By: Johnson, Jerry H.B. No. 639
73R3224 CAS-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 16.002(b), Education Code, is amended to
1-5 read as follows:
1-6 (b) The Foundation School Program consists of two tiers to
1-7 provide for the purposes specified by Subsection (a) of this
1-8 section. The first tier guarantees sufficient financing for all
1-9 school districts to provide a basic program of education that meets
1-10 accreditation and other legal standards. The second tier provides
1-11 a guaranteed equal yield system of financing to provide all school
1-12 districts with substantially equal access to funds to provide an
1-13 enriched program and additional funds for facilities.
1-14 SECTION 2. Subchapter A, Chapter 16, Education Code, is
1-15 amended by adding Section 16.004 to read as follows:
1-16 Sec. 16.004. SCOPE OF PROGRAM. Under the Foundation School
1-17 Program, a school district may receive state financial aid for
1-18 programs, services, facilities, and equipment, including personnel
1-19 salaries, current operating expenses, categorical programs, and
1-20 transportation services.
1-21 SECTION 3. Section 16.007(a), Education Code, is amended to
1-22 read as follows:
1-23 (a) Each school district <and each county education
1-24 district> shall participate in the Public Education Information
2-1 Management System (PEIMS) and shall provide through that system
2-2 information required for the administration of this chapter and of
2-3 other appropriate provisions of this code.
2-4 SECTION 4. Section 16.008, Education Code, is amended to
2-5 read as follows:
2-6 Sec. 16.008. EQUALIZED FUNDING ELEMENTS. (a) The
2-7 Legislative Education Board shall adopt rules, subject to
2-8 appropriate notice and opportunity for public comment, for the
2-9 calculation for each year of a biennium of the qualified funding
2-10 elements <under Section 16.256(e) of this code> necessary to
2-11 achieve the state policy under Section 16.001 of this code <not
2-12 later than the 1994-1995 school year and for each school year
2-13 thereafter>. The board shall report the funding elements
2-14 calculated to the commissioner of education and the legislature.
2-15 (b) The funding elements shall include:
2-16 (1) a basic allotment for the purposes of Section
2-17 16.101 of this code that represents the cost per student of a
2-18 regular education program that meets the basic criteria for an
2-19 accredited program including all mandates of law and regulation;
2-20 (2) the formula or other provision for the cost of
2-21 education index designed to reflect the geographic variation in
2-22 known resource costs and costs of education beyond the control of
2-23 school districts for the purposes of Sections 16.102 and 16.103 of
2-24 this code; and
2-25 (3) appropriate program cost differentials and other
2-26 funding elements for the programs authorized under Subchapter D of
2-27 this chapter, with the program funding level expressed as dollar
3-1 amounts and as weights applied to the adjusted basic allotment for
3-2 the appropriate year <Beginning in 1992, not later than October 1
3-3 preceding each regular session of the legislature, the board shall
3-4 report the equalized funding elements to the foundation school fund
3-5 budget committee, the commissioner of education, and the
3-6 legislature>.
3-7 SECTION 5. Section 16.101, Education Code, is amended to
3-8 read as follows:
3-9 Sec. 16.101. Basic Allotment. For each student in average
3-10 daily attendance, not including the time students spend each day in
3-11 special education or vocational education programs for which an
3-12 additional allotment is made under Subchapter D of this chapter, a
3-13 district is entitled to an allotment of $2,400 <$2,200 for the
3-14 1991-1992 school year, $2,400 for the 1992-1993 school year,
3-15 $2,600> for the 1993-1994 school year<,> and $2,440 <$2,800> for
3-16 the 1994-1995 school year <and thereafter or a greater amount
3-17 adopted by the foundation school fund budget committee under
3-18 Section 16.256 of this code for the 1993-1994 school year> and each
3-19 school year thereafter. A greater amount for any school year may
3-20 be provided by appropriation.
3-21 SECTION 6. Section 16.1031, Education Code, is amended to
3-22 read as follows:
3-23 Sec. 16.1031. USE OF SMALL DISTRICT ADJUSTMENTS IN
3-24 CALCULATING SPECIAL ALLOTMENTS. In determining the amount of a
3-25 special allotment under Subchapter D of this chapter for a district
3-26 to which Section 16.103 of this code applies, a district's adjusted
3-27 basic allotment is considered to be the district's adjusted
4-1 allotment determined under Section 16.103. <This section expires
4-2 September 1, 1993.>
4-3 SECTION 7. Section 16.104, Education Code, is amended to
4-4 read as follows:
4-5 Sec. 16.104. SPARSITY ADJUSTMENT. Notwithstanding Sections
4-6 16.101<, 16.102,> and 16.103 of this code, a school district that
4-7 has fewer than 130 students in average daily attendance shall be
4-8 provided an adjusted basic allotment on the basis of 130 average
4-9 daily attendance if it offers a kindergarten through grade 12
4-10 program and has prior or current year's average daily attendance of
4-11 at least 90 students or is 30 miles or more by bus route from the
4-12 nearest high school district. A district offering a kindergarten
4-13 through grade 8 program whose prior or current year's average daily
4-14 attendance was at least 50 students or which is 30 miles or more by
4-15 bus route from the nearest high school district shall be provided
4-16 an adjusted basic allotment on the basis of 75 average daily
4-17 attendance. An average daily attendance of 60 students shall be
4-18 the basis of providing the adjusted basic allotment if a district
4-19 offers a kindergarten through grade 6 program and has prior or
4-20 current year's average daily attendance of at least 40 students or
4-21 is 30 miles or more by bus route from the nearest high school
4-22 district. <This section expires September 1, 1993.>
4-23 SECTION 8. Section 16.152(c), Education Code, is amended to
4-24 read as follows:
4-25 (c) Funds allocated under this section, other than an
4-26 indirect cost allotment established under State Board of Education
4-27 rule, which shall not exceed 20 <15> percent, must be used in
5-1 providing remedial and compensatory education programs under
5-2 Section 21.557 of this code, and the district must account for the
5-3 expenditure of state funds by program and by campus. <Funds
5-4 allocated under this section, other than the indirect cost
5-5 allotment, shall only be expended to improve and enhance programs
5-6 and services funded under the regular education program.>
5-7 SECTION 9. Sections 16.156(c), (e), and (g), Education Code,
5-8 are amended to read as follows:
5-9 (c) Each district or county operating a regular
5-10 transportation system is entitled to an allotment based on the
5-11 daily cost per regular eligible pupil of operating and maintaining
5-12 the regular transportation system and the linear density of that
5-13 system as follows:
5-14 Linear Allocation Per Mile
5-15 Density Group of Approved Route
5-16 2.40 and above $1.91
5-17 1.65 to 2.40 1.67
5-18 1.15 to 1.65 1.48
5-19 .90 to 1.15 1.29
5-20 .65 to .90 1.17
5-21 .40 to .65 1.20
5-22 up to .40 0.91
5-23 <. In determining the cost, the commissioner shall give
5-24 consideration to factors affecting the actual cost of providing
5-25 these transportation services in each district or county. The
5-26 average actual cost is to be computed by the commissioner of
5-27 education and included for consideration by the Foundation School
6-1 Fund Budget Committee and the legislature in the General
6-2 Appropriations Act. The allotment per mile of approved route may
6-3 not exceed the amount set by appropriation.>
6-4 (e) The state commissioner of education may grant an amount
6-5 <set by appropriation> for private or commercial transportation for
6-6 eligible pupils from isolated areas. The need for this type of
6-7 transportation grant shall be determined on an individual basis and
6-8 the amount granted shall not exceed the least of $0.33 per mile,
6-9 $1,089 per student, or the actual cost. The grants shall be made
6-10 only in extreme hardship cases, and no grants shall be made if the
6-11 pupils live within two miles of an approved school bus route.
