By: Gutierrez H.B. No. 1624
73R3975 CAE-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to unified school district systems.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. The title of Subchapter G, Chapter 20, Education
1-5 Code, is amended to read as follows:
1-6 SUBCHAPTER G. UNIFIED SCHOOL DISTRICT SYSTEMS
1-7 <COUNTY EDUCATION DISTRICTS>
1-8 SECTION 2. Sections 20.941(a) and (b), Education Code, are
1-9 amended to read as follows:
1-10 (a) For each school district with taxable property values in
1-11 excess of $280,000 per weighted student in average daily attendance
1-12 the commissioner of education shall establish a unified school
1-13 district system that includes the district with the excess property
1-14 values plus one or more additional school districts so that the
1-15 aggregate taxable property values of the districts included in the
1-16 system divided by the total number of weighted students in the
1-17 system results in a quotient that is less than $280,000. <Each
1-18 school district in this state is included in a county education
1-19 district. A county education district is composed of all school
1-20 districts that are assigned to a single county in the 1990-1991
1-21 Texas School Directory published by the Central Education Agency,
1-22 except as provided by Subsection (b) of this section.>
1-23 (b) The commissioner must issue an order establishing a
1-24 unified school district system not later than April 1 of each
2-1 calendar year. <The school districts that are assigned to a county
2-2 in each of the following groups of counties in the 1990-1991 Texas
2-3 School Directory published by the Central Education Agency
2-4 constitute a county education district:>
2-5 <(1) Midland and Andrews>
2-6 <(2) Victoria and Calhoun>
2-7 <(3) Armstrong, Carson, and Randall>
2-8 <(4) Liberty and Chambers>
2-9 <(5) Bailey and Cochran>
2-10 <(6) Gaines, Borden, Dawson, Lubbock, Lynn, Terry, and
2-11 Yoakum>
2-12 <(7) Howard and Glasscock>
2-13 <(8) Hale and Hockley>
2-14 <(9) Schleicher, Tom Green, Sterling, and Irion>
2-15 <(10) Hidalgo and Kenedy>
2-16 <(11) Kent, Crosby, Fisher, Garza, and Scurry>
2-17 <(12) King, Cottle, Knox, and Dickens>
2-18 <(13) Limestone and Falls>
2-19 <(14) Lipscomb, Gray, Hemphill, Hutchinson, Ochiltree,
2-20 and Roberts>
2-21 <(15) Mason, San Saba, and Llano>
2-22 <(16) Matagorda, Jackson, and Wharton>
2-23 <(17) Frio and McMullen>
2-24 <(18) Pecos, Crockett, Jeff Davis, Kinney, Presidio,
2-25 and Val Verde>
2-26 <(19) Bee and Refugio>
2-27 <(20) Sherman, Dallam, Hansford, Moore, and Potter>
3-1 <(21) Somervell, Bosque, Erath, Hill, and Johnson>
3-2 <(22) Kimble and Sutton>
3-3 <(23) Brewster and Terrell>
3-4 <(24) Upton, Crane, Ector, and Reagan>
3-5 <(25) Wheeler, Collingsworth, and Donley>
3-6 <(26) Loving, Winkler, Culberson, Reeves, and Ward>
3-7 <(27) Starr and Zapata>
3-8 <(28) Stonewall and Jones>
3-9 <(29) Aransas and San Patricio>
3-10 <(30) Leon and Anderson>
3-11 <(31) Panola and Shelby>
3-12 SECTION 3. Section 20.942, Education Code, is amended to
3-13 read as follows:
3-14 Sec. 20.942. AUTHORIZATION. Each unified school district
3-15 system <county education district> is an independent school
3-16 district established <by the consolidation of the local school
3-17 districts in its boundaries> for the limited purpose of exercising
3-18 <a portion of> the taxing power <previously> authorized by Article
3-19 VII, Section 3, of the Texas Constitution <the voters in those
3-20 school districts> and of distributing revenue of the system <county
3-21 education district> to its component school districts <those
3-22 districts>.
3-23 SECTION 4. Section 20.943, Education Code, is amended to
3-24 read as follows:
3-25 Sec. 20.943. GOVERNANCE. (a) A unified school district
3-26 system <county education district> is governed by a board of
3-27 trustees appointed by the respective boards of trustees of its
4-1 component school districts.
4-2 (b) Except as provided by this subsection, the board of
4-3 trustees of each component school district shall appoint one of its
4-4 members to serve on the board of trustees of the unified school
4-5 district system <county education district>. If a system <county
4-6 education district> is composed of fewer than three component
4-7 districts, the board of trustees of each component district shall
4-8 appoint two of its members to serve on the board of trustees of the
4-9 system <county education district>. An appointed member of the
4-10 board of trustees serves at the pleasure of the appointing school
4-11 district's board of trustees and may be replaced at any time by
4-12 that board. Service on the system <county education district>
4-13 board is an additional duty of office of the member serving.
