By: Bivins S.B. No. 1489
73R10694 ESH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to public school education.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 ARTICLE 1
1-5 SECTION 1.01. (a) Chapter 18, Education Code, is amended by
1-6 designating Sections 18.01-18.15 as Subchapter A of that chapter as
1-7 follows:
1-8 SUBCHAPTER A. CREATION OF COUNTY-UNIT SYSTEMS
1-9 (b) Chapter 18, Education Code, is amended by designating
1-10 Sections 18.21-18.31 as Subchapter B of that chapter as follows:
1-11 SUBCHAPTER B. COUNTY EQUALIZATION FUNDS
1-12 SECTION 1.02. Chapter 18, Education Code, is amended by
1-13 adding Subchapters C and D to read as follows:
1-14 SUBCHAPTER C. COUNTY-UNIT SYSTEMS COMPOSED OF SCHOOL DISTRICTS
1-15 Sec. 18.41. CREATION; COMPOSITION. (a) Except as provided
1-16 by Subsections (b) and (c) of this section, each school district in
1-17 this state is included in a county-unit system composed of all
1-18 school districts that are assigned to a single county. Each school
1-19 district is assigned to the county in which a majority of its
1-20 students resides.
1-21 (b) This section does not apply to a school district that is
1-22 the single district assigned to a county.
1-23 (c) This subchapter does not apply to a county that:
1-24 (1) does not include a school district that has a
2-1 taxable value of property, as determined under Section 11.86 of
2-2 this code, per weighted student in average daily attendance, as
2-3 determined under Section 18.62 of this code, in excess of $280,000;
2-4 or
2-5 (2) is included in a county-unit system established
2-6 under Subchapter A of this chapter, if that system:
2-7 (A) contains all of the territory of its
2-8 component school districts; and
2-9 (B) has the authority to levy a tax at a rate
2-10 not exceeding an effective tax rate of $0.90 per $100 of property
2-11 valuation.
2-12 (d) In this section, "effective tax rate" means a rate
2-13 expressed in dollars per $100 of property valuation and determined
2-14 by dividing the tax funds collected by a county-unit system in the
2-15 prior school year by the system's taxable value of property for the
2-16 prior school year determined under Section 11.86 of this code. For
2-17 purposes of the determination of an initial effective tax rate for
2-18 a county-unit system, the tax funds collected by the component
2-19 school districts in the system are considered to have been
2-20 collected by the system.
2-21 Sec. 18.42. AUTHORIZATION. (a) Each county-unit system is
2-22 a school district established for the limited purpose of exercising
2-23 the taxing power authorized by Article VII, Section 3, of the Texas
2-24 Constitution and of distributing revenue of the system to its
2-25 component school districts.
2-26 (b) The boards of trustees of the component school districts
2-27 in a county-unit system retain the authority granted them elsewhere
3-1 in this code.
3-2 Sec. 18.43. GOVERNANCE. (a) A county-unit system
3-3 established under this subchapter is governed by a board of
3-4 trustees appointed by the respective boards of trustees of its
3-5 component school districts.
3-6 (b) Except as provided by this subsection, the board of
3-7 trustees of each component school district shall appoint one of its
3-8 members to serve on the board of trustees of the county-unit
3-9 system. If a county-unit system is composed of fewer than three
3-10 component districts, the board of trustees of each component
3-11 district shall appoint two of its members to serve on the board of
3-12 trustees of the system. An appointed member of the board of
3-13 trustees serves at the pleasure of the appointing school district's
3-14 board of trustees and may be replaced at any time by that board.
3-15 Service on the county-unit system board is an additional duty of
3-16 office of the member serving.
3-17 (c) A vote cast by a member of the board of trustees bears
3-18 the same proportional value to the total number of votes cast by
3-19 all trustees that the total number of students in average daily
3-20 attendance in that member's component school district for the most
3-21 recently completed school year bears to the total number of
3-22 students in average daily attendance for that year in the
3-23 county-unit system of which it is a component. If a school
3-24 district is represented by two trustees, the proportional value of
3-25 the vote attributed to the district is shared equally by the
3-26 trustees. The commissioner of education shall determine and
3-27 certify to the board of trustees the total number of students in
4-1 average daily attendance in each component school district and the
4-2 proportional value of each member's vote.
4-3 (d) A county-unit system has the authority granted to other
4-4 independent school districts under:
4-5 (1) Section 23.26(a) of this code;
4-6 (2) Section 23.26(c) of this code as it applies to
4-7 personal property;
4-8 (3) Subchapter C, Chapter 23, of this code; and
4-9 (4) Subchapter E, Chapter 23, of this code.
4-10 (e) A county-unit system may enter into contracts and may
4-11 employ personnel only as necessary for the performance of the
4-12 duties of the system.
4-13 (f) A county-unit system's administrative costs shall be
4-14 paid by the component school districts in the manner prescribed by
4-15 the commissioner of education.
4-16 (g) The commissioner of education may adopt rules relating
4-17 to the operation and administration of county-unit systems.
4-18 Sec. 18.44. ORGANIZATION, MEETINGS, COMPENSATION. (a) A
4-19 majority of the members of the board of trustees of a county-unit
4-20 system constitutes a quorum.
4-21 (b) The board shall meet at the call of the chairman or at
4-22 the request of a quorum of the board members. Meetings shall be
4-23 held in the central administrative offices of the component school
4-24 district with the greatest average daily attendance unless the
4-25 board designates another location.
4-26 (c) A member of the board receives no compensation but is
4-27 entitled to reimbursement by the appointing school district for
5-1 necessary expenses incurred in the exercise of official duties.
5-2 Sec. 18.45. LIABILITY INSURANCE COVERAGE. A member of the
5-3 board of trustees of a component school district who is designated
5-4 to serve as a member of the board of trustees of a county-unit
5-5 system and who is covered by a liability insurance policy obtained
5-6 by the school district covering the member's acts and omissions in
5-7 the member's capacity as a school board member is entitled to
5-8 analogous liability insurance coverage of the member's acts and
5-9 omissions in the member's capacity as a member of the board of
5-10 trustees of the county-unit system. An insurance company may not
5-11 sell liability insurance coverage to a school district covering the
5-12 acts and omissions of school board members in their capacity as
5-13 board members unless the policy also provides coverage for acts and
5-14 omissions of a school board member in the member's capacity as a
5-15 member of the board of trustees of a county-unit system.
5-16 Sec. 18.46. TAX AUTHORIZATION ELECTION. (a) The board of
5-17 trustees of each county-unit system shall order an election to be
5-18 held on August 14, 1993, to determine whether or not the system
5-19 shall be authorized to levy a tax at a rate not exceeding an
5-20 effective tax rate of $0.90 per $100 valuation of property in the
5-21 district.
5-22 (b) At the tax authorization election the ballot shall be
5-23 prepared to permit voting for or against the proposition: "The
5-24 county-unit system tax not exceeding _____ (the nominal rate set by
5-25 the board) on the $100 valuation of property."
5-26 (c) Each component school district shall conduct the
5-27 election and deliver the canvass of the vote to the county-unit
6-1 system board of trustees. The board of trustees shall conduct a
6-2 final canvass not later than the second day after the receipt of
6-3 all school district election returns and prepare a tabulation of
6-4 the total number of votes received in each school district and the
6-5 sum of the school district totals. The proposition is approved
6-6 only if the majority of the votes reflected in the sum of school
6-7 district totals favors the proposition. The board of trustees
6-8 shall declare the results and retain the election returns and
6-9 tabulations for the period for preserving precinct election
6-10 records.
6-11 (d) After a tax authorization has been approved by the
6-12 voters, the board of trustees may not call another election to
6-13 raise or lower the maximum tax rate authorized before the second
6-14 anniversary of the date of the prior election.
6-15 (e) In this section, "effective tax rate" has the meaning
6-16 assigned by Section 18.41 of this code.
6-17 Sec. 18.47. LEVY OF TAX; ASSESSMENT, COLLECTION, AND
6-18 DISTRIBUTION OF TAXES. (a) The board of trustees of a county-unit
6-19 system shall levy a tax for the benefit of its component school
6-20 districts not later than September 1 of each year or as soon
6-21 thereafter as practicable.
6-22 (b) The board of trustees shall provide for the assessment
6-23 and collection of taxes levied by the system through a contract
6-24 with an appraisal district or taxing unit. Each component school
6-25 district shall bear the cost of assessing and collecting taxes
6-26 levied by the system and that cost shall be deducted from the
6-27 revenue collected before distribution of the revenue to the
7-1 component districts.
7-2 (c) The board of trustees shall distribute tax revenue to
7-3 the component districts on the basis of the number of weighted
7-4 students in average daily attendance in each district. The number
7-5 of students in adjusted weighted average daily attendance is
7-6 determined in the manner prescribed by Section 18.63 of this code.
7-7 Sec. 18.48. MULTICOUNTY-UNIT SYSTEMS. (a) Two or more
7-8 adjacent county-unit systems may jointly establish a
7-9 multicounty-unit system.
7-10 (b) If a petition praying for the formation of a
7-11 multicounty-unit system or for the authority to levy and collect an
7-12 equalization tax is presented to the board of trustees of one of
7-13 the county-unit systems, the boards of trustees of all of the
7-14 county-unit systems shall order an election to be held jointly in
7-15 the designated county-unit systems. The petition must be signed by
7-16 not less than one percent of the total number of registered voters
7-17 in the designated county-unit systems. If a majority of the votes
7-18 cast in each county-unit system favors the formation of the
7-19 multicounty-unit system or the authority to levy and collect an
7-20 equalization tax, the boards of trustees of the county-unit systems
7-21 jointly shall issue an order to that effect.
