By Rabuck H.B. No. 488
74R2273 CAS-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to financing public schools.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Sections 16.001 and 16.002, Education Code, are
1-5 amended to read as follows:
1-6 Sec. 16.001. State Policy. <(a)> It is the policy of the
1-7 State of Texas that the provision of public education is a state
1-8 responsibility and that a thorough <and efficient> system be
1-9 provided and <substantially> financed through state revenue sources
1-10 so that each student enrolled in the public school system shall
1-11 have access to programs and services that are appropriate to the
1-12 student's basic <his or her> educational needs <and that are
1-13 substantially equal to those available to any similar student,
1-14 notwithstanding varying local economic factors>.
1-15 <(b) The public school finance system of the State of Texas
1-16 shall adhere to a standard of neutrality which provides for
1-17 substantially equal access to similar revenue per student at
1-18 similar tax effort, considering all state and local tax revenues of
1-19 districts after acknowledging all legitimate student and district
1-20 cost differences.>
1-21 Sec. 16.002. Purpose of Foundation School Program.
1-22 <(a)> The purpose <purposes> of the Foundation School Program set
1-23 forth in this chapter is <are> to guarantee that each school
1-24 district in the state has<:>
2-1 <(1)> adequate resources to provide each eligible
2-2 student a basic instructional program and facilities suitable to
2-3 the student's educational needs<; and>
2-4 <(2) access to a substantially equalized program of
2-5 financing in excess of basic costs for certain services, as
2-6 provided by this chapter.>
2-7 <(b) The Foundation School Program consists of two tiers to
2-8 provide for the purposes specified by Subsection (a) of this
2-9 section. The first tier guarantees sufficient financing for all
2-10 school districts to provide a basic program of education that meets
2-11 accreditation and other legal standards. The second tier provides
2-12 a guaranteed yield system of financing to provide all school
2-13 districts with substantially equal access to funds to provide an
2-14 enriched program and additional funds for facilities>.
2-15 SECTION 2. Subchapter C, Chapter 16, Education Code, is
2-16 amended to read as follows:
2-17 SUBCHAPTER C. <BASIC> ENTITLEMENT FOR CORE CURRICULUM
2-18 Sec. 16.101. Basic Allotment. A school <For each student in
2-19 average daily attendance, not including the time students spend
2-20 each day in special education programs in an instructional
2-21 arrangement other than mainstream or vocational education programs,
2-22 for which an additional allotment is made under Subchapter D of
2-23 this chapter, a> district is entitled to an allotment in an amount
2-24 sufficient to pay the entire cost to the district of offering the
2-25 core curriculum as prescribed by Section 16.102 <of $2,300 or a
2-26 greater amount adopted by the foundation school fund budget
2-27 committee under Section 16.256> of this code. A greater amount for
3-1 any school year may be provided by appropriation.
3-2 Sec. 16.102. CORE CURRICULUM <COST OF EDUCATION ADJUSTMENT>.
3-3 (a) The Central Education Agency shall develop a core curriculum
3-4 that will provide all students with a basic education. The agency
3-5 shall submit the curriculum to the State Board of Education for
3-6 approval not later than August 1 of each even-numbered year. The
3-7 State Board of Education shall adopt a core curriculum not later
3-8 then September 1 of each even-numbered year. The core curriculum
3-9 must be offered by every district receiving funds under this
3-10 chapter. The State Board of Education shall evaluate and, if
3-11 necessary, amend the elements of the curriculum not later than
3-12 September 1 of every even-numbered year <basic allotment for each
3-13 district is adjusted to reflect the geographic variation in known
3-14 resource costs and costs of education due to factors beyond the
3-15 control of the school district>.
3-16 (b) The core curriculum adopted by the State Board of
3-17 Education under Subsection (a) must include elements sufficient to
3-18 provide each student with a basic education as required by Section
3-19 16.001 <adjustment for the 1993-1994 and 1994-1995 school years is
3-20 the cost of education index and formula adopted in December 1990 by
3-21 the foundation school fund budget committee. The commissioner of
3-22 education shall recalculate the cost of education index for school
3-23 districts that are eligible for the adjustment under Section 16.103
3-24 of this code, excluding from the computation the calculation for
3-25 the diseconomies of scale component and substituting a value of
3-26 1.00. Beginning with the 1995-1996 school year, the foundation
3-27 school fund budget committee shall determine the cost of education
4-1 adjustment under Section 16.256>.
4-2 (c) The agency shall determine the cost for all school
4-3 districts to provide the core curriculum and the cost to provide
4-4 the facilities needed for the core curriculum and shall submit that
4-5 amount to the comptroller not later than November 1 of each
4-6 even-numbered year. If those costs can be financed by the amount
4-7 certified to the comptroller for the foundation school fund under
4-8 Section 16.256(b), the comptroller shall certify the core
4-9 curriculum. If the curriculum cannot be completely financed by
4-10 that amount, the comptroller shall return the curriculum to the
4-11 agency with instructions to amend the elements of the curriculum to
4-12 reduce the cost to an amount available through the foundation
4-13 school fund.
