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.