By Allen H.B. No. 717
74R2211 ESH-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to financing public education.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. The heading to Chapter 16, Education Code, is
1-5 amended to read as follows:
1-6 CHAPTER 16. EDUCATION EXCELLENCE <FOUNDATION SCHOOL> PROGRAM
1-7 SECTION 2. Subchapter A, Chapter 16, Education Code, is
1-8 amended by adding Section 16.0011 to read as follows:
1-9 Sec. 16.0011. EDUCATION EXCELLENCE PROGRAM. The education
1-10 excellence program is established under this chapter for the
1-11 support of public schools.
1-12 SECTION 3. Sections 16.003(a) and (b), Education Code, are
1-13 amended to read as follows:
1-14 (a) A student is entitled to the benefits of the education
1-15 excellence program <Foundation School Program> if the student <he>
1-16 is 5 years of age or older and under 21 years of age at the
1-17 beginning of the scholastic year and has not graduated from high
1-18 school.
1-19 (b) A student to whom Subsection (a) of this section does
1-20 not apply is entitled to the benefits of the education excellence
1-21 program <Foundation School Program> if the student is enrolled in a
1-22 prekindergarten class under Section 21.136 of this code.
1-23 SECTION 4. Section 16.005, Education Code, is amended to
1-24 read as follows:
2-1 Sec. 16.005. Administration of the Program. The
2-2 commissioner of education, in accordance with the rules of the
2-3 State Board of Education, shall take such action and require such
2-4 reports consistent with the terms of this chapter as may be
2-5 necessary to implement and administer the education excellence
2-6 program <Foundation School Program>.
2-7 SECTION 5. The heading to Subchapter B, Chapter 16,
2-8 Education Code, is amended to read as follows:
2-9 SUBCHAPTER B. REQUIREMENTS FOR DISTRICT PARTICIPATION
2-10 IN THE EDUCATION EQUALIZATION EXCELLENCE
2-11 <FOUNDATION SCHOOL PROGRAM> FUND
2-12 SECTION 6. Sections 16.051 and 16.201, Education Code, are
2-13 amended to read as follows:
2-14 Sec. 16.051. Required Compliance. In order to receive
2-15 financial support from the education equalization excellence fund
2-16 <Foundation School Fund>, a school district must comply with the
2-17 standards set forth in this subchapter.
2-18 Sec. 16.201. Purpose. The accountable costs of education
2-19 studies are designed to support the development of the equalized
2-20 funding <elements> necessary to provide an efficient state and
2-21 local public school finance system which meets the state policy
2-22 established in Section 16.001 of this code and provides the
2-23 research basis for the equalized funding <elements under the
2-24 provisions of Section 16.256 of this code>.
2-25 SECTION 7. Section 16.205(d), as amended by Chapters 347 and
2-26 520, Acts of the 73rd Legislature, Regular Session, 1993, is
2-27 amended to read as follows:
3-1 (d) If a school district fails to reduce administrative
3-2 costs to the level required by this section, the commissioner of
3-3 education shall deduct from a school district's education
3-4 equalization excellence fund payments <tier one allotments> an
3-5 amount equal to the amount by which the district's administrative
3-6 costs exceed the amount permitted by its administrative cost ratio,
3-7 unless the commissioner has granted a waiver in response to the
3-8 district's request. The commissioner shall make a deduction under
3-9 this subsection from the education equalization excellence
3-10 <foundation school> fund payments to the district in the school
3-11 year following the school year in which the plan to reduce costs
3-12 was to be implemented. If a school district does not receive
3-13 education equalization excellence fund payments <a tier one
3-14 allotment>, the district shall remit an amount equal to the excess
3-15 to the comptroller for deposit to the credit of the education
3-16 equalization excellence <foundation school> fund.
3-17 SECTION 8. Sections 16.251 and 16.252, Education Code, are
3-18 amended to read as follows:
3-19 Sec. 16.251. Financing; General Rule. (a) The education
3-20 excellence <sum of the basic allotment under Subchapter C and the
3-21 special allotments under Subchapter D, computed in accordance with
3-22 this chapter, constitute the tier one allotments. The sum of the
3-23 tier one allotments and the guaranteed yield allotments under
3-24 Subchapter H, computed in accordance with this chapter, constitute
3-25 the total cost of the Foundation School Program.>
3-26 <(b) The> program shall be financed by:
3-27 (1) <ad valorem tax revenue generated by an equalized
4-1 uniform school district effort;>
4-2 <(2)> ad valorem tax revenue generated by local school
4-3 district effort <in excess of the equalized uniform school district
4-4 effort>;
4-5 (2) <(3)> state available school funds distributed in
4-6 accordance with law; and
4-7 (3) <(4)> state funds appropriated for the purposes of
4-8 public school education and allocated to each district in an amount
4-9 sufficient to finance the cost of each district's education
4-10 excellence program <Foundation School Program> not covered by other
4-11 funds specified in this subsection.
4-12 (b) <(c)> The commissioner of education shall compute for
4-13 each school district the total amount, if any, by which the
4-14 district's total revenue is reduced from one school year to the
4-15 next because of a change in the method of finance under this
4-16 chapter. The commissioner shall certify the amount of the
4-17 reduction to the school district for use in determining the school
4-18 district's rollback rate under Section 26.08, Tax Code.
4-19 Sec. 16.252. GUARANTEED AMOUNT <LOCAL SHARE OF PROGRAM COST
4-20 (TIER ONE)>. (a) Under the education excellence program, for each
4-21 school year a school district that levies ad valorem taxes at a
4-22 rate not less than a rate that results in a levy equal to the levy
4-23 that results from the application of a rate of $1.25 for each $100
4-24 valuation to the district's taxable value of property, as
4-25 determined under Section 11.86, is guaranteed for each student in
4-26 average daily attendance an amount equal to the greater of:
4-27 (1) $4,400, adjusted by the percentage increase or
5-1 decrease in the Consumer Price Index between September 1, 1995, and
5-2 June 30 of the year in which the school year begins; or
5-3 (2) the amount of state funds for each student in
5-4 average daily attendance, other than available school funds, that
5-5 the district received for the 1994-1995 school year under the
5-6 foundation school program.
5-7 (b) A school district that does not levy ad valorem taxes at
5-8 a rate that equals or exceeds the rate prescribed by Subsection (a)
5-9 may not receive funds from the education equalization excellence
5-10 fund.
5-11 (c) <Each school district's share of the Foundation School
5-12 Program shall be an amount determined by the following formula:>
5-13 <where:>
5-14 <"LFA" is the school district's local share;>
5-15 <"TR" is a tax rate which for each hundred dollars of
5-16 valuation is an effective tax rate of $0.86; and>
5-17 <"DPV" is the taxable value of property in the school
5-18 district for the prior tax year determined under Section 11.86 of
5-19 this code.>
5-20 <(b)> The commissioner of education shall adjust the values
5-21 reported in the official report of the comptroller as required by
5-22 Section 5.09(a), Tax Code, to reflect reductions in taxable value
5-23 of property resulting from natural or economic disaster after
5-24 January 1 in the year in which the valuations are determined. The
5-25 decision of the commissioner of education shall be final. <An
5-26 adjustment does not affect the local fund assignment of any other
5-27 school district.>
6-1 (d) <(c)> Appeals of district values shall be held pursuant
6-2 to Subsection (e) of Section 11.86 of this code.
6-3 <(d) A school district must raise its total local share of
6-4 the foundation school program to be eligible to receive foundation
6-5 school fund payments.>
6-6 (e) The commissioner of education shall hear appeals from
6-7 school districts which have experienced a rapid decline in tax base
6-8 <used in calculating the local fund assignment>, exceeding eight
6-9 percent of prior year, that is beyond the control of the board of
6-10 trustees of the district. The commissioner of education may adjust
6-11 the district's taxable values for <local fund assignment purposes
6-12 for> such losses in value exceeding eight percent <and thereby
6-13 adjust the local fund assignment> to reflect the local current year
6-14 taxable value. The decision of the commissioner of education shall
6-15 be final. <An adjustment does not affect the local fund assignment
6-16 of any other school district. This subsection shall apply to
6-17 determinations by the commissioner in identifying districts with
6-18 wealth per student exceeding the equalized wealth level pursuant to
6-19 Section 36.004.>
6-20 (f) In this section, "Consumer Price Index" means the
6-21 Consumer Price Index for All Urban Consumers published by the
6-22 Bureau of Labor Statistics of the United States Department of
6-23 Labor.