4-14 Sec. 16.103. LOCAL ENRICHMENT. A school district may tax
4-15 local property as provided by Chapter 20 for programs and
4-16 facilities approved by the Central Education Agency. The agency
4-17 must approve or disapprove the use of the tax not later than the
4-18 30th day after the date the school district submits the proposed
4-19 use of the tax to the agency. <SMALL DISTRICT ADJUSTMENT. (a) The
4-20 basic allotment for certain small districts is adjusted in
4-21 accordance with Subsections (b) and (c) of this section. In this
4-22 section:>
4-23 <(1) "AA" is the district's adjusted allotment per
4-24 student;>
4-25 <(2) "ADA" is the number of students in average daily
4-26 attendance for which the district is entitled to an allotment under
4-27 Section 16.101 of this code; and>
5-1 <(3) "ABA" is the adjusted basic allotment determined
5-2 under Section 16.102 of this code.>
5-3 <(b) The basic allotment of a school district that contains
5-4 at least 300 square miles and has not more than 1,600 students in
5-5 average daily attendance is adjusted by applying the formula:>
5-6 <(c) The basic allotment of a school district that contains
5-7 less than 300 square miles and has not more than 1,600 students in
5-8 average daily attendance is adjusted by applying the formula:>
5-9 <Sec. 16.1031. USE OF SMALL DISTRICT ADJUSTMENT IN
5-10 CALCULATING SPECIAL ALLOTMENTS. In determining the amount of a
5-11 special allotment under Subchapter D of this chapter for a
5-12 district to which Section 16.103 of this code applies, a district's
5-13 adjusted basic allotment is considered to be the district's
5-14 adjusted allotment determined under Section 16.103.>
5-15 <Sec. 16.104. SPARSITY ADJUSTMENT. Notwithstanding Sections
5-16 16.101, 16.102, and 16.103 of this code, a school district that has
5-17 fewer than 130 students in average daily attendance shall be
5-18 provided an adjusted basic allotment on the basis of 130 average
5-19 daily attendance if it offers a kindergarten through grade 12
5-20 program and has prior or current year's average daily attendance of
5-21 at least 90 students or is 30 miles or more by bus route from the
5-22 nearest high school district. A district offering a kindergarten
5-23 through grade 8 program whose prior or current year's average daily
5-24 attendance was at least 50 students or which is 30 miles or more by
5-25 bus route from the nearest high school district shall be provided
5-26 an adjusted basic allotment on the basis of 75 average daily
5-27 attendance. An average daily attendance of 60 students shall be
6-1 the basis of providing the adjusted basic allotment if a district
6-2 offers a kindergarten through grade 6 program and has prior or
6-3 current year's average daily attendance of at least 40 students or
6-4 is 30 miles or more by bus route from the nearest high school
6-5 district.>
6-6 SECTION 3. The heading of Subchapter F, Chapter 16,
6-7 Education Code, is amended to read as follows:
6-8 SUBCHAPTER F. ACCOUNTABLE COSTS OF CORE CURRICULUM <EDUCATION>
6-9 SECTION 4. Section 16.201, Education Code, is amended to
6-10 read as follows:
6-11 Sec. 16.201. Purpose. The study of accountable costs of the
6-12 core curriculum is <education studies are> designed to support the
6-13 development of the <equalized> funding <elements> necessary to
6-14 provide an efficient state <and local public> school finance system
6-15 which meets the state policy established in Section 16.001 of this
6-16 code and provides the research basis for the <equalized> funding
6-17 <elements under the provisions of Section 16.256 of this code>.
6-18 SECTION 5. Subchapter F, Chapter 16, Education Code, is
6-19 amended by adding Section 16.202 to read as follows:
6-20 Sec. 16.202. STUDY. (a) On a biennial basis, the
6-21 Legislative Budget Board, with the assistance of the Educational
6-22 Economic Policy Center and the Central Education Agency, shall
6-23 complete a study of the accountable costs per student of providing
6-24 basic educational programs, personnel, facilities, and other
6-25 operating costs that satisfy criteria of the core curriculum.
6-26 (b) The cost per student of providing the core curriculum
6-27 determined under Subsection (a) shall be submitted to the Central
7-1 Education Agency not later than October 1 of each even-numbered
7-2 year.
7-3 SECTION 6. Sections 16.251 and 16.254, Education Code, are
7-4 amended to read as follows:
7-5 Sec. 16.251. Financing; General Rule. (a) The cost of the
7-6 core curriculum, including the cost of necessary facilities,
7-7 constitutes <sum of the basic allotment under Subchapter C and the
7-8 special allotments under Subchapter D, computed in accordance with
7-9 this chapter, constitute the tier one allotments. The sum of the
7-10 tier one allotments and the guaranteed yield allotments under
7-11 Subchapter H, computed in accordance with this chapter, constitute>
7-12 the total cost of the Foundation School Program in a school
7-13 district.
7-14 (b) The program shall be financed by:
7-15 (1) <ad valorem tax revenue generated by an equalized
7-16 uniform school district effort;>
7-17 <(2) ad valorem tax revenue generated by local school
7-18 district effort in excess of the equalized uniform school district
7-19 effort;>
7-20 <(3)> state available school funds distributed in
7-21 accordance with law; and
7-22 (2) <(4)> state funds appropriated for the purposes of
7-23 public school education and allocated to each district in an amount
7-24 sufficient to finance the cost of each district's Foundation School
7-25 Program <not covered by other funds specified in this subsection>.
7-26 <(c) The commissioner of education shall compute for each
7-27 school district the total amount, if any, by which the district's
8-1 total revenue is reduced from one school year to the next because
8-2 of a change in the method of finance under this chapter. The
8-3 commissioner shall certify the amount of the reduction to the
8-4 school district for use in determining the school district's
8-5 rollback rate under Section 26.08, Tax Code.>
8-6 Sec. 16.254. Distribution of Foundation School Fund.
