1-1 By: Hochberg (Senate Sponsor - Cain) H.B. No. 2075
1-2 (In the Senate - Received from the House May 11, 1999;
1-3 May 12, 1999, read first time and referred to Committee on
1-4 Education; May 14, 1999, reported favorably by the following vote:
1-5 Yeas 6, Nays 0; May 14, 1999, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the public notice required to be provided by a school
1-9 district before adopting a proposed budget and tax rate.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 44.004, Education Code, is amended to
1-12 read as follows:
1-13 Sec. 44.004. NOTICE OF BUDGET AND TAX RATE MEETING; BUDGET
1-14 ADOPTION. (a) When the budget has been prepared under Section
1-15 44.002, the president shall call a meeting of the board of trustees
1-16 for[, stating that] the purpose of adopting [the meeting is the
1-17 adoption of] a budget for the succeeding fiscal year.
1-18 (b) The president shall provide for the publication of
1-19 notice of the budget and proposed tax rate meeting in a daily,
1-20 weekly, or biweekly newspaper published in the district. If no
1-21 daily, weekly, or biweekly newspaper is published in the district,
1-22 the president shall provide for the publication of notice in at
1-23 least one newspaper of general circulation in the county in which
1-24 the district's central administrative office is located. [Notice
1-25 published under this subsection is in addition to notice required
1-26 by other law.] Notice under this subsection shall be published not
1-27 earlier than the 30th day or later than the 10th day before the
1-28 date of the hearing. [A district may include the notice required
1-29 under this subsection in a notice required under Section 26.06, Tax
1-30 Code.]
1-31 (c) The notice of public meeting to discuss and adopt the
1-32 budget and the proposed tax rate may not be smaller than
1-33 one-quarter page of a standard-size or a tabloid-size newspaper,
1-34 and the headline on the notice must be in 18-point or larger type.
1-35 Subject to Subsection (d), the notice must:
1-36 (1) contain a statement in the following form:
1-37 "NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET
1-38 AND PROPOSED TAX RATE
1-39 "The (name of school district) will hold a public meeting at
1-40 (time, date, year) in (name of room, building, physical location,
1-41 city, state). The purpose of this meeting is to discuss the school
1-42 district's budget that will determine the tax rate that will be
1-43 adopted. Public participation in the discussion is invited." The
1-44 statement of the purpose of the meeting must be in bold type. In
1-45 reduced type, the notice must state: "The tax rate that is
1-46 ultimately adopted at this meeting or at a separate meeting at a
1-47 later date may not exceed the proposed rate shown below without
1-48 publication of a revised notice containing the same information and
1-49 comparisons set out below.";
1-50 (2) contain a section entitled "Comparison of Proposed
1-51 Rates with Preceding Year's Adopted Rates," which must:
1-52 (A) show in rows the tax rates described by
1-53 Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
1-54 property, for columns entitled "Maintenance & Operations Tax Rate,"
1-55 "Interest & Sinking Fund Tax Rate," and "Total Tax Rate," which is
1-56 the sum of the "Maintenance & Operations Tax Rate" and the
1-57 "Interest & Sinking Fund Tax Rate":
1-58 (i) the school district's "Adopted Tax
1-59 Rate for the Preceding Year";
1-60 (ii) the "Tax Rate Required to Maintain
1-61 the Same Level of Maintenance & Operations Revenue and Pay Debt
1-62 Service," which:
1-63 (a) in the case of the
1-64 "Maintenance & Operations Tax Rate," is the tax rate that, when
2-1 applied to the current taxable value for the district as certified
2-2 by the chief appraiser under Section 26.01, Tax Code, would impose
2-3 taxes in an amount that, when added to state funds to be
2-4 distributed to the district under Chapter 42, would provide the
2-5 same amount of maintenance and operations taxes and state funds
2-6 distributed under Chapter 42 per student in average daily
2-7 attendance for the applicable school year that was available to the
2-8 district in the preceding school year; and
2-9 (b) in the case of the
2-10 "Interest & Sinking Fund Tax Rate," is the tax rate that, when
2-11 applied to the current taxable value for the district as certified
2-12 by the chief appraiser under Section 26.01, Tax Code, and when
2-13 multiplied by the district's anticipated collection rate, would
2-14 impose taxes in an amount that, when added to state funds to be
2-15 distributed to the district under Chapter 46 and any excess taxes
2-16 collected to service the district's debt during the preceding year
2-17 but not used for that purpose during that year, would provide the
2-18 amount required to service the district's debt; and
2-19 (iii) the "Proposed Tax Rate";
2-20 (B) contain fourth and fifth columns aligned
2-21 with the columns required by Paragraph (A) that show, for each row
2-22 required by Paragraph (A):
2-23 (i) the "Local Revenue per Student," which
2-24 is computed by multiplying the district's total taxable value of
2-25 property, as certified by the chief appraiser for the applicable
2-26 school year under Section 26.01, Tax Code, by the "Total Tax Rate,"
2-27 and dividing the product by the number of students in average daily
2-28 attendance in the district for the applicable school year; and
2-29 (ii) the "State Revenue per Student,"
2-30 which is computed by determining the amount of state aid received
2-31 or to be received by the district under Chapters 42, 43, and 46 and
2-32 dividing that amount by the number of students in average daily
2-33 attendance in the district for the applicable school year; and
2-34 (C) contain an asterisk after each calculation
2-35 for an "Interest & Sinking Fund Tax Rate" and a footnote to the
2-36 section that says "The Interest & Sinking Fund Tax Revenue is used
2-37 to pay for bonded indebtedness on construction, equipment, or both.
