By: Griggs H.B. No. 2681
A BILL TO BE ENTITLED
AN ACT
relating to public school finance.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. PUBLIC SCHOOL FINANCE
SECTION 1.01. Section 42.002(a), Education Code, is amended
to read as follows:
[(a)] The purposes of the Foundation School Program set
forth in this chapter are to guarantee that each school district in
the state has:
(1) adequate resources to provide each eligible
student an exemplary [a basic] instructional program [and
facilities] suitable to the student's educational needs; and
(2) access to resources [a substantially equalized
program of financing] in excess of the [basic] costs of an exemplary
instructional program [for certain services], as provided by this
chapter.
SECTION 1.02. Subchapter A, Chapter 42, Education Code, is
amended by adding Section 42.0051 to read as follows:
Sec. 42.0051. WEIGHTED AVERAGE DAILY ATTENDANCE. In this
chapter, the number of students in weighted average daily
attendance is calculated by dividing the sum of a school district's
allotments under Subchapters B and C, less any allotment to the
district for transportation, any allotment under Section 42.158,
and 50 percent of the adjustment under Section 42.102, by the basic
allotment for the applicable year.
SECTION 1.03. Sections 42.007(c) and (d), Education Code,
are amended to read as follows:
(c) The funding elements must include:
(1) a basic allotment for the purposes of Section
42.101 [that, when combined with the guaranteed yield component
provided by Subchapter F, represents the cost per student of a
regular education program that meets all mandates of law and
regulation];
(2) adjustments designed to reflect the variation in
known resource costs and costs of education beyond the control of
school districts; and
(3) appropriate program cost differentials and other
funding elements for the programs authorized under Subchapter C,
with the program funding level expressed as dollar amounts and as
weights applied to the adjusted basic allotment for the appropriate
year[;
[(4) the maximum guaranteed level of qualified state
and local funds per student for the purposes of Subchapter F;
[(5) the enrichment and facilities tax rate under
Subchapter F;
[(6) the computation of students in weighted average
daily attendance under Section 42.302; and
[(7) the amount to be appropriated for the school
facilities assistance program under Chapter 46].
(d) The board shall conduct a study on the funding elements
each biennium, as appropriate. [The study must include a
determination of the projected cost to the state in the next state
fiscal biennium of ensuring the ability of each school district to
maintain existing programs without increasing property tax rates.]
SECTION 1.04. Section 42.101, Education Code, is amended to
read as follows:
Sec. 42.101. BASIC ALLOTMENT. For each student in average
daily attendance, not including the time students spend each day in
special education programs in an instructional arrangement other
than mainstream or career and technology education programs, for
which an additional allotment is made under Subchapter C, a
district is entitled to an allotment in an amount, as determined by
the commissioner in cooperation with the Legislative Budget Board,
equal to the average expenditure of state and local funds per
student during the 2001-2002 school year in all school districts
rated as exemplary under Section 39.072 for that school year [of
$2,537]. A greater amount for any school year may be provided by
appropriation. The commissioner shall adjust the amount as
appropriate to reflect the findings of any state study of the cost
of providing an adequate education to students in this state.
SECTION 1.05. Section 42.105, Education Code, is amended to
read as follows:
Sec. 42.105. SPARSITY ADJUSTMENT. Notwithstanding
Sections 42.101, 42.102, and 42.103, a school district that has
fewer than 130 students in average daily attendance shall be
provided an adjusted basic allotment on the basis of 130 students in
average daily attendance if it does not offer a high school program,
[offers a kindergarten through grade 12 program and] has preceding
or current year's average daily attendance of at least 90 students,
and [or] is 30 miles or more by bus route from the nearest high
school district. A district offering a kindergarten through grade
8 program whose preceding or current year's average daily
attendance was at least 50 students and [or] which is 30 miles or
more by bus route from the nearest high school district shall be
provided an adjusted basic allotment on the basis of 75 students in
average daily attendance. An average daily attendance of 60
students shall be the basis of providing the adjusted basic
allotment if a district offers a kindergarten through grade 6
program, [and] has preceding or current year's average daily
attendance of at least 40 students, and [or] is 30 miles or more by
bus route from the nearest high school district.