7-22 (c) The provisions of this subchapter govern the affairs of
7-23 a multicounty-unit system.
7-24 Sec. 18.49. CREATION OF COUNTYWIDE SCHOOL DISTRICTS. (a)
7-25 If the voters in a county-unit system created under Section 18.41
7-26 of this code fail to authorize on or before August 15, 1993, a
7-27 county-unit tax that will provide state and county funds under
8-1 Section 18.66 of this code of not less than $2,800 per student in
8-2 average daily attendance, the commissioner of education shall, as
8-3 soon as practicable after that date, annex each school district
8-4 assigned to that county-unit system to the district in that system
8-5 with the most students in average daily attendance.
8-6 (b) Under this section school districts shall be annexed in
8-7 the same manner that academically unaccredited school districts are
8-8 annexed under Section 19.027 of this code and are subject to the
8-9 same provisions.
8-10 (c) The commissioner's annexation order must include
8-11 provisions ensuring that for the first school year following the
8-12 annexation of a district:
8-13 (1) the board of trustees of the district to be
8-14 annexed shall continue to govern the district with respect to all
8-15 matters other than taxation unless that board relinquishes its
8-16 authority by majority vote;
8-17 (2) no school campus is closed without the consent of
8-18 the board of trustees of the district to be annexed or of the
8-19 commissioner of education if the board has relinquished its
8-20 authority;
8-21 (3) all teacher evaluations are considered binding on
8-22 the governing board of the enlarged district resulting from the
8-23 annexation; and
8-24 (4) funds for the instructional programs and services
8-25 at each campus of the district subject to annexation are not less
8-26 per student in weighted average daily attendance than the funds
8-27 spent for those purposes during the preceding school year.
9-1 (Sections 18.50-18.60 reserved for expansion
9-2 SUBCHAPTER D. FOUNDATION SCHOOL PROGRAM
9-3 Sec. 18.61. Average Daily Attendance. (a) In this chapter,
9-4 average daily attendance is determined by the daily attendance of
9-5 students as averaged each month of the minimum school year.
9-6 (b) A school district that experiences a decline of two
9-7 percent or more in average daily attendance as a result of the
9-8 closing or reduction in personnel of a military base shall be
9-9 funded on the basis of the actual average daily attendance of the
9-10 immediately preceding school year.
9-11 (c) The commissioner of education shall adjust the average
9-12 daily attendance of school districts that have a significant
9-13 percentage of students whose parent or guardian is a migrant
9-14 worker. For the purposes of this subsection, "migrant worker" has
9-15 the meaning assigned by Section 21.5515 of this code.
9-16 (d) The commissioner may adjust the average daily attendance
9-17 of a school district in which a disaster, flood, extreme weather
9-18 condition, fuel curtailment, or other calamity has a significant
9-19 effect on the district's attendance.
9-20 Sec. 18.62. WEIGHTED AVERAGE DAILY ATTENDANCE. (a) A
9-21 district's weighted average daily attendance is the sum of the
9-22 following factors for the attendance in the programs indicated:
9-23 Program Factor
9-24 (1) Regular education
9-25 Each student in ADA in a district that is not
9-26 sparse.............................................. 1.00
9-27 Each Class A sparse district......................... 130.00
10-1 Each Class B sparse district.......................... 75.00
10-2 Each Class C sparse district.......................... 60.00
10-3 (2) Vocational education
10-4 Each FTE in vocational education in grades 9-12....... 1.37
10-5 Each FTE in handicapped vocational in grades 7-12..... 1.37
10-6 (3) Special education
10-7 Each FTE homebound.................................... 5.00
10-8 Each FTE hospital class............................... 5.00
10-9 Each FTE speech therapy............................... 7.11
10-10 Each FTE resource room................................ 2.70
10-11 Each FTE self-contained, mild and moderate, regular
10-12 campus.............................................. 2.30
10-13 Each FTE self-contained, severe, regular campus....... 3.50
10-14 Each FTE self-contained, severe, separate campus...... 2.70
10-15 Each FTE multidistrict class.......................... 3.50
10-16 Each FTE nonpublic day school......................... 3.50
10-17 Each FTE vocational adjustment class.................. 2.30
10-18 Each FTE community class.............................. 3.50
10-19 Each FTE mainstream................................... 1.25
10-20 Each FTE nonresident student who resides in a facility
10-21 for the handicapped................................. 5.00
10-22 (4) Compensatory education
10-23 Each nonresident student in ADA who resides in a
10-24 residential placement facility...................... .20
10-25 Each educationally disadvantaged student in ADA....... .20
10-26 Each FTE pregnant student in remedial and support
10-27 programs under Section 21.557 of this code.......... 2.41
11-1 (5) Bilingual education
11-2 Each student in ADA in a bilingual or special
11-3 language program.................................... .10
11-4 (6) Gifted and talented
11-5 Each student in ADA in a gifted and talented program,
11-6 not exceeding five percent of the district's
11-7 total ADA........................................... .12
11-8 (b) In this section:
11-9 (1) "ADA" refers to average daily attendance
11-10 determined in the manner specified in Section 18.61 of this code
11-11 but excludes time spent each day in vocational or special education
11-12 programs for which weighting factors are designated.
11-13 (2) "Class A sparse district" means a school district
11-14 that offers a kindergarten through grade 12 program to less than
11-15 130 ADA and has an actual ADA of at least 90 or is located 30 or
11-16 more miles by bus route from the nearest district with a high
11-17 school.
11-18 (3) "Class B sparse district" means a school district
11-19 that offers a kindergarten through grade 8 program to less than 75
11-20 ADA and either (1) has an actual ADA of at least 50 or (2) is
11-21 located 30 or more miles by bus route from the nearest district
11-22 with a high school.
11-23 (4) "Class C sparse district" means a school district
11-24 that offers a kindergarten through grade 6 program to less than 60
11-25 ADA and either (1) has an actual ADA of at least 40 or (2) is 30
11-26 or more miles by bus route from the nearest district with a high
11-27 school.
12-1 (5) "FTE" means full-time equivalent and refers to 30
12-2 hours of contact a week between a student and specified program
12-3 personnel.
12-4 (6) "Educationally disadvantaged student" means a
12-5 student who is eligible for the national school lunch program of
12-6 free or reduced-price lunches, and the number of educationally
12-7 disadvantaged students in a district is determined by averaging the
12-8 best six months' enrollment in the program for the preceding school
12-9 year.
12-10 (7) "Nonresident student" means a student whose parent
12-11 or guardian does not reside in the district in which the student
12-12 attends school.
12-13 Sec. 18.63. ADJUSTED WEIGHTED AVERAGE DAILY ATTENDANCE. (a)
12-14 Except as provided by Subsection (b) of this section, a district's
12-15 adjusted weighted average daily attendance is the sum of the
12-16 district's number of students in weighted average daily attendance
12-17 plus the product of the district's cost of education index factor
12-18 specified in Section 18.64 of this code multiplied by the
12-19 district's weighted average daily attendance.
12-20 (b) The adjusted weighted average daily attendance of a
12-21 district with fewer than 1,600 students in average daily attendance
12-22 is increased by multiplying the sum computed under Subsection (a)
12-23 of this section by a factor of:
12-24 (1) (1 + ((1,600 - ADA) x .0004)), if the district
12-25 contains at least 300 square miles; or
12-26 (2) (1 + ((1,600 - ADA) x .00025)), if the district
12-27 contains less than 300 square miles.
13-1 (c) A county-unit system's adjusted weighted average daily
13-2 attendance is the sum of the adjusted weighted average daily
13-3 attendance of students in the system's component school districts.
13-4 (d) In this section, "ADA" has the meaning assigned under
13-5 Section 18.61 of this code.
13-6 Sec. 18.64. COST OF EDUCATION INDEX. The foundation school
13-7 fund budget committee by rule shall adopt a cost of education index
13-8 representing adjustments for costs beyond the control of school
13-9 districts. Before the committee adopts a cost of education index,
13-10 the committee or the committee's designees shall hold a public
13-11 hearing to consider funding elements. If the committee does not
13-12 adopt a cost of education index, funding allocations under this
13-13 subchapter shall be made on the basis of weighted average daily
13-14 attendance rather than adjusted weighted average daily attendance.
13-15 Sec. 18.65. TECHNOLOGY FUNDS. Each district is entitled to
13-16 an allotment for technology in the amount specified in
13-17 Section 14.063 of this code for the purposes of financing programs
13-18 under Subchapter C, Chapter 14, of this code.
13-19 Sec. 18.66. MATCHING FUNDS FOR COUNTY-UNIT SYSTEMS. (a)
13-20 Each county-unit system created under Section 18.41 of this code is
13-21 entitled to state matching funds in an amount determined by the
13-22 following formula:
13-23 where:
13-24 "SF" is the amount of state funds due the county-unit system;
13-25 "CTR" is the county-unit system's effective tax rate,
13-26 expressed as dollars, which is determined by dividing the tax funds
13-27 collected by the system by the quotient of the system's taxable
14-1 value of property for the prior school year determined under
14-2 Section 11.86 of this code divided by 100;
14-3 "CPV" is the taxable value of property in the county-unit
14-4 system for the prior school year determined under Section 11.86 of
14-5 this code divided by "WADA";
14-6 "SPV" is the taxable value of property in the state for the
14-7 prior school year determined under Section 11.86 of this code
14-8 divided by the number of students in average daily attendance in
14-9 the public schools in the state; and
14-10 "WADA" is the number of students in adjusted weighted average
14-11 daily attendance in the county-unit system as determined in Section
14-12 18.63(c) of this code.
