By Bailey                                             H.B. No. 1631
         76R4268 CAS-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to penalizing school districts for failing to fully
 1-3     collect ad valorem taxes.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter E, Chapter 42, Education Code, is
 1-6     amended by adding Section 42.2531 to read as follows:
 1-7           Sec. 42.2531.  PENALTY FOR FAILURE TO FULLY COLLECT TAXES.
 1-8     (a)  As provided by the comptroller's rule, the comptroller shall
 1-9     determine for each school district the amount of taxes for purposes
1-10     of maintenance and operations that the district would have
1-11     collected in the preceding tax year if the district had collected
1-12     all of the taxes the district levied.
1-13           (b)  The comptroller shall certify to the commissioner:
1-14                 (1)  any difference between the amount determined under
1-15     Subsection (a) and the amount of taxes for purposes of maintenance
1-16     and operations the district actually collected in the preceding tax
1-17     year; and
1-18                 (2)  the percentage of the amount determined under
1-19     Subsection (a) that the district failed to collect in the preceding
1-20     tax year based on the determination under Subdivision (1).
1-21           (c)  Notwithstanding Section 42.253, the commissioner shall
1-22     reduce a district's state aid under Subchapters B and C for the
1-23     current year by one percent for each percentage over 10 percent of
1-24     taxes for purposes of maintenance and operations that the district
 2-1     failed to collect in the preceding tax year, as determined under
 2-2     Subsection (b)(2).
 2-3           (d)  A school district may appeal to the comptroller the
 2-4     comptroller's determination under Subsection (a) if the district's
 2-5     failure to collect all the taxes the district levied was due to a
 2-6     factor beyond the district's control.
 2-7           SECTION 2.  This Act takes effect September 1, 1999.
 2-8           SECTION 3.  The importance of this legislation and the
 2-9     crowded condition of the calendars in both houses create an
2-10     emergency and an imperative public necessity that the
2-11     constitutional rule requiring bills to be read on three several
2-12     days in each house be suspended, and this rule is hereby suspended.