By Allen H.B. No. 2875
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. Subchapter A, Chapter 16, Education Code, is
1-5 amended by adding Section 16.0011 to read as follows:
1-6 Sec. 16.0011. PROGRAM. The education excellence program is
1-7 established under this chapter for the support of public schools.
1-8 A reference in law to the foundation school program is a reference
1-9 to the education excellence program.
1-10 SECTION 2. Section 16.007(a), Education Code, is amended to
1-11 read as follows:
1-12 (a) Each school district <and each county education
1-13 district> shall participate in the Public Education Information
1-14 Management System (PEIMS) and shall provide through that system
1-15 information required for the administration of this chapter and of
1-16 other appropriate provisions of this code.
1-17 SECTION 3. Sections 16.201 and 16.202, Education Code, are
1-18 amended to read as follows:
1-19 Sec. 16.201. Purpose. The accountable costs of education
1-20 studies are designed to support the development of the equalized
1-21 funding <elements> necessary to provide an efficient state and
1-22 local public school finance system which meets the state policy
1-23 established in Section 16.001 of this code and provides the
2-1 research basis for the equalized funding <elements under the
2-2 provisions of Section 16.256 of this code>.
2-3 Sec. 16.202. Studies. On a biennial basis, the Legislative
2-4 Education Board and the Legislative Budget Board, with the
2-5 assistance of the Educational Economic Policy Center and the
2-6 Central Education Agency, shall complete each of the following
2-7 studies and develop recommended amounts where appropriate for each
2-8 year of the next biennium:
2-9 (1) a study of the fiscal neutrality of the system to
2-10 determine the status of the state and local finance system with
2-11 regard to the policies established under the provisions of Section
2-12 16.001 of this code, including recommendations for adjustments
2-13 necessary to maintain fiscal neutrality; and
2-14 (2) the accountable costs per student to school
2-15 districts of providing educational programs, personnel, and other
2-16 operating costs that meet accreditation criteria and the provisions
2-17 of law and regulation<;>
2-18 <(3) program cost differentials designed by program to
2-19 provide support for the added expense of high cost courses or
2-20 programs for students participating in such courses or programs,
2-21 with the program funding level expressed as dollar amounts and as
2-22 weights applied to the adjusted basic allotment for the appropriate
2-23 year;>
2-24 <(4) transportation and career ladder allotments;>
2-25 <(5) the levels of tax effort necessary for each tier
3-1 of the Foundation School Program necessary to fulfill the
3-2 requirements of Sections 16.001 and 16.008 of this code; and>
3-3 <(6) capital outlay and debt service requirements and
3-4 formula elements for the requirements of Subchapter I of this
3-5 chapter or other provisions of this chapter>.
3-6 SECTION 4. Sections 16.251(a) and (b), Education Code, are
3-7 amended to read as follows:
3-8 (a) The <sum of the basic allotment under Subchapter C, the
3-9 special allotments under Subchapter D, and the guaranteed yield
3-10 allotments under Subchapter H, computed in accordance with the
3-11 provisions of this chapter, constitute the total> cost of the
3-12 Education Excellence <Foundation School> Program is<.>
3-13 <(b) The program shall be> financed by:
3-14 (1) <ad valorem tax revenue generated by an equalized
3-15 uniform county education district effort;>
3-16 <(2)> ad valorem tax revenue generated by local school
3-17 district <district effort in excess of the equalized uniform county
3-18 education district effort>;
3-19 (2) <(3)> state available school funds distributed in
3-20 accordance with law; and
3-21 (3) <(4)> state funds appropriated for the purposes of
3-22 public school education and allocated to each district in an amount
3-23 sufficient to finance the cost of the program that is <each
3-24 district's Foundation School Program> not covered by other funds
3-25 specified in this subsection.
4-1 SECTION 5. Section 16.252, Education Code, is amended to
4-2 read as follows:
4-3 Sec. 16.252. GUARANTEED AMOUNT <LOCAL SHARE OF PROGRAM COST
4-4 (TIER ONE)>. (a) The education excellence program guarantees each
4-5 school district an amount of $4,400 per student in average daily
4-6 attendance. To qualify for that amount a district must levy ad
4-7 valorem taxes at a rate that results in a levy that is equal to the
4-8 levy that results from the application of the rate of $1.25 per
4-9 $100 valuation to the district's taxable value of property as
4-10 determined under Section 11.86 of this code.
4-11 (b) If a district does not levy ad valorem taxes at a rate
4-12 equal to or greater than the rate required under this section, that
4-13 district may not receive funds allocated to the education
4-14 equalization excellence fund by Section 151.801(e), Tax Code.
