By Sadler H.R. No. 1303
75R17392 ESH-D
R E S O L U T I O N
1-1 BE IT RESOLVED by the House of Representatives of the State
1-2 of Texas, 75th Legislature, Regular Session, 1997, That House Rule
1-3 13, Sections 9(a)(1), (2), (3), and (4), Section 9(b)(5), and
1-4 Sections 9(c)(1), (2), (3), and (5), be suspended in part as
1-5 provided by House Rule 13, Section 9(f), to enable the conference
1-6 committee appointed to resolve the differences on House Bill No. 4
1-7 to consider and take action on the following specific matter:
1-8 House Rule 13, Sections 9(a)(1), (2), (3), and (4), Section
1-9 9(b)(5), and Sections 9(c)(1), (2), (3), and (5), are suspended to
1-10 permit the committee to add, change, and delete text and matters
1-11 and to add a complete substitute to H.B. No. 4 to read as follows:
1-12 ARTICLE 1. SCHOOL FINANCE
1-13 SECTION 1.01. Subchapter A, Chapter 41, Education Code, is
1-14 amended by adding Section 41.0011 to read as follows:
1-15 Sec. 41.0011. COMPUTATION OF WEALTH PER STUDENT FOR
1-16 1997-1998 SCHOOL YEAR. (a) Notwithstanding any other provision of
1-17 this chapter, in computing a school district's wealth per student
1-18 for the 1997-1998 school year, a school district's taxable value of
1-19 property under Subchapter M, Chapter 403, Government Code, is
1-20 determined as if the increase in the homestead exemption under
1-21 Section 1-b(c), Article VIII, Texas Constitution, and the
1-22 additional limitation on tax increases under Section 1-b(d) of that
1-23 article, as proposed by H.J.R. No. 4, 75th Legislature, Regular
1-24 Session, 1997, had been in effect for the 1996 tax year.
2-1 (b) This section expires September 1, 1998.
2-2 SECTION 1.02. Section 41.093, Education Code, is amended to
2-3 read as follows:
2-4 Sec. 41.093. COST. The cost of each credit is an amount
2-5 equal to the greater of:
2-6 (1) the amount of the district's maintenance and
2-7 operations [total] tax revenue per student in weighted average
2-8 daily attendance for the school year for which the contract is
2-9 executed; or
2-10 (2) the amount of the statewide district average of
2-11 maintenance and operations [total] tax revenue per student in
2-12 weighted average daily attendance for the school year preceding the
2-13 school year for which the contract is executed.
2-14 SECTION 1.03. Subchapter E, Chapter 42, Education Code, is
2-15 amended by adding Section 42.2511 to read as follows:
2-16 Sec. 42.2511. COMPUTATION OF STATE AID FOR 1997-1998 SCHOOL
2-17 YEAR; ADDITIONAL STATE AID. (a) Notwithstanding any other
2-18 provision of this chapter, in computing state aid for the 1997-1998
2-19 school year, a school district's taxable value of property under
2-20 Subchapter M, Chapter 403, Government Code, is determined as if the
2-21 increase in the homestead exemption under Section 1-b(c), Article
2-22 VIII, Texas Constitution, and the additional limitation on tax
2-23 increases under Section 1-b(d) of that article, as proposed by
2-24 H.J.R. No. 4, 75th Legislature, Regular Session, 1997, had been in
2-25 effect for the 1996 tax year.
2-26 (b) For the 1997-1998 and 1998-1999 school years, a school
2-27 district is entitled to additional state aid to the extent that
3-1 state aid under this chapter based on the determination of the
3-2 school district's taxable value of property as provided by
3-3 Subsection (a) does not fully compensate the district for ad
3-4 valorem tax revenue that would have been lost due to the increase
3-5 in the homestead exemption and the additional limitation on tax
3-6 increases if the increased exemption and additional limitation had
3-7 been in effect for the 1996 tax year. The commissioner, using
3-8 information provided by the comptroller, shall compute the amount
3-9 of additional state aid to which a district is entitled under this
3-10 subsection. A determination by the commissioner under this
3-11 subsection is final and may not be appealed.
3-12 (c) This section expires September 1, 1999.
3-13 SECTION 1.04. Subtitle I, Title 2, Education Code, is
3-14 amended by adding Chapter 46 to read as follows:
3-15 CHAPTER 46. INSTRUCTIONAL FACILITIES ALLOTMENT
3-16 Sec. 46.001. DEFINITION. In this chapter, "instructional
3-17 facility" means real property, an improvement to real property, or
3-18 a necessary fixture of an improvement to real property that is used
3-19 predominantly for teaching the curriculum required under Section
3-20 28.002.
3-21 Sec. 46.002. RULES. (a) The commissioner may adopt rules
3-22 for the administration of this chapter.
3-23 (b) The commissioner's rules may limit the amount of an
3-24 allotment under this chapter that is to be used to construct,
3-25 acquire, renovate, or improve an instructional facility that may
3-26 also be used for noninstructional or extracurricular activities.
