78S40050 ESH-F

By:  Seaman                                                       H.B. No. 38 



A BILL TO BE ENTITLED

AN ACT

relating to adjustments for purposes of state aid to the taxable 
value of property or ad valorem taxes of a school district.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 42.2531, Education Code, is amended to 
read as follows:  
	Sec. 42.2531.  ADJUSTMENT BY COMMISSIONER.  (a)  The 
commissioner shall [may] make adjustments to amounts due to a 
school district under this chapter or Chapter 46, or to amounts 
necessary for a district to comply with the requirements of Chapter 
41, as provided by this section.
	(b)  A school district that has a [major] taxpayer[, as 
determined by the commissioner,] that because of an appeal or other 
judicial proceeding concerning [a protest of] the valuation of the 
taxpayer's property fails to pay all [or a portion of the] ad 
valorem taxes due to the district may apply to the commissioner to 
have the district's taxable value of property or ad valorem tax 
collections adjusted for purposes of this chapter or Chapter 41 or 
46.  The commissioner shall [may] make the adjustment [only] to the 
extent the commissioner determines that making the adjustment will 
not:
		(1)  in the fiscal year in which the adjustment is made, 
cause the amount to which school districts are entitled under this 
chapter to exceed the amount appropriated for purposes of the 
Foundation School Program for that year; and
		(2)  if the adjustment is made in the first year of a 
state fiscal biennium, cause the amount to which school districts 
are entitled under this chapter for the second year of the biennium 
to exceed the amount appropriated for purposes of the Foundation 
School Program for that year.
	(c)  The commissioner shall recover the benefit of any 
adjustment made under this section by making offsetting adjustments 
in the school district's taxable value of property or ad valorem tax 
collections for purposes of this chapter or Chapter 41 or 46 on a 
final judicial determination of the taxable value of property that 
was the basis of the [original] adjustment under Subsection (b)[, 
or in the second school year following the year in which the 
adjustment is made, whichever is earlier].
	[(d)  This section does not require the commissioner to make 
any requested adjustment.  A determination by the commissioner 
under this section is final and may not be appealed.]
	SECTION 2.  This Act takes effect September 1, 2004.