4-14 (c) A vote cast by a member of the board of trustees bears
4-15 the same proportional value to the total number of votes cast by
4-16 all trustees that the total number of registered voters in that
4-17 member's component school district bears to the total number of
4-18 registered voters in the unified school district system of which it
4-19 is a component. If a school district is represented by two
4-20 trustees, the proportional value of the vote attributed to the
4-21 district is shared equally by the trustees. The secretary of state
4-22 shall determine and certify to the board of trustees the total
4-23 number of registered voters in each component school district and
4-24 the proportional value of each member's vote.
4-25 (d) A unified school district system <county education
4-26 district> has the authority granted to other independent school
4-27 districts under:
5-1 (1) Section 23.26(a) of this code;
5-2 (2) Section 23.26(c) of this code, as it applies to
5-3 personal property;
5-4 (3) Subchapter C, Chapter 23, of this code; and
5-5 (4) Subchapter E, Chapter 23, of this code.
5-6 (e) <(d)> A unified school district system <county education
5-7 district> may enter into contracts and may employ personnel only as
5-8 necessary for the performance of the duties of the system
5-9 <district>.
5-10 (f) <(e)> The commissioner of education may adopt rules
5-11 relating to the operation and administration of unified school
5-12 district systems <county education districts>.
5-13 SECTION 5. Section 20.944(a), Education Code, is amended to
5-14 read as follows:
5-15 (a) A majority of the members of the board of trustees of a
5-16 unified school <county education> district system constitutes a
5-17 quorum.
5-18 SECTION 6. Section 20.9441, Education Code, is amended to
5-19 read as follows:
5-20 Sec. 20.9441. LIABILITY INSURANCE COVERAGE. A member of the
5-21 board of trustees of a component school district who is designated
5-22 to serve as a member of the board of trustees of a unified school
5-23 <county education> district system and who is covered by a
5-24 liability insurance policy obtained by the school district covering
5-25 the member's acts and omissions in the member's capacity as a
5-26 school board member is entitled to analogous liability insurance
5-27 coverage of the member's acts and omissions in the member's
6-1 capacity as a member of the board of trustees of the system <county
6-2 education district>. An insurance company may not sell liability
6-3 insurance coverage to a school district covering the acts and
6-4 omissions of school board members in their capacity as board
6-5 members unless the policy also provides coverage for acts and
6-6 omissions of a school board member in the member's capacity as a
6-7 member of the board of trustees of a unified school <county
6-8 education> district system.
6-9 SECTION 7. Subchapter G, Chapter 20, Education Code, is
6-10 amended by adding Section 20.9442 to read as follows:
6-11 Sec. 20.9442. TAX AUTHORIZATION ELECTION. (a) The board of
6-12 trustees of each unified school district system shall order an
6-13 election to be held as early as possible after the creation of the
6-14 system to determine whether or not the system shall be authorized
6-15 to levy a tax at a rate determined by the board. The rate
6-16 determined by the board may not exceed $0.90 per $100 valuation of
6-17 property in the system. Section 41.001, Election Code, does not
6-18 apply to an election under this section.
6-19 (b) At the tax authorization election the ballot shall be
6-20 prepared to permit voting for or against the proposition: "The
6-21 unified school district system tax not exceeding $0.90 on the $100
6-22 valuation of property."
6-23 (c) Each component school district shall conduct the
6-24 election and deliver the canvass of the vote to the unified school
6-25 district system board of trustees. The board of trustees shall
6-26 conduct a final canvass not later than the second day after the
6-27 receipt of all school district election returns and prepare a
7-1 tabulation of the total number of votes received in each school
7-2 district and the sum of the school district totals. The
7-3 proposition is approved only if the majority of the votes reflected
7-4 in the sum of school district totals favors the proposition. The
7-5 board of trustees shall declare the results and retain the election
7-6 returns and tabulations for the period for preserving precinct
7-7 election records.
7-8 (d) If at the election the majority of the votes are cast
7-9 against the proposition, the board of trustees may call another
7-10 election for the same purpose on an authorized election date, as
7-11 prescribed by Section 41.001, Election Code, occurring after the
7-12 expiration of 60 days after the date of the prior election.
7-13 SECTION 8. Section 20.945, Education Code, is amended to
7-14 read as follows:
7-15 Sec. 20.945. LEVY OF TAX; ASSESSMENT AND COLLECTION OF
7-16 TAXES. (a) The board of trustees of a unified school <county
7-17 education> district system shall levy a tax for the support of that
7-18 system's component school districts at a rate not exceeding the
7-19 rate necessary to collect its local fund assignment under Section
7-20 16.252 of this code not later than September 1 of each year or as
7-21 soon thereafter as practicable.
7-22 (b) Unless the board of trustees of the unified school
7-23 <county education> district system provides for the assessment and
7-24 collection of taxes levied by the system <district> through a
7-25 contract with one or more appraisal districts or taxing units, each
7-26 component school district within a system <county education
7-27 district> shall be responsible for the assessment and collection of
8-1 taxes levied by the board of trustees of the system <county
8-2 education district> on all taxable property within the component
8-3 school district at the same time and in the same manner as it
8-4 assesses and collects its own taxes. Each component school
8-5 district shall bear the cost of assessing and collecting taxes
8-6 levied by the system <county education district>, and shall have
8-7 the legal authority to take actions on behalf of the system <county
8-8 education district> to ensure the efficient collection of these
8-9 taxes.