3-27 Sec. 46.003. SCHOOL FACILITIES ALLOTMENT. (a) For each
4-1 year, except as provided by Sections 46.005 and 46.006, a school
4-2 district is guaranteed a specified amount per student in state and
4-3 local funds for each cent of tax effort, up to the maximum rate
4-4 under Subsection (b), to pay the principal of and interest on
4-5 eligible bonds issued to construct, acquire, renovate, or improve
4-6 an instructional facility. The amount of state support is
4-7 determined by the formula:
4-8 FYA = (FYL X ADA X BTR X 100) - (BTR X (DPV/100))
4-9 where:
4-10 "FYA" is the guaranteed facilities yield amount of state
4-11 funds allocated to the district for the year;
4-12 "FYL" is the dollar amount guaranteed level of state and
4-13 local funds per student per cent of tax effort, which is $28 or a
4-14 greater amount for any year provided by appropriation;
4-15 "ADA" is the number of students in average daily attendance,
4-16 as determined under Section 42.005, in the district;
4-17 "BTR" is the district's bond tax rate for the current year,
4-18 which is determined by dividing the amount of taxes budgeted to be
4-19 collected by the district for payment of eligible bonds by the
4-20 quotient of the district's taxable value of property as determined
4-21 under Subchapter M, Chapter 403, Government Code; and
4-22 "DPV" is the district's taxable value of property as
4-23 determined under Subchapter M, Chapter 403, Government Code.
4-24 (b) The bond tax rate under Subsection (a) may not exceed
4-25 the rate that would be necessary for the current year, using state
4-26 funds under Subsection (a), to make payments of principal and
4-27 interest on the bonds for which the tax is pledged.
5-1 (c) To enable the district to collect local funds sufficient
5-2 to pay the district's share of the debt service, a district may
5-3 levy a bond tax at a rate higher than the maximum rate for which it
5-4 may receive state assistance.
5-5 (d) Bonds are eligible to be paid with state and local funds
5-6 under this section if:
5-7 (1) taxes to pay the principal of and interest on the
5-8 bonds were first levied in the 1997-1998 school year or a later
5-9 school year; and
5-10 (2) the bonds do not have a weighted average maturity
5-11 of less than eight years.
5-12 (e) A district may use state funds received under this
5-13 section only to pay the principal of and interest on the bonds for
5-14 which the district received the funds.
5-15 (f) The board of trustees and voters of a school district
5-16 shall determine district needs concerning construction,
5-17 acquisition, renovation, or improvement of instructional
5-18 facilities.
5-19 (g) To receive state assistance under this chapter, a school
5-20 district must apply to the commissioner in accordance with rules
5-21 adopted by the commissioner before issuing bonds that will be paid
5-22 with state assistance. Until the bonds are fully paid or the
5-23 instructional facility is sold:
5-24 (1) a school district is entitled to continue
5-25 receiving state assistance without reapplying to the commissioner;
5-26 and
5-27 (2) the guaranteed level of state and local funds per
6-1 student per cent of tax effort applicable to the bonds may not be
6-2 reduced below the level provided for the year in which the bonds
6-3 were issued.
6-4 Sec. 46.004. LEASE-PURCHASE AGREEMENTS. (a) A district may
6-5 receive state assistance in connection with a lease-purchase
6-6 agreement concerning an instructional facility. For purposes of
6-7 this chapter:
6-8 (1) taxes levied for purposes of maintenance and
6-9 operations that are necessary to pay a district's share of the
6-10 payments under a lease-purchase agreement for which the district
6-11 receives state assistance under this chapter are considered to be
6-12 bond taxes; and
6-13 (2) payments under a lease-purchase agreement are
6-14 considered to be payments of principal of and interest on bonds.
6-15 (b) Section 46.003(b) applies to taxes levied to pay a
6-16 district's share of the payments under a lease-purchase agreement
6-17 for which the district receives state assistance under this
6-18 chapter.
6-19 (c) A lease-purchase agreement must be for a term of at
6-20 least eight years to be eligible to be paid with state and local
6-21 funds under this chapter.
6-22 Sec. 46.005. LIMITATION ON GUARANTEED AMOUNT. The
6-23 guaranteed amount of state and local funds for a new project that a
6-24 district may be awarded in any state fiscal biennium under Section
6-25 46.003 for a school district may not exceed the lesser of:
6-26 (1) the amount the actual debt service payments the
6-27 district makes in the biennium in which the bonds are issued; or
7-1 (2) the greater of:
7-2 (A) $100,000; or
7-3 (B) the product of the number of students in
7-4 average daily attendance in the district multiplied by $250.
7-5 Sec. 46.006. SHORTAGE OR EXCESS OF FUNDS APPROPRIATED FOR
7-6 NEW PROJECTS. (a) If the total amount appropriated for a year for
7-7 new projects is less than the amount of money to which school
7-8 districts applying for state assistance are entitled for that year,
7-9 the commissioner shall rank each school district applying by wealth
7-10 per student. For purposes of this section, a district's wealth per
7-11 student is reduced by 10 percent for each state fiscal biennium in
7-12 which the district did not receive assistance under this chapter.
7-13 The commissioner shall adjust the rankings after making the
7-14 reductions in wealth per student required by this subsection.
