By: Leedom S.B. No. 58
A BILL TO BE ENTITLED
AN ACT
1-1 relating to financing public schools.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Section 151.801, Tax Code, is amended by amending
1-4 Subsection (a) and adding Subsection (e) to read as follows:
1-5 (a) Except for the amount allocated under Subsections
1-6 <Subsection> (b) and (e) of this section, all proceeds from the
1-7 collection of the taxes imposed by this chapter shall be deposited
1-8 to the credit of the general revenue fund.
1-9 (e) From the proceeds of the taxes collected under
1-10 Subsection (a) of this section, the comptroller of public accounts
1-11 shall deposit to the credit of the education equalization
1-12 excellence fund the amount certified by the education equalization
1-13 excellence fund budget committee for the purposes of financing the
1-14 education excellence program under provisions of Section 16.256(b),
1-15 Education Code.
1-16 SECTION 2. Subchapter A, Chapter 16, Education Code, is
1-17 amended by adding Section 16.0011 to read as follows:
1-18 Sec. 16.0011. PROGRAM. The education excellence program is
1-19 established under this chapter for the support of public schools.
1-20 A reference in law to the foundation school program is a reference
1-21 to the education excellence program.
1-22 SECTION 3. Section 16.007(a), Education Code is amended to
1-23 read as follows:
2-1 (a) Each school district <and each county education
2-2 district> shall participate in the Public Education Information
2-3 Management System (PEIMS) and shall provide through that system
2-4 information required for the administration of this chapter and of
2-5 other appropriate provisions of this code.
2-6 SECTION 4. Sections 16.201 and 16.202, Education Code, are
2-7 amended to read as follows:
2-8 Sec. 16.201. PURPOSE. The accountable costs of education
2-9 studies are designed to support the development of the equalized
2-10 funding <elements> necessary to provide an efficient state and
2-11 local public school finance system which meets the state policy
2-12 established in Section 16.001 of this code and provides the
2-13 research basis for the equalized funding <elements under the
2-14 provisions of Section 16.256 of this code>.
2-15 Sec. 16.202. STUDIES. On a biennial basis, the Legislative
2-16 Education Board and the Legislative Budget Board, with the
2-17 assistance of the Educational Economic Policy Center and the
2-18 Central Education Agency, shall complete each of the following
2-19 studies and develop recommended amounts where appropriate for each
2-20 year of the next biennium:
2-21 (1) a study of the fiscal neutrality of the system to
2-22 determine the status of the state and local finance system with
2-23 regard to the policies established under the provisions of Section
2-24 16.001 of this code, including recommendations for adjustments
2-25 necessary to maintain fiscal neutrality; and
3-1 (2) the accountable costs per student to school
3-2 districts of providing educational programs, personnel, and other
3-3 operating costs that meet accreditation criteria and the provisions
3-4 of law and regulation <;>
3-5 <(3) program cost differentials designed by program to
3-6 provide support for the added expense of high cost courses or
3-7 programs for students participating in such courses or programs,
3-8 with the program funding level expressed as dollar amounts and as
3-9 weights applied to the adjusted basic allotment for the appropriate
3-10 year;>
3-11 <(4) transportation and career ladder allotments;>
3-12 <(5) the levels of tax effort necessary for each tier
3-13 of the Foundation School Program necessary to fulfill the
3-14 requirements of Sections 16.001 and 16.008 of this code; and>
3-15 <(6) capital outlay and debt service requirements and
3-16 formula elements for the requirements of Subchapter I of this
3-17 chapter or other provisions of this chapter>.
3-18 SECTION 5. Sections 16.251(a) and (b), Education Code, are
3-19 amended to read as follows:
3-20 (a) The <sum of the basic allotment under Subchapter C, the
3-21 special allotments under Subchapter D, and the guaranteed yield
3-22 allotments under Subchapter H, computed in accordance with the
3-23 provisions of this chapter, constitute the total> cost of the
3-24 Education Excellence <Foundation School> Program is<.>
3-25 <(b) The program shall be> financed by:
4-1 (1) <ad valorem tax revenue generated by an equalized
4-2 uniform county education) district effort;>
4-3 <(2)> ad valorem tax revenue generated by local school
4-4 district <district effort in excess of the equalized uniform county
4-5 education district effort>;
4-6 (2) <(3)> state available school funds distributed in
4-7 accordance with law; and
4-8 (3) <(4)> state funds appropriated for the purposes of
4-9 public school education and allocated to each district in an amount
4-10 sufficient to finance the cost of the program that is <each
4-11 district's Foundation School Program> not covered by other funds
4-12 specified in this subsection.
