74R10223 JD-D By McCall, Ehrhardt H.B. No. 49 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the authority of a school district to permit certain 1-3 persons to perform services for the district in lieu of paying ad 1-4 valorem taxes owed to the district. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Chapter 31, Tax Code, is amended by adding 1-7 Section 31.035 to read as follows: 1-8 Sec. 31.035. PERFORMANCE OF SERVICE IN LIEU OF PAYMENT OF 1-9 SCHOOL TAXES ON HOMESTEAD OF ELDERLY PERSON. (a) The governing 1-10 body of a school district by resolution may permit individuals who 1-11 are at least 65 years of age to perform service for the school 1-12 district in lieu of paying taxes imposed by the district on 1-13 property owned and occupied as a residence homestead. 1-14 (b) The governing body of the school district shall 1-15 determine: 1-16 (1) the number of property owners who will be 1-17 permitted to perform service for the district under this section; 1-18 and 1-19 (2) the maximum number of hours of service that a 1-20 property owner may perform for the district under this section. 1-21 (c) The governing body shall require that each property 1-22 owner permitted to perform service for the district under this 1-23 section execute a contract with the district. The contract must be 1-24 executed before the delinquency date and must: 2-1 (1) specify: 2-2 (A) the nature of the service that the property 2-3 owner will perform for the district; 2-4 (B) the facility of the district where service 2-5 will be performed; 2-6 (C) the number of hours of service the property 2-7 owner will perform; and 2-8 (D) the dates and times when the property owner 2-9 will perform service; and 2-10 (2) set out or describe the provisions of Subsections 2-11 (d), (e), and (f). 2-12 (d) For each hour of service performed for the school 2-13 district, the property owner receives a credit against the taxes 2-14 owed in an amount equal to the amount that would be earned by 2-15 working one hour at the federal hourly minimum wage rate. 2-16 (e) If the property owner fails to perform the service, or 2-17 if the district determines that the service of the property owner 2-18 is unsatisfactory, the district shall terminate the contract. On 2-19 the termination date the unpaid taxes for which the property owner 2-20 was to receive credit under the contract for service not yet 2-21 performed become delinquent and incur the penalty and interest 2-22 provided by Section 33.01(c). 2-23 (f) While performing service for a school district, the 2-24 property owner: 2-25 (1) is not an employee of the district; and 2-26 (2) is not entitled to any benefit, including workers' 2-27 compensation coverage, that the district provides to an employee of 3-1 the district. 3-2 (g) Property owners performing services for a school 3-3 district under this section may only supplement or complement the 3-4 regular personnel of the district. A school district may not 3-5 reduce the number of persons the district employs or reduce the 3-6 number of hours to be worked by employees of the district because 3-7 the district permits property owners to perform services for the 3-8 district under this section. 3-9 (h) A person performing service for a school district under 3-10 this section is not entitled to indemnification from the school 3-11 district for injury or property damage the person sustains or 3-12 liability the person incurs in performing service under this 3-13 section. The school district is not liable for any damages arising 3-14 from an act or omission of the person in performing service under 3-15 this section. 3-16 SECTION 2. Section 16.302, Education Code, is amended to 3-17 read as follows: 3-18 Sec. 16.302. Allotment. Each school district is guaranteed 3-19 a specified amount per weighted student in state and local funds 3-20 for each cent of tax effort over that required for the district's 3-21 local fund assignment up to the maximum level specified in this 3-22 subchapter. The amount of state support, subject only to the 3-23 maximum amount under Section 16.303 of this code, is determined by 3-24 the formula: 3-25 where: 3-26 "GYA" is the guaranteed yield amount of state funds to be 3-27 allocated to the district; 4-1 "GL" is the dollar amount guaranteed level of state and local 4-2 funds per weighted student per cent of tax effort, which is $20.55 4-3 or a greater amount for any year provided by appropriation, or a 4-4 greater amount adopted by the foundation school fund budget 4-5 committee under Section 16.256(d); 4-6 "WADA", except as provided by Section 16.206 of this code, is 4-7 the number of weighted students in average daily attendance, which 4-8 is calculated by dividing the sum of the school district's 4-9 allotments under Subchapters C and D of this chapter, less any 4-10 allotments to the district for transportation, teacher 4-11 compensation, or technology and 50 percent of the adjustment under 4-12 Section 16.102 of this code, by the basic allotment for the 4-13 applicable year; 4-14 "DTR" is the district enrichment and facilities tax rate of 4-15 the school district, which is determined by subtracting the 4-16 district's local fund assignment from the sum of the total amount 4-17 of taxes collected by the school district for the applicable school 4-18 year plus an amount equal to the total of all tax credits earned 4-19 under Section 31.035, Tax Code, and dividing the difference by the 4-20 quotient of the district's taxable value of property as determined 4-21 under Section 11.86 of this code divided by 100; and 4-22 "LR" is the local revenue, which is determined by multiplying 4-23 "DTR" by the quotient of the district's taxable value of property 4-24 as determined under Section 11.86 of this code divided by 100. 4-25 SECTION 3. The importance of this legislation and the 4-26 crowded condition of the calendars in both houses create an 4-27 emergency and an imperative public necessity that the 5-1 constitutional rule requiring bills to be read on three several 5-2 days in each house be suspended, and this rule is hereby suspended, 5-3 and that this Act take effect and be in force from and after its 5-4 passage, and it is so enacted.