By Sadler H.B. No. 3343
77R9310 PB-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation, operation, and funding of a statewide
1-3 group benefits program for employees and retirees of school
1-4 districts.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 ARTICLE 1. GROUP BENEFITS PROGRAM
1-7 SECTION 1.01. Subchapter E, Chapter 3, Insurance Code, is
1-8 amended by adding Article 3.50-7 to read as follows:
1-9 Art. 3.50-7. TEXAS SCHOOL EMPLOYEES UNIFORM GROUP BENEFITS
1-10 ACT
1-11 Sec. 1. SHORT TITLE. This article may be cited as the
1-12 Texas School Employees Uniform Group Benefits Act.
1-13 Sec. 2. DEFINITIONS. In this article:
1-14 (1) "Administering firm" means any entity designated
1-15 by the trustee to administer any coverages, services, benefits, or
1-16 requirements under this article and the trustee's rules adopted
1-17 under this article.
1-18 (2) "Basic coverage" means the program of group
1-19 coverages determined by the trustee in which each full-time
1-20 employee and retiree participates automatically unless
1-21 participation is specifically waived.
1-22 (3) "Cafeteria plan" means a plan as defined and
1-23 authorized by Section 125, Internal Revenue Code of 1986 (26 U.S.C.
1-24 Section 125), and its subsequent amendments.
2-1 (4) "Employee" means a participating member of the
2-2 Teacher Retirement System of Texas who is employed by a
2-3 participating school district and who is not covered by a group
2-4 insurance program under the Texas Employees Uniform Group Insurance
2-5 Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code) or the
2-6 Texas State College and University Employees Uniform Insurance
2-7 Benefits Act (Article 3.50-3, Vernon's Texas Insurance Code). The
2-8 term does not include an individual performing personal services
2-9 for a school district as an independent contractor.
2-10 (5) "Health benefit plan" means any group policy or
2-11 contract, medical, dental, or hospital service agreement,
2-12 membership or subscription contract, salary continuation plan,
2-13 health maintenance organization agreement, preferred provider
2-14 arrangement, or any similar group arrangement or any combination of
2-15 those policies, plans, contracts, agreements, or arrangements that
2-16 provides for, pays for, or reimburses expenses for health care
2-17 services.
2-18 (6) "Retiree" means a person who:
2-19 (A) has retired under the Teacher Retirement
2-20 System of Texas with at least 10 years of credit for service in
2-21 public schools of this state or has retired under the Teacher
2-22 Retirement System of Texas for disability and is entitled to
2-23 receive an annuity from the system based on the person's service;
2-24 and
2-25 (B) is not eligible to participate in the group
2-26 insurance program provided under the Texas Employees Uniform Group
2-27 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
3-1 Code) or the Texas State College and University Employees Uniform
3-2 Insurance Benefits Act (Article 3.50-3, Vernon's Texas Insurance
3-3 Code).
3-4 (7) "Trustee" means the Teacher Retirement System of
3-5 Texas.
3-6 Sec. 3. ADMINISTRATION. (a) The Teacher Retirement System
3-7 of Texas, as trustee, shall implement and administer the statewide
3-8 uniform group benefits program described by this article.
3-9 (b) The trustee may hire and compensate employees.
3-10 (c) The trustee may, on a competitive bid basis, contract
3-11 with a qualified, experienced firm of group benefit plan
3-12 specialists or an administering firm who will act for the trustee
3-13 in the capacity of independent administrators and managers of the
3-14 program authorized under this article. The independent
3-15 administrator selected by the trustee shall assist the trustee to
3-16 ensure the proper administration of this article and the coverages,
3-17 services, and benefits provided for or authorized by this article
3-18 and shall be paid by the trustee.
3-19 (d) The trustee may enter into interagency contracts with
3-20 any agency of the state, including the Employees Retirement System
3-21 of Texas, for the purpose of assistance in implementing the program
3-22 provided by this article.