7-15 (b) Beginning with the district with the lowest adjusted
7-16 wealth per student that has applied for state assistance for the
7-17 year, the commissioner shall award state assistance to districts
7-18 that have applied for state assistance in ascending order of
7-19 adjusted wealth per student. The commissioner shall award the full
7-20 amount of state assistance to which a district is entitled under
7-21 this chapter, except that the commissioner may award less than the
7-22 full amount to the last district for which any funds are available.
7-23 (c) Any amount appropriated for the first year of a fiscal
7-24 biennium that is not awarded to a school district may be used to
7-25 provide assistance in the following fiscal year.
7-26 (d) In this section, "wealth per student" means a school
7-27 district's taxable value of property as determined under Subchapter
8-1 M, Chapter 403, Government Code, divided by the district's average
8-2 daily attendance as determined under Section 42.005.
8-3 Sec. 46.007. REFUNDING BONDS. A school district may use
8-4 state funds received under this chapter to pay the principal of and
8-5 interest on refunding bonds that:
8-6 (1) are issued to refund bonds eligible under Section
8-7 46.003;
8-8 (2) do not have a final maturity date later than the
8-9 final maturity date of the bonds being refunded;
8-10 (3) may not be called for redemption earlier than the
8-11 earliest call date of the bonds being refunded; and
8-12 (4) result in a present value savings, which is
8-13 determined by computing the net present value of the difference
8-14 between each scheduled payment on the original bonds and each
8-15 scheduled payment on the refunding bonds. The present value
8-16 savings shall be computed at the true interest cost of the
8-17 refunding bonds.
8-18 Sec. 46.008. STANDARDS. The commissioner shall establish
8-19 standards for adequacy of school facilities. The standards must
8-20 include requirements related to space, educational adequacy, and
8-21 construction quality. All new facilities constructed after
8-22 September 1, 1998, must meet the standards to be eligible to be
8-23 financed with state or local tax funds.
8-24 Sec. 46.009. PAYMENT OF SCHOOL FACILITIES ALLOTMENTS. (a)
8-25 For each school year, the commissioner shall determine the amount
8-26 of money to which each school district is entitled under this
8-27 chapter.
9-1 (b) If the amount appropriated for purposes of this chapter
9-2 for a year is less than the total amount determined under
9-3 Subsection (a) for that year, the commissioner shall:
9-4 (1) transfer from the Foundation School Program to the
9-5 instructional facilities program the amount by which the total
9-6 amount determined under Subsection (a) exceeds the amount
9-7 appropriated; and
9-8 (2) reduce each district's foundation school fund
9-9 allocations in the manner provided by Section 42.253.
9-10 (c) Warrants for payments under this chapter shall be
9-11 approved and transmitted to school district treasurers or
9-12 depositories in the same manner as warrants for payments under
9-13 Chapter 42.
9-14 (d) As soon as practicable after September 1 of each year,
9-15 the commissioner shall distribute to each school district the
9-16 amount of state assistance under this chapter to which the
9-17 commissioner has determined the district is entitled for the school
9-18 year. The district shall deposit the money in the interest and
9-19 sinking fund for the bonds for which the assistance is received and
9-20 shall adopt a tax rate for purposes of debt service that takes into
9-21 account the balance of the interest and sinking fund.
9-22 (e) Section 42.258 applies to payments under this chapter.
9-23 (f) If a school district would have received a greater
9-24 amount under this chapter for the applicable school year using the
9-25 adjusted value determined under Section 42.257, the commissioner
9-26 shall add the difference between the adjusted value and the amount
9-27 the district received under this chapter to subsequent
10-1 distributions to the district under this chapter.
10-2 Sec. 46.010. PROJECTS BY MORE THAN ONE DISTRICT. If two or
10-3 more districts apply for state assistance in connection with a
10-4 joint project at a single location, each district is entitled to a
10-5 guaranteed facilities yield amount of state and local funds that is
10-6 20 percent higher than the amount to which the district would
10-7 otherwise be entitled under Section 46.005.
10-8 Sec. 46.011. SALE OF INSTRUCTIONAL FACILITY FINANCED WITH
10-9 INSTRUCTIONAL FACILITIES ALLOTMENT. (a) If an instructional
10-10 facility financed by bonds paid with state and local funds under
10-11 this chapter is sold before the bonds are fully paid, the school
10-12 district shall send to the comptroller an amount equal to the
10-13 district's net proceeds from the sale multiplied by a percentage
10-14 determined by dividing the amount of state funds under this
10-15 subchapter used to pay the principal of and interest on the bonds
10-16 by the total amount of principal and interest paid on the bonds
10-17 with funds other than the proceeds of the sale.
10-18 (b) In this section, "net proceeds" means the difference
10-19 between the total amount received from the sale less:
10-20 (1) the amount necessary to fully pay the outstanding
10-21 principal of and interest on the bonds; and
10-22 (2) the school district's costs of the sale, as
10-23 approved by the commissioner.
10-24 SECTION 1.05. Section 21.401, Education Code, is amended by
10-25 adding Subsections (a-3) and (a-4) and amending Subsection (b-1) to
10-26 read as follows:
10-27 (a-3) For the 1997-1998 school year, an educator employed
11-1 under a 10-month contract must provide a minimum of 186 days of
11-2 service. This subsection expires September 1, 1998.
