Amend HB 2075 by striking all below the enacting clause and
substituting the following:
SECTION 1. Section 44.004, Education Code, is amended to
read as follows:
Sec. 44.004. NOTICE OF BUDGET AND TAX RATE MEETING; BUDGET
ADOPTION. (a) When the budget has been prepared under Section
44.002, the president shall call a meeting of the board of trustees
for<, stating that> the purpose of adopting <the meeting is the
adoption of> a budget for the succeeding fiscal year.
(b) The president shall provide for the publication of
notice of the budget and proposed tax rate meeting in a daily,
weekly, or biweekly newspaper published in the district. If no
daily, weekly, or biweekly newspaper is published in the district,
the president shall provide for the publication of notice in at
least one newspaper of general circulation in the county in which
the district's central administrative office is located. <Notice
published under this subsection is in addition to notice required
by other law.> Notice under this subsection shall be published not
earlier than the 30th day or later than the 10th day before the
date of the hearing. <A district may include the notice required
under this subsection in a notice required under Section 26.06, Tax
Code.>
(c) The notice of public meeting to discuss and adopt the
budget and the proposed tax rate may not be smaller than
one-quarter page of a standard-size or a tabloid-size newspaper,
and the headline on the notice must be in 18-point or larger type.
Subject to Subsection (d), the notice must:
(1) contain a statement in the following form:
"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET
AND PROPOSED TAX RATE
"The (name of school district) will hold a public meeting at
(time, date, year) in (name of room, building, physical location,
city, state). The purpose of this meeting is to discuss the school
district's budget that will determine the tax rate that will be
adopted. Public participation in the discussion is invited." The
statement of the purpose of the meeting must be in bold type. In
reduced type, the notice must state: "The tax rate that is
ultimately adopted at this meeting or at a separate meeting at a
later date may not exceed the proposed rate shown below unless the
district publishes a revised notice containing the same information
and comparisons set out below and holds another public meeting to
discuss the revised notice.";
(2) contain a section entitled "Comparison of Proposed
Rates with Last Year's Rates," which must:
(A) show in rows the tax rates described by
Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
property, for columns entitled "Maintenance & Operations,"
"Interest & Sinking Fund," and "Total," which is the sum of
"Maintenance & Operations" and "Interest & Sinking Fund":
(i) the school district's "Last Year's
Rate";
(ii) the "Rate to Maintain Same Level of
Maintenance & Operations Revenue & Pay Debt Service," which:
(a) in the case of
"Maintenance & Operations," is the tax rate that, when applied to
the current taxable value for the district, as certified by the
chief appraiser under Section 26.01, Tax Code, and as adjusted to
reflect changes made by the chief appraiser as of the time the
notice is prepared, would impose taxes in an amount that, when
added to state funds to be distributed to the district under
Chapter 42, would provide the same amount of maintenance and
operations taxes and state funds distributed under Chapter 42 per
student in average daily attendance for the applicable school year
that was available to the district in the preceding school year;
and
(b) in the case of "Interest &
Sinking Fund," is the tax rate that, when applied to the current
taxable value for the district, as certified by the chief appraiser
under Section 26.01, Tax Code, and as adjusted to reflect changes
made by the chief appraiser as of the time the notice is prepared,
and when multiplied by the district's anticipated collection rate,
would impose taxes in an amount that, when added to state funds to
be distributed to the district under Chapter 46 and any excess
taxes collected to service the district's debt during the preceding
year but not used for that purpose during that year, would provide
the amount required to service the district's debt; and
(iii) the "Proposed Rate";
(B) contain fourth and fifth columns aligned
with the columns required by Paragraph (A) that show, for each row
required by Paragraph (A):
(i) the "Local Revenue per Student," which
is computed by multiplying the district's total taxable value of
property, as certified by the chief appraiser for the applicable
school year under Section 26.01, Tax Code, and as adjusted to
reflect changes made by the chief appraiser as of the time the
notice is prepared, by the total tax rate, and dividing the product
by the number of students in average daily attendance in the
district for the applicable school year; and
(ii) the "State Revenue per Student,"
which is computed by determining the amount of state aid received
or to be received by the district under Chapters 42, 43, and 46 and
dividing that amount by the number of students in average daily
attendance in the district for the applicable school year; and
(C) contain an asterisk after each calculation
for "Interest & Sinking Fund" and a footnote to the section that,
in reduced type, states "The Interest & Sinking Fund tax revenue is
used to pay for bonded indebtedness on construction, equipment, or
both. The bonds, and the tax rate necessary to pay those bonds,
