78R1249 BDH-D
By: Janek S.B. No. 682
A BILL TO BE ENTITLED
AN ACT
relating to a state allotment to school districts for teacher
salaries.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. TEACHER SALARIES ALLOTMENT
SECTION 1.01. Chapter 42, Education Code, is amended by
adding Subchapters B and C to read as follows:
SUBCHAPTER B. ENTITLEMENT FOR TEACHER SALARIES
Sec. 42.101. TEACHER SALARIES ALLOTMENT. (a) A district
is entitled to an allotment for teacher salaries in an amount
determined by multiplying $49,500 by the number of classroom
teachers employed by the district necessary to maintain an average
ratio of not less than one teacher for each 20 students in average
daily attendance as required by Section 25.111. A greater amount
for any school year may be provided by appropriation.
(b) An allotment received by a school district under this
section may be used only for salaries of classroom teachers.
Sec. 42.102. SPECIAL EDUCATION. For the salaries of
special education teachers, a district shall use a percentage of
its allotment under Section 42.101 that is not less than the
percentage of students in average daily attendance in the district
who are eligible to participate in the district's special education
program under Section 29.003.
SUBCHAPTER C. FINANCING THE PROGRAM
Sec. 42.151. FINANCING; GENERAL RULE. (a) The allotment
for teacher salaries constitutes the total cost of the Foundation
School Program, except that the legislature may use available
school funds and any other funds to pay the cost of teacher
benefits, as determined by the legislature.
(b) The program shall be financed by:
(1) state available school funds distributed in
accordance with law; and
(2) state funds appropriated for the purpose of public
school education and allocated to each district in an amount
sufficient to finance the cost of teacher salaries under Subchapter
B and any teacher benefits provided by the state.
Sec. 42.152. DISTRIBUTION OF FOUNDATION SCHOOL FUND. (a)
The legislature shall determine biennially:
(1) the amount of money necessary for teacher salaries
under Subchapter B and any teacher benefits provided by the state;
and
(2) the amount of money allocated to each school
district from the available school fund.
(b) Each school district is entitled, from the
appropriation for the foundation school fund and any other funds,
to the amount necessary to fund the district's teacher salaries
allotment under Subchapter B and any teacher benefits provided by
the state.
(c) The commissioner shall approve warrants to each school
district equaling the amount of its entitlement. Warrants for all
money expended according to this chapter shall be approved and
transmitted to treasurers or depositories of school districts in
the same manner that warrants for available school fund payments
are transmitted.
(d) If for any year the total cost of the Foundation School
Program, as determined under this chapter, exceeds the total amount
appropriated for that year, the commissioner shall proportionally
reduce the amount of the allotment prescribed by Section 42.101(a).
Sec. 42.153. RECOVERY OF OVERALLOCATED FUNDS. (a) If a
school district has received an overallocation of state funds, the
agency shall, by withholding from subsequent allocations of state
funds or by requesting and obtaining a refund, recover from the
district an amount equal to the overallocation.
(b) If a district fails to comply with a request for a refund
under Subsection (a), the agency shall certify to the comptroller
that the amount constitutes a debt for purposes of Section 403.055,
Government Code. The agency shall provide to the comptroller the
amount of the overallocation and any other information required by
the comptroller. The comptroller may certify the amount of the debt
to the attorney general for collection.
(c) Any amounts recovered under this section shall be
deposited in the foundation school fund.
Sec. 42.154. FALSIFICATION OF RECORDS; REPORT. When, in
the opinion of the agency's director of school audits, audits or
reviews of accounting, teacher employment, or other records of a
school district reveal deliberate falsification of the records, or
violation of the provisions of this chapter, through which the
district's share of state funds allocated under the authority of
this chapter would be, or has been, illegally increased, the
director shall promptly and fully report the fact to the State Board
of Education, the state auditor, and the appropriate county
attorney, district attorney, or criminal district attorney.
SECTION 1.02. Section 21.402, Education Code, is amended by
adding Subsection (g-1) to read as follows:
(g-1) A school district may supplement a teacher's base
salary for standard of living conditions, additional workload, and
workplace conditions.
ARTICLE 2. CONFORMING AMENDMENTS TO EDUCATION CODE
SECTION 2.01. Section 7.055(c), Education Code, is amended
to read as follows:
(c) The budget the commissioner adopts under Subsection (b)
for operating the Foundation School Program must be in accordance
with legislative appropriations and provide funds for [the
administration and operation of the agency and] any [other]
necessary expense. The budget may not include any expense [must
designate any expense] of operating the agency or operating a
program for which the board has responsibility [that is paid from
the Foundation School Program]. The budget must designate program
expenses that may be paid out of [the foundation school fund, other]
state funds, fees, federal funds, or funds earned under interagency
contract. Before adopting the budget, the commissioner must submit
the budget to the board for review and, after receiving any comments
of the board, present the operating budget to the governor and the
Legislative Budget Board. The commissioner shall provide
appropriate information on proposed budget expenditures to the
comptroller to assure that all payments are paid from the
appropriate funds in a timely and efficient manner.