11-3 (a-4) For the 1998-1999 school year, an educator employed
11-4 under a 10-month contract must provide a minimum of 187 days of
11-5 service. This subsection expires September 1, 1999.
11-6 (b-1) Subsection (b) applies beginning with the 1999-2000
11-7 [1997-1998] school year. This subsection expires January 1, 2000
11-8 [1998].
11-9 SECTION 1.06. Section 21.402, Education Code, is amended by
11-10 adding Subsections (a-1) and (a-2) to read as follows:
11-11 (a-1) Notwithstanding Subsection (a), for the 1997-1998 and
11-12 1998-1999 school years, "FSP" for purposes of Subsection (a):
11-13 (1) includes amounts appropriated in H.B. No. 4, Acts
11-14 of the 75th Legislature, Regular Session, 1997; and
11-15 (2) does not include the following amounts
11-16 appropriated in H.B. No. 1, Acts of the 75th Legislature, Regular
11-17 Session, 1997:
11-18 (A) amounts appropriated under Rider 73
11-19 following appropriations to the Texas Education Agency in Article
11-20 III of that Act; or
11-21 (B) amounts appropriated under Section 198 of
11-22 Article IX of that Act.
11-23 (a-2) Subsection (a-1) and this subsection expire September
11-24 1, 1999.
11-25 SECTION 1.07. Section 403.302, Government Code, is amended
11-26 by adding Subsections (h) and (i) to read as follows:
11-27 (h) For purposes of Sections 41.0011 and 42.2511, Education
12-1 Code, for the 1996 and 1997 tax years, the comptroller shall
12-2 certify to the commissioner of education:
12-3 (1) a final value for each school district computed on
12-4 a residence homestead exemption under Section 1-b(c), Article VIII,
12-5 Texas Constitution, of $5,000; and
12-6 (2) a final value for each school district computed
12-7 on:
12-8 (A) a residence homestead exemption under
12-9 Section 1-b(c), Article VIII, Texas Constitution, of $15,000; and
12-10 (B) the effect of the additional limitation on
12-11 tax increases under Section 1-b(d), Article VIII, Texas
12-12 Constitution, as proposed by H.J.R. No. 4, 75th Legislature,
12-13 Regular Session, 1997.
12-14 (i) Subsection (h) and this subsection expire September 1,
12-15 1999.
12-16 SECTION 1.08. Subchapter H, Chapter 42, Education Code, is
12-17 repealed.
12-18 SECTION 1.09. (a) For the 1997-1998 and 1998-1999 school
12-19 years, the commissioner of education shall increase the entitlement
12-20 under the Foundation School Program of a district that experiences
12-21 additional salary cost resulting from this Act. The amount of
12-22 additional salary cost shall be computed by determining what the
12-23 district's salary cost for the 1996-1997 school year would have
12-24 been if, for purposes of the minimum salary schedule under Section
12-25 21.402, Education Code, the amount appropriated for the Foundation
12-26 School Program for the 1997-1998 state fiscal year were increased
12-27 by $520 million and comparing that cost and the amount the district
13-1 was actually required to pay under Section 21.402, Education Code.
13-2 For this purpose, the commissioner of education shall use 1996-1997
13-3 employment and salary data as reported through the Public Education
13-4 Information Management System (PEIMS).
13-5 (b) A decision by the commissioner of education under this
13-6 section is final and may not be appealed.
13-7 (c) Notwithstanding any other provision to the contrary, for
13-8 a school district that entered into an employment contract with an
13-9 individual before June 15, 1997, that specifies a salary supplement
13-10 or addition to the salary schedule prescribed by law, the salary
13-11 schedule to which the supplement or addition applies is the salary
13-12 schedule prescribed by Section 21.402, Education Code, as that
13-13 section applied for the 1996-1997 school year, except that an
13-14 individual shall be paid at least the minimum salary prescribed by
13-15 Section 21.402, Education Code, as that section applies for the
13-16 1997-1998 school year, for the step to which the individual is
13-17 assigned. A school district is not required to increase the pay of
13-18 any teacher or full-time librarian except as provided by Section
13-19 21.402, Education Code.
13-20 SECTION 1.10. In addition to other amounts appropriated for
13-21 the fiscal biennium ending August 31, 1999:
13-22 (1) the sum of $520 million is appropriated, for the
13-23 fiscal year ending August 31, 1998, from the general revenue fund
13-24 to the Texas Education Agency for purposes of the Foundation School
13-25 Program; and
13-26 (2) the sum of $520 million, plus the unexpended
13-27 balance of the appropriation described by Subdivision (1) of this
14-1 section, is appropriated, for the fiscal year ending August 31,
14-2 1999, from the general revenue fund to the Texas Education Agency
14-3 for the same purpose.
14-4 SECTION 1.11. The amount appropriated in H.B. No. 1, Acts of
14-5 the 75th Legislature, Regular Session, 1997, to the Texas Education
14-6 Agency for Strategy A.2.2.--Maximizing School Facilities, in
14-7 Article III of that Act, is reduced to $100 million for the fiscal
14-8 year ending August 31, 1998, and to $100 million, plus the
14-9 unexpended balance for the fiscal year 1998, for the fiscal year
14-10 ending August 31, 1999.
