1-1 AN ACT
1-2 relating to residence homestead school property tax exemptions and
1-3 tax limitations, allocating and dedicating certain state funds for
1-4 education, limiting the increase in school property tax rates, and
1-5 providing for certain additional revenue; making an appropriation.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 ARTICLE 1. SCHOOL FINANCE
1-8 SECTION 1.01. Subchapter A, Chapter 41, Education Code, is
1-9 amended by adding Section 41.0011 to read as follows:
1-10 Sec. 41.0011. COMPUTATION OF WEALTH PER STUDENT FOR
1-11 1997-1998 SCHOOL YEAR. (a) Notwithstanding any other provision of
1-12 this chapter, in computing a school district's wealth per student
1-13 for the 1997-1998 school year, a school district's taxable value of
1-14 property under Subchapter M, Chapter 403, Government Code, is
1-15 determined as if the increase in the homestead exemption under
1-16 Section 1-b(c), Article VIII, Texas Constitution, and the
1-17 additional limitation on tax increases under Section 1-b(d) of that
1-18 article, as proposed by H.J.R. No. 4, 75th Legislature, Regular
1-19 Session, 1997, had been in effect for the 1996 tax year.
1-20 (b) This section expires September 1, 1998.
1-21 SECTION 1.02. Section 41.093, Education Code, is amended to
1-22 read as follows:
1-23 Sec. 41.093. COST. The cost of each credit is an amount
1-24 equal to the greater of:
2-1 (1) the amount of the district's maintenance and
2-2 operations [total] tax revenue per student in weighted average
2-3 daily attendance for the school year for which the contract is
2-4 executed; or
2-5 (2) the amount of the statewide district average of
2-6 maintenance and operations [total] tax revenue per student in
2-7 weighted average daily attendance for the school year preceding the
2-8 school year for which the contract is executed.
2-9 SECTION 1.03. Subchapter E, Chapter 42, Education Code, is
2-10 amended by adding Section 42.2511 to read as follows:
2-11 Sec. 42.2511. COMPUTATION OF STATE AID FOR 1997-1998 SCHOOL
2-12 YEAR; ADDITIONAL STATE AID. (a) Notwithstanding any other
2-13 provision of this chapter, in computing state aid for the 1997-1998
2-14 school year, a school district's taxable value of property under
2-15 Subchapter M, Chapter 403, Government Code, is determined as if the
2-16 increase in the homestead exemption under Section 1-b(c), Article
2-17 VIII, Texas Constitution, and the additional limitation on tax
2-18 increases under Section 1-b(d) of that article, as proposed by
2-19 H.J.R. No. 4, 75th Legislature, Regular Session, 1997, had been in
2-20 effect for the 1996 tax year.
2-21 (b) For the 1997-1998 and 1998-1999 school years, a school
2-22 district is entitled to additional state aid to the extent that
2-23 state aid under this chapter based on the determination of the
2-24 school district's taxable value of property as provided by
2-25 Subsection (a) does not fully compensate the district for ad
2-26 valorem tax revenue that would have been lost due to the increase
2-27 in the homestead exemption and the additional limitation on tax
3-1 increases if the increased exemption and additional limitation had
3-2 been in effect for the 1996 tax year. The commissioner, using
3-3 information provided by the comptroller, shall compute the amount
3-4 of additional state aid to which a district is entitled under this
3-5 subsection. A determination by the commissioner under this
3-6 subsection is final and may not be appealed.
3-7 (c) This section expires September 1, 1999.
3-8 SECTION 1.04. Subtitle I, Title 2, Education Code, is
3-9 amended by adding Chapter 46 to read as follows:
3-10 CHAPTER 46. INSTRUCTIONAL FACILITIES ALLOTMENT
3-11 Sec. 46.001. DEFINITION. In this chapter, "instructional
3-12 facility" means real property, an improvement to real property, or
3-13 a necessary fixture of an improvement to real property that is used
3-14 predominantly for teaching the curriculum required under Section
3-15 28.002.
3-16 Sec. 46.002. RULES. (a) The commissioner may adopt rules
3-17 for the administration of this chapter.
3-18 (b) The commissioner's rules may limit the amount of an
3-19 allotment under this chapter that is to be used to construct,
3-20 acquire, renovate, or improve an instructional facility that may
3-21 also be used for noninstructional or extracurricular activities.
3-22 Sec. 46.003. SCHOOL FACILITIES ALLOTMENT. (a) For each
3-23 year, except as provided by Sections 46.005 and 46.006, a school
3-24 district is guaranteed a specified amount per student in state and
3-25 local funds for each cent of tax effort, up to the maximum rate
3-26 under Subsection (b), to pay the principal of and interest on
3-27 eligible bonds issued to construct, acquire, renovate, or improve
4-1 an instructional facility. The amount of state support is
4-2 determined by the formula:
4-3 FYA = (FYL X ADA X BTR X 100) - (BTR X (DPV/100))
4-4 where:
4-5 "FYA" is the guaranteed facilities yield amount of state
4-6 funds allocated to the district for the year;
4-7 "FYL" is the dollar amount guaranteed level of state and
4-8 local funds per student per cent of tax effort, which is $28 or a
4-9 greater amount for any year provided by appropriation;
4-10 "ADA" is the number of students in average daily attendance,
4-11 as determined under Section 42.005, in the district;
4-12 "BTR" is the district's bond tax rate for the current year,
4-13 which is determined by dividing the amount of taxes budgeted to be
4-14 collected by the district for payment of eligible bonds by the
4-15 quotient of the district's taxable value of property as determined
4-16 under Subchapter M, Chapter 403, Government Code, divided by 100;
4-17 and
4-18 "DPV" is the district's taxable value of property as
4-19 determined under Subchapter M, Chapter 403, Government Code.