4-13 SECTION 6. Section 16.252, Education Code, as amended to
4-14 read as follows:
4-15 Sec. 16.252. GUARANTEED AMOUNT <LOCAL SHARE OF PROGRAM COST
4-16 (TIER ONE)>. (a) The education excellence program guarantees each
4-17 school district an amount of $4,530 per student in average daily
4-18 attendance. To qualify for that amount a district must levy ad
4-19 valorem taxes at a rate that results in a levy that is equal to the
4-20 levy that results from the application of the rate of $1.25 per
4-21 $100 valuation to the district's taxable value of property as
4-22 determined under Section 11.86 of this code.
4-23 (b) If a district does not levy ad valorem taxes at a rate
4-24 equal to or greater than the rate required under this section, that
4-25 district may not receive funds allocated to the education
5-1 equalization excellence fund by Section 151.801(e), Tax Code.
5-2 (c) <Each county education district's share of the
5-3 Foundation School Program shall be an amount determined by the
5-4 following formula:>
5-5 <LFA TR X DPV>
5-6 <where:>
5-7 <"LFA" is the county education district's local share;>
5-8 <"TR" is a tax rate which for each hundred dollars of
5-9 valuation is $0.72 for the the 1991 1992 school year, $0.82 for the
5-10 1992 1993 school year, $0.92 for the 1993 1994 school year, and
5-11 $1.00 for each school year thereafter; and>
5-12 <"DPV" is the taxable value of property in the county
5-13 education district for the prior tax year determined under Section
5-14 11.86 of this code.>
5-15 <(b)> The commissioner of education shall adjust the values
5-16 reported in the official report of the comptroller as required by
5-17 Section 5.09(a), Property Tax Code to reflect reductions in taxable
5-18 value of property resulting from natural or economic disaster after
5-19 January 1 in which the year which the valuations are determined.
5-20 The decision of the commissioner of education shall be final. <An
5-21 adjustment does not affect the local fund assignment of any other
5-22 county education district.>
5-23 (d) <(c)> Appeals of district values shall be held pursuant
5-24 to Subsection (e) of Section 11.86 of this code.
5-25 <(d) A county education district shall raise its total local
6-1 share of the foundation school program. The funds shall be
6-2 reallocated to the school districts in the county education
6-3 district in the manner prescribed by Subchapter J of this chapter.>
6-4 (e) The commissioner of education shall hear appeals from
6-5 <county education> districts which have experienced a rapid decline
6-6 in tax base <used in calculating the local fund assignment>,
6-7 exceeding eight percent of prior year, that is beyond the control
6-8 of the board of trustees of the <county education> district. The
6-9 commissioner of education may adjust the <county education>
6-10 district's taxable values <for local fund assignment purposes> for
6-11 such losses in value exceeding eight percent <and thereby adjust
6-12 the local fund assignment to reflect the local current year taxable
6-13 value> The decision of the commissioner of education shall be
6-14 final. <An adjustment does not affect the local fund assignment of
6-15 any other county education district.>
6-16 <(f) For the purposes of Subsection (a) of the section, a
6-17 county education district's "DPV" for 1991 1992 school year is the
6-18 sum of the taxable value of property for the prior tax year
6-19 determined under Section 11.86 of this code for the school
6-20 districts composing the county education district. This subsection
6-21 expires September 1, 1992.>
6-22 SECTION 7. Subchapter G, Chapter 16, Education Code, is
6-23 amended by adding Section 16.253 to read as follows:
6-24 Sec. 16.253. EDUCATION EQUALIZATION EXCELLENCE FUND.
6-25 (a) The education equalization excellence fund is a special fund
7-1 in the state treasury. The fund consists of state sales and use
7-2 tax revenue credited to the fund under Section 151.801(e), Tax
7-3 Code, and legislative appropriations.
7-4 (b) A reference in law to the foundation school fund is a
7-5 reference to the education equalization excellence fund.
7-6 SECTION 8. Section 16.254(a), Education Code, is amended to
7-7 read as follows:
7-8 (a) The commissioner of education shall determine annually:
7-9 (1) the amount of money guaranteed under the Education
7-10 Excellence <necessary to operate a Foundation School> Program in
7-11 each school district;
7-12 (2) the amount of local funds generated in <due> the
7-13 school district by the district's ad valorem tax levy or the levy
7-14 required under Section 16.252(a) of this code <from the local fund
7-15 assignment of the county education district>; and
7-16 (3) the amount of state available school funds
7-17 distributed to each school district.
7-18 SECTION 9. Section 16.256(a), Education Code, is amended to
7-19 read as follows:
7-20 (a) The education equalization excellence <foundation
7-21 school> fund budget committee is composed of the governor, the
7-22 lieutenant governor, and the comptroller of public accounts. A
7-23 reference in law to the foundation school fund budget committee is
7-24 a reference to the education equalization excellence fund budget
7-25 committee.