were approved by the voters of this district.";
(3) contain a section entitled "Comparison of
Proposed Levy with Last Year's Levy on Average Residence," which
must:
(A) show in rows the information described by
Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
entitled "Last Year" and "This Year":
(i) "Average Market Value of Residences,"
determined using the same group of residences for each year;
(ii) "Average Taxable Value of
Residences," determined after taking into account the limitation on
the appraised value of residences under Section 23.23, Tax Code,
and after subtracting all homestead exemptions applicable in each
year, other than exemptions available only to disabled persons or
persons 65 years of age or older or their surviving spouses, and
using the same group of residences for each year;
(iii) "Last Year's Rate Versus Proposed
Rate per $100 Value"; and
(iv) "Taxes Due on Average Residence,"
determined using the same group of residences for each year; and
(B) contain the following information:
"Increase (Decrease) in Taxes" expressed in dollars and cents,
which is computed by subtracting the "Taxes Due on Average
Residence" for the preceding tax year from the "Taxes Due on
Average Residence" for the current tax year;
(4) contain the following statement in bold print:
"Under state law, the dollar amount of school taxes imposed on the
residence of a person 65 years of age or older or of the surviving
spouse of such a person, if the surviving spouse was 55 years of
age or older when the person died, may not be increased above the
amount paid in the first year after the person turned 65,
regardless of changes in tax rate or property value.";
(5) contain the following statement in bold print:
"Notice of Rollback Rate: The highest tax rate the district can
adopt before requiring voter approval at an election is (the school
district rollback rate determined under Section 26.08, Tax Code).
This election will be automatically held if the district adopts a
rate in excess of the rollback rate of (the school district
rollback rate)."; and
(6) contain a section entitled "Fund Balances," which
must include the estimated amount of interest and sinking fund
balances and the estimated amount of maintenance and operation or
general fund balances remaining at the end of the current fiscal
year that are not encumbered with or by corresponding debt
obligation, less estimated funds necessary for the operation of the
district before the receipt of the first payment under Chapter 42
in the succeeding school year.
(c-1) For purposes of the notice prescribed by Subsection
(c) for 1999, in the section of the notice prescribed by Subsection
(c)(2), immediately under the row showing the required information
for "Last Year's Rate," there shall be included:
(1) a row entitled "Less State-Funded Tax Relief"
showing for each column the amount, expressed as a tax rate, by
which the applicable tax rate in the row entitled "Last Year's
Rate" is reduced for the 1999 tax year because of the changes in
law made by SB 4, Acts of the 76th Legislature, Regular Session,
1999, as determined by the commissioner; and
(2) a row entitled "Last Year's Rate Adjusted for Tax
Relief" showing for each column the tax rate determined by
subtracting the applicable tax rate in the row entitled "Less
State-Funded Tax Relief" from the applicable tax rate in the row
entitled "Last Year's Rate."
(c-2) For purposes of the notice prescribed by Subsection
(c) for 1999, the calculations in the row for the "Rate to Maintain
Same Level of Maintenance & Operations Revenue & Pay Debt Service"
shall be made without consideration of state revenue received by
the district in the 1999-2000 school year for the pay raise for
classroom teachers, full-time librarians, full-time counselors, and
full-time school nurses enacted by the 76th Legislature. After the
title "Rate to Maintain Same Level of Maintenance & Operations
Revenue & Pay Debt Service" there shall be included a distinctive
asterisk and a related footnote to the section that, in reduced
type, states "The Rate to Maintain the Same Level of Maintenance &
Operations Revenue & Pay Debt Service does not reflect state
revenue received by the district in the 1999-2000 school year for
the pay raise for classroom teachers, full-time librarians,
full-time counselors, and full-time school nurses enacted by the
76th Legislature."
(c-3) The commissioner shall adopt emergency rules as soon
as practicable after the effective date of this section prescribing
the manner in which a school district determines the information
required by Subsection (c-1) to be included in the notice
prescribed by Subsection (c).
(c-4) The commissioner shall adopt emergency rules as soon
as practicable after the effective date of this section prescribing
the manner in which a school district makes the calculations for
the row entitled "Rate to Maintain Same Level of Maintenance &
Operations Revenue & Pay Debt Service" in accordance with
Subsection (c-2). The commissioner shall adopt emergency rules as
soon as practicable after the effective date of this section
modifying the statement to be included in the footnote prescribed
by Subsection (c-2) to include the annual dollar amount of the pay
raise described by that statement and to make any other changes to
reflect the action taken by the 76th Legislature with respect to
that pay raise.
(c-5) This subsection and Subsections (c-1), (c-2), (c-3),
and (c-4) expire May 1, 2000.
