By: Bivins, et al. S.B. No. 4
A BILL TO BE ENTITLED
AN ACT
1-1 relating to public school finance and to public education.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Subsection (a), Section 41.002, Education Code,
1-4 is amended to read as follows:
1-5 (a) A school district may not have a wealth per student that
1-6 exceeds $300,000 [$280,000].
1-7 SECTION 2. Subsections (b) through (f), Section 41.002,
1-8 Education Code, are amended to read as follows:
1-9 (b) For [Except as provided by Subsection (c), for] purposes
1-10 of this chapter, the commissioner shall adjust, in accordance with
1-11 Section 42.2521 [by the amount of the decline], the taxable values
1-12 of a school district that, due to factors beyond the control of the
1-13 board of trustees, experiences a rapid decline [from the preceding
1-14 year] in the tax base used in calculating taxable values in excess
1-15 of four percent of the tax base used in the preceding year [that is
1-16 beyond the control of the board of trustees of the district].
1-17 (c) Notwithstanding Subsection (a), in accordance with a
1-18 determination of the commissioner, the wealth per student that a
1-19 school district may have after exercising an option under Section
1-20 41.003(2) or (3) may not be less than the amount needed to maintain
1-21 state and local revenue in an amount equal to state and local
1-22 revenue per weighted student for maintenance and operation of the
1-23 district for the 1992-1993 school year, adjusted in accordance with
1-24 Subsection (d), less the district's current year distribution per
2-1 weighted student from the available school fund, other than amounts
2-2 distributed under Chapter 31, if the district actually levies a tax
2-3 for maintenance and operation of the district at a rate of $1.50 on
2-4 the $100 valuation of taxable property.
2-5 (d) For purposes of Subsection (c), the commissioner shall
2-6 adjust the amount of a school district's state and local revenue
2-7 per weighted student for maintenance and operation of the district
2-8 for the 1992-1993 school year by multiplying that amount by the
2-9 quotient of the equalized wealth level divided by 280,000. [The
2-10 amount of money necessary to replace funds made unavailable to the
2-11 Foundation School Program by operation of Subsection (b) may be
2-12 paid only from funds specifically appropriated for that purpose.
2-13 If a sufficient amount of money is not appropriated to fully
2-14 replace funds made unavailable to the Foundation School Program by
2-15 operation of Subsection (b), the adjustment to the taxable values
2-16 of property in each district to which Subsection (b) applies shall
2-17 be modified proportionately to the extent necessary so that the
2-18 amount of funds made unavailable is equal to the amount
2-19 appropriated to replace those funds.]
2-20 (e) Notwithstanding Subsection (a), [for the 1997-1998,
2-21 1998-1999, and 1999-2000 school years,] in accordance with a
2-22 determination of the commissioner, the wealth per student that a
2-23 school district may have after exercising an option under Section
2-24 41.003(2) or (3) may not be less than the amount needed to maintain
2-25 state and local revenue in an amount equal to state and local
2-26 revenue per weighted student for maintenance and operation of the
2-27 district for the 1992-1993 school year less the district's current
3-1 year distribution per weighted student from the available school
3-2 fund, other than amounts distributed under Chapter 31, if the
3-3 district imposes an effective tax rate for maintenance and
3-4 operation of the district equal to the greater of the district's
3-5 current tax rate or $1.50 on the $100 valuation of taxable
3-6 property. Subsection (c) does not apply to a district to which
3-7 this subsection applies. [This subsection expires September 1,
3-8 2000.]
3-9 (f) For purposes of Subsection (e), a school district's
3-10 effective tax rate is determined by dividing the total amount of
3-11 taxes collected by the district for the applicable school year less
3-12 any amounts paid into a tax increment fund under Chapter 311, Tax
3-13 Code, by the quotient of the district's taxable value of property,
3-14 as determined under Subchapter M, Chapter 403, Government Code,
3-15 divided by 100. [This subsection expires September 1, 2000.]
3-16 SECTION 3. Section 42.101, Education Code, is amended to
3-17 read as follows:
3-18 Sec. 42.101. BASIC ALLOTMENT. For each student in average
3-19 daily attendance, not including the time students spend each day in
3-20 special education programs in an instructional arrangement other
3-21 than mainstream or career and technology education programs, for
3-22 which an additional allotment is made under Subchapter C, a
3-23 district is entitled to an allotment of $2,435 [$2,387]. A greater
3-24 amount for any school year may be provided by appropriation.
3-25 SECTION 4. Subchapter B, Chapter 42, Education Code, is
3-26 amended by adding Section 42.106 to read as follows:
3-27 Sec. 42.106. ADJUSTED PROPERTY VALUE FOR DISTRICTS NOT
4-1 OFFERING ALL GRADE LEVELS. For purposes of this chapter, the
4-2 taxable value of property of a school district that contracts for
4-3 students residing in the district to be educated in another
4-4 district under Section 25.039(a) is adjusted by applying the
4-5 formula:
4-6 ADPV = DPV - (TN/.015)
4-7 where:
4-8 "ADPV" is the district's adjusted taxable value of property;
4-9 "DPV" is the taxable value of property in the district for
4-10 the preceding tax year determined under Subchapter M, Chapter 403,
4-11 Government Code; and
4-12 "TN" is the total amount of tuition required to be paid by
4-13 the district under Section 25.039 for the school year for which the
4-14 adjustment is made.
4-15 SECTION 5. Section 42.155, Education Code, is amended by
4-16 amending Subsection (d) and adding Subsection (k) to read as
4-17 follows:
4-18 (d) A district or county may apply for and on approval of
4-19 the commissioner receive an additional amount of up to 10 percent
4-20 of its regular transportation allotment to be used for the
4-21 transportation of children living within two miles of the school
4-22 they attend who would be subject to hazardous [traffic] conditions
4-23 if they walked to school. Each board of trustees shall provide to
4-24 the commissioner the definition of hazardous conditions applicable
4-25 to that district and shall identify the specific hazardous areas
4-26 for which the allocation is requested. A hazardous condition
4-27 exists where no safe walkway is provided or where [and] children
5-1 must walk along or cross a freeway or expressway, an underpass, an
5-2 overpass or a bridge, an uncontrolled major traffic artery, an
5-3 industrial or commercial area, a deserted area or an area where the
5-4 crime rate is high, or another comparable condition.
5-5 (k) A district or county may not receive an allotment for
5-6 the transportation of children under Subsection (d) who must walk
5-7 along or cross a deserted area or an area where the crime rate is
5-8 high that exceeds two percent of the district's or county's regular
5-9 transportation allotment.
5-10 SECTION 6. Effective September 1, 2000, Subchapter C,
5-11 Chapter 42, Education Code, is amended by adding Section 42.158 to
5-12 read as follows:
5-13 Sec. 42.158. NEW INSTRUCTIONAL FACILITY ALLOTMENT. (a) A
5-14 school district is entitled to an additional allotment as provided
5-15 by this section for operational expenses associated with opening a
5-16 new instructional facility.
5-17 (b) For the first school year in which students attend a new
5-18 instructional facility, a school district is entitled to an
5-19 allotment of $500 for each student in average daily attendance at
5-20 the facility. For the second school year in which students attend
5-21 that instructional facility, a school district is entitled to an
5-22 allotment of $500 for each additional student in average daily
5-23 attendance at the facility.
5-24 (c) For purposes of this section, the number of additional
5-25 students in average daily attendance at a facility is the
5-26 difference between the number of students in average daily
5-27 attendance in the current year at that facility and the number of
6-1 students in average daily attendance at that facility in the
6-2 preceding year.
6-3 (d) The amount appropriated for allotments under this
6-4 section may not exceed $50 million in a school year. If the total
6-5 amount of allotments to which districts are entitled under this
6-6 section for a school year exceeds the amount appropriated for
6-7 allotments under this section, the commissioner shall reduce each
6-8 district's allotment under this section in the manner provided by
6-9 Section 42.253(h).
6-10 (e) The commissioner may adopt rules necessary to implement
6-11 this section.
6-12 (f) In this section, "instructional facility" has the
6-13 meaning assigned by Section 46.001.
