By Hochberg H.B. No. 2075
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to publication of school district budget and tax rate
1-3 notices.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 44.004, Education Code, is amended to
1-6 read:
1-7 Sec. 44.004. NOTICE, HEARING AND VOTE ON BUDGET MEETING;
1-8 BUDGET ADOPTION AND TAX RATE.
1-9 (b) The president shall provide for the publication of
1-10 notice of the budget and proposed tax rate meeting in a daily,
1-11 weekly, or biweekly newspaper published in the district. If no
1-12 daily, weekly, or biweekly newspaper is published in the district,
1-13 the president shall provide for the publication of notice in at
1-14 least one newspaper of general circulation in the county in which
1-15 the district's central administration office is located. [Notice
1-16 published under this subsection is in addition to notice required
1-17 by other law.] Notice under this subsection shall be published not
1-18 earlier than the 30th day or later than the 10th day before the
1-19 date of the hearing. [A district may include the notice required
1-20 under Section 26.06, Tax Code.]
1-21 The Notice of Public Hearing to Discuss Budget and Proposed
2-1 Tax Rate may not be smaller than one-quarter page of a
2-2 standard-size or a tabloid-size newspaper, and the headline on the
2-3 notice must be in 18-point or larger type. The notice must:
2-4 (1) contain a statement in the following form:
2-5 "NOTICE OF PUBLIC HEARING TO DISCUSS BUDGET
2-6 AND PROPOSED TAX RATE
2-7 "The (name of the taxing unit) will hold a public hearing at
2-8 (time, date, year) in (name of room, building, physical location,
2-9 city, state). The purpose of this hearing is to discuss the school
2-10 district's budget which will determine the tax rate that will be
2-11 adopted. Public participation in the discussion is invited." In
2-12 reduced type shall be printed the following information: "The tax
2-13 rate that is ultimately adopted at this hearing or at a separate
2-14 hearing at a later date may not exceed the proposed rate shown
2-15 below without publication of a revised notice containing the same
2-16 information and comparisons set out below."
2-17 (2) contain the following section to be entitled:
2-18 "Comparison of Proposed Rates with Current Year's Adopted Rates",
2-19 which shall calculate the tax rates in (A-C), expressed as an
2-20 amount per $100, for columns entitled "Maintenance & Operations,"
2-21 "Interest & Sinking," and "Total":
2-22 (A) the unit's "Adopted tax rate for the
2-23 preceding year";
2-24 (B) the "Tax rate required to maintain the same
2-25 level of maintenance & operations revenue and pay debt service;"
3-1 and
3-2 (C) and the "Proposed Tax Rate;
3-3 Plus a fourth column that calculates the Total Revenue Per Student
3-4 for each row, by dividing the district taxable value of property,
3-5 as determined under Subchapter M, Chapter 403, Government Code,
3-6 divided by the number of students in weighted average daily
3-7 attendance, then dividing that number by 10,000.
3-8 This section shall contain an asterisk after each calculation
3-9 for Interest & Sinking plus an explanation at the bottom of the
3-10 section that shall say "The Interest and Sinking Tax Revenue is
3-11 used to pay for bonded indebtedness on construction and/or
3-12 equipment. The bonds, and the rate necessary to pay those bonds,
3-13 were approved by the voters of this district in elections held
3-14 (dates of elections)."
3-15 (3) contain the following section, to be entitled:
3-16 "Comparison of Proposed Levy with Last Year's Levy on Average
3-17 Residence", that will contain information, rounded to the nearest
3-18 dollar, for the previous year and the current year for the same
3-19 residence for the following categories:
3-20 (A) "Average Appraised Value of Residences";
3-21 (B) "Average Taxable Value of Residences, after
3-22 Homestead Exemptions";
3-23 (C) "Last Year's Rate versus Proposed Rate per
3-24 $100 value";
3-25 (D) "Taxes Due on Average Residence";
4-1 (4) contain the following information:
4-2 "Increase/Decrease in Taxes" expressed in dollars and cents, which
4-3 is calculated by subtracting last year's taxes due on average
4-4 residence with this year's taxes due on average residence under the
4-5 proposed rate.
4-6 (5) contain the statement in bold print: "Under state
4-7 law, the school taxes due on the homestead of anyone over the age
4-8 of 65 years old cannot be increased above the amount paid in the
4-9 first year after turning 65 years of age, regardless of changes in
4-10 tax rate."
4-11 (8) contain the following statement in bold print:
4-12 "Notice of Rollback Rate: The highest tax rate the district can
4-13 adopt before requiring voter approval via an election is (the
4-14 product of effective maintenance and operations tax rate multiplied
4-15 by 1.08 added to the current debt rate, as defined in Section
4-16 26.04, Tax Code). This election will be automatically held if the
4-17 district adopts a rate in excess of the rollback rate of (the
4-18 product of effective maintenance and operations tax rate multiplied
4-19 by 1.08 added to the current debt rate, as defined in Section
4-20 26.04, Tax Code)."
4-21 (9) contain the following section entitled: "Fund
4-22 Balances" which will include the following information:
4-23 (A) Fund Balance to be spent in this budget;
4-24 (B) Fund Balance Texas Education Agency
4-25 Recommends to be Maintained;
5-1 (C) Designated Unreserved Fund Balance for
5-2 Future Construction; and
5-3 (D) Excess Fund Balance.
5-4 (c) the comptroller by rule shall prescribe the language and
5-5 format to be used in the part of the notice required by Subsection
5-6 (b). A notice under Subsection (b) is not valid if it does not
5-7 substantially conform to the language and format prescribed by the
5-8 comptroller under this subsection.