8-7 (a) For each school year the commissioner of education shall
8-8 determine:
8-9 (1) the amount of money necessary to operate a
8-10 Foundation School Program in each <to which a> school district <is
8-11 entitled under Subchapters C and D>; and
8-12 (2) <the amount of money to which a school district is
8-13 entitled under Subchapter H;>
8-14 <(3)> the amount of money allocated to the district
8-15 from the available school fund<;>
8-16 <(4) the amount of each district's tier one local
8-17 share under Section 16.252; and>
8-18 <(5) the amount of each district's tier two local
8-19 share under Section 16.303>.
8-20 (b) <The commissioner shall base the determinations under
8-21 Subsection (a) on the estimates provided to the legislature under
8-22 Section 16.2541 for each school district for each school year or
8-23 different estimates provided by the General Appropriations Act.>
8-24 <(c)> Each school district is entitled to an amount equal to
8-25 the difference for that district between the amount <sum> of
8-26 Subsection <Subsections> (a)(1) and the amount of Subsection (a)(2)
8-27 <and the sum of Subsections (a)(3), (a)(4), and (a)(5)>.
9-1 (c) <(d)> The commissioner shall approve warrants to each
9-2 school district equaling the amount of its entitlement except as
9-3 provided by this section. Warrants for all money expended
9-4 according to this chapter shall be approved and transmitted to
9-5 treasurers or depositories of school districts in the same manner
9-6 that warrants for state payments are transmitted. The total amount
9-7 of the warrants issued under this section may not exceed the total
9-8 amount appropriated for foundation school program purposes for that
9-9 fiscal year.
9-10 (d) <(e) The commissioner shall recompute the amount to
9-11 which the district is entitled under Subsection (c) if a school
9-12 district's tax rate is less than the limit authorized under this
9-13 subsection. The amount to which a district is entitled under this
9-14 section may not exceed the amount to which the district would be
9-15 entitled at the district's tax rate for the final year of the
9-16 preceding biennium, or a different tax rate provided by
9-17 appropriation. The commissioner shall recompute the amount to
9-18 which a district is entitled to the extent necessary under this
9-19 section. The commissioner shall approve warrants to the school in
9-20 the amount that results from the new computation. An amount equal
9-21 to the difference between the initial allocation and the amount of
9-22 the warrants shall be transferred to a special account in the
9-23 foundation school fund known as the reserve account.>
9-24 <(f) Amounts transferred to the reserve account under
9-25 Subsection (e) shall be used in the succeeding fiscal year to
9-26 finance increases in allocations to school districts under
9-27 Subsection (i). If the amount in the reserve account is less than
10-1 the amount of the increases under Subsection (i) for the second
10-2 year of a state fiscal biennium, the commissioner shall certify the
10-3 amount of the difference to the foundation school fund budget
10-4 committee not later than January 1 of the second year of the state
10-5 fiscal biennium. The committee shall propose to the legislature
10-6 that the certified amount be transferred to the foundation school
10-7 fund from the economic stabilization fund and appropriated for the
10-8 purpose of increases in allocations under Subsection (h).>
10-9 <(g) If a school district demonstrates to the satisfaction
10-10 of the commissioner that the estimate of the district's tax rate,
10-11 student enrollment, or taxable value of property used in
10-12 determining the amount of state funds to which the district is
10-13 entitled are so inaccurate as to result in undue financial hardship
10-14 to the district, the commissioner may adjust funding to that
10-15 district in that school year to the extent that funds are available
10-16 for that year, including funds in the reserve account. Funds in
10-17 the reserve account may not be used under this subsection until any
10-18 reserve funds have been used for purposes of Subsection (f).>
10-19 <(h)> If for any year the total cost of the Foundation
10-20 School Program, as determined under this chapter, exceeds the total
10-21 amount appropriated for that year <the legislature fails during the
10-22 regular session to enact the transfer and appropriation proposed
10-23 under Subsection (f) and there are not funds available under
10-24 Subsection (j)>, the commissioner shall reduce the total amount of
10-25 state funds allocated to each district by an amount determined by a
10-26 method under which the application of the same number of cents of
10-27 increase in tax rate in all districts applied to the taxable value
11-1 of property of each district, as determined under Section 11.86,
11-2 results in a total levy equal to the total reduction. <The
11-3 following fiscal year, a district's entitlement under this section
11-4 is increased by an amount equal to the reduction made under this
11-5 subsection.>
11-6 <(i) Not later than March 1 each year, the commissioner
11-7 shall determine the actual amount of state funds to which each
11-8 school district is entitled under the allocation formulas in this
11-9 chapter for the current school year and shall compare that amount
11-10 with the amount of the warrants issued to each district for that
11-11 year. If the amount of the warrants differs from the amount to
11-12 which a district is entitled because of variations in the
11-13 district's tax rate, student enrollment, or taxable value of
11-14 property, the commissioner shall adjust the district's entitlement
11-15 for the next fiscal year accordingly.>
11-16 <(j) The legislature may appropriate funds necessary for
11-17 increases under Subsection (i) from funds that the comptroller, at
11-18 any time during the fiscal year, finds are available.>
11-19 <(k) The commissioner shall compute for each school district
11-20 the total amount by which the district's allocation of state funds
11-21 is increased or reduced under Subsection (i) and shall certify that
11-22 amount to the district.>
11-23 <(l) In this section, the number of weighted students in
11-24 average daily attendance is calculated in the manner provided by
11-25 Section 16.302.>
11-26 SECTION 7. Sections 11.10(r) and (s), Education Code, are
11-27 amended to read as follows:
12-1 (r) Costs <Except for certain transportation costs, costs>
12-2 of operation of the regional day school programs for the deaf shall
12-3 be borne by the state and paid from the Foundation School Program
12-4 Fund. Such costs shall be considered and included by the
12-5 Foundation School Fund Budget Committee in estimating the needs for
12-6 purposes of the Foundation School Program and the regional day
12-7 school programs for the deaf. However, funds allocated to
12-8 countywide schools shall remain so allocated except in those
12-9 regions in which the countywide program has been made a part of the
12-10 appropriate region, as aforesaid. While the principal cost of
12-11 educating deaf children shall be borne by the state, independent
12-12 school districts and all institutions of higher learning in the
12-13 state are hereby authorized and encouraged to make available real
12-14 or personal property or services in cooperation with the regional
12-15 day school programs for the deaf for any activities related to
12-16 education and betterment of education of deaf children including
12-17 but not limited to research and personnel training and development.