6-14 SECTION 7. Subsection (a), Section 42.251, Education Code,
6-15 is amended to read as follows:
6-16 (a) The sum of the basic allotment under Subchapter B and
6-17 the special allotments under Subchapter C, computed in accordance
6-18 with this chapter, constitute the tier one allotments. The sum of
6-19 the tier one allotments, the guaranteed yield allotments under
6-20 Subchapter F, and assistance provided under the school facilities
6-21 tier [assistance program] under Subchapter I [H], computed in
6-22 accordance with this chapter, constitute the total cost of the
6-23 Foundation School Program.
6-24 SECTION 8. Section 42.2511, Education Code, is amended to
6-25 read as follows:
6-26 Sec. 42.2511. [COMPUTATION OF STATE AID FOR 1997-1998 SCHOOL
6-27 YEAR;] ADDITIONAL STATE AID FOR 1999-2000 AND 2000-2001 SCHOOL
7-1 YEARS. (a) Notwithstanding any other provision of this chapter,
7-2 for [in computing state aid for the 1997-1998 school year, a school
7-3 district's taxable value of property under Subchapter M, Chapter
7-4 403, Government Code, is determined as if the increase in the
7-5 homestead exemption under Section 1-b(c), Article VIII, Texas
7-6 Constitution, and the additional limitation on tax increases under
7-7 Section 1-b(d) of that article, as proposed by H.J.R. No. 4, 75th
7-8 Legislature, Regular Session, 1997, had been in effect for the 1996
7-9 tax year.]
7-10 [(b) For] the 1999-2000 and 2000-2001 [1997-1998 and
7-11 1998-1999] school years, a school district is entitled to
7-12 additional state aid to the extent that state aid under this
7-13 chapter based on the determination of the school district's taxable
7-14 value of property as provided under Subchapter M, Chapter 403,
7-15 Government Code, [by Subsection (a)] does not fully compensate the
7-16 district for ad valorem tax revenue [that would have been] lost due
7-17 to the increase in the homestead exemption under Section 1-b(c),
7-18 Article VIII, Texas Constitution, as proposed by H.J.R. No. 4, Acts
7-19 of the 75th Legislature, Regular Session, 1997, and the additional
7-20 limitation on tax increases under Section 1-b(d), Article VIII,
7-21 Texas Constitution, as proposed by H.J.R. No. 4, Acts of the 75th
7-22 Legislature, Regular Session, 1997 [if the increased exemption and
7-23 additional limitation had been in effect for the 1996 tax year].
7-24 The commissioner, using information provided by the comptroller,
7-25 shall compute the amount of additional state aid to which a
7-26 district is entitled under this subsection. A determination by the
7-27 commissioner under this subsection is final and may not be
8-1 appealed.
8-2 (b) [(c)] This section expires September 1, 2001 [1999].
8-3 SECTION 9. Subchapter E, Chapter 42, Education Code, is
8-4 amended by adding Section 42.2521 to read as follows:
8-5 Sec. 42.2521. ADJUSTMENT FOR RAPID DECLINE IN TAXABLE VALUE
8-6 OF PROPERTY. (a) For purposes of Chapter 41 and this chapter,
8-7 the commissioner may adjust the taxable value of property in a
8-8 school district that, due to factors beyond the control of the
8-9 board of trustees, experiences a rapid decline in the tax base used
8-10 in calculating taxable values in excess of four percent of the tax
8-11 base used in the preceding year.
8-12 (b) The commissioner, to the extent money specifically
8-13 authorized to be used for that purpose is available, may adjust the
8-14 district's taxable values for such losses in value to reflect the
8-15 local current year taxable value. To the extent that a sufficient
8-16 amount of money is not available to fund all adjustments under this
8-17 section, the commissioner shall reduce adjustments in the manner
8-18 provided by Section 42.253(h) so that the total amount of
8-19 adjustments equals the amount of money available to fund the
8-20 adjustments.
8-21 (c) A decision of the commissioner under this section is
8-22 final. The commissioner shall first apply available funds to the
8-23 purposes of Subsection (a) and then to Subsection (b). An
8-24 adjustment under Subsection (b) is contingent upon a determination
8-25 by the commissioner that sufficient funds are available for
8-26 purposes of Subsection (a) for both years of the current state
8-27 fiscal biennium.
9-1 SECTION 10. Section 42.253, Education Code, is amended by
9-2 amending Subsections (a) and (c) and adding Subsection (e-1) to
9-3 read as follows:
9-4 (a) For each school year the commissioner shall determine:
9-5 (1) the amount of money to which a school district is
9-6 entitled under Subchapters B and C;
9-7 (2) the amount of money to which a school district is
9-8 entitled under Subchapter F;
9-9 (3) the amount of money to which a school district is
9-10 entitled under Subchapter I;
9-11 (4) the amount of money allocated to the district from
9-12 the available school fund;
9-13 (5) [(4)] the amount of each district's tier one local
9-14 share under Section 42.252; and
9-15 (6) [(5)] the amount of each district's tier two local
9-16 share under Section 42.302.
9-17 (c) Each school district is entitled to an amount equal to
9-18 the difference for that district between the sum of Subsections
9-19 (a)(1), [and] (a)(2), and (a)(3) and the sum of Subsections
9-20 [(a)(3),] (a)(4), [and] (a)(5), and (a)(6).
9-21 (e-1) For the 1999-2000 and 2000-2001 school years, in
9-22 accordance with rules adopted by the commissioner, the commissioner
9-23 shall recompute the limit authorized under Subsection (e) for each
9-24 school district that receives assistance under Subchapter I based
9-25 on taxes in connection with which the district formerly received
9-26 assistance under Subchapter F. A decision of the commissioner
9-27 under this subsection is final and may not be appealed. This
10-1 subsection expires September 1, 2001.
10-2 SECTION 11. Effective September 1, 1999, Section 42.302,
10-3 Education Code, is amended to read as follows:
10-4 Sec. 42.302. Allotment. (a) Each school district is
10-5 guaranteed a specified amount per weighted student in state and
10-6 local funds for each cent of tax effort over that required for the
10-7 district's local fund assignment up to the maximum level specified
10-8 in this subchapter. The amount of state support, subject only to
10-9 the maximum amount under Section 42.303, is determined by the
10-10 formula:
10-11 GYA = (GL X WADA X DTR X 100) - LR
10-12 where:
10-13 "GYA" is the guaranteed yield amount of state funds to be
10-14 allocated to the district;
10-15 "GL" is the dollar amount guaranteed level of state and local
10-16 funds per weighted student per cent of tax effort, which is $23.10
10-17 [$21] or a greater amount for any year provided by appropriation;
10-18 "WADA" is the number of students in weighted average daily
10-19 attendance, which is calculated by dividing the sum of the school
10-20 district's allotments under Subchapters B and C, less any allotment
10-21 to the district for transportation and 50 percent of the adjustment
10-22 under Section 42.102, by the basic allotment for the applicable
10-23 year;
10-24 "DTR" is the district enrichment and facilities tax rate of
10-25 the school district, which is determined by subtracting the amounts
10-26 specified by Subsection (b) from the total amount of taxes
10-27 collected by the school district for the applicable school year and
11-1 dividing the difference by the quotient of the district's taxable
11-2 value of property as determined under Subchapter M, Chapter 403,
11-3 Government Code, or, if applicable, under Section 42.2521, divided
11-4 by 100; and
11-5 "LR" is the local revenue, which is determined by multiplying
11-6 "DTR" by the quotient of the district's taxable value of property
11-7 as determined under Subchapter M, Chapter 403, Government Code, or,
11-8 if applicable, under Section 42.2521, divided by 100.
11-9 (b) In computing the district enrichment and facilities tax
11-10 rate of a school district, the total amount of taxes collected by
11-11 the school district does not include the amount of:
11-12 (1) the district's local fund assignment under Section
11-13 42.252;
11-14 (2) taxes collected to pay the local share of debt
11-15 service for which the district receives state aid under Subchapter
11-16 I;
11-17 (3) taxes collected to pay the local share of the cost
11-18 of an instructional facility for which the district receives state
11-19 assistance under Chapter 46; or
11-20 (4) [(3)] taxes paid into a tax increment fund under
11-21 Chapter 311, Tax Code.