SECTION 2.02. Sections 8.051(a) and (d), Education Code,
are amended to read as follows:
(a) Each regional education service center shall use funds
distributed to the center [under Section 8.121] to develop,
maintain, and deliver services identified under this section to
improve student and school district performance.
(d) Each regional education service center shall maintain
core services for purchase by school districts and campuses. The
core services are:
(1) training and assistance in teaching each subject
area assessed under Section 39.023;
(2) [training and assistance in providing each program
that qualifies for a funding allotment under Section 42.151,
42.152, 42.153, or 42.156;
[(3)] assistance specifically designed for a school
district rated academically unacceptable under Section 39.072(a)
or a campus whose performance is considered unacceptable based on
the indicators adopted under Section 39.051;
(3) [(4)] training and assistance to teachers,
administrators, members of district boards of trustees, and members
of site-based decision-making committees;
(4) [(5)] assistance specifically designed for a
school district that is considered out of compliance with state or
federal special education requirements, based on the agency's most
recent compliance review of the district's special education
programs; and
(5) [(6)] assistance in complying with state laws and
rules.
SECTION 2.03. Section 8.053, Education Code, is amended to
read as follows:
Sec. 8.053. ADDITIONAL SERVICES. In addition to the
services provided under Section 8.051 [and the initiatives
implemented under Section 8.052], a regional education service
center may:
(1) offer any service requested and purchased by any
school district or campus in the state; and
(2) contract with a public or private entity for
services under this subchapter, including the provision of
continuing education courses and programs for educators.
SECTION 2.04. Section 11.158(a), Education Code, is
amended to read as follows:
(a) The board of trustees of an independent school district
may require payment of:
(1) a fee for materials used in any program in which
the resultant product in excess of minimum requirements becomes, at
the student's option, the personal property of the student, if the
fee does not exceed the cost of materials;
(2) membership dues in student organizations or clubs
and admission fees or charges for attending extracurricular
activities, if membership or attendance is voluntary;
(3) a security deposit for the return of materials,
supplies, or equipment;
(4) a fee for personal physical education and athletic
equipment and apparel, although any student may provide the
student's own equipment or apparel if it meets reasonable
requirements and standards relating to health and safety
established by the board;
(5) a fee for items of personal use or products that a
student may purchase at the student's option, such as student
publications, class rings, annuals, and graduation announcements;
(6) a fee specifically permitted by any other statute;
(7) a fee for an authorized voluntary student health
and accident benefit plan;
(8) a reasonable fee, not to exceed the actual annual
maintenance cost, for the use of musical instruments and uniforms
owned or rented by the district;
(9) a fee for items of personal apparel that become the
property of the student and that are used in extracurricular
activities;
(10) a parking fee or a fee for an identification card;
(11) a fee for a driver training course, not to exceed
the actual district cost per student in the program for the current
school year;
(12) a fee for a course offered for credit that
requires the use of facilities not available on the school premises
or the employment of an educator who is not part of the school's
regular staff, if participation in the course is at the student's
option;
(13) a fee for a course offered during summer school,
except that the board may charge a fee for a course required for
graduation only if the course is also offered without a fee during
the regular school year;
(14) a reasonable fee for transportation of a student
who lives within two miles of the school the student attends to and
from that school [, except that the board may not charge a fee for
transportation for which the school district receives funds under
Section 42.155(d)]; or
(15) a reasonable fee, not to exceed $50, for costs
associated with an educational program offered outside of regular
school hours through which a student who was absent from class
receives instruction voluntarily for the purpose of making up the
missed instruction and meeting the level of attendance required
under Section 25.092.
SECTION 2.05. 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 2.06. 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 2.07. 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 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 2.08. Section 13.051(c), Education Code, is amended
to read as follows:
(c) Territory that does not have residents may be detached
from a school district and annexed to another school district if:
(1) the total taxable value of the property in the
territory according to the most recent certified appraisal roll for
each school district is not greater than:
(A) five percent of the district's taxable value
of all property in that district [as determined under Subchapter M,
Chapter 403, Government Code]; and
(B) $5,000 property value per student in average
daily attendance as determined under Section 42.005; and
(2) the school district from which the property will
be detached does not own any real property located in the territory.