12-18 The school district in which a regional day school is located shall
12-19 bear the costs of transporting students in the program who live
12-20 within the district <and is entitled to have those students counted
12-21 in its allotment of transportation funds from the state>. The
12-22 regional day school program shall bear the costs of transporting
12-23 children who live outside the district to the regional day school.
12-24 It is the intent of the legislature in enacting this subsection
12-25 that the use of all of the educational resources of this state be
12-26 maximized to carry out the intent and objectives of this Act.
12-27 (s) Operating costs for the program in each regional day
13-1 school program for the deaf shall be determined and paid on the
13-2 following basis:
13-3 (1) An estimated allocation of $2,700 for each student
13-4 enrolled in the program of the regional day school program for the
13-5 deaf in any current year.
13-6 (2) Teachers, principals, supervisors, counselors,
13-7 para-professional and supporting personnel shall be employed in
13-8 such numbers as the Central Education Agency finds to be necessary
13-9 to establish and operate the regional day school programs for the
13-10 deaf, and such numbers shall not be less than student-professional
13-11 ratios known to be requisite for success in education of deaf
13-12 children. Salaries of all personnel employed in the regional day
13-13 school programs for the deaf shall be determined in accordance with
13-14 policies established by the State Board of Education.
13-15 <(3) Local districts may receive allocations for
13-16 transportation of students participating in the regional day school
13-17 programs determined in the same manner as allocations for the
13-18 transportation of other special education students.>
13-19 SECTION 8. Section 11.29(e), Education Code, is amended to
13-20 read as follows:
13-21 (e) The budget cost of operating the Central Education
13-22 Agency which is paid from the foundation school program fund shall
13-23 be included in the estimated cost of the Foundation School Program
13-24 <which is computed by the State Board of Education in March of each
13-25 year for the determination of the local fund assignment to be
13-26 charged to each school district>.
13-27 SECTION 9. Section 11.32(f), Education Code, is amended to
14-1 read as follows:
14-2 (f) Basic costs for the provision of regional education
14-3 services to school districts and coordination of educational
14-4 planning in the region and for administrative costs necessary to
14-5 support these services shall be paid from the Foundation School
14-6 Fund. Each Regional Education Service Center shall receive an
14-7 annual allotment of $200,000, with the remainder of the funds
14-8 appropriated for Regional Education Service Centers <available
14-9 under the provisions of this subsection> to be allocated <to the
14-10 Regional Education Service Centers> on the basis of the average
14-11 daily attendance within the area of operation for each Regional
14-12 Education Service Center as determined for the <next> preceding
14-13 school year. <The allotment amounts here authorized to be granted
14-14 by the State Board of Education shall not exceed in any year a sum
14-15 equal to .45 percent multiplied by the following specified elements
14-16 of cost contained in the Foundation School Program for the current
14-17 school year: salaries, maintenance and operation, vocational
14-18 operating costs, transportation-regular, transportation-special
14-19 education, transportation-vocational education, agency
14-20 administration, other special education programs, vocational
14-21 contract services, bilingual education, preschool non-English
14-22 speaking, preschool deaf, compensatory education, driver education,
14-23 and minimum aid.>
14-24 SECTION 10. Section 11.86(a), Education Code, is amended to
14-25 read as follows:
14-26 (a) The comptroller shall conduct an annual study using
14-27 comparable sales and generally accepted auditing and sampling
15-1 techniques to determine the total value of all taxable property in
15-2 each school district. The study shall determine the taxable value
15-3 of all property and of each category of property within the
15-4 district and the productivity value of all land that qualifies for
15-5 appraisal on the basis of its productive capacity and for which the
15-6 owner has applied for and received a productivity appraisal. <The
15-7 comptroller shall make appropriate adjustments in the study to
15-8 account for actions taken under Chapter 36.> In conducting the
15-9 study, the comptroller shall review the appraisal standards,
15-10 procedures, and methodology used by each appraisal district to
15-11 determine the taxable value of property in each school district.