14-13 (b) The commissioner of education shall determine annually:
14-14 (1) the amount of state funds due each county-unit
14-15 system under Subsection (a) of this section; and
14-16 (2) the amount of state available school funds
14-17 distributed to the component school districts of each county-unit
14-18 system, if any.
14-19 (c) The commissioner shall determine for each county-unit
14-20 system the amount necessary to provide the difference between
14-21 Subdivisions (1) and (2) of Subsection (b) of this section, which
14-22 shall be appropriated and distributed as provided by Section 18.70
14-23 of this code.
14-24 (d) The commissioner may transmit payments under this
14-25 section in installments according to a schedule adopted by the
14-26 commissioner.
14-27 (e) A county-unit system established under Subchapter A of
15-1 this chapter is entitled to funding under this section if the
15-2 system contains all of the territory of its component districts.
15-3 Sec. 18.67. DISTRIBUTION OF FUNDS TO SCHOOL DISTRICTS. The
15-4 board of trustees of each county-unit system shall apportion state
15-5 funds received under Section 18.66 of this code to the component
15-6 school districts of the system on the basis of the number of
15-7 students in adjusted weighted average daily attendance in each
15-8 district.
15-9 Sec. 18.68. GUARANTEED YIELD ALLOTMENT FOR COMPONENT
15-10 DISTRICTS. (a) For each weighted student in average daily
15-11 attendance, as determined under Section 18.62 of this code, each
15-12 school district within a county-unit system created under Section
15-13 18.41 of this code is guaranteed a specified amount in state and
15-14 local funds for each cent of tax effort over the tax effort of the
15-15 county-unit system in which the school district is located, up to
15-16 the maximum level specified in this section. For each cent of tax
15-17 effort under this section up to 30 cents, a district is entitled to
15-18 an amount equal to $18.65 per weighted student in average daily
15-19 attendance. For each incremental cent of that tax effort between
15-20 30 cents and the district's maximum tax rate as determined under
15-21 Section 20.09 of this code, a district is entitled to an amount per
15-22 weighted student in average daily attendance determined by the
15-23 following formula:
15-24 where:
15-25 "GY" is the amount guaranteed per weighted student in average
15-26 daily attendance for each incremental cent of tax effort above 30
15-27 cents, up to the district's maximum tax rate as determined under
16-1 Section 20.09 of this code; and
16-2 "DTR" is the incremental cent of tax effort above 30 cents
16-3 that applies to the given guaranteed yield amount.
16-4 (b) Each school district's share of the guaranteed yield
16-5 allotment under Subsection (a) of this section is determined by the
16-6 following formula:
16-7 where:
16-8 "LFA" is the district's local share;
16-9 "TR" is the district's tax rate under Subsection (a) of this
16-10 section; and
16-11 "DPV" is the value of taxable property in the district for
16-12 the prior tax year determined under Section 11.86 of this code.
16-13 (c) The commissioner of education shall determine the amount
16-14 of state funds due each district under this section.
16-15 Sec. 18.69. STATE FUNDS FOR CERTAIN SCHOOL DISTRICTS. (a)
16-16 If a school district is not a component of a county-unit system
16-17 created under Section 18.41 of this code, the district is entitled
16-18 to:
16-19 (1) the same matching funds that a county-unit system
16-20 is entitled to under Section 18.66 of this code, except that for
16-21 fund allocation purposes the district's tax rate is substituted for
16-22 CTR but may not exceed $1; and
16-23 (2) a guaranteed yield allotment under Section 18.68
16-24 of this code, except that $1 is substituted for the tax effort of
16-25 the county-unit system.
16-26 (b) For purposes of Subsection (a)(1) of this section, a
16-27 district's tax rate is determined by dividing the tax funds
17-1 collected by the district by the quotient of the district's taxable
17-2 value of property, as determined under Section 11.86 of this code,
17-3 divided by 100.
17-4 (c) The commissioner of education shall determine the amount
17-5 of state funds due each district under this section.
17-6 Sec. 18.70. APPROPRIATION OF MATCHING FUNDS. (a) The
17-7 commissioner shall base the determinations under Sections 18.66(c),
17-8 18.68(c), and 18.69 of this code on the estimates provided to the
17-9 legislature under Section 18.71 of this code for each school
17-10 district for each school year. The legislature shall appropriate
17-11 from the available school fund and the foundation school program
17-12 fund a total amount equal to the total of all entitlements
17-13 determined under those sections and Section 18.65 of this code.
17-14 (b) The commissioner shall distribute to each county-unit
17-15 system or district that is not a component of a county-unit
17-16 system from the available school fund an equal amount per student
17-17 in adjusted weighted average daily attendance, except that the
17-18 total amount distributed to a system or district from that fund may
17-19 not exceed the total amount to which the system or district is
17-20 entitled under this subchapter. The commissioner shall distribute
17-21 the remainder of the amount to which a system or district is
17-22 entitled, if any, from the foundation school fund. The
17-23 commissioner shall distribute to each component school district the
17-24 amount due the district under Section 18.68(c) of this code from
17-25 the foundation school fund.
17-26 (c) The commissioner shall approve warrants to each
17-27 county-unit system or school district equaling the amount of its
18-1 entitlement except as provided by this section. Warrants for all
18-2 money expended according to the provisions of this chapter shall be
18-3 approved and transmitted to the treasurer or depository of each
18-4 system or district in the same manner that warrants for state
18-5 payments are transmitted.
18-6 (d) The commissioner shall recompute the amount to which a
18-7 system or district is entitled if the commissioner has knowledge
18-8 that an affected district's average daily attendance is less than
18-9 the number used for the average daily attendance estimate under
18-10 Section 18.71 of this code. The commissioner shall approve
18-11 warrants to the system or district in the amount that results from
18-12 the new computation. An amount equal to the difference between the
18-13 initial allocation and the amount of the warrants shall be
18-14 transferred to a special account in the foundation school fund
18-15 known as the reserve account.
18-16 (e) Amounts transferred to the reserve account under
18-17 Subsection (d) of this section shall be used in the succeeding
18-18 fiscal year to finance increases in allocations to county-unit
18-19 systems or school districts under Subsection (g) of this section.
18-20 If the amount in the reserve account is less than the amount of the
18-21 increases under Subsection (g) of this section for the second year
18-22 of a state fiscal biennium, the commissioner shall certify the
18-23 amount of the difference to the foundation school fund budget
18-24 committee not later than January 1 of the second year of the state
18-25 fiscal biennium. The committee shall propose to the legislature
18-26 that the certified amount be transferred to the foundation school
18-27 fund from the economic stabilization fund and appropriated for the
19-1 purpose of increases in appropriations under Subsection (g) of this
19-2 section.
19-3 (f) If the legislature fails during the regular session to
19-4 enact the transfer and appropriation proposed under Subsection (e)
19-5 of this section and there are not funds available under Subsection
19-6 (h) of this section, the commissioner shall substitute for "$1,385"
19-7 and "$18.65" in the formulas under Sections 18.66(a) and 18.68(a)
19-8 of this code, respectively, reduced amounts that result in
19-9 entitlements under the allocation formulas in this subchapter that
19-10 are equal to the amount available for distribution from the
19-11 foundation school fund. The commissioner shall reduce each amount
19-12 by the same percentage. Each system's or district's entitlement is
19-13 reduced to the amount to which the system or district is entitled
19-14 under the allocation formulas as revised by the commissioner. The
19-15 following fiscal year, a system's or district's entitlement under
19-16 this section is increased by an amount equal to the reduction made
19-17 under this subsection.
19-18 (g) Not later than January 1 each year, the commissioner
19-19 shall determine the actual amount of state funds to which each
19-20 system or district is entitled under the allocation formulas in
19-21 this subchapter for the current school year and shall compare that
19-22 amount with the amount of the warrants issued to each system or
19-23 district for that year. If the amount of the warrants differs from
19-24 the amount to which a system or district is entitled because of
19-25 variations in student enrollment or property value, the
19-26 commissioner shall adjust the system's or district's entitlement
19-27 for the next fiscal year accordingly.
20-1 (h) The legislature may appropriate funds necessary for
20-2 increases under Subsection (i) of this section from funds that the
20-3 comptroller, at any time during the fiscal year, finds are
20-4 available.
20-5 (i) The commissioner shall compute for each system or
20-6 district the total amount by which the system's or district's
20-7 allocation of state funds is increased or reduced under Subsection
20-8 (g) of this section and shall certify that amount to the system or
20-9 district.
20-10 (j) If in any school year the amount in the reserve account
20-11 exceeds the amount necessary for adjustments under this section,
20-12 the commissioner shall substitute for "$1,385" and "$18.65" in the
20-13 formulas under Sections 18.66(a) and 18.68(a) of this code,
20-14 respectively, increased amounts that result in entitlements under
20-15 the allocation formulas in this subchapter that are equal to the
20-16 amount available from the foundation school fund, including the
20-17 excess amount in the reserve account. The commissioner shall
20-18 increase each amount by the same percentage. Each system's or
20-19 district's entitlement is increased to the amount to which the
20-20 system or district is entitled under the allocation formulas as
20-21 revised by the commissioner. The commissioner shall make the
20-22 adjustments authorized by this subsection by the earliest possible
20-23 date in the school year.
20-24 (k) The commissioner of education shall compute for each
20-25 school district the total amount, if any, by which the district's
20-26 total revenue is reduced from one school year to the next because
20-27 of a change in the method of finance under this code. The
21-1 commissioner shall certify the amount of the reduction to the
21-2 school district for use in determining the school district's
21-3 rollback rate under Section 26.08, Tax Code.