11-22 SECTION 12. Effective September 1, 2000, Subsection (a),
11-23 Section 42.302, Education Code, is amended to read as follows:
11-24 (a) Each school district is guaranteed a specified amount
11-25 per weighted student in state and local funds for each cent of tax
11-26 effort over that required for the district's local fund assignment
11-27 up to the maximum level specified in this subchapter. The amount
12-1 of state support, subject only to the maximum amount under Section
12-2 42.303, is determined by the formula:
12-3 GYA = (GL X WADA X DTR X 100) - LR
12-4 where:
12-5 "GYA" is the guaranteed yield amount of state funds to be
12-6 allocated to the district;
12-7 "GL" is the dollar amount guaranteed level of state and local
12-8 funds per weighted student per cent of tax effort, which is $23.10
12-9 [$21] or a greater amount for any year provided by appropriation;
12-10 "WADA" is the number of students in weighted average daily
12-11 attendance, which is calculated by dividing the sum of the school
12-12 district's allotments under Subchapters B and C, less any allotment
12-13 to the district for transportation, any allotment to the district
12-14 under Section 42.158, and 50 percent of the adjustment under
12-15 Section 42.102, by the basic allotment for the applicable year;
12-16 "DTR" is the district enrichment and facilities tax rate of
12-17 the school district, which is determined by subtracting the amounts
12-18 specified by Subsection (b) from the total amount of taxes
12-19 collected by the school district for the applicable school year and
12-20 dividing the difference by the quotient of the district's taxable
12-21 value of property as determined under Subchapter M, Chapter 403,
12-22 Government Code, or, if applicable, under Section 42.2521, divided
12-23 by 100; and
12-24 "LR" is the local revenue, which is determined by multiplying
12-25 "DTR" by the quotient of the district's taxable value of property
12-26 as determined under Subchapter M, Chapter 403, Government Code, or,
12-27 if applicable, under Section 42.2521, divided by 100.
13-1 SECTION 13. Chapter 42, Education Code, is amended by adding
13-2 Subchapter I to read as follows:
13-3 SUBCHAPTER I. SCHOOL FACILITIES TIER
13-4 Sec. 42.501. ALLOTMENT. (a) Each school district is
13-5 guaranteed a specified amount per student in state and local funds
13-6 for each cent of tax effort to pay the principal of an interest on
13-7 eligible bonds. The amount of state support, subject only to the
13-8 maximum amount under Section 42.502, is determined by the formula:
13-9 FTA = (FGL X ADA X FTR X 100) - (FTR X (DPV/100)) where:
13-10 "FTA" is the amount of state funds to be allocated to the
13-11 district as a facilities tier allotment;
13-12 "FGL" is the dollar amount guaranteed level of state and
13-13 local funds per student per cent of tax effort, which is $35 or a
13-14 greater amount for any year provided by appropriation;
13-15 "ADA" is the number of students in average daily attendance
13-16 in the district;
13-17 "FTR" is the district facilities tax rate of the school
13-18 district, which is determined by dividing the amount of taxes
13-19 budgeted to be collected by the district for payment of eligible
13-20 bonds by the quotient of the district's taxable value of property
13-21 as determined under Subchapter M, Chapter 403, Government Code, or,
13-22 if applicable, under Section 42.2521, divided by 100; and
13-23 "DPV" is the district's taxable value of property as
13-24 determined under Subchapter M, Chapter 403, Government Code, or, if
13-25 applicable, under Section 42.2521.
13-26 (b) The district facilities tax rate under Subsection (a)
13-27 may not exceed the rate that would be necessary for the current
14-1 year, using state funds under Subsection (a), to make payments of
14-2 principal and interest on the bonds for which the tax is pledged.
14-3 (c) To enable the district to collect local funds sufficient
14-4 to pay the district's share of the debt service, a district may
14-5 levy a facilities tax at a rate higher than the maximum rate for
14-6 which it may receive state assistance under this subchapter.
14-7 (d) Bonds are eligible to be paid with state and local funds
14-8 under this subchapter if:
14-9 (1) taxes levied to pay the principal of and interest
14-10 on the bonds were included in the district's audited debt service
14-11 collections for the 1998-1999 school year; and
14-12 (2) the district does not receive state assistance
14-13 under Chapter 46 for payment of the principal and interest on the
14-14 bonds.
14-15 (e) If the amount required to pay the principal of and
14-16 interest on eligible bonds in a school year is less than the
14-17 district's audited debt service collections for the 1998-1999
14-18 school year, the district may not receive aid in excess of the
14-19 amount that, when added to the district's local revenue for the
14-20 school year, equals the amount required to pay the principal of and
14-21 interest on the bonds.
14-22 (f) Notwithstanding Section 42.259, as soon as practicable
14-23 after September 1 of each year, the commissioner shall distribute
14-24 to each school district the amount of state assistance under this
14-25 subchapter to which the commissioner has determined the district is
14-26 entitled for the school year. The district shall deposit the money
14-27 in the interest and sinking fund for the bonds for which the
15-1 assistance is received and shall adopt a tax rate for purposes of
15-2 debt service that takes into account the balance of the interest
15-3 and sinking fund.
15-4 Sec. 42.502. LIMITATION ON FACILITIES TAX RATE. The
15-5 district facilities tax rate ("FTR") under Section 42.501 may not
15-6 exceed $0.07 per $100 of valuation or a greater amount for any year
15-7 provided by appropriation.
15-8 SECTION 14. Subsection (a), Section 46.003, Education Code,
15-9 is amended to read as follows:
15-10 (a) For each year, except as provided by Sections 46.005 and
15-11 46.006, a school district is guaranteed a specified amount per
15-12 student in state and local funds for each cent of tax effort, up to
15-13 the maximum rate under Subsection (b), to pay the principal of and
15-14 interest on eligible bonds issued to construct, acquire, renovate,
15-15 or improve an instructional facility. The amount of state support
15-16 is determined by the formula:
15-17 FYA = (FYL X ADA X BTR X 100) - (BTR X (DPV/100))
15-18 where:
15-19 "FYA" is the guaranteed facilities yield amount of state
15-20 funds allocated to the district for the year;
15-21 "FYL" is the dollar amount guaranteed level of state and
15-22 local funds per student per cent of tax effort, which is $35 [$28]
15-23 or a greater amount for any year provided by appropriation;
15-24 "ADA" is the number of students in average daily attendance,
15-25 as determined under Section 42.005, in the district, but not less
15-26 than 400;
15-27 "BTR" is the district's bond tax rate for the current year,
16-1 which is determined by dividing the amount of taxes budgeted to be
16-2 collected by the district for payment of eligible bonds by the
16-3 quotient of the district's taxable value of property as determined
16-4 under Subchapter M, Chapter 403, Government Code, or, if
16-5 applicable, Section 42.2521, divided by 100; and
16-6 "DPV" is the district's taxable value of property as
16-7 determined under Subchapter M, Chapter 403, Government Code, or, if
16-8 applicable, Section 42.2521.
16-9 SECTION 15. Section 46.006, Education Code, is amended to
16-10 read as follows:
16-11 Sec. 46.006. Shortage or Excess of Funds Appropriated for
16-12 New Projects. (a) If the total amount appropriated for a year for
16-13 new projects is less than the amount of money to which school
16-14 districts applying for state assistance are entitled for that year,
16-15 the commissioner shall rank each school district applying by wealth
16-16 per student. For purposes of this section, a district's wealth per
16-17 student is reduced by 10 percent for each state fiscal biennium in
16-18 which the district did not receive assistance under this chapter.
16-19 (b) A district's wealth per student is reduced for purposes
16-20 of this section if a district has had substantial student
16-21 enrollment growth in the preceding five-year period. The reduction
16-22 is in addition to any reduction under Subsection (a) and is
16-23 computed before the district's wealth per student is reduced under
16-24 that subsection, if applicable. A district's wealth per student is
16-25 reduced:
16-26 (1) by five percent, if the district has an enrollment
16-27 growth rate in that period that is 10 percent or more but less than
17-1 15 percent;
17-2 (2) by 10 percent, if the district has an enrollment
17-3 growth rate in that period that is 15 percent or more but less than
17-4 30 percent; or
17-5 (3) by 15 percent, if the district has an enrollment
17-6 growth rate in that period that is 30 percent or more.