6-24 SECTION 9. Subchapter G, Chapter 16, Education Code, is
6-25 amended by adding Section 16.253 to read as follows:
6-26 Sec. 16.253. EDUCATION EQUALIZATION EXCELLENCE FUND. (a)
6-27 The education equalization excellence fund is in the state
7-1 treasury. The fund consists of:
7-2 (1) money credited to the fund under Section
7-3 16.256(d);
7-4 (2) revenue credited to the fund under Section
7-5 466.355(b), Government Code;
7-6 (3) revenue credited to the fund under other law; and
7-7 (4) amounts transferred to the fund in accordance with
7-8 legislative appropriations.
7-9 (b) A reference in law to the foundation school fund means
7-10 the education equalization excellence fund.
7-11 (c) Sections 403.094 and 403.095, Government Code, do not
7-12 apply to the education equalization excellence fund.
7-13 SECTION 10. Section 16.254, Education Code, is amended to
7-14 read as follows:
7-15 Sec. 16.254. DISTRIBUTION OF EDUCATION EQUALIZATION
7-16 EXCELLENCE <FOUNDATION SCHOOL> FUND. (a) For each school year the
7-17 commissioner of education shall determine:
7-18 (1) the amount of money guaranteed to each <which a>
7-19 school district <is entitled> under the education excellence
7-20 program <Subchapters C and D>;
7-21 (2) the amount of local funds raised by each school
7-22 district's ad valorem tax levy <money to which a school district is
7-23 entitled under Subchapter H>; and
7-24 (3) the amount of money allocated to each <the>
7-25 district from the available school fund<;>
7-26 <(4) the amount of each district's tier one local
7-27 share under Section 16.252; and>
8-1 <(5) the amount of each district's tier two local
8-2 share under Section 16.303>.
8-3 (b) <The commissioner shall base the determinations under
8-4 Subsection (a) on the estimates provided to the legislature under
8-5 Section 16.2541 for each school district for each school year or
8-6 different estimates provided by the General Appropriations Act.>
8-7 <(c)> Each school district is entitled to an amount equal to
8-8 the difference for that district between the amount computed under
8-9 Subsection <sum of Subsections> (a)(1) <and (a)(2)> and the sum of
8-10 Subsections (a)(2) and (a)(3)<, (a)(4), and (a)(5)>.
8-11 (c) <(d)> The commissioner shall approve warrants to each
8-12 school district equaling the amount of its entitlement except as
8-13 provided by this section. Warrants for all money expended
8-14 according to this chapter shall be approved and transmitted to
8-15 treasurers or depositories of school districts in the same manner
8-16 that warrants for state payments are transmitted. The total amount
8-17 of the warrants issued under this section may not exceed the total
8-18 amount appropriated for education excellence <foundation school>
8-19 program purposes for that fiscal year.
8-20 (d) If for any year the state's share of the education
8-21 excellence program exceeds the total amount appropriated for that
8-22 year <(e) The commissioner shall recompute the amount to which the
8-23 district is entitled under Subsection (c) if a school district's
8-24 tax rate is less than the limit authorized under this subsection.
8-25 The amount to which a district is entitled under this section may
8-26 not exceed the amount to which the district would be entitled at
8-27 the district's tax rate for the final year of the preceding
9-1 biennium, or a different tax rate provided by appropriation. The
9-2 commissioner shall recompute the amount to which a district is
9-3 entitled to the extent necessary under this section. The
9-4 commissioner shall approve warrants to the school in the amount
9-5 that results from the new computation. An amount equal to the
9-6 difference between the initial allocation and the amount of the
9-7 warrants shall be transferred to a special account in the
9-8 foundation school fund known as the reserve account.>
9-9 <(f) Amounts transferred to the reserve account under
9-10 Subsection (e) shall be used in the succeeding fiscal year to
9-11 finance increases in allocations to school districts under
9-12 Subsection (i). If the amount in the reserve account is less than
9-13 the amount of the increases under Subsection (i) for the second
9-14 year of a state fiscal biennium, the commissioner shall certify the
9-15 amount of the difference to the foundation school fund budget
9-16 committee not later than January 1 of the second year of the state
9-17 fiscal biennium. The committee shall propose to the legislature
9-18 that the certified amount be transferred to the foundation school
9-19 fund from the economic stabilization fund and appropriated for the
9-20 purpose of increases in allocations under Subsection (h).>
9-21 <(g) If a school district demonstrates to the satisfaction
9-22 of the commissioner that the estimate of the district's tax rate,
9-23 student enrollment, or taxable value of property used in
9-24 determining the amount of state funds to which the district is
9-25 entitled are so inaccurate as to result in undue financial hardship
9-26 to the district, the commissioner may adjust funding to that
9-27 district in that school year to the extent that funds are available
10-1 for that year, including funds in the reserve account. Funds in
10-2 the reserve account may not be used under this subsection until any
10-3 reserve funds have been used for purposes of Subsection (f).>
10-4 <(h) If the legislature fails during the regular session to
10-5 enact the transfer and appropriation proposed under Subsection (f)
10-6 and there are not funds available under Subsection (j)>, the
10-7 commissioner shall reduce the total amount of state funds allocated
10-8 to each district by an amount determined by a method under which
10-9 the application of the same number of cents of increase in tax rate
10-10 in all districts applied to the taxable value of property of each
10-11 district, as determined under Section 11.86, results in a total
10-12 levy equal to the total reduction. <The following fiscal year, a
10-13 district's entitlement under this section is increased by an amount
10-14 equal to the reduction made under this subsection.>
10-15 <(i) Not later than March 1 each year, the commissioner
10-16 shall determine the actual amount of state funds to which each
10-17 school district is entitled under the allocation formulas in this
10-18 chapter for the current school year and shall compare that amount
10-19 with the amount of the warrants issued to each district for that
10-20 year. If the amount of the warrants differs from the amount to
10-21 which a district is entitled because of variations in the
10-22 district's tax rate, student enrollment, or taxable value of
10-23 property, the commissioner shall adjust the district's entitlement
10-24 for the next fiscal year accordingly.>
10-25 <(j) The legislature may appropriate funds necessary for
10-26 increases under Subsection (i) from funds that the comptroller, at
10-27 any time during the fiscal year, finds are available.>
11-1 (e) <(k)> The commissioner shall compute for each school
11-2 district the total amount by which the district's allocation of
11-3 state funds is <increased or> reduced under Subsection (d) <(i)>
11-4 and shall certify that amount to the district.
11-5 <(l) In this section, the number of weighted students in
11-6 average daily attendance is calculated in the manner provided by
11-7 Section 16.302.>
11-8 SECTION 11. Section 16.256, Education Code, is amended by
11-9 amending the heading and Subsections (a)-(d) to read as follows:
11-10 Sec. 16.256. EDUCATION EQUALIZATION EXCELLENCE <FOUNDATION
11-11 SCHOOL> FUND BUDGET COMMITTEE. (a) The education equalization
11-12 excellence <foundation school> fund budget committee is composed of
11-13 the governor, the lieutenant governor, <and> the comptroller, the
11-14 attorney general, and the chairman of the State Board of Education.
11-15 (b) On or before July <December> 1 before each regular
11-16 session of the legislature, the budget committee shall determine
11-17 and certify to the comptroller an amount of money to be placed in
11-18 the education equalization excellence <foundation school> fund for
11-19 the succeeding biennium for the purpose of financing the education
11-20 excellence program <Foundation School Program> as described in this
11-21 code.
11-22 (c) Before the legislative session begins, the <The> budget
11-23 committee may<, during the biennium,> change the estimate of money
11-24 necessary to finance the education excellence program <Foundation
11-25 School Program>.