21-4 Sec. 18.71. FUNDING ESTIMATES. (a) Not later than November
21-5 1 of each even-numbered year:
21-6 (1) the Central Education Agency shall submit to the
21-7 foundation school fund budget committee and the legislature an
21-8 estimate of student enrollment by school district for the following
21-9 biennium; and
21-10 (2) the comptroller shall submit to the foundation
21-11 school fund budget committee and the legislature an estimate of the
21-12 total value of all taxable property in the state as determined
21-13 under Section 11.86 of this code for the following biennium.
21-14 (b) The Central Education Agency and the comptroller shall
21-15 update the information provided to the legislature under Subsection
21-16 (a) of this section not later than March 1 of each odd-numbered
21-17 year.
21-18 Sec. 18.72. FOUNDATION SCHOOL FUND BUDGET COMMITTEE. (a)
21-19 The foundation school fund budget committee is composed of the
21-20 governor, the lieutenant governor, and the comptroller.
21-21 (b) On or before November 1 before each regular session of
21-22 the legislature, the budget committee shall determine and certify
21-23 to the comptroller the amount of money to be placed in the
21-24 foundation school fund for the succeeding biennium to fully fund
21-25 the allocations authorized in Sections 18.65, 18.66, and 18.68 of
21-26 this code, assuming that each system and school district set its
21-27 tax at an effective tax rate of $0.90 per $100 of taxable property
22-1 values.
22-2 (c) In this section, "effective tax rate" has the meaning
22-3 assigned by Section 18.41 of this code.
22-4 Sec. 18.73. FALSIFICATION OF RECORDS; REPORT. (a) If the
22-5 director of school audits of the Central Education Agency
22-6 determines that accounting, enrollment, or other records of a
22-7 county-unit system or school district reveal deliberate
22-8 falsification of the records whereby the system's or district's
22-9 share of state funds allocated under this subchapter would be, or
22-10 has been, illegally increased, the director shall promptly and
22-11 fully report the fact to the commissioner of education and the
22-12 state auditor.
22-13 (b) If the commissioner determines that state funds have
22-14 been overallocated to a system or district, the commissioner shall
22-15 recover two times the overallocated amount by withholding that
22-16 amount from subsequent allocations.
22-17 Sec. 18.74. EFFECT OF APPRAISAL APPEAL. (a) If the final
22-18 determination of an appeal under Chapter 42, Tax Code, results in a
22-19 reduction in the taxable value of property that exceeds five
22-20 percent of the total taxable value of property under Section 11.86
22-21 of this code, the commissioner of education shall request the
22-22 comptroller to adjust the comptroller's taxable property value
22-23 findings for that year consistent with the final determination of
22-24 the appraisal appeal.
22-25 (b) If a county-unit system or school district would have
22-26 received a greater amount from the foundation school fund for the
22-27 applicable school year using the adjusted value, the commissioner
23-1 shall add the difference to subsequent distributions to the system
23-2 or district from the foundation school fund. An adjustment does
23-3 not affect distributions to any other system or district.
23-4 SECTION 1.03. Section 18.12, Education Code, is amended by
23-5 amending Subsection (a) and adding Subsection (c) to read as
23-6 follows:
23-7 (a) The county-wide equalization tax which may be authorized
23-8 by the voters under this chapter shall be assessed at rates not to
23-9 exceed an effective tax rate of $0.90<:>
23-10 <(1) 50 cents> on the $100 property valuation <in
23-11 those counties with a total population of 100,000 or more.>
23-12 <(2) $1 on the $100 property valuation in those
23-13 counties with a total population of fewer than 100,000>.
23-14 (c) In this section, "effective tax rate" has the meaning
23-15 assigned by Section 18.41 of this code.
23-16 SECTION 1.04. Section 18.28, Education Code, is amended to
23-17 read as follows:
23-18 Sec. 18.28. Expenditure of Funds. Such funds shall be
23-19 expended by the County School Trustees of such counties for the
23-20 equalization of educational opportunities in such counties, and for
23-21 the payment of administration expense, upon warrants signed by the
23-22 President and the Secretary of the County School Trustees; and all
23-23 such expenditures shall be approved monthly by the County School
23-24 Trustees<; provided, however, no part of such fund shall be
23-25 expended in any school district which does not levy a tax for
23-26 school purposes of 75 cents or more on the 100 Dollars value of
23-27 taxable property in such district>.
24-1 SECTION 1.05. Sections 20.09(a), (b), and (c), Education
24-2 Code, are amended to read as follows:
24-3 (a) Except as provided by Subsection <Subsections> (c) <and
24-4 (d)> of this section or by Section 20.10 of this code, a school
24-5 district may not impose a total tax rate on the $100 valuation of
24-6 taxable property <that results in a levy> that exceeds:
24-7 (1) the lesser of $1.50 or a tax rate equal to 40
24-8 percent of the tax rate levied by the county-unit system of which
24-9 the school district is a component, if the district is a component
24-10 of a county-unit system created under Section 18.41 of this code;
24-11 or
24-12 (2) $1.50, if the district is not a component of a
24-13 county-unit system created under Section 18.41 of this code <the
24-14 levy that results from applying the following rate to the
24-15 district's taxable value of property as determined under Section
24-16 11.86 of this code:>
24-17 <(1) $0.78 for the 1991 tax year;>
24-18 <(2) $0.68 for the 1992 tax year;>
24-19 <(3) $0.58 for the 1993 tax year; and>
24-20 <(4) $0.50 for each subsequent tax year>.
24-21 (b) A district may impose taxes under this chapter on the
24-22 residence homestead of a person whose taxes for general elementary
24-23 and secondary public school purposes are limited under Article
24-24 VIII, Section 1-b(d), of the Texas Constitution, only to the extent
24-25 that the imposition, when added to the taxes imposed on the
24-26 homestead by a county-unit system <the county education district>,
24-27 does not increase the person's tax liability for those purposes in
25-1 violation of the constitutional limit.
25-2 (c) The portion of the total tax rate required to collect
25-3 the taxes pledged and levied for the payment of principal and
25-4 interest on debt authorized to be issued by an election held on or
25-5 before April 1, 1993 <1991>, and issued before September 1, 1994
25-6 <1992>, is not subject to the tax limitation under Subsection (a)
25-7 of this section.
25-8 SECTION 1.06. Subchapter A, Chapter 20, Education Code, is
25-9 amended by adding Section 20.10 to read as follows:
25-10 Sec. 20.10. APPROVAL OF TAX LEVY IN EXCESS OF TAX EFFORT
25-11 REQUIRED FOR HIGHEST EQUALIZED FUNDING. (a) If approved by a
25-12 majority of the voters at an election called for the purpose, a
25-13 school district may impose a tax for maintenance and operations of
25-14 its schools at a rate that generates state and local revenue in
25-15 excess of the greater of:
25-16 (1) 110 percent of the highest equalized funding
25-17 amount per student guaranteed by law to all school districts at a
25-18 common tax rate; or
25-19 (2) the sum of the highest equalized funding amount
25-20 per student guaranteed by law to all school districts at a common
25-21 tax rate and the amount per student spent by the district for the
25-22 1991-1992 school year in excess of the highest equalized funding
25-23 amount per student guaranteed by law to all school districts at a
25-24 common tax rate for the 1991-1992 school year.
25-25 (b) The commissioner of education shall prescribe uniform
25-26 language to be used in a ballot proposition at an election provided
25-27 for by Subsection (a) of this section. A school district may use
26-1 other ballot language only if approved by the commissioner.
26-2 SECTION 1.07. Sections 26.08(g) and (i), Tax Code, are
26-3 amended to read as follows:
26-4 (g) If a school district is certified by the commissioner of
26-5 education under Section 18.70(k) <16.251(c)>, Education Code, to
26-6 have been subject to a reduction in total revenue for the school
26-7 year ending on August 31 of the tax year:
26-8 (1) the district's effective maintenance and
26-9 operations rate for the tax year is calculated as provided by
26-10 Section 26.012, except that last year's levy is reduced by the
26-11 amount of taxes imposed in the preceding year, if any, to offset
26-12 the amount of any reduction certified by the commissioner of
26-13 education under Section 18.70(k) <16.251(c)>, Education Code, for
26-14 the school year ending on August 31 of the preceding year; and
26-15 (2) the district's rollback tax rate for the tax year
26-16 calculated as provided by Section 26.04 or by Subsection (e) of
26-17 this section, as applicable, is increased by the tax rate that, if
26-18 applied to the current total value for the school district, would
26-19 impose taxes in an amount equal to the amount of the reduction
26-20 certified by the commissioner of education under Section 18.70(k)
26-21 <16.251(c)>, Education Code, for the school year ending on August
26-22 31 of the tax year.
26-23 (i) If a school district is certified by the commissioner of
26-24 education under Section 18.70(i) <16.254(e)>, Education Code, to
26-25 have been subject to a reduction in state funds for the school year
26-26 ending on August 31 of the tax year:
26-27 (1) the district's effective maintenance and
27-1 operations rate for the tax year is calculated as provided by
27-2 Section 26.012, except that last year's levy is reduced by the
27-3 amount of taxes imposed in the preceding year, if any, to offset
27-4 the amount of any reduction in state funds certified by the
27-5 commissioner of education under Section 18.70(i) <16.254>,
27-6 Education Code, for the school year ending on August 31 of the
27-7 preceding year; and
27-8 (2) the district's rollback tax rate for the tax year
27-9 calculated as provided by Section 26.04 or by Subsection (e) of
27-10 this section, as applicable, is increased by the tax rate that, if
27-11 applied to the current total value for the school district, would
27-12 impose taxes in an amount equal to the amount of the reduction in
27-13 state funds certified by the commissioner of education under
27-14 Section 18.70(i) <16.254>, Education Code, for the school year
27-15 ending on August 31 of the tax year.