8-1 SECTION 10. Section 16.258(b), Education Code, is amended
8-2 to read as follows:
8-3 (b) If the district would have received a greater amount
8-4 from the education equalization excellence <foundation school> fund
8-5 for the applicable school year using the adjusted value, the
8-6 commissioner shall add the difference to subsequent distributions
8-7 to the district from the <foundation school> fund. <An adjustment
8-8 does not affect the local fund assignment of any other district.>
8-9 SECTION 11. Sections 11.10(r) and (s), Education Code, are
8-10 amended to read as follows:
8-11 (r) Costs <Except for certain transportation costs, costs>
8-12 of operation of the regional day school programs for the deaf shall
8-13 be borne by the state and paid from the Education Equalization
8-14 Excellence <Foundation School Program> Fund. Such costs shall be
8-15 considered and included by the Education Equalization Excellence
8-16 <Foundation School> Fund Budget Committee in estimating the needs
8-17 for purposes of the Education Excellence <Foundation School>
8-18 Program and the regional day school programs for the deaf.
8-19 However, funds allocated to countywide schools shall remain so
8-20 allocated except in those regions in which the countywide program
8-21 has been made a part of the appropriate region, as aforesaid.
8-22 While the principal cost of education deaf children shall be borne
8-23 by the state, independent school districts and all institutions of
8-24 higher learning in the state are hereby authorized and encouraged
8-25 to make available real or personal property or services in
9-1 cooperation with the regional day school programs for the deaf for
9-2 any activities related to education and betterment of education of
9-3 deaf children including but not limited to research and personnel
9-4 training and development. The school district in which a regional
9-5 day school is located shall bear the costs of transporting students
9-6 in the program who live within the district <and is entitled to
9-7 have those students counted in its allotment of transportation
9-8 funds from the state>. The regional day school program shall bear
9-9 the costs of transporting children who live outside the district to
9-10 the regional day school. It is the intent of the legislature in
9-11 enacting this subsection that the use of all of the educational
9-12 resources of this state be maximized to carry out the intent and
9-13 objectives of this Act.
9-14 (s) Operating costs for the program in each regional day
9-15 school program for the deaf shall be determined and paid on the
9-16 following basis:
9-17 (1) An estimated allocation of $2,700 for each student
9-18 enrolled in the program of the regional day school program for the
9-19 deaf in any current year.
9-20 (2) Teachers, principals, supervisors, counselors,
9-21 paraprofessional and supporting personnel shall be employed in such
9-22 numbers as the Central Education Agency finds to be necessary to
9-23 establish and operate the regional day school programs for the
9-24 deaf, and such numbers shall not be less than student-professional
9-25 ratios known to be requisite for success in education of deaf
10-1 children. Salaries of all personnel employed in the regional day
10-2 school programs for the deaf shall be determined in accordance with
10-3 policies established by the State Board of Education.
10-4 <(3) Local districts may receive allocations for
10-5 transportation of students participating in the regional day school
10-6 programs on the same basis as that provided for the Section 16.206
10-7 of this code.>
10-8 SECTION 12. Section 11.29(e), Education Code, is amended to
10-9 read as follows:
10-10 (e) The budget cost of operating the Central Education
10-11 Agency which is paid from the education equalization excellence
10-12 <foundation school program> fund shall be included in the estimated
10-13 cost of the Education Excellence <Foundation School> Program <which
10-14 is computed by the State Board of Education in March of each year
10-15 for the determination of the local fund assignment to be charged to
10-16 each school district>.
10-17 SECTION 13. Section 11.32(f), Education Code, is amended to
10-18 read as follows:
10-19 (f) Basic costs for the provision of regional education
10-20 services to school districts and coordination of educational
10-21 planning in the region and for the administrative costs necessary
10-22 to support these services shall be paid from the Education
10-23 Equalization Excellence <Foundation School> Fund. Each Regional
10-24 Education Service Center shall receive an annual allotment of
10-25 $200,000, with the remainder of the funds available under the
11-1 provisions of this subsection to be allocated to the Regional
11-2 Education Service Centers on the basis of the average daily
11-3 attendance within the area of operation for each Regional Education
11-4 Service Center as determined for the next preceding school year.
11-5 The allotment amounts here authorized to be granted by the State
11-6 Board of Education shall not exceed in any year a sum equal to .45
11-7 percent multiplied by the following specified elements of cost
11-8 <contained in the Foundation School Program> for the current school
11-9 year: salaries, maintenance and operation, vocational operating
11-10 costs, transportation-regular, transportation-special education,
11-11 transportation-vocational education, agency administration, other
11-12 special education programs, vocational contract services, bilingual
11-13 education, preschool non-English speaking, preschool deaf,
11-14 compensatory education, driver education, and minimum aid.