11-26 (d) At the beginning of each fiscal year, the comptroller
11-27 shall deposit to the credit of the education equalization
12-1 excellence fund, from the first money coming into the state
12-2 treasury that is not otherwise dedicated by the constitution or
12-3 encumbered by a prior appropriation, the amount certified by the
12-4 budget committee under Subsection (b). Funds transferred under
12-5 this subsection are reserved, subject to appropriation, for the
12-6 purpose of financing the education excellence program <The
12-7 foundation school fund budget committee shall adopt rules for the
12-8 calculation for each year of a biennium of the qualified funding
12-9 elements necessary to achieve the state funding policy under
12-10 Section 16.001 of this code not later than the 1994-1995 school
12-11 year and for each year thereafter. In the calculation of these
12-12 funding elements, the committee shall consider the report of the
12-13 Legislative Budget Board prescribed under Section 16.008 of this
12-14 code>.
12-15 SECTION 12. Section 16.258(b), Education Code, is amended to
12-16 read as follows:
12-17 (b) If the district would have received a greater amount
12-18 from the education equalization excellence <foundation school> fund
12-19 for the applicable school year using the adjusted value, the
12-20 commissioner shall add the difference to subsequent distributions
12-21 to the district from the <foundation school> fund. <An adjustment
12-22 does not affect the local fund assignment of any other district.>
12-23 SECTION 13. Section 16.259(c), Education Code, is amended to
12-24 read as follows:
12-25 (c) Any amounts recovered under this section shall be
12-26 deposited in the education equalization excellence <foundation
12-27 school> fund.
13-1 SECTION 14. Section 16.260, Education Code, is amended by
13-2 amending the heading and Subsections (a)-(d) to read as follows:
13-3 Sec. 16.260. Education Equalization Excellence <Foundation
13-4 School> Fund Transfers. (a) In this section:
13-5 (1) "Category 1 school district" means a school
13-6 district having a wealth of less than one-half of the statewide
13-7 average wealth.
13-8 (2) "Category 2 school district" means a school
13-9 district having a wealth of at least one-half of the statewide
13-10 average wealth <per pupil> but not more than the statewide average
13-11 wealth.
13-12 (3) "Category 3 school district" means a school
13-13 district having a wealth of more than the statewide average wealth.
13-14 (4) "Wealth" means the taxable property values
13-15 determined <reported by the comptroller to the commissioner of
13-16 education> under Section 11.86 <16.252> of this code divided by the
13-17 number of students in average daily attendance.
13-18 (b) Payments from the education equalization excellence
13-19 <foundation school> fund to each category 1 school district shall
13-20 be made as follows:
13-21 (1) 21 percent of the yearly entitlement of the
13-22 district shall be paid in two equal installments to be made on or
13-23 before the 25th day of September and October of a fiscal year;
13-24 (2) 57 percent of the yearly entitlement of the
13-25 district shall be paid in six equal installments to be made on or
13-26 before the 25th day of November, December, January, February,
13-27 March, and July; and
14-1 (3) 22 percent of the yearly entitlement of the
14-2 district shall be paid in two equal installments to be made on or
14-3 before the 25th day of April and May.
14-4 (c) Payments from the education equalization excellence
14-5 <foundation school> fund to each category 2 school district shall
14-6 be made as follows:
14-7 (1) 21 percent of the yearly entitlement of the
14-8 district shall be paid in two equal installments to be made on or
14-9 before the 25th day of September and October of a fiscal year;
14-10 (2) 38 percent of the yearly entitlement of the
14-11 district shall be paid in four equal installments to be made on or
14-12 before the 25th day of November, December, March, and July;
14-13 (3) seven percent of the yearly entitlement of the
14-14 district shall be paid in two equal installments to be made on or
14-15 before the 25th day of January and February;
14-16 (4) 22 percent of the yearly entitlement of the
14-17 district shall be paid in two equal installments to be made on or
14-18 before the 25th day of April and May; and
14-19 (5) 12 percent of the yearly entitlement of the
14-20 district shall be paid in two equal installments to be made on or
14-21 before the 25th day of June and August.
14-22 (d) Payments from the education equalization excellence
14-23 <foundation school> fund to each category 3 school district shall
14-24 be made as follows:
14-25 (1) 21 percent of the yearly entitlement of the
14-26 district shall be paid in two equal installments to be made on or
14-27 before the 25th day of September and October of a fiscal year;
15-1 (2) 57 percent of the yearly entitlement of the
15-2 district shall be paid in six equal installments to be made on or
15-3 before the 25th day of November, December, March, June, July, and
15-4 August; and
15-5 (3) 22 percent of the yearly entitlement of the
15-6 district shall be paid in two equal installments to be made on or
15-7 before the 25th day of April and May.
15-8 SECTION 15. Section 4.02, Education Code, is amended by
15-9 amending the heading and Subsections (a)-(c) and (e) to read as
15-10 follows:
15-11 Sec. 4.02. Interference with Operation of Education
15-12 Excellence <Foundation School> Program. (a) Any person who shall
15-13 confiscate, misappropriate, or convert money appropriated to the
15-14 education equalization excellence fund <Foundation School Fund> to
15-15 carry out the purposes of that program as set out in Chapter 16 of
15-16 this code after such money is received by the school district or
15-17 board of county school trustees in accordance with the terms of
15-18 Chapter 16, shall be guilty of a felony and upon conviction shall
15-19 be punished by confinement in the state penitentiary for not less
15-20 than one year nor more than five years.
15-21 (b) Any person who shall knowingly make any false statement,
15-22 or shall falsify or permit to be falsified, any record, form,
15-23 report, or budget required under the provisions of Chapter 16 of
15-24 this code, or the rules of the state officials charged with the
15-25 enforcement of the education excellence program <Foundation School
15-26 Program>, in any attempt to defraud the state or its school system
15-27 as a result of such act, shall be guilty of a felony and upon
16-1 conviction shall be punished by confinement in the state
16-2 penitentiary for not less than one year nor more than five years.
16-3 Such proceedings shall be instituted by the proper district or
16-4 county attorney in accordance with Section 41.009, Government Code
16-5 <Article 339, Revised Civil Statutes, 1925>, or any other law
16-6 appertaining thereto.
16-7 (c) Should any change or error in the records, forms,
16-8 reports, or budgets result in any school district receiving from
16-9 the education equalization excellence fund <Foundation School Fund>
16-10 more or less than it would have been entitled to receive had said
16-11 records been correct, the commissioner of education shall correct
16-12 such error, and so far as practicable shall adjust the payment in
16-13 such a manner that the amount to which such district was correctly
16-14 eligible shall be paid.
16-15 (e) If any person shall knowingly submit incorrect
16-16 information to the Central Education Agency in any report required
16-17 by Chapter 16 of this code or by the rules of the agency or by the
16-18 commissioner of education for the honest administration of the
16-19 education excellence program <Foundation School Program>, such
16-20 offenses shall constitute a felony, and any person upon conviction
16-21 shall be punished by confinement in the state penitentiary for not
16-22 less than two nor more than five years.
16-23 SECTION 16. Section 11.031, Education Code, is amended to
16-24 read as follows:
16-25 Sec. 11.031. Allocations of Certain Revenue to Texas School
16-26 for the Deaf and Texas School for the Blind and Visually Impaired.
16-27 The commissioner of education, with the assistance of the
17-1 comptroller of public accounts, shall determine the amount that the
17-2 Texas School for the Blind and Visually Impaired and the Texas
17-3 School for the Deaf would have received from the available school
17-4 fund if H.B. No. 72, Acts of the 68th Legislature, 2nd Called
17-5 Session, 1984, had not transferred statutorily dedicated taxes from
17-6 the available school fund to the foundation school fund. That
17-7 amount, minus any amount the schools do receive from the available
17-8 school fund, shall be set apart as a separate account in the
17-9 education equalization excellence <foundation school> fund and
17-10 appropriated to those schools for educational purposes.
