By: Rabuck H.B. No. 1840
72S40083 CAE-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to financing public schools.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Sections 16.001 and 16.002, Education Code, are
1-5 amended to read as follows:
1-6 Sec. 16.001. State Policy. <(a)> It is the policy of the
1-7 State of Texas that the provision of public education is a state
1-8 responsibility and that a thorough <and efficient> system be
1-9 provided and <substantially> financed through state revenue sources
1-10 so that each student enrolled in the public school system shall
1-11 have access to programs and services that are appropriate to his or
1-12 her basic educational needs <and that are substantially equal to
1-13 those available to any similar student, notwithstanding varying
1-14 local economic factors>.
1-15 <(b) The public school finance system of the State of Texas
1-16 shall adhere to a standard of neutrality which provides for
1-17 substantially equal access to similar revenue per student at
1-18 similar tax effort, considering all state and local tax revenues of
1-19 districts after acknowledging all legitimate student and district
1-20 cost differences.>
1-21 Sec. 16.002. Purpose of Foundation School Program. <(a)>
1-22 The purpose <purposes> of the Foundation School Program set forth
1-23 in this chapter is <are> to guarantee that each school district in
1-24 the state has<:>
2-1 <(1)> adequate resources to provide each eligible
2-2 student a basic instructional program and facilities suitable to
2-3 the student's educational needs<; and>
2-4 <(2) access to a substantially equalized program of
2-5 financing in excess of basic costs for certain services, as
2-6 provided by this chapter.>
2-7 <(b) The Foundation School Program consists of two tiers to
2-8 provide for the purposes specified by Subsection (a) of this
2-9 section. The first tier guarantees sufficient financing for all
2-10 school districts to provide a basic program of education that meets
2-11 accreditation and other legal standards. The second tier provides
2-12 a guaranteed yield system of financing to provide all school
2-13 districts with substantially equal access to funds to provide an
2-14 enriched program and additional funds for facilities>.
2-15 SECTION 2. Section 16.007(a), Education Code, is amended to
2-16 read as follows:
2-17 (a) Each school district <and each county education
2-18 district> shall participate in the Public Education Information
2-19 Management System (PEIMS) and shall provide through that system
2-20 information required for the administration of this chapter and of
2-21 other appropriate provisions of this code.
2-22 SECTION 3. Subchapter C, Chapter 16, Education Code, is
2-23 amended to read as follows:
2-24 SUBCHAPTER C. <BASIC> ENTITLEMENT FOR CORE CURRICULUM
2-25 Sec. 16.101. Basic Allotment. A <For each student in
2-26 average daily attendance, not including the time students spend
2-27 each day in special education or vocational education programs for
3-1 which an additional allotment is made under Subchapter D of this
3-2 chapter, a> district is entitled to an allotment in an amount
3-3 sufficient to pay for the entire cost to the district of offering
3-4 the core curriculum as provided by Section 16.102 of this code <of
3-5 $2,200 for the 1991-1992 school year, $2,400 for the 1992-1993
3-6 school year, $2,600 for the 1993-1994 school year, and $2,800 for
3-7 the 1994-1995 school year and thereafter or a greater amount
3-8 adopted by the foundation school fund budget committee under
3-9 Section 16.256 of this code for the 1993-1994 school year and each
3-10 school year thereafter>. A greater amount for any school year may
3-11 be provided by appropriation.
3-12 Sec. 16.102. CORE CURRICULUM <COST OF EDUCATION ADJUSTMENT>.
3-13 (a) The Central Education Agency shall develop a core curriculum
3-14 that will provide all students with a basic education. The agency
3-15 shall submit the curriculum to the State Board of Education for
3-16 approval not later than August 1 of each even-numbered year. The
3-17 State Board of Education shall adopt a core curriculum not later
3-18 than September 1 of each even-numbered year. The core curriculum
3-19 must be offered by every district receiving funds under this
3-20 chapter. The State Board of Education shall evaluate and, if
3-21 necessary, amend the elements of the curriculum not later than
3-22 September 1 of every even-numbered year <basic allotment for each
3-23 district is adjusted to reflect the geographic variation in known
3-24 resource costs and costs of education due to factors beyond the
3-25 control of the school district. Except as provided by this
3-26 section, the adjustment is that provided under Section 16.206 of
3-27 this code>.
4-1 (b) The core curriculum adopted by the State Board of
4-2 Education under Subsection (a) of this section must include
4-3 elements sufficient to provide every student with a basic education
4-4 as required by Section 16.001 of this chapter <adjustment for the
4-5 1991-1992 and 1992-1993 school years is the cost of education index
4-6 and formula adopted in December 1990 by the foundation school fund
4-7 budget committee. For the 1991-1992 and 1992-1993 school years,
4-8 the commissioner of education shall recalculate the cost of
4-9 education index for school districts that are eligible for the
4-10 adjustment under Section 16.103 of this code, excluding from the
4-11 computation the calculation for the diseconomies of scale component
4-12 and substituting a value of 1.00. This subsection expires
4-13 September 1, 1993>.
4-14 (c) The agency shall determine the cost for all school
4-15 districts to provide the core curriculum and the cost to provide
4-16 the facilities needed for the core curriculum and shall submit that
4-17 amount to the comptroller of public accounts not later than
4-18 November 1 of each even-numbered year. If the core curriculum can
4-19 be financed by the amount certified to the comptroller for the
4-20 foundation school fund under Section 16.256(b) of this code, the
4-21 comptroller shall certify the core curriculum. If the curriculum
4-22 cannot be completely financed by that amount, the comptroller shall
4-23 return the curriculum to the agency with instructions to amend the
4-24 elements of the curriculum to reduce the cost to an amount
4-25 available through the foundation school fund.