11-15 SECTION 14. Section 11.86(a), Education Code, is amended to
11-16 read as follows:
11-17 (a) The comptroller shall conduct an annual study using
11-18 comparable sales and generally accepted auditing and sampling
11-19 techniques to determine the total value of all taxable property in
11-20 each <county education> school district <and each of its component
11-21 school district>. The study shall determine the taxable value of
11-22 all property and of each category of property within the district
11-23 and the productivity value of all land that qualifies for appraisal
11-24 on the basis of its productive capacity and for which the owner has
11-25 applied for and received a productivity appraisal. In conducting
12-1 the study, the comptroller shall review the appraisal standards,
12-2 procedures, and methodology used by each appraisal district to
12-3 determine the taxable value of property in each school district.
12-4 The review must test the validity of the taxable values assigned to
12-5 each category of property by the appraisal district:
12-6 (1) using, if appropriate, samples selected through
12-7 generally accepted sampling techniques; and
12-8 (2) according to generally accepted standard
12-9 valuation, statistical compilation, and analysis techniques. If
12-10 the comptroller finds in the annual study that generally accepted
12-11 appraisal standards and practices were used by the appraisal
12-12 district in valuing a particular category of property, and that the
12-13 taxable values assigned to each category of property by the
12-14 appraisal are valid, the appraisal roll value of that category of
12-15 property is presumed to represent taxable value. In the absence of
12-16 such a presumption, the comptroller shall estimate the taxable
12-17 value of that category of property using generally accepted
12-18 standard valuation, statistical compilation, and analysis
12-19 techniques. For the purposes of this section, "taxable value"
12-20 means market value less:
12-21 (1) the total dollar amount of any exemptions of part
12-22 but not all of the value of taxable property required by the
12-23 constitution or a statute that a district lawfully granted in the
12-24 year that is the subject of the study;
12-25 (2) the total dollar amount of any exemptions granted
13-1 within a reinvestment zone under agreements authorized by the
13-2 Property Redevelopment and Tax Abatement Act (Chapter 312, Tax
13-3 Code);
13-4 (3) the total dollar amount of any captured appraisal
13-5 value of property that is located in a reinvestment zone and that
13-6 is eligible for tax increment financing under the Tax Increment
13-7 Financing Act (Chapter 311, Tax Code);
13-8 (4) the total dollar amount of any exemptions granted
13-9 under Section 11.251, Tax Code;
13-10 (5) the difference between the market value and the
13-11 productivity value of land that qualifies for appraisal on the
13-12 basis of its productive capacity, except that the productivity
13-13 value may not exceed the fair market value of the land;
13-14 (6) the portion of the appraised value of residence
13-15 homesteads of the elderly on which school district taxes are not
13-16 imposed in the year that is the subject of the study, calculated as
13-17 if the residence homesteads were appraised at the full value
13-18 required by law;
13-19 (7) a portion of the market value of property not
13-20 otherwise fully taxable by the district at market value because of
13-21 action required by statute or the Texas Constitution that, if the
13-22 tax rate adopted by the district is applied to it, produces an
13-23 amount equal to the difference between the tax that the district
13-24 would have imposed on the property if the property were fully
13-25 taxable at market value and the tax that the district is actually
14-1 authorized to impose on the property; and
14-2 (8) the market value of all tangible personal
14-3 property, other than manufactured homes, owned by a family or
14-4 individual and not held or used for the production of income.
14-5 SECTION 15. Section 21.063, Education Code, is amended to
14-6 read as follows:
14-7 Sec. 21.063. TUITION FEE FOR TRANSFER STUDENTS. The
14-8 receiving district may charge a tuition fee to the extent that the
14-9 district's actual expenditure per student in average daily
14-10 attendance, determinable by its board of trustees, exceeds the sum
14-11 the district benefits form the state aid sources as provided in
14-12 Section 21.062 of this code <and county education funds distributed
14-13 under Subchapter J, Chapter 16, of this code>. However, unless a
14-14 tuition fee is prescribed and set out in transfer agreement prior
14-15 to its execution by the parties, no increase in tuition charge
14-16 shall be made for the year of that transfer that exceeds the
14-17 tuition charge, if any, of the preceding school year.
14-18 SECTION 16. Section 21.173(a), Education Code, is amended to
14-19 read as follows:
14-20 (a) Except as otherwise provided by this section, a school
14-21 district that receives funding under the education excellence
14-22 program <Subsection (h) of Section 16.156 of this code> may not
14-23 require or allow a child to stand on a school bus that is in
14-24 motion.