17-11 SECTION 17. Sections 11.10(r) and (s), Education Code, are
17-12 amended to read as follows:
17-13 (r) Except for certain transportation costs, costs of
17-14 operation of the regional day school programs for the deaf shall be
17-15 borne by the state and paid from the education equalization
17-16 excellence fund <Foundation School Program Fund>. Such costs shall
17-17 be considered and included by the education equalization excellence
17-18 fund budget committee <Foundation School Fund Budget Committee> in
17-19 estimating the needs for purposes of the education excellence
17-20 program <Foundation School Program> and the regional day school
17-21 programs for the deaf. However, funds allocated to countywide
17-22 schools shall remain so allocated except in those regions in which
17-23 the countywide program has been made a part of the appropriate
17-24 region, as aforesaid. While the principal cost of educating deaf
17-25 children shall be borne by the state, independent school districts
17-26 and all institutions of higher learning in the state are hereby
17-27 authorized and encouraged to make available real or personal
18-1 property or services in cooperation with the regional day school
18-2 programs for the deaf for any activities related to education and
18-3 betterment of education of deaf children including but not limited
18-4 to research and personnel training and development. The school
18-5 district in which a regional day school is located shall bear the
18-6 costs of transporting students in the program who live within the
18-7 district <and is entitled to have those students counted in its
18-8 allotment of transportation funds from the state>. The regional
18-9 day school program shall bear the costs of transporting children
18-10 who live outside the district to the regional day school. It is
18-11 the intent of the legislature in enacting this subsection that the
18-12 use of all of the educational resources of this state be maximized
18-13 to carry out the intent and objectives of this Act.
18-14 (s) Operating costs for the program in each regional day
18-15 school program for the deaf shall be determined and paid on the
18-16 following basis:
18-17 (1) An estimated allocation of $2,700 for each student
18-18 enrolled in the program of the regional day school program for the
18-19 deaf in any current year.
18-20 (2) Teachers, principals, supervisors, counselors,
18-21 para-professional and supporting personnel shall be employed in
18-22 such numbers as the Central Education Agency finds to be necessary
18-23 to establish and operate the regional day school programs for the
18-24 deaf, and such numbers shall not be less than student-professional
18-25 ratios known to be requisite for success in education of deaf
18-26 children. Salaries of all personnel employed in the regional day
18-27 school programs for the deaf shall be determined in accordance with
19-1 policies established by the State Board of Education.
19-2 <(3) Local districts may receive allocations for
19-3 transportation of students participating in the regional day school
19-4 programs determined in the same manner as allocations for the
19-5 transportation of other special education students.>
19-6 SECTION 18. Section 11.102, Education Code, is amended to
19-7 read as follows:
19-8 Sec. 11.102. Supplemental Allowances for Exceptional
19-9 Expenses of Educating Students With Visual Impairments. From the
19-10 education equalization excellence fund <Foundation School Fund>
19-11 there shall be made available a special supplemental allowance for
19-12 each blind student or for each student with a serious visual
19-13 disability and another medically diagnosed disability of a
19-14 significantly limiting nature, who is receiving special education
19-15 services through any approved program whatsoever. The amount of
19-16 the special supplemental allowance for each blind student or for
19-17 each student with multiple disabilities shall be equivalent to the
19-18 special allocation for deaf students enrolled in regional day
19-19 school programs, as authorized by Paragraph (1), Subsection (s),
19-20 Section 11.10 of this code. The supplemental allowances may be
19-21 expended only for special services uniquely required by the nature
19-22 of the student's disabilities and may not be used in lieu of
19-23 educational funds otherwise available under this code and through
19-24 state or local appropriations.
19-25 SECTION 19. Section 11.201(b), Education Code, is amended to
19-26 read as follows:
19-27 (b) The cost to the state shall be paid from the education
20-1 equalization excellence fund <Foundation School Fund>, and this
20-2 cost shall be considered by the education equalization excellence
20-3 fund budget committee <Foundation School Fund Budget Committee> in
20-4 estimating the funds needed for education excellence program
20-5 <Foundation School Program> purposes.
20-6 SECTION 20. Section 11.202(e), Education Code, is amended to
20-7 read as follows:
20-8 (e) The costs of the program shall be paid from the
20-9 education equalization excellence <foundation school> fund.
20-10 SECTION 21. Sections 11.29(a), (c), and (e), Education Code,
20-11 are amended to read as follows:
20-12 (a) The commissioner of education shall adopt annually a
20-13 budget for operating the education excellence program <Foundation
20-14 School Program>, the Central Education Agency, and other programs
20-15 for which the State Board of Education has responsibility. The
20-16 budget shall be in accordance with the amounts appropriated by the
20-17 general appropriations act and shall provide funds for the
20-18 administration and operation of the Central Education Agency and
20-19 any other necessary expense. Before adopting the budget, the
20-20 commissioner shall:
20-21 (1) submit the budget to the State Board of Education
20-22 and the Legislative Budget Board for review and comment; and
20-23 (2) after receiving the comments of those boards,
20-24 present the budget to the governor and the Legislative Budget
20-25 Board.
20-26 (c) Expense items budgeted which are not eligible for
20-27 payment from federal or special funds shall be paid from the
21-1 education equalization excellence <foundation school program> fund.
21-2 (e) The budget cost of operating the Central Education
21-3 Agency which is paid from the education equalization excellence
21-4 <foundation school program> fund shall be included in the estimated
21-5 cost of the education excellence program <Foundation School Program
21-6 which is computed by the State Board of Education in March of each
21-7 year for the determination of the local fund assignment to be
21-8 charged to each school district>.
21-9 SECTION 22. Section 11.32(f), Education Code, is amended to
21-10 read as follows:
21-11 (f) Basic costs for the provision of regional education
21-12 services to school districts and coordination of educational
21-13 planning in the region and for administrative costs necessary to
21-14 support these services shall be paid from the education
21-15 equalization excellence fund <Foundation School Fund>. Each
21-16 Regional Education Service Center shall receive an annual allotment
21-17 of $200,000, with the remainder of any <the> funds appropriated for
21-18 Regional Education Service Centers <available under the provisions
21-19 of this subsection> to be allocated to the Regional Education
21-20 Service Centers on the basis of the average daily attendance within
21-21 the area of operation for each Regional Education Service Center as
21-22 determined for the <next> preceding school year. <The allotment
21-23 amounts here authorized to be granted by the State Board of
21-24 Education shall not exceed in any year a sum equal to .45 percent
21-25 multiplied by the following specified elements of cost contained in
21-26 the Foundation School Program for the current school year:
21-27 salaries, maintenance and operation, vocational operating costs,
22-1 transportation-regular, transportation-special education,
22-2 transportation-vocational education, agency administration, other
22-3 special education programs, vocational contract services, bilingual
22-4 education, preschool non-English speaking, preschool deaf,
22-5 compensatory education, driver education, and minimum aid.>
22-6 SECTION 23. Section 11.33(a)(9), Education Code, is amended
22-7 to read as follows:
22-8 (9) The state's share of the cost in the regional
22-9 media centers program shall be paid from the education equalization
22-10 excellence fund <Foundation School Fund>, and this cost will be
22-11 considered by the education equalization excellence fund budget
22-12 committee <Foundation Program Committee> in estimating the funds
22-13 needed for education excellence <foundation> program purposes.
22-14 Nothing in this subsection shall be construed to prohibit a center
22-15 from receiving and utilizing matching funds in any amount for which
22-16 it may be eligible from federal sources.
22-17 SECTION 24. Section 11.33(b)(4), Education Code, is amended
22-18 to read as follows:
22-19 (4) The state's share of the cost of this program
22-20 authorized by this subsection shall be paid from the education
22-21 equalization excellence fund <Foundation School Fund>, and this
22-22 cost shall be considered by the education equalization excellence
22-23 fund budget committee <Foundation School Fund Budget Committee> in
22-24 estimating the funds needed for education excellence program
22-25 <Foundation School Program> purposes.