3-23 (e) The trustee has the powers with regard to the program
3-24 described by this article that the Employees Retirement System of
3-25 Texas has in administering the Texas Employees Uniform Group
3-26 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
3-27 Code), including the power to adjudicate claims, expel participants
4-1 from the program for cause, and adopt rules to administer this
4-2 article.
4-3 Sec. 4. PARTICIPATION IN PROGRAM. (a) Each school district
4-4 is required to participate in the program.
4-5 (b) Each full-time employee or retiree of a school district
4-6 is automatically covered by the basic coverage for employees or
4-7 retirees, as applicable, unless the employee or retiree
4-8 specifically waives coverage or unless the employee or retiree is
4-9 expelled from the program.
4-10 (c) Each part-time employee of a participating school
4-11 district is eligible to participate in the program provided by this
4-12 article on application in the manner provided by the trustee,
4-13 unless the employee has been expelled from the program. A
4-14 participating school district shall notify each of its part-time
4-15 employees of the employee's eligibility for participation in the
4-16 program.
4-17 Sec. 5. GROUP COVERAGES. (a) The trustee shall establish
4-18 plans of group coverages for employees and retirees of school
4-19 districts and their dependents. The coverages shall be comparable
4-20 in scope and, to the greatest extent possible, in cost to the
4-21 coverages provided under the Texas Employees Uniform Group
4-22 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
4-23 Code) and may include group life coverages, health benefit plans,
4-24 accidental death and dismemberment coverages, coverages against
4-25 short-term or long-term loss of salary, and other coverages
4-26 considered advisable by the trustee. Comparable plans of each type
4-27 of coverage established must be offered to employees and retirees
5-1 of all school districts.
5-2 (b) The trustee by rule may define the basic coverage in
5-3 which each full-time employee or retiree participates unless
5-4 specifically waived. Basic coverage must include a health benefit
5-5 plan. The trustee by rule may define optional coverage, which may
5-6 include coverage for dependents, and voluntary coverage.
5-7 (c) The trustee may provide a cafeteria plan for employees
5-8 of school districts.
5-9 (d) The trustee may determine that plans of coverages be
5-10 provided directly from the fund described by Section 7 of this
5-11 article rather than through the purchase of coverage. Any
5-12 self-funded plan of coverages is exempt from any other provision of
5-13 this code unless the law specifically applies to the plan or to
5-14 this article.
5-15 Sec. 6. PAYMENT OF CONTRIBUTIONS. (a) The state shall pay
5-16 from the fund established under Section 7 of this article, for each
5-17 employee and retiree covered by the program, an amount equal to the
5-18 amount the state contributes for participants in the program
5-19 provided under the Texas Employees Uniform Group Insurance Benefits
5-20 Act (Article 3.50-2, Vernon's Texas Insurance Code).
5-21 (b) Each employee and retiree covered by the program shall
5-22 pay that portion of the cost of coverage selected by the employee
5-23 or retiree that exceeds the amount of state contributions.
5-24 Sec. 7. FUND. (a) The Texas school employees uniform group
5-25 benefits trust fund is established as a trust fund with the
5-26 comptroller. The fund is composed of tax revenue dedicated to the
5-27 fund and any amounts appropriated by the legislature for
6-1 contingency reserves, administrative expenses, or other expenses.
6-2 The trustee may use amounts in the fund only to provide group
6-3 coverages under this article and to pay the expenses of
6-4 administering the program.
6-5 (b) The trustee may invest assets of the fund in the manner
6-6 provided by Section 67(a)(3), Article XVI, Texas Constitution.
6-7 SECTION 1.02. Article 3.50-4, Insurance Code, is amended by
6-8 adding Section 3A to read as follows:
6-9 Sec. 3A. TERMINATION OF PROGRAM AND TRANSFER OF PROPERTY.
6-10 (a) The trustee shall transfer from the program established under
6-11 this article all coverages provided under the program and all
6-12 records relating to the program to the group benefits program
6-13 established under Article 3.50-7 of this code not later than the
6-14 date on which the program of coverages provided under Article
6-15 3.50-7 of this code is implemented.
