By Cuellar H.B. No. 51 76R313 JD-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the authority of a taxing unit to permit certain 1-3 persons to perform services for the unit in lieu of paying ad 1-4 valorem taxes owed to the unit. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Chapter 31, Tax Code, is amended by adding 1-7 Section 31.035 to read as follows: 1-8 Sec. 31.035. PERFORMANCE OF SERVICE IN LIEU OF PAYMENT OF 1-9 TAXES ON HOMESTEAD OF ELDERLY PERSON. (a) The governing body of a 1-10 taxing unit by order or resolution may permit an individual who is 1-11 at least 65 years of age to perform service for the taxing unit in 1-12 lieu of paying taxes imposed by the taxing unit on property owned 1-13 by the individual and occupied as the individual's residence 1-14 homestead. 1-15 (b) The governing body of the taxing unit shall determine: 1-16 (1) the number of property owners who will be 1-17 permitted to perform service for the taxing unit under this 1-18 section; and 1-19 (2) the maximum number of hours of service that a 1-20 property owner may perform for the taxing unit under this section. 1-21 (c) The governing body shall require that each property 1-22 owner permitted to perform service for the taxing unit under this 1-23 section execute a contract with the taxing unit. The contract must 1-24 be executed before the delinquency date and must: 2-1 (1) specify: 2-2 (A) the nature of the service that the property 2-3 owner will perform for the taxing unit; 2-4 (B) the facility or location where the service 2-5 will be performed; 2-6 (C) the number of hours of service the property 2-7 owner will perform; and 2-8 (D) when the property owner will perform the 2-9 service; and 2-10 (2) set out or describe the provisions of Subsections 2-11 (d), (e), and (f). 2-12 (d) For each hour of service performed for the taxing unit, 2-13 the property owner receives a credit against the taxes owed in an 2-14 amount equal to the amount that would be earned by working one hour 2-15 at the federal hourly minimum wage rate. The contract must require 2-16 the property owner to perform the service not later than one year 2-17 after the delinquency date for the taxes against which the property 2-18 owner receives credit. 2-19 (e) Taxes for which the property owner is to receive credit 2-20 under the contract do not become delinquent on the delinquency date 2-21 otherwise provided by this chapter as long as the contract is in 2-22 effect and are considered paid when the service is performed. If 2-23 the property owner fails to perform the service, or if the taxing 2-24 unit determines that the service of the property owner is 2-25 unsatisfactory, the taxing unit shall terminate the contract and 2-26 notify the property owner of the termination. The unpaid taxes for 2-27 which the property owner was to receive credit under the contract 3-1 for service not yet performed become delinquent and incur penalty 3-2 and interest provided by Section 33.01 on the later of: 3-3 (1) the delinquency date otherwise provided by this 3-4 chapter for the unpaid taxes; or 3-5 (2) the first day of the next calendar month that 3-6 begins at least 21 days after the date the taxing unit delivers 3-7 notice to the property owner that the contract has been terminated. 3-8 (f) While performing service for a taxing unit, the property 3-9 owner: 3-10 (1) is not an employee of the taxing unit; and 3-11 (2) is not entitled to any benefit, including workers' 3-12 compensation coverage, that the taxing unit provides to an employee 3-13 of the taxing unit. 3-14 (g) Property owners performing services for a taxing unit 3-15 under this section may only supplement or complement the regular 3-16 personnel of the taxing unit. A taxing unit may not reduce the 3-17 number of persons the taxing unit employs or reduce the number of 3-18 hours to be worked by employees of the taxing unit because the 3-19 taxing unit permits property owners to perform services for the 3-20 taxing unit under this section. 3-21 (h) A person performing service for a taxing unit under this 3-22 section is not entitled to indemnification from the taxing unit for 3-23 injury or property damage the person sustains or liability the 3-24 person incurs in performing service under this section. The taxing 3-25 unit is not liable for any damages arising from an act or omission 3-26 of the person in performing service under this section. 3-27 SECTION 2. Section 42.302(a), Education Code, is amended to 4-1 read as follows: 4-2 (a) Each school district is guaranteed a specified amount 4-3 per weighted student in state and local funds for each cent of tax 4-4 effort over that required for the district's local fund assignment 4-5 up to the maximum level specified in this subchapter. The amount 4-6 of state support, subject only to the maximum amount under Section 4-7 42.303, is determined by the formula: 4-8 GYA = (GL X WADA X DTR X 100) - LR 4-9 where: 4-10 "GYA" is the guaranteed yield amount of state funds to be 4-11 allocated to the district; 4-12 "GL" is the dollar amount guaranteed level of state and local 4-13 funds per weighted student per cent of tax effort, which is $21 or 4-14 a greater amount for any year provided by appropriation; 4-15 "WADA" is the number of students in weighted average daily 4-16 attendance, which is calculated by dividing the sum of the school 4-17 district's allotments under Subchapters B and C, less any allotment 4-18 to the district for transportation and 50 percent of the adjustment 4-19 under Section 42.102, by the basic allotment for the applicable 4-20 year; 4-21 "DTR" is the district enrichment and facilities tax rate of 4-22 the school district, which is determined by subtracting the amounts 4-23 specified by Subsection (b) from the sum of the total amount of 4-24 taxes collected by the school district for the applicable school 4-25 year plus an amount equal to the total of all tax credits earned 4-26 under Section 31.035, Tax Code, for that school year, and dividing 4-27 the difference by the quotient of the district's taxable value of 5-1 property as determined under Subchapter M, Chapter 403, Government 5-2 Code, divided by 100; and 5-3 "LR" is the local revenue, which is determined by multiplying 5-4 "DTR" by the quotient of the district's taxable value of property 5-5 as determined under Subchapter M, Chapter 403, Government Code, 5-6 divided by 100. 5-7 SECTION 3. The importance of this legislation and the 5-8 crowded condition of the calendars in both houses create an 5-9 emergency and an imperative public necessity that the 5-10 constitutional rule requiring bills to be read on three several 5-11 days in each house be suspended, and this rule is hereby suspended, 5-12 and that this Act take effect and be in force from and after its 5-13 passage, and it is so enacted.