79R1483 BDH-D
By: Mowery H.B. No. 324
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 $39,000 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.
[Sections 42.103-42.150 reserved for expansion]
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.
(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.
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
(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.
(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 reduce the total
amount of state funds allocated to each district by an amount
determined by a method under which the application of the same
number of cents of increase in tax rate in all districts applied to
the taxable value of property of each district results in a total
levy equal to the total reduction.
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 8.125, Education Code, is amended to
read as follows:
Sec. 8.125. CONTRACTS FOR FUNDING [GRANTS]. (a) Each
regional education service center board of directors may enter into
a contract with a school district, but may not receive money
directly from the state.
(b) Each regional education service center board of
directors, under rules adopted by the commissioner, may enter into
a contract for a grant from a public or private organization and may
spend grant funds in accordance with the terms of the contract.
SECTION 2.05. 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 2.06. 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 39.132;
(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 2.07. 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 2.08. 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 2.09. 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 2.10. 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 2.11. 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 2.12. 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 2.13. 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
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 2.15. Section 21.411(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 21.412(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 2.17. Section 21.413(h), Education Code, as added
by Chapter 430, Acts of the 78th Legislature, Regular Session,
2003, 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:
(1) kindergarten through grade 11 who are identified
as likely not to be promoted to the next grade level for the
succeeding school year; or
(2) grade 12 who are identified as likely not to
graduate from high school before the beginning of 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 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 2.27. 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 2.28. Section 39.134, Education Code, is amended to
read as follows:
Sec. 39.134. COSTS PAID BY DISTRICT. 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 2.29. Section 43.002(b), Education Code, is amended
to read as follows:
(b) 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 2.30. Section 45.003(d), Education Code, is amended
to read as follows:
(d) A proposition submitted to authorize the levy of
maintenance taxes must include the question of whether the
governing board or commissioners court may levy, assess, and
collect annual ad valorem taxes for the further maintenance of
public schools, at a rate not to exceed the rate [, which may be not
more than $1.50 on the $100 valuation of taxable property in the
district,] stated in the proposition.
SECTION 2.31. 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, 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 2.32. 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 2.33. 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 2.34. 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 2.35. 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 2.36. 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 22.0511,
22.0512, 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 [without a
tier one local share for purposes of Section 42.253].
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 a [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 42.253(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 amount appropriated [allocations] to actual 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. Section 825.405(b), Government Code, is
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].
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 or to an assistance organization
designated by the school district before disposing of the property
in another manner. If more than one public school or school
district or assistance organization 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,] or to the assistance
organization designated by such a school district.
SECTION 3.05. 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 3.06. 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 3.07. 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 3.08. Sections 26.08(i) and (k), Tax Code, are
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].
(k) For purposes of this section, for the [2003, 2004,]
2005, 2006, 2007, or 2008 tax year, for a school district that is
entitled to state funds under Section 1581.1015(d), (e), or (f)
[4(a-1), (a-2), (a-3), (a-4), (a-5), or (a-6), Article 3.50-9],
Insurance Code, the rollback tax rate of the district is the sum of:
(1) the tax rate computed under Subsection (i) [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]; and
(2) the tax rate that[, applied to the current total
value for the district, would impose taxes in the 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,] permits the district to
comply with Section 1581.052 [3, Article 3.50-9], Insurance Code[;
[(3) the rate of $0.06 per $100 of taxable value; and
[(4) the district's current debt rate].
SECTION 3.09. Section 1579.251(a), Insurance Code, is
amended to read as follows:
(a) The state shall assist employees of participating
school districts and charter schools in the purchase of group
health coverage under this chapter 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.]
SECTION 3.10. Chapter 1580, Insurance Code, is reenacted
and amended to read as follows:
CHAPTER 1580. ACTIVE EMPLOYEE HEALTH COVERAGE
OR COMPENSATION SUPPLEMENTATION
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 1580.001. DEFINITIONS. In this chapter:
(1) "Cafeteria plan" means a plan as defined and
authorized by Section 125, Internal Revenue Code of 1986, and its
subsequent amendments.
(2) "Employee" means a participating member of the
Teacher Retirement System of Texas who:
(A) is employed by a school district, other
educational district whose employees are members of the Teacher
Retirement System of Texas, participating charter school, or
regional education service center; and
(B) is not a retiree covered under the program
established under Chapter 1575.
(3) "Participating charter school" means an
open-enrollment charter school established under Subchapter D,
Chapter 12, Education Code, that participates in the program
established under Chapter 1579.
(4) "Regional education service center" means a
regional education service center established under Chapter 8,
Education Code.
(5) "Trustee" means the Teacher Retirement System of
Texas.
Sec. 1580.002. AUTHORITY TO ADOPT RULES; OTHER AUTHORITY.
(a) The trustee may adopt rules to implement this chapter.
(b) The trustee may enter into interagency contracts with
any agency of this state for the purpose of assistance in
implementing this chapter.
[Sections 1580.003-1580.050 reserved for expansion]
SUBCHAPTER B. DISTRIBUTION OF STATE FUNDS BY TRUSTEE
Sec. 1580.051. DISTRIBUTION BY TRUSTEE. Each year, the
trustee shall deliver to each school district, [including a school
district that is ineligible for state aid under Chapter 42,
Education Code,] each other educational district that is a member
of the Teacher Retirement System of Texas, each participating
charter school, and each regional education service center state
funds in an amount, as determined by the trustee, equal to the
product of the number of active employees employed by the district,
school, or service center multiplied by $1,000 or a greater amount
as provided by the General Appropriations Act for purposes of this
chapter.