4-15 (c) <Each county education district's share of the
4-16 Foundation School Program shall be an amount determined by the
4-17 following formula:>
4-18 <where:>
4-19 <"LFA" is the county education district's local share;>
4-20 <"TR" is a tax rate which for each hundred dollars of
4-21 valuation is $0.72 for the 1991-1992 school year, $0.82 for the
4-22 1992-1993 school year, $0.92 for the 1993-1994 school year, and
4-23 $1.00 for each school year thereafter; and>
4-24 <"DPV" is the taxable value of property in the county
4-25 education district for the prior tax year determined under Section
5-1 11.86 of this code.>
5-2 <(b)> The commissioner of education shall adjust the values
5-3 reported in the official report of the comptroller as required by
5-4 Section 5.09(a), Property Tax Code to reflect reductions in taxable
5-5 value of property resulting from natural or economic disaster after
5-6 January 1 in the year in which the valuations are determined. The
5-7 decision of the commissioner of education shall be final. <An
5-8 adjustment does not affect the local fund assignment of any other
5-9 county education district.>
5-10 (d) <(c)> Appeals of district values shall be held pursuant
5-11 to Subsection (e) of Section 11.86 of this code.
5-12 <(d) A county education district shall raise its total local
5-13 share of the foundation school program. The funds shall be
5-14 reallocated to the school districts in the county education
5-15 district in the manner prescribed by Subchapter J of this chapter.>
5-16 (e) The commissioner of education shall hear appeals from
5-17 <county education> districts which have experienced a rapid decline
5-18 in tax base <used in calculating the local fund assignment>,
5-19 exceeding eight percent of prior year, that is beyond the control
5-20 of the board of trustees of the <county education> district. The
5-21 commissioner of education may adjust the <county education>
5-22 district's taxable values <for local fund assignment purposes> for
5-23 such losses in value exceeding eight percent <and thereby adjust
5-24 the local fund assignment to reflect the local current year taxable
5-25 value>. The decision of the commissioner of education shall be
6-1 final. <An adjustment does not affect the local fund assignment of
6-2 any other county education district.>
6-3 (f) No district receiving funds from the education
6-4 equalization excellence fund shall ever receive fewer state funds,
6-5 other than from the available school fund, per student in average
6-6 daily attendance than was received in that district during the
6-7 1992-1993 scholastic year. The amount guaranteed per average daily
6-8 attendance in Subsection (a) of this section shall never be less
6-9 than $4,400 adjusted to reflect changes in the Consumer Price
6-10 Index. For the purposes of this section, the term "Consumer Price
6-11 Index" means the average of the Consumer Price Index for all-urban
6-12 consumers as the close of the 12-month period ending on June 30 of
6-13 each year as calculated by the U.S. Department of Labor. <For the
6-14 purposes of Subsection (a) of the section, a county education
6-15 district's "DPV" for the 1991-1992 school year is the sum of the
6-16 taxable value of property for the prior tax year determined under
6-17 Section 11.86 of this code for the school districts composing the
6-18 county education district. This subsection expires September 1,
6-19 1992.>
6-20 SECTION 6. Subchapter G, Chapter 16, Education Code, is
6-21 amended by adding Section 16.253 to read as follows:
6-22 Sec. 16.253. EDUCATION EQUALIZATION EXCELLENCE FUND. (a)
6-23 The education equalization excellence fund is a special fund in the
6-24 state treasury. The fund consists of revenue credited to the fund
6-25 under Section 16.256(d), Education Code, Section 5.01(a) State
7-1 Lottery Act (Article 179g, Vernon's Texas Civil Statutes), and
7-2 legislative appropriations.
7-3 (b) A reference in law to the foundation school fund is a
7-4 reference to the education equalization excellence fund.
7-5 SECTION 7. Section 16.254(a), Education Code, is amended to
7-6 read as follows:
7-7 (a) The commissioner of education shall determine annually:
7-8 (1) the amount of money guaranteed under the Education
7-9 Excellence <necessary to operate a Foundation School> Program in
7-10 each school district;
7-11 (2) the amount of local funds generated in <due> the
7-12 school district by the district's ad valorem tax levy or the levy
7-13 required under Section 16.252(a) of this code <from the local fund
7-14 assignment of the county education district>; and
7-15 (3) the amount of state available school funds
7-16 distributed to each school district.
7-17 SECTION 8. Sections 16.256(a)-(d), Education Code, are
7-18 amended to read as follows:
7-19 (a) The education equalization excellence <foundation
7-20 school> fund budget committee is composed of the governor, the
7-21 lieutenant governor, <and> the comptroller of public accounts, the
7-22 attorney general, and the chairman of the State Board of Education.
7-23 A reference in law to the foundation school fund budget committee
7-24 is a reference to the education equalization excellence fund budget
7-25 committee.
