C.S.H.B. 1052 78(R)    BILL ANALYSIS


C.S.H.B. 1052
By: Villarreal
Local Government Ways and Means
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

School enrollment in Texas' public schools increases each year by nearly
59,000 new students.  Most of this growth in concentrated in 100 school
districts.  Communities must respond to this rapid growth by building and
expanding facilities to accommodate new students.  School boards may
access funds for new facilities from the state Instructional Facilities
Allotment or they may ask voters to approve bond measures.  However, these
revenue sources have severe limitations.  The Instructional Facilities
Allotment if intended for both construction of new facilities as well as
maintenance on existing facilities.  Furthermore, as more school districts
reach the $1.50 property tax cap, voters are increasingly unwilling to
approve bonds.  

C.S.H.B. 1052 provides another tool for school districts to respond to
rapid growth.  It authorizes the Commissioner of Education to enact rules
governing the assessment of impact fees on new residential construction by
school districts.  


RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is expressly
granted to the Commissioner of Education in SECTION 1 via Section
47.001(c) and 47.006, Education Code, of this bill. 


ANALYSIS

C.S.H.B. 1052  requires the Commissioner of Education to establish an
advisory committee that will assist in the development of rules governing
the assessment of impact fees on new residential construction. The fees
must be used for the construction or expansion of school facilities to
accommodate growth.  Importantly, the bill stipulates that allocation of
land by developers to school districts is an acceptable remedy in lieu of
fees.  The bill prohibits municipalities from granting approval to a plat
or replat of residential development until the developer has satisfied
obligations imposed by this legislation. 


EFFECTIVE DATE

September 1, 2003.


COMPARISON OF ORIGINAL TO SUBSTITUTE

SECTION 1 of the bill is changed by adding a requirement within Section
47.001 (c) of the Education Code that the Commissioner of Education must
take into consideration recommendation by the advisory committee and also
bases the formula on anticipated growth.   The requirements for the
creation of the advisory committee itself is also added to the substitute
in SECTION 1 via Section 47.005 of the Education Code.