8-10 (c) Unified school district system tax revenue shall be
8-11 apportioned to the system's component school districts on the basis
8-12 of the component districts' shares of the taxable value of property
8-13 in the system, but no district shall receive funds in excess of its
8-14 entitlement under Section 16.254(a)(1) of this code less its
8-15 distribution from the available school fund.
8-16 SECTION 9. Section 20.947, Education Code, is amended to
8-17 read as follows:
8-18 Sec. 20.947. AUTHORITY OF COMPONENT SCHOOL DISTRICTS. The
8-19 boards of trustees of the component school districts in a unified
8-20 school <county education> district system retain the authority
8-21 granted them elsewhere in this code<, except the authority to levy
8-22 that portion of their former taxing authority exercised by the
8-23 county education district>.
8-24 SECTION 10. Subchapter G, Chapter 20, Education Code, is
8-25 amended by adding Section 20.952 to read as follows:
8-26 Sec. 20.952. CREATION OF COUNTYWIDE SCHOOL DISTRICTS. (a)
8-27 If the voters of a unified school district system fail to authorize
9-1 a system tax on or before September 1, 1993, the commissioner of
9-2 education by order shall attach each component school district
9-3 included in the system to the component school district that has
9-4 the greatest number of students in average daily attendance. The
9-5 governing board of that school district shall serve as the board of
9-6 trustees of the enlarged district until the next regular trustee
9-7 election at which time a new board of trustees shall be elected by
9-8 the voters of the enlarged district.
9-9 (b) If a unified school district system fails to levy a tax
9-10 at a rate that will generate revenue equal to not less than 95
9-11 percent of the system's local fund assignment under Section 16.252
9-12 of this code, the commissioner shall order the attachment of the
9-13 component districts in the manner prescribed by Subsection (a) of
9-14 this section.
9-15 SECTION 11. Section 16.007(a), Education Code, is amended to
9-16 read as follows:
9-17 (a) Each school district and each unified school <county
9-18 education> district system shall participate in the Public
9-19 Education Information Management System (PEIMS) and shall provide
9-20 through that system information required for the administration of
9-21 this chapter and of other appropriate provisions of this code.
9-22 SECTION 12. Subchapter B, Chapter 16, Education Code, is
9-23 amended by adding Section 16.058 to read as follows:
9-24 Sec. 16.058. REQUIRED LOCAL FUNDING. A school district must
9-25 raise or receive from the unified school district system of which
9-26 the school district is a component an amount of local funds that is
9-27 not less than 95 percent of the amount assigned or reallocated to
10-1 the school district under Section 16.252 of this code.
10-2 SECTION 13. Section 16.251(b), Education Code, is amended to
10-3 read as follows:
10-4 (b) The program shall be financed by:
10-5 (1) ad valorem tax revenue generated by an equalized
10-6 uniform <county education district> effort by school districts or
10-7 by unified school district systems on behalf of their component
10-8 school districts;
10-9 (2) ad valorem tax revenue generated by local school
10-10 district effort in excess of the equalized uniform <county
10-11 education district> effort;
10-12 (3) state available school funds distributed in
10-13 accordance with law; and
10-14 (4) state funds appropriated for the purposes of
10-15 public school education and allocated to each district in an amount
10-16 sufficient to finance the cost of each district's Foundation School
10-17 Program not covered by other funds specified in this subsection.
10-18 SECTION 14. Section 16.252, Education Code, is amended to
10-19 read as follows:
10-20 Sec. 16.252. LOCAL SHARE OF PROGRAM COST (TIER ONE). (a)
10-21 The local <Each county education district's> share of the cost of
10-22 the Foundation School Program assigned to each unified school
10-23 district system and to each school district that is not a component
10-24 of a unified school district system shall be an amount determined
10-25 by the following formula:
10-26 where:
10-27 "LFA" is the system's or <county education> district's local
11-1 share;
11-2 "TR" is a tax rate which for each hundred dollars of
11-3 valuation is <$0.72 for the 1991-1992 school year, $0.82 for the
11-4 1992-1993 school year,> $0.92 for the 1993-1994 school year, and
11-5 $1.00 for each school year thereafter; and
11-6 "DPV" is the taxable value of property in the system or
11-7 <county education> district for the prior tax year determined under
11-8 Section 11.86 of this code.
11-9 (b) The commissioner of education shall adjust the values
11-10 reported in the official report of the comptroller as required by
11-11 Section 5.09(a), <Property> Tax Code, to reflect reductions in
11-12 taxable value of property resulting from natural or economic
11-13 disaster after January 1 in the year in which the valuations are
11-14 determined. The decision of the commissioner of education shall be
11-15 final. An adjustment does not affect the local fund assignment of
11-16 any other system or <county education> district.
11-17 (c) Appeals of district values shall be held pursuant to
11-18 Subsection (e) of Section 11.86 of this code.
