By Bivins S.B. No. 1920
75R9626 ESH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to state financing of public school facilities and to the
1-3 cost of an attendance credit under the Foundation School Program.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Title 2, Education Code, is amended by adding
1-6 Chapter 46 to read as follows:
1-7 CHAPTER 46. SCHOOL FACILITIES ALLOTMENT
1-8 Sec. 46.001. SCHOOL FACILITIES ALLOTMENT. (a) For each
1-9 year, a school district is guaranteed a specified amount per
1-10 student in state and local funds for each cent of tax effort, up to
1-11 the maximum rate under Subsection (b), to pay the principal of and
1-12 interest on eligible bonds. The amount of state support is
1-13 determined by the formula:
1-15 where:
1-16 "FYA" is the guaranteed facilities yield amount of state
1-17 funds allocated to the district for the year;
1-18 "FYL" is the dollar amount guaranteed level of state and
1-19 local funds per student per cent of tax effort, which is $28 or a
1-20 greater amount for any year provided by appropriation;
1-21 "ADA" is the number of students in average daily attendance
1-22 in the district;
1-23 "BTR" is the district's bond tax rate for the current year,
1-24 which is determined by dividing the amount of taxes budgeted to be
2-1 collected by the district for payment of eligible bonds by the
2-2 quotient of the district's taxable value of property as determined
2-3 under Subchapter M, Chapter 403, Government Code, divided by 100;
2-4 and
2-5 "DPV" is the district's taxable value of property as
2-6 determined under Subchapter M, Chapter 403, Government Code.
2-7 (b) For purposes of this section, the bond tax rate under
2-8 Subsection (a) may not exceed the lesser of:
2-9 (1) the rate necessary for the current year, using
2-10 state funds under Subsection (a), to make payments of principal and
2-11 interest on the bonds for which the tax is pledged; or
2-12 (2) $0.25 per $100 of valuation.
2-13 (c) Bonds are eligible to be paid with state and local funds
2-14 under this section if:
2-15 (1) taxes to pay the principal of and interest on the
2-16 bonds were first levied in the 1997-1998 school year or a later
2-17 school year;
2-18 (2) the bonds are guaranteed by the permanent school
2-19 fund as provided by Subchapter C, Chapter 45;
2-20 (3) the bonds do not have a weighted average maturity
2-21 of less than eight years and may not be called for redemption
2-22 earlier than 10 years after the date of issuance; and
2-23 (4) the bonds are not issued to refund bonds described
2-24 by Section 46.002(e)(1).
2-25 (d) A district may use state funds received under this
2-26 section only to pay the principal of and interest on the bonds for
2-27 which the district received the funds.
3-1 (e) The board of trustees and voters of a school district
3-2 shall determine district needs concerning construction,
3-3 acquisition, renovation, or improvement of school facilities.
3-4 Sec. 46.002. EXISTING SCHOOL FACILITIES ALLOTMENT. (a) For
3-5 each year, a school district is guaranteed a specified amount per
3-6 student in state and local funds for each cent of tax effort, up to
3-7 the maximum rate under Subsection (c), to pay the principal of and
3-8 interest on eligible bonds. The amount of state support is
3-9 determined by the formula:
3-11 where:
3-12 "EFYA" is the guaranteed yield amount of state funds
3-13 allocated to the district for the year;
3-14 "EFYL" is the dollar amount guaranteed level of state and
3-15 local funds per student per cent of tax effort, which is equal to
3-16 the quotient of the statewide average property value per student
3-17 for the final fiscal year of the preceding state fiscal biennium
3-18 divided by 10,000;
3-19 "GR" is the district's growth rate, which is the greater of
3-20 one or the quotient of the district's enrollment, as of a date
3-21 determined by the commissioner, in the preceding school year
3-22 divided by the district's enrollment in the school year that began
3-23 five years before the preceding school year;
3-24 "ADA" is the number of students in average daily attendance
3-25 in the district;
3-26 "EBTR" is the district's bond tax rate for the current year,
3-27 which is determined by subtracting the amount of taxes collected by
4-1 the district for payment of eligible bonds at an effective tax rate
4-2 of $0.25 per $100 of valuation from the total amount of taxes
4-3 collected by the district for payment of eligible bonds and
4-4 dividing the difference by the quotient of the district's taxable
4-5 value of property as determined under Subchapter M, Chapter 403,
4-6 Government Code, divided by 100; and
4-7 "DPV" is the district's taxable value of property as
4-8 determined under Subchapter M, Chapter 403, Government Code, for
4-9 the final fiscal year of the preceding state fiscal biennium.