4-20 (b) The bond tax rate under Subsection (a) may not exceed
4-21 the rate that would be necessary for the current year, using state
4-22 funds under Subsection (a), to make payments of principal and
4-23 interest on the bonds for which the tax is pledged.
4-24 (c) To enable the district to collect local funds sufficient
4-25 to pay the district's share of the debt service, a district may
4-26 levy a bond tax at a rate higher than the maximum rate for which it
4-27 may receive state assistance.
5-1 (d) Bonds are eligible to be paid with state and local funds
5-2 under this section if:
5-3 (1) taxes to pay the principal of and interest on the
5-4 bonds were first levied in the 1997-1998 school year or a later
5-5 school year; and
5-6 (2) the bonds do not have a weighted average maturity
5-7 of less than eight years.
5-8 (e) A district may use state funds received under this
5-9 section only to pay the principal of and interest on the bonds for
5-10 which the district received the funds.
5-11 (f) The board of trustees and voters of a school district
5-12 shall determine district needs concerning construction,
5-13 acquisition, renovation, or improvement of instructional
5-14 facilities.
5-15 (g) To receive state assistance under this chapter, a school
5-16 district must apply to the commissioner in accordance with rules
5-17 adopted by the commissioner before issuing bonds that will be paid
5-18 with state assistance. Until the bonds are fully paid or the
5-19 instructional facility is sold:
5-20 (1) a school district is entitled to continue
5-21 receiving state assistance without reapplying to the commissioner;
5-22 and
5-23 (2) the guaranteed level of state and local funds per
5-24 student per cent of tax effort applicable to the bonds may not be
5-25 reduced below the level provided for the year in which the bonds
5-26 were issued.
5-27 Sec. 46.004. LEASE-PURCHASE AGREEMENTS. (a) A district may
6-1 receive state assistance in connection with a lease-purchase
6-2 agreement concerning an instructional facility. For purposes of
6-3 this chapter:
6-4 (1) taxes levied for purposes of maintenance and
6-5 operations that are necessary to pay a district's share of the
6-6 payments under a lease-purchase agreement for which the district
6-7 receives state assistance under this chapter are considered to be
6-8 bond taxes; and
6-9 (2) payments under a lease-purchase agreement are
6-10 considered to be payments of principal of and interest on bonds.
6-11 (b) Section 46.003(b) applies to taxes levied to pay a
6-12 district's share of the payments under a lease-purchase agreement
6-13 for which the district receives state assistance under this
6-14 chapter.
6-15 (c) A lease-purchase agreement must be for a term of at
6-16 least eight years to be eligible to be paid with state and local
6-17 funds under this chapter.
6-18 Sec. 46.005. LIMITATION ON GUARANTEED AMOUNT. The
6-19 guaranteed amount of state and local funds for a new project that a
6-20 district may be awarded in any state fiscal biennium under Section
6-21 46.003 for a school district may not exceed the lesser of:
6-22 (1) the amount the actual debt service payments the
6-23 district makes in the biennium in which the bonds are issued; or
6-24 (2) the greater of:
6-25 (A) $100,000; or
6-26 (B) the product of the number of students in
6-27 average daily attendance in the district multiplied by $250.
7-1 Sec. 46.006. SHORTAGE OR EXCESS OF FUNDS APPROPRIATED FOR
7-2 NEW PROJECTS. (a) If the total amount appropriated for a year for
7-3 new projects is less than the amount of money to which school
7-4 districts applying for state assistance are entitled for that year,
7-5 the commissioner shall rank each school district applying by wealth
7-6 per student. For purposes of this section, a district's wealth per
7-7 student is reduced by 10 percent for each state fiscal biennium in
7-8 which the district did not receive assistance under this chapter.
7-9 The commissioner shall adjust the rankings after making the
7-10 reductions in wealth per student required by this subsection.
7-11 (b) Beginning with the district with the lowest adjusted
7-12 wealth per student that has applied for state assistance for the
7-13 year, the commissioner shall award state assistance to districts
7-14 that have applied for state assistance in ascending order of
7-15 adjusted wealth per student. The commissioner shall award the full
7-16 amount of state assistance to which a district is entitled under
7-17 this chapter, except that the commissioner may award less than the
7-18 full amount to the last district for which any funds are available.
7-19 (c) Any amount appropriated for the first year of a fiscal
7-20 biennium that is not awarded to a school district may be used to
7-21 provide assistance in the following fiscal year.
7-22 (d) In this section, "wealth per student" means a school
7-23 district's taxable value of property as determined under Subchapter
7-24 M, Chapter 403, Government Code, divided by the district's average
7-25 daily attendance as determined under Section 42.005.