8-1 (b) On or before July 1 <November 1> before each regular
8-2 session of the legislature, the budget committee shall determine
8-3 and certify to the comptroller of public accounts an amount of
8-4 money to be placed in the education equalization excellence
8-5 <foundation school> fund for the succeeding biennium for the
8-6 purpose of financing the Education Excellence <Foundation School>
8-7 Program an described in this code.
8-8 (c) Prior to a regular session of the legislature, the <The>
8-9 budget committee may<, during the biennium,> change the estimate of
8-10 money necessary to finance the Education Excellence <Foundation
8-11 School> Program.
8-12 (d) At the beginning of each fiscal year, the comptroller of
8-13 public accounts shall deposit to the credit of the education
8-14 equalization excellence fund from the first money coming into the
8-15 state treasury, not otherwise dedicated by the constitution or
8-16 encumbered by a prior appropriation, the amount certified by the
8-17 budget committee for the purposes of financing the Education
8-18 Excellence Program under provisions of Section 16.256(b) of this
8-19 code. These funds shall be reserved subject to appropriation by
8-20 the legislature for this purpose <The foundation school fund budget
8-21 committee shall adopt rules for the calculation for each year of a
8-22 biennium of the qualified funding elements necessary to achieve the
8-23 state funding policy under Section 16.001 of this code not later
8-24 than the 1994-1995 school year and for each year thereafter. In
8-25 the calculation of these funding elements, the committee shall
9-1 consider the report of the Legislative Education Board prescribed
9-2 under Section 16.008 of this code>.
9-3 SECTION 9. Section 16.258(b), Education Code, is amended to
9-4 read as follows:
9-5 (b) If the district would have received a greater amount
9-6 from the education equalization excellence <foundation school> fund
9-7 for the applicable school year using the adjusted value, the
9-8 commissioner shall add the difference to subsequent distributions
9-9 to the district from the <foundation school> fund. <An adjustment
9-10 does not affect the local fund assignment of any other district.>
9-11 SECTION 10. Sections 11.10(r) and (s), Education Code, are
9-12 amended to read as follows:
9-13 (r) Costs <Except for certain transportation costs, costs>
9-14 of operation of the regional day school programs for the deaf shall
9-15 be borne by the state and paid from the Education Equalization
9-16 Excellence <Foundation School Program> Fund. Such costs shall be
9-17 considered and included by the Education Equalization Excellence
9-18 <Foundation School> Fund Budget Committee in estimating the needs
9-19 for purposes of the Education Excellence <Foundation School>
9-20 Program and the regional day school programs for the deaf.
9-21 However, funds allocated to countywide schools shall remain so
9-22 allocated except in those regions in which the countywide program
9-23 has been made a part of the appropriate region, as aforesaid.
9-24 While the principal cost of educating deaf children shall be borne
9-25 by the state, independent school districts and all institutions of
10-1 higher learning in the state are hereby authorized and encouraged
10-2 to make available real or personal property or services in
10-3 cooperation with the regional day school programs for the deaf for
10-4 any activities related to education and betterment of education of
10-5 deaf children including but not limited to research and personnel
10-6 training and development. The school district in which a regional
10-7 day school is located shall bear the costs of transporting students
10-8 in the program who live within the district <and is entitled to
10-9 have those students counted in its allotment of transportation
10-10 funds from the state>. The regional day school program shall bear
10-11 the costs of transporting children who live outside the district to
10-12 the regional day school. It is the intent of the legislature in
10-13 enacting this subsection that the use of all of the educational
10-14 resources of this state be maximized to carry out the intent and
10-15 objectives of this Act.
10-16 (s) Operating costs for the program in each regional day
10-17 school program for the deaf shall be determined and paid on the
10-18 following basis:
10-19 (1) An estimated allocation of $2,700 for each student
10-20 enrolled in the program of the regional day school program for the
10-21 deaf in any current year.
10-22 (2) Teachers, principals, supervisors, counselors,
10-23 paraprofessional and supporting personnel shall be employed in such
10-24 numbers as the Central Education Agency finds to be necessary to
10-25 establish and operate the regional day school programs for the
11-1 deaf, and such numbers shall not be less than student-professional
11-2 ratios known to be requisite for success in education of deaf
11-3 children. Salaries of all personnel employed in the regional day
11-4 school programs for the deaf shall be determined in accordance with
11-5 policies established by the State Board of Education.
11-6 <(3) Local districts may receive allocations for
11-7 transportation of students participating in the regional day school
11-8 programs on the same basis as that provided for the Section 16.206
11-9 of this code.>
11-10 SECTION 11. Section 11.29(e), Education Code, is amended to
11-11 read as follows:
11-12 (e) The budget cost of operating the Central Education
11-13 Agency which is paid from the education equalization excellence
11-14 <foundation school program> fund shall be included in the estimated
11-15 cost of the Education Excellence <Foundation School> Program <which
11-16 is computed by the State Board of Education in March of each year
11-17 for the determination of the local fund assignment to be charged to
11-18 each school district>.
