AN ACT
1-1 relating to public school finance, including the abolition of the
1-2 foundation school fund budget committee.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 13.285, Education Code, is amended to
1-5 read as follows:
1-6 Sec. 13.285. COST. The cost of incentive aid payments
1-7 authorized by this subchapter shall be paid from the foundation
1-8 school fund. [The costs shall be considered and included by the
1-9 foundation school fund budget committee in estimating the funds
1-10 needed for purposes of the Foundation School Program.]
1-11 SECTION 2. Subsection (b), Section 19.007, Education Code,
1-12 is amended to read as follows:
1-13 (b) The costs for persons eligible under Section 19.005
1-14 shall be paid from the foundation school fund. [Those costs shall
1-15 be considered annually by the foundation school fund budget
1-16 committee and included in estimating the funds needed for purposes
1-17 of the Foundation School Program.]
1-18 SECTION 3. Subsection (b), Section 29.008, Education Code,
1-19 is amended to read as follows:
1-20 (b) Except as provided by Subsection (c), costs of an
1-21 approved contract for residential placement may be paid from a
1-22 combination of federal, state, and local funds. The local share of
1-23 the total contract cost for each student is that portion of the
2-1 local tax effort that exceeds the district's local fund assignment
2-2 under Section 42.252, divided by the average daily attendance in
2-3 the district. If the contract involves a private facility, the
2-4 state share of the total contract cost is that amount remaining
2-5 after subtracting the local share. If the contract involves a
2-6 public facility, the state share is that amount remaining after
2-7 subtracting the local share from the portion of the contract that
2-8 involves the costs of instructional and related services. For
2-9 purposes of this subsection, "local tax effort" means the total
2-10 amount of money generated by taxes imposed for debt service and
2-11 maintenance and operation less any amounts paid into a tax
2-12 increment fund under Chapter 311, Tax Code.
2-13 SECTION 4. Subsection (c), Section 29.256, Education Code,
2-14 is amended to read as follows:
2-15 (c) The cost to the state shall be paid from the foundation
2-16 school fund. [The foundation school fund budget committee shall
2-17 consider that cost in estimating the funds needed for Foundation
2-18 School Program purposes.]
2-19 SECTION 5. Subsection (a), Section 29.257, Education Code,
2-20 is amended to read as follows:
2-21 (a) The legislature may appropriate money from the
2-22 foundation school fund to the agency for developing and
2-23 implementing community education projects. [The foundation school
2-24 fund budget committee shall consider the cost of community
2-25 education development projects in estimating the money needed for
3-1 foundation school fund purposes.] The agency shall actively seek
3-2 gifts, grants, or other donations for purposes related to community
3-3 education development projects, unless the acceptance is prohibited
3-4 by other law. Money received under this subsection shall be
3-5 deposited in the account established under Subsection (b) and may
3-6 be appropriated only for the purpose for which the money was given.
3-7 SECTION 6. Section 30.003, Education Code, is amended by
3-8 adding Subsection (h) to read as follows:
3-9 (h) For the 1998-1999 state fiscal biennium, the
3-10 commissioner shall transfer from the Foundation School Program to
3-11 the Texas School for the Blind and Visually Impaired and the Texas
3-12 School for the Deaf the amount necessary to reimburse each school
3-13 for the decrease resulting from H.B. No. 4, Acts of the 75th
3-14 Legislature, Regular Session, 1997, in a school district's local
3-15 share of the cost of a student's education at the school for the
3-16 1997-1998 or 1998-1999 school year. This subsection expires
3-17 September 1, 1999.
3-18 SECTION 7. Subsections (e) and (f), Section 41.002,
3-19 Education Code, are amended to read as follows:
3-20 (e) Notwithstanding Subsection (a), for the [1996-1997 and]
3-21 1997-1998, 1998-1999, and 1999-2000 school years, in accordance
3-22 with a determination of the commissioner, the wealth per student
3-23 that a school district may have after exercising an option under
3-24 Section 41.003(2) or (3) may not be less than the amount needed to
3-25 maintain state and local revenue in an amount equal to state and
4-1 local revenue per weighted student for maintenance and operation of
4-2 the district for the 1992-1993 school year less the district's
4-3 current year distribution per weighted student from the available
4-4 school fund, other than amounts distributed under Chapter 31, if
4-5 the district imposes an effective tax rate for maintenance and
4-6 operation of the district equal to the greater of the district's
4-7 current tax rate or $1.50 on the $100 valuation of taxable
4-8 property. This subsection expires September 1, 2000 [1998].