7-26 Sec. 46.007. REFUNDING BONDS. A school district may use
7-27 state funds received under this chapter to pay the principal of and
8-1 interest on refunding bonds that:
8-2 (1) are issued to refund bonds eligible under Section
8-3 46.003;
8-4 (2) do not have a final maturity date later than the
8-5 final maturity date of the bonds being refunded;
8-6 (3) may not be called for redemption earlier than the
8-7 earliest call date of the bonds being refunded; and
8-8 (4) result in a present value savings, which is
8-9 determined by computing the net present value of the difference
8-10 between each scheduled payment on the original bonds and each
8-11 scheduled payment on the refunding bonds. The present value
8-12 savings shall be computed at the true interest cost of the
8-13 refunding bonds.
8-14 Sec. 46.008. STANDARDS. The commissioner shall establish
8-15 standards for adequacy of school facilities. The standards must
8-16 include requirements related to space, educational adequacy, and
8-17 construction quality. All new facilities constructed after
8-18 September 1, 1998, must meet the standards to be eligible to be
8-19 financed with state or local tax funds.
8-20 Sec. 46.009. PAYMENT OF SCHOOL FACILITIES ALLOTMENTS. (a)
8-21 For each school year, the commissioner shall determine the amount
8-22 of money to which each school district is entitled under this
8-23 chapter.
8-24 (b) If the amount appropriated for purposes of this chapter
8-25 for a year is less than the total amount determined under
8-26 Subsection (a) for that year, the commissioner shall:
8-27 (1) transfer from the Foundation School Program to the
9-1 instructional facilities program the amount by which the total
9-2 amount determined under Subsection (a) exceeds the amount
9-3 appropriated; and
9-4 (2) reduce each district's foundation school fund
9-5 allocations in the manner provided by Section 42.253.
9-6 (c) Warrants for payments under this chapter shall be
9-7 approved and transmitted to school district treasurers or
9-8 depositories in the same manner as warrants for payments under
9-9 Chapter 42.
9-10 (d) As soon as practicable after September 1 of each year,
9-11 the commissioner shall distribute to each school district the
9-12 amount of state assistance under this chapter to which the
9-13 commissioner has determined the district is entitled for the school
9-14 year. The district shall deposit the money in the interest and
9-15 sinking fund for the bonds for which the assistance is received and
9-16 shall adopt a tax rate for purposes of debt service that takes into
9-17 account the balance of the interest and sinking fund.
9-18 (e) Section 42.258 applies to payments under this chapter.
9-19 (f) If a school district would have received a greater
9-20 amount under this chapter for the applicable school year using the
9-21 adjusted value determined under Section 42.257, the commissioner
9-22 shall add the difference between the adjusted value and the amount
9-23 the district received under this chapter to subsequent
9-24 distributions to the district under this chapter.
9-25 Sec. 46.010. PROJECTS BY MORE THAN ONE DISTRICT. If two or
9-26 more districts apply for state assistance in connection with a
9-27 joint project at a single location, each district is entitled to a
10-1 guaranteed facilities yield amount of state and local funds that is
10-2 20 percent higher than the amount to which the district would
10-3 otherwise be entitled under Section 46.005.
10-4 Sec. 46.011. SALE OF INSTRUCTIONAL FACILITY FINANCED WITH
10-5 INSTRUCTIONAL FACILITIES ALLOTMENT. (a) If an instructional
10-6 facility financed by bonds paid with state and local funds under
10-7 this chapter is sold before the bonds are fully paid, the school
10-8 district shall send to the comptroller an amount equal to the
10-9 district's net proceeds from the sale multiplied by a percentage
10-10 determined by dividing the amount of state funds under this
10-11 subchapter used to pay the principal of and interest on the bonds
10-12 by the total amount of principal and interest paid on the bonds
10-13 with funds other than the proceeds of the sale.
10-14 (b) In this section, "net proceeds" means the difference
10-15 between the total amount received from the sale less:
10-16 (1) the amount necessary to fully pay the outstanding
10-17 principal of and interest on the bonds; and
10-18 (2) the school district's costs of the sale, as
10-19 approved by the commissioner.
10-20 SECTION 1.05. Section 21.401, Education Code, is amended by
10-21 adding Subsections (a-3) and (a-4) and amending Subsection (b-1) to
10-22 read as follows:
10-23 (a-3) For the 1997-1998 school year, an educator employed
10-24 under a 10-month contract must provide a minimum of 186 days of
10-25 service. This subsection expires September 1, 1998.
10-26 (a-4) For the 1998-1999 school year, an educator employed
10-27 under a 10-month contract must provide a minimum of 187 days of
11-1 service. This subsection expires September 1, 1999.
11-2 (b-1) Subsection (b) applies beginning with the 1999-2000
11-3 [1997-1998] school year. This subsection expires January 1, 2000
11-4 [1998].