11-19 SECTION 12. Section 11.32(f), Education Code, is amended to
11-20 read as follows:
11-21 (f) Basic costs for the provision of regional education
11-22 services to school districts and coordination of educational
11-23 planning in the region and for the administrative costs necessary
11-24 to support these services shall be paid from the Education
11-25 Equalization Excellence <Foundation School> Fund. Each Regional
12-1 Education Service Center shall receive an annual allotment of
12-2 $200,000, with the remainder of the funds available under the
12-3 provisions of this subsection to be allocated to the Regional
12-4 Education Service Centers on the basis of the average daily
12-5 attendance within the area of operation for each Regional Education
12-6 Service Center as determined for the next preceding school year.
12-7 The allotment amounts here authorized to be granted by the State
12-8 Board of Education shall not exceed in any year a sum equal to .45
12-9 percent multiplied by the following specified elements of cost
12-10 <contained in the Foundation School Program> for the current school
12-11 year: salaries, maintenance and operation, vocational operating
12-12 costs, transportation-regular, transportation-special education,
12-13 transportation-vocational education, agency administration, other
12-14 special education programs, vocational contract services, bilingual
12-15 education, preschool non-English speaking, preschool deaf,
12-16 compensatory education, driver education, and minimum aid.
12-17 SECTION 13. Section 11.86(a), Education Code, is amended to
12-18 read as follows:
12-19 (a) The comptroller shall conduct an annual study using
12-20 comparable sales and generally accepted auditing and sampling
12-21 techniques to determine the total value of all taxable property in
12-22 each <county education> school district <and each of its component
12-23 school district>. The study shall determine the taxable value of
12-24 all property and of each category of property within the district
12-25 and the productivity value of all land that qualifies for appraisal
13-1 on the basis of its productive capacity and for which the owner has
13-2 applied for and received a productivity appraisal. In conducting
13-3 the study, the comptroller shall review the appraisal standards,
13-4 procedures, and methodology used by each appraisal district to
13-5 determine the taxable value of property in each school district.
13-6 The review must test the validity of the taxable values assigned to
13-7 each category of property by the appraisal district:
13-8 (1) using, if appropriate, samples selected through
13-9 generally accepted sampling techniques; and
13-10 (2) according to generally accepted standard
13-11 valuation, statistical compilation, and analysis techniques. If
13-12 the comptroller finds in the annual study that generally accepted
13-13 appraisal standards and practices were used by the appraisal
13-14 district in valuing a particular category of property, and that the
13-15 taxable values assigned to each category of property by the
13-16 appraisal are valid, the appraisal roll value of that category of
13-17 property is presumed to represent taxable value. In the absence of
13-18 such a presumption, the comptroller shall estimate the taxable
13-19 value of that category of property using generally accepted
13-20 standard valuation, statistical compilation, and analysis
13-21 techniques. For the purposes of this section, "taxable value"
13-22 means market value less:
13-23 (1) the total dollar amount of any exemptions of part
13-24 but not all of the value of taxable property required by the
13-25 constitution or a statute that a district lawfully granted in the
14-1 year that is the subject of the study;
14-2 (2) the total dollar amount of any exemptions granted
14-3 within a reinvestment zone under agreements authorized by the
14-4 Property Redevelopment and Tax Abatement Act (Chapter 312, Tax
14-5 Code);
14-6 (3) the total dollar amount of any captured appraisal
14-7 value of property that is located in a reinvestment zone and that
14-8 is eligible for tax increment financing under the Tax Increment
14-9 Financing Act (Chapter 311, Tax Code);
14-10 (4) the total dollar amount of any exemptions granted
14-11 under Section 11.251, Tax Code;
14-12 (5) the difference between the market value and the
14-13 productivity value of land that qualifies for appraisal on the
14-14 basis of its productive capacity, except that the productivity
14-15 value may not exceed the fair market value of the land;
14-16 (6) the portion of the appraised value of residence
14-17 homesteads of the elderly on which school district taxes are not
14-18 imposed in the year that is the subject of the study, calculated as
14-19 if the residence homesteads were appraised at the full value
14-20 required by law;
14-21 (7) a portion of the market value of property not
14-22 otherwise fully taxable by the district at market value because of
14-23 action required by statute or the Texas Constitution that, if the
14-24 tax rate adopted by the district is applied to it, produces an
14-25 amount equal to the difference between the tax that the district
15-1 would have imposed on the property if the property were fully
15-2 taxable at market value and the tax that the district is actually
15-3 authorized to impose on the property; and
15-4 (8) the market value of all tangible personal
15-5 property, other than manufactured homes, owned by a family or
15-6 individual and not held or used for the production of income.