4-26 Sec. 16.103. LOCAL ENRICHMENT. A school district may tax
4-27 local property as provided by Chapter 20 of this code for programs
5-1 and facilities approved by the Central Education Agency. The
5-2 agency must approve or disapprove the use of the tax not later than
5-3 the 30th day after the date the school district submits the
5-4 proposed use of the tax to the agency. <SMALL DISTRICT ADJUSTMENT.
5-5 (a) The basic allotment for certain small districts is adjusted in
5-6 accordance with Subsections (b) and (c) of this section. In this
5-7 section:>
5-8 <(1) "AA" is the district's adjusted allotment per
5-9 student;>
5-10 <(2) "ADA" is the number of students in average daily
5-11 attendance for which the district is entitled to an allotment under
5-12 Section 16.101 of this code; and>
5-13 <(3) "ABA" is the adjusted basic allotment determined
5-14 under Section 16.102 of this code.>
5-15 <(b) The average daily attendance of a school district that
5-16 contains at least 300 square miles and has not more than 1,600
5-17 students in average daily attendance is adjusted by applying the
5-18 formula:>
5-19 <(c) The average daily attendance of a school district that
5-20 contains less than 300 square miles and has not more than 1,600
5-21 students in average daily attendance is adjusted by applying the
5-22 formula:>
5-23 <(e) This section expires September 1, 1993.>
5-24 <Sec. 16.1031. USE OF SMALL DISTRICT ADJUSTMENTS IN
5-25 CALCULATING SPECIAL ALLOTMENTS. In determining the amount of a
5-26 special allotment under Subchapter D of this chapter for a district
5-27 to which Section 16.103 of this code applies, a district's adjusted
6-1 basic allotment is considered to be the district's adjusted
6-2 allotment determined under Section 16.103. This section expires
6-3 September 1, 1993.>
6-4 <Sec. 16.104. SPARSITY ADJUSTMENT. Notwithstanding Sections
6-5 16.101, 16.102, and 16.103 of this code, a school district that has
6-6 fewer than 130 students in average daily attendance shall be
6-7 provided an adjusted basic allotment on the basis of 130 average
6-8 daily attendance if it offers a kindergarten through grade 12
6-9 program and has prior or current year's average daily attendance of
6-10 at least 90 students or is 30 miles or more by bus route from the
6-11 nearest high school district. A district offering a kindergarten
6-12 through grade 8 program whose prior or current year's average daily
6-13 attendance was at least 50 students or which is 30 miles or more by
6-14 bus route from the nearest high school district shall be provided
6-15 an adjusted basic allotment on the basis of 75 average daily
6-16 attendance. An average daily attendance of 60 students shall be
6-17 the basis of providing the adjusted basic allotment if a district
6-18 offers a kindergarten through grade 6 program and has prior or
6-19 current year's average daily attendance of at least 40 students or
6-20 is 30 miles or more by bus route from the nearest high school
6-21 district. This section expires September 1, 1993.>
6-22 SECTION 4. The heading of Subchapter F, Chapter 16,
6-23 Education Code, is amended to read as follows:
6-24 SUBCHAPTER F. ACCOUNTABLE COSTS OF CORE CURRICULUM <EDUCATION>
6-25 SECTION 5. Sections 16.201, 16.202, and 16.205, Education
6-26 Code, are amended to read as follows:
6-27 Sec. 16.201. Purpose. The accountable costs of core
7-1 curriculum study is <education studies are> designed to support the
7-2 development of the <equalized> funding elements necessary to
7-3 provide an efficient state <and local public> school finance system
7-4 which meets the state policy established in Section 16.001 of this
7-5 code and provides the research basis for the <equalized> funding
7-6 <elements under the provisions of Section 16.256 of this code>.
7-7 Sec. 16.202. STUDY <Studies>. (a) On a biennial basis, the
7-8 Legislative Education Board and the Legislative Budget Board, with
7-9 the assistance of the Educational Economic Policy Center and the
7-10 Central Education Agency, shall complete a study of <each of the
7-11 following studies and develop recommended amounts where appropriate
7-12 for each year of the next biennium:>
7-13 <(1) a study of the fiscal neutrality of the system to
7-14 determine the status of the state and local finance system with
7-15 regard to the policies established under the provisions of Section
7-16 16.001 of this code, including recommendations for adjustments
7-17 necessary to maintain fiscal neutrality;>
7-18 <(2)> the accountable costs per student <to school
7-19 districts> of providing basic educational programs, personnel,
7-20 facilities, and other operating costs that meet <accreditation>
7-21 criteria of the core curriculum <and the provisions of law and
7-22 regulation;>
7-23 <(3) program cost differentials designed by program to
7-24 provide support for the added expense of high cost courses or
7-25 programs for students participating in such courses or programs,
7-26 with the program funding level expressed as dollar amounts and as
7-27 weights applied to the adjusted basic allotment for the appropriate
8-1 year;>
8-2 <(4) transportation and career ladder allotments;>
8-3 <(5) the levels of tax effort necessary for each tier
8-4 of the Foundation School Program necessary to fulfill the
8-5 requirements of Sections 16.001 and 16.008 of this code; and>
8-6 <(6) capital outlay and debt service requirements and
8-7 formula elements for the requirements of Subchapter I of this
8-8 chapter or other provisions of this chapter>.
8-9 (b) The cost per student of providing the core curriculum
8-10 determined under Subsection (a) of this section shall be submitted
8-11 to the Central Education Agency not later than October 1 of each
8-12 even-numbered year.