11-5 SECTION 1.06. Section 21.402, Education Code, is amended by
11-6 adding Subsections (a-1) and (a-2) to read as follows:
11-7 (a-1) Notwithstanding Subsection (a), for the 1997-1998 and
11-8 1998-1999 school years, "FSP" for purposes of Subsection (a):
11-9 (1) includes amounts appropriated in H.B. No. 4, Acts
11-10 of the 75th Legislature, Regular Session, 1997; and
11-11 (2) does not include the following amounts
11-12 appropriated in H.B. No. 1, Acts of the 75th Legislature, Regular
11-13 Session, 1997:
11-14 (A) amounts appropriated under Rider 73
11-15 following appropriations to the Texas Education Agency in Article
11-16 III of that Act; or
11-17 (B) amounts appropriated under Section 198 of
11-18 Article IX of that Act.
11-19 (a-2) Subsection (a-1) and this subsection expire September
11-20 1, 1999.
11-21 SECTION 1.07. Section 403.302, Government Code, is amended
11-22 by adding Subsections (h) and (i) to read as follows:
11-23 (h) For purposes of Sections 41.0011 and 42.2511, Education
11-24 Code, for the 1996 and 1997 tax years, the comptroller shall
11-25 certify to the commissioner of education:
11-26 (1) a final value for each school district computed on
11-27 a residence homestead exemption under Section 1-b(c), Article VIII,
12-1 Texas Constitution, of $5,000; and
12-2 (2) a final value for each school district computed
12-3 on:
12-4 (A) a residence homestead exemption under
12-5 Section 1-b(c), Article VIII, Texas Constitution, of $15,000; and
12-6 (B) the effect of the additional limitation on
12-7 tax increases under Section 1-b(d), Article VIII, Texas
12-8 Constitution, as proposed by H.J.R. No. 4, 75th Legislature,
12-9 Regular Session, 1997.
12-10 (i) Subsection (h) and this subsection expire September 1,
12-11 1999.
12-12 SECTION 1.08. Subchapter H, Chapter 42, Education Code, is
12-13 repealed.
12-14 SECTION 1.09. (a) For the 1997-1998 and 1998-1999 school
12-15 years, the commissioner of education shall increase the entitlement
12-16 under the Foundation School Program of a district that experiences
12-17 additional salary cost resulting from this Act. The amount of
12-18 additional salary cost shall be computed by determining what the
12-19 district's salary cost for the 1996-1997 school year would have
12-20 been if, for purposes of the minimum salary schedule under Section
12-21 21.402, Education Code, the amount appropriated for the Foundation
12-22 School Program for the 1997-1998 state fiscal year were increased
12-23 by $520 million and comparing that cost and the amount the district
12-24 was actually required to pay under Section 21.402, Education Code.
12-25 For this purpose, the commissioner of education shall use 1996-1997
12-26 employment and salary data as reported through the Public Education
12-27 Information Management System (PEIMS).
13-1 (b) A decision by the commissioner of education under this
13-2 section is final and may not be appealed.
13-3 (c) Notwithstanding any other provision to the contrary, for
13-4 a school district that entered into an employment contract with an
13-5 individual before June 15, 1997, that specifies a salary supplement
13-6 or addition to the salary schedule prescribed by law, the salary
13-7 schedule to which the supplement or addition applies is the salary
13-8 schedule prescribed by Section 21.402, Education Code, as that
13-9 section applied for the 1996-1997 school year, except that an
13-10 individual shall be paid at least the minimum salary prescribed by
13-11 Section 21.402, Education Code, as that section applies for the
13-12 1997-1998 school year, for the step to which the individual is
13-13 assigned. A school district is not required to increase the pay of
13-14 any teacher or full-time librarian except as provided by Section
13-15 21.402, Education Code.
13-16 SECTION 1.10. In addition to other amounts appropriated for
13-17 the fiscal biennium ending August 31, 1999:
13-18 (1) the sum of $520 million is appropriated, for the
13-19 fiscal year ending August 31, 1998, from the general revenue fund
13-20 to the Texas Education Agency for purposes of the Foundation School
13-21 Program; and
13-22 (2) the sum of $520 million, plus the unexpended
13-23 balance of the appropriation described by Subdivision (1) of this
13-24 section, is appropriated, for the fiscal year ending August 31,
13-25 1999, from the general revenue fund to the Texas Education Agency
13-26 for the same purpose.
13-27 SECTION 1.11. The amount appropriated in H.B. No. 1, Acts of
14-1 the 75th Legislature, Regular Session, 1997, to the Texas Education
14-2 Agency for Strategy A.2.2.--Maximizing School Facilities, in
14-3 Article III of that Act, is reduced to $100 million for the fiscal
14-4 year ending August 31, 1998, and to $100 million, plus the
14-5 unexpended balance for the fiscal year 1998, for the fiscal year
14-6 ending August 31, 1999.
14-7 SECTION 1.12. (a) The amount appropriated in H.B. No. 1,
14-8 Acts of the 75th Legislature, Regular Session, 1997, to the Texas
14-9 Education Agency for Strategy A.2.1.--Foundation School Program, in
14-10 Article III of that Act, is increased by $1 million for each year
14-11 of the fiscal biennium ending August 31, 1999, and the basic
14-12 allotment under Section 42.101, Education Code, is increased to
14-13 $2,396.
14-14 (b) The amounts appropriated under Rider 73 following the
14-15 appropriations to the Texas Education Agency in Article III, H.B.