6-12 (g) A school district or county that provides special
6-13 transportation services for eligible handicapped pupils is entitled
6-14 to a state allocation equal to $1.44 per mile <paid on a previous
6-15 year's cost-per-mile basis. The maximum rate per mile allowable
6-16 shall be set by appropriation based on data gathered from the first
6-17 year of each preceding biennium>. Districts may use a portion of
6-18 their support allocation to pay transportation costs, if necessary.
6-19 The commissioner of education may grant an amount <set by
6-20 appropriation> for private transportation to reimburse parents or
6-21 their agents for transporting eligible handicapped pupils. The
6-22 grant may not exceed the lesser of $0.33 per mile or $1,089 per
6-23 student. The mileage allowed shall be computed along the shortest
6-24 public road from the pupil's home to school and back, morning and
6-25 afternoon. The need for this type transportation shall be
6-26 determined on an individual basis and shall be approved only in
6-27 extreme hardship cases.
7-1 SECTION 10. Subchapter D, Chapter 16, Education Code, is
7-2 amended by adding Section 16.161 to read as follows:
7-3 Sec. 16.161. FACILITIES OR OPERATIONS ALLOTMENT. (a) Each
7-4 district is entitled to an allotment equal to its unadjusted
7-5 average daily attendance multiplied by $168.
7-6 (b) A district shall use its allotment under this section
7-7 for the payment of principal and interest for bonded indebtedness,
7-8 capital outlay, capital projects, or for any legal purpose.
7-9 SECTION 11. Section 16.202, Education Code, is amended to
7-10 read as follows:
7-11 Sec. 16.202. Studies. On a biennial basis, the Legislative
7-12 Education Board and the Legislative Budget Board, with the
7-13 assistance of the <Educational Economic Policy Center and the>
7-14 Central Education Agency, shall complete each of the following
7-15 studies and develop recommended amounts where appropriate for each
7-16 year of the next biennium:
7-17 (1) a study of the fiscal neutrality of the system to
7-18 determine the status of the state and local finance system with
7-19 regard to the policies established under the provisions of Section
7-20 16.001 of this code, including recommendations for adjustments
7-21 necessary to maintain fiscal neutrality;
7-22 (2) the accountable costs per student to school
7-23 districts of providing educational programs, personnel, and other
7-24 operating costs that meet accreditation criteria and the provisions
7-25 of law and regulation;
7-26 (3) program cost differentials designed by program to
7-27 provide support for the added expense of high-cost courses or
8-1 programs for students participating in such courses or programs,
8-2 with the program funding level expressed as dollar amounts and as
8-3 weights applied to the adjusted basic allotment for the appropriate
8-4 year; and
8-5 (4) transportation and career ladder allotments<;>
8-6 <(5) the levels of tax effort necessary for each tier
8-7 of the Foundation School Program necessary to fulfill the
8-8 requirements of Sections 16.001 and 16.008 of this code; and>
8-9 <(6) capital outlay and debt service requirements and
8-10 formula elements for the requirements of Subchapter I of this
8-11 chapter or other provisions of this chapter>.
8-12 SECTION 12. Sections 16.251(a) and (b), Education Code, are
8-13 amended to read as follows:
8-14 (a) The sum of the basic allotment under Subchapter C of
8-15 this chapter, the special allotments under Subchapter D of this
8-16 chapter, and the guaranteed equal yield funds <allotments> under
8-17 Subchapter H, computed in accordance with the provisions of this
8-18 chapter, constitute the total cost of the Foundation School
8-19 Program.
8-20 (b) The program shall be financed by:
8-21 (1) ad valorem tax revenue generated by an equalized
8-22 uniform local school <county education> district effort;
8-23 (2) ad valorem tax revenue generated by local school
8-24 district effort in excess of the equalized uniform <county
8-25 education> district effort;
8-26 (3) state available school funds distributed in
8-27 accordance with law; and
9-1 (4) state funds appropriated for the purposes of
9-2 public school education and allocated to each district in an amount
9-3 sufficient to finance the cost of each district's Foundation School
9-4 Program not covered by other funds specified in this subsection.
9-5 SECTION 13. Section 16.252, Education Code, is amended to
9-6 read as follows:
9-7 Sec. 16.252. Local Share of Program Cost (Tier One). (a)
9-8 Each school <county education> district's share of tier one of the
9-9 statewide Foundation School Program costs under Subchapters C and D
9-10 of this chapter shall be an amount determined by the following
9-11 formula:
9-12 where:
9-13 "LFA" is the <county education> district's local share;
9-14 "TR" is a tax rate of $0.84 <which> for each hundred dollars
9-15 of valuation <is $0.72 for the 1991-1992 school year, $0.82 for the
9-16 1992-1993 school year, $0.92 for the 1993-1994 school year, and
9-17 $1.00 for each school year thereafter>; and
9-18 "DPV" is the taxable value of property in the <county
9-19 education> district for the prior tax year determined under Section
9-20 11.86 of this code.
9-21 (b) The commissioner of education shall adjust the values
9-22 reported in the official report of the comptroller as required by
9-23 Section 5.09(a), <Property> Tax Code, to reflect reductions in
9-24 taxable value of property resulting from natural or economic
9-25 disaster after January 1 in the year in which the valuations are
9-26 determined. The decision of the commissioner of education shall be
9-27 final. An adjustment does not affect the local fund assignment of
10-1 any other <county education> district.
10-2 (c) Appeals of district values shall be held pursuant to
10-3 Subsection (e) of Section 11.86 of this code.
10-4 (d) A <county education> district shall raise its total
10-5 local share under this section <of the foundation school program>.
10-6 <The funds shall be reallocated to the school districts in the
10-7 county education district in the manner prescribed by Subchapter J
10-8 of this chapter.>
10-9 (e) The commissioner of education shall hear appeals from
10-10 <county education> districts which have experienced a rapid decline
10-11 in tax base used in calculating the local fund assignment,
10-12 exceeding eight percent of prior year, that is beyond the control
10-13 of the board of trustees of the <county education> district. The
10-14 commissioner of education may adjust the <county education>
10-15 district's taxable values for local fund assignment purposes for
10-16 such losses in value exceeding eight percent and thereby adjust the
10-17 local fund assignment to reflect the local current year taxable
10-18 value. The decision of the commissioner of education shall be
10-19 final. An adjustment does not affect the local fund assignment of
10-20 any other <county education> district.