11-19 (d) The commissioner of education shall allocate each
11-20 unified school district system's local fund assignment among its
11-21 component school districts on the basis of the component districts'
11-22 shares of the taxable value of property in the system, except that
11-23 no component district's share shall exceed that district's tier one
11-24 program cost less the amount distributed to the component district
11-25 from the available school fund. <A county education district shall
11-26 raise its total local share of the foundation school program. The
11-27 funds shall be reallocated to the school districts in the county
12-1 education district in the manner prescribed by Subchapter J of this
12-2 chapter.>
12-3 (e) The commissioner of education shall hear appeals from
12-4 systems or <county education> districts which have experienced a
12-5 rapid decline in tax base used in calculating the local fund
12-6 assignment, exceeding eight percent of prior year, that is beyond
12-7 the control of the board of trustees of the system or <county
12-8 education> district. The commissioner of education may adjust the
12-9 system's or <county education> district's taxable values for local
12-10 fund assignment purposes for such losses in value exceeding eight
12-11 percent and thereby adjust the local fund assignment to reflect the
12-12 local current year taxable value. The decision of the commissioner
12-13 of education shall be final. An adjustment does not affect the
12-14 local fund assignment of any other system or <county education>
12-15 district.
12-16 <(f) For the purposes of Subsection (a) of this section, a
12-17 county education district's "DPV" for the 1991-1992 school year is
12-18 the sum of the taxable value of property for the prior tax year
12-19 determined under Section 11.86 of this code for the school
12-20 districts composing the county education district. This subsection
12-21 expires September 1, 1992.>
12-22 SECTION 15. Sections 16.254(a) and (b), Education Code, are
12-23 amended to read as follows:
12-24 (a) The commissioner of education shall determine annually:
12-25 (1) the amount of money necessary to operate a
12-26 Foundation School Program in each school district;
12-27 (2) the amount of each <local funds due the> school
13-1 district's <district from the> local fund assignment <of the county
13-2 education district>; and
13-3 (3) the amount of state available school funds
13-4 distributed to each school district.
13-5 (b) The commissioner of education shall then grant to each
13-6 school district from the Foundation School Program appropriation
13-7 the amount of funds necessary to provide the difference between
13-8 Subdivision (1) and the sum of Subdivisions (2) and (3) of
13-9 Subsection (a) of this section. However, if a school district
13-10 fails to raise, or to receive from its unified school district
13-11 system, sufficient local revenue to cover its local fund
13-12 assignment, the commissioner shall reduce the amount granted to the
13-13 district by the same proportion that the amount raised or received
13-14 by the district bears to the district's local fund assignment.
13-15 SECTION 16. Section 16.302(a), Education Code, is amended to
13-16 read as follows:
13-17 (a) Each school district is guaranteed a specified amount
13-18 per weighted student in state and local funds for each cent of tax
13-19 effort. For a school district that is a component of a unified
13-20 system, the amount is guaranteed for each cent of tax effort, and
13-21 for a school district that is not a component of a unified system,
13-22 the amount is guaranteed for each cent of tax effort over that
13-23 required for the local fund assignment. The amount guaranteed may
13-24 not exceed <of the county education district in which the school
13-25 district is located up to> the maximum level specified in this
13-26 subchapter. The amount of state support, subject only to the
13-27 maximum amount under Section 16.303 of this code, is determined by
14-1 the formula:
14-2 where:
14-3 "GYA" is the guaranteed yield amount of state funds to be
14-4 allocated to the district;
14-5 "GL" is the dollar amount guaranteed level of state and local
14-6 funds per weighted student per cent of tax effort, which is <$21.50
14-7 for the 1991-1992 school year, $22.50 for the 1992-1993 school
14-8 year,> $26 for the 1993-1994 school year, and $28 for each school
14-9 year thereafter, or a greater amount for any year provided by
14-10 appropriation, or a greater amount adopted by the foundation school
14-11 fund budget committee under Section 16.256(d) of this code for the
14-12 1993-1994 or 1994-1995 school year or thereafter;
14-13 "WADA", except as provided by Section 16.206 of this code, is
14-14 the number of weighted students in average daily attendance, which
14-15 is calculated by dividing the sum of the school district's
14-16 allotments under Subchapters C and D of this chapter, less any
14-17 allotments to the district for transportation, career ladder
14-18 supplements, or technology and 50 percent of the adjustment under
14-19 Section 16.102 of this code, by the basic allotment for the
14-20 applicable year;
14-21 "DTR" is the district enrichment and facilities tax rate of
14-22 the school district, which for a district that is not a component
14-23 of a unified system is determined by subtracting the local fund
14-24 assignment of the school district from <dividing> the total amount
14-25 of taxes collected by the school district for the applicable school
14-26 year and dividing the result by the quotient of the district's
14-27 taxable value of property as determined under Section 11.86 of this
15-1 code divided by 100; and which for a district that is a component
15-2 of a unified system is determined by dividing the total amount of
15-3 taxes collected by the school district for the applicable school
15-4 year by the quotient of the district's taxable value of property as
15-5 determined under Section 11.86 of this code divided by 100; and
15-6 "LR" is the local revenue, which is determined by multiplying
15-7 "DTR" by the quotient of the district's taxable value of property
15-8 as determined under Section 11.86 of this code divided by 100.