2-38 The bonds, and the tax rate necessary to pay those bonds, were
2-39 approved by the voters of this district in (an election or
2-40 elections) held (dates of election or elections).";
2-41 (3) contain a section entitled "Comparison of
2-42 Proposed Levy with Last Year's Levy on Average Residence
2-43 Homestead," which must:
2-44 (A) show in rows the information described by
2-45 Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
2-46 entitled "Preceding Tax Year" and "Current Tax Year":
2-47 (i) "Average Appraised Value of Residence
2-48 Homesteads," determined using the same group of residences for each
2-49 year;
2-50 (ii) "Average Taxable Value of Residence
2-51 Homesteads, after Homestead Exemptions," determined using the same
2-52 group of residences for each year;
2-53 (iii) "Last Year's Rate Versus Proposed
2-54 Rate per $100 of Property Value"; and
2-55 (iv) "Taxes Imposed on Average Residence
2-56 Homestead," determined using the same group of residences for each
2-57 year; and
2-58 (B) contain the following information:
2-59 "Increase (Decrease) in Taxes" expressed in dollars and cents,
2-60 which is computed by subtracting the "Taxes Imposed on Average
2-61 Residence Homestead" for the preceding tax year from the "Taxes
2-62 Imposed on Average Residence Homestead" for the current tax year;
2-63 (4) contain the following statement in bold print:
2-64 "Under state law, the dollar amount of school taxes imposed on the
2-65 residence homestead of a person 65 years of age or older or of the
2-66 surviving spouse of such a person, if the surviving spouse was 55
2-67 years of age or older when the person died, may not be increased
2-68 above the amount paid in the first year after the person turned 65,
2-69 regardless of changes in tax rate.";
3-1 (5) contain the following statement in bold print:
3-2 "Notice of Rollback Rate: The highest tax rate the district can
3-3 adopt before requiring voter approval at an election is (the school
3-4 district rollback rate determined under Section 26.08, Tax Code).
3-5 This election will be automatically held if the district adopts a
3-6 rate in excess of the rollback rate of (the school district
3-7 rollback rate)."; and
3-8 (6) contain a section entitled "Fund Balances," which
3-9 must include:
3-10 (A) the estimated total fund balances that are
3-11 not encumbered by a corresponding debt obligation and that will be
3-12 left in the district's property tax accounts at the end of the
3-13 fiscal year; or
3-14 (B) the estimated fund balances in the following
3-15 categories that cumulatively equal the amount described by
3-16 Paragraph (A):
3-17 (i) fund balances to be spent in the
3-18 budget for the next fiscal year;
3-19 (ii) fund balances designated by the board
3-20 of trustees at a public meeting to be set aside for construction,
3-21 cash flow, or other specified purposes; and
3-22 (iii) other nondesignated fund balances.
3-23 (d) The comptroller by rule shall prescribe the language and
3-24 format to be used in the part of the notice required by Subsection
3-25 (c). A notice under Subsection (c) is not valid if it does not
3-26 substantially conform to the language and format prescribed by the
3-27 comptroller under this subsection.
3-28 (e) The board of trustees, at the meeting called for that
3-29 purpose, shall adopt a budget to cover all expenditures for the
3-30 school district for the next succeeding fiscal year. Any taxpayer
3-31 of the district may be present and participate in the meeting
3-32 [hearing].
3-33 (f) [(d)] The budget must be adopted before the adoption of
3-34 the tax rate for the tax year in which the fiscal year covered by
3-35 the budget begins.
3-36 SECTION 2. Section 26.05(d), Tax Code, is amended to read as
3-37 follows:
3-38 (d) The governing body may not adopt a tax rate that if
3-39 applied to the total taxable value would impose an amount of taxes
3-40 that exceeds last year's levy until it has held a public hearing on
3-41 the proposed tax rate and:
3-42 (1) if the taxing unit is not a school district, has
3-43 otherwise complied with Section 26.06; or
3-44 (2) if the taxing unit is a school district, has
3-45 complied with Section 44.004, Education Code.
3-46 SECTION 3. Section 26.06, Tax Code, is amended by adding
3-47 Subsection (g) to read as follows:
3-48 (g) This section does not apply to a school district. A
3-49 school district shall provide notice of a public meeting on a tax
3-50 increase as required by Section 44.004, Education Code.
3-51 SECTION 4. This Act takes effect September 1, 1999.
3-52 SECTION 5. The importance of this legislation and the
3-53 crowded condition of the calendars in both houses create an
3-54 emergency and an imperative public necessity that the
3-55 constitutional rule requiring bills to be read on three several
3-56 days in each house be suspended, and this rule is hereby suspended.
3-57 * * * * *