4-10 (b) For purposes of Subsection (a), the statewide average
4-11 property value per student is the quotient of the total taxable
4-12 value of property in the state as determined under Subchapter M,
4-13 Chapter 403, Government Code, divided by the total average daily
4-14 attendance in the state.
4-15 (c) The bond tax rate under Subsection (a) may not exceed
4-16 the rate necessary for the current year, using state funds under
4-17 Subsection (a), to make payments of principal and interest on the
4-18 bonds for which the tax is pledged.
4-19 (d) To be entitled to funds under this section, a school
4-20 district must have imposed a tax for payment of principal and
4-21 interest on bonds at an effective rate in excess of $0.25 per $100
4-22 of valuation in the final year of the preceding state fiscal
4-23 biennium.
4-24 (e) Bonds are eligible to be paid with state and local funds
4-25 under this section only if:
4-26 (1) taxes to pay the principal of and interest on the
4-27 bonds were first levied in the 1996-1997 school year or an earlier
5-1 school year; or
5-2 (2) the bonds are issued to refund bonds described by
5-3 Subdivision (1).
5-4 (f) A district may use state funds received under this
5-5 section only to pay the principal of and interest on the bonds for
5-6 which the district received the funds.
5-7 Sec. 46.003. REFUNDING BONDS. A school district may use
5-8 state funds received under this chapter to pay the principal of and
5-9 interest on refunding bonds that:
5-10 (1) are issued to refund bonds eligible under Section
5-11 46.001 or 46.002;
5-12 (2) do not have a final maturity date later than the
5-13 final maturity date of the bonds being refunded;
5-14 (3) may not be called for redemption earlier than the
5-15 earliest call date of the bonds being refunded; and
5-16 (4) result in a present value savings, which is
5-17 determined by computing the net present value of the difference
5-18 between each scheduled payment on the original bonds and each
5-19 scheduled payment on the refunding bonds. The present value
5-20 savings shall be calculated at the true interest cost of the
5-21 refunding bonds.
5-22 Sec. 46.004. PAYMENT OF SCHOOL FACILITIES ALLOTMENTS.
5-23 (a) For each school year, the commissioner shall determine the
5-24 amount of money to which each school district is entitled under
5-25 Sections 46.001 and 46.002.
5-26 (b) If the amount appropriated for purposes of Sections
5-27 46.001 and 46.002 for a year is less than the total amount
6-1 determined under Subsection (a) for that year, the commissioner
6-2 shall:
6-3 (1) transfer from the Foundation School Program to the
6-4 school facilities program the amount by which the total amount
6-5 determined under Subsection (a) exceeds the amount appropriated;
6-6 and
6-7 (2) reduce each district's foundation school fund
6-8 allocations in the manner provided by Section 42.253.
6-9 (c) Warrants for payments under this chapter shall be
6-10 approved and transmitted to school district treasurers or
6-11 depositories in the same manner as warrants for payments under
6-12 Chapter 42.
6-13 (d) Payments under this chapter shall be made semiannually
6-14 on dates selected by the school district and approved by the
6-15 commissioner to enable the district to meet scheduled bond
6-16 payments.
6-17 (e) Section 42.258 applies to payments under this chapter.