17-7 (c) A district's wealth per student is reduced by 10 percent
17-8 for purposes of this section if the district does not have any
17-9 outstanding debt at the time the district applies for assistance
17-10 under this chapter. The reduction is in addition to any reduction
17-11 under Subsection (a) or (b) and is computed before the district's
17-12 wealth per student is reduced under those subsections, if
17-13 applicable.
17-14 (d) The commissioner shall adjust the rankings after making
17-15 the reductions in wealth per student required by Subsections (a),
17-16 (b), and (c) [this subsection].
17-17 (e) [(b)] Beginning with the district with the lowest
17-18 adjusted wealth per student that has applied for state assistance
17-19 for the year, the commissioner shall award state assistance to
17-20 districts that have applied for state assistance in ascending order
17-21 of adjusted wealth per student. The commissioner shall award the
17-22 full amount of state assistance to which a district is entitled
17-23 under this chapter, except that the commissioner may award less
17-24 than the full amount to the last district for which any funds are
17-25 available.
17-26 (f) [(c)] Any amount appropriated for the first year of a
17-27 fiscal biennium that is not awarded to a school district may be
18-1 used to provide assistance in the following fiscal year.
18-2 (g) [(d)] In this section, "wealth per student" means a
18-3 school district's taxable value of property as determined under
18-4 Subchapter M, Chapter 403, Government Code, or, if applicable,
18-5 Section 42.2521, divided by the district's average daily attendance
18-6 as determined under Section 42.005.
18-7 SECTION 16. Subchapter B, Chapter 21, Education Code, is
18-8 amended by adding Section 21.0481 to read as follows:
18-9 Sec. 21.0481. MASTER READING TEACHER CERTIFICATION. The
18-10 board shall issue a master reading teacher certificate to each
18-11 eligible person. To be eligible for a master reading teacher
18-12 certificate, a person must:
18-13 (1) hold a reading specialist certificate issued under
18-14 this subchapter and satisfactorily complete a course of instruction
18-15 as prescribed under Subdivision (2)(B); or
18-16 (2) hold a teaching certificate issued under this
18-17 subchapter and:
18-18 (A) have at least three years of teaching
18-19 experience;
18-20 (B) satisfactorily complete a knowledge-based
18-21 and skills-based course of instruction on the science of teaching
18-22 children to read that includes training in:
18-23 (i) effective reading instruction
18-24 techniques, including effective techniques for students whose
18-25 primary language is a language other than English;
18-26 (ii) identification of dyslexia and
18-27 related reading disorders and effective reading instruction
19-1 techniques for students with those disorders; and
19-2 (iii) effective professional peer
19-3 mentoring techniques;
19-4 (C) perform satisfactorily on the master reading
19-5 teacher certification examination prescribed by the board; and
19-6 (D) satisfy any other requirements prescribed by
19-7 the board.
19-8 SECTION 17. Section 21.401, Education Code, is amended to
19-9 read as follows:
19-10 Sec. 21.401. Minimum Service Required. (a) A contract
19-11 between a school district and an educator must be for a minimum of
19-12 10 months' service.
19-13 (a-4) For the 1998-1999 school year, an educator employed
19-14 under a 10-month contract must provide a minimum of 187 days of
19-15 service. This subsection expires September 1, 1999.
19-16 (b) An educator employed under a 10-month contract must
19-17 provide a minimum [number] of 187 days of service [as determined by
19-18 the following formula:]
19-19 [MDS = 185 + (0.33 X (R1 - R2)/(R2/185) )]
19-20 [where:]
19-21 ["MDS" is the minimum number of days of service;]
19-22 ["R1" is equal to FSP/ADA as determined under Section 21.402
19-23 for the fiscal year; and]
19-24 ["R2" is equal to FSP/ADA as determined under Section 21.402
19-25 for the 1996-1997 school year].
19-26 [(b-1) Subsection (b) applies beginning with the 1999-2000
19-27 school year. This subsection expires January 1, 2000.]
20-1 (c) [The result of the formula prescribed by Subsection (b)
20-2 shall be rounded to the nearest whole number.]
20-3 [(d)] The commissioner, as provided by Section 25.081(b),
20-4 may reduce the number of days of service required by this section.
20-5 A reduction by the commissioner does not reduce an educator's
20-6 salary.
20-7 SECTION 18. Effective September 1, 1999, Section 21.402,
20-8 Education Code, is amended by adding Subsections (a-1) and (a-2) to
20-9 read as follows:
20-10 (a-1) Notwithstanding Subsection (a), and except as provided
20-11 by Subsection (e), for the 1999-2000 school year, a school district
20-12 must pay each classroom teacher or full-time librarian not less
20-13 than the minimum monthly salary, based on the employee's level of
20-14 experience, as follows:
20-15 Years Experience 0 1 2 3 4
20-16 Salary 2,461 2,524 2,581 2,639 2,696
20-17 Years Experience 5 6 7 8 9
20-18 Salary 2,817 2,938 3,059 3,172 3,278
20-19 Years Experience 10 11 12 13 14
20-20 Salary 3,379 3,473 3,564 3,649 3,728
20-21 Years Experience 15 16 17 18 19
20-22 Salary 3,805 3,876 3,944 4,008 4,068
20-23 Years Experience 20
20-24 Salary 4,126
20-25 (a-2) Subsection (a-1) and this subsection expire September
20-26 1, 2000.
20-27 SECTION 19. Effective September 1, 2000, Subsections (a),
21-1 (b), and (c), Section 21.402, Education Code, are amended to read
21-2 as follows:
21-3 (a) Except as provided by Subsection (d) or (e), a school
21-4 district must pay each classroom teacher or full-time librarian not
21-5 less than the minimum monthly salary, based on the employee's level
21-6 of experience, determined by the following formula:
21-7 MS = SF X FS [(FSP/ADA)]
21-8 where:
21-9 "MS" is the minimum monthly salary;
21-10 "SF" is the applicable salary factor specified by Subsection
21-11 (c); and
21-12 "FS" is the amount, as determined by the commissioner under
21-13 Subsection (b), of state and local funds per weighted student
21-14 available to a district eligible to receive state assistance under
21-15 Section 42.302 with a district enrichment and facilities tax rate,
21-16 as defined by Section 42.302, equal to the maximum rate authorized
21-17 under Section 42.303 ["FSP" is the amount appropriated in the
21-18 General Appropriations Act for the fiscal year for the Foundation
21-19 School Program, as determined by the commissioner as provided by
21-20 Subsection (b); and]
21-21 ["ADA" is the total estimated average daily attendance, as
21-22 defined by Section 42.005, used for purposes of the General
21-23 Appropriations Act for the fiscal year].
21-24 (b) Not later than June 1 of each year, the commissioner
21-25 shall determine the amount of state and local funds per weighted
21-26 student available, for purposes of Subsection (a), to a district
21-27 described by that subsection for the following school year
22-1 [appropriated for purposes of Chapter 42 for the state fiscal year
22-2 beginning September 1. The commissioner shall exclude from the
22-3 determination:]
22-4 [(1) amounts designated solely for use in connection
22-5 with school facilities or for payment of principal of and interest
22-6 on bonds; and]
22-7 [(2) local funds received under Subchapter D, Chapter
22-8 41].