4-9 (f) For purposes of Subsection [Subsections (d) and] (e), a
4-10 school district's effective tax rate is determined by dividing the
4-11 total amount of taxes collected by the district for the applicable
4-12 school year less any amounts paid into a tax increment fund under
4-13 Chapter 311, Tax Code, by the quotient of the district's taxable
4-14 value of property, as determined under Subchapter M, Chapter 403,
4-15 Government Code, divided by 100. This subsection expires September
4-16 1, 2000 [1998].
4-17 SECTION 8. Section 41.006, Education Code, is amended to
4-18 read as follows:
4-19 Sec. 41.006. RULES. (a) The commissioner may adopt rules
4-20 necessary for the implementation of this chapter. The rules may
4-21 provide for the commissioner to make necessary adjustments to the
4-22 provisions of Chapter 42, including providing for the
4-23 commissioner[, with the approval of the foundation school fund
4-24 budget committee,] to make an adjustment in the funding element
4-25 established by Section 42.302, at the earliest date practicable, to
5-1 the amount the commissioner believes, taking into consideration
5-2 options exercised by school districts under this chapter and
5-3 estimates of student enrollments, will match appropriation levels.
5-4 (b) As necessary for the effective and efficient
5-5 administration of this chapter, the commissioner may modify
5-6 effective dates and time periods for actions described by this
5-7 chapter.
5-8 SECTION 9. Section 41.093, Education Code, is amended to
5-9 read as follows:
5-10 Sec. 41.093. COST. (a) The cost of each credit is an
5-11 amount equal to the greater of:
5-12 (1) the amount of the district's maintenance and
5-13 operations [total] tax revenue per student in weighted average
5-14 daily attendance for the school year for which the contract is
5-15 executed; or
5-16 (2) the amount of the statewide district average of
5-17 maintenance and operations [total] tax revenue per student in
5-18 weighted average daily attendance for the school year preceding the
5-19 school year for which the contract is executed.
5-20 (b) For purposes of this section, a school district's
5-21 maintenance and operations tax revenue does not include any amounts
5-22 paid into a tax increment fund under Chapter 311, Tax Code.
5-23 SECTION 10. Subsection (a), Section 41.097, Education Code,
5-24 is amended to read as follows:
5-25 (a) The total amount required under Section 41.093 for a
6-1 district to purchase attendance credits under this subchapter for
6-2 any school year is reduced by an amount equal to the product of the
6-3 district's costs under Section 6.06, Tax Code, for the central
6-4 appraisal district in which it participates multiplied by a
6-5 percentage that is computed by dividing the total amount required
6-6 under Section 41.093 by the total amount of taxes imposed in the
6-7 district for that year less any amounts paid into a tax increment
6-8 fund under Chapter 311, Tax Code.
6-9 SECTION 11. Section 41.099, Education Code, is amended to
6-10 read as follows:
6-11 Sec. 41.099. LIMITATION. (a) Sections 41.002(e), 41.094,
6-12 41.097, and 41.098 apply only to a district that:
6-13 (1) executes an agreement to purchase all attendance
6-14 credits necessary to reduce the district's wealth per student to
6-15 the equalized wealth level; [or]
6-16 (2) executes an agreement to purchase attendance
6-17 credits and an agreement under Subchapter E to contract for the
6-18 education of nonresident students who transfer to and are educated
6-19 in the district but who are not charged tuition; or
6-20 (3) executes an agreement under Subchapter E to
6-21 contract for the education of nonresident students:
6-22 (A) to an extent that does not provide more than
6-23 10 percent of the reduction in wealth per student required for the
6-24 district to achieve a wealth per student that is equal to or less
6-25 than the equalized wealth level; and
7-1 (B) under which all revenue paid by the district
7-2 to other districts, in excess of the reduction in state aid that
7-3 results from counting the weighted average daily attendance of the
7-4 students served in the contracting district, is required to be used
7-5 for funding a consortium of at least three districts in a county
7-6 with a population of less than 40,000 that is formed to support a
7-7 technology initiative.