6-18 Sec. 46.005. SALE OF SCHOOL FACILITY FINANCED WITH SCHOOL
6-19 FACILITIES ALLOTMENT. (a) If a school facility financed by bonds
6-20 paid with state and local funds under Section 46.001 is sold before
6-21 the bonds are fully paid, the school district shall send to the
6-22 comptroller an amount equal to the district's net proceeds from the
6-23 sale multiplied by a percentage determined by dividing the amount
6-24 of state funds under this subchapter used to pay the principal of
6-25 and interest on the bonds by the total amount of principal and
6-26 interest paid on the bonds with funds other than the proceeds of
6-27 the sale.
7-1 (b) In this section, "net proceeds" means the difference
7-2 between the total amount received from the sale less:
7-3 (1) the amount necessary to fully pay the outstanding
7-4 principal of and interest on the bonds; and
7-5 (2) the school district's costs of the sale, as
7-6 approved by the commissioner.
7-7 SECTION 2. Section 41.093, Education Code, is amended to
7-8 read as follows:
7-9 Sec. 41.093. COST. The cost of each credit is an amount
7-10 equal to the greater of:
7-11 (1) the amount of the district's maintenance and
7-12 operations [total] tax revenue per student in weighted average
7-13 daily attendance for the school year for which the contract is
7-14 executed; or
7-15 (2) the amount of the statewide district average of
7-16 maintenance and operations [total] tax revenue per student in
7-17 weighted average daily attendance for the school year preceding the
7-18 school year for which the contract is executed.
7-19 SECTION 3. Section 42.302(b), Education Code, is amended to
7-20 read as follows:
7-21 (b) In computing the district enrichment and facilities tax
7-22 rate of a school district, the total amount of taxes collected by
7-23 the school district does not include the amount of:
7-24 (1) the district's local fund assignment under Section
7-25 42.252; [or]
7-26 (2) taxes collected to pay the local share of the cost
7-27 of an instructional facility for which the district receives state
8-1 assistance under Subchapter H; or
8-2 (3) taxes collected to pay bonds that are being paid
8-3 with state and local funds under Chapter 46.
8-4 SECTION 4. Section 45.061, Education Code, is amended to
8-5 read as follows:
8-6 Sec. 45.061. REIMBURSEMENT OF PERMANENT SCHOOL FUND. (a)
8-7 If the commissioner orders payment from the permanent school fund
8-8 on behalf of a school district, the commissioner shall direct the
8-9 comptroller to withhold the amount paid, plus interest, from the
8-10 first state money payable to the school district, other than money
8-11 to which the school district is entitled under Chapter 46. The
8-12 amount withheld shall be deposited to the credit of the permanent
8-13 school fund.
8-14 (b) If the commissioner orders payment from the permanent
8-15 school fund in connection with bonds that were, before default,
8-16 being paid with state and local funds under Chapter 46 and the
8-17 commissioner finds the default is caused by the failure to
8-18 appropriate sufficient funds to make a payment to the district
8-19 under Section 46.004, the commissioner shall:
8-20 (1) withhold under Subsection (a) only that portion of
8-21 the amount paid from the permanent school fund that is
8-22 proportionate to the school district's local share under Chapter
8-23 46; and
8-24 (2) transfer from the foundation school fund to the
8-25 permanent school fund that portion of the amount paid from the
8-26 permanent school fund that is proportionate to the state's share
8-27 under Chapter 46.
9-1 (c) In accordance with the rules of the board, the
9-2 commissioner may authorize reimbursement to the permanent school
9-3 fund with interest in a manner other than that provided by this
9-4 section.
9-5 SECTION 5. This Act takes effect September 1, 1997.
9-6 SECTION 6. The importance of this legislation and the
9-7 crowded condition of the calendars in both houses create an
9-8 emergency and an imperative public necessity that the
9-9 constitutional rule requiring bills to be read on three several
9-10 days in each house be suspended, and this rule is hereby suspended.