10-21 (f) The comptroller shall collect local tax funds from each
10-22 district in which the sum of the required tax effort for the
10-23 district's share of the foundation school program and the
10-24 distribution to the district from the available school fund is an
10-25 amount that is greater than the cost of the foundation school
10-26 program for the district. In that event, the comptroller shall
10-27 collect a percentage of the district's local fund assignment
11-1 revenue that is determined by dividing the total local fund
11-2 assignment revenue to be collected by the comptroller by the total
11-3 local fund assignment revenue collected by the district. Each
11-4 district required to shall forward an amount equal to that
11-5 percentage of the district's local fund assignment to the
11-6 comptroller according to a schedule established by the commissioner
11-7 of education and the comptroller. The comptroller shall deposit
11-8 the funds in the state treasury to the credit of the foundation
11-9 school fund. <For the purposes of Subsection (a) of this section,
11-10 a county education district's "DPV" for the 1991-1992 school year
11-11 is the sum of the taxable value of property for the prior tax year
11-12 determined under Section 11.86 of this code for the school
11-13 districts composing the county education district. This subsection
11-14 expires September 1, 1992.>
11-15 SECTION 14. Sections 16.254(a) and (b), Education Code, are
11-16 amended to read as follows:
11-17 (a) The commissioner of education shall determine annually:
11-18 (1) the amount of the <money necessary to operate a>
11-19 Foundation School Program costs under Subchapters C and D of this
11-20 chapter in each school district; and
11-21 (2) <the amount of local funds due the school district
11-22 from the local fund assignment of the county education district;
11-23 and>
11-24 <(3)> the amount of state available school funds
11-25 distributed to each school district.
11-26 (b) The commissioner of education shall then grant to each
11-27 school district from the Foundation School Program appropriation
12-1 the amount of funds necessary to provide the difference between
12-2 Subdivision (1) and Subdivision (2) <the sum of Subdivisions (2)
12-3 and (3)> of Subsection (a) of this section.
12-4 SECTION 15. Subchapter H, Chapter 16, Education Code, is
12-5 amended to read as follows:
12-6 SUBCHAPTER H. GUARANTEED EQUAL YIELD
12-7 PROGRAM (TIER TWO)
12-8 Sec. 16.301. PURPOSE. The purpose of the guaranteed equal
12-9 yield component of the Foundation School Program is to provide each
12-10 school district with the opportunity to supplement the basic
12-11 program at a level of its own choice and with access to additional
12-12 funds for facilities. An allotment under this subchapter may be
12-13 used for any legal purpose, including capital outlay and debt
12-14 service.
12-15 Sec. 16.302. EQUAL YIELD PROGRAM <ALLOTMENT>. (a) Each
12-16 school district is guaranteed an equal <a specified> amount of
12-17 $14.50 per weighted student <in state and local funds> for each
12-18 cent of tax effort, of the first $0.43 of tax effort, over that
12-19 required for the local fund assignment.
12-20 (b) The comptroller shall collect guaranteed equal yield
12-21 funds from each district in which the yield per weighted student
12-22 exceeds $14.50 for one cent of tax effort. In that event, the
12-23 comptroller shall collect a percentage of the district's guaranteed
12-24 equal yield funds that is determined by dividing the total
12-25 guaranteed equal yield funds to be collected by the comptroller by
12-26 the total guaranteed equal yield funds collected by the district.
12-27 A district shall forward an amount equal to that percentage of the
13-1 district's guaranteed equal yield funds to the comptroller
13-2 according to a schedule established by the commissioner of
13-3 education and the comptroller. The comptroller shall deposit that
13-4 amount in the guaranteed equal yield fund, which is established in
13-5 the state treasury. Guaranteed equal yield collections do not
13-6 include penalties, interest, or attorney's fees awarded to a
13-7 district in the collection of delinquent taxes.
13-8 (c) Each cent of a district's debt tax rate that is included
13-9 in the guaranteed yield program is equalized before any cent of the
13-10 district's maintenance and operations tax rate is deposited in the
13-11 guaranteed equal yield fund, except as provided by Section 20.10 of
13-12 this code.
13-13 (d) One or more times each month, on a schedule established
13-14 by the commissioner of education and the comptroller, the
13-15 comptroller shall distribute recaptured guaranteed equal yield
13-16 funds to each district whose yield is less than the guaranteed
13-17 amount, in an amount necessary to provide the district with the
13-18 amount guaranteed.
13-19 (e) If a district forwards an amount of the district's
13-20 guaranteed equal yield funds to the comptroller that is less than
13-21 the amount the district is required to forward to the comptroller
13-22 under this section, the district shall forward the difference to
13-23 the comptroller from the district's excess or other revenue, and
13-24 the district shall adjust the district's budget accordingly. If
13-25 the district does not forward the difference to the comptroller,
13-26 the comptroller shall notify the commissioner. If a district fails
13-27 to comply with this subsection, the commissioner may revoke the
14-1 district's accreditation or impose other sanctions on the district
14-2 as the commissioner determines necessary.
14-3 (f) If a district forwards an amount of the district's
14-4 guaranteed equal yield funds to the comptroller that is greater
14-5 than the amount the district is required to forward to the
14-6 comptroller under this section, the comptroller shall return the
14-7 excess amount to the district.
14-8 (g) For the purposes of this section, the number of weighted
14-9 students in average daily attendance in a district is calculated by
14-10 dividing the sum of the district's allotments under Subchapters C
14-11 and D of this chapter, less any allotments to the district for
14-12 transportation, career ladder supplements, or facilities, and 50
14-13 percent of the adjustment under Section 16.102 of this code, by the
14-14 basic allotment for the applicable year.
14-15 (h) In this section, "per weighted student" means per
14-16 weighted student in average daily attendance. <of the county
14-17 education district in which the school district is located up to
14-18 the maximum level specified in this subchapter. The amount of
14-19 state support, subject only to the maximum amount under Section
14-20 16.303 of this code, is determined by the formula:>
14-21 <where:>
14-22 <"GYA" is the guaranteed yield amount of state funds to be
14-23 allocated to the district;>
14-24 <"GL" is the dollar amount guaranteed level of state and
14-25 local funds per weighted student per cent of tax effort, which is
14-26 $21.50 for the 1991-1992 school year, $22.50 for the 1992-1993
14-27 school year, $26 for the 1993-1994 school year, and $28 for each
15-1 school year thereafter, or a greater amount for any year provided
15-2 by appropriation, or a greater amount adopted by the foundation
15-3 school fund budget committee under Section 16.256(d) of this code
15-4 for the 1993-1994 or 1994-1995 school year or thereafter;>
15-5 <"WADA", except as provided by Section 16.206 of this code,
15-6 is the number of weighted students in average daily attendance,
15-7 which is calculated by dividing the sum of the school district's
15-8 allotments under Subchapters C and D of this chapter, less any
15-9 allotments to the district for transportation, career ladder
15-10 supplements, or technology and 50 percent of the adjustment under
15-11 Section 16.102 of this code, by the basic allotment for the
15-12 applicable year;>
15-13 <"DTR" is the district enrichment and facilities tax rate of
15-14 the school district, which is determined by dividing the total
15-15 amount of taxes collected by the school district for the applicable
15-16 school year by the quotient of the district's taxable value of
15-17 property as determined under Section 11.86 of this code divided by
15-18 100; and>
15-19 <"LR" is the local revenue, which is determined by
15-20 multiplying "DTR" by the quotient of the district's taxable value
15-21 of property as determined under Section 11.86 of this code divided
15-22 by 100.>
15-23 <(b) Beginning with the 1993-1994 school year, if the
15-24 program cost differentials developed jointly by the Legislative
15-25 Education Board and the Legislative Budget Board under Section
15-26 16.203 of this code and the adjustments studied under Section
15-27 16.206 of this code are not adopted by the foundation school fund
16-1 budget committee or the commissioner of education, the amount
16-2 guaranteed under this section is an amount per student rather than
16-3 per weighted student and a school district's average daily
16-4 attendance ("ADA") under Section 16.006 of this code is substituted
16-5 for "WADA" in the formula under Subsection (a) of this section.>
16-6 <Sec. 16.303. LIMITATION ON ENRICHMENT AND FACILITIES TAX
16-7 RATE. The district enrichment and facilities tax rate ("DTR")
16-8 under Section 16.302 of this code may not exceed $0.45 or a greater
16-9 amount for 1993-1994 and 1994-1995 school years or thereafter as
16-10 adopted by the foundation school fund budget committee under
16-11 Section 16.256(d) of this code.>
16-12 Sec. 16.304. COMPUTATION OF AID FOR DISTRICT ON MILITARY
16-13 RESERVATION OR AT STATE SCHOOL. State assistance under this
16-14 subchapter for a school district located on a federal military
16-15 installation or at Moody State School is computed using the average
16-16 tax rate and property value per student of school districts in the
16-17 county, as determined by the commissioner of education.