14-16 No. 1, Acts of the 75th Legislature, Regular Session, 1997, to
14-17 provide transition assistance to school districts affected by an
14-18 increase in the minimum salary schedule are reduced by $36 million
14-19 for the fiscal year ending August 31, 1998, and by $31 million for
14-20 the fiscal year ending August 31, 1999.
14-21 (c) The amounts appropriated under Section 198, Article IX,
14-22 H.B. No. 1, Acts of the 75th Legislature, Regular Session, 1997,
14-23 for increases in enrollment growth are increased by $65 million.
14-24 SECTION 1.13. (a) Except as provided by Subsection (b) of
14-25 this section, this article takes effect September 1, 1997.
14-26 (b) Sections 1.01, 1.03, 1.05, 1.06, 1.07, 1.09, 1.10, and
14-27 1.12 of this Act take effect September 1, 1997, but only if the
15-1 constitutional amendment proposed by H.J.R. No. 4, 75th
15-2 Legislature, Regular Session, 1997, is adopted by the voters. If
15-3 the proposed amendment is not adopted, Sections 1.01, 1.03, 1.05,
15-4 1.06, 1.07, 1.09, 1.10, and 1.12 of this Act have no effect.
15-5 ARTICLE 2. PROPERTY TAXES
15-6 SECTION 2.01. Section 11.13(b), Tax Code, is amended to read
15-7 as follows:
15-8 (b) An adult is entitled to exemption from taxation by a
15-9 school district of $15,000 [$5,000] of the appraised value of the
15-10 adult's [his] residence homestead, except that $10,000 of the
15-11 exemption does not apply to an entity operating under former
15-12 Chapter 17, 18, 25, 26, 27, or 28, Education Code, as those
15-13 chapters existed on May 1, 1995, as permitted by Section 11.301,
15-14 Education Code.
15-15 SECTION 2.02. Section 11.26, Tax Code, is amended by
15-16 amending Subsections (a) and (b) and adding Subsections (g) and (h)
15-17 to read as follows:
15-18 (a) The tax officials shall appraise the property to which
15-19 this section applies and calculate taxes as on other property, but
15-20 if the tax so calculated exceeds the limitation imposed by this
15-21 section, the tax imposed is the amount of the tax as limited by
15-22 this section, except [Except] as otherwise provided by this
15-23 section. A [Subsection (b) of this section, a] school district may
15-24 not increase the total annual amount of ad valorem tax it imposes
15-25 on the residence homestead of an individual 65 years or older above
15-26 the amount of the tax it imposed in the first tax year the
15-27 individual qualified that residence homestead for the exemption
16-1 provided by [Subsection (c) of] Section 11.13(c) [11.13 of this
16-2 code]. If the first tax year the individual qualified the
16-3 residence homestead for the exemption provided by Section 11.13(c)
16-4 was a tax year before the 1997 tax year, the amount of the
16-5 limitation provided by this section is the amount of tax the school
16-6 district imposed for the 1996 tax year less an amount equal to the
16-7 amount determined by multiplying $10,000 times the tax rate of the
16-8 school district for the 1997 tax year, plus any 1997 tax
16-9 attributable to improvements made in 1996, other than improvements
16-10 made to comply with governmental regulations or repairs [The tax
16-11 officials shall continue to appraise the property and to calculate
16-12 taxes as on other property, but if the tax so calculated exceeds
16-13 the limitation imposed by this section, the tax imposed is the tax
16-14 imposed in the first year the individual qualified the residence
16-15 homestead for the exemption].
16-16 (b) If an individual makes improvements to the individual's
16-17 [his] residence homestead, other than improvements required to
16-18 comply with governmental requirements or repairs, the school
16-19 district may increase the tax on the homestead in the first year
16-20 the value of the homestead is increased on the appraisal roll
16-21 because of the enhancement of value by the improvements. The
16-22 amount of the tax increase is determined by applying the current
16-23 tax rate to the difference in the assessed value of the homestead
16-24 with the improvements and the assessed value it would have had
16-25 without the improvements. A limitation [The limitations] imposed
16-26 by [Subsection (a) of] this section then applies [apply] to the
16-27 increased amount of tax until more improvements, if any, are made.
17-1 (g) Except as provided by Subsection (b), if an individual
17-2 who receives a limitation on tax increases imposed by this section
17-3 subsequently qualifies a different residence homestead for an
17-4 exemption under Section 11.13, a school district may not impose ad
17-5 valorem taxes on the subsequently qualified homestead in a year in
17-6 an amount that exceeds the amount of taxes the school district
17-7 would have imposed on the subsequently qualified homestead in the
17-8 first year in which the individual receives that exemption for the
17-9 subsequently qualified homestead had the limitation on tax
17-10 increases imposed by this section not been in effect, multiplied by
17-11 a fraction the numerator of which is the total amount of school
17-12 district taxes imposed on the former homestead in the last year in
17-13 which the individual received that exemption for the former
17-14 homestead and the denominator of which is the total amount of
17-15 school district taxes that would have been imposed on the former
17-16 homestead in the last year in which the individual received that
17-17 exemption for the former homestead had the limitation on tax
17-18 increases imposed by this section not been in effect.