6-16 (b) The comptroller shall transfer from the program
6-17 established under this article all assets and liabilities of that
6-18 program to the group benefits program established under Article
6-19 3.50-7 of this code not later than the date on which the program of
6-20 coverages provided under Article 3.50-7 of this code is
6-21 implemented.
6-22 (c) On the transfer of property described by this section,
6-23 the program provided by this article is terminated.
6-24 SECTION 1.03. Article 3.51, Insurance Code, is amended by
6-25 adding Section 3 to read as follows:
6-26 Sec. 3. Notwithstanding any other provision of this article,
6-27 a common or independent school district or any other agency or
7-1 subdivision of the public school system of this state may not
7-2 procure insurance contracts under this article and may not renew an
7-3 insurance contract procured under this article after the date on
7-4 which the program of coverages provided under Article 3.50-7 of
7-5 this code is implemented.
7-6 SECTION 1.04. Article 26.036, Insurance Code, is amended by
7-7 adding Subsection (c) to read as follows:
7-8 (c) An independent school district may not participate in
7-9 the small employer market under this article and may not renew an
7-10 insurance contract obtained in accordance with this article after
7-11 the date on which the program of coverages provided under Article
7-12 3.50-7 of this code is implemented.
7-13 SECTION 1.05. Section 22.004, Education Code, is amended by
7-14 adding Subsection (h) to read as follows:
7-15 (h) Notwithstanding any other provision of this section, a
7-16 district may not make group health coverage available to its
7-17 employees under this section after the date on which the program of
7-18 coverages provided under Article 3.50-7, Insurance Code, is
7-19 implemented. A district is required to begin participating in the
7-20 program provided under Article 3.50-7, Insurance Code, on the later
7-21 of:
7-22 (1) the first day of the first school year beginning
7-23 after the date of implementation of Article 3.50-7, Insurance Code;
7-24 or
7-25 (2) the date on which the district's contract for
7-26 group health insurance coverage expires.
7-27 ARTICLE 2. PROGRAM FUNDING THROUGH CERTAIN DEDICATED TAXES
8-1 SECTION 2.01. Section 151.051(b), Tax Code, is amended to
8-2 read as follows:
8-3 (b) The sales tax rate is 7-1/4 [6 1/4] percent of the sales
8-4 price of the taxable item sold.
8-5 SECTION 2.02. Section 151.801, Tax Code, is amended by
8-6 amending Subsection (a) and adding Subsection (f) to read as
8-7 follows:
8-8 (a) Except for the amounts allocated under Subsections (b),
8-9 [and] (c), and (f), all proceeds from the collection of the taxes
8-10 imposed by this chapter shall be deposited to the credit of the
8-11 general revenue fund.
8-12 (f) Subject to Subsection (b), all proceeds from the tax
8-13 imposed by this chapter above the rate of 6-1/4 percent of the
8-14 sales price of the taxable item sold shall be deposited to the
8-15 credit of the fund described in Section 7, Article 3.50-7,
8-16 Insurance Code.
8-17 SECTION 2.03. Section 156.052, Tax Code, is amended to read
8-18 as follows:
8-19 Sec. 156.052. RATE OF TAX. The rate of the tax imposed by
8-20 this chapter is seven [six] percent of the price paid for a room in
8-21 a hotel.
8-22 SECTION 2.04. Section 156.251, Tax Code, is amended by
8-23 amending Subsection (a) and adding Subsection (b) to read as
8-24 follows:
8-25 (a) Except as provided by Subsection (b), the [The] revenue
8-26 from the tax imposed by this chapter shall be deposited in the
8-27 state treasury to the credit of the general revenue fund.
9-1 (b) The revenue from the tax imposed by this chapter above
9-2 the rate of six percent of the price paid for a room in a hotel
9-3 shall be deposited to the credit of the fund described in Section
9-4 7, Article 3.50-7, Insurance Code.