7-8 (b) A district that executes an agreement under Subsection
7-9 (a)(3) must pay full market value for any good or service the
7-10 district obtains through the consortium.
7-11 SECTION 12. Subsection (a), Section 42.005, Education Code,
7-12 is amended to read as follows:
7-13 (a) In this chapter, average daily attendance is the
7-14 quotient of the sum of attendance for each day of the minimum
7-15 number of days of instruction as described under Section 25.081(a)
7-16 [and for each day approved by the commissioner for an extended year
7-17 program under Section 29.082] divided by the minimum number of days
7-18 of instruction.
7-19 SECTION 13. Section 42.007, Education Code, is amended to
7-20 read as follows:
7-21 Sec. 42.007. EQUALIZED FUNDING ELEMENTS. (a) The
7-22 Legislative Budget Board shall adopt rules, subject to appropriate
7-23 notice and opportunity for public comment, for the calculation for
7-24 each year of a biennium of the qualified funding elements, in
7-25 accordance with Subsection (c), [under Section 42.256(e)] necessary
8-1 to achieve the state policy under Section 42.001.
8-2 (b) Before [Not later than October 1 preceding] each regular
8-3 session of the legislature, the board shall report the equalized
8-4 funding elements to [the foundation school fund budget committee,]
8-5 the commissioner[,] and the legislature.
8-6 (c) The funding elements must include:
8-7 (1) a basic allotment for the purposes of Section
8-8 42.101 that, when combined with the guaranteed yield component
8-9 provided by Subchapter F, represents the cost per student of a
8-10 regular education program that meets all mandates of law and
8-11 regulation;
8-12 (2) adjustments designed to reflect the variation in
8-13 known resource costs and costs of education beyond the control of
8-14 school districts;
8-15 (3) appropriate program cost differentials and other
8-16 funding elements for the programs authorized under Subchapter C,
8-17 with the program funding level expressed as dollar amounts and as
8-18 weights applied to the adjusted basic allotment for the appropriate
8-19 year;
8-20 (4) the maximum guaranteed level of qualified state
8-21 and local funds per student for the purposes of Subchapter F;
8-22 (5) the enrichment and facilities tax rate under
8-23 Subchapter F;
8-24 (6) the computation of students in weighted average
8-25 daily attendance under Section 42.302; and
9-1 (7) the amount to be appropriated for the school
9-2 facilities assistance program under Chapter 46.
9-3 (d) The board shall conduct a study on the funding elements
9-4 each biennium, as appropriate.
9-5 SECTION 14. Section 42.101, Education Code, is amended to
9-6 read as follows:
9-7 Sec. 42.101. BASIC ALLOTMENT. For each student in average
9-8 daily attendance, not including the time students spend each day in
9-9 special education programs in an instructional arrangement other
9-10 than mainstream or career and technology education programs, for
9-11 which an additional allotment is made under Subchapter C, a
9-12 district is entitled to an allotment of $2,387 [or a greater amount
9-13 adopted by the foundation school fund budget committee under
9-14 Section 42.256]. A greater amount for any school year may be
9-15 provided by appropriation.
9-16 SECTION 15. Subsection (b), Section 42.102, Education Code,
9-17 is amended to read as follows:
9-18 (b) The [foundation school fund budget committee shall
9-19 determine the] cost of education adjustment is the cost of
9-20 education index adjustment adopted by the foundation school fund
9-21 budget committee and contained in Chapter 203, Title 19, Texas
9-22 Administrative Code, as that chapter existed on March 26, 1997
9-23 [under Section 42.256].