27-16 SECTION 1.08. Sections 11.86(a) and (h), Education Code, are
27-17 amended to read as follows:
27-18 (a) The comptroller shall conduct an annual study using
27-19 comparable sales and generally accepted auditing and sampling
27-20 techniques to determine the total value of all taxable property in
27-21 each <county education> school district and in each county-unit
27-22 system <of its component school districts>. The study shall
27-23 determine the taxable value of all property and of each category of
27-24 property within each <the> district and system and the productivity
27-25 value of all land that qualifies for appraisal on the basis of its
27-26 productive capacity and for which the owner has applied for and
27-27 received a productivity appraisal. In conducting the study, the
28-1 comptroller shall review the appraisal standards, procedures, and
28-2 methodology used by each appraisal district to determine the
28-3 taxable value of property in each school district and system. The
28-4 review must test the validity of the taxable values assigned to
28-5 each category of property by the appraisal district:
28-6 (1) using, if appropriate, samples selected through
28-7 generally accepted sampling techniques; and
28-8 (2) according to generally accepted standard
28-9 valuation, statistical compilation, and analysis techniques. If
28-10 the comptroller finds in the annual study that generally accepted
28-11 appraisal standards and practices were used by the appraisal
28-12 district in valuing a particular category of property, and that the
28-13 taxable values assigned to each category of property by the
28-14 appraisal district are valid, the appraisal roll value of that
28-15 category of property is presumed to represent taxable value. In
28-16 the absence of such a presumption, the comptroller shall estimate
28-17 the taxable value of that category of property using generally
28-18 accepted standard valuation, statistical compilation, and analysis
28-19 techniques. For the purposes of this section, "taxable value"
28-20 means market value less:
28-21 (1) the total dollar amount of any exemptions of
28-22 part but not all of the value of taxable property required by the
28-23 constitution or a statute that a district lawfully granted in the
28-24 year that is the subject of the study;
28-25 (2) the total dollar amount of any exemptions
28-26 granted within a reinvestment zone under agreements authorized by
28-27 the Property Redevelopment and Tax Abatement Act (Chapter 312, Tax
29-1 Code);
29-2 (3) the total dollar amount of any captured
29-3 appraised value of property that is located in a reinvestment zone
29-4 and that is eligible for tax increment financing under the Tax
29-5 Increment Financing Act (Chapter 311, Tax Code);
29-6 (4) the total dollar amount of any exemptions
29-7 granted under Section 11.251, Tax Code;
29-8 (5) the difference between the market value and
29-9 the productivity value of land that qualifies for appraisal on the
29-10 basis of its productive capacity, except that the productivity
29-11 value may not exceed the fair market value of the land;
29-12 (6) the portion of the appraised value of
29-13 residence homesteads of the elderly on which school district taxes
29-14 are not imposed in the year that is the subject of the study,
29-15 calculated as if the residence homesteads were appraised at the
29-16 full value required by law;
29-17 (7) a portion of the market value of property
29-18 not otherwise fully taxable by the district at market value because
29-19 of action required by statute or the Texas Constitution that, if
29-20 the tax rate adopted by the district is applied to it, produces an
29-21 amount equal to the difference between the tax that the district
29-22 would have imposed on the property if the property were fully
29-23 taxable at market value and the tax that the district is actually
29-24 authorized to impose on the property; and
29-25 (8) the market value of all tangible personal
29-26 property, other than manufactured homes, owned by a family or
29-27 individual and not held or used for the production of income.
30-1 (h) For the purposes of Subsections (b)-(g) of this section,
30-2 "school district" includes a county-unit system <county education
30-3 district established under Subchapter G, Chapter 20, of this code>.
30-4 SECTION 1.09. Section 14.063(e), Education Code, is amended
30-5 to read as follows:
30-6 (e) If an insufficient amount is available in the fund for
30-7 <the state's share of> the allotments under Subsection (b) of this
30-8 section, the agency shall reduce each district's allotment by
30-9 application of the formula adopted under Section 18.70(f)
30-10 <16.254(d)> of this code.
30-11 SECTION 1.10. Section 15.01, Education Code, is amended by
30-12 adding Subsection (d) to read as follows:
30-13 (d) If the total amount of the available school fund
30-14 apportioned to a county exceeds the amount of state funds due the
30-15 corresponding county-unit system under Section 18.66 of this code,
30-16 the excess shall be apportioned among the component school
30-17 districts of the system to the extent that each district is
30-18 eligible for state funds under Section 18.68 of this code. If a
30-19 portion of the available school fund remains after the amount due
30-20 each district under Section 18.68 has been distributed, the
30-21 remainder shall be apportioned among all school districts in the
30-22 county on the basis of the number of county resident students in
30-23 average daily attendance in each district.
30-24 SECTION 1.11. Section 15.011, Education Code, is amended to
30-25 read as follows:
30-26 Sec. 15.011. Transfers From General Revenue Fund to
30-27 Available Fund. (a) Of the amounts available for transfer from
31-1 the general revenue fund to the available school fund for the
31-2 months of January and February of each fiscal year, no more than an
31-3 amount necessary to enable the comptroller to distribute from the
31-4 available school fund an amount equal to 9 1/2 percent of the
31-5 estimated annual available school fund apportionment to category 1
31-6 school districts<, as defined in Section 16.260, Education Code,>
31-7 and 3 1/2 percent of the estimated annual available school fund
31-8 apportionment to category 2 school districts<, as defined in
31-9 Section 16.260, Education Code,> shall be transferred from the
31-10 general revenue fund to the available school fund. Any remaining
31-11 amount that would otherwise be available for transfer for the
31-12 months of January and February shall be transferred from the
31-13 general revenue fund to the available school fund in equal amounts
31-14 in June and in August of the same fiscal year.
31-15 (b) In this section:
31-16 (1) "Category 1 school district" means a school
31-17 district that has a taxable value of property, as determined under
31-18 Section 11.86 of this code, per student that is less than one-half
31-19 the statewide average taxable value of property per student.
31-20 (2) "Category 2 school district" means a school
31-21 district that has a taxable value of property per student that is
31-22 at least one-half the statewide average taxable value of property
31-23 per student but not more than the statewide average taxable value
31-24 of property per student.
31-25 SECTION 1.12. Section 2.12, Education Code, is amended to
31-26 read as follows:
31-27 Sec. 2.12. Average Daily Attendance. In this code, average
32-1 daily attendance is determined in the manner provided by Section
32-2 18.61 <16.006> of this code.
32-3 SECTION 1.13. Section 13.002, Education Code, is amended to
32-4 read as follows:
32-5 Sec. 13.002. Salaries. (a) A school district must pay
32-6 certified educational personnel not less than the following minimum
32-7 monthly salary, plus increments for years of experience:
32-8 Years 0 1 2 3 4 5 6 7 8 9 10
32-9 Salary 1700 1814 1928 2042 2156 2270 2384 2498 2612 2726 2840
32-10 (b) Personnel contracts must cover a minimum of 10 months'
32-11 service, including not less than the number of days of instruction
32-12 for students and the number of days of staff development and
32-13 preparation required by Section 21.011 of this code.
32-14 (c) A teacher employed for 11 months must provide 202 days
32-15 of service, and a teacher employed for 12 months must provide 220
32-16 days of service. <Salaries of teachers and other personnel are
32-17 governed by Subchapter D, Chapter 16 of this code.>
32-18 SECTION 1.14. Section 16.057, Education Code, is transferred
32-19 to Subchapter E, Chapter 13, Education Code, and is amended and
32-20 renumbered to read as follows:
32-21 Sec. 13.325 <16.057>. Career Ladder Salary Supplement. (a)
32-22 Each <Except as provided by Subsection (c) of this section, each>
32-23 teacher on level two, three, or four of a career ladder is entitled
32-24 to the following annual supplement in addition to the minimum
32-25 salary set by Section 13.002 of this code <this subchapter>:
32-26 Level 2 . . . . . . . $2,000
32-27 Level 3 . . . . . . . $4,000
33-1 Level 4 . . . . . . . $6,000
33-2 (b) If the district pays more than the state minimum salary
33-3 prescribed by this subchapter, the teacher is entitled to the
33-4 career ladder supplement in addition to the amount otherwise paid
33-5 by the district for the teacher's step.
33-6 (c) A district shall reserve a sufficient amount of the
33-7 funds allocated to it under the foundation school program to pay
33-8 the supplements required in this section. <If the allotment under
33-9 Section 16.158 of this code that is designated for support of the
33-10 career ladder will not fully fund the supplements under this
33-11 section:>
33-12 <(1) the district may reduce the supplements to not
33-13 less than the following:>
33-14 <Level 2......$1,500>
33-15 <Level 3......$3,000>
33-16 <Level 4......$4,500>
33-17 <or;>
33-18 <(2) provide for stricter performance criteria than
33-19 that provided under Section 13.302 of this code, subject to the
33-20 approval of the State Board of Education; or>
33-21 <(3) take action under both Subdivisions (1) and (2)
33-22 of this subsection.>
33-23 SECTION 1.15. Section 16.007, Education Code, is transferred
33-24 to Subchapter Z, Chapter 21, Education Code, and is amended and
33-25 renumbered to read as follows:
33-26 Sec. 21.938 <16.007>. Public Education Information
33-27 Management System (PEIMS). (a) Each school district and each
34-1 county-unit system <county education district> shall participate in
34-2 the Public Education Information Management System (PEIMS) and
34-3 shall provide through that system information required for the
34-4 administration of this chapter and of other appropriate provisions
34-5 of this code.