22-9 (c) The salary factors per step are as follows:
22-10 Years Experience 0 1 2 3 4
22-11 Salary Factor .5995 .6148 .6287 .6428 .6567
22-12 [.8470] [.8699] [.8928] [.9156] [.9639]
22-13 Years Experience 5 6 7 8 9
22-14 Salary Factor .6862 .7157 .7451 .7727 .7985
22-15 [1.0122] [1.0605] [1.1054] [1.1477] [1.1879]
22-16 Years Experience 10 11 12 13 14
22-17 Salary Factor .8231 .8460 .8682 .8889 .9081
22-18 [1.2256] [1.2616] [1.2955] [1.3273] [1.3578]
22-19 Years Experience 15 16 17 18 19
22-20 Salary Factor .9269 .9442 .9607 .9763 .9909
22-21 [1.3862] [1.4133] [1.4387] [1.4628] [1.4857]
22-22 Years Experience 20 and over
22-23 Salary Factor 1.0051
22-24 [1.5073]
22-25 SECTION 20. (a) The commissioner of education shall notify
22-26 each school district as soon as practicable after passage of this
22-27 Act of the amount of additional state funds to which the district
23-1 is entitled due to the increases in the basic allotment and
23-2 guaranteed yield, as well as additional funds due to the increase
23-3 in the equalized wealth level, using the estimates required under
23-4 Subsection (b), Section 42.254, Education Code, for the 1999-2000
23-5 school year. For the 2000-2001 school year, the commissioner shall
23-6 notify each school district of the amount of increased state funds
23-7 due to the increases in the basic allotment and guaranteed yield,
23-8 as well as additional funds due to the increase in the equalized
23-9 wealth level, no later than March 1, 2000. The commissioner shall
23-10 to the extent possible adjust the 2000-2001 amount to take into
23-11 consideration any adjustments found necessary pursuant to
23-12 Subsection (i), Section 42.253, Education Code, to the extent
23-13 necessary to accurately reflect the amount of additional funds
23-14 available to the district. A determination by the commissioner
23-15 under this section is final and may not be appealed.
23-16 (b) Each school district shall use at least 60 percent of
23-17 the full amounts certified under this section to increase the
23-18 salaries of classroom teachers or full-time librarians over the
23-19 salary to which they would have been entitled in the previous year,
23-20 including any applicable local supplements or stipends. Compliance
23-21 with the requirements of this subsection shall be examined and
23-22 audited as part of the district annual audit under Section 44.008,
23-23 Education Code.
23-24 (c) The commissioner of education may make rules for the
23-25 implementation of this section.
23-26 SECTION 21. Subchapter I, Chapter 21, Education Code, is
23-27 amended by adding Section 21.410 to read as follows:
24-1 Sec. 21.410. MASTER READING TEACHER GRANT PROGRAM. (a) The
24-2 commissioner shall establish a master reading teacher grant
24-3 program.
24-4 (b) From funds appropriated for the purpose, the
24-5 commissioner shall make grants to school districts and
24-6 open-enrollment charter schools as provided by this section to pay
24-7 stipends to selected certified master reading teachers who teach at
24-8 high-need campuses.
24-9 (c) The commissioner shall annually identify each high-need
24-10 campus in a school district and each high-need open-enrollment
24-11 charter school campus using criteria established by the
24-12 commissioner by rule, including performance on the reading
24-13 assessment instrument administered under Section 39.023. The
24-14 commissioner shall also use the criteria to rank campuses in order
24-15 of greatest need.
24-16 (d) A school district or open-enrollment charter school may
24-17 apply to the commissioner for grants for each high-need campus
24-18 identified by the commissioner to be used to pay stipends to
24-19 certified master reading teachers in accordance with this section.
24-20 Unless reduced under Subsection (g) or (i), each grant is in the
24-21 amount of $5,000. The commissioner shall approve the application
24-22 if the district or school:
24-23 (1) applies within the period and in the manner
24-24 required by rule adopted by the commissioner; and
24-25 (2) agrees to use each grant only for the purpose of
24-26 paying a year-end stipend to a master reading teacher:
24-27 (A) who holds a certificate issued under Section
25-1 21.0481;
25-2 (B) who teaches in a position prescribed by the
25-3 district or school at a high-need campus identified by the
25-4 commissioner;
25-5 (C) whose primary duties include:
25-6 (i) teaching reading; and
25-7 (ii) serving as a reading teaching mentor
25-8 to other teachers for the amount of time and in the manner
25-9 established by the district or school and by rule adopted by the
25-10 commissioner; and
25-11 (D) who satisfies any other requirements
25-12 established by rule adopted by the commissioner.
25-13 (e) Unless reduced under Subsection (g) or (i), a stipend
25-14 under Subsection (d)(2) is in the amount of $5,000.
25-15 (f) The commissioner shall adopt rules for the distribution
25-16 of grants to school districts and open-enrollment charter schools
25-17 in years following the year of the initial grant. A school
25-18 district or open-enrollment charter school that has been approved
25-19 for a grant to pay a stipend to a certified master reading teacher
25-20 is not required to reapply for a grant for two consecutive school
25-21 years following the year of the initial grant if the district or
25-22 school:
25-23 (1) continues to pay a stipend as provided by
25-24 Subsection (g); and
25-25 (2) notifies the commissioner in writing, within the
25-26 period and in the manner prescribed by the commissioner, that the
25-27 circumstances on which the grant was based have not changed.
26-1 (g) The commissioner shall reduce payments to a school
26-2 district or open-enrollment charter school proportionately to the
26-3 extent a teacher does not meet the requirements under Subsection
26-4 (d)(2) for the entire school year. A district or school that
26-5 employs more certified master reading teachers than the number of
26-6 grants available under this section shall select the certified
26-7 master reading teachers to whom to pay stipends based on a policy
26-8 adopted by the board of trustees of the district or the governing
26-9 body of the school, except that a district or school shall pay a
26-10 stipend for two additional consecutive school years to a teacher
26-11 the district or school has selected for and paid a stipend for a
26-12 school year who remains eligible for a stipend under Subsection
26-13 (d)(2) and for whom the district or school receives a grant under
26-14 this section for those years. A decision of the district or school
26-15 under this subsection is final and may not be appealed. The
26-16 district or school may not apportion among teachers a stipend paid
26-17 for with a grant the district or school receives under this
26-18 section. The district or school may use local money to pay
26-19 additional stipends in amounts determined by the district or
26-20 school.
26-21 (h) A grant a school district or open-enrollment charter
26-22 school receives under this section is in addition to any funding
26-23 the district or school receives under Chapter 12 or 42, as
26-24 applicable. The commissioner shall distribute funds under this
26-25 section with the Foundation School Program payment to which the
26-26 district or school is entitled as soon as practicable after the end
26-27 of the school year as determined by the commissioner. A district
27-1 to which Chapter 41 applies is entitled to the grants paid under
27-2 this section. The commissioner shall determine the timing of the
27-3 distribution of grants to a district that does not receive
27-4 Foundation School Program payments.
27-5 (i) This section does not create a property right to a grant
27-6 or stipend. A school district or open-enrollment charter school is
27-7 entitled to a grant to carry out the purposes of this section only
27-8 to the extent the commissioner makes the grant in accordance with
27-9 this section and only to the extent sufficient state funds are
27-10 appropriated for those purposes. If state funds are appropriated
27-11 but are insufficient to fully fund a grant, the commissioner shall
27-12 reduce the grant paid to each district or school in the manner
27-13 provided under Section 42.253(h) and each district or school shall
27-14 reduce the stipend the district or school pays to each teacher
27-15 under this section proportionately so that each selected teacher
27-16 receives the same amount of money.
27-17 (j) A decision of the commissioner concerning the amount of
27-18 money to which a school district or open-enrollment charter school
27-19 is entitled under this section is final and may not be appealed.
27-20 Each district or open-enrollment charter school shall, in the
27-21 manner and at the time prescribed by the commissioner, provide to
27-22 the commissioner proof acceptable to the commissioner of the master
27-23 reading teacher certification of a teacher to whom the district or
27-24 school is paying a stipend under this section.
27-25 (k) The commissioner may audit the expenditure of money
27-26 appropriated for purposes of this section. A district's use of the
27-27 money appropriated for purposes of this section shall be verified
28-1 as part of the district audit under Section 44.008.
28-2 (l) A stipend a teacher receives under this section is not
28-3 considered in determining whether the district is paying the
28-4 teacher the minimum monthly salary under Section 21.402.
28-5 (m) The commissioner may adopt other rules as necessary to
28-6 implement this section.
28-7 SECTION 22. Subsection (b), Section 25.039, Education Code,
28-8 is amended to read as follows:
28-9 (b) The school district in which the students reside shall
28-10 pay tuition to any district with which it has a contract under this
28-11 section for each of its students attending school in that district
28-12 at a grade level for which the district has contracted. The amount
28-13 of the tuition paid may not exceed the lesser of the amount
28-14 provided for by Section 25.038 or an amount specified by
28-15 commissioner rule [if the board of trustees of the district in
28-16 which the students reside finds the excess payment to be in the
28-17 best interest of the district's educational program].