16-18 SECTION 16. Section 11.86(a), Education Code, is amended to
16-19 read as follows:
16-20 (a) The comptroller shall conduct an annual study using
16-21 comparable sales and generally accepted auditing and sampling
16-22 techniques to determine the total value of all taxable property in
16-23 each <county education> school district <and each of its component
16-24 school districts>. The study shall determine the taxable value of
16-25 all property and of each category of property within the district
16-26 and the productivity value of all land that qualifies for appraisal
16-27 on the basis of its productive capacity and for which the owner has
17-1 applied for and received a productivity appraisal. In conducting
17-2 the study, the comptroller shall review the appraisal standards,
17-3 procedures, and methodology used by each appraisal district to
17-4 determine the taxable value of property in each school district.
17-5 The review must test the validity of the taxable values assigned to
17-6 each category of property by the appraisal district:
17-7 (1) using, if appropriate, samples selected through
17-8 generally accepted sampling techniques; and
17-9 (2) according to generally accepted standard
17-10 valuation, statistical compilation, and analysis techniques. If
17-11 the comptroller finds in the annual study that generally accepted
17-12 appraisal standards and practices were used by the appraisal
17-13 district in valuing a particular category of property, and that the
17-14 taxable values assigned to each category of property by the
17-15 appraisal district are valid, the appraisal roll value of that
17-16 category of property is presumed to represent taxable value. In
17-17 the absence of such a presumption, the comptroller shall estimate
17-18 the taxable value of that category of property using generally
17-19 accepted standard valuation, statistical compilation, and analysis
17-20 techniques. For the purposes of this section, "taxable value"
17-21 means market value less:
17-22 (1) the total dollar amount of any exemptions of
17-23 part but not all of the value of taxable property required by the
17-24 constitution or a statute that a district lawfully granted in the
17-25 year that is the subject of the study;
17-26 (2) the total dollar amount of any exemptions
17-27 granted within a reinvestment zone under agreements authorized by
18-1 the Property Redevelopment and Tax Abatement Act (Chapter 312, Tax
18-2 Code);
18-3 (3) the total dollar amount of any captured
18-4 appraised value of property that is located in a reinvestment zone
18-5 and that is eligible for tax increment financing under the Tax
18-6 Increment Financing Act (Chapter 311, Tax Code);
18-7 (4) the total dollar amount of any exemptions
18-8 granted under Section 11.251, Tax Code;
18-9 (5) the difference between the market value and
18-10 the productivity value of land that qualifies for appraisal on the
18-11 basis of its productive capacity, except that the productivity
18-12 value may not exceed the fair market value of the land;
18-13 (6) the portion of the appraised value of
18-14 residence homesteads of the elderly on which school district taxes
18-15 are not imposed in the year that is the subject of the study,
18-16 calculated as if the residence homesteads were appraised at the
18-17 full value required by law;
18-18 (7) a portion of the market value of property
18-19 not otherwise fully taxable by the district at market value because
18-20 of action required by statute or the Texas Constitution that, if
18-21 the tax rate adopted by the district is applied to it, produces an
18-22 amount equal to the difference between the tax that the district
18-23 would have imposed on the property if the property were fully
18-24 taxable at market value and the tax that the district is actually
18-25 authorized to impose on the property; and
18-26 (8) the market value of all tangible personal
18-27 property, other than manufactured homes, owned by a family or
19-1 individual and not held or used for the production of income.
19-2 SECTION 17. Section 20.01, Education Code, is amended to
19-3 read as follows:
19-4 Sec. 20.01. BONDS; PLEDGED FUNDS <AND BOND TAXES>. The
19-5 governing board of each independent school district (including, as
19-6 to each municipally controlled independent school district, the
19-7 city council or commission which has jurisdiction thereof), and the
19-8 governing board of each rural high school district, and the
19-9 commissioners court of every county, for and on behalf of each
19-10 common school district under its jurisdiction, shall be authorized
19-11 to issue negotiable coupon bonds for the construction and equipment
19-12 of school buildings in the district and the purchase of the
19-13 necessary sites therefor, and to levy <and pledge>, and cause to be
19-14 assessed and collected, annual ad valorem taxes at a rate that
19-15 entitles the district to funds under Chapter 16 of this code from
19-16 the foundation school program and the guaranteed equal yield
19-17 program sufficient to pay the principal of and interest on said
19-18 bonds as the same come due and to pledge those funds for that
19-19 purpose, subject to the provisions and restrictions of Section
19-20 20.04 of this code. Such bonds may be issued in various series or
19-21 issues, and shall mature serially or otherwise not more than 40
19-22 years from their date, and shall bear interest at such rate or
19-23 rates as shall be determined within the discretion of such
19-24 governing board or commissioners court. Said bonds, and the
19-25 interest coupons appertaining thereto, shall be negotiable
19-26 instruments, and they may be made redeemable prior to maturity, and
19-27 may be issued in such form, denominations, and manner, and under
20-1 such terms, conditions, and details, and shall be signed and
20-2 executed, as provided by such governing board or commissioners
20-3 court in the resolution or order authorizing the issuance of said
20-4 bonds. All bonds shall be sold to the highest bidder for not less
20-5 than their par value and accrued interest.