8-13 Sec. 16.205. Efficiency in Administration Report. (a) The
8-14 commissioner of education shall conduct a study to determine the
8-15 most appropriate and efficient method for reporting and monitoring
8-16 the allocation of resources by school districts.
8-17 (b) The study shall identify the most effective means for
8-18 calculating, monitoring, and reporting the proportion of resources
8-19 that school districts allocate for their administrative costs and
8-20 shall include administrator-teacher ratios.
8-21 (c) The study shall include a description of average
8-22 efficient administrative expenditures by districts with
8-23 consideration of district size and demographics.
8-24 (d) Prior to the beginning of each regular session of the
8-25 legislature, the agency shall provide a report with recommendations
8-26 to the Legislative Education Board and the legislature.
8-27 (e) The study is an element of the study of core curriculum
9-1 <accountable> costs <of education> under this subchapter.
9-2 SECTION 6. Section 16.251, Education Code, is amended to
9-3 read as follows:
9-4 Sec. 16.251. Financing; General Rule. (a) The sum of the
9-5 cost of the core curriculum constitutes <basic allotment under
9-6 Subchapter C, the special allotments under Subchapter D, and the
9-7 guaranteed yield allotments under Subchapter H, computed in
9-8 accordance with the provisions of this chapter, constitute> the
9-9 total cost of the Foundation School Program.
9-10 (b) The program shall be financed by:
9-11 (1) <ad valorem tax revenue generated by an equalized
9-12 uniform county education district effort;>
9-13 <(2) ad valorem tax revenue generated by local school
9-14 district effort in excess of the equalized uniform county education
9-15 district effort;>
9-16 <(3)> state available school funds distributed in
9-17 accordance with law; and
9-18 (2) <(4)> state funds appropriated for the purposes of
9-19 public school education and allocated to each district in an amount
9-20 sufficient to finance the cost of each district's Foundation School
9-21 Program <not covered by other funds specified in this subsection>.
9-22 <(c) The commissioner of education shall compute for each
9-23 school district the total amount, if any, by which the district's
9-24 total revenue is reduced from one school year to the next because
9-25 of a change in the method of finance under this chapter. The
9-26 commissioner shall certify the amount of the reduction to the
9-27 school district for use in determining the school district's
10-1 rollback rate under Section 26.08, Tax Code.>
10-2 SECTION 7. Sections 16.254(a), (b), and (d), Education Code,
10-3 are amended to read as follows:
10-4 (a) The commissioner of education shall determine annually:
10-5 (1) the amount of money necessary to operate a
10-6 Foundation School Program in each school district; and
10-7 (2) <the amount of local funds due the school district
10-8 from the local fund assignment of the county education district;
10-9 and>
10-10 <(3)> the amount of state available school funds
10-11 distributed to each school district.
10-12 (b) The commissioner of education shall then grant to each
10-13 school district from the Foundation School Program appropriation
10-14 the amount of funds necessary to provide the difference between
10-15 Subdivision (1) and Subdivision <the sum of Subdivisions> (2) <and
10-16 (3)> of Subsection (a) of this section.
10-17 (d) Notwithstanding any other provision of this chapter, if
10-18 for any year the total cost <state's share> of the Foundation
10-19 School Program, as determine under this chapter, exceeds the total
10-20 amount appropriated for that year, the commissioner shall reduce
10-21 the total amount of state funds allocated to each district by an
10-22 amount determined by a method under which the application of the
10-23 same number of cents of increase in tax rate applied to the taxable
10-24 value of property of each district, as determined under Section
10-25 11.86 of this code, results in a levy for each district equal to
10-26 the amount deducted from that district's allocation.
10-27 SECTION 8. Sections 11.10(r) and (s), Education Code, are
11-1 amended to read as follows:
11-2 (r) Costs <Except for certain transportation costs, costs>
11-3 of operation of the regional day school programs for the deaf shall
11-4 be borne by the state and paid from the Foundation School Program
11-5 Fund. Such costs shall be considered and included by the
11-6 Foundation School Fund Budget Committee in estimating the needs for
11-7 purposes of the Foundation School Program and the regional day
11-8 school programs for the deaf. However, funds allocated to
11-9 countywide schools shall remain so allocated except in those
11-10 regions in which the countywide program has been made a part of the
11-11 appropriate region, as aforesaid. While the principal cost of
11-12 educating deaf children shall be borne by the state, independent
11-13 school districts and all institutions of higher learning in the
11-14 state are hereby authorized and encouraged to make available real
11-15 or personal property or services in cooperation with the regional
11-16 day school programs for the deaf for any activities related to
11-17 education and betterment of education of deaf children including
11-18 but not limited to research and personnel training and development.
11-19 The school district in which a regional day school is located shall
11-20 bear the costs of transporting students in the program who live
11-21 within the district <and is entitled to have those students counted
11-22 in its allotment of transportation funds from the state>. The
11-23 regional day school program shall bear the costs of transporting
11-24 children who live outside the district to the regional day school.
11-25 It is the intent of the legislature in enacting this subsection
11-26 that the use of all of the educational resources of this state be
11-27 maximized to carry out the intent and objectives of this Act.
12-1 (s) Operating costs for the program in each regional day
12-2 school program for the deaf shall be determined and paid on the
12-3 following basis:
12-4 (1) An estimated allocation of $2,700 for each student
12-5 enrolled in the program of the regional day school program for the
12-6 deaf in any current year.