34-6 (b) Each school district and system shall use a uniform
34-7 accounting system adopted by the commissioner of education for the
34-8 data required to be reported <for the Public Education Information
34-9 Management System.>
34-10 <(c) The Central Education Agency shall report annually to
34-11 the Legislative Education Board the financial status of each county
34-12 education district. The reports shall include the total state and
34-13 local education revenues for each tier of the Foundation School
34-14 Program>.
34-15 SECTION 1.16. Section 16.052, Education Code, is transferred
34-16 to Subchapter A, Chapter 21, Education Code, and is renumbered to
34-17 read as follows:
34-18 Sec. 21.011 <16.052>. Operation of Schools; Teacher
34-19 Preparation and Staff Development. (a) Each school district must
34-20 provide for not less than 180 days of instruction for students and
34-21 not less than three days of preparation for teachers for each
34-22 school year, except as provided in Subsection (c) of this section.
34-23 (b) Each school district must provide for not less than 20
34-24 hours of staff development training under guidelines provided by
34-25 the commissioner of education. The training provided must include
34-26 technology training and must occur during regular hours of required
34-27 teacher service. On the request of a teacher, a school district
35-1 may credit the teacher compensatory time to be applied toward the
35-2 number of training hours required under this subsection for
35-3 workshops, conferences, or other professional training that the
35-4 teacher has attended.
35-5 (c) The commissioner of education may approve the operation
35-6 of schools for less than the number of days of instruction and
35-7 teacher preparation otherwise required when disasters, floods,
35-8 extreme weather conditions, fuel curtailments, or other calamities
35-9 have caused the closing of the school.
35-10 (d) Each school district may reserve three hours of the
35-11 first preparation day provided each school year under Subsection
35-12 (a) of this section for faculty staff meetings.
35-13 SECTION 1.17. Section 16.054, Education Code, is transferred
35-14 to Subchapter A, Chapter 21, Education Code, and is renumbered to
35-15 read as follows:
35-16 Sec. 21.012 <16.054>. Student/Teacher Ratios; Class Size.
35-17 (a) Except as provided by Subsection (b) of this section, each
35-18 school district must employ a sufficient number of certified
35-19 teachers to maintain an average ratio of not less than one teacher
35-20 for each 20 students in average daily attendance.
35-21 (b) A school district may not enroll more than 22 students
35-22 in a kindergarten, first, second, third, or fourth grade class.
35-23 This requirement shall not apply during the last 12 weeks of any
35-24 school year.
35-25 (c) In determining the number of students to enroll in any
35-26 class, a district shall consider the subject to be taught, the
35-27 teaching methodology to be used, and any need for individual
36-1 instruction.
36-2 (d) On application of a school district, the commissioner
36-3 may except the district from the limits in Subsection (b) of this
36-4 section if the commissioner finds the limits work an undue hardship
36-5 on the district. An exception expires at the end of the semester
36-6 for which it is granted, and the commissioner may not grant an
36-7 exception for more than one semester at a time.
36-8 (e) The commissioner shall report to the legislature each
36-9 biennium regarding compliance with this section. The report must
36-10 include:
36-11 (1) a statement of the number of school districts
36-12 granted an exception under Subsection (d) of this section; and
36-13 (2) an estimate of the total cost incurred by school
36-14 districts in that biennium in complying with this section.
36-15 SECTION 1.18. Subchapter F, Chapter 21, Education Code, is
36-16 amended by adding Section 21.183 to read as follows:
36-17 Sec. 21.183. TRANSPORTATION ALLOTMENT. (a) A school
36-18 district is entitled to an allotment for approved costs incurred in
36-19 providing transportation services for eligible students. Approved
36-20 costs include those involved in transporting an eligible student to
36-21 and from the student's residence and the campus at which the
36-22 student attends classes or to and from one campus and another
36-23 campus if the student attends classes at both locations.
36-24 (b) An eligible student is:
36-25 (1) a student who resides two or more miles from his
36-26 or her campus of regular attendance measured along the shortest
36-27 route that may be traveled on public roads;
37-1 (2) a student who resides less than two miles from his
37-2 or her campus but who would be required to walk along or cross a
37-3 freeway or expressway, an underpass, an overpass or bridge, an
37-4 uncontrolled major traffic artery, an industrial or a commercial
37-5 area, or another comparable area;
37-6 (3) a student who is handicapped, as defined by
37-7 Section 21.503 of this code, and who would be unable to attend
37-8 classes without special transportation services; and
37-9 (4) a student who attends vocational education classes
37-10 at an area vocational school or at an approved postsecondary
37-11 institution under contract with the Central Education Agency.
37-12 (c) The commissioner of education shall determine the actual
37-13 daily average cost per mile per student of providing regular
37-14 transportation services in districts within different linear
37-15 density groupings. In this section, "linear density" means the
37-16 average number of eligible students transported daily, divided by
37-17 the approved daily route miles traveled.
37-18 (d) The commissioner also shall determine the average cost
37-19 per mile per student of providing transportation for handicapped
37-20 students who require special services.
37-21 (e) The costs computed by the commissioner shall be taken
37-22 into consideration by the Legislative Budget Board and by the
37-23 legislature in determining appropriations for school transportation
37-24 services.
37-25 (f) Each district or county operating a regular
37-26 transportation system is entitled to an allotment based on the
37-27 daily cost of transporting students and the linear density of that
38-1 system. Each district also is entitled to an allotment based on
38-2 cost per mile of transporting handicapped students who require
38-3 special services. The costs may not exceed the amounts set by
38-4 appropriation.
38-5 (g) The commissioner may approve private or commercial
38-6 transportation costs incurred for the transportation of eligible
38-7 handicapped students and students from isolated areas. The costs
38-8 may not exceed actual costs or the amounts set by appropriation.
38-9 (h) If a district belongs to a county transportation system,
38-10 the district's transportation costs shall be determined on the
38-11 basis of the number of approved daily route miles traveled in the
38-12 district multiplied by the cost per route mile to which the county
38-13 transportation system is entitled.
38-14 SECTION 1.19. Subchapter I, Chapter 16, Education Code, is
38-15 transferred to Chapter 21, Education Code, and is redesignated and
38-16 renumbered to read as follows:
38-17 SUBCHAPTER X <I>. SCHOOL FACILITIES
38-18 <CAPITAL OUTLAY AND DEBT SERVICE>
38-19 Sec. 21.821 <16.401>. INVENTORY OF SCHOOL FACILITIES. (a)
38-20 The State Board of Education shall establish a statewide inventory
38-21 of school facilities and shall update the inventory on a periodic
38-22 basis.
38-23 (b) The inventory shall include information on the
38-24 condition, use, type, and replacement cost of public school
38-25 facilities in this state.
38-26 Sec. 21.822 <16.402>. STANDARDS. The State Board of
38-27 Education shall establish standards for adequacy of school
39-1 facilities. The standards shall include requirements related to
39-2 space, educational adequacy, and construction quality. All
39-3 facilities constructed after September 1, 1992, must meet the
39-4 standards in order to be financed with state or local tax funds.
39-5 Sec. 21.823 <16.403>. ADVISORY COMMITTEE. The State Board
39-6 of Education shall appoint a committee composed of 15 persons
39-7 knowledgeable of various aspects of school facility planning,
39-8 construction, renovation, and financing. The advisory committee
39-9 shall provide the board and the commissioner with assistance on the
39-10 development of the inventory system, the creation of facility
39-11 standards, and the conduct of facility research related to current
39-12 and future roles of the state in the provision of financial and
39-13 technical assistance to school districts. The members of the
39-14 committee shall serve without compensation but may be reimbursed
39-15 for actual and necessary expenses.
39-16 SECTION 1.20. Section 317.005(f), Government Code, is
39-17 amended to read as follows:
39-18 (f) The governor or board may adopt an order under this
39-19 section withholding or transferring any portion of the total amount
39-20 appropriated to finance the foundation school program for a fiscal
39-21 year. The governor or board may not adopt such an order if it
39-22 would result in an allocation of money between particular programs
39-23 or statutory allotments under the foundation school program
39-24 contrary to the statutory proration formula provided by Section
39-25 18.70(f) <16.254(d)>, Education Code. The governor or board may
39-26 transfer an amount to the total amount appropriated to finance the
39-27 foundation school program for a fiscal year and may increase the
40-1 basic allotment. The governor or board may adjust allocations of
40-2 amounts between particular programs or statutory allotments under
40-3 the foundation school program only for the purpose of conforming
40-4 the allocations to actual pupil enrollments or attendance.
40-5 SECTION 1.21. Section 403.093(d), Government Code, is
40-6 amended to read as follows:
40-7 (d) The comptroller shall transfer from the general revenue
40-8 fund to the foundation school fund an amount of money necessary to
40-9 fund the foundation school program as provided by the <Chapter 16,>
40-10 Education Code. The comptroller shall make the transfers in
40-11 installments <as necessary to comply with Section 16.260, Education
40-12 Code>. An installment must be made not earlier than two days
40-13 before the date an installment to school districts is required <by
40-14 Section 16.260, Education Code,> and must not exceed the amount
40-15 necessary for that payment.
40-16 SECTION 1.22. Section 1.04, Tax Code, is amended by amending
40-17 Subdivision (12) to read as follows:
40-18 (12) "Taxing unit" means a county, an incorporated
40-19 city or town (including a home-rule city), a school district
40-20 (including a county-unit system), <a county education district,> a
40-21 special district or authority (including a junior college district,
40-22 a hospital district, a district created by or pursuant to the Water
40-23 Code, a mosquito control district, a fire prevention district, or a
40-24 noxious weed control district), or any other political unit of this
40-25 state, whether created by or pursuant to the constitution or a
40-26 local, special, or general law, that is authorized to impose and is
40-27 imposing ad valorem taxes on property even if the governing body of
41-1 another political unit determines the tax rate for the unit or
41-2 otherwise governs its affairs.