15-12 The review must test the validity of the taxable values assigned to
15-13 each category of property by the appraisal district:
15-14 (1) using, if appropriate, samples selected through
15-15 generally accepted sampling techniques; and
15-16 (2) according to generally accepted standard
15-17 valuation, statistical compilation, and analysis techniques. If
15-18 the comptroller finds in the annual study that generally accepted
15-19 appraisal standards and practices were used by the appraisal
15-20 district in valuing a particular category of property, and that the
15-21 taxable values assigned to each category of property by the
15-22 appraisal district are valid, the appraisal roll value of that
15-23 category of property is presumed to represent taxable value. In
15-24 the absence of such a presumption, the comptroller shall estimate
15-25 the taxable value of that category of property using generally
15-26 accepted standard valuation, statistical compilation, and analysis
15-27 techniques. For the purposes of this section, "taxable value"
16-1 means market value less:
16-2 (1) the total dollar amount of any exemptions of part
16-3 but not all of the value of taxable property required by the
16-4 constitution or a statute that a district lawfully granted in the
16-5 year that is the subject of the study;
16-6 (2) the total dollar amount of any abatements granted
16-7 before May 31, 1993, within a reinvestment zone under agreements
16-8 authorized by the Property Redevelopment and Tax Abatement Act
16-9 (Chapter 312, Tax Code);
16-10 (3) the total dollar amount of any captured appraised
16-11 value of property that is located in a reinvestment zone and that
16-12 is eligible for tax increment financing under the Tax Increment
16-13 Financing Act (Chapter 311, Tax Code);
16-14 (4) the total dollar amount of any exemptions granted
16-15 under Section 11.251, Tax Code;
16-16 (5) the difference between the market value and the
16-17 productivity value of land that qualifies for appraisal on the
16-18 basis of its productive capacity, except that the productivity
16-19 value may not exceed the fair market value of the land;
16-20 (6) the portion of the appraised value of residence
16-21 homesteads of the elderly on which school district taxes are not
16-22 imposed in the year that is the subject of the study, calculated as
16-23 if the residence homesteads were appraised at the full value
16-24 required by law;
16-25 (7) a portion of the market value of property not
16-26 otherwise fully taxable by the district at market value because of
16-27 action required by statute or the Texas Constitution that, if the
17-1 tax rate adopted by the district is applied to it, produces an
17-2 amount equal to the difference between the tax that the district
17-3 would have imposed on the property if the property were fully
17-4 taxable at market value and the tax that the district is actually
17-5 authorized to impose on the property; and
17-6 (8) the market value of all tangible personal
17-7 property, other than manufactured homes, owned by a family or
17-8 individual and not held or used for the production of income.
17-9 SECTION 11. Sections 14.063 and 14.064, Education Code, are
17-10 amended to read as follows:
17-11 Sec. 14.063. FUND ADMINISTRATION; DISBURSEMENTS <TECHNOLOGY
17-12 ALLOTMENT>. (a) The Central Education Agency shall administer a
17-13 technology fund and shall make annual disbursements from the
17-14 technology fund. Each school district is entitled to a percentage
17-15 of the fund that is equal to the district's percentage of the total
17-16 number of students in average daily attendance in the state.
17-17 (b) <Each school district is entitled to an annual allotment
17-18 for the purposes provided under Section 14.064 of this code equal
17-19 to its unadjusted average daily attendance multiplied by $30, or a
17-20 greater amount provided by appropriation.>
17-21 <(c) The cost of the technology allotment is shared by the
17-22 state and district in the same percentages as the district's
17-23 Foundation School Program under Chapter 16 of this code. The
17-24 state's share is paid from the technology fund.>
17-25 <(d)> The State Board of Education shall establish rules for
17-26 the administration of this section. The rules shall provide that
17-27 the equipment purchased shall meet the standards established by the
18-1 board <under this chapter>.
18-2 <(e) If an insufficient amount is available in the fund for
18-3 the state's share of the allotments under Subsection (b) of this
18-4 section, the agency shall reduce each district's allotment in the
18-5 same manner described for a reduction in allotments under Section
18-6 16.254 of this code.>
18-7 Sec. 14.064. USE OF DISBURSEMENT <ALLOTMENT>. (a) Money a
18-8 district receives <A district's allotment> under Section 14.063 of
18-9 this code may be used only for:
18-10 (1) the acquisition of technological equipment and
18-11 related services, including hardware, software, courseware,
18-12 training, subscription fees for telecommunications and data base
18-13 services, and other related services for the purposes of this
18-14 subchapter;
18-15 (2) the procurement of an electronic on-line catalog,
18-16 circulation system, CD-ROM, or other emerging technology for each
18-17 school library;
18-18 (3) the provision for electronic access to regional,
18-19 statewide, national, and international resources;
18-20 (4) the acquisition of telecommunications equipment in
18-21 classrooms for data base applications; and
18-22 (5) the research and development of emerging
18-23 instructional technology.
18-24 (b) The Central Education Agency shall monitor each
18-25 district's <the> use of the money disbursed <each district's
18-26 allotment> to ensure that at least 75 percent of the money
18-27 <allotment> is used to provide classroom instructional services and
19-1 programs.
19-2 SECTION 12. Sections 20.04(b) and (d), Education Code, are
19-3 amended to read as follows:
19-4 (b) In each proposition submitted to authorize the issuance
19-5 of bonds there shall be included the question of whether the
19-6 governing board or commissioners court shall be authorized to levy
19-7 and pledge, and cause to be assessed and collected, annual ad
19-8 valorem taxes, on all taxable property in the district, either--
19-9 (1) sufficient, without limit as to rate or amount, to
19-10 pay the principal of and interest on said bonds; or
19-11 (2) sufficient to pay the principal of and interest on
19-12 said bonds, provided that the annual aggregate bond taxes in the
19-13 district shall never be more than the rate <(not to exceed $1 on
19-14 the $100 valuation of taxable property in the district)> stated in
19-15 said proposition.
19-16 (d) In each proposition submitted to authorize the levy of
19-17 maintenance taxes there shall be included the question of whether
19-18 the governing board or commissioners court shall be authorized to
19-19 levy, and cause to be assessed and collected, annual ad valorem
19-20 taxes, for the further maintenance of public free schools, of not
19-21 to exceed the rate <(which shall be not more than $1.50 on the $100
19-22 valuation of taxable property in the district)> stated in said
19-23 proposition.