12-7 (2) Teachers, principals, supervisors, counselors,
12-8 para-professional and supporting personnel shall be employed in
12-9 such numbers as the Central Education Agency finds to be necessary
12-10 to establish and operate the regional day school programs for the
12-11 deaf, and such numbers shall not be less than student-professional
12-12 ratios known to be requisite for success in education of deaf
12-13 children. Salaries of all personnel employed in the regional day
12-14 school programs for the deaf shall be determined in accordance with
12-15 policies established by the State Board of Education.
12-16 <(3) Local districts may receive allocations for
12-17 transportation of students participating in the regional day school
12-18 programs on the same basis as that provided for in Section 16.206
12-19 of this code.>
12-20 SECTION 9. Section 11.29(e), Education Code, is amended to
12-21 read as follows:
12-22 (e) The budget cost of operating the Central Education
12-23 Agency which is paid from the foundation school program fund shall
12-24 be included in the estimated cost of the Foundation School Program
12-25 <which is computed by the State Board of Education in March of each
12-26 year for the determination of the local fund assignment to be
12-27 charged to each school district>.
13-1 SECTION 10. Section 11.32(f), Education Code, is amended to
13-2 read as follows:
13-3 (f) Basic costs for the provision of regional education
13-4 services to school districts and coordination of educational
13-5 planning in the region and for administrative costs necessary to
13-6 support these services shall be paid from the Foundation School
13-7 Fund. Each Regional Education Service Center shall receive an
13-8 annual allotment of $200,000, with the remainder of the funds
13-9 available under the provisions of this subsection to be allocated
13-10 to the Regional Education Service Centers on the basis of the
13-11 average daily attendance within the area of operation for each
13-12 Regional Education Service Center as determined for the next
13-13 preceding school year. The allotment amounts here authorized to be
13-14 granted by the State Board of Education shall not exceed in any
13-15 year a sum equal to .45 percent multiplied by the following
13-16 specified elements of cost <contained in the Foundation School
13-17 Program> for the current school year: salaries, maintenance and
13-18 operation, vocational operating costs, transportation-regular,
13-19 transportation-special education, transportation-vocational
13-20 education, agency administration, other special education programs,
13-21 vocational contract services, bilingual education, preschool
13-22 non-English speaking, preschool deaf, compensatory education,
13-23 driver education, and minimum aid.
13-24 SECTION 11. Section 11.86(a), Education Code, is amended to
13-25 read as follows:
13-26 (a) The comptroller shall conduct an annual study using
13-27 comparable sales and generally accepted auditing and sampling
14-1 techniques to determine the total value of all taxable property in
14-2 each <county education> school district <and each of its component
14-3 school districts>. The study shall determine the taxable value of
14-4 all property and of each category of property within the district
14-5 and the productivity value of all land that qualifies for appraisal
14-6 on the basis of its productive capacity and for which the owner has
14-7 applied for and received a productivity appraisal. In conducting
14-8 the study, the comptroller shall review the appraisal standards,
14-9 procedures, and methodology used by each appraisal district to
14-10 determine the taxable value of property in each school district.
14-11 The review must test the validity of the taxable values assigned to
14-12 each category of property by the appraisal district:
14-13 (1) using, if appropriate, samples selected through
14-14 generally accepted sampling techniques; and
14-15 (2) according to generally accepted standard
14-16 valuation, statistical compilation, and analysis techniques. If
14-17 the comptroller finds in the annual study that generally accepted
14-18 appraisal standards and practices were used by the appraisal
14-19 district in valuing a particular category of property, and that the
14-20 taxable values assigned to each category of property by the
14-21 appraisal district are valid, the appraisal roll value of that
14-22 category of property is presumed to represent taxable value. In
14-23 the absence of such a presumption, the comptroller shall estimate
14-24 the taxable value of that category of property using generally
14-25 accepted standard valuation, statistical compilation, and analysis
14-26 techniques. For the purposes of this section, "taxable value"
14-27 means market value less:
15-1 (1) the total dollar amount of any exemptions of
15-2 part but not all of the value of taxable property required by the
15-3 constitution or a statute that a district lawfully granted in the
15-4 year that is the subject of the study;
15-5 (2) the total dollar amount of any exemptions
15-6 granted within a reinvestment zone under agreements authorized by
15-7 the Property Redevelopment and Tax Abatement Act (Chapter 312, Tax
15-8 Code);
15-9 (3) the total dollar amount of any captured
15-10 appraised value of property that is located in a reinvestment zone
15-11 and that is eligible for tax increment financing under the Tax
15-12 Increment Financing Act (Chapter 311, Tax Code);
15-13 (4) the total dollar amount of any exemptions
15-14 granted under Section 11.251, Tax Code;
15-15 (5) the difference between the market value and
15-16 the productivity value of land that qualifies for appraisal on the
15-17 basis of its productive capacity, except that the productivity
15-18 value may not exceed the fair market value of the land;
15-19 (6) the portion of the appraised value of
15-20 residence homesteads of the elderly on which school district taxes
15-21 are not imposed in the year that is the subject of the study,
15-22 calculated as if the residence homesteads were appraised at the
15-23 full value required by law;
15-24 (7) a portion of the market value of property
15-25 not otherwise fully taxable by the district at market value because
15-26 of action required by statute or the Texas Constitution that, if
15-27 the tax rate adopted by the district is applied to it, produces an
16-1 amount equal to the difference between the tax that the district
16-2 would have imposed on the property if the property were fully
16-3 taxable at market value and the tax that the district is actually
16-4 authorized to impose on the property; and
16-5 (8) the market value of all tangible personal
16-6 property, other than manufactured homes, owned by a family or
16-7 individual and not held or used for the production of income.