14-25 SECTION 17. Section 21.177(d), Education Code, is amended to
15-1 read as follows:
15-2 (d) In approving a transportation system for a school
15-3 district or county, consideration shall be given to providing
15-4 transportation for only those pupils who reside in hazardous areas
15-5 or live two or more miles from the school they attend except
15-6 handicapped pupils. No consideration shall be given to providing
15-7 transportation for pupils transferred from one district to another
15-8 when their grades are taught in their home district unless
15-9 transferred as provided by law and transportation has been approved
15-10 as provided by law. A district may provide transportation to
15-11 pupils to after-school child care facilities or to pupils who live
15-12 within two miles of the school they attend, and may charge a
15-13 reasonable fee for such transportation<, provided that such
15-14 transportation shall not be eligible for funding pursuant to
15-15 Section 16.156 of this code>.
15-16 SECTION 18. Section 21.181, Education Code, is amended to
15-17 read as follows:
15-18 Sec. 21.181. CONTRACT WITH TRANSPORTATION COMPANY OR SYSTEM.
15-19 (a) As an alternative to maintaining and operating a complete
15-20 public school transportation system under this subchapter, a county
15-21 or local district school board may contract with a public or
15-22 commercial transportation company or system for all or any part of
15-23 its public school transportation if the board is able to obtain an
15-24 economically advantageous contract, provided that the commercial
15-25 transportation company or system:
16-1 (1) requires its school bus drivers to be certified by
16-2 the Central Education Agency;
16-3 (2) uses only those school buses in transporting
16-4 public school students that satisfy safety requirements imposed by
16-5 law on school buses operated by public school transportation
16-6 systems; and
16-7 (3) agrees to meet the alternative fuels requirements
16-8 of Section 21.174 for those buses dedicated to the contract;
16-9 provided, however, the company or system may claim all exceptions
16-10 available to county and local district school boards under Section
16-11 21.174.
16-12 (b) A contract is economically advantageous if the cost of
16-13 the service contracted for is equal to or less than the total cost
16-14 to the school district for providing its own complete bus service.
16-15 <The total cost to the school district is the state transportation
16-16 cost allotment plus the supplementary funds necessarily provided by
16-17 the local school district to provide complete transportation
16-18 services. In determining if a contract is economically
16-19 advantageous, taxes paid by the commercial transportation company
16-20 or system on gasoline, diesel fuel, or liquefied petroleum gas may
16-21 not be considered.>
16-22 (c) <This section in no way prohibits the local school board
16-23 from supplementing the state transportation cost allotment with
16-24 local funds necessary to provide complete transportation services.>
16-25 <(d)> The State Board of Education shall adopt rules for the
17-1 administration of this section.
17-2 (d) <(c)> Contracts for alternative public school
17-3 transportation may include provisions for transporting students to
17-4 and from approved school activities.
17-5 <(f) Upon approval of the contract by the State Board of
17-6 Education, the portion of the annual transportation allotment which
17-7 is to be used to finance the contract for alternative
17-8 transportation services shall be included in the annual
17-9 transportation cost allotment for the respective county or
17-10 district.>
17-11 SECTION 19. Section 21.552(c), Education Code, is amended to
17-12 read as follows:
17-13 (c) The Central Education agency shall develop and
17-14 distribute study guides to assist parents in providing remedial
17-15 assistance during the period that school is recessed for summer to
17-16 students who do not perform satisfactorily on one or more parts of
17-17 the assessment instrument administered at the third, fifth, or
17-18 seventh grade level. <The commissioner of education shall retain a
17-19 portion of the total amount allotted under Section 16.152(a) of
17-20 this code that the commissioner considers appropriate to finance
17-21 the development and distribution of the study guides and shall
17-22 reduce each district's allotment proportionately.>
17-23 SECTION 20. Section 105.95(e), Education Code, is amended to
17-24 read as follows:
17-25 (e) The academy is not subject to the provisions of this
18-1 code, or to the rules of the Central Education Agency, regulating
18-2 public schools, except that:
18-3 (1) professional employees of the academy are entitled
18-4 to the limited liability of an employee under Section 21.912 or
18-5 21.914 of this code;
18-6 (2) a student's attendance at the academy satisfies
18-7 compulsory school attendance requirements; and
18-8 (3) for each student enrolled, the academy is entitled
18-9 to allocate from the education excellence <foundation school>
18-10 program under Chapter 16 of this code as if the academy were a
18-11 school district<, except that the academy has a local share applied
18-12 that is equivalent to the local share assignment of the Denton
18-13 Independent School District>.