19-24 SECTION 13. Sections 21.062 and 21.063, Education Code, are
19-25 amended to read as follows:
19-26 Sec. 21.062. Transfer of State Funds. Upon the filing and
19-27 certification of the transfer of any such child in the manner
20-1 timely and in the form prescribed by regulations of the State Board
20-2 of Education, the state per capita apportionment shall transfer
20-3 with the child; and for purposes of computing state funds
20-4 <allotments> to districts eligible under the Foundation School
20-5 Program <Act>, the attendance of the child prior to the date of
20-6 transfer shall be counted by the transfer sending district and the
20-7 attendance of the child after the date of transfer shall be counted
20-8 by the transfer receiving district.
20-9 Sec. 21.063. Tuition Fee For Transfer Students. The
20-10 receiving district may charge a tuition fee to the extent that the
20-11 district's actual expenditure per student in average daily
20-12 attendance, determinable by its board of trustees, exceeds the sum
20-13 the district benefits from state aid sources as provided in Section
20-14 21.062 of this code <and county education funds distributed under
20-15 Subchapter J, Chapter 16, of this code>. However, unless a tuition
20-16 fee is prescribed and set out in transfer agreement prior to its
20-17 execution by the parties, no increase in tuition charge shall be
20-18 made for the year of that transfer that exceeds the tuition charge,
20-19 if any, of the preceding school year.
20-20 SECTION 14. Section 21.173(a), Education Code, is amended to
20-21 read as follows:
20-22 (a) Except as otherwise provided by this section, a school
20-23 district that receives funding under the Foundation School Program
20-24 <Subsection (h) of Section 16.156 of this code> may not require or
20-25 allow a child to stand on a school bus that is in motion.
20-26 SECTION 15. Section 21.176, Education Code, is amended to
20-27 read as follows:
21-1 Sec. 21.176. Approved School Bus Routes. School buses shall
21-2 be operated to and from school on approved school bus routes and no
21-3 variations shall be made therefrom. The penalty for varying from
21-4 authorized routes and for unauthorized use of buses shall be the
21-5 withholding of <transportation> funds from the offending county or
21-6 school district. In the event the violation is committed by a
21-7 district which receives no Foundation School Program funds, the
21-8 penalty provisions of Section 4.02 of this code shall be applied.
21-9 SECTION 16. Section 21.177(d), Education Code, is amended to
21-10 read as follows:
21-11 (d) In approving a transportation system for a district or
21-12 county, consideration shall be given to providing transportation
21-13 for only those pupils who reside in hazardous areas or live two or
21-14 more miles from the school they attend except handicapped pupils.
21-15 No consideration shall be given to providing transportation for
21-16 pupils transferred from one district to another when their grades
21-17 are taught in their home district unless transferred as provided by
21-18 law and transportation has been approved as provided by law. A
21-19 district may provide transportation to pupils to after-school child
21-20 care facilities or to pupils who live within two miles of the
21-21 school they attend, and may charge a reasonable fee for such
21-22 transportation<, provided that such transportation shall not be
21-23 eligible for funding pursuant to Section 16.156 of this code>.
21-24 SECTION 17. Section 21.181, Education Code, is amended to
21-25 read as follows:
21-26 Sec. 21.181. Contract With Transportation Company or System.
21-27 (a) As an alternative to maintaining and operating a complete
22-1 public school transportation system under this subchapter, a county
22-2 or local district school board may contract with a public or
22-3 commercial transportation company or system for all or any part of
22-4 its public school transportation if the board is able to obtain an
22-5 economically advantageous contract, provided that the commercial
22-6 transportation company or system:
22-7 (1) requires its school bus drivers to be certified by
22-8 the Central Education Agency;
22-9 (2) uses only those school buses in transporting
22-10 public school students that satisfy safety requirements imposed by
22-11 law on school buses operated by public school transportation
22-12 systems; and
22-13 (3) agrees to meet the alternative fuels requirements
22-14 of Section 21.174 for those buses dedicated to the contract;
22-15 provided, however, the company or system may claim all exceptions
22-16 available to county and local district school boards under Section
22-17 21.174.
22-18 (b) A contract is economically advantageous if the cost of
22-19 the service contracted for is equal to or less than the total cost
22-20 to the school district for providing its own complete bus service.
22-21 <The total cost to the school district is the state transportation
22-22 cost allotment plus the supplementary funds necessarily provided by
22-23 the local school district to provide complete transportation
22-24 services. In determining if a contract is economically
22-25 advantageous, taxes paid by the commercial transportation company
22-26 or system on gasoline, diesel fuel, or liquefied petroleum gas may
22-27 not be considered.>
23-1 (c) <This section in no way prohibits the local school board
23-2 from supplementing the state transportation cost allotment with
23-3 local funds necessary to provide complete transportation services.>
23-4 <(d)> The State Board of Education shall adopt rules for the
23-5 administration of this section.
23-6 (d) <(e)> Contracts for alternative public school
23-7 transportation may include provisions for transporting students to
23-8 and from approved school activities.
