By Shapiro S.B. No. 1694
75R8526 T
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to state financing of public school facilities.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Title 2, Education Code, is amended by adding
1-5 subchapter I to Chapter 42 to read as follows:
1-6 SUBCHAPTER I. DEBT SERVICE EQUALIZATION PROGRAM
1-7 Sec. 42.501. SCHOOL FACILITIES ALLOTMENT. (a) For each
1-8 year, a school district is guaranteed a specified amount per
1-9 student in state and local funds for each cent of tax effort, up to
1-10 the maximum rate under Subsection (b), to pay the principal of and
1-11 interest on eligible bonds. The amount of state support is
1-12 determined by the formula:
1-14 where:
1-15 "FYA" is the guaranteed facilities yield amount of state
1-16 funds allocated to the district for the year;
1-17 "FYL" is the dollar amount guaranteed level of state and
1-18 local funds per student per cent of tax effort, which is $28 or a
1-19 greater amount for any year provided by appropriation;
1-20 "WADA" is the number of students in average daily attendance
1-21 in the district;
1-22 "BTR" is the district's bond tax rate for the current year,
1-23 which is determined by dividing the amount of taxes budgeted to be
1-24 collected by the district for payment of eligible bonds by the
2-1 quotient of the district's taxable value of property as determined
2-2 under Subchapter M, Chapter 403, Government Code divided by 100;
2-3 and
2-4 "DPV" is the district's taxable value of property as
2-5 determined under Section 11.86.
2-6 (b) For purposes of this section, the bond tax rate under
2-7 Subsection (a) may not exceed the rate necessary for the current
2-8 year, using state funds under Subsection (a), to make payments of
2-9 principal and interest on the bonds for which the tax is pledged.
2-10 (c) Bonds are eligible to be paid with state and local funds
2-11 under this section if:
2-12 (1) taxes to pay the principal of and interest on the
2-13 bonds were first levied in the 1996-1997 school year or a later
2-14 school year;
2-15 (2) the bonds are guaranteed by the permanent school
2-16 fund as provided by Subchapter C, Chapter 45;
2-17 (3) the bonds do not have a weighted average maturity
2-18 of less than eight years and may not be called for redemption
2-19 earlier than 10 years after the date of issuance; and
2-20 (4) the bonds are not issued to refund bonds described
2-21 by Section 42.502(d)(1).
2-22 (d) A district may use state funds received under this
2-23 section only to pay the principal of and interest on the bonds for
2-24 which the district received the funds.
2-25 (e) The board of trustees and voters of a school district
2-26 shall determine district needs concerning construction,
2-27 acquisition, renovation, or improvement of school facilities.
3-1 Sec. 42.502. EXISTING SCHOOL FACILITIES ALLOTMENT. (a) For
3-2 each year, a school district is guaranteed a specified amount per
3-3 student in state and local funds for each cent of tax effort to pay
3-4 the principal of and interest on eligible bonds. The amount of
3-5 state support is determined by the formula:
3-7 where:
3-8 "EFYA" is the guaranteed yield amount of state funds
3-9 allocated to the district for the year;
3-10 "FYL" is the dollar amount guaranteed level of state and
3-11 local funds per student per cent of tax effort, which is $28 or a
3-12 greater amount for any year provided by appropriation;
3-13 "GR" is the district's growth rate, which is the greater of
3-14 one or the quotient of the district's enrollment, as of a date
3-15 determined by the commissioner, in the preceding school year
3-16 divided by the district's enrollment in the school year that began
3-17 five years before the preceding school year;
3-18 "WADA" is the number of students in average daily attendance
3-19 in the district;
3-20 "BTR" is the district's bond tax rate for the current year,
3-21 which is determined by dividing the amount of taxes budgeted to be
3-22 collected by the district for payment of eligible bonds by the
3-23 quotient of the district's taxable value of property as determined
3-24 under Subchapter M, Chapter 403, Government Code, divided by 100;
3-25 and
3-26 "DPV" is the district's taxable value of property as
3-27 determined under Subchapter M, Chapter 403, Government Code, for
4-1 the final fiscal year of the preceding state fiscal biennium.
4-2 (b) The bond tax rate under Subsection (a) may not exceed
4-3 the rate necessary for the current year, using state funds under
4-4 Subsection (a), to make payments of principal and interest on the
4-5 bonds for which the tax is pledged.