17-19 (h) An individual who receives a limitation on tax increases
17-20 under this section and who subsequently qualifies a different
17-21 residence homestead for an exemption under Section 11.13, or an
17-22 agent of the individual, is entitled to receive from the chief
17-23 appraiser of the appraisal district in which the former homestead
17-24 was located a written certificate providing the information
17-25 necessary to determine whether the individual may qualify for a
17-26 limitation on the subsequently qualified homestead under Subsection
17-27 (g) and to calculate the amount of taxes the school district may
18-1 impose on the subsequently qualified homestead.
18-2 SECTION 2.03. Section 26.08, Tax Code, is amended to read as
18-3 follows:
18-4 Sec. 26.08. ELECTION TO RATIFY [LIMIT] SCHOOL TAXES.
18-5 (a) If the governing body of a school district adopts a tax rate
18-6 that exceeds the [sum of the] district's rollback tax [effective
18-7 maintenance] rate, [the rate of $0.08, and the district's current
18-8 debt rate,] the registered voters of the district at an election
18-9 held for that purpose must determine whether to approve the adopted
18-10 [limit the] tax rate [the governing body may adopt for the current
18-11 year to the school district rollback tax rate]. When increased
18-12 expenditure of money by a school district is necessary to respond
18-13 to a disaster, including a tornado, hurricane, flood, or other
18-14 calamity, but not including a drought, that has impacted a school
18-15 district and the governor has requested federal disaster assistance
18-16 for the area in which the school district is located, an election
18-17 is not required under this section to approve [limit] the tax rate
18-18 adopted by the governing body [may adopt] for the year following
18-19 the year in which the disaster occurs.
18-20 (b) The governing body shall order that the [an] election be
18-21 held in the school district on a date not less than 30 or more than
18-22 90 days after the day on which it adopted the tax rate. Section
18-23 41.001, Election Code, does not apply to the election unless a date
18-24 specified by that section falls within the time permitted by this
18-25 section. At the election, the ballots shall be prepared to permit
18-26 voting for or against the proposition: "Approving [Limiting] the
18-27 ad valorem tax rate of $_____ per $100 valuation in (name of school
19-1 district) for the current year, a rate that is $_____ higher per
19-2 $100 valuation than [from (the rate adopted) to (]the school
19-3 district rollback tax rate[)]." The ballot proposition must
19-4 include the adopted tax rate and the difference between that rate
19-5 and the rollback tax rate in the appropriate places.
19-6 (c) If a majority of the votes cast in the election favor
19-7 the proposition, the tax rate for the current year is the rate that
19-8 was adopted by the governing body.
19-9 (d) If [a majority of the votes cast in the election favor]
19-10 the proposition is not approved as provided by Subsection (c), the
19-11 governing body may not adopt a tax rate for the school district for
19-12 the current year that exceeds the school district's [district]
19-13 rollback tax rate [calculated for that year using the following
19-14 formula:]
19-15 [ROLLBACK TAX RATE = (ENROLLMENT ADJUSTMENT) (EFFECTIVE MAINTENANCE
19-16 AND OPERATIONS RATE FOR TAX YEAR) + $0.08 + CURRENT DEBT RATE
19-17 where:]
19-18 [(1) "tax year" denotes amounts used in calculating
19-19 the rollback tax rate in the year immediately preceding the year in
19-20 which the tax increase that initiated the referendum occurred
19-21 rather than the year in which the calculation occurs; and]
19-22 [(2) "enrollment adjustment" is computed by dividing
19-23 the current year's projected fall enrollment, as defined by the
19-24 Texas Education Agency, by last year's enrollment but may not be
19-25 less than 1.0].
19-26 (e) [(d)] For purposes of this section, local tax funds
19-27 dedicated to a junior college district under Section 45.105(e),
20-1 Education Code, shall be eliminated from the calculation of the tax
20-2 rate adopted by the governing body of the school district.
20-3 However, the funds dedicated to the junior college district are
20-4 subject to Section 26.085.
20-5 (f) [(e)] If a school district is certified by the
20-6 commissioner of education under Section 42.251(c), Education Code,
20-7 to have been subject to a reduction in total revenue for the school
20-8 year ending on August 31 of the tax year,[:]
20-9 [(1) the district's effective maintenance and
20-10 operations rate for the tax year is calculated as provided by
20-11 Section 26.012, except that last year's levy is reduced by the
20-12 amount of taxes imposed in the preceding year, if any, to offset
20-13 the amount of the reduction certified by the commissioner; and]
20-14 [(2)] the district's rollback tax rate for the tax
20-15 year [calculated as provided by Section 26.04 or by Subsection (c),
20-16 as applicable,] is increased by the tax rate that, if applied to
20-17 the current total value for the school district, would impose taxes
20-18 in an amount equal to the amount of the reduction certified by the
20-19 commissioner.
20-20 (g) [(f)] In a school district that received distributions
20-21 from an equalization tax imposed under former Chapter 18, Education
20-22 Code, the effective rate of that tax as of the date of the county
20-23 unit system's abolition is added to the [district's effective
20-24 maintenance and operations rate under Subsections (a) and (c) of
20-25 this section in the calculation of the] district's rollback tax
20-26 rate.