SECTION 2.09. Section 13.231(b), Education Code, is amended
to read as follows:
(b) In this section, "taxable value" means the market value
of all taxable property less:
(1) the total dollar amount of any residence homestead
exemptions lawfully granted under Section 11.13(b) or (c), Tax
Code, in the year that is the subject of the study for each school
district;
(2) one-half of the total dollar amount of any
residence homestead exemptions granted under Section 11.13(n), Tax
Code, in the year that is the subject of the study for each school
district;
(3) the total dollar amount of any exemptions granted
before May 31, 1993, within a reinvestment zone under agreements
authorized by Chapter 312, Tax Code;
(4) the total dollar amount of any captured appraised
value of property that:
(A) is within a reinvestment zone created on or
before May 31, 1999, or is proposed to be included within the
boundaries of a reinvestment zone as the boundaries of the zone and
the proposed portion of tax increment paid into the tax increment
fund by a school district are described in a written notification
provided by the municipality or the board of directors of the zone
to the governing bodies of the other taxing units in the manner
provided by Section 311.003(e), Tax Code, before May 31, 1999, and
within the boundaries of the zone as those boundaries existed on
September 1, 1999, including subsequent improvements to the
property regardless of when made;
(B) generates taxes paid into a tax increment
fund created under Chapter 311, Tax Code, under a reinvestment zone
financing plan approved under Section 311.011(d), Tax Code, on or
before September 1, 1999; and
(C) is eligible for tax increment financing under
Chapter 311, Tax Code;
(5) the total dollar amount of any exemptions granted
under Section 11.251, Tax Code;
(6) the difference between the comptroller's estimate
of the market value and the productivity value of land that
qualifies for appraisal on the basis of its productive capacity,
except that the productivity value estimated by the comptroller may
not exceed the fair market value of the land;
(7) the portion of the appraised value of residence
homesteads of the elderly on which school district taxes are not
imposed in the year that is the subject of the study, calculated as
if the residence homesteads were appraised at the full value
required by law;
(8) a portion of the market value of property not
otherwise fully taxable by the district at market value because of:
(A) action required by statute or the
constitution of this state that, if the tax rate adopted by the
district is applied to it, produces an amount equal to the
difference between the tax that the district would have imposed on
the property if the property were fully taxable at market value and
the tax that the district is actually authorized to impose on the
property, if this subsection does not otherwise require that
portion to be deducted; or
(B) action taken by the district under Subchapter
B or C, Chapter 313, Tax Code;
(9) the market value of all tangible personal
property, other than manufactured homes, owned by a family or
individual and not held or used for the production of income;
(10) the appraised value of property the collection of
delinquent taxes on which is deferred under Section 33.06, Tax
Code;
(11) the portion of the appraised value of property
the collection of delinquent taxes on which is deferred under
Section 33.065, Tax Code; and
(12) the amount by which the market value of a
residence homestead to which Section 23.23, Tax Code, applies
exceeds the appraised value of that property as calculated under
that section [has the meaning assigned by Section 403.302,
Government Code].
SECTION 2.10. Sections 13.282(a) and (b), Education Code,
are amended to read as follows:
(a) The amount of incentive aid payments may not exceed the
difference between:
(1) the sum of the entitlements computed under Section
42.152 [42.253] that would have been paid to the districts included
in the reorganized district if the districts had not been
consolidated; and
(2) the amount to which the reorganized district is
entitled under Section 42.152 [42.253].
(b) If the reorganized district is not eligible for an
entitlement under Section 42.152 [42.253], the amount of the
incentive aid payments may not exceed the sum of the entitlements
computed under Section 42.152 [42.253] for which the districts
included in the reorganized district were eligible in the school
year when they were consolidated.
SECTION 2.11. Section 19.005(a), Education Code, is amended
to read as follows:
(a) Any person confined or imprisoned in the department who
is not a high school graduate is eligible for programs or services
under this chapter [paid for with money from the foundation school
fund]. To the extent space is available, the district may also
offer programs or services under this chapter [paid for with money
from the foundation school fund] to persons confined or imprisoned
in the department who are high school graduates.
SECTION 2.12. Section 19.007(c), Education Code, is amended
to read as follows:
(c) The [In addition to money from the foundation school
fund, the] district may receive appropriated money from the
department for educational programs.
SECTION 2.13. Section 19.008(a), Education Code, is amended
to read as follows:
(a) The legislature [commissioner] shall allocate funds to
the district [from the foundation school fund] based on an amount,
established in the General Appropriations Act, for each contact
hour between a teacher and a person eligible under Section 19.005,
including associated administrative costs, for the best 180 of 210
school days in each year of the state fiscal biennium. Those funds
may be spent only for district administrative costs related to
education and for district educational programs and services and
only with the approval of the board.