15-9 SECTION 17. Section 20.09, Education Code, is amended to
15-10 read as follows:
15-11 Sec. 20.09. TAX LIMITATIONS. (a) Except as provided by
15-12 Subsections (c) and (d) of this section, a school district that is
15-13 a component of a unified school district system may not impose a
15-14 total tax rate on the $100 valuation of taxable property that
15-15 results in a levy that exceeds the levy that results from applying
15-16 the following rate to the district's taxable value of property as
15-17 determined under Section 11.86 of this code:
15-18 (1) <$0.78 for the 1991 tax year;>
15-19 <(2) $0.68 for the 1992 tax year;>
15-20 <(3)> $0.58 for the 1993 tax year; and
15-21 (2) <(4)> $0.50 for each subsequent tax year.
15-22 (b) A district may impose taxes under this chapter on the
15-23 residence homestead of a person whose taxes for general elementary
15-24 and secondary public school purposes are limited under Article
15-25 VIII, Section 1-b(d), of the Texas Constitution, only to the extent
15-26 that the imposition, when added to the taxes imposed on the
15-27 homestead by a unified school district system <the county education
16-1 district>, does not increase the person's tax liability for those
16-2 purposes in violation of the constitutional limit.
16-3 (c) The portion of the total tax rate required to collect
16-4 the taxes pledged and levied for the payment of principal and
16-5 interest on debt authorized <to be issued by an election held on or
16-6 before April 1, 1991,> and issued before September 1, 1993 <1992>,
16-7 is not subject to the tax limitation under Subsection (a) of this
16-8 section.
16-9 (d) Prior to the issuance of bonds other than bonds exempt
16-10 under Subsection (c) of this section, a district that is a
16-11 component of a unified school district system shall demonstrate to
16-12 the attorney general with respect to the proposed bond issue a
16-13 projected ability to pay the principal of and interest on the
16-14 proposed bonds and all previously issued bonds, other than bonds
16-15 exempt under Subsection (c) of this section, from a tax at a debt
16-16 rate not to exceed $0.50 per $100 valuation and a total tax rate
16-17 not to exceed the maximum rate under Subsection (a) of this
16-18 section. On approval of the bonds by the attorney general and
16-19 issuance by the district, the district may levy a tax exceeding the
16-20 limits established in Subsection (a) of this section if necessary
16-21 to pay the principal of and interest on the bonds without reducing
16-22 maintenance and operations expenditures for the district.
16-23 SECTION 18. Section 26.07(a), Tax Code, is amended to read
16-24 as follows:
16-25 (a) If the governing body of a taxing unit other than a
16-26 school district or unified school district system adopts a tax rate
16-27 that exceeds the rollback tax rate calculated as provided by
17-1 Section 26.04 of this code, the qualified voters of the taxing unit
17-2 by petition may require that an election be held to determine
17-3 whether or not to reduce the tax rate adopted for the current year
17-4 to the rollback tax rate calculated as provided by Section 26.04 of
17-5 this code.
17-6 SECTION 19. Section 26.08, Tax Code, is amended by adding
17-7 Subsection (k) to read as follows:
17-8 (k) This section does not apply to a unified school district
17-9 system.
17-10 SECTION 20. Sections 11.86(a) and (h), Education Code, are
17-11 amended to read as follows:
17-12 (a) The comptroller shall conduct an annual study using
17-13 comparable sales and generally accepted auditing and sampling
17-14 techniques to determine the total value of all taxable property in
17-15 each <county education> school district and each unified school
17-16 district system <of its component school districts>. The study
17-17 shall determine the taxable value of all property and of each
17-18 category of property within the district and the productivity value
17-19 of all land that qualifies for appraisal on the basis of its
17-20 productive capacity and for which the owner has applied for and
17-21 received a productivity appraisal. In conducting the study, the
17-22 comptroller shall review the appraisal standards, procedures, and
17-23 methodology used by each appraisal district to determine the
17-24 taxable value of property in each school district. The review must
17-25 test the validity of the taxable values assigned to each category
17-26 of property by the appraisal district:
17-27 (1) using, if appropriate, samples selected through
18-1 generally accepted sampling techniques; and
18-2 (2) according to generally accepted standard
18-3 valuation, statistical compilation, and analysis techniques. If
18-4 the comptroller finds in the annual study that generally accepted
18-5 appraisal standards and practices were used by the appraisal
18-6 district in valuing a particular category of property, and that the
18-7 taxable values assigned to each category of property by the
18-8 appraisal district are valid, the appraisal roll value of that
18-9 category of property is presumed to represent taxable value. In
18-10 the absence of such a presumption, the comptroller shall estimate
18-11 the taxable value of that category of property using generally
18-12 accepted standard valuation, statistical compilation, and analysis
18-13 techniques. For the purposes of this section, "taxable value"
18-14 means market value less:
18-15 (1) the total dollar amount of any exemptions of
18-16 part but not all of the value of taxable property required by the
18-17 constitution or a statute that a district lawfully granted in the
18-18 year that is the subject of the study;
18-19 (2) the total dollar amount of any exemptions
18-20 granted within a reinvestment zone under agreements authorized by
18-21 the Property Redevelopment and Tax Abatement Act (Chapter 312, Tax
18-22 Code);
18-23 (3) the total dollar amount of any captured
18-24 appraised value of property that is located in a reinvestment zone
18-25 and that is eligible for tax increment financing under the Tax
18-26 Increment Financing Act (Chapter 311, Tax Code);
18-27 (4) the total dollar amount of any exemptions
19-1 granted under Section 11.251, Tax Code;
19-2 (5) the difference between the market value and
19-3 the productivity value of land that qualifies for appraisal on the
19-4 basis of its productive capacity, except that the productivity
19-5 value may not exceed the fair market value of the land;
19-6 (6) the portion of the appraised value of
19-7 residence homesteads of the elderly on which school district taxes
19-8 are not imposed in the year that is the subject of the study,
19-9 calculated as if the residence homesteads were appraised at the
19-10 full value required by law;
19-11 (7) a portion of the market value of property
19-12 not otherwise fully taxable by the district at market value because
19-13 of action required by statute or the Texas Constitution that, if
19-14 the tax rate adopted by the district is applied to it, produces an
19-15 amount equal to the difference between the tax that the district
19-16 would have imposed on the property if the property were fully
19-17 taxable at market value and the tax that the district is actually
19-18 authorized to impose on the property; and
19-19 (8) the market value of all tangible personal
19-20 property, other than manufactured homes, owned by a family or
19-21 individual and not held or used for the production of income.