18-14 SECTION 21. Section 1.04(12), Tax Code, is amended to read
18-15 as follows:
18-16 (12) "Taxing unit" means a county, an incorporated
18-17 city or town (including a home-rule city), a school district, <a
18-18 county education district,> a special district or authority
18-19 (including a junior college district, a hospital district, a
18-20 district created by or pursuant to the Water Code, a mosquito
18-21 control district, a fire prevention district, or a noxious weed
18-22 control district), or any other political unit of this state,
18-23 whether created by or pursuant to the constitution or a local
18-24 special, or general law, that is authorized to impose and is
18-25 imposing ad valorem taxes on property even if the governing body of
19-1 another political unit determines the tax rate for the unit or
19-2 otherwise governs its affairs.
19-3 SECTION 22. Section 6.02(b), Tax Code, is amended to read as
19-4 follows:
19-5 (b) A taxing unit <other than a county education district>
19-6 that has boundaries extending into two or more counties may choose
19-7 to participate in only one of the appraisal districts. In that
19-8 event, the boundaries of the district chosen extend outside the
19-9 county to the extent of the unit's boundaries. To be effective,
19-10 the choice must be approved by resolution of the board of directors
19-11 of the district chosen. <A county education district that has
19-12 boundaries extending into two or more counties must participate in
19-13 each appraisal district in which one of its component school
19-14 district's participates for purposes of appraisal of the component
19-15 school district's territory.>
19-16 SECTION 23. Sections 6.03(c)-(e), Tax Code, are amended to
19-17 read as follows:
19-18 (c) Members of the board of directors are appointed by vote
19-19 of the governing bodies of the incorporated cities and towns, the
19-20 school districts <other than the county education district>, and,
19-21 if entitled to vote, the conservation and reclamation districts
19-22 that participate in the district and of the county. A governing
19-23 body may cast all its votes for one candidate or distribute them
19-24 among candidates for any number of directorships. Conservation and
19-25 reclamation districts are not entitled to vote unless at least one
20-1 conservation and reclamation district in the district delivers to
20-2 the chief appraiser a written request to nominate and vote on the
20-3 board of directors by June 1 of each odd-numbered year. On receipt
20-4 of a request, the chief appraiser shall certify a list by June 15
20-5 of all eligible conservation and reclamation districts that are
20-6 imposing taxes and that participate in the district.
20-7 (d) The voting entitlement of a taxing unit that is entitled
20-8 to vote for directors is determined by dividing the total dollar
20-9 amount of property taxes imposed in the district by the taxing unit
20-10 for the preceding tax year by the sum of the total dollar amount of
20-11 property taxes imposed in the district for that year by each taxing
20-12 unit that is entitled to vote, by multiplying the quotient by 1,000
20-13 and by rounding the product to the nearest whole number. That
20-14 number is multiplied by the number of directorships to be filled.
20-15 <For a school district, the total dollar amount of property taxes
20-16 imposed in the district by the unit is considered to be the sum of
20-17 the taxes imposed by the district and the revenue received by the
20-18 district from the county education district.> A taxing unit
20-19 participating in two or more districts is entitled to vote in each
20-20 district in which it participate, but only the taxes imposed in a
20-21 district are used to calculate voting entitlement in that district.
20-22 (e) The chief appraiser shall calculate the number of votes
20-23 to which each taxing unit other than a conservation and reclamation
20-24 district is entitled and shall deliver written notice to each of
20-25 those units of its voting entitlement before October 1 of each
21-1 odd-numbered year. The chief appraiser shall deliver the notice:
21-2 (1) to the county judge and each commissioner of the
21-3 county served by the appraisal district;
21-4 (2) to the presiding officer of the governing body of
21-5 each city or town participating in the appraisal district, to the
21-6 city manager of each city or town having a city manager, and to the
21-7 city secretary or clerk, if there is one, of each city or town that
21-8 does not have a city manager; and
21-9 (3) to the presiding officer of the governing body of
21-10 each school district<, other than the county education district,>
21-11 participating in the district and to the superintendent of each
21-12 <those> school district <districts>.