SECTION 2.14. 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, 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 2.15. 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 2.16. 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 2.17. 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 2.18. Section 29.002, Education Code, is amended to
read as follows:
Sec. 29.002. DEFINITION. In this subchapter, "special
services" means:
(1) special education instruction, which may be
provided by professional and supported by paraprofessional
personnel in the regular classroom or another [in an] instructional
arrangement [described by Section 42.151]; and
(2) related services, which are developmental,
corrective, supportive, or evaluative services, not instructional
in nature, that may be required for the student to benefit from
special education instruction and for implementation of a student's
individualized education program.
SECTION 2.19. 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 2.20. Section 29.060(f), Education Code, is amended
to read as follows:
(f) The legislature may appropriate money other than money
from the foundation school fund for support of a program under
Subsection (a).
SECTION 2.21. Section 29.082(a), Education Code, is amended
to read as follows:
(a) A school district may [set aside an amount from the
district's allotment under Section 42.152 or may] apply to the
agency for funding of an extended year program for a period not to
exceed 30 instructional days for students in kindergarten through
grade 8 who are identified as likely not to be promoted to the next
grade level for the succeeding school year.
SECTION 2.22. Section 29.087(j), Education Code, is amended
to read as follows:
(j) For purposes of funding under 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 2.23. Sections 29.257(a) and (b), Education Code,
are amended to read as follows:
(a) The legislature may appropriate money [from the
foundation school fund] to the agency for developing and
implementing community education projects. The agency shall
actively seek gifts, grants, or other donations for purposes
related to community education development projects, unless the
acceptance is prohibited by other law. Money received under this
subsection shall be deposited in the account established under
Subsection (b) and may be appropriated only for the purpose for
which the money was given.
(b) The community education development account is created
as a dedicated account in the general revenue [foundation school]
fund in the state treasury. The account shall consist of community
education related gifts, grants, and donations and shall be
administered by the agency.
SECTION 2.24. Section 30.002(g), Education Code, is amended
to read as follows:
(g) To facilitate implementation of this section, the
commissioner shall develop a system designed to distribute [from
the foundation school fund] to school districts or regional
education service centers a special supplemental allowance for each
student with a visual impairment and for each student with a serious
visual disability and another medically diagnosed disability of a
significantly limiting nature who is receiving special education
services through any approved program. The supplemental allowance
may be spent only for special services uniquely required by the
nature of the student's disabilities and may not be used in lieu of
educational funds otherwise available under this code or through
state or local appropriations.
SECTION 2.25. Sections 30.087(a) and (b), Education Code,
are amended to read as follows:
(a) The cost of educating students who are deaf or hard of
hearing shall be borne by the state [and paid from the foundation
school fund], but independent school districts and institutions of
higher education in the state may and are encouraged to make
available property or services in cooperation with the regional day
school programs for the deaf for any activities related to the
education of students who are deaf or hard of hearing, including
research, personnel training, and staff development.
(b) From the amount appropriated for regional day school
programs, the commissioner shall allocate funds to each program
based on the number of [weighted] full-time equivalent students
served. The commissioner may consider local resources available in
allocating funds under this subsection.
SECTION 2.26. Section 31.003, Education Code, is amended to
read as follows:
Sec. 31.003. STATE BOARD OF EDUCATION RULES. The State
Board of Education may adopt rules, consistent with this chapter,
for the adoption [, requisition, distribution, care, use, and
disposal] of textbooks.
SECTION 2.27. Subchapter A, Chapter 31, Education Code, is
amended by adding Section 31.004 to read as follows:
Sec. 31.004. SCHOOL DISTRICT RULES. Each school district
shall adopt rules, consistent with this chapter, for the purchase,
distribution, handling, and disposition of textbooks in the
district, including rules related to electronic textbooks and
bilingual and special education textbooks.
SECTION 2.28. The heading to Subchapter B, Chapter 31,
Education Code, is amended to read as follows:
SUBCHAPTER B. STATE [FUNDING,] ADOPTION [, AND PURCHASE]
SECTION 2.29. Section 31.022(d), Education Code, is amended
to read as follows:
(d) At least 24 months before the beginning of the school
year for which textbooks for a particular subject and grade level
will be reviewed and adopted [purchased under the review and
adoption cycle adopted] by the board, the board shall publish
notice of the review and adoption cycle for those textbooks.
SECTION 2.30. Section 31.024(b), Education Code, is amended
to read as follows:
(b) Not later than December 1 of the year preceding the
school year for which the textbooks for a particular subject and
grade level will be purchased [under the cycle adopted by the board
under Section 31.022], the board shall provide the lists of adopted
textbooks to each school district. Each nonconforming list must
include the reasons an adopted textbook is not eligible for the
conforming list.
SECTION 2.31. The heading to Section 31.101, Education
Code, is amended to read as follows:
Sec. 31.101. SELECTION [AND PURCHASE] OF TEXTBOOKS BY
SCHOOL DISTRICTS.