9-5 SECTION 2.05. Section 171.002(a), Tax Code, is amended to
9-6 read as follows:
9-7 (a) The rates of the franchise tax are:
9-8 (1) 0.25 percent per year of privilege period of net
9-9 taxable capital; and
9-10 (2) 5.5 [4.5] percent of net taxable earned surplus.
9-11 SECTION 2.06. Section 171.401, Tax Code, is amended to read
9-12 as follows:
9-13 Sec. 171.401. REVENUE DEPOSITED IN GENERAL REVENUE FUND. (a)
9-14 Except as provided by Subsection (b), the [The] revenue from the
9-15 tax imposed by this chapter on corporations shall be deposited to
9-16 the credit of the general revenue fund.
9-17 (b) The revenue from the tax imposed by this chapter at a
9-18 rate above 4.5 percent of net taxable earned surplus shall be
9-19 deposited to the credit of the fund described in Section 7, Article
9-20 3.50-7, Insurance Code.
9-21 SECTION 2.07. (a) If this Act receives a vote of two-thirds
9-22 of all the members elected to each house, as provided by Section
9-23 39, Article III, Texas Constitution, Sections 2.01-2.06 of this Act
9-24 take effect July 1, 2001.
9-25 (b) If this Act does not receive the vote necessary for
9-26 immediate effect:
9-27 (1) Sections 2.01 and 2.02 of this Act take effect
10-1 October 1, 2001; and
10-2 (2) Sections 2.03-2.06 of this Act take effect
10-3 September 1, 2001.
10-4 ARTICLE 3. PROGRAM FUNDING THROUGH PROPERTY TAX
10-5 SECTION 3.01. Section 42.253, Education Code, is amended by
10-6 amending Subsections (f)-(l) and adding Subsection (m) to read as
10-7 follows:
10-8 (f) For the first school year in which a school district
10-9 levies a tax under Section 45.003(f), the rate authorized under
10-10 Subsection (e) is reduced by an amount equal to the portion of the
10-11 district's maintenance and operations tax rate for the final year
10-12 of the preceding biennium necessary for the district to pay for its
10-13 expenditures for that year, if any, for group health coverage for
10-14 district employees. The commissioner may adopt rules necessary to
10-15 administer this subsection. A decision of the commissioner under
10-16 this subsection is final and may not be appealed.
10-17 (g) Amounts transferred to the reserve account under
10-18 Subsection (e) shall be used in the succeeding fiscal year to
10-19 finance increases in allocations to school districts under
10-20 Subsection (j) [(i)]. If the amount in the reserve account is less
10-21 than the amount of the increases under Subsection (j) [(i)] for the
10-22 second year of a state fiscal biennium, the commissioner shall
10-23 certify the amount of the difference to the Legislative Budget
10-24 Board not later than January 1 of the second year of the state
10-25 fiscal biennium. The Legislative Budget Board shall propose to the
10-26 legislature that the certified amount be transferred to the
10-27 foundation school fund from the economic stabilization fund and
11-1 appropriated for the purpose of increases in allocations under
11-2 Subsection (i) [(h)].
11-3 (h) [(g)] If a school district demonstrates to the
11-4 satisfaction of the commissioner that the estimate of the
11-5 district's tax rate, student enrollment, or taxable value of
11-6 property used in determining the amount of state funds to which the
11-7 district is entitled are so inaccurate as to result in undue
11-8 financial hardship to the district, the commissioner may adjust
11-9 funding to that district in that school year to the extent that
11-10 funds are available for that year, including funds in the reserve
11-11 account. Funds in the reserve account may not be used under this
11-12 subsection until any reserve funds have been used for purposes of
11-13 Subsection (g) [(f)].