SECTION 1.06. Section 42.201(d), Education Code, is amended
to read as follows:
(d) If a school district fails to reduce administrative
costs to the level required by this section, the commissioner shall
deduct from a school district's exemplary program [tier one]
allotments an amount equal to the amount by which the district's
administrative costs exceed the amount permitted by its
administrative cost ratio, unless the commissioner has granted a
waiver in response to the district's request. The commissioner
shall make a deduction under this subsection from the foundation
school fund payments to the district in the school year following
the school year in which the plan to reduce costs was to be
implemented. If a school district does not receive an exemplary
program [a tier one] allotment, the district shall remit an amount
equal to the excess to the comptroller for deposit to the credit of
the foundation school fund.
SECTION 1.07. Section 42.251, Education Code, is amended to
read as follows:
Sec. 42.251. FINANCING; GENERAL RULE. (a) The sum of the
basic allotment under Subchapter B and the special allotments under
Subchapter C, computed in accordance with this chapter, constitute
the exemplary program [tier one] allotments. The sum of the
exemplary program [tier one] allotments and the enrichment amounts
[guaranteed yield allotments] under Subchapter F, computed in
accordance with this chapter, constitute the total cost of the
Foundation School Program. The cost of an exemplary program
provides the cost for an equalized education for all Texas
students.
(b) The program shall be financed by:
(1) ad valorem tax revenue generated by a [an
equalized] uniform school district effort;
(2) ad valorem tax revenue generated by local school
district effort in excess of the [equalized] uniform school
district effort;
(3) state available school funds distributed in
accordance with law; and
(4) state funds appropriated for the purposes of
public school education and allocated to each district in
accordance with this chapter [an amount sufficient to finance the
cost of each district's Foundation School Program not covered by
other funds specified in this subsection].
(c) The state shall provide each district with state revenue
sufficient to pay at least 50 percent of the total amount of
exemplary program allotments to which the district is entitled.
(d) Notwithstanding any other provision of this chapter, a
school district is entitled to the amount of state revenue needed to
maintain state and local revenue in an amount equal to state and
local revenue per weighted student for maintenance and operation of
the district for the 2002-2003 school year less the district's
current year distribution per weighted student from the available
school fund, other than amounts distributed under Chapter 31, if
the district imposes an effective tax rate for maintenance and
operation of the district at least equal to the district's tax rate
for the 2002-2003 school year. This subsection expires September
1, 2005.
SECTION 1.08. The heading to Section 42.252, Education
Code, is amended to read as follows:
Sec. 42.252. LOCAL SHARE OF PROGRAM COST [(TIER ONE)].
SECTION 1.09. Section 42.252, Education Code, is amended by
amending Subsections (a) and (d) and adding Subsection (e) to read
as follows:
(a) Each school district's share of the Foundation School
Program is determined by the following formula:
LS [LFA] = TR X DPV
where:
"LS" ["LFA"] is the school district's local share;
"TR" is a tax rate which for each hundred dollars of valuation
is an effective tax rate of $1.45 or the rate specified by
Subsection (e) [$0.86]; and
"DPV" is the taxable value of property in the school district
for the preceding tax year determined under Subchapter M, Chapter
403, Government Code.
(d) A school district must raise its total local share of
the Foundation School Program [to be eligible to receive foundation
school fund payments]. Any portion of a district's total local
share that exceeds 50 percent of the total amount of the exemplary
program allotments to which the district is entitled is considered
state revenue and shall be remitted to the comptroller for
equalization purposes in accordance with rules adopted by the
commissioner.
(e) Notwithstanding the tax rate specified by Subsection
(a), a school district's local share for the 2005-2006 school year
is computed using a tax rate that results in an effective tax rate
of $1.435. In each subsequent school year, a district's local share
is computed using a tax rate that results in an effective tax rate
that is $0.015 less than the effective tax rate required under this
section for the preceding school year. Beginning with the
2014-2015 school year, a district's local share is computed using a
tax rate that results in an effective tax rate of $1.30.
SECTION 1.10. Sections 42.253(a), (c), and (h), Education
Code, are amended to read as follows:
(a) For each school year the commissioner shall determine:
(1) the amount of money to which a school district is
entitled under Subchapters B and C;
(2) the amount of money to which a school district is
entitled or awarded under Subchapter F;
(3) the amount of money allocated to the district from
the available school fund; and
(4) the amount of each district's [tier one] local
share under Section 42.252[; and
[(5) the amount of each district's tier two local share
under Section 42.302].