SECTION 2.32. Section 31.152(b), Education Code, is amended
to read as follows:
(b) A school trustee, administrator, or teacher commits an
offense if the person accepts a gift, favor, or service that:
(1) is given to the person or the person's school;
(2) might reasonably tend to influence a trustee,
administrator, or teacher in the selection of a textbook; and
(3) could not be lawfully purchased by a school
district under this chapter [with funds from the state textbook
fund].
SECTION 2.33. 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 2.34. Section 39.024(c), Education Code, is amended
to read as follows:
(c) The agency shall develop study guides for the assessment
instruments administered under Sections 39.023(a) and (c). To
assist parents in providing assistance during the period that
school is recessed for summer, each school district shall
distribute the study guides to parents of students who do not
perform satisfactorily on one or more parts of an assessment
instrument administered under this subchapter. [The commissioner
shall retain a portion of the total amount of funds allotted under
Section 42.152(a) that the commissioner considers appropriate to
finance the development and distribution of the study guides and
shall reduce each district's allotment proportionately.]
SECTION 2.35. Section 39.031(a), Education Code, is amended
to read as follows:
(a) The cost of preparing, administering, or grading the
assessment instruments shall be paid by [from the funds allotted
under Section 42.152, and] each district [shall bear the cost in the
same manner described for a reduction in allotments under Section
42.253]. [If a district does not receive an allotment under Section
42.152, the commissioner shall subtract the cost from the
district's other foundation school fund allotments.]
SECTION 2.36. Section 39.131(d), Education Code, is amended
to read as follows:
(d) The costs of providing a monitor, master, management
team, or special campus intervention team shall be paid by the
district. If the district fails or refuses to pay the costs in a
timely manner, the commissioner may:
(1) pay the costs using amounts withheld from any
funds to which the district is otherwise entitled; or
(2) recover the amount of the costs in the manner
provided for recovery of an overallocation of state funds under
Section 42.153 [42.258].
SECTION 2.37. 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 district
[commissioner] shall remit [deduct from a school district's 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 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 2.38. Section 43.002, Education Code, is amended to
read as follows:
Sec. 43.002. TRANSFERS FROM GENERAL REVENUE FUND TO
AVAILABLE FUND. Of the amounts available for transfer from the
general revenue fund to the available school fund for the months of
January and February of each fiscal year, no more than the amount
necessary to enable the comptroller to distribute from the
available school fund an amount equal to 9-1/2 percent of the
estimated annual available school fund apportionment to [category
1] school districts having a wealth per student of less than
one-half the statewide average wealth per student [, as defined by
Section 42.259,] and 3-1/2 percent of the estimated annual
available school fund apportionment to [category 2] school
districts having a wealth per student of at least one-half the
statewide average wealth per student but not more than the
statewide average wealth per student [, as defined by Section
42.259,] may be transferred from the general revenue fund to the
available school fund. Any remaining amount that would otherwise
be available for transfer for the months of January and February
shall be transferred from the general revenue fund to the available
school fund in equal amounts in June and in August of the same
fiscal year.
SECTION 2.39. Sections 45.0031(b) and (c), Education Code,
are amended to read as follows:
(b) A district may demonstrate the ability to comply with
Subsection (a) by using the most recent taxable value of property in
the district, combined with state assistance to which the district
is entitled under Chapter [42 or] 46 that may be lawfully used for
the payment of bonds.
(c) A district may demonstrate the ability to comply with
Subsection (a) by using a projected future taxable value of
property in the district anticipated for the earlier of the tax year
five years after the current tax year or the tax year in which the
final payment is due for the bonds submitted to the attorney
general, combined with state assistance to which the district is
entitled under Chapter [42 or] 46 that may be lawfully used for the
payment of bonds. The district must submit to the attorney general
a certification of the district's projected taxable value of
property that is prepared by a registered professional appraiser
certified under Chapter 1151, Occupations Code, [The Property
Taxation Professional Certification Act (Article 8885, Revised
Statutes)] who has demonstrated professional experience in
projecting taxable values of property or who can by contract obtain
any necessary assistance from a person who has that experience. To
demonstrate the professional experience required by this
subsection, a registered professional appraiser must provide to the
district written documentation relating to two previous projects
for which the appraiser projected taxable values of property.
Until the bonds submitted to the attorney general are approved or
disapproved, the district must maintain the documentation and on
request provide the documentation to the attorney general or
comptroller. The certification of the district's projected taxable
value of property must be signed by the district's superintendent.
The attorney general must base a determination of whether the
district has complied with Subsection (a) on a taxable value of
property that is equal to 90 percent of the value certified under
this subsection.
