By Bivins S.B. No. 5
74R4240 ESH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to state assistance in financing public school facilities.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. The heading to Subchapter I, Chapter 16,
1-5 Education Code, is amended to read as follows:
1-6 SUBCHAPTER I. SCHOOL FACILITY PROGRAM
1-7 <CAPITAL OUTLAY AND DEBT SERVICE>
1-8 SECTION 2. Subchapter I, Chapter 16, Education Code, is
1-9 amended by adding Section 16.403 to read as follows:
1-10 Sec. 16.403. SCHOOL FACILITIES ALLOTMENT. (a) Each school
1-11 district is guaranteed a specified amount per student in state and
1-12 local funds for each cent of tax effort, up to the maximum rate
1-13 under Subsection (b), to pay principal and interest on eligible
1-14 bonds. The amount of state support is determined by the formula:
1-15 where:
1-16 "GYA" is the guaranteed yield amount of state funds allocated
1-17 to the district;
1-18 "FYL" is the dollar amount guaranteed level of state and
1-19 local funds per student per cent of tax effort, which is $28 or a
1-20 greater amount for any year provided by appropriation;
1-21 "ADA" is the number of students in average daily attendance
1-22 in the district;
1-23 "BTR" is the district's bond tax rate for the current year;
1-24 and
2-1 "DPV" is the district's taxable value of property as
2-2 determined under Section 11.86.
2-3 (b) The bond tax rate under Subsection (a) may not exceed
2-4 the lesser of:
2-5 (1) the rate necessary for the current year, using
2-6 both state and local money, to make payments of principal and
2-7 interest on the bonds for which the tax is pledged; or
2-8 (2) $0.25 per $100 of valuation.
2-9 (c) To be eligible to be paid with state and local funds
2-10 under this section, bonds must:
2-11 (1) except as provided by Subsection (d), be issued
2-12 after September 1, 1995;
2-13 (2) be guaranteed by the permanent school fund as
2-14 provided by Subchapter E, Chapter 20; and
2-15 (3) mature not earlier than 10 years after the date of
2-16 issuance.
2-17 (d) Bonds issued before September 1, 1995, are eligible to
2-18 be paid with state and local funds under this section if the school
2-19 district issuing the bonds provides to the commissioner of
2-20 education a written statement from each holder of the bonds that
2-21 states that the holder agrees that the bonds may be repaid with
2-22 state and local funds under this section. A statement under this
2-23 subsection is part of the bond covenants for the bonds to which it
2-24 applies.
2-25 (e) A district may use state funds received under this
2-26 section only to pay the principal of, interest on, and issuance
2-27 costs of the bonds for which the district received the funds.
3-1 (f) The board of trustees and voters of a school district
3-2 shall determine district needs concerning construction,
3-3 acquisition, renovation, or improvement of school facilities.
3-4 (g) If a school facility financed by bonds paid with state
3-5 and local funds under this section is sold before the bonds are
3-6 fully paid, the school district shall remit to the commissioner of
3-7 education, for deposit in the foundation school fund, an amount
3-8 equal to the district's net proceeds from the sale multiplied by a
3-9 percentage determined by dividing the amount of state funds under
3-10 this section used to pay principal and interest on the bonds by the
3-11 total amount of principal and interest paid on the bonds with funds
3-12 other than the proceeds of the sale. In this subsection, "net
3-13 proceeds" means the difference between the total amount received
3-14 from the sale less:
3-15 (1) the amount necessary to fully pay outstanding
3-16 principal and interest on the bonds; and
3-17 (2) the school district's costs of the sale, as
3-18 approved by the commissioner of education.
3-19 SECTION 3. Section 16.002(b), Education Code, is amended to
3-20 read as follows:
3-21 (b) The Foundation School Program consists of two tiers to
3-22 provide for the purposes specified by Subsection (a) of this
3-23 section. The first tier guarantees sufficient financing for all
3-24 school districts to provide a basic program of education that meets
3-25 accreditation and other legal standards. The second tier provides
3-26 a guaranteed yield system of financing to provide all school
3-27 districts with substantially equal access to funds to provide an
4-1 enriched program and additional funds for facilities. The
4-2 Foundation School Program includes a guaranteed yield system of
4-3 financing to provide all school districts with substantially equal
4-4 access to funds for facilities.