(c) Each school district is entitled to an amount necessary
to ensure that the district has state and local revenue sufficient
to pay the costs of an exemplary education for each student in
weighted average daily attendance [equal to the difference for that
district between the sum of Subsections (a)(1) and (a)(2) and the
sum of Subsections (a)(3), (a)(4), and (a)(5)]. Each school
district is also entitled to an amount equal to 50 percent of the
revenues raised by the district through an enrichment tax imposed
by the district under Subchapter F.
(h) If the amount appropriated for purposes of the
Foundation School Program is less than the amount to which school
districts are entitled for the second year of a state fiscal
biennium, the commissioner shall certify the amount of the
difference to the Legislative Budget Board not later than January 1
of the second year of the state fiscal biennium. The Legislative
Budget Board shall propose to the legislature that the certified
amount be transferred to the foundation school fund from the
economic stabilization fund and appropriated for the purpose of
increases in allocations under this subsection. If the legislature
fails during the regular session to enact the transfer and
appropriation proposed under this subsection [Subsection (f) and
there are not funds available under Subsection (j)], the
commissioner shall reduce the total amount of state funds allocated
to each district proportionately [by an amount determined by a
method under which the application of the same number of cents of
increase in tax rate in all districts applied to the taxable value
of property of each district, as determined under Subchapter M,
Chapter 403, Government Code, results in a total levy equal to the
total reduction]. The following fiscal year, a district's
entitlement under this section is increased by an amount equal to
the reduction made under this subsection.
SECTION 1.11. Sections 42.2531(a), (b), and (c), Education
Code, are amended to read as follows:
(a) The commissioner 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 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 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 determination of the taxable value of property that was the
basis of the original adjustment, or in the second school year
following the year in which the adjustment is made, whichever is
earlier.
SECTION 1.12. The heading to Subchapter F, Chapter 42,
Education Code, is amended to read as follows:
SUBCHAPTER F. ENRICHMENT [GUARANTEED YIELD] PROGRAM
SECTION 1.13. Section 42.301, Education Code, is amended to
read as follows:
Sec. 42.301. PURPOSE. The purpose of the enrichment
[guaranteed yield] component of the Foundation School Program is to
provide each school district with the opportunity to [provide the
basic program and to] supplement the exemplary [that] program at a
level of its own choice. [An allotment under this subchapter may be
used for any legal purpose other than capital outlay or debt
service.]
SECTION 1.14. The heading to Section 42.302, Education
Code, is amended to read as follows:
Sec. 42.302. ENRICHMENT TAX [ALLOTMENT].
SECTION 1.15. Sections 42.302(a) and (b), Education Code,
are amended to read as follows:
(a) In addition to the [Each school district is guaranteed a
specified amount per weighted student in state and local funds for
each cent of] tax effort [over that] required for a school [the]
district's local share under Section 42.252, each school district
may impose an additional ad valorem tax [fund assignment] up to the
maximum level specified in this subchapter. [The amount of state
support, subject only to the maximum amount under Section 42.303,
is determined by the formula:
[GYA = (GL X WADA X DTR X 100) - LR
[where:
["GYA" is the guaranteed yield amount of state funds to be
allocated to the district;
["GL" is the dollar amount guaranteed level of state and
local funds per weighted student per cent of tax effort, which is
$27.14 or a greater amount for any year provided by appropriation;
["WADA" is the number of students in weighted average daily
attendance, which is calculated by dividing the sum of the school
district's allotments under Subchapters B and C, less any allotment
to the district for transportation, any allotment under Section
42.158, and 50 percent of the adjustment under Section 42.102, by
the basic allotment for the applicable year;
["DTR" is the district enrichment tax rate of the school
district, which is determined by subtracting the amounts specified
by Subsection (b) from the total amount of maintenance and
operations taxes collected by the school district for the
applicable school year and dividing the difference by the quotient
of the district's taxable value of property as determined under
Subchapter M, Chapter 403, Government Code, or, if applicable,
under Section 42.2521, divided by 100; and
["LR" is the local revenue, which is determined by
multiplying "DTR" by the quotient of the district's taxable value
of property as determined under Subchapter M, Chapter 403,
Government Code, or, if applicable, under Section 42.2521, divided
by 100.]