20-6 SECTION 18. Section 20.04, Education Code, is amended to
20-7 read as follows:
20-8 Sec. 20.04. Bond and Tax Elections. (a) No such bonds
20-9 shall be issued and none of the aforesaid taxes shall be levied
20-10 unless authorized by a majority of the resident, qualified electors
20-11 of the district, who own taxable property therein and who have duly
20-12 rendered the same for taxation, voting at an election held for such
20-13 purpose, at the expense of the district, in accordance with the
20-14 <Texas> Election Code, except as hereinafter provided. Each such
20-15 election shall be called by resolution or order of such governing
20-16 board or commissioners court, which shall set forth the date of the
20-17 election, the proposition or propositions to be submitted and voted
20-18 on, the polling place or places, and any other matters deemed
20-19 necessary or advisable by such governing board or commissioners
20-20 court.
20-21 (b) In each proposition submitted to authorize the issuance
20-22 of bonds there shall be included the question of whether the
20-23 governing board or commissioners court shall be authorized to levy
20-24 <and pledge>, and cause to be assessed and collected, annual ad
20-25 valorem taxes at a rate that entitles the district to funds under
20-26 Chapter 16 of this code from the foundation school program and the
20-27 guaranteed equal yield program:<, on all taxable property in the
21-1 district, either>
21-2 (1) sufficient, without limit as to tax rate or
21-3 amount, to pay the principal of and interest on said bonds and to
21-4 pledge those funds for that purpose; or
21-5 (2) sufficient to pay the principal of and interest on
21-6 said bonds and to pledge those funds for that purpose, provided
21-7 that the annual aggregate bond taxes in the district shall never be
21-8 more than the tax rate (not to exceed $1 on the $100 valuation of
21-9 taxable property in the district) stated in said proposition.
21-10 (c) If bonds are ever voted in a district pursuant to
21-11 Subsection (b)(1) of this section, then all bonds thereafter
21-12 proposed shall be submitted pursuant to that subsection, and
21-13 Subsection (b)(2) of this section shall not be applicable to such
21-14 district. Except as otherwise provided by this section, no bonds
21-15 shall be issued pursuant to Subsection (b)(1) of this section if
21-16 the aggregate principal amount of tax bond indebtedness of the
21-17 district after such issuance would be in excess of 10 percent of an
21-18 amount equal to the product of the district's average daily
21-19 attendance multiplied by the quotient of the statewide taxable
21-20 value of property, as determined under Section 11.86 of this code,
21-21 divided by the statewide average daily attendance <the assessed
21-22 valuation of taxable property in the district according to the then
21-23 last completed and approved ad valorem tax rolls of the district>.
21-24 A district may issue bonds resulting in an aggregate principal
21-25 amount of tax bond indebtedness in excess of 10 percent of that
21-26 amount <the district's assessed valuation> if:
21-27 (1) the bonds are issued for the purpose of
22-1 constructing and equipping a replacement for a building lost to
22-2 fire or natural disaster;
22-3 (2) the bonds are issued in an amount necessary for
22-4 that purpose, less the amount paid by insurance covering the loss;
22-5 and
22-6 (3) the resulting aggregate principal amount of tax
22-7 bond indebtedness does not exceed 16 percent of that amount <the
22-8 district's assessed valuation>.
22-9 (d) In each proposition submitted to authorize the levy of
22-10 maintenance taxes there shall be included the question of whether
22-11 the governing board or commissioners court shall be authorized to
22-12 levy, and cause to be assessed and collected, annual ad valorem
22-13 taxes, for the further maintenance of public free schools, of not
22-14 to exceed the rate (which shall be not more than $1.50 on the $100
22-15 valuation of taxable property in the district) stated in said
22-16 proposition.
22-17 (e) Notice of each such election shall be given by
22-18 publishing a substantial copy of the election resolution or order
22-19 one time, at least 10 days prior to the date set for the election,
22-20 in a newspaper of general circulation in the district. Such
22-21 governing board or commissioners court shall canvass the returns
22-22 and declare the results of such elections.
22-23 SECTION 19. Sections 20.05(b) and (c), Education Code, are
22-24 amended to read as follows:
22-25 (b) Each such governing board or commissioners court shall
22-26 be authorized to refund or refinance all or any part of any of the
22-27 district's outstanding bonds and matured or unmatured but unpaid
23-1 interest thereon <payable from ad valorem taxes> by the issuance of
23-2 refunding bonds payable from funds to which the district is
23-3 entitled under Chapter 16 of this code from the foundation school
23-4 program and the guaranteed equal yield program <ad valorem taxes>.
23-5 Said refunding bonds shall mature serially or otherwise not more
23-6 than forty years from their date, and shall bear interest at such
23-7 rate or rates, as shall be determined within the discretion of such
23-8 governing board or commissioners court. Said refunding bonds may
23-9 be issued without an election in connection therewith.
23-10 Provided, however, if the Texas Constitution would require an
23-11 election or vote to permit any procedure, action, or matter
23-12 pertaining to such refunding bonds, then an election to authorize
23-13 any such procedure, action, or matter shall be held substantially
23-14 in accordance with this Chapter 20 of this code to the extent
23-15 practicable, applicable, and appropriate.
23-16 (c) A series or issue of refunding bonds may not be issued
23-17 unless:
23-18 (1) the total debt service on the refunding bonds will
23-19 amount to less than the total debt service on the bonds being
23-20 refunded; and
23-21 (2) <if a maximum interest rate was voted for the
23-22 bonds being refunded, the refunding bonds do not bear interest at a
23-23 rate higher than such voted maximum rate; and>
23-24 <(3)> the refunding bonds are payable from <taxes of>
23-25 the same source as that <nature as those> pledged to the payment of
23-26 the obligations being refunded thereby.
23-27 SECTION 20. Subchapter A, Chapter 20, Education Code, is
24-1 amended by adding Section 20.10 to read as follows:
24-2 Sec. 20.10. DEBT EXISTING ON SEPTEMBER 1, 1993. (a) Except
24-3 as provided by this section, a district may not impose a tax for
24-4 the payment of the principal and interest due on debt incurred by
24-5 the district under this chapter that is not included in the
24-6 foundation school program or the guaranteed equal yield program
24-7 under Chapter 16 of this code.
24-8 (b) A district with a yield per weighted student in average
24-9 daily attendance greater than $14.50 for one cent of tax effort may
24-10 impose a tax that is not included in the foundation school program
24-11 or the guaranteed equal yield program for the purpose of the
24-12 payment of principal and interest on debt incurred by this district
24-13 under this chapter before September 1, 1993. Any revenue generated
24-14 by the tax in excess of the revenue needed to pay principal and
24-15 interest on that debt must be included in the foundation school
24-16 program or the guaranteed equal yield program.
24-17 (c) For the purposes of this section, the number of weighted
24-18 students in average daily attendance in a district is calculated by
24-19 dividing the sum of the district's allotments under Subchapters C
24-20 and D of this chapter, less any allotments to the district for
24-21 transportation, career ladder supplements, or facilities, and 50
24-22 percent of the adjustment under Section 16.102 of this code, by the
24-23 basic allotment for the applicable year.