4-5 SECTION 4. Section 16.251(a), Education Code, is amended to
4-6 read as follows:
4-7 (a) The sum of the basic allotment under Subchapter C and
4-8 the special allotments under Subchapter D, computed in accordance
4-9 with this chapter, constitute the tier one allotments. The sum of
4-10 the tier one allotments and the guaranteed yield allotments under
4-11 Subchapters <Subchapter> H and I, computed in accordance with this
4-12 chapter, constitute the total cost of the Foundation School
4-13 Program.
4-14 SECTION 5. Sections 16.254(a), (c), and (h), Education Code,
4-15 are amended to read as follows:
4-16 (a) For each school year the commissioner of education shall
4-17 determine:
4-18 (1) the amount of money to which a school district is
4-19 entitled under Subchapters C and D;
4-20 (2) the amount of money to which a school district is
4-21 entitled under Subchapter H;
4-22 (3) the amount of money allocated to the district
4-23 under Subchapter I;
4-24 (4) the amount of money allocated to the district from
4-25 the available school fund;
4-26 (5) <(4)> the amount of each district's tier one local
4-27 share under Section 16.252; <and>
5-1 (6) <(5)> the amount of each district's tier two local
5-2 share under Section 16.302; and
5-3 (7) the amount of each district's facilities program
5-4 local share under Section 16.403 <16.303>.
5-5 (c) Each school district is entitled to an amount equal to
5-6 the difference for that district between the sum of Subsections
5-7 (a)(1), <and> (a)(2), and (a)(3) and the sum of Subsections
5-8 <(a)(3),> (a)(4), <and> (a)(5), (a)(6), and (a)(7).
5-9 (h) If the legislature fails during the regular session to
5-10 enact the transfer and appropriation proposed under Subsection (f)
5-11 and there are not funds available under Subsection (j), the
5-12 commissioner shall reduce the total amount of state funds allocated
5-13 to each district under tiers one and two by an amount determined by
5-14 a method under which the application of the same number of cents of
5-15 increase in tax rate in all districts applied to the taxable value
5-16 of property of each district, as determined under Section 11.86,
5-17 results in a total levy equal to the total reduction. The
5-18 following fiscal year, a district's entitlement under this section
5-19 is increased by an amount equal to the reduction made under this
5-20 subsection. The commissioner may not, under this subsection,
5-21 reduce the amount of state funds allocated to a district under the
5-22 facilities program.
5-23 SECTION 6. Section 16.256(e), Education Code, is amended to
5-24 read as follows:
5-25 (e) The funding elements shall include:
5-26 (1) a basic allotment for the purposes of Section
5-27 16.101 of this code that represents the cost per student of a
6-1 regular education program that meets the basic criteria for an
6-2 accredited program including all mandates of law and regulation;
6-3 (2) adjustments designed to reflect the variation in
6-4 known resource costs and costs of education beyond the control of
6-5 school districts;
6-6 (3) appropriate program cost differentials and other
6-7 funding elements for the programs authorized under Subchapter D of
6-8 this chapter, with the program funding level expressed as dollar
6-9 amounts and as weights applied to the adjusted basic allotment for
6-10 the appropriate year;
6-11 (4) the maximum guaranteed level of qualified state
6-12 and local funds per student for the purposes of Subchapter H of
6-13 this chapter;
6-14 (5) the enrichment and facilities tax rate under
6-15 Subchapter H of this chapter; and
6-16 (6) <the formula elements for the funding formulas for
6-17 capital outlay and debt service under the provision of Subchapter I
6-18 of this chapter; and>
6-19 <(7)> the calculation of weighted students in average
6-20 daily attendance under Section 16.302 of this code.
6-21 SECTION 7. Section 16.401, Education Code, is amended by
6-22 adding Subsection (c) to read as follows:
6-23 (c) Each school district shall provide information regarding
6-24 the district's school facilities to the Central Education Agency
6-25 through the Public Education Information Management System (PEIMS).
6-26 The agency may not obtain information concerning school facilities
6-27 in another manner.