22-26 SECTION 25. Section 11.86(a), Education Code, is amended to
22-27 read as follows:
23-1 (a) The comptroller shall conduct an annual study using
23-2 comparable sales and generally accepted auditing and sampling
23-3 techniques to determine the total value of all taxable property in
23-4 each school district. The study shall determine the taxable value
23-5 of all property and of each category of property within the
23-6 district and the productivity value of all land that qualifies for
23-7 appraisal on the basis of its productive capacity and for which the
23-8 owner has applied for and received a productivity appraisal. <The
23-9 comptroller shall make appropriate adjustments in the study to
23-10 account for actions taken under Chapter 36.> In conducting the
23-11 study, the comptroller shall review the appraisal standards,
23-12 procedures, and methodology used by each appraisal district to
23-13 determine the taxable value of property in each school district.
23-14 The review must test the validity of the taxable values assigned to
23-15 each category of property by the appraisal district:
23-16 (1) using, if appropriate, samples selected through
23-17 generally accepted sampling techniques; and
23-18 (2) according to generally accepted standard
23-19 valuation, statistical compilation, and analysis techniques. If
23-20 the comptroller finds in the annual study that generally accepted
23-21 appraisal standards and practices were used by the appraisal
23-22 district in valuing a particular category of property, and that the
23-23 taxable values assigned to each category of property by the
23-24 appraisal district are valid, the appraisal roll value of that
23-25 category of property is presumed to represent taxable value. In
23-26 the absence of such a presumption, the comptroller shall estimate
23-27 the taxable value of that category of property using generally
24-1 accepted standard valuation, statistical compilation, and analysis
24-2 techniques. For the purposes of this section, "taxable value"
24-3 means market value less:
24-4 (1) the total dollar amount of any exemptions of part
24-5 but not all of the value of taxable property required by the
24-6 constitution or a statute that a district lawfully granted in the
24-7 year that is the subject of the study;
24-8 (2) the total dollar amount of any abatements granted
24-9 before May 31, 1993, within a reinvestment zone under agreements
24-10 authorized by the Property Redevelopment and Tax Abatement Act
24-11 (Chapter 312, Tax Code);
24-12 (3) the total dollar amount of any captured appraised
24-13 value of property that is located in a reinvestment zone and that
24-14 is eligible for tax increment financing under the Tax Increment
24-15 Financing Act (Chapter 311, Tax Code);
24-16 (4) the total dollar amount of any exemptions granted
24-17 under Section 11.251, Tax Code;
24-18 (5) the difference between the market value and the
24-19 productivity value of land that qualifies for appraisal on the
24-20 basis of its productive capacity, except that the productivity
24-21 value may not exceed the fair market value of the land;
24-22 (6) the portion of the appraised value of residence
24-23 homesteads of the elderly on which school district taxes are not
24-24 imposed in the year that is the subject of the study, calculated as
24-25 if the residence homesteads were appraised at the full value
24-26 required by law;
24-27 (7) a portion of the market value of property not
25-1 otherwise fully taxable by the district at market value because of
25-2 action required by statute or the Texas Constitution that, if the
25-3 tax rate adopted by the district is applied to it, produces an
25-4 amount equal to the difference between the tax that the district
25-5 would have imposed on the property if the property were fully
25-6 taxable at market value and the tax that the district is actually
25-7 authorized to impose on the property; and
25-8 (8) the market value of all tangible personal
25-9 property, other than manufactured homes, owned by a family or
25-10 individual and not held or used for the production of income.
25-11 SECTION 26. Section 13.117(g), Education Code, is amended to
25-12 read as follows:
25-13 (g) The commissioner of education, if funds are available
25-14 either through the education excellence program <Foundation School
25-15 Program> or through various regional service center grants or
25-16 funds, may forward funds to the local participating districts in
25-17 the pilot programs to assist in local funding of these programs.
25-18 In addition, local school districts are encouraged to seek private
25-19 funding, including foundation support to pursue the goals of this
25-20 subchapter.
25-21 SECTION 27. Section 15.06(f), Education Code, is amended to
25-22 read as follows:
25-23 (f) The comptroller of public accounts shall not issue any
25-24 warrant from the education equalization excellence <foundation
25-25 school> fund to or for the benefit of any district which has been
25-26 for as long as two years in default in the payment of principal or
25-27 interest on any security owned by the permanent school fund unless
26-1 and until the State Board of Education certifies that the district
26-2 has satisfactorily complied with the appropriate provisions of this
26-3 section, in which event the comptroller shall resume making
26-4 payments to or for the benefit of the district, including the
26-5 making of pretermitted payments.
26-6 SECTION 28. Sections 20.481, 21.062, 21.063, 21.161, and
26-7 21.169, Education Code, are amended to read as follows:
26-8 Sec. 20.481. Use of County Available Fund Apportionment for
26-9 Vocational and Technical Schools. Where any public school district
26-10 or accumulation of districts of this state operates a school
26-11 designated as an area vocational school for vocational and
26-12 technical school purposes and/or which participates in such a
26-13 designated area vocational school program, its annual county
26-14 available school fund apportionment, if any, shall be employed in
26-15 the operation of such school and/or in financing facilities
26-16 therefor notwithstanding any laws to the contrary; provided
26-17 further, that any such school district(s) shall not be held
26-18 accountable for or charged with county available school funds in
26-19 determination of eligibility for education excellence <minimum
26-20 foundation school> program funds.
26-21 Sec. 21.062. Transfer of State Funds. Upon the filing and
26-22 certification of the transfer of any such child in the manner
26-23 timely and in the form prescribed by regulations of the State Board
26-24 of Education, the state per capita apportionment shall transfer
26-25 with the child; and for purposes of computing state funds
26-26 <allotments> to districts eligible under Chapter 16 <the Foundation
26-27 School Program Act>, the attendance of the child prior to the date
27-1 of transfer shall be counted by the transfer sending district and
27-2 the attendance of the child after the date of transfer shall be
27-3 counted by the transfer receiving district.
27-4 Sec. 21.063. Tuition Fee For Transfer Students. The
27-5 receiving district may charge a tuition fee to the extent that the
27-6 district's actual expenditure per student in average daily
27-7 attendance, determinable by its board of trustees, exceeds the sum
27-8 the district benefits from state aid sources as provided in Section
27-9 21.062 of this code <and county education funds distributed under
27-10 Subchapter J, Chapter 16, of this code>. However, unless a tuition
27-11 fee is prescribed and set out in transfer agreement prior to its
27-12 execution by the parties, no increase in tuition charge shall be
27-13 made for the year of that transfer that exceeds the tuition charge,
27-14 if any, of the preceding school year.
27-15 Sec. 21.161. General Rule. Except as specifically
27-16 authorized by this subchapter all motor vehicles used for
27-17 transporting school children (including buses, bus chassis, and bus
27-18 bodies, tires and tubes, but excluding passenger cars), purchased
27-19 by or for any school district participating in the education
27-20 excellence program <Foundation School Program>, shall be purchased
27-21 by and through the General Services Commission <State Board of
27-22 Control>.
27-23 Sec. 21.169. Compliance. Compliance with the purchase and
27-24 sale provisions of this subchapter shall be a condition precedent
27-25 to participation in the education equalization excellence fund
27-26 <Foundation School Fund>. Any school district failing or refusing
27-27 to comply shall be ineligible to share in the education
28-1 equalization excellence fund <Foundation School Fund> for one year
28-2 from the date of such failure or refusal or violation of the terms
28-3 hereof.
28-4 SECTION 29. Section 21.173(a), Education Code, is amended to
28-5 read as follows:
28-6 (a) Except as otherwise provided by this section, a school
28-7 district that receives state funding under Chapter 16 <Subsection
28-8 (h) of Section 16.156> of this code may not require or allow a
28-9 child to stand on a school bus that is in motion.
28-10 SECTION 30. Section 21.176, Education Code, is amended to
28-11 read as follows:
28-12 Sec. 21.176. Approved School Bus Routes. School buses shall
28-13 be operated to and from school on approved school bus routes and no
28-14 variations shall be made therefrom. The penalty for varying from
28-15 authorized routes and for unauthorized use of buses shall be the
28-16 withholding of education excellence program <transportation> funds
28-17 from the offending county or school district. In the event the
28-18 violation is committed by a district which receives no education
28-19 excellence program <Foundation School Program> funds, the penalty
28-20 provisions of Section 4.02 of this code shall be applied.