19-22 (h) For the purposes of this section, "school district"
19-23 includes a unified school <county education> district system
19-24 established under Subchapter G, Chapter 20, of this code.
19-25 SECTION 21. Section 1.04(12), Tax Code, is amended to read
19-26 as follows:
19-27 (12) "Taxing unit" means a county, an incorporated
20-1 city or town (including a home-rule city), a school district, <a
20-2 county education district,> a special district or authority
20-3 (including a junior college district, a hospital district, a
20-4 district created by or pursuant to the Water Code, a mosquito
20-5 control district, a fire prevention district, or a noxious weed
20-6 control district), or any other political unit of this state,
20-7 whether created by or pursuant to the constitution or a local,
20-8 special, or general law, that is authorized to impose and is
20-9 imposing ad valorem taxes on property even if the governing body of
20-10 another political unit determines the tax rate for the unit or
20-11 otherwise governs its affairs.
20-12 SECTION 22. Section 6.02(b), Tax Code, is amended to read as
20-13 follows:
20-14 (b) A taxing unit <other than a county education district>
20-15 that has boundaries extending into two or more counties may choose
20-16 to participate in only one of the appraisal districts. In that
20-17 event, the boundaries of the district chosen extend outside the
20-18 county to the extent of the unit's boundaries. To be effective,
20-19 the choice must be approved by resolution of the board of directors
20-20 of the district chosen. <A county education district that has
20-21 boundaries extending into two or more counties must participate in
20-22 each appraisal district in which one of its component school
20-23 districts participates for purposes of appraisal of the component
20-24 school district's territory.>
20-25 SECTION 23. Sections 6.03(c)-(e), Tax Code, are amended to
20-26 read as follows:
20-27 (c) Members of the board of directors are appointed by vote
21-1 of the governing bodies of the incorporated cities and towns, the
21-2 school districts <other than the county education district>, and,
21-3 if entitled to vote, the conservation and reclamation districts
21-4 that participate in the district and of the county. A governing
21-5 body may cast all its votes for one candidate or distribute them
21-6 among candidates for any number of directorships. Conservation and
21-7 reclamation districts are not entitled to vote unless at least one
21-8 conservation and reclamation district in the district delivers to
21-9 the chief appraiser a written request to nominate and vote on the
21-10 board of directors by June 1 of each odd-numbered year. On receipt
21-11 of a request, the chief appraiser shall certify a list by June 15
21-12 of all eligible conservation and reclamation districts that are
21-13 imposing taxes and that participate in the district.
21-14 (d) The voting entitlement of a taxing unit that is entitled
21-15 to vote for directors is determined by dividing the total dollar
21-16 amount of property taxes imposed in the district by the taxing unit
21-17 for the preceding tax year by the sum of the total dollar amount of
21-18 property taxes imposed in the district for that year by each taxing
21-19 unit that is entitled to vote, by multiplying the quotient by
21-20 1,000, and by rounding the product to the nearest whole number.
21-21 That number is multiplied by the number of directorships to be
21-22 filled. <For a school district, the total dollar amount of
21-23 property taxes imposed in the district by the unit is considered to
21-24 be the sum of the taxes imposed by the district and the revenue
21-25 received by the district from the county education district.> A
21-26 taxing unit participating in two or more districts is entitled to
21-27 vote in each district in which it participates, but only the taxes
22-1 imposed in a district are used to calculate voting entitlement in
22-2 that district.