14-11 SECTION 1.12. (a) The amount appropriated in H.B. No. 1,
14-12 Acts of the 75th Legislature, Regular Session, 1997, to the Texas
14-13 Education Agency for Strategy A.2.1.--Foundation School Program, in
14-14 Article III of that Act, is increased by $1 million for each year
14-15 of the fiscal biennium ending August 31, 1999, and the basic
14-16 allotment under Section 42.101, Education Code, is increased to
14-17 $2,396.
14-18 (b) The amounts appropriated under Rider 73 following the
14-19 appropriations to the Texas Education Agency in Article III, H.B.
14-20 No. 1, Acts of the 75th Legislature, Regular Session, 1997, to
14-21 provide transition assistance to school districts affected by an
14-22 increase in the minimum salary schedule are reduced by $36 million
14-23 for the fiscal year ending August 31, 1998, and by $31 million for
14-24 the fiscal year ending August 31, 1999.
14-25 (c) The amounts appropriated under Section 198, Article IX,
14-26 H.B. No. 1, Acts of the 75th Legislature, Regular Session, 1997,
14-27 for increases in enrollment growth are increased by $65 million.
15-1 SECTION 1.13. (a) Except as provided by Subsection (b) of
15-2 this section, this article takes effect September 1, 1997.
15-3 (b) Sections 1.01, 1.03, 1.05, 1.06, 1.07, 1.09, 1.10, and
15-4 1.12 of this Act take effect September 1, 1997, but only if the
15-5 constitutional amendment proposed by H.J.R. No. 4, 75th
15-6 Legislature, Regular Session, 1997, is adopted by the voters. If
15-7 the proposed amendment is not adopted, Sections 1.01, 1.03, 1.05,
15-8 1.06, 1.07, 1.09, 1.10, and 1.12 of this Act have no effect.
15-9 ARTICLE 2. PROPERTY TAXES
15-10 SECTION 2.01. Section 11.13(b), Tax Code, is amended to read
15-11 as follows:
15-12 (b) An adult is entitled to exemption from taxation by a
15-13 school district of $15,000 [$5,000] of the appraised value of the
15-14 adult's [his] residence homestead, except that $10,000 of the
15-15 exemption does not apply to an entity operating under former
15-16 Chapter 17, 18, 25, 26, 27, or 28, Education Code, as those
15-17 chapters existed on May 1, 1995, as permitted by Section 11.301,
15-18 Education Code.
15-19 SECTION 2.02. Section 11.26, Tax Code, is amended by
15-20 amending Subsections (a) and (b) and adding Subsections (g) and (h)
15-21 to read as follows:
15-22 (a) The tax officials shall appraise the property to which
15-23 this section applies and calculate taxes as on other property, but
15-24 if the tax so calculated exceeds the limitation imposed by this
15-25 section, the tax imposed is the amount of the tax as limited by
15-26 this section, except [Except] as otherwise provided by this
15-27 section. A [Subsection (b) of this section, a] school district may
16-1 not increase the total annual amount of ad valorem tax it imposes
16-2 on the residence homestead of an individual 65 years or older above
16-3 the amount of the tax it imposed in the first tax year the
16-4 individual qualified that residence homestead for the exemption
16-5 provided by [Subsection (c) of] Section 11.13(c) [11.13 of this
16-6 code]. If the first tax year the individual qualified the
16-7 residence homestead for the exemption provided by Section 11.13(c)
16-8 was a tax year before the 1997 tax year, the amount of the
16-9 limitation provided by this section is the amount of tax the school
16-10 district imposed for the 1996 tax year less an amount equal to the
16-11 amount determined by multiplying $10,000 times the tax rate of the
16-12 school district for the 1997 tax year, plus any 1997 tax
16-13 attributable to improvements made in 1996, other than improvements
16-14 made to comply with governmental regulations or repairs [The tax
16-15 officials shall continue to appraise the property and to calculate
16-16 taxes as on other property, but if the tax so calculated exceeds
16-17 the limitation imposed by this section, the tax imposed is the tax
16-18 imposed in the first year the individual qualified the residence
16-19 homestead for the exemption].
16-20 (b) If an individual makes improvements to the individual's
16-21 [his] residence homestead, other than improvements required to
16-22 comply with governmental requirements or repairs, the school
16-23 district may increase the tax on the homestead in the first year
16-24 the value of the homestead is increased on the appraisal roll
16-25 because of the enhancement of value by the improvements. The
16-26 amount of the tax increase is determined by applying the current
16-27 tax rate to the difference in the assessed value of the homestead
17-1 with the improvements and the assessed value it would have had
17-2 without the improvements. A limitation [The limitations] imposed
17-3 by [Subsection (a) of] this section then applies [apply] to the
17-4 increased amount of tax until more improvements, if any, are made.