9-24 SECTION 16. Section 42.152, Education Code, is amended by
9-25 amending Subsection (c) and adding Subsections (q) and (r) to read
10-1 as follows:
10-2 (c) Funds allocated under this section, other than an
10-3 indirect cost allotment established under State Board of Education
10-4 rule, which may not exceed 15 percent, may [must] be used only in
10-5 providing compensatory education and accelerated instruction
10-6 programs under Section 29.081 and may only be spent to improve and
10-7 enhance programs and services funded under the regular education
10-8 program. A district's compensatory education allotment may be used
10-9 for costs supplementary to the regular program, such as costs for
10-10 program and student evaluation, instructional materials and
10-11 equipment and other supplies required for quality instruction,
10-12 supplemental staff expenses, salary for teachers of at-risk
10-13 students, smaller class size, and individualized instruction[, and
10-14 the district must account for the expenditure of state funds by
10-15 program and by campus under existing agency reporting and auditing
10-16 procedures. Funds allocated under this section, other than the
10-17 indirect cost allotment, shall only be expended to improve and
10-18 enhance programs and services funded under the regular education
10-19 program]. A home-rule school district or an open-enrollment
10-20 charter school must use funds allocated under Subsection (a) to
10-21 provide compensatory education services but is not otherwise
10-22 subject to Subchapter C, Chapter 29.
10-23 (q) The State Board of Education, with the assistance of the
10-24 state auditor and the comptroller, shall develop and implement by
10-25 rule a reporting and auditing system for district and campus
11-1 expenditures of compensatory education funds to ensure that
11-2 compensatory education funds, other than the indirect cost
11-3 allotment, are spent only to supplement the regular program. The
11-4 commissioner, in the year following an audit of compensatory
11-5 education expenditures, shall withhold from a district's foundation
11-6 school fund payment an amount equal to the amount of compensatory
11-7 education funds the agency determines were not used in compliance
11-8 with Subsection (c). The commissioner shall release to a district
11-9 funds withheld under this subsection when the district provides to
11-10 the commissioner a detailed plan to spend those funds in compliance
11-11 with Subsection (c).
11-12 (r) Subsection (q) applies beginning with the 1998-1999
11-13 school year. For the 1997-1998 school year, a school district
11-14 shall account for the expenditure of funds allocated under this
11-15 chapter for compensatory education purposes by program and by
11-16 campus under existing agency reporting and auditing procedures.
11-17 The board, state auditor, and comptroller shall develop the
11-18 reporting and auditing system required by Subsection (q) not later
11-19 than August 1, 1998. This subsection expires September 1, 1999.
11-20 SECTION 17. Subsection (c), Section 42.155, Education Code,
11-21 is amended to read as follows:
11-22 (c) Each district or county operating a regular
11-23 transportation system is entitled to an allotment based on the
11-24 daily cost per regular eligible student of operating and
11-25 maintaining the regular transportation system and the linear
12-1 density of that system. In determining the cost, the commissioner
12-2 shall give consideration to factors affecting the actual cost of
12-3 providing these transportation services in each district or county.
12-4 The average actual cost is to be computed by the commissioner and
12-5 included for consideration by [the foundation school fund budget
12-6 committee and] the legislature in the General Appropriations Act.
12-7 The allotment per mile of approved route may not exceed the amount
12-8 set by appropriation.
12-9 SECTION 18. Subsection (e), Section 42.252, Education Code,
12-10 is amended to read as follows:
12-11 (e) The commissioner shall hear appeals from school
12-12 districts that have experienced a rapid decline in tax base used in
12-13 calculating the local fund assignment, exceeding four percent of
12-14 the preceding year, that is beyond the control of the board of
12-15 trustees of the district. The commissioner, to the extent
12-16 appropriations for that purpose are available, may adjust the
12-17 district's taxable values for local fund assignment purposes for
12-18 such losses in value exceeding four percent and thereby adjust the
12-19 local fund assignment to reflect the local current year taxable
12-20 value. The decision of the commissioner is final. An adjustment
12-21 does not affect the local fund assignment of any other school
12-22 district. This subsection applies to determinations by the
12-23 commissioner in identifying districts with wealth per student
12-24 exceeding the equalized wealth level pursuant to Section 41.004.