24-24 SECTION 21. Section 20.43(c), Education Code, is amended to
24-25 read as follows:
24-26 (c) <No school district in the State of Texas shall issue
24-27 such interest-bearing time warrants in excess of five percent of
25-1 the assessed valuation of the district, for the year in which such
25-2 interest-bearing time warrants are issued; nor shall the payment of
25-3 such interest-bearing time warrants in any one year exceed the
25-4 anticipated surplus income of the district for the year in which
25-5 the warrants are issued. Based on the budget of the district for
25-6 said year, such anticipated income to be computed by taking the
25-7 entire expected income of such school district from every source
25-8 for the year in which such interest-bearing time warrants are
25-9 issued, less teachers' salaries, bus aid included in the foundation
25-10 fund, and that part of the local maintenance tax earmarked for
25-11 salaries and known in the Gilmer-Aiken Law as the economic index or
25-12 fund assignment. The anticipated income computation as herein
25-13 defined shall be exclusive of all bond taxes.> No school district
25-14 shall have outstanding at any one time warrants totaling in excess
25-15 of $120,000 under the provisions of this section.
25-16 SECTION 22. Sections 20.50(c) and (d), Education Code, are
25-17 amended to read as follows:
25-18 (c) The consideration for any such contract may be paid from
25-19 any source available to such independent school district; but if
25-20 <it> voted, as hereinafter provided, such independent school
25-21 district shall be authorized to levy, assess, and collect <pledge
25-22 to the payment of said contract> an annual maintenance tax at a
25-23 rate that entitles the district to funds under Chapter 16 of this
25-24 code from the foundation school program and the guaranteed equal
25-25 yield program <in an amount> sufficient<, without limitation,> to
25-26 provide all of such consideration and to pledge those funds to the
25-27 payment of the contract. If so voted <and pledged>, such
26-1 maintenance tax shall be assessed, levied, and collected annually
26-2 in the same manner as provided by general law applicable to
26-3 independent school districts for other maintenance taxes.
26-4 (d) No foundation school program or guaranteed equal yield
26-5 program funds <maintenance tax> shall be pledged to the payment of
26-6 any such contract or a maintenance tax assessed, levied, or
26-7 collected for that purpose unless an election is held in the
26-8 independent school district and any such maintenance tax is duly
26-9 and favorably voted by a majority of the resident, qualified
26-10 electors of the independent school district who own taxable
26-11 property therein and who have duly rendered the same for taxation,
26-12 voting at said election. Each such election shall be called by
26-13 order of the board of trustees of the independent school district.
26-14 The election order shall set forth the date of the election, the
26-15 proposition to be submitted and voted on, the polling place or
26-16 places, and any other matters deemed advisable by the board of
26-17 trustees. Notice of said election shall be given by publishing a
26-18 substantial copy of the order calling the election one time, at
26-19 least ten days prior to the election, in a newspaper of general
26-20 circulation in the district. Except as herein otherwise
26-21 specifically provided, any such election shall be held in
26-22 accordance with the <Texas> Election Code.
26-23 SECTION 23. Sections 20.55(a), (b), and (d), Education Code,
26-24 are amended to read as follows:
26-25 (a) Any school district, including a junior college
26-26 district, situated in a county containing a population of 200,000
26-27 or more, according to the last preceding federal census, may issue
27-1 interest-bearing certificates of indebtedness for the purpose of
27-2 providing funds for the erection and equipment of school buildings
27-3 within the boundaries of the district or refinancing outstanding
27-4 certificates as herein provided. The term "certificates," as used
27-5 in this section, includes all obligations authorized to be issued
27-6 hereunder, and the term shall include interest thereon, unless
27-7 clearly indicated by the context that another meaning is intended.
27-8 The governing body of a school district other than a junior college
27-9 district shall make provision for the payment of the certificates
27-10 from funds available to the district under Chapter 16 of this code
27-11 from the foundation school program and the guaranteed equal yield
27-12 program.
27-13 (b) The governing body of a junior college <the> district
27-14 shall make provision for the payment of the certificates issued
27-15 under the authority of this section by the appropriation and pledge
27-16 of local school funds derived and to be derived from maintenance
27-17 taxes levied and assessed or to be levied and assessed under
27-18 authority of Section <Sections 20.02 and> 130.122 of this code<,
27-19 Chapter 273, Acts of the 53rd Legislature, 1953, as amended
27-20 (Article 2784g, Vernon's Texas Civil Statutes),> or other similar
27-21 law now in existence or hereinafter enacted which limits the amount
27-22 of tax which may be levied for maintenance purposes for a junior
27-23 college district, as distinguished from bond requirements. The
27-24 appropriation and pledge may be in the nature of a continuing
27-25 irrevocable pledge to apply the first moneys collected or to be
27-26 collected annually from the tax levy to the payment of the
27-27 obligations or by the irrevocable present levy and appropriation of
28-1 the amount of the maintenance tax as is required to meet the annual
28-2 debt service requirements of the obligations, in which event the
28-3 governing body shall covenant to annually set aside the amount in
28-4 the annual tax levy, showing the same is a portion of the
28-5 maintenance tax. The governing body shall annually budget the
28-6 amount required to pay the debt service requirements, principal and
28-7 interest, of the obligations which may be scheduled to become due
28-8 in any fiscal year. Nothing herein shall be construed as
28-9 permitting the levy of a maintenance tax in excess of the amount
28-10 approved by the resident qualified property taxpaying voters of the
28-11 district.
28-12 (d) The principal amount of certificates of a junior college
28-13 district which may be authorized at any one time and the scheduling
28-14 of their principal maturity shall be further restricted as follows:
28-15 (1) where the assessed valuation is more than $1
28-16 million and less than $15 million the limiting factor is 25 cents.
28-17 (2) where the assessed valuation is $15 million or
28-18 more but less than $35 million the limiting factor is 15 cents.
28-19 (3) where the assessed valuation is $35 million or
28-20 more the limiting factor is 5 cents.
28-21 SECTION 24. Section 20.56(k)(3), Education Code, is amended
28-22 to read as follows:
28-23 (3) The consideration payable by the district under a
28-24 contract may be paid from any source available to the district; and
28-25 if voted, the district is authorized to levy, assess, and collect
28-26 <pledge to the payment of the contract> an annual maintenance tax
28-27 at a rate that entitles the district to funds under Chapter 16 of
29-1 this code from the foundation school program and the guaranteed
29-2 equal yield program <in an amount> sufficient<, without
29-3 limitation,> to provide all or part of the consideration and to
29-4 pledge those funds to the payment of the contract. If so voted
29-5 <and pledged>, the maintenance tax shall be assessed, levied, and
29-6 collected annually in the same manner as provided by general law
29-7 applicable to independent school districts for other maintenance
29-8 taxes. No foundation school program funds <maintenance tax> shall
29-9 be pledged to the payment of any contract or a maintenance tax
29-10 assessed, levied, or collected for that purpose unless an election
29-11 is held by and in the district, and the maintenance tax for that
29-12 purpose is duly and favorably voted by a majority of the resident,
29-13 qualified electors of the district who own taxable property therein
29-14 and who have duly rendered the property for taxation, voting at the
29-15 election. Each election shall be called by order of the board of
29-16 trustees of the district. The election order shall set forth the
29-17 date of the election, the proposition to be submitted and voted on,
29-18 the polling place or places, and any other matters deemed advisable
29-19 by the board of trustees. Notice of election shall be given by
29-20 publishing a substantial copy of the order calling the election one
29-21 time, at least 10 days prior to the election, in a newspaper of
29-22 general circulation in the district. Except as herein otherwise
29-23 specifically provided, the election shall be held in accordance
29-24 with the <Texas> Election Code.