(b) Fifty percent of any amount collected by a school
district through an enrichment tax imposed under this subchapter is
considered state revenue and must be remitted to the comptroller
for equalization purposes in accordance with rules adopted by the
commissioner. [In computing the district enrichment tax rate of a
school district, the total amount of maintenance and operations
taxes collected by the school district does not include the amount
of:
[(1) the district's local fund assignment under
Section 42.252; or
[(2) taxes paid into a tax increment fund under
Chapter 311, Tax Code.]
SECTION 1.16. Section 42.303, Education Code, is amended to
read as follows:
Sec. 42.303. LIMITATION ON ENRICHMENT TAX RATE. (a) The
district enrichment tax rate [("DTR")] under Section 42.302 may not
exceed $0.05 [$0.64] per $100 of valuation, or the [a greater]
amount specified by Subsection (b) [for any year provided by
appropriation].
(b) Notwithstanding Subsection (a), the district enrichment
tax rate for the 2005-2006 school year may not exceed $0.065 per
$100 of valuation. In each subsequent school year, the district
enrichment tax rate may not exceed an amount that is $0.015 more
than the enrichment tax rate imposed by the district for the
preceding school year, provided that the rate may never exceed
$0.20 per $100 of valuation.
SECTION 1.17. Section 42.304, Education Code, is amended to
read as follows:
Sec. 42.304. STATE ENRICHMENT GRANTS [COMPUTATION OF AID
FOR DISTRICT ON MILITARY RESERVATION OR AT STATE SCHOOL]. (a) The
commissioner shall use state revenue made available through the
enrichment tax authorized by this subchapter to award grants to
school districts to enrich local educational programs [State
assistance under this subchapter for a school district located on a
federal military installation or at Moody State School is computed
using the average tax rate and property value per student of school
districts in the county, as determined by the commissioner].
(b) In awarding grants, the commissioner shall rank school
districts by wealth per student and award grants beginning with the
district with the lowest wealth per student. The commissioner
shall determine the amount of each grant awarded to a school
district, based on district need and the amount of revenue
available to the state. The commissioner is not required to award
grants of equal amounts or to award a grant of any amount to each
school district.
(c) In this section, "wealth per student" means a school
district's taxable value of property as determined under Subchapter
M, Chapter 403, Government Code, or, if applicable, Section
42.2521, divided by the district's weighted average daily
attendance as determined under Section 42.0051.
SECTION 1.18. Sections 45.003(a) and (d), Education Code,
are amended to read as follows:
(a) Bonds described by Section 45.001 may not be issued and
taxes described by Section 45.001 or 45.002, other than a tax
required for a school district's local share under Section 42.252,
may not be levied unless authorized by a majority of the qualified
voters of the district, voting at an election held for that purpose,
at the expense of the district, in accordance with the Election
Code, except as provided by this section. Each election must be
called by resolution or order of the governing board or
commissioners court. The resolution or order must state the date of
the election, the proposition or propositions to be submitted and
voted on, the polling place or places, and any other matters
considered necessary or advisable by the governing board or
commissioners court.
(d) A proposition submitted to authorize the levy of
maintenance taxes must include the question of whether the
governing board or commissioners court may levy, assess, and
collect annual ad valorem taxes for the further maintenance of
public schools[,] at a rate not to exceed the rate[, which may be
not more than $1.50 on the $100 valuation of taxable property in the
district,] stated in the proposition, which may not exceed the sum
of the rate required by Section 42.252 and the maximum rate
authorized by Section 42.303.
ARTICLE 2. CONFORMING AMENDMENTS
SECTION 2.01. Section 12.013(b), Education Code, is amended
to read as follows:
(b) A home-rule school district is subject to:
(1) a provision of this title establishing a criminal
offense;
(2) a provision of this title relating to limitations
on liability; and
(3) a prohibition, restriction, or requirement, as
applicable, imposed by this title or a rule adopted under this
title, relating to:
(A) the Public Education Information Management
System (PEIMS) to the extent necessary to monitor compliance with
this subchapter as determined by the commissioner;
(B) educator certification under Chapter 21 and
educator rights under Sections 21.407, 21.408, and 22.001;
(C) criminal history records under Subchapter C,
Chapter 22;
(D) student admissions under Section 25.001;
(E) school attendance under Sections 25.085,
25.086, and 25.087;
(F) inter-district or inter-county transfers of
students under Subchapter B, Chapter 25;
(G) elementary class size limits under Section
25.112, in the case of any campus in the district that is considered
low-performing under Section 39.131(b);
(H) high school graduation under Section 28.025;
(I) special education programs under Subchapter
A, Chapter 29;
(J) bilingual education under Subchapter B,
Chapter 29;
(K) prekindergarten programs under Subchapter E,
Chapter 29;
(L) safety provisions relating to the
transportation of students under Sections 34.002, 34.003, 34.004,
and 34.008;
(M) computation and distribution of state aid
under Chapters 31, 42, and 43;
(N) extracurricular activities under Section
33.081;
(O) health and safety under Chapter 38;
(P) public school accountability under
Subchapters B, C, D, and G, Chapter 39;
(Q) [equalized wealth under Chapter 41;
[(R)] a bond or other obligation or tax rate
under Chapters 42, 43, and 45; and
(R) [(S)] purchasing under Chapter 44.
