school district and the sum of the school
22-18 district totals. The proposition is approved only if the majority
22-19 of the votes reflected in the sum of school district totals favors
22-20 the proposition. The commissioners court <county education
22-21 district board> shall declare the results and retain the election
22-22 returns and tabulations for the period for preserving precinct
22-23 election records.
22-24 <(f) This section remains in effect after August 10, 1991,
22-25 only if the constitutional amendment proposed by the 72nd
22-26 Legislature, Regular Session, providing an exemption of not less
22-27 than $3,000 of the market value of a residence homestead of an
23-1 individual who is disabled or who is 65 or older from ad valorem
23-2 taxation in county education districts by election of the voters,
23-3 is adopted. If that amendment is not adopted, this section has no
23-4 effect.>
23-5 SECTION 15. Section 20.951, Education Code, is amended to
23-6 read as follows:
23-7 Sec. 20.951. TANGIBLE PERSONAL PROPERTY. (a) The <Subject
23-8 to Subsection (f) of this section, the> voters of a county
23-9 education district may provide for the taxation of tangible
23-10 personal property exempt under Section 11.14(a), Tax Code, at an
23-11 election held in the district as provided by this section.
23-12 (b) <At the first regular meeting of the board, the board
23-13 shall order an election to be held on August 10, 1991, on the
23-14 question of taxation by the district of tangible personal property
23-15 exempt under Section 11.14(a), Tax Code. If the proposition is
23-16 approved, it takes effect only if this section remains in effect
23-17 after August 10, 1991, under Subsection (f) of this section.>
23-18 <(c)> If a <the> proposition providing for such taxation has
23-19 <is> not been adopted <at the 1991 election> and the board of each
23-20 component school district in the county education district
23-21 <subsequently> receives a valid petition requesting an election for
23-22 the purpose of providing for the taxation of tangible personal
23-23 property exempt under Section 11.14(a), Tax Code, each of those
23-24 boards shall order an <the board shall hold another> election on
23-25 the proposition. The petition must be signed by a number of
23-26 registered voters of the district equal to at least five percent of
23-27 the registered voters residing in the district. The boards <board>
24-1 shall order the election to be held on an authorized election date,
24-2 as prescribed by Section 41.001, Election Code, occurring not later
24-3 than 60 days after the latest date on which the petition is
24-4 received by a <the> board. If at the election the majority of the
24-5 votes are cast against the proposition, another election for the
24-6 same purpose may not be held earlier than the corresponding uniform
24-7 election date three years after the date of the preceding election
24-8 ordered under this subsection.
24-9 (c) <(d)> At an election to authorize the exemption, the
24-10 ballot shall be prepared to permit voting for or against the
24-11 proposition: "The taxation of all tangible personal property, other
24-12 than manufactured homes, in (name of the county education district)
24-13 that is not held or used for the production of income."
24-14 (d) <(e)> For elections ordered under this section, each
24-15 component school district shall conduct the election and deliver
24-16 the canvass of the vote to the county commissioners court <county
24-17 education district board of trustees>. The commissioners court
24-18 <county education district board> shall conduct a final canvass not
24-19 later than the second day after the receipt of all school district
24-20 election returns, and prepare a tabulation of the total number of
24-21 votes received in each school district and the sum of the school
24-22 district totals. The proposition is approved only if the majority
24-23 of the votes reflected in the sum of school district totals favors
24-24 the proposition. The commissioners court <county education
24-25 district board> shall declare the results and retain the election
24-26 returns and tabulations for the period for preserving precinct
24-27 election records.
25-1 <(f) This section remains in effect after August 10, 1991,
25-2 only if the constitutional amendment proposed by the 72nd
25-3 Legislature, Regular Session, providing for the taxation of
25-4 tangible personal property, except structures used or occupied as a
25-5 residence or property used or held for the production of income, in
25-6 county education districts by election of the voters is adopted.>
25-7 SECTION 16. Chapter 1, Tax Code, is amended by adding
25-8 Section 1.13 to read as follows:
25-9 Sec. 1.13. ASSESSMENT AND COLLECTION OF COUNTY EDUCATION
25-10 DISTRICT TAXES. (a) A duty imposed by this title on the governing
25-11 body of a taxing unit shall be performed for a county education
25-12 district by a person designated under a plan adopted under Section
25-13 20.945(b), Education Code. A power granted by this title to the
25-14 governing body of a taxing unit may be exercised for a county
25-15 education district by a person designated under a plan adopted
25-16 under Section 20.945(b), Education Code.