28-18 SECTION 23. Section 39.023, Education Code, is amended by
28-19 adding Subsection (l) to read as follows:
28-20 (l) No corporation, partnership, subsidiary corporation, or
28-21 other legal entity shall be eligible to bid for, or enter into a
28-22 contract or subcontract directly or indirectly with the state for,
28-23 the development, distribution, or grading of any academic skills
28-24 assessment instruments used as an element of accreditation or of
28-25 any other statewide assessments if the entity also contracts for
28-26 the sale of textbooks to any school district within the State of
28-27 Texas.
29-1 SECTION 24. Section 44.004, Education Code, is amended to
29-2 read as follows:
29-3 Sec. 44.004. NOTICE OF BUDGET AND TAX RATE MEETING; BUDGET
29-4 ADOPTION. (a) When the budget has been prepared under Section
29-5 44.002, the president shall call a meeting of the board of
29-6 trustees, stating that the purpose of the meeting is the adoption
29-7 of a budget for the succeeding fiscal year.
29-8 (b) The president shall provide for the publication of
29-9 notice of the budget and proposed tax rate meeting in a daily,
29-10 weekly, or biweekly newspaper published in the district. If no
29-11 daily, weekly, or biweekly newspaper is published in the district,
29-12 the president shall provide for the publication of notice in at
29-13 least one newspaper of general circulation in the county in which
29-14 the district's central administrative office is located. [Notice
29-15 published under this subsection is in addition to notice required
29-16 by other law.] Notice under this subsection shall be published not
29-17 earlier than the 30th day or later than the 10th day before the
29-18 date of the hearing. [A district may include the notice required
29-19 under this subsection in a notice required under Section 26.06, Tax
29-20 Code.]
29-21 (c) The notice of public meeting to discuss and adopt the
29-22 budget and the proposed tax rate may not be smaller than
29-23 one-quarter page of a standard-size or a tabloid-size newspaper,
29-24 and the headline on the notice must be in 18-point or larger type.
29-25 Subject to Subsection (d), the notice must:
29-26 (1) contain a statement in the following form:
29-27 "NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET
30-1 AND PROPOSED TAX RATE
30-2 "The (name of school district) will hold a public meeting at
30-3 (time, date, year) in (name of room, building, physical location,
30-4 city, state). The purpose of this meeting is to discuss the school
30-5 district's budget that will determine the tax rate that will be
30-6 adopted. Public participation in the discussion is invited." The
30-7 statement of the purpose of the meeting must be in bold type. In
30-8 reduced type, the notice must state: "The tax rate that is
30-9 ultimately adopted at this meeting or at a separate meeting at a
30-10 later date may not exceed the proposed rate shown below without
30-11 publication of a revised notice containing the same information and
30-12 comparisons set out below.";
30-13 (2) contain a section entitled "Comparison of Proposed
30-14 Rates with Preceding Year's Adopted Rates," which must:
30-15 (A) show in rows the tax rates described by
30-16 Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
30-17 property, for columns entitled "Maintenance & Operations Tax Rate,"
30-18 which, except as provided by Subparagraph (iii), is the rate that,
30-19 if applied to the total taxable value of property in the district
30-20 for the applicable tax year, will impose the amount of taxes that,
30-21 when added to state aid to be received by the district under
30-22 Chapters 42 and 43 for the corresponding school year, will fund
30-23 maintenance and operations expenditures of the district for that
30-24 school year, "Interest & Sinking Fund Tax Rate," which is the rate
30-25 that, if applied to the total taxable value of property in the
30-26 district for the applicable tax year, will impose the total amount
30-27 mailed or published for that tax year under Section 26.04(e)(3)(C),
31-1 Tax Code, and "Total Tax Rate" which is the sum of the "Maintenance
31-2 & Operations Tax Rate" and the "Interest & Sinking Fund Tax Rate":
31-3 (i) the school district's "Adopted Tax
31-4 Rate for the Preceding Year";
31-5 (ii) the "Tax Rate Required to Maintain
31-6 the Same Level of Maintenance & Operations Revenue and Pay Debt
31-7 Service," which, in the case of the "Maintenance & Operations Tax
31-8 Rate," is computed by multiplying the "Total Revenue per Student"
31-9 for the current school year, determined as provided by Paragraph
31-10 (B), by the estimated number of students in average daily
31-11 attendance for the following school year, subtracting from the
31-12 product the amount mailed or published under Section
31-13 26.04(e)(3)(C), Tax Code, and dividing the difference by the
31-14 district's total taxable value of property, and which, in the case
31-15 of the "Interest & Sinking Fund Tax Rate," is computed by dividing
31-16 the amount mailed or published under Section 26.04(e)(3)(C), Tax
31-17 Code, for the current tax year by the district's total taxable
31-18 value of property for that tax year; and
31-19 (iii) the "Proposed Tax Rate";
31-20 (B) contain a fourth column aligned with the
31-21 columns required by Paragraph (A) that shows, for each row required
31-22 by Paragraph (A), the "Total Revenue per Student," which is
31-23 computed by:
31-24 (i) multiplying the district's total
31-25 taxable value of property by the "Total Tax Rate";
31-26 (ii) adding to the product determined
31-27 under Subparagraph (i) state aid received or to be received by the
32-1 district under Chapters 42 and 43; and
32-2 (iii) dividing the sum determined under
32-3 Subparagraph (ii) by the number of students in average daily
32-4 attendance in the district; and
32-5 (C) contain an asterisk after each calculation
32-6 for an "Interest & Sinking Fund Tax Rate" and a footnote to the
32-7 section that says "The Interest & Sinking Fund Tax Revenue is used
32-8 to pay for bonded indebtedness on construction, equipment, or both.
32-9 The bonds, and the tax rate necessary to pay those bonds, were
32-10 approved by the voters of this district in (an election or
32-11 elections) held (dates of election or elections).";
32-12 (3) contain a section entitled "Comparison of Proposed
32-13 Levy with Last Year's Levy on Average Residence Homestead," which
32-14 must:
32-15 (A) show in rows the information described by
32-16 Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
32-17 entitled "Preceding Tax Year" and "Current Tax Year":
32-18 (i) "Average Appraised Value of Residence
32-19 Homesteads";
32-20 (ii) "Average Taxable Value of Residence
32-21 Homesteads, after Homestead Exemptions";
32-22 (iii) "Last Year's Rate Versus Proposed
32-23 Rate per $100 of Property Value"; and
32-24 (iv) "Taxes Imposed on Average Residence
32-25 Homestead"; and
32-26 (B) contain the following information:
32-27 "Increase (Decrease) in Taxes" expressed in dollars and cents,
33-1 which is computed by subtracting the "Taxes Imposed on Average
33-2 Residence Homestead" for the preceding tax year from the "Taxes
33-3 Imposed on Average Residence Homestead" for the current tax year;
33-4 (4) contain the following statement in bold print:
33-5 "Under state law, the dollar amount of school taxes imposed on the
33-6 residence homestead of a person 65 years of age or older or of the
33-7 surviving spouse of such a person, if the surviving spouse was 55
33-8 years of age or older when the person died, may not be increased
33-9 above the amount paid in the first year after the person turned 65,
33-10 regardless of changes in tax rate.";
33-11 (5) contain the following statement in bold print:
33-12 "Notice of Rollback Rate: The highest tax rate the district can
33-13 adopt before requiring voter approval at an election is (the school
33-14 district rollback rate determined under Section 26.08, Tax Code).
33-15 This election will be automatically held if the district adopts a
33-16 rate in excess of the rollback rate of (the school district
33-17 rollback rate)."; and
33-18 (6) contain a section entitled "Fund Balances," which
33-19 must include the following information for the district:
33-20 (A) the "Fund Balance to Be Spent in this
33-21 Budget";
33-22 (B) the "Fund Balance Texas Education Agency
33-23 Recommends to Be Maintained";
33-24 (C) the "Designated Unreserved Fund Balance for
33-25 Future Construction"; and
33-26 (D) the "Excess Fund Balance."