15-7 SECTION 14. Section 21.063, Education Code, is amended to
15-8 read as follows:
15-9 Sec. 21.063. Tuition Fee for Transfer Students. The
15-10 receiving district may charge a tuition fee to the extent that the
15-11 district's actual expenditure per student in average daily
15-12 attendance, determinable by its board of trustees, exceeds the sum
15-13 the district benefits from state aid sources as provided in Section
15-14 21.062 of this code <and county education funds distributed under
15-15 Subchapter J, Chapter 16, of this code>. However, unless a tuition
15-16 fee is prescribed and set out in transfer agreement prior to its
15-17 execution by the parties, no increase in tuition charge shall be
15-18 made for the year of that transfer that exceeds the tuition charge,
15-19 if any, of the preceding school year.
15-20 SECTION 15. Section 21.173(a), Education Code, is amended to
15-21 read as follows:
15-22 (a) Except as otherwise provided by this section, a school
15-23 district that receives funding under the education excellence
15-24 program <Subsection (h) of Section 16.156 of this code> may not
15-25 require or allow a child to stand on a school bus that is in
16-1 motion.
16-2 SECTION 16. Section 21.177(d), Education Code, is amended to
16-3 read as follows:
16-4 (d) In approving a transportation system for a school
16-5 district or county, consideration shall be given to providing
16-6 transportation for only those pupils who reside in hazardous areas
16-7 or live two or more miles from the school they attend except
16-8 handicapped pupils. No consideration shall be given to providing
16-9 transportation for pupils transferred from one district to another
16-10 when their grades are taught in their home district unless
16-11 transferred as provided by law and transportation has been approved
16-12 as provided by law. A district may provide transportation to
16-13 pupils to after-school child care facilities or to pupils who live
16-14 within two miles of the school they attend, and may charge a
16-15 reasonable fee for such transportation<, provided that such
16-16 transportation shall not be eligible for funding pursuant to
16-17 Section 16.156 of this code>.
16-18 SECTION 17. Section 21.181, Education Code, is amended to
16-19 read as follows:
16-20 Sec. 21.181. Contract With Transportation Company or System.
16-21 (a) As an alternative to maintaining and operating a complete
16-22 public school transportation system under this subchapter, a county
16-23 or local district school board may contract with a public or
16-24 commercial transportation company or system for all or any part of
16-25 its public school transportation if the board is able to obtain an
17-1 economically advantageous contract, provided that the commercial
17-2 transportation company or system:
17-3 (1) requires its school bus drivers to be certified by
17-4 the Central Education Agency;
17-5 (2) uses only those school buses in transporting
17-6 public school students that satisfy safety requirements imposed by
17-7 law on school buses operated by public school transportation
17-8 systems; and
17-9 (3) agrees to meet the alternative fuels requirements
17-10 of Section 21.174 for those buses dedicated to the contract;
17-11 provided, however, the company or system may claim all exceptions
17-12 available to county and local district school boards under Section
17-13 21.174.
17-14 (b) A contract is economically advantageous if the cost of
17-15 the service contracted for is equal to or less than the total cost
17-16 to the school district for providing its own complete bus service.
17-17 <The total cost to the school district is the state transportation
17-18 cost allotment plus the supplementary funds necessarily provided by
17-19 the local school district to provide complete transportation
17-20 services. In determining if a contract is economically
17-21 advantageous, taxes paid by the commercial transportation company
17-22 or system on gasoline, diesel fuel, or liquefied petroleum gas may
17-23 not be considered.>
17-24 (c) <This section in no way prohibits the local school board
17-25 from supplementing the state transportation cost allotment with
18-1 local funds necessary to provide complete transportation services.>
18-2 <(d)> The State Board of Education shall adopt rules for the
18-3 administration of this section.
18-4 (d) <(e)> Contracts for alternative public school
18-5 transportation may include provisions for transporting students to
18-6 and from approved school activities.
18-7 <(f) Upon approval of the contract by the State Board of
18-8 Education, the portion of the annual transportation allotment which
18-9 is to be used to finance the contract for alternative
18-10 transportation services shall be included in the annual
18-11 transportation cost allotment for the respective county or
18-12 district.>
18-13 SECTION 18. Section 21.552(c), Education Code, is amended to
18-14 read as follows:
18-15 (c) The Central Education Agency shall develop and
18-16 distribute study guides to assist parents in providing remedial
18-17 assistance during the period that school is recessed for summer to
18-18 students who do not perform satisfactorily on one or more parts of
18-19 the assessment instrument administered at the third, fifth, or
18-20 seventh grade level. <The commissioner of education shall retain a
18-21 portion of the total amount allotted under Section 16.152(a) of
18-22 this code that the commissioner considers appropriate to finance
18-23 the development and distribution of the study guides and shall
18-24 reduce each district's allotment proportionately.>
18-25 SECTION 19. Section 105.95(e), Education Code, is amended to
19-1 read as follows:
19-2 (e) The academy is not subject to the provisions of this
19-3 code, or to the rules of the Central Education Agency, regulating
19-4 public schools, except that:
19-5 (1) professional employees of the academy are entitled
19-6 to the limited liability of an employee under Section 21.912 or
19-7 21.914 of this code;
19-8 (2) a student's attendance at the academy satisfies
19-9 compulsory school attendance requirements; and
19-10 (3) for each student enrolled, the academy is entitled
19-11 to allocate from the education excellence <foundation school>
19-12 program under Chapter 16 of this code as if the academy were a
19-13 school district<, except that the academy has a local share applied
19-14 that is equivalent to the local share assignment of the Denton
19-15 Independent School District>.