28-21 SECTION 31. Section 21.177(d), Education Code, is amended to
28-22 read as follows:
28-23 (d) In approving a transportation system for a district or
28-24 county, consideration shall be given to providing transportation
28-25 for only those pupils who reside in hazardous areas or live two or
28-26 more miles from the school they attend except handicapped pupils.
28-27 No consideration shall be given to providing transportation for
29-1 pupils transferred from one district to another when their grades
29-2 are taught in their home district unless transferred as provided by
29-3 law and transportation has been approved as provided by law. A
29-4 district may provide transportation to pupils to after-school child
29-5 care facilities or to pupils who live within two miles of the
29-6 school they attend, and may charge a reasonable fee for such
29-7 transportation<, provided that such transportation shall not be
29-8 eligible for funding pursuant to Section 16.156 of this code>.
29-9 SECTION 32. Section 21.181, Education Code, is amended to
29-10 read as follows:
29-11 Sec. 21.181. Contact With Transportation Company or System.
29-12 (a) As an alternative to maintaining and operating a complete
29-13 public school transportation system under this subchapter, a county
29-14 or local district school board may contract with a public or
29-15 commercial transportation company or system for all or any part of
29-16 its public school transportation if the board is able to obtain an
29-17 economically advantageous contract, provided that the commercial
29-18 transportation company or system:
29-19 (1) requires its school bus drivers to be certified by
29-20 the Central Education Agency;
29-21 (2) uses only those school buses in transporting
29-22 public school students that satisfy safety requirements imposed by
29-23 law on school buses operated by public school transportation
29-24 systems; and
29-25 (3) agrees to meet the alternative fuels requirements
29-26 of Section 21.174 for those buses dedicated to the contract;
29-27 provided, however, the company or system may claim all exceptions
30-1 available to county and local district school boards under Section
30-2 21.174.
30-3 (b) A contract is economically advantageous if the cost of
30-4 the service contracted for is equal to or less than the total cost
30-5 to the school district for providing its own complete bus service.
30-6 <The total cost to the school district is the state transportation
30-7 cost allotment plus the supplementary funds necessarily provided by
30-8 the local school district to provide complete transportation
30-9 services. In determining if a contract is economically
30-10 advantageous, taxes paid by the commercial transportation company
30-11 or system on gasoline, diesel fuel, or liquefied petroleum gas may
30-12 not be considered.>
30-13 (c) <This section in no way prohibits the local school board
30-14 from supplementing the state transportation cost allotment with
30-15 local funds necessary to provide complete transportation services.>
30-16 <(d)> The State Board of Education shall adopt rules for the
30-17 administration of this section.
30-18 (d) <(e)> Contracts for alternative public school
30-19 transportation may include provisions for transporting students to
30-20 and from approved school activities.
30-21 <(f) Upon approval of the contract by the State Board of
30-22 Education, the portion of the annual transportation allotment which
30-23 is to be used to finance the contract for alternative
30-24 transportation services shall be included in the annual
30-25 transportation cost allotment for the respective county or
30-26 district.>
30-27 SECTION 33. Section 21.458(f), Education Code, is amended to
31-1 read as follows:
31-2 (f) The legislature may appropriate funds from the education
31-3 excellence <foundation school> program for support of a program
31-4 under Subsection (a) of this section.
31-5 SECTION 34. Section 21.461(e), Education Code, is amended to
31-6 read as follows:
31-7 (e) If a school district fails to or refuses to comply after
31-8 proper notification, the agency shall apply sanctions, which may
31-9 include removal of accreditation, loss of education excellence
31-10 <foundation school> funds, or both.
31-11 SECTION 35. Section 21.506(b), Education Code, is amended to
31-12 read as follows:
31-13 (b) Except as provided by Subsection (c) of this section,
31-14 contracts for residential placements when approved may be paid for
31-15 from a combination of federal, state, and local funds. The local
31-16 share of the total contract cost per pupil is that portion of the
31-17 local tax effort (total dollars generated by debt service and
31-18 maintenance taxes) which exceeds the amount generated by the
31-19 minimum tax rate prescribed by Section 16.252(a) <district's local
31-20 fund assignment under Section 16.252>, divided by the average daily
31-21 attendance in the district. If the contract involves a private
31-22 facility, the state share of the total contract cost is that which
31-23 remains after subtracting the local share. If the contract
31-24 involves a public facility, the state share is that which remains
31-25 after subtracting the local share from that portion of the contract
31-26 which involves the costs of instructional and related services.
31-27 SECTION 36. Section 21.507(d), Education Code, is amended to
32-1 read as follows:
32-2 (d) Each school district and state institution shall provide
32-3 to the commissioner of education the necessary information to
32-4 determine the district's share under this section. The information
32-5 must be reported to the commissioner on or before a date set by
32-6 rule of the State Board of Education. After determining the amount
32-7 of a district's share for all students for which the district is
32-8 responsible, the commissioner shall deduct that amount from the
32-9 payments of education excellence <foundation school> funds payable
32-10 to the district. Each deduction shall be in the same percentage of
32-11 the total amount of the district's share as the percentage of the
32-12 total education equalization excellence <foundation school> fund
32-13 entitlement being paid to the district at the time of the
32-14 deduction, except that the amount of any deduction may be modified
32-15 to make necessary adjustments or to correct errors. The
32-16 commissioner shall provide for remitting the amount deducted to the
32-17 appropriate school at the same time at which the remaining funds
32-18 are distributed to the school district.
32-19 SECTION 37. Section 21.939(d), Education Code, is amended to
32-20 read as follows:
32-21 (d) If a civil penalty is imposed against a school district
32-22 under this section, the commissioner of education shall reduce the
32-23 amount allocated to the district from the education excellence
32-24 <foundation school> fund in an amount equal to the compensation
32-25 paid by the district to the person employed in violation of this
32-26 section.
32-27 SECTION 38. Section 22.08(i), Education Code, is amended to
33-1 read as follows:
33-2 (i) The trustees of a common or common consolidated school
33-3 district shall supply all information required of them by the
33-4 Central Education Agency for the proper operation of the education
33-5 excellence <foundation school> program within the district or for
33-6 carrying out the objectives of the Central Education Agency.
33-7 SECTION 39. Section 23.998, Education Code, is amended to
33-8 read as follows:
33-9 Sec. 23.998. Cost. The cost of incentive aid payments
33-10 hereby authorized shall be paid from the education equalization
33-11 excellence fund <Foundation School Fund>. Such costs shall be
33-12 considered and included by the education equalization excellence
33-13 fund budget committee <Foundation School Fund Budget Committee> in
33-14 estimating the funds needed for purposes of the education
33-15 excellence program <Foundation School Program and such incentive
33-16 aid payments>.
33-17 SECTION 40. Sections 26.65(a) and (b), Education Code, are
33-18 amended to read as follows:
33-19 (a) The commissioner of education shall develop and the
33-20 State Board of Education shall adopt a formula for the allocation
33-21 of state funds to a rehabilitation district on a basis similar to
33-22 that provided for independent school districts, except that <no
33-23 local fund assignment shall be charged to> a rehabilitation
33-24 district is not required to provide local funding in the manner
33-25 required of a school district under Section 16.252.
33-26 (b) State funds for the support of a rehabilitation district
33-27 shall be paid from the education equalization excellence
34-1 <foundation school> fund and shall be considered by the education
34-2 equalization excellence fund budget committee <Foundation School
34-3 Fund Budget Committee> in estimating the funds needed for education
34-4 excellence program <Foundation School Program> purposes.
34-5 SECTION 41. Section 28.10(c), Education Code, is amended to
34-6 read as follows:
34-7 (c) Any pupil under 21 years of age on September 1 and who
34-8 has not completed the 12th grade shall be eligible to be counted in
34-9 average daily attendance (ADA) for education excellence program
34-10 <Foundation School Program> purposes by the designated area school
34-11 district in accordance with policies of the Central Education
34-12 Agency. However, where such a pupil attends school in his home
34-13 district a part of a day and attends part of a day in vocational
34-14 class(es) offered only in a designated area vocational school
34-15 district, his ADA shall be counted for the entire day in the home
34-16 district; his state per capita, if any, to remain with the home
34-17 district. Further, such a pupil shall be eligible to be counted by
34-18 the designated area vocational school district for purposes of
34-19 vocational teacher unit allotments pursuant to the policies and
34-20 formulas adopted by the State Board of Education.