17-5 (g) Except as provided by Subsection (b), if an individual
17-6 who receives a limitation on tax increases imposed by this section
17-7 subsequently qualifies a different residence homestead for an
17-8 exemption under Section 11.13, a school district may not impose ad
17-9 valorem taxes on the subsequently qualified homestead in a year in
17-10 an amount that exceeds the amount of taxes the school district
17-11 would have imposed on the subsequently qualified homestead in the
17-12 first year in which the individual receives that exemption for the
17-13 subsequently qualified homestead had the limitation on tax
17-14 increases imposed by this section not been in effect, multiplied by
17-15 a fraction the numerator of which is the total amount of school
17-16 district taxes imposed on the former homestead in the last year in
17-17 which the individual received that exemption for the former
17-18 homestead and the denominator of which is the total amount of
17-19 school district taxes that would have been imposed on the former
17-20 homestead in the last year in which the individual received that
17-21 exemption for the former homestead had the limitation on tax
17-22 increases imposed by this section not been in effect.
17-23 (h) An individual who receives a limitation on tax increases
17-24 under this section and who subsequently qualifies a different
17-25 residence homestead for an exemption under Section 11.13, or an
17-26 agent of the individual, is entitled to receive from the chief
17-27 appraiser of the appraisal district in which the former homestead
18-1 was located a written certificate providing the information
18-2 necessary to determine whether the individual may qualify for a
18-3 limitation on the subsequently qualified homestead under Subsection
18-4 (g) and to calculate the amount of taxes the school district may
18-5 impose on the subsequently qualified homestead.
18-6 SECTION 2.03. Section 26.08, Tax Code, is amended to read as
18-7 follows:
18-8 Sec. 26.08. ELECTION TO RATIFY [LIMIT] SCHOOL TAXES.
18-9 (a) If the governing body of a school district adopts a tax rate
18-10 that exceeds the [sum of the] district's rollback tax [effective
18-11 maintenance] rate, [the rate of $0.08, and the district's current
18-12 debt rate,] the registered voters of the district at an election
18-13 held for that purpose must determine whether to approve the adopted
18-14 [limit the] tax rate [the governing body may adopt for the current
18-15 year to the school district rollback tax rate]. When increased
18-16 expenditure of money by a school district is necessary to respond
18-17 to a disaster, including a tornado, hurricane, flood, or other
18-18 calamity, but not including a drought, that has impacted a school
18-19 district and the governor has requested federal disaster assistance
18-20 for the area in which the school district is located, an election
18-21 is not required under this section to approve [limit] the tax rate
18-22 adopted by the governing body [may adopt] for the year following
18-23 the year in which the disaster occurs.
18-24 (b) The governing body shall order that the [an] election be
18-25 held in the school district on a date not less than 30 or more than
18-26 90 days after the day on which it adopted the tax rate. Section
18-27 41.001, Election Code, does not apply to the election unless a date
19-1 specified by that section falls within the time permitted by this
19-2 section. At the election, the ballots shall be prepared to permit
19-3 voting for or against the proposition: "Approving [Limiting] the
19-4 ad valorem tax rate of $_____ per $100 valuation in (name of school
19-5 district) for the current year, a rate that is $_____ higher per
19-6 $100 valuation than [from (the rate adopted) to (]the school
19-7 district rollback tax rate[)]." The ballot proposition must
19-8 include the adopted tax rate and the difference between that rate
19-9 and the rollback tax rate in the appropriate places.
19-10 (c) If a majority of the votes cast in the election favor
19-11 the proposition, the tax rate for the current year is the rate that
19-12 was adopted by the governing body.
19-13 (d) If [a majority of the votes cast in the election favor]
19-14 the proposition is not approved as provided by Subsection (c), the
19-15 governing body may not adopt a tax rate for the school district for
19-16 the current year that exceeds the school district's [district]
19-17 rollback tax rate [calculated for that year using the following
19-18 formula:]
19-19 [ROLLBACK TAX RATE = (ENROLLMENT ADJUSTMENT) (EFFECTIVE MAINTENANCE
19-20 AND OPERATIONS RATE FOR TAX YEAR) + $0.08 + CURRENT DEBT RATE
19-21 where:]
19-22 [(1) "tax year" denotes amounts used in calculating
19-23 the rollback tax rate in the year immediately preceding the year in
19-24 which the tax increase that initiated the referendum occurred
19-25 rather than the year in which the calculation occurs; and]
19-26 [(2) "enrollment adjustment" is computed by dividing
19-27 the current year's projected fall enrollment, as defined by the
20-1 Texas Education Agency, by last year's enrollment but may not be
20-2 less than 1.0].
20-3 (e) [(d)] For purposes of this section, local tax funds
20-4 dedicated to a junior college district under Section 45.105(e),
20-5 Education Code, shall be eliminated from the calculation of the tax
20-6 rate adopted by the governing body of the school district.
20-7 However, the funds dedicated to the junior college district are
20-8 subject to Section 26.085.