12-25 SECTION 19. Subsections (b) and (f), Section 42.253,
13-1 Education Code, are amended to read as follows:
13-2 (b) Except as provided by this subsection, the commissioner
13-3 shall base the determinations under Subsection (a) on the estimates
13-4 provided to the legislature under Section 42.254, or, if the
13-5 General Appropriations Act provides estimates for that purpose, on
13-6 the estimates provided under that Act, for each school district for
13-7 each school year. The commissioner shall reduce the entitlement of
13-8 each district that has a final taxable value of property for the
13-9 second year of a state fiscal biennium that is higher than the
13-10 estimate under Section 42.254 or the General Appropriations Act, as
13-11 applicable. A reduction under this subsection may not reduce the
13-12 district's entitlement below the amount to which it is entitled at
13-13 its actual taxable value of property. The sum of the reductions
13-14 under this subsection may not be greater than the amount necessary
13-15 to fully fund the entitlement of each district.
13-16 (f) Amounts transferred to the reserve account under
13-17 Subsection (e) shall be used in the succeeding fiscal year to
13-18 finance increases in allocations to school districts under
13-19 Subsection (i). If the amount in the reserve account is less than
13-20 the amount of the increases under Subsection (i) for the second
13-21 year of a state fiscal biennium, the commissioner shall certify the
13-22 amount of the difference to the Legislative Budget Board
13-23 [foundation school fund budget committee] not later than January 1
13-24 of the second year of the state fiscal biennium. The Legislative
13-25 Budget Board [committee] shall propose to the legislature that the
14-1 certified amount be transferred to the foundation school fund from
14-2 the economic stabilization fund and appropriated for the purpose of
14-3 increases in allocations under Subsection (h).
14-4 SECTION 20. Subsection (a), Section 42.254, Education Code,
14-5 is amended to read as follows:
14-6 (a) Not later than October 1 of each even-numbered year:
14-7 (1) the agency shall submit to [the foundation school
14-8 fund budget committee and] the legislature an estimate of the tax
14-9 rate and student enrollment of each school district for the
14-10 following biennium; and
14-11 (2) the comptroller shall submit to [the foundation
14-12 school fund budget committee and] the legislature an estimate of
14-13 the total taxable value of all property in the state as determined
14-14 under Subchapter M, Chapter 403, Government Code, for the following
14-15 biennium.
14-16 SECTION 21. Sections 42.302 and 42.303, Education Code, are
14-17 amended to read as follows:
14-18 Sec. 42.302. ALLOTMENT. (a) Each school district is
14-19 guaranteed a specified amount per weighted student in state and
14-20 local funds for each cent of tax effort over that required for the
14-21 district's local fund assignment up to the maximum level specified
14-22 in this subchapter. The amount of state support, subject only to
14-23 the maximum amount under Section 42.303, is determined by the
14-24 formula:
14-25 GYA = (GL X WADA X DTR X 100) - LR
15-1 where:
15-2 "GYA" is the guaranteed yield amount of state funds to be
15-3 allocated to the district;
15-4 "GL" is the dollar amount guaranteed level of state and local
15-5 funds per weighted student per cent of tax effort, which is $21
15-6 [$20.55] or a greater amount for any year provided by
15-7 appropriation[, or a greater amount adopted by the foundation
15-8 school fund budget committee under Section 42.256(d)];
15-9 "WADA" is the number of students in weighted average daily
15-10 attendance, which is calculated by dividing the sum of the school
15-11 district's allotments under Subchapters B and C, less any allotment
15-12 to the district for transportation and 50 percent of the adjustment
15-13 under Section 42.102, by the basic allotment for the applicable
15-14 year;
15-15 "DTR" is the district enrichment and facilities tax rate of
15-16 the school district, which is determined by subtracting the amounts
15-17 specified by Subsection (b) from the total amount of taxes
15-18 collected by the school district for the applicable school year and
15-19 dividing the difference by the quotient of the district's taxable
15-20 value of property as determined under Subchapter M, Chapter 403,
15-21 Government Code, divided by 100; and
15-22 "LR" is the local revenue, which is determined by multiplying
15-23 "DTR" by the quotient of the district's taxable value of property
15-24 as determined under Subchapter M, Chapter 403, Government Code,
15-25 divided by 100.
16-1 (b) In computing the district enrichment and facilities tax
16-2 rate of a school district, the total amount of taxes collected by
16-3 the school district does not include the amount of:
16-4 (1) the district's local fund assignment under Section
16-5 42.252; [or]
16-6 (2) taxes collected to pay the local share of the cost
16-7 of an instructional facility for which the district receives state
16-8 assistance under Chapter 46; or
16-9 (3) taxes paid into a tax increment fund under Chapter
16-10 311, Tax Code [Subchapter H].