16-8 SECTION 12. Section 14.063, Education Code, is amended to
16-9 read as follows:
16-10 Sec. 14.063. Fund Administration; Technology Allotment. (a)
16-11 The Central Education Agency shall administer the technology fund
16-12 and shall make annual disbursements from the technology fund. Each
16-13 school district is entitled to a percentage of the fund that is
16-14 equal to the district's percentage of the total number of students
16-15 in average daily attendance in the state
16-16 <(b) Each school district is entitled to an annual allotment
16-17 for the purposes provided under Section 14.064 of this code equal
16-18 to its> unadjusted average daily attendance <multiplied by:>
16-19 <(1) $30 for the 1992-1993 school year, or a greater
16-20 amount provided by appropriation;>
16-21 <(2) $35 for the 1993-1994 school year, or a greater
16-22 amount provided by appropriation;>
16-23 <(3) $40 for the 1994-1995 school year, or a greater
16-24 amount provided by appropriation;>
16-25 <(4) $45 for the 1995-1996 school year, or a greater
16-26 amount provided by appropriation; and>
16-27 <(5) $50 for the 1996-1997 school year and for each
17-1 school year thereafter, or a greater amount provided by
17-2 appropriation>.
17-3 (b) <(c) The cost of the technology allotment is shared by
17-4 the state and district in the same percentages as the district's
17-5 Foundation School Program under Chapter 16 of this code. The
17-6 state's share is paid from the technology fund.>
17-7 <(d)> The State Board of Education shall establish rules for
17-8 the administration of this section. The rules shall provide that
17-9 the equipment purchased shall meet the standards established under
17-10 this chapter.
17-11 <(e) If an insufficient amount is available in the fund for
17-12 the state's share of the allotments under Subsection (b) of this
17-13 section, the agency shall reduce each district's allotment by
17-14 application of the formula adopted under Section 16.254(d) of this
17-15 code.>
17-16 SECTION 13. Sections 20.04(b) and (d), Education Code, are
17-17 amended to read as follows:
17-18 (b) In each proposition submitted to authorize the issuance
17-19 of bonds there shall be included the question of whether the
17-20 governing board or commissioners court shall be authorized to levy
17-21 and pledge, and cause to be assessed and collected, annual ad
17-22 valorem taxes, on all taxable property in the district, either--
17-23 (1) sufficient, without limit as to rate or amount, to
17-24 pay the principal of and interest on said bonds; or
17-25 (2) sufficient to pay the principal of and interest on
17-26 said bonds, provided that the annual aggregate bond taxes in the
17-27 district shall never be more than the rate <(not to exceed $1 on
18-1 the $100 valuation of taxable property in the district)> stated in
18-2 said proposition.
18-3 (d) In each proposition submitted to authorize the levy of
18-4 maintenance taxes there shall be included the question of whether
18-5 the governing board or commissioners court shall be authorized to
18-6 levy, and cause to be assessed and collected, annual ad valorem
18-7 taxes, for the further maintenance of public free schools, of not
18-8 to exceed the rate <(which shall be not more than $1.50 on the $100
18-9 valuation of taxable property in the district)> stated in said
18-10 proposition.
18-11 SECTION 14. Section 21.063, Education Code, is amended to
18-12 read as follows:
18-13 Sec. 21.063. Tuition Fee for Transfer Students. The
18-14 receiving district may charge a tuition fee to the extent that the
18-15 district's actual expenditure per student in average daily
18-16 attendance, determinable by its board of trustees, exceeds the sum
18-17 the district benefits from state aid sources as provided in Section
18-18 21.062 of this code <and county education funds distributed under
18-19 Subchapter J, Chapter 16, of this code>. However, unless a tuition
18-20 fee is prescribed and set out in transfer agreement prior to its
18-21 execution by the parties, no increase in tuition charge shall be
18-22 made for the year of that transfer that exceeds the tuition charge,
18-23 if any, of the preceding school year.
18-24 SECTION 15. Section 21.173(a), Education Code, is amended to
18-25 read as follows:
18-26 (a) Except as otherwise provided by this section, a school
18-27 district that receives funding under the Foundation School Program
19-1 <Subsection (h) of Section 16.156 of this code> may not require or
19-2 allow a child to stand on a school bus that is in motion.
19-3 SECTION 16. Section 21.177(d), Education Code, is amended to
19-4 read as follows:
19-5 (d) In approving a transportation system for a district or
19-6 county, consideration shall be given to providing transportation
19-7 for only those pupils who reside in hazardous areas or live two or
19-8 more miles from the school they attend except handicapped pupils.
19-9 No consideration shall be given to providing transportation for
19-10 pupils transferred from one district to another when their grades
19-11 are taught in their home district unless transferred as provided by
19-12 law and transportation has been approved as provided by law. A
19-13 district may provide transportation to pupils to after-school child
19-14 care facilities or to pupils who live within two miles of the
19-15 school they attend, and may charge a reasonable fee for such
19-16 transportation<, provided that such transportation shall not be
19-17 eligible for funding pursuant to Section 16.156 of this code>.
19-18 SECTION 17. Section 21.181, Education Code, is amended to
19-19 read as follows:
19-20 Sec. 21.181. Contract With Transportation Company or System.