20-9 (f) [(e)] If a school district is certified by the
20-10 commissioner of education under Section 42.251(c), Education Code,
20-11 to have been subject to a reduction in total revenue for the school
20-12 year ending on August 31 of the tax year,[:]
20-13 [(1) the district's effective maintenance and
20-14 operations rate for the tax year is calculated as provided by
20-15 Section 26.012, except that last year's levy is reduced by the
20-16 amount of taxes imposed in the preceding year, if any, to offset
20-17 the amount of the reduction certified by the commissioner; and]
20-18 [(2)] the district's rollback tax rate for the tax
20-19 year [calculated as provided by Section 26.04 or by Subsection (c),
20-20 as applicable,] is increased by the tax rate that, if applied to
20-21 the current total value for the school district, would impose taxes
20-22 in an amount equal to the amount of the reduction certified by the
20-23 commissioner.
20-24 (g) [(f)] In a school district that received distributions
20-25 from an equalization tax imposed under former Chapter 18, Education
20-26 Code, the effective rate of that tax as of the date of the county
20-27 unit system's abolition is added to the [district's effective
21-1 maintenance and operations rate under Subsections (a) and (c) of
21-2 this section in the calculation of the] district's rollback tax
21-3 rate.
21-4 (h) [(i)] For purposes of this section, increases in taxable
21-5 values and tax levies occurring within a reinvestment zone under
21-6 [the provisions of] Chapter 311 (Tax Increment Financing Act), in
21-7 which the district is a participant, shall be eliminated from the
21-8 calculation of the tax rate adopted by the governing body of the
21-9 school district.
21-10 (i) For purposes of this section, the rollback tax rate of a
21-11 school district is the sum of:
21-12 (1) the tax rate that, applied to the current total
21-13 value for the district, would impose taxes in an amount that, when
21-14 added to state funds that would be distributed to the district
21-15 under Chapter 42, Education Code, for the school year beginning in
21-16 the current tax year using that tax rate, would provide the same
21-17 amount of state funds distributed under Chapter 42 and maintenance
21-18 and operations taxes of the district per student in weighted
21-19 average daily attendance for that school year that was available to
21-20 the district in the preceding year;
21-21 (2) the rate of $0.08 per $100 of taxable value; and
21-22 (3) the district's current debt rate.
21-23 (j) For the 1997 tax year, the rollback tax rate is the sum
21-24 of:
21-25 (1) the greater of:
21-26 (A) the rate necessary to impose taxes in an
21-27 amount that would provide the same amount of state and local funds
22-1 per weighted student for maintenance and operations as determined
22-2 under Subsection (i)(1) for the 1997-1998 school year that was
22-3 available to the district in the 1996-1997 school year; or
22-4 (B) the district's nominal maintenance and
22-5 operations tax rate for the 1996 tax year;
22-6 (2) the rate of $0.08 per $100 of taxable value; and
22-7 (3) the district's current debt rate.
22-8 (k) For the 1998 tax year, the rollback tax rate is the sum
22-9 of:
22-10 (1) the greater of:
22-11 (A) the rate necessary to impose taxes in an
22-12 amount that would provide the same amount of state and local funds
22-13 per weighted student for maintenance and operations as determined
22-14 under Subsection (i)(1) for the 1998-1999 school year that was
22-15 available to the district in the 1996-1997 school year; or
22-16 (B) the district's nominal maintenance and
22-17 operations tax rate for the 1996 tax year;
22-18 (2) the amount by which the district's adopted tax
22-19 rate for the 1997 tax year exceeded the sum of Subsections (j)(1)
22-20 and (j)(3) for that tax year;
22-21 (3) the rate of $0.08 per $100 of taxable value; and
22-22 (4) the district's current debt rate.
22-23 (l) This subsection and Subsections (j) and (k) expire
22-24 January 1, 1999.
22-25 SECTION 2.04. (a) Sections 2.01 and 2.02 of this article
22-26 take effect on the date that the constitutional amendment proposed
22-27 by H.J.R. No. 4, 75th Legislature, Regular Session, 1997, takes
23-1 effect, and apply to each tax year that begins on or after January
23-2 1, 1997. If that amendment is not approved by the voters, Sections
23-3 2.01 and 2.02 of this article have no effect.
23-4 (b) Section 2.03 of this article takes effect September 1,
23-5 1997, and applies to the tax rate of a school district that is
23-6 adopted by the governing body of the district on or after that
23-7 date. A school district tax rate adopted before the effective date
23-8 of Section 2.03 of this article for 1997 taxes is void.