SECTION 2.40. Section 46.003(a), Education Code, is amended
to read as follows:
(a) For each year, except as provided by Sections 46.005 and
46.006, a school district is guaranteed a specified amount per
student in state and local funds for each cent of tax effort, up to
the maximum rate under Subsection (b), to pay the principal of and
interest on eligible bonds issued to construct, acquire, renovate,
or improve an instructional facility. The amount of state support
is determined by the formula:
FYA = (FYL X ADA X BTR X 100) - (BTR X (DPV/100))
where:
"FYA" is the guaranteed facilities yield amount of state
funds allocated to the district for the year;
"FYL" is the dollar amount guaranteed level of state and
local funds per student per cent of tax effort, which is $35 or a
greater amount for any year provided by appropriation;
"ADA" is the greater of the number of students in average
daily attendance, as determined under Section 42.005, in the
district or 400;
"BTR" is the district's bond tax rate for the current year,
which is determined by dividing the amount budgeted by the district
for payment of eligible bonds by the quotient of the district's
taxable value of property [as determined under Subchapter M,
Chapter 403, Government Code, or, if applicable, Section 42.2521,]
divided by 100; and
"DPV" is the district's taxable value of property [as
determined under Subchapter M, Chapter 403, Government Code, or, if
applicable, Section 42.2521].
SECTION 2.41. Section 46.006(g), Education Code, is amended
to read as follows:
(g) 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 average daily
attendance as determined under Section 42.005.
SECTION 2.42. Sections 46.009(b) and (e), Education Code,
are amended to read as follows:
(b) If the amount appropriated for purposes of this
subchapter for a year is less than the total amount determined under
Subsection (a) for that year, the commissioner shall:
(1) transfer from the Foundation School Program to the
instructional facilities program the amount by which the total
amount determined under Subsection (a) exceeds the amount
appropriated; and
(2) reduce each district's foundation school fund
allocations in the manner provided by Section 42.152(d)
[42.253(h)].
(e) Section 42.153 [42.258] applies to payments under this
subchapter.
SECTION 2.43. Section 46.032(a), Education Code, is amended
to read as follows:
(a) Each school district is guaranteed a specified amount
per student in state and local funds for each cent of tax effort to
pay the principal of and interest on eligible bonds. The amount of
state support, subject only to the maximum amount under Section
46.034, is determined by the formula:
EDA = (EDGL X ADA X EDTR X 100) - (EDTR X (DPV/100))
where:
"EDA" is the amount of state funds to be allocated to the
district for assistance with existing debt;
"EDGL" is the dollar amount guaranteed level of state and
local funds per student per cent of tax effort, which is $35 or a
greater amount for any year provided by appropriation;
"ADA" is the number of students in average daily attendance,
as determined under Section 42.005, in the district;
"EDTR" is the existing debt tax rate of the district, which is
determined by dividing the amount budgeted by the district for
payment of eligible bonds 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
"DPV" is the district's taxable value of property [as
determined under Subchapter M, Chapter 403, Government Code, or, if
applicable, under Section 42.2521].
SECTION 2.44. Section 56.208(b), Education Code, is amended
to read as follows:
(b) The commissioner of education shall reduce the total
annual amount of foundation school fund payments made to a school
district by an amount equal to [F x A, where:
[(1) "F" is the lesser of one or the quotient of the
district's local share for the preceding school year under Section
42.252 divided by the amount of money to which the district was
entitled under Subchapters B and C, Chapter 42, for the preceding
school year; and
[(2) "A" is] the amount of state tuition credits under
this subchapter applied by institutions of higher education on
behalf of eligible persons who graduated from the district that has
not been used to compute a previous reduction under this
subsection.
SECTION 2.45. Section 87.208, Education Code, is amended to
read as follows:
Sec. 87.208. SEABORNE CONSERVATION CORPS. If the board of
regents of The Texas A&M University System administers a program
that is substantially similar to the Seaborne Conservation Corps as
it was administered by the board during the 1998-1999 school year,
the program is entitled, for each student enrolled, to an allotment
[allotments] from the Foundation School Program under Chapter 42 as
if the program were a school district [, except that the program has
a local share applied that is equivalent to the local fund
assignment of the school district in which the principal facilities
of the program are located].
SECTION 2.46. Section 96.707(k), Education Code, is amended
to read as follows:
(k) For each student enrolled in the academy, the academy is
entitled to an allotment [allotments] from the Foundation School
Program under Chapter 42 as if the academy were a school district [,
except that the academy has a local share applied that is equivalent
to the local fund assignment of the Beaumont Independent School
District].
