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79S30802 JRD-D

By:  Keffer of Dallas                                             H.B. No. 98 



A BILL TO BE ENTITLED

AN ACT

relating to the use of current and future state budget surpluses to 
reduce local school district property tax rates; making an 
appropriation.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  (a) The amount of $6.15 billion is appropriated 
out of the general revenue fund to the credit of the available 
school fund for the state fiscal biennium ending August 31, 2007, 
and that same amount is appropriated out of the available school 
fund to the Texas Education Agency for the state fiscal biennium 
ending August 31, 2007, for the purpose of reducing local school 
district maintenance and operations tax rates in accordance with 
Subsection (b).
	(b)  The Texas Education Agency, as soon as possible after 
the effective date of this Act, shall develop and adopt a plan for 
the distribution of the money appropriated by Subsection (a). The 
commissioner may expend and distribute the money only:
		(1)  in accordance with a final plan for the 
distribution of the money; and 
		(2)  with the prior approval of the Legislative Budget 
Board and the governor.
	SECTION 2.  Subchapter A, Chapter 42, Education Code, is 
amended by adding Section 42.008 to read as follows:
	Sec. 42.008.  USE OF STATE BUDGET SURPLUSES FOR SCHOOL 
DISTRICT PROPERTY TAX RELIEF.  (a) Not later than the 90th day of 
each state fiscal biennium, the comptroller shall determine the 
amount of the unencumbered positive balance of general revenues on 
the last day of the preceding biennium. On making that 
determination, the comptroller shall transfer one-half of the 
amount determined into a separate fund in the state treasury known 
as the school district property tax relief fund. For purposes of 
this subsection, general revenues are considered encumbered on the 
last day of a state fiscal biennium only to the extent that general 
revenues are subject to payment for particular identifiable and 
legally enforceable obligations of this state that were incurred on 
or before that day.
	(b)  Money in the school district property tax relief fund 
may be used only for the purpose of reducing local school district 
maintenance and operations tax rates in the manner provided by this 
section.
	(c)  The school district property tax relief fund is exempt 
from the application of Sections 403.095 and 404.071, Government 
Code. Interest and income from the deposit and investment of money 
in the fund are allocated to the fund monthly.
	(d)  In any state fiscal biennium, the commissioner of 
education may expend and distribute money appropriated from the 
school district property tax relief fund only:
		(1)  in accordance with a final plan for the 
distribution of the money; and
		(2)  with the prior approval of the Legislative Budget 
Board and the governor.
	(e)  Not later than the 90th day of each state fiscal 
biennium, the commissioner of education shall prepare and adopt a 
plan for the distribution of the money appropriated to the Texas 
Education Agency from the school district property tax relief fund 
for that biennium and send the proposed plan to the governor and the 
Legislative Budget Board for review and comment.
	SECTION 3.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect on the 91st day after the last day of the 
legislative session.