11-14 (i) [(h)] If the legislature fails during the regular
11-15 session to enact the transfer and appropriation proposed under
11-16 Subsection (g) [(f)] and there are not funds available under
11-17 Subsection (k) [(j)], the commissioner shall reduce the total
11-18 amount of state funds allocated to each district by an amount
11-19 determined by a method under which the application of the same
11-20 number of cents of increase in tax rate in all districts applied to
11-21 the taxable value of property of each district, as determined under
11-22 Subchapter M, Chapter 403, Government Code, results in a total levy
11-23 equal to the total reduction. The following fiscal year, a
11-24 district's entitlement under this section is increased by an amount
11-25 equal to the reduction made under this subsection.
11-26 (j) [(i)] Not later than March 1 each year, the commissioner
11-27 shall determine the actual amount of state funds to which each
12-1 school district is entitled under the allocation formulas in this
12-2 chapter for the current school year and shall compare that amount
12-3 with the amount of the warrants issued to each district for that
12-4 year. If the amount of the warrants differs from the amount to
12-5 which a district is entitled because of variations in the
12-6 district's tax rate, student enrollment, or taxable value of
12-7 property, the commissioner shall adjust the district's entitlement
12-8 for the next fiscal year accordingly.
12-9 (k) [(j)] The legislature may appropriate funds necessary
12-10 for increases under Subsection (j) [(i)] from funds that the
12-11 comptroller, at any time during the fiscal year, finds are
12-12 available.
12-13 (l) [(k)] The commissioner shall compute for each school
12-14 district the total amount by which the district's allocation of
12-15 state funds is increased or reduced under Subsection (j) [(i)] and
12-16 shall certify that amount to the district.
12-17 (m) [(l)] In this section, the number of students in
12-18 weighted average daily attendance is calculated in the manner
12-19 provided by Section 42.302.
12-20 SECTION 3.02. Section 42.302(b), Education Code, is amended
12-21 to read as follows:
12-22 (b) In computing the district enrichment tax rate of a
12-23 school district, the total amount of maintenance and operations
12-24 taxes collected by the school district does not include the amount
12-25 of:
12-26 (1) the district's local fund assignment under Section
12-27 42.252; [or]
13-1 (2) taxes levied under Section 45.003(f); or
13-2 (3) taxes paid into a tax increment fund under Chapter
13-3 311, Tax Code.
13-4 SECTION 3.03. Section 45.003, Education Code, is amended by
13-5 amending Subsection (d) and adding Subsections (f)-(h) to read as
13-6 follows:
13-7 (d) Except as provided by Subsection (f), a [A] proposition
13-8 submitted to authorize the levy of maintenance taxes must include
13-9 the question of whether the governing board or commissioners court
13-10 may levy, assess, and collect annual ad valorem taxes for the
13-11 further maintenance of public schools, at a rate not to exceed the
13-12 rate, which may be not more than $1.50 on the $100 valuation of
13-13 taxable property in the district, stated in the proposition.
13-14 (f) In addition to a proposition submitted under Subsection
13-15 (d), a proposition may be submitted to authorize the levy of
13-16 maintenance taxes that includes the question of whether the
13-17 governing board or commissioners court may levy, assess, and
13-18 collect annual ad valorem taxes for the specific purpose of
13-19 receiving state equalization aid to permit the district or county
13-20 to participate in the Texas school employees group benefits program
13-21 under Article 3.50-7, Insurance Code, at:
13-22 (1) a rate not to exceed the rate stated in the
13-23 proposition; or
13-24 (2) a rate sufficient to permit the district to
13-25 participate in the Texas school employees group benefits program.