23-9 <(f) Upon approval of the contract by the State Board of
23-10 Education, the portion of the annual transportation allotment which
23-11 is to be used to finance the contract for alternative
23-12 transportation services shall be included in the annual
23-13 transportation cost allotment for the respective county or
23-14 district.>
23-15 SECTION 18. Section 21.506(b), Education Code, is amended to
23-16 read as follows:
23-17 (b) Except as provided by Subsection (c) of this section,
23-18 contracts for residential placements when approved may be paid for
23-19 from a combination of federal, state, and local funds. <The local
23-20 share of the total contract cost per pupil is that portion of the
23-21 local tax effort (total dollars generated by debt service and
23-22 maintenance taxes) which exceeds the district's local fund
23-23 assignment under Section 16.252, divided by the average daily
23-24 attendance in the district. If the contract involves a private
23-25 facility, the state share of the total contract cost is that which
23-26 remains after subtracting the local share. If the contract
23-27 involves a public facility, the state share is that which remains
24-1 after subtracting the local share from that portion of the contract
24-2 which involves the costs of instructional and related services.>
24-3 SECTION 19. Section 26.65(a), Education Code, is amended to
24-4 read as follows:
24-5 (a) The commissioner of education shall develop and the
24-6 State Board of Education shall adopt a formula for the allocation
24-7 of state funds to a rehabilitation district on a basis similar to
24-8 that provided for independent school districts<, except that no
24-9 local fund assignment shall be charged to a rehabilitation
24-10 district>.
24-11 SECTION 20. Section 35.024(c), Education Code, is amended to
24-12 read as follows:
24-13 (c) The Central Education Agency shall develop and
24-14 distribute study guides to assist parents in providing assistance
24-15 during the period that school is recessed for summer to students
24-16 who do not perform satisfactorily on one or more parts of an
24-17 assessment instrument administered under this subchapter. <The
24-18 commissioner of education shall retain a portion of the total
24-19 amount of funds allotted under Section 16.152(a) that the
24-20 commissioner considers appropriate to finance the development and
24-21 distribution of the study guides and shall reduce each district's
24-22 allotment proportionately.>
24-23 SECTION 21. Section 74.066(a), Education Code, is amended to
24-24 read as follows:
24-25 (a) To provide for the continuance of educational programs
24-26 for persons who are inpatients and outpatients at The University of
24-27 Texas Medical Branch at Galveston and for students in the Moody
25-1 State School for Cerebral Palsied Children, the commissioner of
25-2 education shall develop and the State Board of Education shall
25-3 adopt a formula for the allocation of state special education funds
25-4 on a basis similar to that provided for independent school
25-5 districts<, except that no local fund assignment shall be charged
25-6 to the schools>.
25-7 SECTION 22. Section 105.95(e), Education Code, is amended to
25-8 read as follows:
25-9 (e) The academy is not subject to the provisions of this
25-10 code, or to the rules of the Central Education Agency, regulating
25-11 public schools, except that:
25-12 (1) professional employees of the academy are entitled
25-13 to the limited liability of an employee under Section 21.905 or
25-14 21.912 <or 21.914> of this code;
25-15 (2) a student's attendance at the academy satisfies
25-16 compulsory school attendance requirements; and
25-17 (3) <for each student enrolled,> the academy is
25-18 entitled to an allotment <allotments> from the foundation school
25-19 program under Chapter 16 of this code as if the academy were a
25-20 school district<, except that the academy has a local share applied
25-21 that is equivalent to the local share assignment of the Denton
25-22 Independent School District>.
25-23 SECTION 23. Section 317.005(f), Government Code, is amended
25-24 to read as follows:
25-25 (f) The governor or board may adopt an order under this
25-26 section withholding or transferring any portion of the total amount
25-27 appropriated to finance the foundation school program for a fiscal
26-1 year. The governor or board may not adopt such an order if it
26-2 would result in an allocation of money <between particular programs
26-3 or statutory allotments> under the foundation school program
26-4 contrary to the statutory proration formula provided by Section
26-5 16.254(d)<(h)>, Education Code. The governor or board may transfer
26-6 an amount to the total amount appropriated to finance the
26-7 foundation school program for a fiscal year <and may increase the
26-8 basic allotment. The governor or board may adjust allocations of
26-9 amounts between particular programs or statutory allotments under
26-10 the foundation school program> only for the purpose of conforming
26-11 the allocations to actual program costs <pupil enrollments or
26-12 attendance>.
26-13 SECTION 24. Section 825.405(b), Government Code, is amended
26-14 to read as follows:
26-15 (b) For purposes of this section, the statutory minimum
26-16 salary is the salary provided by Sections 16.056 and 16.058,
26-17 Education Code<, multiplied by the cost of education adjustment
26-18 applicable under Section 16.102, Education Code, to the district in
26-19 which the member is employed>.
26-20 SECTION 25. Section 6.02(b), Tax Code, is amended to read as
26-21 follows:
26-22 (b) A taxing unit that has boundaries extending into two or
26-23 more counties may choose to participate in only one of the
26-24 appraisal districts. In that event, the boundaries of the district
26-25 chosen extend outside the county to the extent of the unit's
26-26 boundaries. To be effective, the choice must be approved by
26-27 resolution of the board of directors of the district chosen. <The
27-1 choice of a school district to participate in a single appraisal
27-2 district does not apply to property annexed to the school district
27-3 under Subchapter C or G, Chapter 36, Education Code, unless:>
27-4 <(1) the school district taxes property other than
27-5 property annexed to the district under Subchapter C or G, Chapter
27-6 36, Education Code, in the same county as the annexed property; or>
27-7 <(2) the annexed property is contiguous to property in
27-8 the school district other than property annexed to the district
27-9 under Subchapter C or G, Chapter 36, Education Code.>
27-10 SECTION 26. Sections 21.01 and 21.02, Tax Code, are amended
27-11 to read as follows:
27-12 Sec. 21.01. Real Property. Real property is taxable by a
27-13 taxing unit if located in the unit on January 1<, except as
27-14 provided by Chapter 36, Education Code>.