4-6 (c) Bonds are eligible to be paid with state and local funds
4-7 under this section only if:
4-8 (1) taxes to pay the principal of and interest on the
4-9 bonds were first levied in the 1995-1996 school year or an earlier
4-10 school year; or
4-11 (2) the bonds are issued to refund bonds described by
4-12 Subdivision (1).
4-13 (d) A district may use state funds received under this
4-14 section only to pay the principal of and interest on the bonds for
4-15 which the district received the funds.
4-16 Sec. 42.503. REFUNDING BONDS. A school district may use
4-17 state funds received under this chapter to pay the principal of and
4-18 interest on refunding bonds that:
4-19 (1) are issued to refund bonds eligible under Section
4-20 42.501 or 42.502;
4-21 (2) do not have a final maturity date later than the
4-22 final maturity date of the bonds being refunded;
4-23 (3) may not be called for redemption earlier than the
4-24 earliest call date of the bonds being refunded; and
4-25 (4) result in a present value savings, which is
4-26 determined by computing the net present value of the difference
4-27 between each scheduled payment on the original bonds and each
5-1 scheduled payment on the refunding bonds. The present value
5-2 savings shall be calculated at the true interest cost of the
5-3 refunding bonds.
5-4 Sec. 42.504. PAYMENT OF SCHOOL FACILITIES ALLOTMENTS. (a)
5-5 For each school year, the commissioner of education shall determine
5-6 the amount of money to which each school district is entitled under
5-7 Sections 42.501 and 42.502.
5-8 (b) If the amount appropriated for purposes of Sections
5-9 42.501 and 42.502 for a year is less than the total amount
5-10 determined under Subsection (a) for that year, the commissioner
5-11 shall:
5-12 (1) transfer from the general foundation school
5-13 program to the school facilities account the amount by which the
5-14 total amount determined under Subsection (a) exceeds the amount
5-15 appropriated; and
5-16 (2) reduce each district's foundation school fund
5-17 allocations in the manner provided by Section 42.254.
5-18 (c) Warrants for payments under this chapter shall be
5-19 approved and transmitted to school district treasurers or
5-20 depositories in the same manner as warrants for payments under
5-21 Chapter 42.
5-22 (d) Payments under this chapter shall be made semiannually
5-23 on dates selected by the school district and approved by the
5-24 commissioner to enable the district to meet scheduled bond
5-25 payments.
5-26 (e) Section 42.259 applies to payments under this chapter.
5-27 Sec. 42.505. SALE OF SCHOOL FACILITY FINANCED WITH SCHOOL
6-1 FACILITIES ALLOTMENT. (a) If a school facility financed by bonds
6-2 paid with state and local funds under Section 42.001 is sold before
6-3 the bonds are fully paid, the school district shall remit to the
6-4 comptroller an amount equal to the district's net proceeds from the
6-5 sale multiplied by a percentage determined by dividing the amount
6-6 of state funds under this section used to pay the principal of and
6-7 interest on the bonds by the total amount of principal and interest
6-8 paid on the bonds with funds other than the proceeds of the sale.
6-9 (b) In this section, "net proceeds" means the difference
6-10 between the total amount received from the sale less:
6-11 (1) the amount necessary to fully pay the outstanding
6-12 principal of and interest on the bonds; and
6-13 (2) the school district's costs of the sale, as
6-14 approved by the commissioner of education.
6-15 SECTION 2 [4]. Section 42.301 [16.302], Education Code, is
6-16 amended to read as follows:
6-17 Sec. 42.301 [16.302]. Allotment. Each school district is
6-18 guaranteed a specified amount per weighted student in state and
6-19 local funds for each cent of tax effort over that required for the
6-20 district's local fund assignment up to the maximum level specified
6-21 in this subchapter. The amount of state support, subject only to
6-22 the maximum amount under Section 42.303 of this code, is determined
6-23 by the formula:
6-25 where:
6-26 "GYA" is the guaranteed yield amount of state funds to be
6-27 allocated to the district;
7-1 "GL" is the dollar amount guaranteed level of state and local
7-2 funds per weighted student per cent of tax effort, which is $21.00
7-3 [$20.55] or a greater amount for any year provided by
7-4 appropriation, or a greater amount adopted by the foundation school
7-5 fund budget committee under Section 42.256(d) [16.256(d)];
7-6 "WADA", except as provided by Section 42.206 [16.206] of this
7-7 code, is the number of weighted students in average daily
7-8 attendance, which is calculated by dividing the sum of the school
7-9 district's allotments under Subchapters C and D of this chapter,
7-10 less any allotments to the district for transportation[, teacher
7-11 compensation, or technology] and 50 percent of the adjustment under
7-12 Section 42.102 [16.102] of this code, by the basic allotment for
7-13 the applicable year;
7-14 "DTR" is the district enrichment and facilities tax rate of
7-15 the school district, which is determined by subtracting the sum of
7-16 the district's local fund assignment and the amount of taxes
7-17 collected by the school district for the applicable school year for
7-18 payment of bonds that are being paid with state and local funds
7-19 under Sections 42.501 and 42.502 of this code from the total amount
7-20 of taxes collected by the school district for the applicable school
7-21 year and dividing the difference by the quotient of the district's
7-22 taxable value of property as determined under Section 11.86 of this
7-23 code divided by 100; and
7-24 "LR" is the local revenue, which is determined by multiplying
7-25 "DTR" by the quotient of the district's taxable value of property
7-26 as determined under Section [11.86 of] this code divided by 100.