SECTION 2.02. Section 12.029(b), Education Code, is amended
to read as follows:
(b) If [Except as provided by Subchapter H, Chapter 41, if]
two or more school districts having different status, one of which
is home-rule school district status, consolidate into a single
district, the petition under Section 13.003 initiating the
consolidation must state the status for the consolidated district.
The ballot shall be printed to permit voting for or against the
proposition: "Consolidation of (names of school districts) into a
single school district governed as (status of school district
specified in the petition)."
SECTION 2.03. Section 12.106(a), Education Code, is amended
to read as follows:
(a) A charter holder is entitled to receive for the
open-enrollment charter school funding under Chapter 42 in an
equitable manner determined by the commissioner as if the school
were a school district [without a tier one local share for purposes
of Section 42.253 and without any local revenue ("LR") for purposes
of Section 42.302. In determining funding for an open-enrollment
charter school, adjustments under Sections 42.102, 42.103, 42.104,
and 42.105 and the district enrichment tax rate ("DTR") under
Section 42.302 are based on the average adjustment and average
district enrichment tax rate for the state].
SECTION 2.04. Sections 21.402(a) and (c), Education Code,
are amended to read as follows:
(a) Except as provided by Subsection (d), (e), or (f), a
school district must pay each classroom teacher, full-time
librarian, full-time counselor certified under Subchapter B, or
full-time school nurse not less than the minimum monthly salary,
based on the employee's level of experience, adjusted biannually by
the Commissioner for cost of living adjustments, prescribed
[determined] by Subsection (c) [the following formula:
[MS = SF X FS
[where:
["MS" is the minimum monthly salary;
["SF" is the applicable salary factor specified by Subsection
(c); and
["FS" is the amount, as determined by the commissioner under
Subsection (b), of state and local funds per weighted student
available to a district eligible to receive state assistance under
Section 42.302 with an enrichment tax rate, as defined by Section
42.302, equal to the maximum rate authorized under Section 42.303,
except that the amount of state and local funds per weighted student
does not include the amount attributable to the increase in the
guaranteed level made by H.B. No. 3343, Acts of the 77th
Legislature, Regular Session, 2001].
(c) The minimum monthly salary under this section is
[factors per step are] as follows:
Years Experience 0 1 2
Monthly Salary [Factor] $2,424 [.5656] $2,481 [.5790] $2,539 [.5924]
Years Experience 3 4 5
Monthly Salary [Factor] $2,596 [.6058] $2,717 [.6340] $2,838 [.6623]
Years Experience 6 7 8
Monthly Salary [Factor] $2,959 [.6906] $3,072 [.7168] $3,178 [.7416]
Years Experience 9 10 11
Monthly Salary [Factor] $3,279 [.7651] $3,373 [.7872] $3,464 [.8082]
Years Experience 12 13 14
Monthly Salary [Factor] $3,549 [.8281] $3,628 [.8467] $3,705 [.8645]
Years Experience 15 16 17
Monthly Salary [Factor] $3,776 [.8811] $3,844 [.8970] $3,908 [.9119]
Years Experience 18 19 20 and over
Monthly Salary [Factor] $3,968 [.9260] $4,026 [.9394] $4,080 [.9520]
SECTION 2.05. Section 21.410(h), Education Code, is amended
to read as follows:
(h) A grant a school district receives under this section is
in addition to any funding the district receives under Chapter 42.