41-3 SECTION 1.23. Section 6.02(b), Tax Code, is amended to read
41-4 as follows:
41-5 (b) A taxing unit <other than a county education district>
41-6 that has boundaries extending into two or more counties may choose
41-7 to participate in only one of the appraisal districts. In that
41-8 event, the boundaries of the district chosen extend outside the
41-9 county to the extent of the unit's boundaries. To be effective,
41-10 the choice must be approved by resolution of the board of directors
41-11 of the district chosen. <A county education district that has
41-12 boundaries extending into two or more counties must participate in
41-13 each appraisal district in which one of its component school
41-14 districts participates for purposes of appraisal of the component
41-15 school district's territory.>
41-16 SECTION 1.24. Sections 6.03(c)-(e), Tax Code, are amended to
41-17 read as follows:
41-18 (c) Members of the board of directors are appointed by vote
41-19 of the governing bodies of the incorporated cities and towns, the
41-20 school districts <other than the county education district>, and,
41-21 if entitled to vote, the conservation and reclamation districts
41-22 that participate in the district and of the county. A governing
41-23 body may cast all its votes for one candidate or distribute them
41-24 among candidates for any number of directorships. Conservation and
41-25 reclamation districts are not entitled to vote unless at least one
41-26 conservation and reclamation district in the district delivers to
41-27 the chief appraiser a written request to nominate and vote on the
42-1 board of directors by June 1 of each odd-numbered year. On receipt
42-2 of a request, the chief appraiser shall certify a list by June 15
42-3 of all eligible conservation and reclamation districts that are
42-4 imposing taxes and that participate in the district.
42-5 (d) The voting entitlement of a taxing unit that is entitled
42-6 to vote for directors is determined by dividing the total dollar
42-7 amount of property taxes imposed in the district by the taxing unit
42-8 for the preceding tax year by the sum of the total dollar amount of
42-9 property taxes imposed in the district for that year by each taxing
42-10 unit that is entitled to vote, by multiplying the quotient by
42-11 1,000, and by rounding the product to the nearest whole number.
42-12 That number is multiplied by the number of directorships to be
42-13 filled. <For a school district, the total dollar amount of
42-14 property taxes imposed in the district by the unit is considered to
42-15 be the sum of the taxes imposed by the district and the revenue
42-16 received by the district from the county education district.> A
42-17 taxing unit participating in two or more districts is entitled to
42-18 vote in each district in which it participates, but only the taxes
42-19 imposed in a district are used to calculate voting entitlement in
42-20 that district.
42-21 (e) The chief appraiser shall calculate the number of votes
42-22 to which each taxing unit other than a conservation and reclamation
42-23 district is entitled and shall deliver written notice to each of
42-24 those units of its voting entitlement before October 1 of each
42-25 odd-numbered year. The chief appraiser shall deliver the notice:
42-26 (1) to the county judge and each commissioner of the
42-27 county served by the appraisal district;
43-1 (2) to the presiding officer of the governing body of
43-2 each city or town participating in the appraisal district, to the
43-3 city manager of each city or town having a city manager, and to the
43-4 city secretary or clerk, if there is one, of each city or town that
43-5 does not have a city manager; and
43-6 (3) to the presiding officer of the governing body of
43-7 each school district<, other than the county education district,>
43-8 participating in the district and to the superintendent of each
43-9 <those> school district <districts>.
43-10 SECTION 1.25. Sections 6.06(d) and (h), Tax Code, are
43-11 amended to read as follows:
43-12 (d) Each taxing unit participating in the district<, other
43-13 than a county education district,> is allocated a portion of the
43-14 amount of the budget equal to the proportion that the total dollar
43-15 amount of property taxes imposed in the district by the unit for
43-16 the tax year in which the budget proposal is prepared bears to the
43-17 sum of the total dollar amount of property taxes imposed in the
43-18 district by each participating unit for that year. <For a school
43-19 district, other than a county education district, the total dollar
43-20 amount of property taxes imposed in the district by the unit is
43-21 considered to be the sum of the taxes imposed by the district and
43-22 the revenue received by the district from the county education
43-23 district.> If a taxing unit participates in two or more districts,
43-24 only the taxes imposed in a district are used to calculate the
43-25 unit's cost allocations in that district. If the number of real
43-26 property parcels in a taxing unit is less than 5 percent of the
43-27 total number of real property parcels in the district and the
44-1 taxing unit imposes in excess of 25 percent of the total amount of
44-2 the property taxes imposed in the district by all of the
44-3 participating taxing units for a year, the unit's allocation may
44-4 not exceed a percentage of the appraisal district's budget equal to
44-5 three times the unit's percentage of the total number of real
44-6 property parcels appraised by the district.
44-7 (h) If a newly formed taxing unit or a taxing unit that did
44-8 not impose taxes in the preceding year<, other than a county
44-9 education district,> imposes taxes in any tax year, that unit is
44-10 allocated a portion of the amount budgeted to operate the district
44-11 as if it had imposed taxes in the preceding year, except that the
44-12 amount of taxes the unit imposes in the current year is used to
44-13 calculate its allocation. Before the amount of taxes to be imposed
44-14 for the current year is known, the allocation may be based on an
44-15 estimate to which the district board of directors and the governing
44-16 body of the unit agree, and the payments made after that amount is
44-17 known shall be adjusted to reflect the amount imposed. The
44-18 payments of a newly formed taxing unit that has no source of funds
44-19 are postponed until the unit has received adequate tax or other
44-20 revenues.
44-21 SECTION 1.26. Sections 11.13(d), (e), (m), and (n), Tax
44-22 Code, are amended to read as follows:
44-23 (d) In addition to the exemptions provided by Subsections
44-24 (b) and (c) of this section, an individual who is disabled or is 65
44-25 or older is entitled to an exemption from taxation by a taxing unit
44-26 of a portion (the amount of which is fixed as provided by
44-27 Subsection (e) of this section) of the appraised value of his
45-1 residence homestead if the exemption is adopted either:
45-2 (1) by the governing body of the taxing unit <other
45-3 than a county education district>; or
45-4 (2) by a favorable vote of a majority of the qualified
45-5 voters of the taxing unit at an election called by the governing
45-6 body of the taxing unit <other than a county education district>,
45-7 and the governing body shall call the election on the petition of
45-8 at least 20 percent of the number of qualified voters who voted in
45-9 the preceding election of the taxing unit<; or>
45-10 <(3) by a favorable vote of a majority of the
45-11 qualified voters of a county education district at an election held
45-12 under Section 20.950, Education Code>.
45-13 (e) The amount of an exemption adopted as provided by
45-14 Subsection (d) of this section is $3,000 of the appraised value of
45-15 the residence homestead unless a larger amount is specified by:
45-16 (1) the governing body authorizing the exemption if
45-17 the exemption is authorized as provided by Subdivision (1) of
45-18 Subsection (d) of this section; or
45-19 (2) the petition for the election if the exemption is
45-20 authorized as provided by Subdivision (2) of Subsection (d) of this
45-21 section<; or>
45-22 <(3) the proposition approved at an election held
45-23 under Section 20.950, Education Code>.
45-24 (m) In this section:
45-25 (1) "Disabled" means under a disability for purposes
45-26 of payment of disability insurance benefits under Federal Old-Age,
45-27 Survivors, and Disability Insurance.
46-1 (2) "School district" means a political subdivision
46-2 organized to provide or finance general elementary and secondary
46-3 public education. <"School district" includes a county education
46-4 district established by the consolidation of the local school
46-5 districts in its boundaries for the limited purpose of exercising a
46-6 portion of the taxing power previously authorized by the voters in
46-7 those school districts.> "School district" does not include a
46-8 junior college district or a political subdivision organized to
46-9 provide special education services.
46-10 (n) In addition to any other exemptions provided by this
46-11 section, an individual is entitled to an exemption from taxation by
46-12 a taxing unit <other than a county education district> of a
46-13 percentage of the appraised value of his residence homestead if the
46-14 exemption is adopted by the governing body of the taxing unit
46-15 before May 1 in the manner provided by law for official action by
46-16 the body. If the percentage set by the taxing unit produces an
46-17 exemption in a tax year of less than $5,000 when applied to a
46-18 particular residence homestead, the individual is entitled to an
46-19 exemption of $5,000 of the appraised value. The percentage adopted
46-20 by the taxing unit may not exceed 20 percent. <In addition to any
46-21 other exemptions provided by this section, an individual is
46-22 entitled to an exemption from taxation by a county education
46-23 district of a percentage of the appraised value of his residence
46-24 homestead if the exemption is adopted by the voters of the district
46-25 at an election held in the district for that purpose under Section
46-26 20.946, Education Code. If the percentage set by the voters
46-27 produces an exemption in a tax year of less than $5,000 when
47-1 applied to a particular residence homestead, the individual is
47-2 entitled to an exemption of $5,000 of the appraised value. The
47-3 percentage adopted by the voters may not exceed 20 percent.>
47-4 SECTION 1.27. Sections 11.14(c) and (e), Tax Code, are
47-5 amended to read as follows:
47-6 (c) The governing body of a taxing unit<, other than a
47-7 county education district,> by resolution or order, depending upon
47-8 the method prescribed by law for official action by that governing
47-9 body, may provide for taxation of tangible personal property
47-10 exempted under Subsection (a). <The voters of a county education
47-11 district, by an election held under Section 20.951, Education Code,
47-12 may provide for taxation of tangible personal property exempted
47-13 under Subsection (a).> If a taxing unit provides for taxation of
47-14 tangible personal property as provided by this subsection, the
47-15 exemption prescribed by Subsection (a) does not apply to that unit.