19-21 (a) As an alternative to maintaining and operating a complete
19-22 public school transportation system under this subchapter, a county
19-23 or local district school board may contract with a public or
19-24 commercial transportation company or system for all or any part of
19-25 its public school transportation if the board is able to obtain an
19-26 economically advantageous contract, provided that the commercial
19-27 transportation company or system:
20-1 (1) requires its school bus drivers to be certified by
20-2 the Central Education Agency;
20-3 (2) uses only those school buses in transporting
20-4 public school students that satisfy safety requirements imposed by
20-5 law on school buses operated by public school transportation
20-6 systems; and
20-7 (3) agrees to meet the alternative fuels requirements
20-8 of Section 21.174 for those buses dedicated to the contract;
20-9 provided, however, the company or system may claim all exceptions
20-10 available to county and local district school boards under Section
20-11 21.174.
20-12 (b) A contract is economically advantageous if the cost of
20-13 the service contracted for is equal to or less than the total cost
20-14 to the school district for providing its own complete bus service.
20-15 (c) <The total cost to the school district is the state
20-16 transportation cost allotment plus the supplementary funds
20-17 necessarily provided by the local school district to provide
20-18 complete transportation services. In determining if a contract is
20-19 economically advantageous, taxes paid by the commercial
20-20 transportation company or system on gasoline, diesel fuel, or
20-21 liquefied petroleum gas may not be considered.>
20-22 <(c) This section in no way prohibits the local school board
20-23 from supplementing the state transportation cost allotment with
20-24 local funds necessary to provide complete transportation services.>
20-25 <(d)> The State Board of Education shall adopt rules for the
20-26 administration of this section.
20-27 (d) <(e)> Contracts for alternative public school
21-1 transportation may include provisions for transporting students to
21-2 and from approved school activities.
21-3 <(f) Upon approval of the contract by the State Board of
21-4 Education, the portion of the annual transportation allotment which
21-5 is to be used to finance the contract for alternative
21-6 transportation services shall be included in the annual
21-7 transportation cost allotment for the respective county or
21-8 district.>
21-9 SECTION 18. Section 21.552(c), Education Code, is amended to
21-10 read as follows:
21-11 (c) The Central Education Agency shall develop and
21-12 distribute study guides to assist parents in providing remedial
21-13 assistance during the period that school is recessed for summer to
21-14 students who do not perform satisfactorily on one or more parts of
21-15 the assessment instrument administered at the third, fifth, or
21-16 seventh grade level. <The commissioner of education shall retain a
21-17 portion of the total amount allotted under Section 16.152(a) of
21-18 this code that the commissioner considers appropriate to finance
21-19 the development and distribution of the study guides and shall
21-20 reduce each district's allotment proportionately.>
21-21 SECTION 19. Section 105.95(e), Education Code, is amended to
21-22 read as follows:
21-23 (e) The academy is not subject to the provisions of this
21-24 code, or to the rules of the Central Education Agency, regulating
21-25 public schools, except that:
21-26 (1) professional employees of the academy are entitled
21-27 to the limited liability of an employee under Section 21.912 or
22-1 21.914 of this code;
22-2 (2) a student's attendance at the academy satisfies
22-3 compulsory school attendance requirements; and
22-4 (3) for each student enrolled, the academy is entitled
22-5 to allotments from the foundation school program under Chapter 16
22-6 of this code as if the academy were a school district<, except that
22-7 the academy has a local share applied that is equivalent to the
22-8 local share assignment of the Denton Independent School District>.
22-9 SECTION 20. Section 1.04, Tax Code, is amended by amending
22-10 Subdivision (12) to read as follows:
22-11 (12) "Taxing unit" means a county, an incorporated
22-12 city or town (including a home-rule city), a school district, <a
22-13 county education district,> a special district or authority
22-14 (including a junior college district, a hospital district, a
22-15 district created by or pursuant to the Water Code, a mosquito
22-16 control district, a fire prevention district, or a noxious weed
22-17 control district), or any other political unit of this state,
22-18 whether created by or pursuant to the constitution or a local,
22-19 special, or general law, that is authorized to impose and is
22-20 imposing ad valorem taxes on property even if the governing body of
22-21 another political unit determines the tax rate for the unit or
22-22 otherwise governs its affairs.
22-23 SECTION 21. Section 6.02(b), Tax Code, is amended to read as
22-24 follows:
22-25 (b) A taxing unit <other than a county education district>
22-26 that has boundaries extending into two or more counties may choose
22-27 to participate in only one of the appraisal districts. In that
23-1 event, the boundaries of the district chosen extend outside the
23-2 county to the extent of the unit's boundaries. To be effective,
23-3 the choice must be approved by resolution of the board of directors
23-4 of the district chosen. <A county education district that has
23-5 boundaries extending into two or more counties must participate in
23-6 each appraisal district in which one of its component school
23-7 districts participates for purposes of appraisal of the component
23-8 school district's territory.>
23-9 SECTION 22. Sections 6.03(c)-(e), Tax Code, are amended to
23-10 read as follows:
23-11 (c) Members of the board of directors are appointed by vote
23-12 of the governing bodies of the incorporated cities and towns, the
23-13 school districts <other than the county education district>, and,
23-14 if entitled to vote, the conservation and reclamation districts
23-15 that participate in the district and of the county. A governing
23-16 body may cast all its votes for one candidate or distribute them
23-17 among candidates for any number of directorships. Conservation and
23-18 reclamation districts are not entitled to vote unless at least one
23-19 conservation and reclamation district in the district delivers to
23-20 the chief appraiser a written request to nominate and vote on the
23-21 board of directors by June 1 of each odd-numbered year. On receipt
23-22 of a request, the chief appraiser shall certify a list by June 15
23-23 of all eligible conservation and reclamation districts that are
23-24 imposing taxes and that participate in the district.