25-17 (b) Except as otherwise provided by this title, a reference
25-18 in this title to the presiding officer of a governing body is a
25-19 reference to the person designated for that purpose under a plan
25-20 adopted under Section 20.945(b), Education Code, to the extent that
25-21 the reference applies to a county education district.
25-22 SECTION 17. Section 6.26, Tax Code, is amended by adding
25-23 Subsection (k) to read as follows:
25-24 (k) This section does not apply to the collection of county
25-25 education district taxes.
25-26 SECTION 18. Section 6.27(b), Tax Code, is amended to read as
25-27 follows:
26-1 (b) The county assessor-collector is entitled to a
26-2 reasonable fee, which may not exceed the actual costs incurred, for
26-3 assessing and collecting taxes for a taxing unit pursuant to
26-4 Subdivisions (1) through (3) of Subsection (a) of Section 6.23 of
26-5 this code other than county education district taxes.
26-6 SECTION 19. Section 6.29(a), Tax Code, is amended to read as
26-7 follows:
26-8 (a) A taxing unit, other than a county or a county education
26-9 district, that has its own collector shall require him to give bond
26-10 conditioned on the faithful performance of his duties. To be
26-11 effective, the bond must be made payable to and must be approved by
26-12 the governing body of the unit in an amount determined by the
26-13 governing body. The governing body may require a new bond at any
26-14 time, and failure to give new bond within a reasonable time after
26-15 demand is a ground for removal from office. The governing body may
26-16 prescribe additional requirements for the bond.
26-17 SECTION 20. Section 11.13(m), Tax Code, is amended to read
26-18 as follows:
26-19 (m) In this section:
26-20 (1) "Disabled" means under a disability for purposes
26-21 of payment of disability insurance benefits under Federal Old-Age,
26-22 Survivors, and Disability Insurance.
26-23 (2) "School district" means a political subdivision
26-24 organized to provide general elementary and secondary public
26-25 education or<. "School district" includes> a county education
26-26 district <established by the consolidation of the local school
26-27 districts in its boundaries for the limited purpose of exercising a
27-1 portion of the taxing power previously authorized by the voters in
27-2 those school districts>. "School district" does not include a
27-3 junior college district or a political subdivision organized to
27-4 provide special education services.
27-5 SECTION 21. Section 25.19(b), Tax Code, is amended to read
27-6 as follows:
27-7 (b) The chief appraiser shall separate real from personal
27-8 property and include in the notice for each:
27-9 (1) a list of the taxing units in which the property
27-10 is taxable;
27-11 (2) the appraised value of the property in the
27-12 preceding year;
27-13 (3) the assessed and taxable value of the property in
27-14 the preceding year for each taxing unit taxing the property;
27-15 (4) the appraised value of the property for the
27-16 current year and the kind and amount of each partial exemption, if
27-17 any, approved for the current year;
27-18 (5) if the appraised value is greater than it was in
27-19 the preceding year:
27-20 (A) the effective tax rate for taxes other than
27-21 county education district taxes that would be announced pursuant to
27-22 Section 26.04 of this code if the total values being submitted to
27-23 the appraisal review board were to be approved by the board with an
27-24 explanation that that rate would raise the same amount of revenue
27-25 from property taxed in the preceding year as the unit raised for
27-26 those purposes in the preceding year;
27-27 (B) the amount of tax that would be imposed on
28-1 the property on the basis of the rate described by Paragraph (A) of
28-2 this subdivision; and
28-3 (C) a statement that the governing body of the
28-4 unit may not adopt a rate that will increase tax revenues for
28-5 operating purposes from properties taxed in the preceding year
28-6 without publishing notice in a newspaper that it is considering a
28-7 tax increase and holding a hearing for taxpayers to discuss the tax
28-8 increase;
28-9 (6) in italic typeface, the following statement: "The
28-10 Texas Legislature does not set the amount of your local taxes other
28-11 than county education district taxes. Your property tax burden is
28-12 decided by your locally elected officials, and all inquiries
28-13 concerning your taxes should be directed to those officials";
28-14 (7) a brief explanation of the time and procedure for
28-15 protesting the value;
28-16 (8) the date and place the appraisal review board will
28-17 begin hearing protests; and
28-18 (9) a brief explanation that:
28-19 (A) the governing body of each taxing unit
28-20 decides whether or not taxes on the property will increase and the
28-21 appraisal district only determines the value of the property; and
28-22 (B) a taxpayer who objects to increasing taxes
28-23 and government expenditures should complain to the governing bodies
28-24 of the taxing units and only complaints about value should be
28-25 presented to the appraisal office and the appraisal review board.