20-27 (h) [(i)] For purposes of this section, increases in taxable
21-1 values and tax levies occurring within a reinvestment zone under
21-2 [the provisions of] Chapter 311 (Tax Increment Financing Act), in
21-3 which the district is a participant, shall be eliminated from the
21-4 calculation of the tax rate adopted by the governing body of the
21-5 school district.
21-6 (i) For purposes of this section, the rollback tax rate of a
21-7 school district is the sum of:
21-8 (1) the tax rate that, applied to the current total
21-9 value for the district, would impose taxes in an amount that, when
21-10 added to state funds that would be distributed to the district
21-11 under Chapter 42, Education Code, for the school year beginning in
21-12 the current tax year using that tax rate, would provide the same
21-13 amount of state funds distributed under Chapter 42 and maintenance
21-14 and operations taxes of the district per student in weighted
21-15 average daily attendance for that school year that was available to
21-16 the district in the preceding year;
21-17 (2) the rate of $0.08 per $100 of taxable value; and
21-18 (3) the district's current debt rate.
21-19 (j) For the 1997 tax year, the rollback tax rate is the sum
21-20 of:
21-21 (1) the greater of:
21-22 (A) the rate necessary to impose taxes in an
21-23 amount that would provide the same amount of state and local funds
21-24 per weighted student for maintenance and operations as determined
21-25 under Subsection (i)(1) for the 1997-1998 school year that was
21-26 available to the district in the 1996-1997 school year; or
21-27 (B) the district's nominal maintenance and
22-1 operations tax rate for the 1996 tax year;
22-2 (2) the rate of $0.08 per $100 of taxable value; and
22-3 (3) the district's current debt rate.
22-4 (k) For the 1998 tax year, the rollback tax rate is the sum
22-5 of:
22-6 (1) the greater of:
22-7 (A) the rate necessary to impose taxes in an
22-8 amount that would provide the same amount of state and local funds
22-9 per weighted student for maintenance and operations as determined
22-10 under Subsection (i)(1) for the 1998-1999 school year that was
22-11 available to the district in the 1996-1997 school year; or
22-12 (B) the district's nominal maintenance and
22-13 operations tax rate for the 1996 tax year;
22-14 (2) the amount by which the district's adopted tax
22-15 rate for the 1997 tax year exceeded the sum of Subsections (j)(1)
22-16 and (j)(3) for that tax year;
22-17 (3) the rate of $0.08 per $100 of taxable value; and
22-18 (4) the district's current debt rate.
22-19 (l) This subsection and Subsections (j) and (k) expire
22-20 January 1, 1999.
22-21 SECTION 2.04. (a) Sections 2.01 and 2.02 of this article
22-22 take effect on the date that the constitutional amendment proposed
22-23 by H.J.R. No. 4, 75th Legislature, Regular Session, 1997, takes
22-24 effect, and apply to each tax year that begins on or after January
22-25 1, 1997. If that amendment is not approved by the voters, Sections
22-26 2.01 and 2.02 of this article have no effect.
22-27 (b) Section 2.03 of this article takes effect September 1,
23-1 1997, and applies to the tax rate of a school district that is
23-2 adopted by the governing body of the district on or after that
23-3 date. A school district tax rate adopted before the effective date
23-4 of Section 2.03 of this article for 1997 taxes is void.
23-5 ARTICLE 3. LOTTERY REVENUE
23-6 SECTION 3.01. Section 466.015, Government Code, is amended
23-7 by amending Subsection (c) and adding Subsection (d) to read as
23-8 follows:
23-9 (c) The commission may adopt rules governing the
23-10 establishment and operation of the lottery, including rules
23-11 governing:
23-12 (1) the type of lottery games to be conducted;
23-13 (2) the price of each ticket;
23-14 (3) the number of winning tickets and amount of the
23-15 prize paid on each winning ticket, except that the total amount of
23-16 prizes awarded under this chapter may not exceed the amount
23-17 described in Subsection (d);
23-18 (4) the frequency of the drawing or selection of a
23-19 winning ticket;
23-20 (5) the number and types of locations at which a
23-21 ticket may be sold;
23-22 (6) the method to be used in selling a ticket;
23-23 (7) the use of vending machines or electronic or
23-24 mechanical devices of any kind, other than machines or devices that
23-25 dispense currency or coins as prizes;
23-26 (8) the manner of paying a prize to the holder of a
23-27 winning ticket;
24-1 (9) the investigation of possible violations of this
24-2 chapter or any rule adopted under this chapter;
24-3 (10) the means of advertising to be used for the
24-4 lottery;
24-5 (11) the qualifications of vendors of lottery services
24-6 or equipment;
24-7 (12) the confidentiality of information relating to
24-8 the operation of the lottery, including:
24-9 (A) trade secrets;
24-10 (B) security measures, systems, or procedures;
24-11 (C) security reports;
24-12 (D) bids or other information regarding the
24-13 commission's contracts, if disclosure of the information would
24-14 impair the commission's ability to contract for facilities, goods,
24-15 or services on terms favorable to the commission;
24-16 (E) personnel information unrelated to
24-17 compensation, duties, qualifications, or responsibilities; and
24-18 (F) information obtained by commission security
24-19 officers or investigators;
24-20 (13) the development and availability of a model
24-21 agreement governing the division of a prize among multiple
24-22 purchasers of a winning ticket purchased through a group purchase
24-23 or pooling arrangement;
24-24 (14) the criteria to be used in evaluating bids for
24-25 contracts for lottery facilities, goods, and services; or
24-26 (15) any other matter necessary or desirable as
24-27 determined by the commission, to promote and ensure:
25-1 (A) the integrity, security, honesty, and
25-2 fairness of the operation and administration of the lottery; and
25-3 (B) the convenience of players and holders of
25-4 winning tickets.