22-3 (e) The chief appraiser shall calculate the number of votes
22-4 to which each taxing unit other than a conservation and reclamation
22-5 district is entitled and shall deliver written notice to each of
22-6 those units of its voting entitlement before October 1 of each
22-7 odd-numbered year. The chief appraiser shall deliver the notice:
22-8 (1) to the county judge and each commissioner of the
22-9 county served by the appraisal district;
22-10 (2) to the presiding officer of the governing body of
22-11 each city or town participating in the appraisal district, to the
22-12 city manager of each city or town having a city manager, and to the
22-13 city secretary or clerk, if there is one, of each city or town that
22-14 does not have a city manager; and
22-15 (3) to the presiding officer of the governing body of
22-16 each school district<, other than the county education district,>
22-17 participating in the district and to the superintendent of each
22-18 <those> school district <districts>.
22-19 SECTION 24. Sections 6.06(d) and (h), Tax Code, are amended
22-20 to read as follows:
22-21 (d) Each taxing unit participating in the district<, other
22-22 than a county education district,> is allocated a portion of the
22-23 amount of the budget equal to the proportion that the total dollar
22-24 amount of property taxes imposed in the district by the unit for
22-25 the tax year in which the budget proposal is prepared bears to the
22-26 sum of the total dollar amount of property taxes imposed in the
22-27 district by each participating unit for that year. <For a school
23-1 district, other than a county education district, the total dollar
23-2 amount of property taxes imposed in the district by the unit is
23-3 considered to be the sum of the taxes imposed by the district and
23-4 the revenue received by the district from the county education
23-5 district.> If a taxing unit participates in two or more districts,
23-6 only the taxes imposed in a district are used to calculate the
23-7 unit's cost allocations in that district. If the number of real
23-8 property parcels in a taxing unit is less than 5 percent of the
23-9 total number of real property parcels in the district and the
23-10 taxing unit imposes in excess of 25 percent of the total amount of
23-11 the property taxes imposed in the district by all of the
23-12 participating taxing units for a year, the unit's allocation may
23-13 not exceed a percentage of the appraisal district's budget equal to
23-14 three times the unit's percentage of the total number of real
23-15 property parcels appraised by the district.
23-16 (h) If a newly formed taxing unit or a taxing unit that did
23-17 not impose taxes in the preceding year<, other than a county
23-18 education district,> imposes taxes in any tax year, that unit is
23-19 allocated a portion of the amount budgeted to operate the district
23-20 as if it had imposed taxes in the preceding year, except that the
23-21 amount of taxes the unit imposes in the current year is used to
23-22 calculate its allocation. Before the amount of taxes to be imposed
23-23 for the current year is known, the allocation may be based on an
23-24 estimate to which the district board of directors and the governing
23-25 body of the unit agree, and the payments made after that amount is
23-26 known shall be adjusted to reflect the amount imposed. The
23-27 payments of a newly formed taxing unit that has no source of funds
24-1 are postponed until the unit has received adequate tax or other
24-2 revenues.
24-3 SECTION 25. Sections 11.13(d), (e), (m), and (n), Tax Code,
24-4 are amended to read as follows:
24-5 (d) In addition to the exemptions provided by Subsections
24-6 (b) and (c) of this section, an individual who is disabled or is 65
24-7 or older is entitled to an exemption from taxation by a taxing unit
24-8 of a portion (the amount of which is fixed as provided by
24-9 Subsection (e) of this section) of the appraised value of his
24-10 residence homestead if the exemption is adopted either:
24-11 (1) by the governing body of the taxing unit <other
24-12 than a county education district>; or
24-13 (2) by a favorable vote of a majority of the qualified
24-14 voters of the taxing unit at an election called by the governing
24-15 body of a taxing unit <other than a county education district>, and
24-16 the governing body shall call the election on the petition of at
24-17 least 20 percent of the number of qualified voters who voted in the
24-18 preceding election of the taxing unit<; or>
24-19 <(3) by a favorable vote of a majority of the
24-20 qualified voters of a county education district at an election held
24-21 under Section 20.950, Education Code>.
24-22 (e) The amount of an exemption adopted as provided by
24-23 Subsection (d) of this section is $3,000 of the appraised value of
24-24 the residence homestead unless a larger amount is specified by:
24-25 (1) the governing body authorizing the exemption if
24-26 the exemption is authorized as provided by Subdivision (1) of
24-27 Subsection (d) of this section; or
25-1 (2) the petition for the election if the exemption is
25-2 authorized as provided by Subdivision (2) of Subsection (d) of this
25-3 section<; or>
25-4 <(3) the proposition approved at an election held
25-5 under Section 20.950, Education Code>.
25-6 (m) In this section:
25-7 (1) "Disabled" means under a disability for purposes
25-8 of payment of disability insurance benefits under Federal Old-Age,
25-9 Survivors, and Disability Insurance.
25-10 (2) "School district" means a political subdivision
25-11 organized to provide or finance general elementary and secondary
25-12 public education. <"School district" includes a county education
25-13 district established by the consolidation of the local school
25-14 districts in its boundaries for the limited purpose of exercising a
25-15 portion of the taxing power previously authorized by the voters in
25-16 those school districts.> "School district" does not include a
25-17 junior college district or a political subdivision organized to
25-18 provide special education services.
