By Wentworth                                          S.B. No. 1139
         76R7103 KKA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the taxable value of property of a school district that
 1-3     does not offer each grade level from kindergarten to 12th grade.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter B, Chapter 42, Education Code, is
 1-6     amended by adding Section 42.106 to read as follows:
 1-7           Sec. 42.106.  ADJUSTED PROPERTY VALUE FOR DISTRICTS NOT
 1-8     OFFERING ALL GRADE LEVELS.  For purposes of this chapter, the
 1-9     taxable value of property of a school district that contracts for
1-10     students residing in the district to be educated in another
1-11     district under Section 25.039(a) is adjusted by applying the
1-12     formula:
1-13                           ADPV = DPV - (TN/.015)
1-14     where:
1-15           "ADPV" is the district's adjusted taxable value of property;
1-16           "DPV" is the taxable value of property in the district for
1-17     the preceding tax year determined under Subchapter M, Chapter 403,
1-18     Government Code; and
1-19           "TN" is the total amount of tuition required to be paid by
1-20     the district under Section 25.038 for the school year for which the
1-21     adjustment is made.
1-22           SECTION 2.  This Act takes effect September 1, 1999.