33-27 (d) The comptroller by rule shall prescribe the language and
34-1 format to be used in the part of the notice required by Subsection
34-2 (c). A notice under Subsection (c) is not valid if it does not
34-3 substantially conform to the language and format prescribed by the
34-4 comptroller under this subsection.
34-5 (e) The board of trustees, at the meeting called for that
34-6 purpose, shall adopt a budget to cover all expenditures for the
34-7 school district for the next succeeding fiscal year. Any taxpayer
34-8 of the district may be present and participate in the meeting
34-9 [hearing].
34-10 (f) [(d)] The budget must be adopted before the adoption of
34-11 the tax rate for the tax year in which the fiscal year covered by
34-12 the budget begins.
34-13 SECTION 25. Subsections (h) and (i), Section 403.302,
34-14 Government Code, are amended to read as follows:
34-15 (h) For purposes of Section [Sections 41.0011 and] 42.2511,
34-16 Education Code, for the 1998 and 1999 [1996 and 1997] tax years,
34-17 the comptroller shall certify to the commissioner of education:
34-18 (1) a final value for each school district computed on
34-19 a residence homestead exemption under Section 1-b(c), Article VIII,
34-20 Texas Constitution, of $5,000; and
34-21 (2) a final value for each school district computed
34-22 on:
34-23 (A) a residence homestead exemption under
34-24 Section 1-b(c), Article VIII, Texas Constitution, of $15,000; and
34-25 (B) the effect of the additional limitation on
34-26 tax increases under Section 1-b(d), Article VIII, Texas
34-27 Constitution, as proposed by H.J.R. No. 4, 75th Legislature,
35-1 Regular Session, 1997.
35-2 (i) Subsection (h) and this subsection expire September 1,
35-3 2001 [1999].
35-4 SECTION 26. Subsection (b), Section 822.201, Government
35-5 Code, as amended by Chapters 330 and 1035, Acts of the 75th
35-6 Legislature, Regular Session, 1997, is amended to read as follows:
35-7 (b) "Salary and wages" as used in Subsection (a) means:
35-8 (1) normal periodic payments of money for service the
35-9 right to which accrues on a regular basis in proportion to the
35-10 service performed;
35-11 (2) amounts by which the member's salary is reduced
35-12 under a salary reduction agreement authorized by Chapter 610;
35-13 (3) amounts that would otherwise qualify as salary and
35-14 wages under Subdivision (1) but are not received directly by the
35-15 member pursuant to a good faith, voluntary written salary reduction
35-16 agreement in order to finance payments to a deferred compensation
35-17 or tax sheltered annuity program specifically authorized by state
35-18 law or to finance benefit options under a cafeteria plan qualifying
35-19 under Section 125 of the Internal Revenue Code of 1986 (26 U.S.C.
35-20 Section 125), if:
35-21 (A) the program or benefit options are made
35-22 available to all employees of the employer; and
35-23 (B) the benefit options in the cafeteria plan
35-24 are limited to one or more options that provide deferred
35-25 compensation, group health and disability insurance, group term
35-26 life insurance, dependent care assistance programs, or group legal
35-27 services plans; [and]
36-1 (4) performance pay awarded to an employee by a school
36-2 district as part of a total compensation plan approved by the board
36-3 of trustees of the district;[.]
36-4 (5) [(4)] the benefit replacement pay a person earns
36-5 under Subchapter H, Chapter 659, as added by Chapter 417, Acts of
36-6 the 74th Legislature, 1995, except as provided by Subsection (c);
36-7 and
36-8 (6) stipends paid to teachers in accordance with
36-9 Section 21.410, Education Code.
36-10 SECTION 27. Subsections (a) and (e), Section 824.203,
36-11 Government Code, are amended to read as follows:
36-12 (a) Except as provided by Subsections (c), (d), and (e), the
36-13 standard service retirement annuity is an amount computed on the
36-14 basis of the member's average annual compensation for the three
36-15 years of service, whether or not consecutive, in which the member
36-16 received the highest annual compensation, times 2.2 [two] percent
36-17 for each year of service credit in the retirement system.
36-18 (e) The annual standard service retirement annuity for a
36-19 person who immediately before retirement holds a position as a
36-20 classroom teacher or full-time librarian, or the annual death
36-21 benefit annuity based on the service of a member who at the time of
36-22 death held a position as a classroom teacher or full-time
36-23 librarian, may not be less than an amount computed on the basis of
36-24 the minimum annual salary provided by the Education Code for a
36-25 classroom teacher or full-time librarian, multiplied by 2.2 [two]
36-26 percent for each year of service credit in the retirement system.
36-27 SECTION 28. Subsection (a), Section 824.602, Government
37-1 Code, is amended to read as follows:
37-2 (a) The retirement system may not, under Section 824.601,
37-3 withhold a monthly benefit payment if the retiree is employed in a
37-4 Texas public educational institution:
37-5 (1) as a substitute only with pay not more than the
37-6 daily rate of substitute pay established by the employer and, if
37-7 the retiree is a disability retiree, the employment has not
37-8 exceeded a total of 90 days in the school year;
37-9 (2) in a position, other than as a substitute, on no
37-10 more than a one-half time basis for the month;
37-11 (3) in one or more positions on as much as a full-time
37-12 basis, if:
37-13 (A) the work occurs in a school year that begins
37-14 after the retiree's effective date of retirement; and
37-15 (B) the work occurs in no more than six months
37-16 of the school year; [and]
37-17 [(C) the retiree executes on a form and within
37-18 any deadline prescribed by the retirement system a written election
37-19 to have this exception apply for the school year in determining
37-20 whether benefits are to be suspended for employment after
37-21 retirement; or]
37-22 (4) in a position, other than as a substitute, on no
37-23 more than a one-half time basis for no more than 90 days in the
37-24 school year, if the retiree is a disability retiree; or
37-25 (5) in a position as a classroom teacher on as much as
37-26 a full-time basis, if the retiree is certified under Subchapter B,
37-27 Chapter 21, Education Code, had no promise of future public school
38-1 employment at the time of retirement, and has been separated from
38-2 service with all public schools for a period at least equal to the
38-3 minimum term of a contract under Section 21.401(a), Education Code.
38-4 SECTION 29. Subsection (a), Section 824.804, Government
38-5 Code, is amended to read as follows:
38-6 (a) On the effective date of a member's participation in the
38-7 plan, the retirement system shall make the transfers required by
38-8 Section 825.309 to the retired reserve account as if the member had
38-9 retired on that date. The retirement system shall transfer
38-10 monthly, during the period of the member's participation in the
38-11 plan, from the retired reserve account to an account for the member
38-12 in the deferred retirement option account an amount equal to 59
38-13 [79] percent of the amount the member would have received that
38-14 month under a standard service retirement annuity if the member had
38-15 retired on the effective date of plan participation under the
38-16 multiplier currently in effect.
38-17 SECTION 30. Subsection (c), Section 26.04, Tax Code, is
38-18 amended to read as follows:
38-19 (c) An officer or employee designated by the governing body
38-20 shall calculate the effective tax rate and the rollback tax rate
38-21 for the unit, where:
38-22 (1) "Effective tax rate" means a rate expressed in
38-23 dollars per $100 of taxable value calculated according to the
38-24 following formula:
39-1 EFFECTIVE TAX RATE = (LAST YEAR'S LEVY - LOST PROPERTY LEVY)
39-2 (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)
39-3 ; and
39-4 (2) "Rollback tax rate" means a rate expressed in
39-5 dollars per $100 of taxable value calculated according to:
39-6 (A) the following formula for a taxing unit
39-7 other than a school district:
39-8 ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND OPERATIONS RATE
39-9 x 1.08) + CURRENT DEBT RATE
39-10 ; or
39-11 (B) Section 26.08 for a school district.
39-12 SECTION 31. Subsection (d), Section 26.05, Tax Code, is
39-13 amended to read as follows:
39-14 (d) The governing body may not adopt a tax rate that if
39-15 applied to the total taxable value would impose an amount of taxes
39-16 that exceeds last year's levy until it has held a public hearing on
39-17 the proposed tax rate and:
39-18 (1) if the taxing unit is not a school district, has
39-19 otherwise complied with Section 26.06; or
39-20 (2) if the taxing unit is a school district, has
39-21 complied with Section 44.004, Education Code, and Section 26.06(a).