25-5 (d) The total amount of lottery prizes that the commission
25-6 may award for all lottery games in any fiscal year may not exceed
25-7 an amount equal to the gross revenue from the sale of tickets in
25-8 that fiscal year multiplied by the percentage amount of lottery
25-9 prizes awarded for all lottery games in fiscal year 1997 as
25-10 determined by the comptroller minus an amount equal to five percent
25-11 of gross lottery revenue for the fiscal year in which the prizes
25-12 are being awarded.
25-13 SECTION 3.02. Section 466.355(b), Government Code, is
25-14 amended to read as follows:
25-15 (b) Money in the state lottery account may be used only for
25-16 the following purposes and shall be distributed as follows:
25-17 (1) the payment of prizes to the holders of winning
25-18 tickets;
25-19 (2) the payment of costs incurred in the operation and
25-20 administration of the lottery, including any fees received by a
25-21 lottery operator, provided that the costs incurred in a fiscal
25-22 biennium may not exceed an amount equal to 15 percent of the gross
25-23 revenue accruing from the sale of tickets in that biennium;
25-24 (3) the establishment of a pooled bond fund, lottery
25-25 prize reserve fund, unclaimed prize fund, and prize payment
25-26 account; and
25-27 (4) the balance, after creation of a reserve
26-1 sufficient to pay the amounts needed or estimated to be needed
26-2 under Subdivisions (1) through (3), to be transferred to the
26-3 foundation school [unobligated portion of the general revenue]
26-4 fund, on or before the 15th day of each month.
26-5 SECTION 3.03. This article takes effect September 1, 1997.
26-6 SECTION 3.04. (a) Except as provided by Subsection (b) of
26-7 this section, the change in law made to Section 466.015, Government
26-8 Code, by this article applies to a ticket sold on or after the
26-9 effective date of this article. A ticket sold before that date is
26-10 governed by the law in effect when the ticket was sold, and that
26-11 law is continued in effect for that purpose.
26-12 (b) In fiscal year 1998, the total amount of lottery prizes
26-13 that the Texas Lottery Commission may award under Section
26-14 466.015(d), Government Code, as added by this article, may not
26-15 exceed an amount equal to the gross revenue from the sale of
26-16 lottery tickets multiplied by the percentage amount of lottery
26-17 prizes awarded for all lottery games in fiscal year 1997 as
26-18 determined by the comptroller minus an amount equal to 4-1/2
26-19 percent of gross lottery revenue for the 1998 fiscal year.
26-20 SECTION 3.05. The change in law made to Section 466.355,
26-21 Government Code, by this article applies only to a transfer from
26-22 the state lottery account made on or after the effective date of
26-23 this article.
26-24 ARTICLE 4. EMERGENCY
26-25 SECTION 4.01. The importance of this legislation and the
26-26 crowded condition of the calendars in both houses create an
26-27 emergency and an imperative public necessity that the
27-1 constitutional rule requiring bills to be read on three several
27-2 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 4 was passed by the House on April
26, 1997, by the following vote: Yeas 94, Nays 49, 2 present, not
voting; that the House refused to concur in Senate amendments to
H.B. No. 4 on May 12, 1997, and requested the appointment of a
conference committee to consider the differences between the two
houses; and that the House adopted the conference committee report
on H.B. No. 4 on May 31, 1997, by a non-record vote; and that the
House adopted H.C.R. No. 342 authorizing certain corrections in
H.B. No. 4 on June 2, 1997, by a non-record vote; passed subject to
the provisions of Article III, Section 49a, of the Constitution of
the State of Texas.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 4 was passed by the Senate, with
amendments, on May 10, 1997, by the following vote: Yeas 22, Nays
8; at the request of the House, the Senate appointed a conference
committee to consider the differences between the two houses; and
that the Senate adopted the conference committee report on H.B. No.
4 on May 31, 1997, by the following vote: Yeas 29, Nays 1; and
that the Senate adopted H.C.R. No. 342 authorizing certain
corrections in H.B. No. 4 on June 2, 1997, by a viva-voce vote;
passed subject to the provisions of Article III, Section 49a, of
the Constitution of the State of Texas.
_______________________________
Secretary of the Senate
I certify that the amounts appropriated in the herein H.B.
No. 4, Regular Session of the 75th Legislature, are within amounts
estimated to be available in the affected fund.
Certified_________________________
__________________________________
Comptroller of Public Accounts
APPROVED: _____________________
Date
_____________________
Governor