28-26 SECTION 22. Chapter 26, Tax Code, is amended by adding
28-27 Section 26.011 to read as follows:
29-1 Sec. 26.011. PROVISIONS EXCLUDED FOR COUNTY EDUCATION
29-2 DISTRICT TAX. Sections 26.04, 26.041, 26.05, 26.051, 26.06, 26.07,
29-3 and 26.08 do not apply to the setting of the county education
29-4 district tax rate.
29-5 SECTION 23. Section 31.10, Tax Code, is amended by adding
29-6 Subsection (e) to read as follows:
29-7 (e) This section does not apply to the collection of county
29-8 education district taxes.
29-9 SECTION 24. Section 31.11(a), Tax Code, is amended to read
29-10 as follows:
29-11 (a) If a taxpayer applies to the tax collector of a taxing
29-12 unit for a refund of an overpayment or erroneous payment of taxes
29-13 and the auditor for the unit determines that the payment was
29-14 erroneous or excessive, the tax collector shall refund the amount
29-15 of the excessive or erroneous payment from available current tax
29-16 collections or from funds appropriated by the unit for making
29-17 refunds. For taxes other than county education district taxes,
29-18 <However,> if the amount of the refund exceeds $500, the collector
29-19 may not make the refund unless the governing body of the taxing
29-20 unit also determines that the payment was erroneous or excessive
29-21 and approves the refund.
29-22 SECTION 25. Sections 16.011, 16.503, 20.941(c), 20.942,
29-23 20.943, 20.944, 20.9441, 20.947, and 20.948, Education Code, are
29-24 repealed.
29-25 SECTION 26. (a) Effective September 1, 1993, all county
29-26 education district boards are abolished.
29-27 (b) A county education district board may not adopt a tax
30-1 rate for the 1993 tax year.
30-2 SECTION 27. (a) Not later than August 30, 1993, the
30-3 component school districts of each county education district
30-4 established by this Act shall adopt a plan as provided by Section
30-5 20.945(b), Education Code, as added by this Act.
30-6 (b) On August 31, 1993, each county education district shall
30-7 transfer its funds to the persons designated under the plans
30-8 adopted under Subsection (a) of this section for the counties
30-9 included in the district for deposit in the depositories designated
30-10 by the applicable plan. If more than one county is included in the
30-11 district, the district shall divide the funds among the counties in
30-12 the manner provided by rule of the commissioner of education. Each
30-13 deposit is held in trust under Section 20.9451, Education Code, as
30-14 added by this Act, for the county education district of each
30-15 county.
30-16 (c) On September 1, 1993, any assets of a county education
30-17 district other than funds are transferred to its component school
30-18 districts in the manner and amounts provided by rule of the
30-19 commissioner of education.
30-20 (d) On September 1, 1993, the contracts and other
30-21 liabilities of a county education district are transferred to its
30-22 component school districts in the manner and amounts, including
30-23 joint obligations, provided by rule of the commissioner of
30-24 education.
30-25 (e) The records of the board of a county education district
30-26 shall be maintained as provided by rule of the commissioner of
30-27 education.
31-1 (f) The component school districts of a county education
31-2 district abolished by this Act may collect and use or distribute
31-3 taxes imposed by the county education district that are delinquent
31-4 in the manner provided by rule of the commissioner of education.
31-5 SECTION 28. This Act takes effect August 31, 1993, except
31-6 that the component school districts of a county education district
31-7 established by this Act are authorized immediately to adopt a plan
31-8 under Section 27(a) of this Act immediately and the commissioner of
31-9 education is authorized immediately to adopt rules required by
31-10 Section 27 of this Act. This Act applies to taxes imposed on or
31-11 after January 1, 1993.
31-12 SECTION 29. This Act takes effect only if the constitutional
31-13 amendment proposed by _J.R. No. ____, 73rd Legislature, Regular
31-14 Session, 1993, is approved by the voters.
31-15 SECTION 30. The importance of this legislation and the
31-16 crowded condition of the calendars in both houses create an
31-17 emergency and an imperative public necessity that the
31-18 constitutional rule requiring bills to be read on three several
31-19 days in each house be suspended, and this rule is hereby suspended.