29-25 SECTION 25. Section 1.04(12), Tax Code, is amended to read
29-26 as follows:
29-27 (12) "Taxing unit" means a county, an incorporated
30-1 city or town (including a home-rule city), a school district, <a
30-2 county education district,> a special district or authority
30-3 (including a junior college district, a hospital district, a
30-4 district created by or pursuant to the Water Code, a mosquito
30-5 control district, a fire prevention district, or a noxious weed
30-6 control district), or any other political unit of this state,
30-7 whether created by or pursuant to the constitution or a local,
30-8 special, or general law, that is authorized to impose and is
30-9 imposing ad valorem taxes on property even if the governing body of
30-10 another political unit determines the tax rate for the unit or
30-11 otherwise governs its affairs.
30-12 SECTION 26. Section 6.02(b), Tax Code, is amended to read as
30-13 follows:
30-14 (b) A taxing unit <other than a county education district>
30-15 that has boundaries extending into two or more counties may choose
30-16 to participate in only one of the appraisal districts. In that
30-17 event, the boundaries of the district chosen extend outside the
30-18 county to the extent of the unit's boundaries. To be effective,
30-19 the choice must be approved by resolution of the board of directors
30-20 of the district chosen. <A county education district that has
30-21 boundaries extending into two or more counties must participate in
30-22 each appraisal district in which one of its component school
30-23 districts participates for purposes of appraisal of the component
30-24 school district's territory.>
30-25 SECTION 27. Sections 6.03(c)-(e), Tax Code, are amended to
30-26 read as follows:
30-27 (c) Members of the board of directors are appointed by vote
31-1 of the governing bodies of the incorporated cities and towns, the
31-2 school districts <other than the county education district>, and,
31-3 if entitled to vote, the conservation and reclamation districts
31-4 that participate in the district and of the county. A governing
31-5 body may cast all its votes for one candidate or distribute them
31-6 among candidates for any number of directorships. Conservation and
31-7 reclamation districts are not entitled to vote unless at least one
31-8 conservation and reclamation district in the district delivers to
31-9 the chief appraiser a written request to nominate and vote on the
31-10 board of directors by June 1 of each odd-numbered year. On receipt
31-11 of a request, the chief appraiser shall certify a list by June 15
31-12 of all eligible conservation and reclamation districts that are
31-13 imposing taxes and that participate in the district.
31-14 (d) The voting entitlement of a taxing unit that is entitled
31-15 to vote for directors is determined by dividing the total dollar
31-16 amount of property taxes imposed in the district by the taxing unit
31-17 for the preceding tax year by the sum of the total dollar amount of
31-18 property taxes imposed in the district for that year by each taxing
31-19 unit that is entitled to vote, by multiplying the quotient by
31-20 1,000, and by rounding the product to the nearest whole number.
31-21 That number is multiplied by the number of directorships to be
31-22 filled. <For a school district, the total dollar amount of
31-23 property taxes imposed in the district by the unit is considered to
31-24 be the sum of the taxes imposed by the district and the revenue
31-25 received by the district from the county education district.> A
31-26 taxing unit participating in two or more districts is entitled to
31-27 vote in each district in which it participates, but only the taxes
32-1 imposed in a district are used to calculate voting entitlement in
32-2 that district.
32-3 (e) The chief appraiser shall calculate the number of votes
32-4 to which each taxing unit other than a conservation and reclamation
32-5 district is entitled and shall deliver written notice to each of
32-6 those units of its voting entitlement before October 1 of each
32-7 odd-numbered year. The chief appraiser shall deliver the notice:
32-8 (1) to the county judge and each commissioner of the
32-9 county served by the appraisal district;
32-10 (2) to the presiding officer of the governing body of
32-11 each city or town participating in the appraisal district, to the
32-12 city manager of each city or town having a city manager, and to the
32-13 city secretary or clerk, if there is one, of each city or town that
32-14 does not have a city manager; and
32-15 (3) to the presiding officer of the governing body of
32-16 each school district<, other than the county education district,>
32-17 participating in the district and to the superintendent of each
32-18 <those> school district <districts>.
32-19 SECTION 28. Sections 6.06(d) and (h), Tax Code, are amended
32-20 to read as follows:
32-21 (d) Each taxing unit participating in the district<, other
32-22 than a county education district,> is allocated a portion of the
32-23 amount of the budget equal to the proportion that the total dollar
32-24 amount of property taxes imposed in the district by the unit for
32-25 the tax year in which the budget proposal is prepared bears to the
32-26 sum of the total dollar amount of property taxes imposed in the
32-27 district by each participating unit for that year. <For a school
33-1 district, other than a county education district, the total dollar
33-2 amount of property taxes imposed in the district by the unit is
33-3 considered to be the sum of the taxes imposed by the district and
33-4 the revenue received by the district from the county education
33-5 district.> If a taxing unit participates in two or more districts,
33-6 only the taxes imposed in a district are used to calculate the
33-7 unit's cost allocations in that district. If the number of real
33-8 property parcels in a taxing unit is less than 5 percent of the
33-9 total number of real property parcels in the district and the
33-10 taxing unit imposes in excess of 25 percent of the total amount of
33-11 the property taxes imposed in the district by all of the
33-12 participating taxing units for a year, the unit's allocation may
33-13 not exceed a percentage of the appraisal district's budget equal to
33-14 three times the unit's percentage of the total number of real
33-15 property parcels appraised by the district.
33-16 (h) If a newly formed taxing unit or a taxing unit that did
33-17 not impose taxes in the preceding year<, other than a county
33-18 education district,> imposes taxes in any tax year, that unit is
33-19 allocated a portion of the amount budgeted to operate the district
33-20 as if it had imposed taxes in the preceding year, except that the
33-21 amount of taxes the unit imposes in the current year is used to
33-22 calculate its allocation. Before the amount of taxes to be imposed
33-23 for the current year is known, the allocation may be based on an
33-24 estimate to which the district board of directors and the governing
33-25 body of the unit agree, and the payments made after that amount is
33-26 known shall be adjusted to reflect the amount imposed. The
33-27 payments of a newly formed taxing unit that has no source of funds
34-1 are postponed until the unit has received adequate tax or other
34-2 revenues.
34-3 SECTION 29. Sections 11.13(d), (e), (m), and (n), Tax Code,
34-4 are amended to read as follows:
34-5 (d) In addition to the exemptions provided by Subsections
34-6 (b) and (c) of this section, an individual who is disabled or is 65
34-7 or older is entitled to an exemption from taxation by a taxing unit
34-8 of a portion (the amount of which is fixed as provided by
34-9 Subsection (e) of this section) of the appraised value of his
34-10 residence homestead if the exemption is adopted either:
34-11 (1) by the governing body of the taxing unit <other
34-12 than a county education district>; or
34-13 (2) by a favorable vote of a majority of the qualified
34-14 voters of the taxing unit at an election called by the governing
34-15 body of the taxing unit <other than a county education district>,
34-16 and the governing body shall call the election on the petition of
34-17 at least 20 percent of the number of qualified voters who voted in
34-18 the preceding election of the taxing unit<; or>
34-19 <(3) by a favorable vote of a majority of the
34-20 qualified voters of a county education district at an election held
34-21 under Section 20.950, Education Code>.