5-9 SECTION 2. Section 26.06, Tax Code, is amended to read:
5-10 (b) All units, except school districts who shall follow
5-11 requirements in Section 44.004, Education Code, shall post a notice
5-12 regarding the public hearing. The notice of a public hearing may
5-13 not be smaller than one-quarter page of a standard-size or a
5-14 tabloid-size newspaper, and the headline on the notice must be in
5-15 18-point or larger type. The notice must:
5-16 (1) contain a statement in the following form:
5-17 "NOTICE OF PUBLIC HEARING ON TAX INCREASE
5-18 "The (name of the taxing unit) will hold a public hearing on
5-19 a proposal to increase total tax revenues from properties on the
5-20 tax roll by (percentage by which taxes to be imposed under proposed
5-21 tax rate exceed last year's levy) percent. Your individual taxes
5-22 may increase or decrease, depending on the change in the taxable
5-23 value of your property in relation to the change in taxable value
5-24 of all other property and the tax rate that is adopted.
5-25 "The public hearing will be held on (date and time) at
6-1 (meeting place).
6-2 "(Names of all members of the governing body, showing how
6-3 each voted on the proposal to consider the increase in total tax
6-4 revenues or, if one or more were absent, indicating the
6-5 absences.)"; and
6-6 (2) contain the following information:
6-7 (A) the unit's adopted tax rate for the
6-8 preceding year and the proposed tax rate, expressed as an amount
6-9 per $100;
6-10 (B) the difference, expressed as an amount per
6-11 $100 and as a percent increase or decrease, as applicable, in the
6-12 proposed tax rate compared to the adopted tax rate for the
6-13 preceding year;
6-14 (C) the average appraised value of a residence
6-15 homestead in the taxing unit in the preceding year and in the
6-16 current year; the unit's homestead exemption, other than an
6-17 exemption available only to disabled persons or persons 65 years of
6-18 age or older, applicable to that appraised value in each of those
6-19 years; and the average taxable value of a residence homestead in
6-20 the unit in each of those years, disregarding any homestead
6-21 exemption available only to disabled persons or persons 65 years of
6-22 age or older;
6-23 (D) the amount of tax that would have been
6-24 imposed by the unit in the preceding year on a residence homestead
6-25 appraised at the average appraised value of a residence homestead
7-1 in that year, disregarding any homestead exemption available only
7-2 to disabled persons or persons 65 years of age or older;
7-3 (E) the amount of tax that would be imposed by
7-4 the unit in the current year on a residence homestead appraised at
7-5 the average appraised value of a residence homestead in the current
7-6 year, disregarding any homestead exemption available only to
7-7 disabled persons or persons 65 years of age or older, if the
7-8 proposed tax rate is adopted; and
7-9 (F) the difference between the amounts of tax
7-10 calculated under Paragraphs (D) and (E), expressed in dollars and
7-11 cents and described as the annual increase or decrease, as
7-12 applicable, in the tax to be imposed by the unit on the average
7-13 residence homestead in the unit in the current year if the proposed
7-14 tax rate is adopted.
7-15 (c) The notice may be delivered by mail to each property
7-16 owner in the unit, or it may be published in a newspaper. If the
7-17 notice is published in a newspaper, it may not be in the part of
7-18 the paper in which legal notices and classified advertisements
7-19 appear.
7-20 (d) At the public hearing the governing body shall announce
7-21 the date, time, and place of the meeting at which it will vote on
7-22 the proposed tax rate to increase total tax revenues. After the
7-23 hearing, units except school districts which follow Section 44.004,
7-24 Education Code, [it] shall give notice of the meeting at which [it]
7-25 these units will vote on the proposed tax rate to increase total
8-1 tax revenues and the notice shall be in the same form as prescribed
8-2 by Subsections (b) and (c), except that it must state the
8-3 following:
8-4 "NOTICE OF VOTE ON TAX RATE
8-5 "The (name of the taxing unit) conducted a public hearing on
8-6 a proposal to increase the total tax revenues of the (name of the
8-7 taxing unit) by (percentage by which taxes to be imposed under
8-8 proposed tax rate exceed last year's levy) percent on (date and
8-9 time public hearing was conducted).
8-10 "The (governing body of the taxing unit) is scheduled to vote
8-11 on the tax rate that will result in that tax increase at a public
8-12 meeting to be held on (date and time) at (meeting place)."
8-13 (e) The meeting to vote on the increase may not be earlier
8-14 than the third day or later than the 14th day after the date of the
8-15 public hearing. The meeting must be held inside the boundaries of
8-16 the unit in a publicly owned building or, if a suitable publicly
8-17 owned building is not available, in a suitable building to which
8-18 the public normally has access. If the governing body does not
8-19 adopt a rate that would impose an amount of taxes that exceeds last
8-20 year's levy by the 14th day, it must give a new notice under
8-21 Subsection (d) before it may adopt a rate that would impose an
8-22 amount of taxes that exceeds last year's levy.
8-23 (f) The comptroller by rule shall prescribe the language and
8-24 format to be used in the part of the notice required by Subsection
8-25 (b)(2), except for school districts that follow Section 44.004,
9-1 Education Code. A notice under Subsection (b) is not valid if it
9-2 does not substantially conform to the language and format
9-3 prescribed by the comptroller under this subsection.
9-4 SECTION 3. This Act takes effect August 31, 1999.
9-5 SECTION 4. The importance of this legislation and the
9-6 crowded condition of the calendars in both houses create an
9-7 emergency and an imperative public necessity that the
9-8 constitutional rule requiring bills to be read on three several
9-9 days in each house be suspended, and this rule is hereby suspended,
9-10 and that this Act take effect and be in force from and after its
9-11 passage, and it is so enacted.