19-16 SECTION 20. Section 1.04(12), Tax Code, is amended to read
19-17 as follows:
19-18 (12) "Taxing unit" means a county, an incorporated
19-19 city or town (including a home-rule city), a school district, <a
19-20 county education district,> a special district or authority
19-21 (including a junior college district, a hospital district, a
19-22 district created by or pursuant to the Water Code, a mosquito
19-23 control district, a fire prevention district, or a noxious weed
19-24 control district), or any other political unit of this state,
19-25 whether created by or pursuant to the constitution or a local,
20-1 special, or general law, that is authorized to impose and is
20-2 imposing ad valorem taxes on property even if the governing body of
20-3 another political unit determines the tax rate for the unit or
20-4 otherwise governs its affairs.
20-5 SECTION 21. Section 6.02(b), Tax Code, is amended to read as
20-6 follows:
20-7 (b) A taxing unit <other than a county education district>
20-8 that has boundaries extending into two or more counties may choose
20-9 to participate in only one of the appraisal districts. In that
20-10 event, the boundaries of the district chosen extend outside the
20-11 county to the extent of the unit's boundaries. To be effective,
20-12 the choice must be approved by resolution of the board of directors
20-13 of the district chosen. <A county education district that has
20-14 boundaries extending into two or more counties must participate in
20-15 each appraisal district in which one of its component school
20-16 districts participates for purposes of appraisal of the component
20-17 school district's territory.>
20-18 SECTION 22. Sections 6.03(c)-(e), Tax Code, are amended to
20-19 read as follows:
20-20 (c) Members of the board of directors are appointed by vote
20-21 of the governing bodies of the incorporated cities and towns, the
20-22 school districts <other than the county education district>, and,
20-23 if entitled to vote, the conservation and reclamation districts
20-24 that participate in the district and of the county. A governing
20-25 body may cast all its votes for one candidate or distribute them
21-1 among candidates for any number of directorships. Conservation and
21-2 reclamation districts are not entitled to vote unless at least one
21-3 conservation and reclamation district in the district delivers to
21-4 the chief appraiser a written request to nominate and vote on the
21-5 board of directors by June 1 of each odd-numbered year. On receipt
21-6 of a request, the chief appraiser shall certify a list by June 15
21-7 of all eligible conservation and reclamation districts that are
21-8 imposing taxes and that participate in the district.
21-9 (d) The voting entitlement of a taxing unit that is entitled
21-10 to vote for directors is determined by dividing the total dollar
21-11 amount of property taxes imposed in the district by the taxing unit
21-12 for the preceding tax year by the sum of the total dollar amount of
21-13 property taxes imposed in the district for that year by each taxing
21-14 unit that is entitled to vote, by multiplying the quotient by 1,000
21-15 and by rounding the product to the nearest whole number. That
21-16 number is multiplied by the number of directorships to be filled.
21-17 <For a school district, the total dollar amount of property taxes
21-18 imposed in the district by the unit is considered to be the sum of
21-19 the taxes imposed by the district and the revenue received by the
21-20 district from the county education district.> A taxing unit
21-21 participating in two or more districts is entitled to vote in each
21-22 district in which it participates, but only the taxes imposed in a
21-23 district are used to calculate voting entitlement in that district.
21-24 (e) The chief appraiser shall calculate the number of votes
21-25 to which each taxing unit other than a conservation and reclamation
22-1 district is entitled and shall deliver written notice to each of
22-2 those units of its voting entitlement before October 1 of each
22-3 odd-numbered year. The chief appraiser shall deliver the notice:
22-4 (1) to the county judge and each commissioner of the
22-5 county served by the appraisal district;
22-6 (2) to the presiding officer of the governing body of
22-7 each city or town participating in the appraisal district, to the
22-8 city manager of each city or town having a city manager, and to the
22-9 city secretary or clerk, if there is one, of each city or town that
22-10 does not have a city manager; and
22-11 (3) to the presiding officer of the governing body of
22-12 each school district<, other than the county education district,>
22-13 participating in the district and to the superintendent of each
22-14 <those> school district <districts>.