21-13 SECTION 24. Sections 6.06(d) and (h), Tax Code, are amended
21-14 to read as follows:
21-15 (d) Each taxing unit participating in the district<, other
21-16 than a county education district,> is allocated a portion of the
21-17 amount of the budget equal to the proportion that the total dollar
21-18 amount of property taxes imposed in the district by the unit for
21-19 the tax year in which the budget proposal is prepared bears to the
21-20 sum of the total dollar amount of property taxes imposed in the
21-21 district by each participating unit for that year. <for a school
21-22 district, other than a county education district, the total dollar
21-23 amount of property taxes imposed in the district by the unit is
21-24 considered to be the sum of the taxes imposed by the district and
21-25 the revenue received by the district from the county education
22-1 district.> If a taxing unit participates in two or more districts,
22-2 only the taxes imposed in a district are used to calculate the
22-3 unit's cost allocations in that district. If the number of real
22-4 property parcels in a taxing unit is less than 5 percent of the
22-5 total number of real property parcels in the district and the
22-6 taxing unit imposes in excess of 25 percent of the total amount of
22-7 the property taxes imposed in the district by all of the
22-8 participating taxing units for a year, the unit's allocation may
22-9 not exceed a percentage of the appraisal district's budget equal to
22-10 three time the unit's percentage of the total number of real
22-11 property parcels appraised by the district.
22-12 (h) If a newly formed taxing unit or a taxing unit that did
22-13 not impose taxes in the preceding year<, other than a county
22-14 education district,> imposes taxes in any tax year, that unit is
22-15 allocated a portion of the amount budgeted to operate the district
22-16 as if it had imposed taxes in the preceding year, except that the
22-17 amount of taxes the unit imposes in the current year is used to
22-18 calculate its allocation. Before the amount of taxes to be imposed
22-19 for the current year is known, the allocation may be based on an
22-20 estimate to which the district board of directors and the governing
22-21 body of the unit agree, and the payments made after that amount is
22-22 known shall be adjusted to reflect the amount imposed. The
22-23 payments of a newly formed taxing unit that has no source of funds
22-24 are postponed until the unit has received adequate tax or other
22-25 revenues.
23-1 SECTION 25. Sections 11.13(d), (e), (m), and (n), Tax Code,
23-2 are amended to read as follows:
23-3 (d) In addition to the exemptions provided by Subsections
23-4 (b) and (c) of this section, and individual who is disabled or is
23-5 65 or older is entitled to an exemption from taxation by a taxing
23-6 unit of a portion (the amount of which is fixed as provided by
23-7 Subsection (e) of this section) of the appraised value of his
23-8 residence homestead if the exemption is adopted either:
23-9 (1) by the governing body of the taxing unit <other
23-10 than a county education district>; or
23-11 (2) by a favorable vote of a majority of the qualified
23-12 voters of the taxing unit at an election called by the governing
23-13 body of the taxing unit <other than a county education district>,
23-14 and the governing body shall call the election on the petition of
23-15 at least 20 percent of the number of qualified voters who voted in
23-16 the preceding election of the taxing unit<, or>
23-17 <(3) by a favorable vote of a majority of the
23-18 qualified voters of a county education district at an election held
23-19 under Section 20.950, Education Code>.
23-20 (e) The amount of an exemption adopted as provided by
23-21 Subsection (d) of this section is $3,000 of the appraised value of
23-22 the residence homestead unless a larger amount is specified by:
23-23 (1) the governing body authorizing the exemption if
23-24 the exemption is authorized as provided by Subdivision (1) of
23-25 Subsection (d) of this section; or
24-1 (2) the petition for the election if the exemption is
24-2 authorized as provided by Subdivision (2) of Subsection (d) of this
24-3 section<; or>
24-4 <(3) the proposition approved at an election held
24-5 under Section 20.950, Education Code>.
24-6 (m) In this section:
24-7 (1) "Disabled" means under a disability for purposes
24-8 of payment of disability insurance benefits under Federal Old-Age,
24-9 Survivors, and Disability Insurance.
24-10 (2) "School district" means a political subdivision
24-11 organized to provide general elementary and secondary public
24-12 education. <"School district" includes a county education district
24-13 established by the consolidation of the local school districts in
24-14 its boundaries for the limited purpose of exercising a portion of
24-15 the taxing power previously authorized by the voters in those
24-16 school district.> "School district" does not include a junior
24-17 college district or a political subdivision organized to provide
24-18 special education services.
