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.