22-15 SECTION 23. Sections 6.06(d) and (h), Tax Code, are amended
22-16 to read as follows:
22-17 (d) Each taxing unit participating in the district<, other
22-18 than a county education district,> is allocated a portion of the
22-19 amount of the budget equal to the proportion that the total dollar
22-20 amount of property taxes imposed in the district by the unit for
22-21 the tax year in which the budget proposal is prepared bears to the
22-22 sum of the total dollar amount of property taxes imposed in the
22-23 district by each participating unit for that year. <For a school
22-24 district, other than a county education district, the total dollar
22-25 amount of property taxes imposed in the district by the unit is
23-1 considered to be the sum of the taxes imposed by the district and
23-2 the revenue received by the district from the county education
23-3 district.> If a taxing unit participates in two or more districts,
23-4 only the taxes imposed in a district are used to calculate the
23-5 unit's cost allocations in that district. If the number of real
23-6 property parcels in a taxing unit is less than 5 percent of the
23-7 total number of real property parcels in the district and the
23-8 taxing unit imposes in excess of 25 percent of the total amount of
23-9 the property taxes imposed in the district by all of the
23-10 participating taxing units for a year, the unit's allocation may
23-11 not exceed a percentage of the appraisal district's budget equal to
23-12 three times the unit's percentage of the total number of real
23-13 property parcels appraised by the district.
23-14 (h) If a newly formed taxing unit or a taxing unit that did
23-15 not impose taxes in the preceding year<, other than a county
23-16 education district,> imposes taxes in any tax year, that unit is
23-17 allocated a portion of the amount budgeted to operate the district
23-18 as if it had imposed taxes in the preceding year, except that the
23-19 amount of taxes the unit imposes in the current year is used to
23-20 calculate its allocation. Before the amount of taxes to be imposed
23-21 for the current year is known, the allocation may be based on an
23-22 estimate to which the district board of directors and the governing
23-23 body of the unit agree, and the payments made after that amount is
23-24 known shall be adjusted to reflect the amount imposed. The
23-25 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 24. 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, and individual who is disabled or is
24-7 65 or older is entitled to an exemption from taxation by a taxing
24-8 unit 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 the taxing unit <other than a county education district>,
24-16 and the governing body shall call the election on the petition of
24-17 at least 20 percent of the number of qualified voters who voted in
24-18 the 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
25-1 the exemption is authorized as provided by Subdivision (1) of
25-2 Subsection (d) of this section; or
25-3 (2) the petition for the election if the exemption is
25-4 authorized as provided by Subdivision (2) of Subsection (d) of this
25-5 section<; or>
25-6 <(3) the proposition approved at an election held
25-7 under Section 20.950, Education Code>.
25-8 (m) In this section:
25-9 (1) "Disabled" means under a disability for purposes
25-10 of payment of disability insurance benefits under Federal Old-Age,
25-11 Survivors, and Disability Insurance.
25-12 (2) "School district" means a political subdivision
25-13 organized to provide general elementary and secondary public
25-14 education. <"School district" includes a county education district
25-15 established by the consolidation of the local school districts in
25-16 its boundaries for the limited purpose of exercising a portion of
25-17 the taxing power previously authorized by the voters in those
25-18 school district.> "School district" does not include a junior
25-19 college district or a political subdivision organized to provide
25-20 special education services.
25-21 (n) In addition to any other exemptions provided by this
25-22 section, an individual is entitled to an exemption from taxation by
25-23 a taxing unit <other than a county education district> of a
25-24 percentage of the appraised value of his residence homestead if the
25-25 exemption is adopted by the governing body of the taxing unit
26-1 before May 1 in the manner provided by law for official action by
26-2 the body. If the percentage set by the taxing unit produces an
26-3 exemption in a tax year of less than $5,000 when applied to a
26-4 particular residence homestead, the individual is entitled to an
26-5 exemption of $5,000 of the appraised value. The percentage adopted
26-6 by the taxing unit may not exceed 20 percent. <In addition to any
26-7 other exemptions provided by this section, an individual is
26-8 entitled to an exemption from taxation by a county education
26-9 district of a percentage of the appraised value of his residence
26-10 homestead if the exemption is adopted by the voters of the district
26-11 at an election held in the district for the purpose under Section
26-12 20.946, Education Code. If the percentage set by the voters
26-13 produces an exemption in a tax year of less than $5,000 when
26-14 applied to a particular residence homestead, the individual is
26-15 entitled to an exemption of $5,000 of the appraised value. The
26-16 percentage adopted by the voters may not exceed 20 percent.>
26-17 SECTION 25. Sections 11.14(c) and (e), Tax Code, are amended
26-18 to read as follows:
26-19 (c) The governing body of a taxing unit<, other than a
26-20 county education district,> by resolution or order, depending upon
26-21 the method prescribed by law for official action by that governing
26-22 body, may provide for taxation of tangible personal property
26-23 exempted under Subsection (a). <The voters of a county education
26-24 district, by an election held under Section 20.951, Education Code,
26-25 may provide for taxation of tangible personal property exempted
27-1 under Subsection (a).> If a taxing unit provides for taxation of
27-2 tangible personal property as provided by this subsection, the
27-3 exemption prescribed by Subsection (a) does not apply to that unit.