23-25 (d) The voting entitlement of a taxing unit that is entitled
23-26 to vote for directors is determined by dividing the total dollar
23-27 amount of property taxes imposed in the district by the taxing unit
24-1 for the preceding tax year by the sum of the total dollar amount of
24-2 property taxes imposed in the district for that year by each taxing
24-3 unit that is entitled to vote, by multiplying the quotient by
24-4 1,000, and by rounding the product to the nearest whole number.
24-5 That number is multiplied by the number of directorships to be
24-6 filled. <For a school district, the total dollar amount of
24-7 property taxes imposed in the district by the unit is considered to
24-8 be the sum of the taxes imposed by the district and the revenue
24-9 received by the district from the county education district.> A
24-10 taxing unit participating in two or more districts is entitled to
24-11 vote in each district in which it participates, but only the taxes
24-12 imposed in a district are used to calculate voting entitlement in
24-13 that district.
24-14 (e) The chief appraiser shall calculate the number of votes
24-15 to which each taxing unit other than a conservation and reclamation
24-16 district is entitled and shall deliver written notice to each of
24-17 those units of its voting entitlement before October 1 of each
24-18 odd-numbered year. The chief appraiser shall deliver the notice:
24-19 (1) to the county judge and each commissioner of the
24-20 county served by the appraisal district;
24-21 (2) to the presiding officer of the governing body of
24-22 each city or town participating in the appraisal district, to the
24-23 city manager of each city or town having a city manager, and to the
24-24 city secretary or clerk, if there is one, of each city or town that
24-25 does not have a city manager; and
24-26 (3) to the presiding officer of the governing body of
24-27 each school district<, other than the county education district,>
25-1 participating in the district and to the superintendent of each
25-2 <those> school district <districts>.
25-3 SECTION 23. Sections 6.06(d) and (h), Tax Code, are amended
25-4 to read as follows:
25-5 (d) Each taxing unit participating in the district<, other
25-6 than a county education district,> is allocated a portion of the
25-7 amount of the budget equal to the proportion that the total dollar
25-8 amount of property taxes imposed in the district by the unit for
25-9 the tax year in which the budget proposal is prepared bears to the
25-10 sum of the total dollar amount of property taxes imposed in the
25-11 district by each participating unit for that year. <For a school
25-12 district, other than a county education district, the total dollar
25-13 amount of property taxes imposed in the district by the unit is
25-14 considered to be the sum of the taxes imposed by the district and
25-15 the revenue received by the district from the county education
25-16 district.> If a taxing unit participates in two or more districts,
25-17 only the taxes imposed in a district are used to calculate the
25-18 unit's cost allocations in that district. If the number of real
25-19 property parcels in a taxing unit is less than 5 percent of the
25-20 total number of real property parcels in the district and the
25-21 taxing unit imposes in excess of 25 percent of the total amount of
25-22 the property taxes imposed in the district by all of the
25-23 participating taxing units for a year, the unit's allocation may
25-24 not exceed a percentage of the appraisal district's budget equal to
25-25 three times the unit's percentage of the total number of real
25-26 property parcels appraised by the district.
25-27 (h) If a newly formed taxing unit or a taxing unit that did
26-1 not impose taxes in the preceding year<, other than a county
26-2 education district,> imposes taxes in any tax year, that unit is
26-3 allocated a portion of the amount budgeted to operate the district
26-4 as if it had imposed taxes in the preceding year, except that the
26-5 amount of taxes the unit imposes in the current year is used to
26-6 calculate its allocation. Before the amount of taxes to be imposed
26-7 for the current year is known, the allocation may be based on an
26-8 estimate to which the district board of directors and the governing
26-9 body of the unit agree, and the payments made after that amount is
26-10 known shall be adjusted to reflect the amount imposed. The
26-11 payments of a newly formed taxing unit that has no source of funds
26-12 are postponed until the unit has received adequate tax or other
26-13 revenues.
26-14 SECTION 24. Sections 11.13(d), (e), (m), and (n), Tax Code,
26-15 are amended to read as follows:
26-16 (d) In addition to the exemptions provided by Subsections
26-17 (b) and (c) of this section, an individual who is disabled or is 65
26-18 or older is entitled to an exemption from taxation by a taxing unit
26-19 of a portion (the amount of which is fixed as provided by
26-20 Subsection (e) of this section) of the appraised value of his
26-21 residence homestead if the exemption is adopted either:
26-22 (1) by the governing body of the taxing unit <other
26-23 than a county education district>; or
26-24 (2) by a favorable vote of a majority of the qualified
26-25 voters of the taxing unit at an election called by the governing
26-26 body of the taxing unit <other than a county education district>,
26-27 and the governing body shall call the election on the petition of
27-1 at least 20 percent of the number of qualified voters who voted in
27-2 the preceding election of the taxing unit<; or>
27-3 <(3) by a favorable vote of a majority of the
27-4 qualified voters of a county education district at an election held
27-5 under Section 20.950, Education Code>.
27-6 (e) The amount of an exemption adopted as provided by
27-7 Subsection (d) of this section is $3,000 of the appraised value of
27-8 the residence homestead unless a larger amount is specified by:
27-9 (1) the governing body authorizing the exemption if
27-10 the exemption is authorized as provided by Subdivision (1) of
27-11 Subsection (d) of this section; or
27-12 (2) the petition for the election if the exemption is
27-13 authorized as provided by Subdivision (2) of Subsection (d) of this
27-14 section<; or>
27-15 <(3) the proposition approved at an election held
27-16 under Section 20.950, Education Code>.
27-17 (m) In this section:
27-18 (1) "Disabled" means under a disability for purposes
27-19 of payment of disability insurance benefits under Federal Old-Age,
27-20 Survivors, and Disability Insurance.