SECTION 2.47. Section 105.301(e), Education Code, is
amended to read as follows:
(e) The academy is not subject to the provisions of this
code, or to the rules of the Texas Education Agency, regulating
public schools, except that:
(1) professional employees of the academy are entitled
to the limited liability of an employee under Section 22.051 or
22.052;
(2) a student's attendance at the academy satisfies
compulsory school attendance requirements; and
(3) for each student enrolled, the academy is entitled
to an allotment [allotments] from the foundation school program
under Chapter 42 as if the academy were a school district[, except
that the academy has a local share applied that is equivalent to the
local fund assignment of the Denton Independent School District].
ARTICLE 3. CONFORMING AMENDMENTS TO OTHER CODES
SECTION 3.01. Section 317.005(f), Government Code, is
amended to read as follows:
(f) The governor or board may adopt an order under this
section withholding or transferring any portion of the total amount
appropriated to finance the foundation school program for a fiscal
year. The governor or board may not adopt such an order if it would
result in an allocation of money [between particular programs or
statutory allotments] under the foundation school program contrary
to the statutory proration formula provided by Section 42.152(d)
[42.253(h)], Education Code. The governor or board may transfer an
amount to the total amount appropriated to finance the foundation
school program for a fiscal year [and may increase the basic
allotment. The governor or board may adjust allocations of amounts
between particular programs or statutory allotments under the
foundation school program] only for the purpose of conforming the
allocations to actual program costs [pupil enrollments or
attendance].
SECTION 3.02. Section 403.093(d), Government Code, is
amended to read as follows:
(d) The comptroller shall transfer from the general revenue
fund to the foundation school fund an amount of money necessary to
fund the foundation school program as provided by Chapter 42,
Education Code. [The comptroller shall make the transfers in
installments as necessary to comply with Section 42.259, Education
Code. An installment must be made not earlier than two days before
the date an installment to school districts is required by Section
42.259, Education Code, and must not exceed the amount necessary
for that payment.]
SECTION 3.03. Sections 825.405(b) and (h), Government Code,
are amended to read as follows:
(b) For purposes of this section, the statutory minimum
salary is the salary provided by Section 21.402 or the former
Sections 16.056 and 16.058, Education Code [, multiplied by the
cost of education adjustment applicable under Section 42.102,
Education Code, to the district in which the member is employed].
(h) This section does not apply to state contributions for
members employed by a school district in a school year if the
district's effective tax rate for maintenance and operation
revenues for the tax year that ended in the preceding school year
equals or exceeds 125 percent of the statewide average effective
tax rate for school district maintenance and operation revenues for
that tax year. For a tax year, the statewide average effective tax
rate for school district maintenance and operation revenues is the
tax rate that, if applied to the statewide total appraised value of
taxable property for every school district in the state [determined
under Section 403.302], would produce an amount equal to the
statewide total amount of maintenance and operation taxes imposed
in the tax year for every school district in the state.
SECTION 3.04. 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 [that entitles the district to an allotment of state
funds under Subchapter F, Chapter 42, Education Code].
SECTION 3.05. Section 5.10(a), Tax Code, is amended to read
as follows:
(a) The comptroller shall conduct an annual study in each
appraisal district to determine the degree of uniformity of and the
median level of appraisals by the appraisal district within each
major category of property. The comptroller shall publish a report
of the findings of the study, including in the report the median
levels of appraisal for each major category of property, the
coefficient of dispersion around the median level of appraisal for
each major category of property, and any other standard statistical
measures that the comptroller considers appropriate. [In
conducting the study, the comptroller shall apply appropriate
standard statistical analysis techniques to data collected as part
of the annual study of school district taxable values required by
Section 403.302, Government Code.]
SECTION 3.06. Section 5.101(a), Tax Code, is amended to
read as follows:
(a) The comptroller shall appoint a technical advisory
committee for the purpose of providing professional and practical
expertise to the comptroller and to review and comment on the
methodology used by the comptroller to conduct the annual study
[studies] required by Section 5.10 [of this code and by Section
403.302, Government Code]. A member of the committee serves at the
will of the comptroller.
SECTION 3.07. Section 5.16(a), Tax Code, is amended to read
as follows:
(a) The comptroller may inspect the records or other
materials of an appraisal office or taxing unit, including the
relevant records and materials in the possession or control of a
consultant, advisor, or expert hired by the appraisal office or
taxing unit, for the purpose of:
(1) establishing, reviewing, or evaluating the value
of or an appraisal of any property; or
(2) conducting a study, review, or audit required by
Section 5.10 or 5.102 [or by Section 403.302, Government Code].