27-4 (e) A political subdivision <other than a county education
27-5 district> choosing to tax property otherwise made exempt by this
27-6 section, pursuant to Article VIII, Section 1(e), of the Texas
27-7 Constitution, may not do so until the governing body of the
27-8 political subdivision has held a public hearing on the matter,
27-9 after having given notice of the hearing at the times and in the
27-10 manner required by this subsection, and has found that the action
27-11 will be in the public interest of all the residents of that
27-12 political subdivision. At the hearing, all interested persons are
27-13 entitled to speak and present evidence for or against taxing the
27-14 property. Not later than the 30th day prior to the date of a
27-15 hearing held under this subsection, notice of the hearing must be:
27-16 (1) published in a newspaper having general
27-17 circulation in the political subdivision and in a section of the
27-18 newspaper other than the advertisement section;
27-19 (2) not less than one-half of one page in size; and
27-20 (3) republished on not less than three separate days
27-21 during the period beginning with the 10th day prior to the hearing
27-22 and ending with the actual date of the hearing.
27-23 SECTION 26. All county education districts are abolished.
27-24 SECTION 27. (a) On the effective date of this Act, the
27-25 funds and other assets of a county education district are
28-1 transferred to its component school districts in the manner
28-2 provided by rule of the commissioner of education.
28-3 (b) On the effective date of this Act, the contracts and
28-4 other liabilities of a county education district are transferred to
28-5 its component school districts in the manner provided by rule of
28-6 the commissioner of education.
28-7 (c) The component school districts of a county education
28-8 district may collect and use or distribute taxes imposed by the
28-9 county education district that are delinquent in the manner
28-10 provided by rule of the commissioner of education.
28-11 (d) The commissioner of education shall adopt rules for the
28-12 maintenance of county education district records.
28-13 (e) The commissioner of education shall adopt rules required
28-14 under this section not later than July 31, 1993.
28-15 SECTION 28. For 1993, a school district's effective
28-16 maintenance rate under Section 26.08(a), Tax Code, are increased by
28-17 an amount equal to the county education district's tax rate in the
28-18 1992-1993 school year.
28-19 SECTION 29. (a) The following provisions of the Education
28-20 Code are repealed:
28-21 (1) Sections 1.05, 16.002, 16.007(c), 16.008-16.011,
28-22 16.203, 16.204, 16.206, 16.254(d) and (e), 16.256(e)-(g), 19.027(f)
28-23 and (g), 20.09, 21.112(m), 21.172(b), 21.182(f), and 21.558;
28-24 (2) Subchapter D, Chapter 14;
28-25 (3) Subchapters C, D, and J, Chapter 16; and
29-1 (4) Subchapter G, Chapter 20.
29-2 (b) The following sections of the Tax Code are
29-3 repealed: 6.061(f), 26.12(e), and 312.002(e) and (f).
29-4 SECTION 30. No district shall receive less state funds than
29-5 the district would have received under the prior provisions of the
29-6 Education Code, with the exception that the financial impact of the
29-7 provisions relating to average daily attendance under Section
29-8 16.006, Education Code, or any amount received from the available
29-9 school fund, shall not be held harmless. The commissioner of
29-10 education shall provide for appropriate calculations to implement
29-11 this section.
29-12 SECTION 31. Section 5.01(a), State Lottery Act (Article
29-13 179g, Vernon's Texas Civil Statutes), is amended to read as
29-14 follows:
29-15 Sec. 5.01. (a) Except as provided by Subsection (e) of this
29-16 section, all revenue received from the sale of tickets and all
29-17 money credited to the state lottery account from any other source
29-18 shall be deposited in the state treasury through approved state
29-19 depositories on the settlement day or days established by the
29-20 director to the credit of the education equalization excellence
29-21 fund.
29-22 SECTION 32. Except for Sections 27 and 28 of this Act, this
29-23 Act takes effect beginning with the 1993-1994 school year.
29-24 Sections 27 and 28 take immediate effect.
29-25 SECTION 33. The importance of this legislation and the
30-1 crowded condition of the calendars in both houses create an
30-2 emergency and an imperative public necessity that the
30-3 constitutional rule requiring bills to be read on three several
30-4 days in each house be suspended, and this rule is hereby suspended,
30-5 and that this Act take effect and be in force from and after its
30-6 passage, and it is so enacted.