27-15 Sec. 21.02. Tangible Personal Property Generally.
27-16 <(a)> Except as provided by <Subsection (b) and> Sections 21.021,
27-17 21.04, and 21.05, tangible personal property is taxable by a taxing
27-18 unit if:
27-19 (1) it is located in the unit on January 1 for more
27-20 than a temporary period;
27-21 (2) it normally is located in the unit, even though it
27-22 is outside the unit on January 1, if it is outside the unit only
27-23 temporarily;
27-24 (3) it normally is returned to the unit between uses
27-25 elsewhere and is not located in any one place for more than a
27-26 temporary period; or
27-27 (4) the owner resides (for property not used for
28-1 business purposes) or maintains his principal place of business in
28-2 this state (for property used for business purposes) in the unit
28-3 and the property is taxable in this state but does not have a
28-4 taxable situs pursuant to Subdivisions (1) through (3) of this
28-5 section.
28-6 <(b) Tangible personal property having taxable situs at the
28-7 same location as real property detached from a school district and
28-8 annexed by another school district under Chapter 36, Education
28-9 Code, is taxable in the tax year in which the detachment and
28-10 annexation occurs by the same school district by which the real
28-11 property is taxable in that tax year under Chapter 36, Education
28-12 Code. For purposes of this subsection and Chapter 36, Education
28-13 Code, tangible personal property has taxable situs at the same
28-14 location as real property detached and annexed under Chapter 36,
28-15 Education Code, if the detachment and annexation of the real
28-16 property, had it occurred before January 1 of the tax year, would
28-17 have changed the taxable situs of the tangible personal property
28-18 determined as provided by Subsection (a) from the school district
28-19 from which the real property was detached to the school district to
28-20 which the real property was annexed.>
28-21 <(c) Tangible personal property has taxable situs in a
28-22 school district that is the result of a consolidation under Chapter
28-23 36, Education Code, in the year in which the consolidation occurs
28-24 if the property would have had taxable situs in the consolidated
28-25 district in that year had the consolidation occurred before January
28-26 1 of that year.>
28-27 SECTION 27. Sections 26.08(d), (e), and (g), Tax Code, are
29-1 amended to read as follows:
29-2 (d) For purposes of this section, except as provided by
29-3 Subsection (e), the school district rollback tax rate of a school
29-4 district is the sum of:
29-5 (1) the tax rate that, applied to the current total
29-6 value for the district, would impose taxes in an amount that, when
29-7 added to state funds to be distributed to the district under
29-8 Chapters 15 and 16, Education Code, for the school year beginning
29-9 in the current tax year, would provide the same amount of state
29-10 funds and local maintenance and operations taxes per student in
29-11 <weighted> average daily attendance for that school year that was
29-12 available to the district in the preceding year;
29-13 (2) the rate of $0.06; and
29-14 (3) the district's current debt rate.
29-15 (e) In the first year in which a school district that is the
29-16 product of the consolidation of two or more whole school districts
29-17 adopts a tax, the school district rollback tax rate for the
29-18 consolidated district is the sum of:
29-19 (1) the tax rate that, applied to the current total
29-20 value for the district, would impose taxes in an amount that, when
29-21 added to state funds to be distributed to the district under
29-22 Chapters 15 and 16, Education Code, for the school year beginning
29-23 in the current tax year, would provide the same amount of state
29-24 funds and local maintenance and operations taxes per student in
29-25 <weighted> average daily attendance for that school year that was
29-26 available to the component district in the preceding year for which
29-27 that amount was greater than for any other component district;
30-1 (2) the rate of $0.06; and
30-2 (3) the consolidated district's current debt rate.
30-3 (g) For purposes of <In> this section, average daily
30-4 attendance is computed as provided by Section 16.006 <"weighted
30-5 students in average daily attendance" has the meaning assigned by
30-6 Section 16.302>, Education Code.
30-7 SECTION 28. (a) The following provisions of the Education
30-8 Code are repealed:
30-9 (1) Sections 11.86(h), 11.2092, 16.008, 16.252,
30-10 16.2541, 16.256(d)-(f), 16.258, 19.027(f) and (g), 20.09,
30-11 21.112(m), 21.172(b), 21.182(f), 21.513, 21.792, and 35.031;
30-12 (2) Section 16.007(c), as amended by Chapter 520, Acts
30-13 of the 73rd Legislature, Regular Session, 1993;
30-14 (3) Subchapters D and H, Chapter 16; and
30-15 (4) Chapter 36.
30-16 (b) Section 322.008(b), Government Code, is repealed.
30-17 (c) The following sections of the Tax Code are repealed:
30-18 6.02(g), 6.03(m), and 25.25(h), as added by Chapter 347, Acts of
30-19 the 73rd Legislature, Regular Session, 1993.
30-20 SECTION 29. The investment capital fund created under
30-21 Section 11.2092, Education Code, is abolished, and the comptroller
30-22 shall transfer the balance in that fund on the effective date of
30-23 this Act to the foundation school fund.
30-24 SECTION 30. This Act applies beginning with the 1996-1997
30-25 school year.
30-26 SECTION 31. The importance of this legislation and the
30-27 crowded condition of the calendars in both houses create an
31-1 emergency and an imperative public necessity that the
31-2 constitutional rule requiring bills to be read on three several
31-3 days in each house be suspended, and this rule is hereby suspended,
31-4 and that this Act take effect and be in force from and after its
31-5 passage, and it is so enacted.