13-26 (g) On the ballot containing a proposition submitted under
13-27 Subsection (f), immediately following the proposition the ballot
14-1 shall state: "This tax, if approved, would result in a (net
14-2 decrease or net increase) of ($___) on the $100 valuation of
14-3 taxable property in the (district or county)." For a district that
14-4 levies a tax for which state aid will not be provided under Section
14-5 42.253(f) at a rate that is greater than the tax rate under Section
14-6 45.0031 for the following school year, the amount of a net decrease
14-7 to be stated is the difference between the portion of the district
14-8 tax rate for which state aid will not be provided under Section
14-9 42.253(f) and the tax rate under Section 45.0031. The amount of a
14-10 net increase to be stated is:
14-11 (1) for a district that levies a tax for which state
14-12 aid will not be provided under Section 42.253(f) at a rate that is
14-13 less than the tax rate under Section 45.0031 for the following
14-14 school year, the difference between the tax rate under Section
14-15 45.0031 and the portion of the district tax rate for which state
14-16 aid will not be provided under Section 42.253(f); or
14-17 (2) for a district that does not levy a tax for which
14-18 state aid will not be provided under Section 42.253(f), the tax
14-19 rate under Section 45.0031 for the following school year.
14-20 (h) The limitation on the tax rate under Subsection (d) does
14-21 not apply to the combined rate of taxes imposed as a result of an
14-22 election under Subsection (d) and an election under Subsection (f).
14-23 SECTION 3.04. Subchapter A, Chapter 45, Education Code, is
14-24 amended by adding Sections 45.0031 and 45.0032 to read as follows:
14-25 Sec. 45.0031. TAX RATE FOR PARTICIPATION IN GROUP BENEFIT
14-26 PLANS. (a) The legislature in the General Appropriations Act shall
14-27 set for each year of the state fiscal biennium the effective tax
15-1 rate, expressed as a number of cents on the $100 valuation of
15-2 taxable property, that school districts must levy under Section
15-3 45.003(f) to receive state equalization aid to permit the districts
15-4 to participate in the Texas school employees group benefits program
15-5 under Article 3.50-7, Insurance Code. An effective tax rate under
15-6 this subsection must be based on the estimates required under
15-7 Section 42.254(a)(2) of the taxable value of property of school
15-8 districts participating in the Texas school employees group
15-9 benefits program. The employees of a district that levies the
15-10 required effective tax rate and remits the required revenue as
15-11 provided by Section 45.0032 are eligible to participate in the
15-12 program and are entitled to receive the primary health plan
15-13 coverage under the Texas school employees group benefits program
15-14 without any further expenditure by the district.
15-15 (b) Each year, the comptroller shall certify to each
15-16 participating school district in writing:
15-17 (1) the effective tax rate set under Subsection (a);
15-18 (2) the amount of revenue the district must provide to
15-19 participate in the Texas school employees group benefits program,
15-20 which is determined by multiplying the effective tax rate set under
15-21 Subsection (a) by the quotient of the district's taxable value of
15-22 property for the preceding tax year, as determined under Subchapter
15-23 M, Chapter 403, Government Code, or, if applicable, under Section
15-24 42.2521, divided by 100; and
15-25 (3) as determined by the board of trustees of the
15-26 Teacher Retirement System of Texas, the actual cost per full-time
15-27 employee, expressed as a monthly premium, for coverage under the
16-1 group coverage plans established under Article 3.50-7, Insurance
16-2 Code.
16-3 (c) Each school district that will levy taxes under Section
16-4 45.003(f) shall determine the nominal rate the district must levy
16-5 to collect the amount of revenue certified under Subsection (b)(2).
16-6 In determining a nominal rate under this subsection, a school
16-7 district shall use the district's anticipated collection rate
16-8 certified to the district under Section 26.04(b), Tax Code.
16-9 Sec. 45.0032. REMITTANCE OF REVENUE FOR PARTICIPATION IN
16-10 GROUP HEALTH PROGRAM. (a) A school district that levies a tax
16-11 under Section 45.003(f) to permit the district to participate in
16-12 the Texas school employees group benefits program under Article
16-13 3.50-7, Insurance Code, shall, in the time and manner prescribed by
16-14 comptroller rule, remit to the comptroller for deposit in the
16-15 school employees uniform group benefits trust fund the amount of
16-16 revenue certified to the district under Section 45.0031(b)(2).