SECTION 3.08. 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 3.09. 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 3.10. 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 3.11. 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 computed according to the following formula:
ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND OPERATIONS RATE x
1.06) + CURRENT DEBT RATE [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 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 3.12. Section 313.022(b), Tax Code, is amended to
read as follows:
(b) For purposes of determining the required minimum amount
of a qualified investment under Section 313.021(2)(A)(iv)(a), and
the minimum amount of a limitation on appraised value under Section
313.027(b), school districts to which this subchapter applies are
categorized according to the taxable value of property in the
district for the preceding tax year [determined under Subchapter M,
Chapter 403, Government Code], as follows:
CATEGORY TAXABLE VALUE OF PROPERTY
I $10 billion or more
II $1 billion or more but less than $10 billion
III $500 million or more but less than $1 billion
IV $100 million or more but less than $500 million
V less than $100 million
SECTION 3.13. Section 313.052, Tax Code, is amended to read
as follows:
Sec. 313.052. CATEGORIZATION OF SCHOOL DISTRICTS. For
purposes of determining the required minimum amount of a qualified
investment under Section 313.021(2)(A)(iv)(a) and the minimum
amount of a limitation on appraised value under this subchapter,
school districts to which this subchapter applies are categorized
according to the taxable value of industrial property in the
district for the preceding tax year [determined under Subchapter M,
Chapter 403, Government Code], as follows:
CATEGORY TAXABLE VALUE OF INDUSTRIAL PROPERTY
I $200 million or more
II $90 million or more but less than $200 million
III $1 million or more but less than $90 million
IV $100,000 or more but less than $1 million
V less than $100,000
SECTION 3.14. Section 5(a), Article 3.50-7, Insurance Code,
is amended to read as follows:
(a) Each [Effective September 1, 2002, each] school
district [with 500 or fewer employees] and each regional education
service center is required to participate in the program.
SECTION 3.15. Section 9(a), Article 3.50-7, Insurance Code,
is amended to read as follows:
(a) The state shall pay the entire cost of group health
coverage under this article at the catastrophic care coverage level
for [assist] employees of participating entities [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 4. REPEALERS
SECTION 4.01. The following provisions of the Education
Code are repealed:
(1) Sections 7.021(b)(5), 7.024, 7.055(b)(14) and
(34), 8.052, 8.121-8.124, 13.054(f) and (g), 19.007(b), 21.402(b),
22.004(b)-(i), 29.014(d), 29.086(e), 29.203(b), (c), and (g),
29.256(c), 30.003(f), 30.087(c), 30.102(c), 31.002(4), 31.021,
31.025, 31.026, 31.028, 31.029, 31.101(b)-(d), 31.1011-31.106,
31.151(d), 34.002(c), 34.008(b), 42.001, 42.002, 42.007, and
46.009(f);
(2) Section 33.001, as amended by Chapters 1223 and
1487, Acts of the 77th Legislature, Regular Session, 2001;
(3) Sections 46.012 and 46.036, as added by Chapter
1156, Acts of the 77th Legislature, Regular Session, 2001;
(4) Subchapter E, Chapter 31;
(5) Chapter 41; and
(6) Subchapters B, C, E, F, and H, Chapter 42, as added
by Chapter 260, Acts of the 74th Legislature, Regular Session,
1995.
SECTION 4.02. Sections 322.008(b) and 825.405(i) and
Subchapter M, Chapter 403, Government Code, are repealed.
SECTION 4.03. The following sections of the Tax Code are
repealed: 6.02(g), 6.03(m), 21.02(b) and (c), 25.25(k), and
26.08(j), (k), and (l).
SECTION 4.04. The following provisions of the Insurance
Code are repealed:
(1) Sections 5(b)-(i) and 9(b)-(e), Article 3.50-7;
and
(2) Articles 3.50-8 and 3.50-9.
SECTION 4.05. Section 39.901, Utilities Code, is repealed.
ARTICLE 5. TRANSITION PROVISIONS AND EFFECTIVE DATE
SECTION 5.01. The investment capital fund created under
Section 7.024, Education Code, is abolished, and the comptroller
shall transfer any balance in the fund on the effective date of this
Act to the foundation school fund.
SECTION 5.02. The state textbook fund created under section
31.021, Education Code, is abolished, and the comptroller shall
transfer any balance in the fund on the effective date of this Act
to the foundation school fund.
SECTION 5.03. On February 7, 2004, or May 1, 2004, each
school district shall hold an election to adopt an ad valorem tax
for maintenance and operations at a rate that provides sufficient
local funding for the district, as determined by the district. A
tax rate adopted by a district before January 1, 2004, is void on or
after that date.
SECTION 5.04. This Act applies beginning with the 2004-2005
school year.
SECTION 5.05. This Act takes effect January 1, 2004, but
only if the constitutional amendment proposed by the 78th
Legislature, Regular Session, 2003, relating to a public school
finance system based on state provision of teacher salaries and
benefits and assistance for maintenance and construction of school
facilities is approved by the voters. If that amendment is not
approved by the voters, this Act has no effect.