7-27 SECTION 3 [7]. Section 45.061, Education Code, is amended to
8-1 read as follows:
8-2 Sec. 45.061. Reimbursement of Fund. (a) If the
8-3 commissioner orders payment from the fund on behalf of a school
8-4 district, the commissioner shall direct the comptroller [of public
8-5 accounts] to withhold the amount paid, plus interest, from the
8-6 first state money payable to the school district, other than money
8-7 to which the school district is entitled under Section 42.501. The
8-8 amount withheld shall be deposited to the credit of the fund.
8-9 (b) If the commissioner orders payment from the permanent
8-10 school fund in connection with bonds that were, before default,
8-11 being paid with state and local funds under Section 42.501 and the
8-12 commissioner finds the default is caused by the failure to
8-13 appropriate sufficient funds to make a payment to the district
8-14 under Section 42.504, the commissioner shall:
8-15 (1) withhold under Subsection (a) only that portion of
8-16 the amount paid from the permanent school fund that is
8-17 proportionate to the school district's local share under Section
8-18 42.501; and
8-19 (2) transfer from the foundation school fund to the
8-20 permanent school fund that portion of the amount paid from the
8-21 permanent school fund that is proportionate to the state's share
8-22 under Section 42.501.
8-23 (c) In accordance with the rules of the board, the
8-24 commissioner may authorize reimbursement to the fund with interest
8-25 in a manner other than that provided by this section.
8-26 SECTION 4 (]L8 . (a) A commission is established to study the
8-27 costs of facilities that are related to the needs of different
9-1 student populations.
9-2 (b) The commission is composed of the commissioner of
9-3 education or the commissioner's designee and one member appointed
9-4 by the commissioner from each of the 20 regional education service
9-5 center areas. The board of directors of each regional education
9-6 service center shall submit the names of three persons from the
9-7 region to the commissioner to consider for appointment to the
9-8 commission. The commissioner shall select one of the three persons
9-9 named from each region to serve on the commission. In making the
9-10 appointments, the commissioner shall ensure that the composition of
9-11 the commission is representative of the demographics of the state
9-12 population and includes representatives of:
9-13 (1) rural, suburban, and urban districts;
9-14 (2) districts of various wealth levels; and
9-15 (3) districts that serve various student populations.
9-16 (c) Not later than September 15, 1998, the commission shall
9-17 report to the legislature recommendations, if any, for
9-18 modifications to the state formulas for financing facilities that
9-19 are needed to account for costs related to serving different
9-20 student populations.
9-21 (d) From funds appropriated for the purposes of Chapter 37,
9-22 Education Code, as added by this Act, the commissioner may withhold
9-23 the amount necessary to staff the commission and for the actual
9-24 travel expenses of the members of the commission.
9-25 (e) The commission established by this section is abolished
9-26 January 1, 1999.
9-27 [SECTION 9. Notwithstanding Section 95, S.B. No. 1, Acts of
10-1 the 74th Legislature, Regular Session, 1995, this Act prevails over
10-2 that Act to the extent of any conflict.]
10-3 SECTION 5 [10]. This Act takes effect September 1, 1997.
10-4 SECTION 6 [11]. The importance of this legislation and the
10-5 crowded condition of the calendars in both houses create an
10-6 emergency and an imperative public necessity that the
10-7 constitutional rule requiring bills to be read on three several
10-8 days in each house be suspended, and this rule is hereby suspended.