25-19 (n) In addition to any other exemptions provided by this
25-20 section, an individual is entitled to an exemption from taxation by
25-21 a taxing unit <other than a county education district> of a
25-22 percentage of the appraised value of his residence homestead if the
25-23 exemption is adopted by the governing body of the taxing unit
25-24 before May 1 in the manner provided by law for official action by
25-25 the body. If the percentage set by the taxing unit produces an
25-26 exemption in a tax year of less than $5,000 when applied to a
25-27 particular residence homestead, the individual is entitled to an
26-1 exemption of $5,000 of the appraised value. The percentage adopted
26-2 by the taxing unit may not exceed 20 percent. <In addition to any
26-3 other exemptions provided by this section, an individual is
26-4 entitled to an exemption from taxation by a county education
26-5 district of a percentage of the appraised value of his residence
26-6 homestead if the exemption is adopted by the voters of the district
26-7 at an election held in the district for that purpose under Section
26-8 20.946, Education Code. If the percentage set by the voters
26-9 produces an exemption in a tax year of less than $5,000 when
26-10 applied to a particular residence homestead, the individual is
26-11 entitled to an exemption of $5,000 of the appraised value. The
26-12 percentage adopted by the voters may not exceed 20 percent.>
26-13 SECTION 26. Sections 11.14(c) and (e), Tax Code, are amended
26-14 to read as follows:
26-15 (c) The governing body of a taxing unit<, other than a
26-16 county education district,> by resolution or order, depending upon
26-17 the method prescribed by law for official action by that governing
26-18 body, may provide for taxation of tangible personal property
26-19 exempted under Subsection (a). <The voters of a county education
26-20 district, by an election held under Section 20.951, Education Code,
26-21 may provide for taxation of tangible personal property exempted
26-22 under Subsection (a).> If a taxing unit provides for taxation of
26-23 tangible personal property as provided by this subsection, the
26-24 exemption prescribed by Subsection (a) does not apply to that unit.
26-25 (e) A political subdivision <other than a county education
26-26 district> choosing to tax property otherwise made exempt by this
26-27 section, pursuant to Article VIII, Section 1(e), of the Texas
27-1 Constitution, may not do so until the governing body of the
27-2 political subdivision has held a public hearing on the matter,
27-3 after having given notice of the hearing at the times and in the
27-4 manner required by this subsection, and has found that the action
27-5 will be in the public interest of all the residents of that
27-6 political subdivision. At the hearing, all interested persons are
27-7 entitled to speak and present evidence for or against taxing the
27-8 property. Not later than the 30th day prior to the date of a
27-9 hearing held under this subsection, notice of the hearing must be:
27-10 (1) published in a newspaper having general
27-11 circulation in the political subdivision and in a section of the
27-12 newspaper other than the advertisement section;
27-13 (2) not less than one-half of one page in size; and
27-14 (3) republished on not less than three separate days
27-15 during the period beginning with the 10th day prior to the hearing
27-16 and ending with the actual date of the hearing.
27-17 SECTION 27. All county education districts are abolished.
27-18 SECTION 28. (a) On the effective date of this Act, the
27-19 funds and other assets of a county education district are
27-20 transferred to its component school districts in proportion to the
27-21 amount contributed by each component in the manner provided by rule
27-22 of the commissioner of education.
27-23 (b) On the effective date of this Act, the contracts and
27-24 other liabilities of a county education district are transferred to
27-25 its component school districts in the manner provided by rule of
27-26 the commissioner of education.
27-27 (c) Each component school district of a county education
28-1 district may collect and use delinquent taxes imposed by the county
28-2 education district on property within the component's boundaries in
28-3 the manner provided by rule of the commissioner of education.
28-4 (d) The commissioner of education shall adopt rules for the
28-5 maintenance of county education district records.
28-6 (e) The commissioner of education shall adopt rules required
28-7 under this section.
28-8 SECTION 29. (a) The following provisions of the Education
28-9 Code are repealed:
28-10 (1) Sections 1.05, 16.009, 16.010, 16.011, 20.941(c),
28-11 20.946, 20.949, 20.950, and 20.951; and
28-12 (2) Subchapter J, Chapter 16.
28-13 (b) The following sections of the Tax Code are
28-14 repealed: 6.061(f), 26.12(e), and 312.002(e) and (f).
28-15 SECTION 30. This Act takes effect immediately. The
28-16 commissioner of education shall act as soon as possible to create
28-17 unified school districts under this Act to be in place beginning
28-18 September 1, 1993. For that purpose, the commissioner of education
28-19 may order in each unified system established in 1993 the tax
28-20 authorization election required by Section 20.9442, Education Code,
28-21 as added by this Act. For that limited purpose and in that limited
28-22 circumstance, the commissioner has the powers of a board of
28-23 trustees of the unified district under that section.
28-24 SECTION 31. The importance of this legislation and the
28-25 crowded condition of the calendars in both houses create an
28-26 emergency and an imperative public necessity that the
28-27 constitutional rule requiring bills to be read on three several
29-1 days in each house be suspended, and this rule is hereby suspended,
29-2 and that this Act take effect and be in force from and after its
29-3 passage, and it is so enacted.