47-16 (e) A political subdivision <other than a county education
47-17 district> choosing to tax property otherwise made exempt by this
47-18 section, pursuant to Article VIII, Section 1(e), of the Texas
47-19 Constitution, may not do so until the governing body of the
47-20 political subdivision has held a public hearing on the matter,
47-21 after having given notice of the hearing at the times and in the
47-22 manner required by this subsection, and has found that the action
47-23 will be in the public interest of all the residents of that
47-24 political subdivision. At the hearing, all interested persons are
47-25 entitled to speak and present evidence for or against taxing the
47-26 property. Not later than the 30th day prior to the date of a
47-27 hearing held under this subsection, notice of the hearing must be:
48-1 (1) published in a newspaper having general
48-2 circulation in the political subdivision and in a section of the
48-3 newspaper other than the advertisement section;
48-4 (2) not less than one-half of one page in size; and
48-5 (3) republished on not less than three separate days
48-6 during the period beginning with the 10th day prior to the hearing
48-7 and ending with the actual date of the hearing.
48-8 SECTION 1.28. All county education districts are abolished.
48-9 SECTION 1.29. (a) On the effective date of this Act, the
48-10 funds and other assets of a county education district are
48-11 transferred to its component school districts in proportion to the
48-12 amount contributed by each component in the manner provided by rule
48-13 of the commissioner of education.
48-14 (b) On the effective date of this Act, the contracts and
48-15 other liabilities of a county education district are transferred to
48-16 its component school districts in the manner provided by rule of
48-17 the commissioner of education.
48-18 (c) Each component school district of a county education
48-19 district may collect and use delinquent taxes imposed by the county
48-20 education district on property within the component's boundaries in
48-21 the manner provided by rule of the commissioner of education.
48-22 (d) The commissioner of education shall adopt rules for the
48-23 maintenance of county education district records.
48-24 (e) The commissioner of education shall adopt rules required
48-25 under this section.
48-26 SECTION 1.30. (a) The following provisions of the Education
48-27 Code are repealed:
49-1 (1) Sections 1.05, 14.063(c), 18.04, and 18.05;
49-2 (2) Subchapter G, Chapter 20; and
49-3 (3) Chapter 16, other than provisions transferred and
49-4 renumbered by this article.
49-5 (b) Section 322.008(b), Government Code, is repealed.
49-6 (c) The following sections of the Tax Code are
49-7 repealed: 6.061(f), 26.12(e), and 312.002(e) and (f).
49-8 SECTION 1.31. This article applies beginning with the
49-9 1993-1994 school year.
49-10 ARTICLE 2
49-11 SECTION 2.01. Chapter 20, Education Code, is amended by
49-12 adding Subchapter H to read as follows:
49-13 SUBCHAPTER H. SCHOOL FACILITIES
49-14 EQUALIZATION ASSISTANCE
49-15 Sec. 20.961. DEFINITIONS. In this subchapter:
49-16 (1) "Agency" means the Central Education Agency.
49-17 (2) "Instructional facility" means an improvement to
49-18 real property or a necessary fixture of an improvement to real
49-19 property that is used predominantly for teaching the curriculum
49-20 required under Section 21.101 of this code.
49-21 (3) "Project" means the construction, renovation, or
49-22 improvement of an instructional facility.
49-23 (4) "School district" means any public school district
49-24 in this state.
49-25 Sec. 20.962. EQUALIZATION ASSISTANCE; FACILITIES ASSISTANCE
49-26 CONTRACT. (a) A school district may obtain facilities
49-27 equalization assistance for an approved project.
50-1 (b) The agency may enter into a facilities assistance
50-2 contract with a school district under which the agency will pay
50-3 that proportion of the principal and interest due in a school year
50-4 on bonds issued in connection with an approved project that is
50-5 equal to the proportion of the guaranteed yield allotment that the
50-6 state pays under Section 18.68 of this code for that school year.
50-7 (c) From the total amount credited to the foundation school
50-8 fund, the legislature, each fiscal year, shall appropriate the
50-9 amount of $60 million for facilities equalization assistance under
50-10 this subchapter.
50-11 Sec. 20.963. PRIORITY RANKING OF SCHOOL DISTRICTS. (a) The
50-12 commissioner of education shall rank each school district to
50-13 determine the district's priority for facilities equalization
50-14 assistance, with the rankings determined as follows:
50-15 (1) a district's wealth per student in the preceding
50-16 year accounts for 80 percent of the district's ranking; and
50-17 (2) a district's average debt service tax rate in the
50-18 preceding three years accounts for 20 percent of the district's
50-19 ranking.
50-20 (b) In this section, "wealth per student" means the taxable
50-21 value of property, as determined under Section 11.86 of this code,
50-22 of a school district divided by the number of students in average
50-23 daily attendance, as determined under Section 18.61 of this code.
50-24 Sec. 20.964. APPLICATION FOR ASSISTANCE; APPROVAL. (a) To
50-25 be eligible for facilities equalization assistance for a project, a
50-26 school district must apply to the agency in the time and manner
50-27 prescribed by the commissioner of education. In a state fiscal
51-1 biennium, a district may not apply for assistance in excess of the
51-2 limit prescribed by Section 20.965(a) of this code.
51-3 (b) The commissioner of education may conditionally approve
51-4 a project for assistance under this subchapter. The commissioner's
51-5 conditional approval must be in writing and state that the actual
51-6 amount of assistance received by the school district may vary over
51-7 time in proportion to the state's share of the district's
51-8 guaranteed yield allotment under Section 18.68 of this code.
51-9 (c) The commissioner of education may not finally approve a
51-10 project for assistance under this subchapter unless:
51-11 (1) the school district holds an election to authorize
51-12 the issuance of bonds sufficient to pay the entire cost of the
51-13 project for which the district is applying for assistance; and
51-14 (2) the majority of the voters voting at the election
51-15 approve the issuance of the bonds and the levying of an annual ad
51-16 valorem tax sufficient, without limit as to rate or amount, to pay
51-17 the principal and interest on the bonds.
51-18 Sec. 20.965. LIMITS ON ASSISTANCE. (a) The agency may not
51-19 enter a facilities assistance contract that requires the agency to
51-20 pay an amount of debt service that has a present value greater than
51-21 $9 million. For purposes of this subsection, the present value of
51-22 an amount of debt service is determined by applying a current
51-23 market rate of interest for school district bonds that carry the
51-24 same rating as the bonds of the school district applying for
51-25 assistance and amortizing the indebtedness over 20 years.
51-26 (b) The agency may not enter a facilities assistance
51-27 contract that requires the agency to assist a school district in
52-1 paying debt service on an approved project for a period exceeding
52-2 20 years.
52-3 (c) A cost that permits a school district to construct an
52-4 instructional facility that exceeds a standard adopted by the State
52-5 Board of Education under Section 21.822 of this code is not
52-6 eligible for state assistance under this subchapter, but may be
52-7 paid for by the district.
52-8 Sec. 20.966. PAYMENT OF FACILITIES ASSISTANCE. Not earlier
52-9 than the 30th day before a school district's payment of principal
52-10 and interest on bonds issued in connection with an approved project
52-11 is due, the commissioner of education shall approve a warrant to
52-12 the district to pay the state's share of the payment.
52-13 Sec. 20.967. USE OF STATE FUNDS. (a) A school district
52-14 that receives state funds under this subchapter may use the funds
52-15 only for payment of principal and interest on bonds issued in
52-16 connection with the project for which the assistance was granted.
52-17 (b) The commissioner of education shall deduct from
52-18 foundation school fund payments to a district any amount that the
52-19 commissioner finds the district has used for a purpose other than
52-20 the payment of principal and interest on bonds issued in connection
52-21 with the project for which the assistance was granted.
52-22 SECTION 2.02. The Public School Facilities Funding Act
52-23 (Article 717t, Vernon's Texas Civil Statutes) is repealed.
52-24 ARTICLE 3
52-25 SECTION 3.01. Section 5.02(b), State Lottery Act (Article
52-26 179g, Vernon's Texas Civil Statutes), as amended by H.B. No. 1013,
52-27 Acts of the 73rd Legislature, Regular Session, 1993, is amended to
53-1 read as follows:
53-2 (b) Money in the state lottery account shall be used only
53-3 for the following purposes and shall be distributed as follows:
53-4 (1) the payment of prizes to the holders of winning
53-5 tickets;
53-6 (2) the payment of costs incurred in the operation and
53-7 administration of the lottery, including any fees received by a
53-8 lottery operator, provided that the costs incurred in a fiscal
53-9 biennium may not exceed an amount equal to 15 percent of the gross
53-10 revenue accruing from the sale of tickets in that biennium; and
53-11 (3) the balance, after creation of a reserve
53-12 sufficient to pay the amounts provided by Subdivisions (1) and (2)
53-13 of this subsection, to be transferred to the foundation school
53-14 <unobligated portion of the general revenue> fund, on or before the
53-15 15th day of each month.
53-16 ARTICLE 4
53-17 SECTION 4.01. The importance of this legislation and the
53-18 crowded condition of the calendars in both houses create an
53-19 emergency and an imperative public necessity that the
53-20 constitutional rule requiring bills to be read on three several
53-21 days in each house be suspended, and this rule is hereby suspended,
53-22 and that this Act take effect and be in force from and after its
53-23 passage, and it is so enacted.