16-17 (b) If the revenue received from a tax levied under Section
16-18 45.003(f) is less than the amount of revenue certified to the
16-19 school district under Section 45.0031(b)(2), or if the district
16-20 does not levy a tax under Section 45.003(f), the district shall
16-21 remit other revenue sufficient to comply with Subsection (a). If
16-22 the revenue received from a tax levied under Section 45.003(f) is
16-23 greater than the amount of revenue certified to the district under
16-24 Section 45.0031(b)(2), the district shall:
16-25 (1) deposit or invest the excess funds in accordance
16-26 with law; and
16-27 (2) use the excess funds and the interest or earnings
17-1 on the excess funds to comply with the district's obligation under
17-2 this section in the subsequent fiscal year.
17-3 (c) If a school district fails to comply with Subsection
17-4 (a), the comptroller or commissioner, as appropriate, may:
17-5 (1) reduce the district's aid under Chapter 42 for the
17-6 current or a subsequent school year;
17-7 (2) take any action permitted by Section 42.258 for
17-8 recovery of an overallocation of state funds distributed under
17-9 Chapter 42; or
17-10 (3) if the district is required to take action under
17-11 Chapter 41 to reduce its wealth per student to the equalized wealth
17-12 level, adjust the district's wealth per student in the amount
17-13 necessary to require the district to purchase attendance credits
17-14 under Subchapter D, Chapter 41, costing an amount equal to the
17-15 amount of revenue the district fails to remit under Subsection (a).
17-16 (d) The comptroller shall deposit all revenue received under
17-17 this section in the school employees uniform group benefits trust
17-18 fund under Article 3.50-7, Insurance Code.
17-19 SECTION 3.05. Section 26.08, Tax Code, is amended by adding
17-20 Subsection (k) to read as follows:
17-21 (k) For the first tax year in which a school district levies
17-22 a tax under Section 45.003(f), Education Code, the rollback rate
17-23 for the district under Subsection (i) is reduced by an amount equal
17-24 to the portion of the district maintenance and operations tax rate
17-25 for which state aid will not be provided under Section 42.253(f),
17-26 Education Code.
17-27 SECTION 3.06. Section 43.008, Education Code, is repealed.
18-1 SECTION 3.07. This article takes effect only if the
18-2 constitutional amendment proposed by the 77th Legislature, Regular
18-3 Session, 2001, relating to the provision of group benefits for
18-4 active and retired school employees and distributions from the
18-5 permanent school fund is approved by the voters. If the proposed
18-6 constitutional amendment is not approved by the voters, this
18-7 article has no effect.
18-8 ARTICLE 4. PROGRAM FUNDING THROUGH MOTOR FUEL TAXES
18-9 SECTION 4.01. Section 153.102, Tax Code, is amended to read
18-10 as follows:
18-11 Sec. 153.102. TAX RATES. (a) The gasoline tax rate is 25
18-12 [20] cents for each gross or volumetric gallon or fractional part
18-13 sold or used in this state except as provided by Subsection (b).
18-14 (b) The gasoline tax rate for gasoline sold to a transit
18-15 company for exclusive use in its transit carrier vehicles under an
18-16 exemption certificate promulgated by the comptroller is 24 [19]
18-17 cents for each gallon.
18-18 SECTION 4.02. Section 153.202, Tax Code, is amended to read
18-19 as follows:
18-20 Sec. 153.202. TAX RATES. (a) The diesel fuel tax rate is 25
18-21 [20] cents for each gross or volumetric gallon or fractional part
18-22 sold or used in this state except as provided by Subsection (b).
18-23 (b) The diesel fuel tax rate for diesel fuel sold by a
18-24 permitted supplier to a transit company for exclusive use in its
18-25 transit vehicles under an exemption certificate issued by the
18-26 comptroller is 24.5 [19.5] cents for each gallon.
18-27 SECTION 4.03. Section 153.301(b), Tax Code, is amended to
19-1 read as follows:
19-2 (b) The liquefied gas tax rate is 20 [15] cents a gallon.