16-11 Sec. 42.303. LIMITATION ON ENRICHMENT AND FACILITIES TAX
16-12 RATE. The district enrichment and facilities tax rate ("DTR")
16-13 under Section 42.302 may not exceed $0.64 per $100 of valuation, or
16-14 a greater amount for any year provided by appropriation [adopted by
16-15 the foundation school fund budget committee under Section
16-16 42.256(d)].
16-17 SECTION 22. Subsection (e), Section 45.003, Education Code,
16-18 is amended to read as follows:
16-19 (e) Before issuing bonds, a district must demonstrate to the
16-20 attorney general with respect to the proposed issuance that the
16-21 district has a projected ability to pay the principal of and
16-22 interest on the proposed bonds and all previously issued bonds
16-23 other than bonds authorized to be issued at an election held on or
16-24 before April 1, 1991, and issued before September 1, 1992, from a
16-25 tax at a rate not to exceed $0.50 per $100 of valuation. A
17-1 district that demonstrates to the attorney general that the
17-2 district's ability to comply with this subsection is contingent on
17-3 receiving state assistance may not adopt a tax rate for a year for
17-4 purposes of paying the principal of and interest on the bonds
17-5 unless the district credits to the account of the interest and
17-6 sinking fund of the bonds the amount of state assistance received
17-7 or to be received in that year.
17-8 SECTION 23. Subsection (c), Section 45.105, Education Code,
17-9 is amended to read as follows:
17-10 (c) Local school funds from district taxes, tuition fees of
17-11 students not entitled to a free education, [and] other local
17-12 sources, and state funds not designated for a specific purpose may
17-13 be used for the purposes listed for state and county available
17-14 funds and for purchasing appliances and supplies, paying insurance
17-15 premiums, paying janitors and other employees, buying school sites,
17-16 buying, building, repairing, and renting school buildings,
17-17 including acquiring school buildings and sites by leasing through
17-18 annual payments with an ultimate option to purchase, and [paying]
17-19 for other purposes [goods and services] necessary in the conduct of
17-20 the public schools determined by the board of trustees. The
17-21 accounts and vouchers for county districts must be approved by the
17-22 county superintendent. If the state available school fund in any
17-23 municipality or district is sufficient to maintain the schools in
17-24 any year for at least eight months and leave a surplus, the surplus
17-25 may be spent for the purposes listed in this subsection.
18-1 SECTION 24. Subsection (b), Section 74.066, Education Code,
18-2 is amended to read as follows:
18-3 (b) State funds for the support of the special school and
18-4 the Moody State School shall be paid from the foundation school
18-5 fund [and shall be considered by the Foundation School Fund Budget
18-6 Committee in estimating the funds needed for Foundation School
18-7 Program purposes].
18-8 SECTION 25. Section 96.707, Education Code, is amended by
18-9 adding Subsection (k) to read as follows:
18-10 (k) For each student enrolled in the academy, the academy is
18-11 entitled to allotments from the Foundation School Program under
18-12 Chapter 42 as if the academy were a school district, except that
18-13 the academy has a local share applied that is equivalent to the
18-14 local fund assignment of the Beaumont Independent School District.
18-15 SECTION 26. Subsection (b), Section 322.008, Government
18-16 Code, is amended to read as follows:
18-17 (b) The [Not later than the 1994-1995 school year, the]
18-18 general appropriations bill may [shall] include for purposes of
18-19 information the funding elements computed [adopted] by the
18-20 Legislative Budget Board [foundation school fund budget committee]
18-21 under Section 42.007 [16.256(e)], Education Code, excluding the
18-22 values for each school district calculated under Section
18-23 42.007(c)(2), Education Code [Subdivision (2) of that subsection].
18-24 If the funding elements are included, the [The] funding elements
18-25 under Section 42.007(c)(3) [16.256(e)(3)], Education Code, shall be
19-1 reported in dollar amounts per pupil.