39-22 SECTION 32. Section 26.06, Tax Code, is amended by adding
39-23 Subsection (g) to read as follows:
39-24 (g) This section, other than Subsection (a), does not apply
39-25 to a school district. A school district shall provide notice of a
39-26 public hearing on a tax increase as required by Section 44.004,
39-27 Education Code.
39-28 SECTION 33. Section 26.08, Tax Code, is amended by amending
40-1 Subsection (i) and adding Subsections (j) and (k) to read as
40-2 follows:
40-3 (i) For purposes of this section, the rollback tax rate of a
40-4 school district is the sum of:
40-5 (1) the tax rate that, applied to the current total
40-6 value for the district, would impose taxes in an amount that, when
40-7 added to state funds that would be distributed to the district
40-8 under Chapter 42, Education Code, for the school year beginning in
40-9 the current tax year using that tax rate, would provide the same
40-10 amount of state funds distributed under Chapter 42 and maintenance
40-11 and operations taxes of the district per student in weighted
40-12 average daily attendance for that school year that would have been
40-13 [was] available to the district in the preceding year if the
40-14 funding elements for Chapters 41 and 42, Education Code, for the
40-15 current year had been in effect for the preceding year;
40-16 (2) the rate of $0.06 [$0.08] per $100 of taxable
40-17 value; and
40-18 (3) the district's current debt rate.
40-19 (j) For purposes of this section, for the 1999 tax year, the
40-20 rollback tax rate of a school district is the sum of:
40-21 (1) the tax rate that, applied to the current total
40-22 value for the district, would impose taxes in an amount that, when
40-23 added to the amount of state funds that would be distributed to the
40-24 district under Chapter 42, Education Code, for the 1999-2000 school
40-25 year using that tax rate, would provide the same amount of state
40-26 funds distributed under Chapter 42 and maintenance and operations
40-27 taxes of the district per student in weighted average daily
41-1 attendance for the 1999-2000 school year that would have been
41-2 available to the district in the 1998-1999 school year if the
41-3 funding elements for Chapters 41 and 42, Education Code, for the
41-4 1999-2000 school year had been in effect for the 1998-1999 school
41-5 year;
41-6 (2) The tax rate that, applied to the current total
41-7 value for the district, would impose taxes in an amount that would
41-8 provide the same amount of funds as the taxes paid by the district
41-9 during the 1998-1999 school year under 26 U.S.C. Section 3111(a),
41-10 and its subsequent amendments, for employees covered by the Social
41-11 Security retirement program, limited to those districts that are
41-12 currently required to participate in the program;
41-13 (3) the rate of $0.03 per $100 of taxable value; and
41-14 (4) the district's current debt rate.
41-15 (k) Subsection (j) and this subsection expire September 1,
41-16 2000.
41-17 SECTION 34. (a) Subsection (e), Section 42.103, Subsection
41-18 (c), Section 42.251, and Subsection (e), Section 42.252, Education
41-19 Code, are repealed.
41-20 (b) Subsection (f), Section 26.08, Tax Code, is repealed.
41-21 SECTION 35. (a) For the 1999-2000 and 2000-2001 school
41-22 years, the commissioner of education shall increase the entitlement
41-23 under the Foundation School Program of a school district that
41-24 experiences additional salary cost resulting from the change in the
41-25 minimum salary schedule under Section 21.402, Education Code, as
41-26 amended by this Act, that is not offset as specified in Subsection
41-27 (b) of this section by the increase in the basic allotment under
42-1 Section 42.101, Education Code, as amended by this Act, and the
42-2 guaranteed yield under Section 42.302, Education Code, as amended
42-3 by this Act, or the increase in the equalized wealth level under
42-4 Section 41.002, Education Code, as amended by this Act, for the
42-5 appropriate school year. For each of those years, the amount of
42-6 additional salary cost is computed by determining what the
42-7 district's salary cost would have been if the appropriate minimum
42-8 salary schedule prescribed by Section 21.402, Education Code, as
42-9 amended by this Act, had been in effect for the 1998-1999 school
42-10 year and comparing the difference between that cost and the amount
42-11 the district was required to pay under the minimum salary schedule
42-12 that was in effect for the 1998-1999 school year to the additional
42-13 state funding the district would have received as a result of the
42-14 appropriate change to the basic allotment if that change had been
42-15 in effect for the 1998-1999 school year. For this purpose, the
42-16 commissioner shall use 1998-1999 employment and salary data as
42-17 reported through the Public Education Information Management
42-18 Systems (PEIMS).
42-19 (b) The commissioner of education shall increase a school
42-20 district's entitlement under this section only if:
42-21 (1) the school district uses the amount of additional
42-22 state funds as required by Subsection (b), Section 20 of this Act,
42-23 to increase the salaries of classroom teachers and full-time
42-24 librarians; and
42-25 (2) that amount does not fully offset the additional
42-26 salary cost.
42-27 (c) A decision by the commissioner of education under this
43-1 section is final and nonappealable.
43-2 SECTION 36. (a) Monthly payments of a death or retirement
43-3 benefit annuity by the Teacher Retirement System of Texas are
43-4 increased beginning with the payment due at the end of September,
43-5 1999.
43-6 (b) The increase does not apply to payments under Subsection
43-7 (a), Section 824.304, Section 824.404, or Section 824.501,
43-8 Government Code.
43-9 (c) Except as provided by Subsection (d) of this section,
43-10 the amount of the monthly increase is computed by multiplying the
43-11 previous monthly benefit by a percentage determined in accordance
43-12 with the following table:
43-13 LATEST RETIREMENT DATE OR, IF APPLICABLE, DATE OF DEATH INCREASE
43-14 Before September 1, 1973 5%
43-15 On or after September 1, 1973, but before September 1, 1974 6%
43-16 On or after September 1, 1974, but before September 1, 1979 5%
43-17 On or after September 1, 1979, but before September 1, 1981 6%
43-18 On or after September 1, 1981, but before September 1, 1982 7%
43-19 On or after September 1, 1982, but before September 1, 1983 6%
43-20 On or after September 1, 1983, but before September 1, 1990 7%
43-21 On or after September 1, 1990, but before September 1, 1991 6%
43-22 On or after September 1, 1991, but before September 1, 1992 7%
43-23 On or after September 1, 1992, but before September 1, 1995 6%
43-24 On or after September 1, 1995, but before September 1, 1997 5%
43-25 On or after September 1, 1997, but before September 1, 1998 2%
43-26 (d) After making the computations required by Subsection (c)
43-27 of this section, the Teacher Retirement System of Texas shall
44-1 increase each annuity payable by the system on September 1, 1999,
44-2 other than an annuity under Subsection (a), Section 824.304,
44-3 Section 824.404, or Section 824.501, Government Code, by 10
44-4 percent, which is a benefit equivalent to the benefit provided by
44-5 using a 2.2 percent multiplier for computing annuities.
44-6 SECTION 37. The State Board for Educator Certification shall
44-7 propose rules establishing requirements and prescribing an
44-8 examination for master reading teacher certification not later than
44-9 January 1, 2001.
44-10 SECTION 38. The commissioner of education shall study the
44-11 effects of a law prohibiting a school district from beginning
44-12 instruction for students for a school year before September 1. The
44-13 commissioner shall include in the study the effects such a law
44-14 would have on students, parents, school personnel, school
44-15 districts, local economies, and the state economy. The
44-16 commissioner shall report the results of the study to the
44-17 legislature not later than January 31, 2001. This section expires
44-18 February 1, 2001.
44-19 SECTION 39. Except as otherwise provided by this Act, this
44-20 Act takes effect September 1, 1999.
44-21 SECTION 40. The importance of this legislation and the
44-22 crowded condition of the calendars in both houses create an
44-23 emergency and an imperative public necessity that the
44-24 constitutional rule requiring bills to be read on three several
44-25 days in each house be suspended, and this rule is hereby suspended.