7-1 SECTION 8. Section 20.04(c), Education Code, is amended to
7-2 read as follows:
7-3 (c) If bonds are ever voted in a district pursuant to
7-4 Subsection (b)(1) of this section, then all bonds thereafter
7-5 proposed shall be submitted pursuant to that subsection, and
7-6 Subsection (b)(2) of this section shall not be applicable to such
7-7 district. Except as otherwise provided by this section, no bonds
7-8 shall be issued pursuant to Subsection (b)(1) of this section if
7-9 the aggregate principal amount of tax bond indebtedness of the
7-10 district after such issuance would be in excess of 10 percent of
7-11 the assessed valuation of taxable property in the district
7-12 according to the then last completed and approved ad valorem tax
7-13 rolls of the district. A district may issue bonds resulting in an
7-14 aggregate principal amount of tax bond indebtedness in excess of 10
7-15 percent of the district's assessed valuation if:
7-16 (1) the bonds are issued for the purpose of
7-17 constructing and equipping a replacement for a building lost to
7-18 fire or natural disaster and:<;>
7-19 (A) <(2)> the bonds are issued in an amount
7-20 necessary for that purpose, less the amount paid by insurance
7-21 covering the loss; and
7-22 (B) <(3)> the resulting aggregate principal
7-23 amount of tax bond indebtedness does not exceed 16 percent of the
7-24 district's assessed valuation; or
7-25 (2) the bonds are eligible to be paid with state and
7-26 local funds under Section 16.403 of this code, and the aggregate
7-27 principal amount of tax bond indebtedness after issuance, counting
8-1 only that portion of the bonds to be issued for which the district
8-2 must provide funds under Section 16.403 of this code, does not
8-3 exceed 10 percent of the district's assessed valuation.
8-4 SECTION 9. Section 20.09, Education Code, is amended by
8-5 amending Subsection (a) and adding Subsection (e) to read as
8-6 follows:
8-7 (a) Except as provided by Subsection <Subsections> (c),
8-8 <and> (d), or (e) and unless specifically approved in an election
8-9 called for that purpose, a school district may not impose a total
8-10 tax rate on the $100 valuation of taxable property that exceeds
8-11 $1.50.
8-12 (e) If authorized at an election, a district may exceed the
8-13 tax limitation under Subsection (a) to impose a tax pledged for the
8-14 payment of principal and interest on bonds to be issued for the
8-15 construction, acquisition, renovation, or maintenance of school
8-16 facilities. An election to exceed the tax limitation may be held
8-17 on any date. An election to authorize bonds may include a
8-18 proposition to allow the school district to exceed the tax
8-19 limitation under Subsection (a).
8-20 SECTION 10. Section 20.911, Education Code, is amended to
8-21 read as follows:
8-22 Sec. 20.911. Reimbursement of Fund. (a) If the
8-23 commissioner orders payment from the fund on behalf of a school
8-24 district, he shall direct the comptroller <of public accounts> to
8-25 withhold the amount paid, plus interest, from the first state money
8-26 payable to the school district, other than money to which the
8-27 school district is entitled under Section 16.403. The amount
9-1 withheld shall be deposited to the credit of the fund.
9-2 (b) If the commissioner orders payment from the permanent
9-3 school fund in connection with bonds that were, before default,
9-4 being paid with state and local funds under Section 16.403, the
9-5 commissioner shall:
9-6 (1) withhold under Subsection (a) only that portion of
9-7 the amount paid from the permanent school fund that is
9-8 proportionate to the school district's local share under Section
9-9 16.403; and
9-10 (2) transfer from the foundation school fund to the
9-11 permanent school fund that portion of the amount paid from the
9-12 permanent school fund that is proportionate to the state's share
9-13 under Section 16.403.
9-14 (c) In accordance with the rules of the board, the
9-15 commissioner may authorize reimbursement to the fund with interest
9-16 in a manner other than that provided by this section.
9-17 SECTION 11. This Act takes effect September 1, 1995.
9-18 SECTION 12. The importance of this legislation and the
9-19 crowded condition of the calendars in both houses create an
9-20 emergency and an imperative public necessity that the
9-21 constitutional rule requiring bills to be read on three several
9-22 days in each house be suspended, and this rule is hereby suspended.