The commissioner shall distribute funds under this section with the
Foundation School Program payment to which the district is entitled
as soon as practicable after the end of the school year as
determined by the commissioner. [A district to which Chapter 41
applies is entitled to the grants paid under this section.] The
commissioner shall determine the timing of the distribution of
grants to a district that does not receive Foundation School
Program payments.
SECTION 2.06. Section 21.411(h), Education Code, as added
by Section 5, Chapter 834, Acts of the 77th Legislature, Regular
Session, 2001, is amended to read as follows:
(h) A grant a school district receives under this section is
in addition to any funding the district receives under Chapter 42.
The commissioner shall distribute funds under this section with the
Foundation School Program payment to which the district is entitled
as soon as practicable after the end of the school year as
determined by the commissioner. [A district to which Chapter 41
applies is entitled to the grants paid under this section.] The
commissioner shall determine the timing of the distribution of
grants to a district that does not receive Foundation School
Program payments.
SECTION 2.07. Section 21.411(h), Education Code, as added
by Section 1, Chapter 1301, Acts of the 77th Legislature, Regular
Session, 2001, is amended to read as follows:
(h) A grant a school district receives under this section is
in addition to any funding the district receives under Chapter 42.
The commissioner shall distribute funds under this section with the
Foundation School Program payment to which the district is entitled
as soon as practicable after the end of the school year as
determined by the commissioner. [A district to which Chapter 41
applies is entitled to the grants paid under this section.] The
commissioner shall determine the timing of the distribution of
grants to a district that does not receive Foundation School
Program payments.
SECTION 2.08. Section 29.008(b), Education Code, is amended
to read as follows:
(b) Except as provided by Subsection (c), costs of an
approved contract for residential placement may be paid from a
combination of federal, state, and local funds. [The local share of
the total contract cost for each student is that portion of the
local tax effort that exceeds the district's local fund assignment
under Section 42.252, divided by the average daily attendance in
the district. If the contract involves a private facility, the
state share of the total contract cost is that amount remaining
after subtracting the local share. If the contract involves a
public facility, the state share is that amount remaining after
subtracting the local share from the portion of the contract that
involves the costs of instructional and related services. For
purposes of this subsection, "local tax effort" means the total
amount of money generated by taxes imposed for debt service and
maintenance and operation less any amounts paid into a tax
increment fund under Chapter 311, Tax Code.]
SECTION 2.09. Section 29.087(j), Education Code, is amended
to read as follows:
(j) For purposes of funding under Chapter [Chapters 41,]
42[, and 46], a student attending a program authorized by this
section may be counted in attendance only for the actual number of
hours each school day the student attends the program, in
accordance with Sections 25.081 and 25.082.
SECTION 2.10. Section 37.0061, Education Code, is amended
to read as follows:
Sec. 37.0061. FUNDING FOR ALTERNATIVE EDUCATION SERVICES IN
JUVENILE RESIDENTIAL FACILITIES. A school district that provides
education services to pre-adjudicated and post-adjudicated
students who are confined by court order in a juvenile residential
facility operated by a juvenile board is entitled to count such
students in the district's average daily attendance for purposes of
receipt of state funds under the Foundation School Program. [If the
district has a wealth per student greater than the guaranteed
wealth level but less than the equalized wealth level, the district
in which the student is enrolled on the date a court orders the
student to be confined to a juvenile residential facility shall
transfer to the district providing education services an amount
equal to the difference between the average Foundation School
Program costs per student of the district providing education
services and the sum of the state aid and the money from the
available school fund received by the district that is attributable
to the student for the portion of the school year for which the
district provides education services to the student.]
SECTION 2.11. Section 2175.304(c), Government Code, is
amended to read as follows:
(c) The procedures established under Subsection (b) must
give preference to transferring the property directly to a public
school or school district before disposing of the property in
another manner. If more than one public school or school district
seeks to acquire the same property on substantially the same terms,
the system, institution, or agency shall give preference to a
public school that is considered low-performing by the commissioner
of education or to a school district that has a relatively low
[taxable] wealth per student, as determined by the commissioner of
education in accordance with Section 42.304 [that entitles the
district to an allotment of state funds under Subchapter F, Chapter
42], Education Code.
SECTION 2.12. Section 6.02(b), Tax Code, is amended to read
as follows:
(b) A taxing unit that has boundaries extending into two or
more counties may choose to participate in only one of the appraisal
districts. In that event, the boundaries of the district chosen
extend outside the county to the extent of the unit's boundaries.