19-3 SECTION 4.04. Sections 153.305(a) and (c), Tax Code, are
19-4 amended to read as follows:
19-5 (a) A user of liquefied gas for the propulsion of a motor
19-6 vehicle on the public highways of Texas shall pay in advance
19-7 annually on each motor vehicle owned, operated, and licensed in
19-8 Texas by him, a tax based on the registered gross weight and
19-9 mileage driven the previous year in the following schedule:
19-10 Less Than 5,000 to 10,000 to 15,000
19-11 5,000 9,999 14,999 miles
19-12 miles miles miles and over
19-13 Class A: Less than
19-14 4,000 pounds $ 40 [$ 30] $ 80 [$ 60] $ 120 [$ 90] $ 160 [$120]
19-15 Class B: 4,000 to
19-16 10,000 pounds 56 [42] 112 [84] 168 [126] 224 [168]
19-17 Class C: 10,001 to
19-18 15,000 pounds 64 [48] 128 [96] 192 [144] 256 [192]
19-19 Class D: 15,001 to
19-20 27,500 pounds 112 [84] 224 [168] 336 [252] 448 [336]
19-21 Class E: 27,501 to
19-22 43,500 pounds 168 [126] 336 [252] 504 [378] 672 [504]
19-23 Class F: 43,501
19-24 pounds and over 248 [186] 496 [372] 744 [558] 992 [744]
19-25 (c) The following special use liquefied gas tax decal and
19-26 tax shall be required for the types of vehicles described below:
20-1 Class T: Transit carrier vehicles operated by a
20-2 transit company ............................. $592 [$444]
20-3 SECTION 4.05. Subchapter F, Chapter 153, Tax Code, is amended
20-4 by adding Section 153.506 to read as follows:
20-5 Sec. 153.506. ALLOCATION OF REVENUE FROM CERTAIN TAX
20-6 INCREASES. Notwithstanding any other provision of this subchapter,
20-7 the net revenue derived from an increase in the rate of a tax
20-8 imposed under this chapter over the rate of the tax on January 1,
20-9 2001, shall be used for the sole purpose of funding group benefits
20-10 for employees and retirees of school districts under Article
20-11 3.50-7, Insurance Code.
20-12 SECTION 4.06. (a) Except as provided by Subsection (b), this
20-13 article takes effect September 1, 2001, and applies to a taxable
20-14 sale or use of motor fuel under Chapter 153, Tax Code, on or after
20-15 that date. The taxable sale or use of motor fuel before the
20-16 effective date of this article is governed by the law in effect at
20-17 the time of the transaction, and that law is continued in effect
20-18 for the enforcement and collection of those taxes.
20-19 (b) Section 4.05 of this article takes effect January 1,
20-20 2002, but only if the constitutional amendment proposed by the 77th
20-21 Legislature, Regular Session, 2001, dedicating increases in the
20-22 rate of a motor fuel tax to fund group benefits for employees of
20-23 school districts takes effect. If the proposed constitutional
20-24 amendment is not approved, this article has no effect.
20-25 ARTICLE 5. TRANSITION; EFFECTIVE DATE
20-26 SECTION 5.01. Except as expressly provided by this Act, this
20-27 Act takes effect September 1, 2001.
21-1 SECTION 5.02. The Teacher Retirement System of Texas shall
21-2 adopt rules as necessary to implement Article 3.50-7, Insurance
21-3 Code, as added by this Act, not later than December 31, 2001.
21-4 SECTION 5.03. (a) During the 2001-2002 school year, the
21-5 Teacher Retirement System of Texas shall develop the plan or plans
21-6 to be implemented and administered under Article 3.50-7, Insurance
21-7 Code, as added by this Act. The system may employ persons as
21-8 necessary to implement this subsection.
21-9 (b) The Teacher Retirement System of Texas shall enroll
21-10 persons in the program provided under Article 3.50-7, Insurance
21-11 Code, as added by this Act, beginning with the 2002-2003 school
21-12 year, but not later than September 1, 2002.