By Junell                                       H.B. No. 1797

      75R7105 ESH-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the adjustment for declining property values for a

 1-3     school district above the equalized wealth level.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Sections 41.002(b) and (c), Education Code, are

 1-6     amended to read as follows:

 1-7           (b)  For [Except as provided by Subsection (c), for] purposes

 1-8     of this chapter, the commissioner shall adjust[, by the  amount of

 1-9     the decline,] the taxable values of a school district that

1-10     experiences a decline from the preceding year in the tax base used

1-11     in calculating taxable values that is beyond the control of the

1-12     board of trustees of the district to the extent the decline exceeds

1-13     four percent of the preceding year's taxable values.

1-14           (c)  The commissioner may adjust the taxable values of a

1-15     school district to reflect that portion of a decline described by

1-16     Subsection (b) that is equal to or less than four percent, but [The

1-17     amount of money necessary to replace funds made unavailable to the

1-18     Foundation School Program by operation of Subsection (b) may be

1-19     paid] only if [from] funds are specifically appropriated to replace

1-20     funds made unavailable to the Foundation School Program by the

1-21     adjustment [for  that purpose].  If a sufficient amount of money is

1-22     not appropriated to fully replace funds made unavailable to the

1-23     Foundation School Program by operation of this subsection

1-24     [Subsection (b)], the adjustment to the taxable values of property

 2-1     equal to or  less than four percent [in each district to which

 2-2     Subsection (b) applies] shall be modified proportionately for each

 2-3     district to  the extent necessary [so that the amount of funds made

 2-4     unavailable is equal to the amount appropriated to replace those

 2-5     funds].

 2-6           SECTION 2.  This Act takes effect September 1, 1997.

 2-7           SECTION 3.  The importance of this legislation and the

 2-8     crowded condition of the calendars in both houses create an

 2-9     emergency and an imperative public necessity that the

2-10     constitutional rule requiring bills to be read on three several

2-11     days in each house be suspended, and this rule is hereby suspended.