19-2 SECTION 27. Subsection (d), Section 403.302, Government
19-3 Code, is amended to read as follows:
19-4 (d) For the purposes of this section, "taxable value" means
19-5 market value less:
19-6 (1) the total dollar amount of any exemptions of part
19-7 but not all of the value of taxable property required by the
19-8 constitution or a statute that a district lawfully granted in the
19-9 year that is the subject of the study;
19-10 (2) the total dollar amount of any exemptions granted
19-11 before May 31, 1993, within a reinvestment zone under agreements
19-12 authorized by Chapter 312, Tax Code;
19-13 (3) the total dollar amount of any captured appraised
19-14 value of property that is located in a reinvestment zone on August
19-15 31, 1999, that generates taxes paid into a tax increment fund, and
19-16 that is eligible for tax increment financing under Chapter 311, Tax
19-17 Code, under a reinvestment zone financing plan approved under
19-18 Section 311.011(d), Tax Code, before September 1, 1999;
19-19 (4) the total dollar amount of any exemptions granted
19-20 under Section 11.251, Tax Code;
19-21 (5) the difference between the market value and the
19-22 productivity value of land that qualifies for appraisal on the
19-23 basis of its productive capacity, except that the productivity
19-24 value may not exceed the fair market value of the land;
19-25 (6) the portion of the appraised value of residence
20-1 homesteads of the elderly on which school district taxes are not
20-2 imposed in the year that is the subject of the study, calculated as
20-3 if the residence homesteads were appraised at the full value
20-4 required by law;
20-5 (7) a portion of the market value of property not
20-6 otherwise fully taxable by the district at market value because of
20-7 action required by statute or the constitution of this state that,
20-8 if the tax rate adopted by the district is applied to it, produces
20-9 an amount equal to the difference between the tax that the district
20-10 would have imposed on the property if the property were fully
20-11 taxable at market value and the tax that the district is actually
20-12 authorized to impose on the property; and
20-13 (8) the market value of all tangible personal
20-14 property, other than manufactured homes, owned by a family or
20-15 individual and not held or used for the production of income.
20-16 SECTION 28. Section 11.13, Tax Code, is amended by adding
20-17 Subsection (s) to read as follows:
20-18 (s) Notwithstanding Subsection (n), an exemption under that
20-19 subsection for the 1997 tax year adopted by the board of trustees
20-20 of a school district before July 1, 1997, is valid. This
20-21 subsection expires January 1, 1999.
20-22 SECTION 29. The foundation school fund budget committee is
20-23 abolished.
20-24 SECTION 30. Sections 42.102(c), 42.256, 42.351, and
20-25 56.208(d), Education Code, are repealed.
21-1 SECTION 31. The amendment by this Act of Section 42.101,
21-2 Education Code, does not affect the change in the basic allotment
21-3 under that section made by House Bill No. 4, Acts of the 75th
21-4 Legislature, Regular Session, 1997.
21-5 SECTION 32. (a) Except as provided by Subsection (b) of
21-6 this section, this Act takes effect September 1, 1997.
21-7 (b) Section 6 of this Act takes effect September 1, 1997,
21-8 but only if the constitutional amendment proposed by House Joint
21-9 Resolution No. 4, 75th Legislature, Regular Session, 1997, is
21-10 approved by the voters. If the proposed constitutional amendment
21-11 is not approved by the voters, Section 6 of this Act has no effect.
21-12 SECTION 33. The importance of this legislation and the
21-13 crowded condition of the calendars in both houses create an
21-14 emergency and an imperative public necessity that the
21-15 constitutional rule requiring bills to be read on three several
21-16 days in each house be suspended, and this rule is hereby suspended.
S.B. No. 1873
________________________________ ________________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1873 passed the Senate on
May 8, 1997, by a viva-voce vote; May 30, 1997, Senate refused to
concur in House amendments and requested appointment of Conference
Committee; May 30, 1997, House granted request of the Senate;
June 1, 1997, Senate adopted Conference Committee Report by a
viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1873 passed the House, with
amendments, on May 27, 1997, by a non-record vote; May 30, 1997,
House granted request of the Senate for appointment of Conference
Committee; June 1, 1997, House adopted Conference Committee Report
by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
________________________________
Date
________________________________
Governor