78R5179 BDH-D
By: Ogden S.B. No. 1487
A BILL TO BE ENTITLED
AN ACT
relating to public school finance.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 41.093(b), Education Code, is amended to
read as follows:
(b) For purposes of this section, a school district's
maintenance and operations tax revenue does not include:
(1) any revenue generated by a maintenance and
operations tax rate greater than $1.40 for each $100 of valuation of
taxable property; or
(2) any amounts paid into a tax increment fund under
Chapter 311, Tax Code.
SECTION 2. Section 41.097(a), Education Code, is amended to
read as follows:
(a) The total amount required under Section 41.093 for a
district to purchase attendance credits under this subchapter for
any school year is reduced by an amount equal to the product of the
district's costs under Section 6.06, Tax Code, for the central
appraisal district in which it participates multiplied by a
percentage that is computed by dividing the total amount required
under Section 41.093 by the total amount of taxes imposed in the
district for that year less:
(1) any revenue generated by a maintenance and
operations tax rate greater than $1.40 for each $100 valuation of
taxable property; or
(2) any amounts paid into a tax increment fund under
Chapter 311, Tax Code.
SECTION 3. Section 42.158(g), Education Code, is amended to
read as follows:
(g) In this section, "instructional facility" means real
property, an improvement to real property, or a necessary fixture
of an improvement to real property that is used predominantly for
teaching the curriculum required under Section 28.002 [has the
meaning assigned by Section 46.001].
SECTION 4. Section 42.301, Education Code, is amended to
read as follows:
Sec. 42.301. PURPOSE. The purpose of the guaranteed yield
component of the Foundation School Program is to provide each
school district with the opportunity to provide the basic program
and to supplement that program at a level of its own choice. An
allotment under this subchapter may be used for any legal purpose
[other than capital outlay or debt service].
SECTION 5. Section 42.302(a), Education Code, is amended to
read as follows:
(a) Each school district is guaranteed a specified amount
per weighted student in state and local funds for each cent of tax
effort over that required for the district's local fund assignment
up to the maximum level specified in this subchapter. The amount of
state support, subject only to the maximum amount under Section
42.303, is determined by the formula:
GYA = (GL X WADA X DTR X 100) - LR
where:
"GYA" is the guaranteed yield amount of state funds to be
allocated to the district;
"GL" is the dollar amount guaranteed level of state and local
funds per weighted student per cent of tax effort, which is $32.17
[$27.14] or a greater amount for any year provided by
appropriation;
"WADA" is the number of students in weighted average daily
attendance, which is calculated by dividing the sum of the school
district's allotments under Subchapters B and C, less any allotment
to the district for transportation, any allotment under Section
42.158, and 50 percent of the adjustment under Section 42.102, by
the basic allotment for the applicable year;
"DTR" is the district enrichment tax rate of the school
district, which is determined by subtracting the amounts specified
by Subsection (b) from the total amount of maintenance and
operations taxes collected by the school district for the
applicable school year and dividing the difference by the quotient
of the district's taxable value of property as determined under
Subchapter M, Chapter 403, Government Code, or, if applicable,
under Section 42.2521, divided by 100; and
"LR" is the local revenue, which is determined by multiplying
"DTR" by the quotient of the district's taxable value of property as
determined under Subchapter M, Chapter 403, Government Code, or, if
applicable, under Section 42.2521, divided by 100.
SECTION 6. Section 42.303, Education Code, is amended to
read as follows:
Sec. 42.303. LIMITATION ON ENRICHMENT TAX RATE. The
district enrichment tax rate ("DTR") under Section 42.302 may not
exceed $0.54 [$0.64] per $100 of valuation, or a greater amount for
any year provided by appropriation.
SECTION 7. Section 46.033, Education Code, is amended to
read as follows:
Sec. 46.033. ELIGIBLE BONDS. Bonds, including bonds issued
under Section 45.006, are eligible to be paid with state and local
funds under this subchapter if:
(1) the district made payments on the bonds during the
2000-2001 school year or taxes levied to pay the principal of and
interest on the bonds were included in the district's audited debt
service collections for that school year; and
(2) the district does not receive state assistance
under former Subchapter A, as that subchapter existed on January 1,
2003, for payment of the principal and interest on the bonds.
SECTION 8. Section 46.034(a), Education Code, is amended to
read as follows:
(a) The existing debt tax rate ("EDTR") under Section 46.032
may not exceed $0.20 [$0.29] per $100 of valuation, or a greater
amount for any year provided by appropriation.
SECTION 9. Section 46.035, Education Code, is amended to
read as follows:
Sec. 46.035. PAYMENT OF ASSISTANCE. (a) For each school
year, the commissioner shall determine the amount of money to which
each school district is entitled under this subchapter.
(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
existing debt allotment 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 42.253(h).
(c) Warrants for payments under this subchapter shall be
approved and transmitted to school district treasurers or
depositories in the same manner as warrants for payments under
Chapter 42.
(d) As soon as practicable after September 1 of each year,
the commissioner shall distribute to each school district the
amount of state assistance under this subchapter to which the
commissioner has determined the district is entitled for the school
year. The district shall deposit the money in the interest and
sinking fund for the bonds for which the assistance is received and
shall adopt a tax rate for purposes of debt service that takes into
account the balance of the interest and sinking fund.
(e) Section 42.258 applies to payments under this
subchapter.
(f) If a school district would have received a greater
amount under this subchapter for the applicable school year using
the adjusted value determined under Section 42.257, the
commissioner shall add the difference between the adjusted value
and the amount the district received under this subchapter to
subsequent distributions to the district under this subchapter
[Section 46.009 applies to the payment of assistance under this
subchapter].
SECTION 10. Section 46.061(b), Education Code, is amended
to read as follows:
(b) The commissioner may allocate state assistance provided
for a refinancing to former Subchapter A, as that subchapter
existed on January 1, 2003, Subchapter B, or both, as appropriate.
SECTION 11. (a) Subchapter A, Chapter 46, Education Code,
is repealed.
(b) The change in law made by Subsection (a) of this section
does not apply to state assistance under an application approved by
the commissioner of education under Subchapter A, Chapter 46,
Education Code, as that subchapter existed before September 1,
2003. State assistance under Subchapter A, Chapter 46, Education
Code, under an application approved by the commissioner of
education before September 1, 2003, is governed by Subchapter A,
Chapter 46, Education Code, as it existed on January 1, 2003, and
the former law is continued in effect for that purpose.
SECTION 12. This Act takes effect September 1, 2003.