23-9 ARTICLE 3. LOTTERY REVENUE
23-10 SECTION 3.01. Section 466.015, Government Code, is amended
23-11 by amending Subsection (c) and adding Subsection (d) to read as
23-12 follows:
23-13 (c) The commission may adopt rules governing the
23-14 establishment and operation of the lottery, including rules
23-15 governing:
23-16 (1) the type of lottery games to be conducted;
23-17 (2) the price of each ticket;
23-18 (3) the number of winning tickets and amount of the
23-19 prize paid on each winning ticket, except that the total amount of
23-20 prizes awarded under this chapter may not exceed the amount
23-21 described in Subsection (d);
23-22 (4) the frequency of the drawing or selection of a
23-23 winning ticket;
23-24 (5) the number and types of locations at which a
23-25 ticket may be sold;
23-26 (6) the method to be used in selling a ticket;
23-27 (7) the use of vending machines or electronic or
24-1 mechanical devices of any kind, other than machines or devices that
24-2 dispense currency or coins as prizes;
24-3 (8) the manner of paying a prize to the holder of a
24-4 winning ticket;
24-5 (9) the investigation of possible violations of this
24-6 chapter or any rule adopted under this chapter;
24-7 (10) the means of advertising to be used for the
24-8 lottery;
24-9 (11) the qualifications of vendors of lottery services
24-10 or equipment;
24-11 (12) the confidentiality of information relating to
24-12 the operation of the lottery, including:
24-13 (A) trade secrets;
24-14 (B) security measures, systems, or procedures;
24-15 (C) security reports;
24-16 (D) bids or other information regarding the
24-17 commission's contracts, if disclosure of the information would
24-18 impair the commission's ability to contract for facilities, goods,
24-19 or services on terms favorable to the commission;
24-20 (E) personnel information unrelated to
24-21 compensation, duties, qualifications, or responsibilities; and
24-22 (F) information obtained by commission security
24-23 officers or investigators;
24-24 (13) the development and availability of a model
24-25 agreement governing the division of a prize among multiple
24-26 purchasers of a winning ticket purchased through a group purchase
24-27 or pooling arrangement;
25-1 (14) the criteria to be used in evaluating bids for
25-2 contracts for lottery facilities, goods, and services; or
25-3 (15) any other matter necessary or desirable as
25-4 determined by the commission, to promote and ensure:
25-5 (A) the integrity, security, honesty, and
25-6 fairness of the operation and administration of the lottery; and
25-7 (B) the convenience of players and holders of
25-8 winning tickets.
25-9 (d) The total amount of lottery prizes that the commission
25-10 may award for all lottery games in any fiscal year may not exceed
25-11 an amount equal to the gross revenue from the sale of tickets in
25-12 that fiscal year multiplied by the percentage amount of lottery
25-13 prizes awarded for all lottery games in fiscal year 1997 as
25-14 determined by the comptroller minus an amount equal to five percent
25-15 of gross lottery revenue for the fiscal year in which the prizes
25-16 are being awarded.
25-17 SECTION 3.02. Section 466.355(b), Government Code, is
25-18 amended to read as follows:
25-19 (b) Money in the state lottery account may be used only for
25-20 the following purposes and shall be distributed as follows:
25-21 (1) the payment of prizes to the holders of winning
25-22 tickets;
25-23 (2) the payment of costs incurred in the operation and
25-24 administration of the lottery, including any fees received by a
25-25 lottery operator, provided that the costs incurred in a fiscal
25-26 biennium may not exceed an amount equal to 15 percent of the gross
25-27 revenue accruing from the sale of tickets in that biennium;
26-1 (3) the establishment of a pooled bond fund, lottery
26-2 prize reserve fund, unclaimed prize fund, and prize payment
26-3 account; and
26-4 (4) the balance, after creation of a reserve
26-5 sufficient to pay the amounts needed or estimated to be needed
26-6 under Subdivisions (1) through (3), to be transferred to the
26-7 foundation school [unobligated portion of the general revenue]
26-8 fund, on or before the 15th day of each month.
26-9 SECTION 3.03. This article takes effect September 1, 1997.
26-10 SECTION 3.04. (a) Except as provided by Subsection (b) of
26-11 this section, the change in law made to Section 466.015, Government
26-12 Code, by this article applies to a ticket sold on or after the
26-13 effective date of this article. A ticket sold before that date is
26-14 governed by the law in effect when the ticket was sold, and that
26-15 law is continued in effect for that purpose.
26-16 (b) In fiscal year 1998, the total amount of lottery prizes
26-17 that the Texas Lottery Commission may award under Section
26-18 466.015(d), Government Code, as added by this article, may not
26-19 exceed an amount equal to the gross revenue from the sale of
26-20 lottery tickets multiplied by the percentage amount of lottery
26-21 prizes awarded for all lottery games in fiscal year 1997 as
26-22 determined by the comptroller minus an amount equal to 4-1/2
26-23 percent of gross lottery revenue for the 1998 fiscal year.
26-24 SECTION 3.05. The change in law made to Section 466.355,
26-25 Government Code, by this article applies only to a transfer from
26-26 the state lottery account made on or after the effective date of
26-27 this article.
27-1 ARTICLE 4. EMERGENCY
27-2 SECTION 4.01. The importance of this legislation and the
27-3 crowded condition of the calendars in both houses create an
27-4 emergency and an imperative public necessity that the
27-5 constitutional rule requiring bills to be read on three several
27-6 days in each house be suspended, and this rule is hereby suspended.
27-7 Explanation: This change is necessary to provide for the
27-8 distribution of available revenue for property tax relief to owners
27-9 of homestead property, to provide a funding mechanism to compensate
27-10 school districts for the amounts of losses of local revenue
27-11 occurring as a result of the added homestead exemptions and tax
27-12 limitations, to allocate certain funds for school debt service, to
27-13 increase the minimum salary schedule for public school teachers, to
27-14 make, limit, and transfer appropriations for those purposes, to
27-15 provide for the computation of the school tax rollback rate, and to
27-16 increase and dedicate certain revenue from the state lottery.