34-21 SECTION 42. Section 29.04, Education Code, is amended to
34-22 read as follows:
34-23 Sec. 29.04. Costs to be Borne by State. The total cost of
34-24 operating the schools authorized by this chapter shall be borne
34-25 entirely by the state and shall be paid from the education
34-26 equalization excellence fund <Foundation School Program Fund>.
34-27 Such costs shall be considered annually by the education
35-1 equalization excellence fund budget committee <Foundation School
35-2 Fund Budget Committee> and included in estimating the funds needed
35-3 for purposes of the education excellence program <Foundation School
35-4 Program>. No part of the operating costs herein provided for shall
35-5 be charged to any of the school districts of this state.
35-6 SECTION 43. Sections 30.83(b) and (c), Education Code, are
35-7 amended to read as follows:
35-8 (b) Personnel authorized under the education excellence
35-9 program <Foundation School Program> employed in the state
35-10 facilities pursuant to this section shall receive as a minimum
35-11 salary the monthly salary rate specified in Chapter 16 <of the
35-12 Texas Education Code, as amended>; provided, however, such
35-13 personnel may be paid, from funds appropriated to the respective
35-14 state facilities for delinquent or dependent and neglected children
35-15 or the mentally retarded, salary rates in excess of the minimum
35-16 amounts specified in Chapter 16 <of the Texas Education Code, as
35-17 amended>, but such salary rates shall never exceed the rates of pay
35-18 for like positions in the public schools of the adjacent school
35-19 district or districts.
35-20 (c) The commissioner of education, with the assistance of
35-21 the comptroller of public accounts, shall determine the amount that
35-22 the schools governed by this section would have received from the
35-23 available school fund if H.B. No. 72, Acts of the 68th Legislature,
35-24 2nd Called Session, 1984, had not transferred statutorily dedicated
35-25 taxes from the available school fund to the foundation school fund.
35-26 That amount, minus any amount the schools do receive from the
35-27 available school fund, shall be set apart as a separate account in
36-1 the education equalization excellence <foundation school> fund and
36-2 appropriated to those schools for educational purposes.
36-3 SECTION 44. Section 35.024(c), Education Code, is amended to
36-4 read as follows:
36-5 (c) The Central Education Agency shall develop and
36-6 distribute study guides to assist parents in providing assistance
36-7 during the period that school is recessed for summer to students
36-8 who do not perform satisfactorily on one or more parts of an
36-9 assessment instrument administered under this subchapter. <The
36-10 commissioner of education shall retain a portion of the total
36-11 amount of funds allotted under Section 16.152(a) that the
36-12 commissioner considers appropriate to finance the development and
36-13 distribution of the study guides and shall reduce each district's
36-14 allotment proportionately.>
36-15 SECTION 45. Sections 74.066(a) and (b), Education Code, are
36-16 amended to read as follows:
36-17 (a) To provide for the continuance of educational programs
36-18 for persons who are inpatients and outpatients at The University of
36-19 Texas Medical Branch at Galveston and for students in the Moody
36-20 State School for Cerebral Palsied Children, the commissioner of
36-21 education shall develop and the State Board of Education shall
36-22 adopt a formula for the allocation of state special education funds
36-23 on a basis similar to that provided for independent school
36-24 districts, except that <no local fund assignment shall be charged
36-25 to> the schools are not required to provide local funding in the
36-26 manner required of a school district under Section 16.252.
36-27 (b) State funds for the support of the special school and
37-1 the Moody State School shall be paid from the education
37-2 equalization excellence <foundation school> fund and shall be
37-3 considered by the education equalization excellence fund budget
37-4 committee <Foundation School Fund Budget Committee> in estimating
37-5 the funds needed for education excellence program <Foundation
37-6 School Program> purposes.
37-7 SECTION 46. Section 105.95(e), Education Code, is amended to
37-8 read as follows:
37-9 (e) The academy is not subject to the provisions of this
37-10 code<,> or to the rules of the Central Education Agency<,>
37-11 regulating public schools, except that:
37-12 (1) professional employees of the academy are entitled
37-13 to the limited liability of an employee under Section 21.905 or
37-14 21.912 <or 21.914> of this code;
37-15 (2) a student's attendance at the academy satisfies
37-16 compulsory school attendance requirements; and
37-17 (3) for each student enrolled, the academy is entitled
37-18 to state funds <allotments from the foundation school program>
37-19 under Chapter 16 of this code as if the academy were a school
37-20 district<, except> that imposes an ad valorem tax at the minimum
37-21 rate prescribed by Section 16.252(a) <the academy has a local share
37-22 applied that is equivalent to the local share assignment of the
37-23 Denton Independent School District>.
37-24 SECTION 47. Section 317.005(f), Government Code, is amended
37-25 to read as follows:
37-26 (f) The governor or board may adopt an order under this
37-27 section withholding or transferring any portion of the total amount
38-1 appropriated to finance the education excellence <foundation
38-2 school> program for a fiscal year. The governor or board may not
38-3 adopt such an order if it would result in an allocation of money to
38-4 the education excellence <between particular programs or statutory
38-5 allotments under the foundation school> program contrary to the
38-6 statutory proration formula provided by Section 16.254(d) <(h)>,
38-7 Education Code. The governor or board may transfer an amount to
38-8 the total amount appropriated to finance the education excellence
38-9 <foundation school> program for a fiscal year <and may increase the
38-10 basic allotment. The governor or board may adjust allocations of
38-11 amounts between particular programs or statutory allotments under
38-12 the foundation school program> only for the purpose of conforming
38-13 the allocations to actual pupil enrollments or attendance.
38-14 SECTION 48. Sections 403.093(d) and (h), Government Code,
38-15 are amended to read as follows:
38-16 (d) The comptroller shall transfer from the general revenue
38-17 fund to the education equalization excellence <foundation school>
38-18 fund an amount of money necessary to fund the education excellence
38-19 <foundation school> program as provided by Chapter 16, Education
38-20 Code. The comptroller shall make the transfers in installments as
38-21 necessary to comply with Section 16.260, Education Code. An
38-22 installment must be made not earlier than two days before the date
38-23 an installment to school districts is required by Section 16.260,
38-24 Education Code, and must not exceed the amount necessary for that
38-25 payment.
38-26 (h) Notwithstanding any other provision of this section, the
38-27 comptroller may not transfer the revenue from occupation taxes that
39-1 the comptroller would transfer in August 1995 to the education
39-2 equalization excellence <foundation school> fund before September
39-3 1, 1995. This subsection expires September 15, 1995.
39-4 SECTION 49. Section 466.355(b), Government Code, is amended
39-5 to conform to Section 1, Chapter 25, and Section 27, Chapter 284,
39-6 Acts of the 73rd Legislature, Regular Session, 1993, and is amended
39-7 to read as follows:
39-8 (b) Money in the state lottery account may be used only for
39-9 the following purposes and shall be distributed as follows:
39-10 (1) the payment of prizes to the holders of winning
39-11 tickets;
39-12 (2) the payment of costs incurred in the operation and
39-13 administration of the lottery, including any fees received by a
39-14 lottery operator, provided that the costs incurred in a fiscal
39-15 biennium may not exceed an amount equal to 15 percent of the gross
39-16 revenue accruing from the sale of tickets in that biennium;
39-17 (3) the establishment of a pooled bond fund, lottery
39-18 prize reserve fund, unclaimed prize fund, and prize payment account
39-19 <transfer of amounts to the state lottery stabilization fund as
39-20 provided by Section 466.356>; and
39-21 (4) the balance, after creation of a reserve
39-22 sufficient to pay the amounts needed or estimated to be needed
39-23 under <provided by> Subdivisions (1) through (3) <and (2)>, to be
39-24 transferred to the education equalization excellence <unobligated
39-25 portion of the general revenue> fund, on or before the 15th day of
39-26 each month.
