By Smith                                              H.B. No. 2544
         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 the residential homestead property tax exemption and
 1-3     the calculation of state aid.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 42.2511, Subchapter E, Chapter 42,
 1-6     Education Code, is amended to read as follows:
 1-7           Sec. 42.2511.  COMPUTATION OF STATE AID FOR 1999-2000 AND
 1-8     2000-2001 [1997-1998] SCHOOL YEARS; ADDITIONAL STATE AID.  [(a)
 1-9     Notwithstanding any other provision of this chapter, in computing
1-10     state aid for the 1997-1998 school year, a school district's
1-11     taxable value of property under Subchapter M, Chapter 403,
1-12     Government Code, is determined as if the increase in the homestead
1-13     exemption under Section 1-b(c), Article VIII, Texas Constitution,
1-14     and the additional limitation on tax increases under Section 1-b(d)
1-15     of that article, as proposed by H.J.R. No. 4, 75th Legislature,
1-16     Regular Session, 1997, had been in effect for the 1996 tax year.]
1-17           (a) [(b)]  Notwithstanding any other provision of this
1-18     chapter, [F]for the 1999-2000 [1997-1998] and 2000-2001 [1998-1999]
1-19     school years, a school district is entitled to additional state aid
1-20     to the extent that state aid under this chapter based on the
1-21     determination of the school district's taxable value of property as
 2-1     provided under Subchapter M. Chapter 403, Government Code, [by
 2-2     Subsection (a)] does not fully compensate the district for ad
 2-3     valorem tax revenue that would have been lost due to the increase
 2-4     in the homestead exemption under Section 1-b(c). Article VIII,
 2-5     Texas Constitution, and the additional limitation on tax increases
 2-6     under Section 1-b(d) of that article [if the increased exemption
 2-7     and additional limitation had been in effect for the 1996 tax
 2-8     year].  The commissioner, using information provided by the
 2-9     comptroller, shall compute the amount of additional state aid to
2-10     which a district is entitled under this subsection.  A
2-11     determination by the commissioner under this subsection is final
2-12     and may not be appealed.
2-13           (b) [(c)]  This section expires September 1, 2001 [1999].
2-14           SECTION 2.  This Act takes effect September 1, 1999.
2-15           SECTION 3.  The importance of this legislation and the
2-16     crowded condition of the calendars in both houses create an
2-17     emergency and an imperative public necessity that the
2-18     constitutional rule requiring bills to be read on three several
2-19     days in each house be suspended, and this rule is hereby suspended,
2-20     and that this Act that effect and be in force from and after its
2-21     passage, and it is so enacted.