To be effective, the choice must be approved by resolution of the
board of directors of the district chosen. [The choice of a school
district to participate in a single appraisal district does not
apply to property annexed to the school district under Subchapter C
or G, Chapter 41, Education Code, unless:
[(1) the school district taxes property other than
property annexed to the district under Subchapter C or G, Chapter
41, Education Code, in the same county as the annexed property; or
[(2) the annexed property is contiguous to property in
the school district other than property annexed to the district
under Subchapter C or G, Chapter 41, Education Code.]
SECTION 2.13. Section 21.01, Tax Code, is amended to read as
follows:
Sec. 21.01. REAL PROPERTY. Real property is taxable by a
taxing unit if located in the unit on January 1[, except as provided
by Chapter 41, Education Code].
SECTION 2.14. Section 21.02(a), Tax Code, is amended to
read as follows:
(a) Except as provided by [Subsection (b) and] Sections
21.021, 21.04, and 21.05, tangible personal property is taxable by
a taxing unit if:
(1) it is located in the unit on January 1 for more
than a temporary period;
(2) it normally is located in the unit, even though it
is outside the unit on January 1, if it is outside the unit only
temporarily;
(3) it normally is returned to the unit between uses
elsewhere and is not located in any one place for more than a
temporary period; or
(4) the owner resides (for property not used for
business purposes) or maintains his principal place of business in
this state (for property used for business purposes) in the unit and
the property is taxable in this state but does not have a taxable
situs pursuant to Subdivisions (1) through (3) [of this section].
SECTION 2.15. Section 26.08(i), Tax Code, is amended to
read as follows:
(i) For purposes of this section, the rollback tax rate of a
school district is the sum of:
(1) the tax rate that, applied to the current total
value for the district, would impose taxes in an amount that, when
added to state funds that would be distributed to the district under
Chapter 42, Education Code, for the school year beginning in the
current tax year using that tax rate, would provide the same amount
of state funds distributed under Chapter 42 and maintenance and
operations taxes of the district per student in weighted average
daily attendance for that school year that would have been
available to the district in the preceding year if the funding
elements for Chapter [Chapters 41 and] 42, Education Code, for the
current year had been in effect for the preceding year;
(2) the rate of $0.06 per $100 of taxable value; and
(3) the district's current debt rate.
SECTION 2.16. Section 9(a), Article 3.50-7, Insurance Code,
is amended to read as follows:
(a) The state shall assist employees of participating school
districts and charter schools in the purchase of group health
coverage under this article by providing for each covered employee
the amount of $900 each state fiscal year or a greater amount as
provided by the General Appropriations Act. [The state
contribution shall be distributed through the school finance
formulas under Chapters 41 and 42, Education Code, and used by
school districts and charter schools as provided by Sections
42.2514 and 42.260, Education Code.]
ARTICLE 3. REPEALER AND EFFECTIVE DATE
SECTION 3.01. (a) The following provisions of the
Education Code are repealed:
(1) Chapters 41 and 46;
(2) Sections 42.002(b), 42.103(d) and (e), 42.106,
42.2511, 42.2512, 42.2514, 42.2515, 42.253(e)-(g) and (l), 42.260,
and 42.302(c);
(3) Section 42.302(d), as added by Chapter 320, Acts
of the 77th Legislature, Regular Session, 2001; and
(4) Section 42.302(d), as added by Chapter 1505, Acts
of the 77th Legislature, Regular Session, 2001.
(b) Sections 21.02(b) and (c), Tax Code, are repealed.
SECTION 3.02. Notwithstanding the repeal of Chapter 46,
Education Code, by this Act, the state shall continue to provide
state assistance under Chapter 46, Education Code, as it existed
before repeal by this Act, to each district receiving state
assistance under that chapter during the 2002-2003 school year, as
necessary to comply with the state's obligations under that chapter
as it existed before repeal by this Act, and the former law is
continued in effect for that purpose. The commissioner of
education may adopt rules to implement this section.
SECTION 3.03. This Act takes effect September 1, 2004, but
only if the constitutional amendment proposed by H.J.R. No. ___,
78th Legislature, Regular Session, 2003, is approved by the voters.
If that amendment is not approved by the voters, this Act has no
effect.