39-27 SECTION 50. Section 825.405(b), Government Code, is amended
40-1 to read as follows:
40-2 (b) For purposes of this section, the statutory minimum
40-3 salary is the salary provided by Sections 16.056 and 16.058,
40-4 Education Code<, multiplied by the cost of education adjustment
40-5 applicable under Section 16.102, Education Code, to the district in
40-6 which the member is employed>.
40-7 SECTION 51. Section 6.02(b), Tax Code, is amended to read as
40-8 follows:
40-9 (b) A taxing unit that has boundaries extending into two or
40-10 more counties may choose to participate in only one of the
40-11 appraisal districts. In that event, the boundaries of the district
40-12 chosen extend outside the county to the extent of the unit's
40-13 boundaries. To be effective, the choice must be approved by
40-14 resolution of the board of directors of the district chosen. <The
40-15 choice of a school district to participate in a single appraisal
40-16 district does not apply to property annexed to the school district
40-17 under Subchapter C or G, Chapter 36, Education Code, unless:>
40-18 <(1) the school district taxes property other than
40-19 property annexed to the district under Subchapter C or G, Chapter
40-20 36, Education Code, in the same county as the annexed property; or>
40-21 <(2) the annexed property is contiguous to property in
40-22 the school district other than property annexed to the district
40-23 under Subchapter C or G, Chapter 36, Education Code.>
40-24 SECTION 52. Sections 21.01 and 21.02, Tax Code, are amended
40-25 to read as follows:
40-26 Sec. 21.01. Real Property. Real property is taxable by a
40-27 taxing unit if located in the unit on January 1<, except as
41-1 provided by Chapter 36, Education Code>.
41-2 Sec. 21.02. Tangible Personal Property Generally.
41-3 <(a)> Except as provided by <Subsection (b) and> Sections 21.021,
41-4 21.04, and 21.05, tangible personal property is taxable by a taxing
41-5 unit if:
41-6 (1) it is located in the unit on January 1 for more
41-7 than a temporary period;
41-8 (2) it normally is located in the unit, even though it
41-9 is outside the unit on January 1, if it is outside the unit only
41-10 temporarily;
41-11 (3) it normally is returned to the unit between uses
41-12 elsewhere and is not located in any one place for more than a
41-13 temporary period; or
41-14 (4) the owner resides (for property not used for
41-15 business purposes) or maintains his principal place of business in
41-16 this state (for property used for business purposes) in the unit
41-17 and the property is taxable in this state but does not have a
41-18 taxable situs pursuant to Subdivisions (1) through (3) of this
41-19 section.
41-20 <(b) Tangible personal property having taxable situs at the
41-21 same location as real property detached from a school district and
41-22 annexed by another school district under Chapter 36, Education
41-23 Code, is taxable in the tax year in which the detachment and
41-24 annexation occurs by the same school district by which the real
41-25 property is taxable in that tax year under Chapter 36, Education
41-26 Code. For purposes of this subsection and Chapter 36, Education
41-27 Code, tangible personal property has taxable situs at the same
42-1 location as real property detached and annexed under Chapter 36,
42-2 Education Code, if the detachment and annexation of the real
42-3 property, had it occurred before January 1 of the tax year, would
42-4 have changed the taxable situs of the tangible personal property
42-5 determined as provided by Subsection (a) from the school district
42-6 from which the real property was detached to the school district to
42-7 which the real property was annexed.>
42-8 <(c) Tangible personal property has taxable situs in a
42-9 school district that is the result of a consolidation under Chapter
42-10 36, Education Code, in the year in which the consolidation occurs
42-11 if the property would have had taxable situs in the consolidated
42-12 district in that year had the consolidation occurred before January
42-13 1 of that year.>
42-14 SECTION 53. Sections 26.08(d), (e), and (g), Tax Code, are
42-15 amended to read as follows:
42-16 (d) For purposes of this section, except as provided by
42-17 Subsection (e), the school district rollback tax rate of a school
42-18 district is the sum of:
42-19 (1) the tax rate that, applied to the current total
42-20 value for the district, would impose taxes in an amount that, when
42-21 added to state funds to be distributed to the district under
42-22 Chapters 15 and 16, Education Code, for the school year beginning
42-23 in the current tax year, would provide the same amount of state
42-24 funds and local maintenance and operations taxes per student in
42-25 <weighted> average daily attendance for that school year that was
42-26 available to the district in the preceding year;
42-27 (2) the rate of $0.06; and
43-1 (3) the district's current debt rate.
43-2 (e) In the first year in which a school district that is the
43-3 product of the consolidation of two or more whole school districts
43-4 adopts a tax, the school district rollback tax rate for the
43-5 consolidated district is the sum of:
43-6 (1) the tax rate that, applied to the current total
43-7 value for the district, would impose taxes in an amount that, when
43-8 added to state funds to be distributed to the district under
43-9 Chapters 15 and 16, Education Code, for the school year beginning
43-10 in the current tax year, would provide the same amount of state
43-11 funds and local maintenance and operations taxes per student in
43-12 <weighted> average daily attendance for that school year that was
43-13 available to the component district in the preceding year for which
43-14 that amount was greater than for any other component district;
43-15 (2) the rate of $0.06; and
43-16 (3) the consolidated district's current debt rate.
43-17 (g) For purposes of <In> this section, average daily
43-18 attendance is computed as provided by Section 16.006 <"weighted
43-19 students in average daily attendance" has the meaning assigned by
43-20 Section 16.302>, Education Code.
43-21 SECTION 54. Section 3.03, State Purchasing and General
43-22 Services Act (Article 601b, Vernon's Texas Civil Statutes), is
43-23 amended to read as follows:
43-24 Sec. 3.03. Purchase of Motor Vehicles for School Districts.
43-25 The commission shall purchase all motor vehicles used for
43-26 transporting school children, including buses, bus chassis, and bus
43-27 bodies, tires, and tubes, for school districts participating in the
44-1 education excellence program <Foundation School Program> as
44-2 provided by Subchapter F, Chapter 21, <Texas> Education Code. All
44-3 purchases must comply with the alternative fuels requirements
44-4 specified by Subchapter F, Chapter 21, <Texas> Education Code.
44-5 SECTION 55. (a) The following provisions of the Education
44-6 Code are repealed:
44-7 (1) Sections 11.86(h), 11.2092, 13.117(e), 16.002,
44-8 16.008, 16.2541, 16.256(e) and (f), 19.027(f) and (g), 20.09,
44-9 21.112(m), 21.172(b), 21.182(f), 21.513, 21.792, and 35.031;
44-10 (2) Section 16.007(c), as amended by Chapter 520, Acts
44-11 of the 73rd Legislature, Regular Session, 1993;
44-12 (3) Subchapter D, Chapter 14;
44-13 (4) Subchapters C, D, and H, Chapter 16; and
44-14 (5) Chapter 36.
44-15 (b) Section 322.008(b), Government Code, is repealed.
44-16 (c) Section 466.356, Government Code, is repealed to conform
44-17 to Section 2, Chapter 25, Acts of the 73rd Legislature, Regular
44-18 Session, 1993.
44-19 (d) The following sections of the Tax Code are repealed:
44-20 (1) 6.02(g) and 6.03(m); and
44-21 (2) 25.25(h), as added by Chapter 347, Acts of the
44-22 73rd Legislature, Regular Session, 1993.
44-23 SECTION 56. The investment capital fund created under
44-24 Section 11.2092, Education Code, is abolished, and the comptroller
44-25 shall transfer the balance in that fund on the effective date of
44-26 this Act to the education equalization excellence fund created
44-27 under Section 16.253, Education Code, as added by this Act.
45-1 SECTION 57. This Act applies beginning with the 1995-1996
45-2 school year.
45-3 SECTION 58. The importance of this legislation and the
45-4 crowded condition of the calendars in both houses create an
45-5 emergency and an imperative public necessity that the
45-6 constitutional rule requiring bills to be read on three several
45-7 days in each house be suspended, and this rule is hereby suspended,
45-8 and that this Act take effect and be in force from and after its
45-9 passage, and it is so enacted.