27-21 (2) "School district" means a political subdivision
27-22 organized to provide general elementary and secondary public
27-23 education. <"School district" includes a county education district
27-24 established by the consolidation of the local school districts in
27-25 its boundaries for the limited purpose of exercising a portion of
27-26 the taxing power previously authorized by the voters in those
27-27 school districts.> "School district" does not include a junior
28-1 college district or a political subdivision organized to provide
28-2 special education services.
28-3 (n) In addition to any other exemptions provided by this
28-4 section, an individual is entitled to an exemption from taxation by
28-5 a taxing unit <other than a county education district> of a
28-6 percentage of the appraised value of his residence homestead if the
28-7 exemption is adopted by the governing body of the taxing unit
28-8 before May 1 in the manner provided by law for official action by
28-9 the body. If the percentage set by the taxing unit produces an
28-10 exemption in a tax year of less than $5,000 when applied to a
28-11 particular residence homestead, the individual is entitled to an
28-12 exemption of $5,000 of the appraised value. The percentage adopted
28-13 by the taxing unit may not exceed 20 percent. <In addition to any
28-14 other exemptions provided by this section, an individual is
28-15 entitled to an exemption from taxation by a county education
28-16 district of a percentage of the appraised value of his residence
28-17 homestead if the exemption is adopted by the voters of the district
28-18 at an election held in the district for that purpose under Section
28-19 20.946, Education Code. If the percentage set by the voters
28-20 produces an exemption in a tax year of less than $5,000 when
28-21 applied to a particular residence homestead, the individual is
28-22 entitled to an exemption of $5,000 of the appraised value. The
28-23 percentage adopted by the voters may not exceed 20 percent.>
28-24 SECTION 25. Sections 11.14(c) and (e), Tax Code, are amended
28-25 to read as follows:
28-26 (c) The governing body of a taxing unit<, other than a
28-27 county education district,> by resolution or order, depending upon
29-1 the method prescribed by law for official action by that governing
29-2 body, may provide for taxation of tangible personal property
29-3 exempted under Subsection (a). <The voters of a county education
29-4 district, by an election held under Section 20.951, Education Code,
29-5 may provide for taxation of tangible personal property exempted
29-6 under Subsection (a).> If a taxing unit provides for taxation of
29-7 tangible personal property as provided by this subsection, the
29-8 exemption prescribed by Subsection (a) does not apply to that unit.
29-9 (e) A political subdivision <other than a county education
29-10 district> choosing to tax property otherwise made exempt by this
29-11 section, pursuant to Article VIII, Section 1(e), of the Texas
29-12 Constitution, may not do so until the governing body of the
29-13 political subdivision has held a public hearing on the matter,
29-14 after having given notice of the hearing at the times and in the
29-15 manner required by this subsection, and has found that the action
29-16 will be in the public interest of all the residents of that
29-17 political subdivision. At the hearing, all interested persons are
29-18 entitled to speak and present evidence for or against taxing the
29-19 property. Not later than the 30th day prior to the date of a
29-20 hearing held under this subsection, notice of the hearing must be:
29-21 (1) published in a newspaper having general
29-22 circulation in the political subdivision and in a section of the
29-23 newspaper other than the advertisement section;
29-24 (2) not less than one-half of one page in size; and
29-25 (3) republished on not less than three separate days
29-26 during the period beginning with the 10th day prior to the hearing
29-27 and ending with the actual date of the hearing.
30-1 SECTION 26. All county education districts are abolished.
30-2 SECTION 27. (a) On the effective date of this Act, the
30-3 funds and other assets of a county education district are
30-4 transferred to its component school districts in the manner
30-5 provided by rule of the commissioner of education.
30-6 (b) On the effective date of this Act, the contracts and
30-7 other liabilities of a county education district are transferred to
30-8 its component school districts in the manner provided by rule of
30-9 the commissioner of education.
30-10 (c) The component school districts of a county education
30-11 district may collect and use or distribute taxes imposed by the
30-12 county education district that are delinquent in the manner
30-13 provided by rule of the commissioner of education.
30-14 (d) The commissioner of education shall adopt rules for the
30-15 maintenance of county education district records.
30-16 (e) The commissioner of education shall adopt rules required
30-17 under this section not later than July 31, 1993.
30-18 SECTION 28. For 1993, a school district's effective
30-19 maintenance rate under Section 26.08(a), Tax Code, and its
30-20 effective maintenance and operation rate under Section 26.08(e),
30-21 Tax Code, is increased by an amount equal to the county education
30-22 district's tax rate in the 1992-1993 school year.
30-23 SECTION 29. (a) The following provisions of the Education
30-24 Code are repealed:
30-25 (1) Sections 1.05, 15.16, 16.007(c), 16.008-16.011,
30-26 16.203, 16.204, 16.206, 16.252, 16.256(d)-(g), 16.258, 19.027(f)
30-27 and (g), 20.09, 21.112(m), 21.172(b), 21.182(f), and 21.558;
31-1 (2) Subchapters D, H, and J, Chapter 16; and
31-2 (3) Subchapter G, Chapter 20.
31-3 (b) The following sections of the Tax Code are
31-4 repealed: 6.061(f), 26.12(e), and 312.002(e) and (f).
31-5 SECTION 30. This Act applies beginning with the 1993-1994
31-6 school year.
31-7 SECTION 31. The importance of this legislation and the
31-8 crowded condition of the calendars in both houses create an
31-9 emergency and an imperative public necessity that the
31-10 constitutional rule requiring bills to be read on three several
31-11 days in each house be suspended, and this rule is hereby suspended.