34-22 (e) The amount of an exemption adopted as provided by
34-23 Subsection (d) of this section is $3,000 of the appraised value of
34-24 the residence homestead unless a larger amount is specified by:
34-25 (1) the governing body authorizing the exemption if
34-26 the exemption is authorized as provided by Subdivision (1) of
34-27 Subsection (d) of this section; or
35-1 (2) the petition for the election if the exemption is
35-2 authorized as provided by Subdivision (2) of Subsection (d) of this
35-3 section<; or>
35-4 <(3) the proposition approved at an election held
35-5 under Section 20.950, Education Code>.
35-6 (m) In this section:
35-7 (1) "Disabled" means under a disability for purposes
35-8 of payment of disability insurance benefits under Federal Old-Age,
35-9 Survivors, and Disability Insurance.
35-10 (2) "School district" means a political subdivision
35-11 organized to provide general elementary and secondary public
35-12 education. <"School district" includes a county education district
35-13 established by the consolidation of the local school districts in
35-14 its boundaries for the limited purpose of exercising a portion of
35-15 the taxing power previously authorized by the voters in those
35-16 school districts.> "School district" does not include a junior
35-17 college district or a political subdivision organized to provide
35-18 special education services.
35-19 (n) In addition to any other exemptions provided by this
35-20 section, an individual is entitled to an exemption from taxation by
35-21 a taxing unit <other than a county education district> of a
35-22 percentage of the appraised value of his residence homestead if the
35-23 exemption is adopted by the governing body of the taxing unit
35-24 before May 1 in the manner provided by law for official action by
35-25 the body. If the percentage set by the taxing unit produces an
35-26 exemption in a tax year of less than $5,000 when applied to a
35-27 particular residence homestead, the individual is entitled to an
36-1 exemption of $5,000 of the appraised value. The percentage adopted
36-2 by the taxing unit may not exceed 20 percent. <In addition to any
36-3 other exemptions provided by this section, an individual is
36-4 entitled to an exemption from taxation by a county education
36-5 district of a percentage of the appraised value of his residence
36-6 homestead if the exemption is adopted by the voters of the district
36-7 at an election held in the district for that purpose under Section
36-8 20.946, Education Code. If the percentage set by the voters
36-9 produces an exemption in a tax year of less than $5,000 when
36-10 applied to a particular residence homestead, the individual is
36-11 entitled to an exemption of $5,000 of the appraised value. The
36-12 percentage adopted by the voters may not exceed 20 percent.>
36-13 SECTION 30. Sections 11.14(c) and (e), Tax Code, are amended
36-14 to read as follows:
36-15 (c) The governing body of a taxing unit<, other than a
36-16 county education district,> by resolution or order, depending upon
36-17 the method prescribed by law for official action by that governing
36-18 body, may provide for taxation of tangible personal property
36-19 exempted under Subsection (a). <The voters of a county education
36-20 district, by an election held under Section 20.951, Education Code,
36-21 may provide for taxation of tangible personal property exempted
36-22 under Subsection (a).> If a taxing unit provides for taxation of
36-23 tangible personal property as provided by this subsection, the
36-24 exemption prescribed by Subsection (a) does not apply to that unit.
36-25 (e) A political subdivision <other than a county education
36-26 district> choosing to tax property otherwise made exempt by this
36-27 section, pursuant to Article VIII, Section 1(e), of the Texas
37-1 Constitution, may not do so until the governing body of the
37-2 political subdivision has held a public hearing on the matter,
37-3 after having given notice of the hearing at the times and in the
37-4 manner required by this subsection, and has found that the action
37-5 will be in the public interest of all the residents of that
37-6 political subdivision. At the hearing, all interested persons are
37-7 entitled to speak and present evidence for or against taxing the
37-8 property. Not later than the 30th day prior to the date of a
37-9 hearing held under this subsection, notice of the hearing must be:
37-10 (1) published in a newspaper having general
37-11 circulation in the political subdivision and in a section of the
37-12 newspaper other than the advertisement section;
37-13 (2) not less than one-half of one page in size; and
37-14 (3) republished on not less than three separate days
37-15 during the period beginning with the 10th day prior to the hearing
37-16 and ending with the actual date of the hearing.
37-17 SECTION 31. Section 26.08, Tax Code, is amended by adding
37-18 Subsection (k) to read as follows:
37-19 (k) Notwithstanding any other provision of this section, a
37-20 district's rollback tax rate for each year beginning with the 1993
37-21 tax year is a rate equal to the sum of the district's debt rate and
37-22 the maintenance and operations tax rate necessary for the district
37-23 to obtain a total amount of state and local maintenance and
37-24 operations funds for the school year beginning September 1 of the
37-25 applicable tax year equal to the total amount of state and local
37-26 maintenance and operations funds per student that the district
37-27 received for the preceding school year multiplied by 1.05.
38-1 SECTION 32. (a) All county education districts are
38-2 abolished.
38-3 (b) Except as provided by Subsection (c), all funds and
38-4 other assets of each county education district shall be distributed
38-5 among its component school districts in proportion to the taxable
38-6 property wealth of each component school district in accordance
38-7 with rules adopted by the commissioner of education.
38-8 (c) After August 31, 1993, uncollected property taxes levied
38-9 by the board of trustees of a county education district are the
38-10 asset of the school district in which the property is located.
38-11 Each school district shall collect these taxes and shall bear the
38-12 cost of collection. The school district may take actions to ensure
38-13 the efficient collection of these taxes.
38-14 SECTION 33. (a) The following provisions of the Education
38-15 Code are repealed:
38-16 (1) Sections 1.05, 11.86(h), 16.007(c), 16.009,
38-17 16.010, 16.011, 16.103(e), 16.155(g), 16.256(d)-(g), 20.09,
38-18 20.43(e), (f), (g), and (i), 20.45, 20.48(c)-(f), 20.51, and
38-19 20.55(e);
38-20 (2) Subchapter J, Chapter 16; and
38-21 (3) Subchapter G, Chapter 20.
38-22 (b) The following sections of the Tax Code are
38-23 repealed: 6.061(f), 26.12(e), and 312.002(e) and (f).
38-24 (c) Section 322.008(b), Government Code, is repealed.
38-25 (d) Article 717t-1, Revised Statutes, is repealed.
38-26 SECTION 34. This Act takes effect immediately and applies
38-27 beginning with the 1993-1994 school year, but only if the
39-1 constitutional amendment proposed by __J.R. No.____, 73rd
39-2 Legislature, Regular Session, 1993, takes effect. If that
39-3 amendment is not approved by the voters, this Act has no effect.
39-4 SECTION 35. The importance of this legislation and the
39-5 crowded condition of the calendars in both houses create an
39-6 emergency and an imperative public necessity that the
39-7 constitutional rule requiring bills to be read on three several
39-8 days in each house be suspended, and this rule is hereby suspended,
39-9 and that this Act take effect and be in force from and after its
39-10 passage, and it is so enacted.