24-19 (n) In addition to any other exemptions provided by this
24-20 section, an individual is entitled to an exemption form taxation by
24-21 a taxing unit <other than a county education district> of a
24-22 percentage of the appraised value of his residence homestead if the
24-23 exemption is adopted by the governing body of the taxing unit
24-24 before May 1 in the manner provided by law for official action by
24-25 the body. If the percentage set by the taxing unit produces an
25-1 exemption in a tax year of less than $5,000 when applied to a
25-2 particular residence homestead, the individual is entitled to an
25-3 exemption of $5,000 of the appraised value. The percentage adopted
25-4 by the taxing unit may not exceed 20 percent. <In addition to any
25-5 other exemptions provided by this section, an individual is
25-6 entitled to an exemption form taxation by a county education
25-7 district of a percentage of the appraised value of his residence
25-8 homestead if the exemption is adopted by the voters of the district
25-9 at an election held in the district for the purpose under Section
25-10 20.946, Education Code. If the percentage set by the voters
25-11 produces an exemption in a tax year of less than $5,000 when
25-12 applied to a particular residence homestead, the individual is
25-13 entitled to an exemption of $5,000 of the appraised value. The
25-14 percentage adopted by the voters may not exceed 20 percent.>
25-15 SECTION 26. Sections 11.14(c) and (e), Tax Code, are amended
25-16 to read as follows:
25-17 (c) The governing body of a taxing unit<, other than a
25-18 county education district,> by resolution or order depending upon
25-19 the method prescribed by law for official action by that governing
25-20 body, may provide for taxation of tangible personal property
25-21 exempted under Subsection (a). <The voters of a county education
25-22 district, by an election held under Section 20.951, Education Code,
25-23 may provide for taxation of tangible personal property exempted
25-24 under Subsection (a).> If a taxing unit provides for taxation of
25-25 tangible personal property as provided by this subsection, the
26-1 exemption prescribed by Subsection (a) does not apply to that unit.
26-2 (e) A political subdivision <other than a county education
26-3 district> choosing to tax property otherwise made exempt by this
26-4 section, pursuant to Article VIII, Section 1(e), of the Texas
26-5 Constitution, may not do so until the governing body of the
26-6 political subdivision has held a public hearing on the matter,
26-7 after having given notice of the hearing at the times and in the
26-8 manner required by this subsection, and has found that the action
26-9 will be in the public interest of all the residents of that
26-10 political subdivision. At the hearing, all interested persons are
26-11 entitled to speak and present evidence for or against taxing the
26-12 property. Not later than the 30th day prior to the date of a
26-13 hearing held under this subsection, notice of the hearing must be:
26-14 (1) published in a newspaper having general
26-15 circulation in the political subdivision and in a section of the
26-16 newspaper other than the advertisement section;
26-17 (2) not less than one-half of one page in size; and
26-18 (3) republished on not less than three separate days
26-19 during the period beginning with the 10th day prior to the hearing
26-20 and ending with the actual date of the hearing.
26-21 SECTION 27. All county education districts are abolished.
26-22 SECTION 28. (a) On the effective date of this Act, the
26-23 funds and other assets of a county education district are
26-24 transferred to its component school districts in the manner
26-25 provided by rule of the commissioner of education.
27-1 (b) On the effective date of this Act, the contracts and
27-2 other liabilities of a county education district are transferred to
27-3 its component school districts in the manner provided by rule of
27-4 the commissioner of education.
27-5 (c) The component school districts of a county education
27-6 district may collect and use or distribute taxes imposed by the
27-7 county education district that are delinquent in the manner
27-8 provided by rule of the commissioner of education.
27-9 (d) The commissioner of education shall adopt rules for the
27-10 maintenance of county education district records.
27-11 (e) The commissioner of education shall adopt rules required
27-12 under this section not later than July 31, 1993.
27-13 SECTION 29. For 1993, a school district's effective
27-14 maintenance rate under Section 26.08(a), Tax Code, are increased by
27-15 an amount equal to the county education district's tax rate in the
27-16 1992-1993 school year.
27-17 SECTION 30. (a) The following provisions of the Education
27-18 Code are repealed:
27-19 (1) Sections 1.05, 16.002, 16.007(c), 16.008-16.011,
27-20 16.203, 16.204, 16.206, 16.256(d)-(g), 19.027(f) and (g), 20.09,
27-21 21.112(m), 21.172(b), 21.182(f), and 21.558;
27-22 (2) Subchapter D, Chapter 14;
27-23 (3) Subchapters C, D, and J, Chapter 16; and
27-24 (4) Subchapter G, Chapter 20.
27-25 (b) The following sections of the Tax Code are repealed:
28-1 6.061(f), 26.12(e), and 312.002(e) and (f).
28-2 SECTION 31. No district shall receive less funds for the
28-3 1993-1994 school year than the district would have received under
28-4 the prior provisions of the Education Code, with the exception that
28-5 the financial impact of the provisions relating to average daily
28-6 attendance under Section 16.006, Education Code, shall not be held
28-7 harmless. The commissioner of education shall provide for
28-8 appropriate calculations to implement this section.
28-9 SECTION 32. This Act takes effect beginning with the
28-10 1993-1994 school year.
28-11 SECTION 33. The importance of this legislation and the
28-12 crowded condition of the calendars in both houses create an
28-13 emergency and an imperative public necessity that the
28-14 constitutional rule requiring bills to be read on three several
28-15 days in each house be suspended, and this rule is hereby suspended.