(d) The comptroller shall prescribe the language and format
to be used in the part of the notice required by Subsection (c). A
notice under Subsection (c) is not valid if it does not
substantially conform to the language and format prescribed by the
comptroller under this subsection.
(e) A person who owns taxable property in a school district
is entitled to an injunction restraining the collection of taxes by
the district if the district has not complied with the requirements
of Subsections (b), (c), and (d), and the failure to comply was not
in good faith. An action to enjoin the collection of taxes must be
filed before the date the school district delivers substantially
all of its tax bills.
(f) The board of trustees, at the meeting called for that
purpose, shall adopt a budget to cover all expenditures for the
school district for the next succeeding fiscal year. Any taxpayer
of the district may be present and participate in the meeting
<hearing>.
(g) <(d)> The budget must be adopted before the adoption of
the tax rate for the tax year in which the fiscal year covered by
the budget begins.
SECTION 2. Section 26.04, Tax Code, is amended by amending
Subsection (e) and adding Subsection (e-1) to read as follows:
(e) By August 7 or as soon thereafter as practicable, the
designated officer or employee shall submit the rates to the
governing body. He shall deliver by mail to each property owner in
the unit or publish in a newspaper in the form prescribed by the
comptroller:
(1) the effective tax rate, the rollback tax rate, and
an explanation of how they were calculated;
(2) the estimated amount of interest and sinking fund
balances and the estimated amount of maintenance and operation or
general fund balances remaining at the end of the current fiscal
year that are not encumbered with or by corresponding existing debt
obligation<, except that for a school district, estimated funds
necessary for the operation of the district prior to the receipt of
the first state education aid payment in the succeeding school year
shall be subtracted from the estimated fund balances>;
(3) a schedule of the unit's debt obligations showing:
(A) the amount of principal and interest that
will be paid to service the unit's debts in the next year from
property tax revenue, including payments of lawfully incurred
contractual obligations providing security for the payment of the
principal of and interest on bonds and other evidences of
indebtedness issued on behalf of the unit by another political
subdivision and, if the unit is created under Section 52, Article
III, or Section 59, Article XVI, Texas Constitution, payments on
debts that the unit anticipates to incur in the next calendar year;
(B) the amount by which taxes imposed for debt
are to be increased because of the unit's anticipated collection
rate; and
(C) the total of the amounts listed in
Paragraphs (A)-(B), less any amount collected in excess of the
previous year's anticipated collections certified as provided in
Subsection (b); <and>
(4) the amount of additional sales and use tax revenue
anticipated in calculations under Section 26.041;<.>
(5) in the year that a taxing unit calculates an
adjustment under Subsection (i) or (j), the unit shall publish a
schedule that includes the following elements:
(A) the name of the unit discontinuing the
department, function, or activity;
(B) the amount of property tax revenue spent by
the unit listed under Paragraph (A) to operate the discontinued
department, function, or activity in the 12 months preceding the
month in which the calculations required by this chapter are made;
and
(C) the name of the unit that operates a
distinct department, function, or activity in all or a majority of
the territory of a taxing unit that has discontinued operating the
distinct department, function, or activity; and
(6) in the year following the year in which a taxing
unit raised its rollback rate as required by Subsection (j), the
taxing unit shall publish a schedule that includes the following
elements:
(A) the amount of property tax revenue spent by
the unit to operate the department, function, or activity for which
the taxing unit raised the rollback rate as required by Subsection
(j) for the 12 months preceding the month in which the calculations
required by this chapter are made; and
(B) the amount published by the unit in the
preceding tax year under Subdivision (5)(B).
(e-1) The notice requirements imposed by Subsections
(e)(1)-(6) do not apply to a school district.
SECTION 3. Section 26.05(d), Tax Code, is amended to read as
follows:
(d) The governing body of a taxing unit other than a school
district may not adopt a tax rate that if applied to the total
taxable value would impose an amount of taxes that exceeds last
year's levy until it has held a public hearing on the proposed tax
rate and has otherwise complied with Section 26.06.
SECTION 4. Section 26.06, Tax Code, is amended by adding
Subsection (g) to read as follows:
(g) This section does not apply to a school district. A
school district shall provide notice of a public hearing on a tax
increase as required by Section 44.004, Education Code.
SECTION 5. The importance of this legislation and the
crowded condition of the calendars in both houses create an
emergency and an imperative public necessity that the
constitutional rule requiring bills to be read on three several
days in each house be suspended, and this rule is hereby suspended,
and that this Act take effect and be in force from and after its
passage, and it is so enacted.