Sec. 1580.052. EQUAL INSTALLMENTS. The trustee shall
distribute funds under this chapter in equal monthly installments.
Sec. 1580.053. FUNDS HELD IN TRUST. All funds received by a
school district, other educational district, participating charter
school, or regional education service center under this chapter are
held in trust for the benefit of the active employees on whose
behalf the district, school, or service center received the funds.
Sec. 1580.054. RECOVERY OF DISTRIBUTIONS. The trustee is
entitled to recover from a school district, other educational
district, participating charter school, or regional education
service center any amount distributed under this chapter to which
the district, school, or service center was not entitled.
Sec. 1580.055. DETERMINATION OF TRUSTEE FINAL. A
determination by the trustee under this subchapter is final and may
not be appealed.
[Sections 1580.056-1580.100 reserved for expansion]
SUBCHAPTER C. EMPLOYEE ELECTION
Sec. 1580.101. EMPLOYEE COVERED BY CAFETERIA PLAN. (a) If
an active employee is covered by a cafeteria plan of a school
district, other educational district, participating charter
school, or regional education service center, the state
contribution under this chapter shall be deposited in the cafeteria
plan, and the employee may elect among the options provided by the
cafeteria plan.
(b) A cafeteria plan receiving state contributions under
this chapter may include a medical savings account option and must
include, at a minimum, the following options:
(1) a health care reimbursement account;
(2) a benefit or coverage other than that provided
under Chapter 1579, or any employee coverage or dependent coverage
available under Chapter 1579 but not otherwise fully funded by the
state or the employer contributions, any of which must be a
"qualified benefit" under Section 125, Internal Revenue Code of
1986, and its subsequent amendments;
(3) an option for the employee to receive the state
contribution as supplemental compensation; or
(4) an option to divide the state contribution among
two or more of the other options provided under this subsection.
Sec. 1580.102. EMPLOYEE NOT COVERED BY CAFETERIA PLAN. If
an active employee is not covered by a cafeteria plan of a school
district, other educational district, participating charter
school, or regional education service center, the state
contribution under this chapter shall be paid to the active
employee as supplemental compensation.
Sec. 1580.103. SUPPLEMENTAL COMPENSATION. Supplemental
compensation under this subchapter must be in addition to the rate
of compensation that:
(1) the school district, other educational district,
participating charter school, or regional education service center
paid the employee in the preceding school year; or
(2) the district, school, or service center would have
paid the employee in the preceding school year if the employee had
been employed by the district, school, or service center in the same
capacity in the preceding school year.
Sec. 1580.104. TIME FOR ELECTION. For each state fiscal
year, an election under this subchapter must be made before the
later of:
(1) August 1 of the preceding state fiscal year; or
(2) the 31st day after the date the employee is hired.
Sec. 1580.105. WRITTEN EXPLANATION; ELECTION FORM. (a)
The trustee shall prescribe and distribute to each school district,
other educational district, participating charter school, and
regional education service center:
(1) a model explanation written in English and Spanish
of the options active employees may elect under this section and the
effect of electing each option; and
(2) an election form to be completed by active
employees.
(b) Each state fiscal year, a school district, other
educational district, participating charter school, or regional
education service center shall prepare and distribute to each
active employee a written explanation in English and Spanish, as
appropriate, of the options the employee may elect under this
section. The explanation must be based on the model explanation
prepared by the trustee under Subsection (a) and must reflect all
available health coverage options available to the employee. The
explanation must be distributed to an employee before the later of:
(1) July 1 of the preceding state fiscal year; or
(2) the fifth day after the date the employee is hired.
(c) The written explanation under Subsection (b) must be
accompanied by a copy of the election form prescribed under
Subsection (a)(2).
Sec. 1580.106. RETURN OF UNENCUMBERED FUNDS. Any
unencumbered funds that are returned to the school district from
accounts established under Section 1580.101 may be used only to
provide employee compensation, benefits, or both.
[Sections 1580.107-1580.150 reserved for expansion]
SUBCHAPTER D. MEDICAL SAVINGS ACCOUNT
Sec. 1580.151. DEFINITION. In this subchapter, "qualified
health care expense" means an expense paid by an employee for
medical care, as defined by Section 213(d), Internal Revenue Code
of 1986, and its subsequent amendments, for the employee or the
employee's dependents, as defined by Section 152, Internal Revenue
Code of 1986, and its subsequent amendments.
Sec. 1580.152. RULES. The trustee, by rule, shall specify
the requirements for a medical savings account established under
this chapter.
Sec. 1580.153. QUALIFICATION OF ACCOUNT. (a) The trustee
shall request in writing a ruling or opinion from the Internal
Revenue Service as to whether the medical savings accounts
established under this chapter and the state rules governing those
accounts qualify the accounts for appropriate federal tax
exemptions.
(b) Based on the response of the Internal Revenue Service
under Subsection (a), the trustee shall:
(1) modify the rules, plans, and procedures adopted
under this section as necessary to ensure the qualification of
those accounts for appropriate federal tax exemptions; and
(2) certify the information regarding federal tax
qualifications to the comptroller.
Sec. 1580.154. EMPLOYEE ELECTION. An employee who elects
under Section 1580.101 to have state funds distributed under this
chapter placed in a medical savings account may use the money in
that account only for a qualified health care expense.
SECTION 3.11. Section 1581.051(a), Insurance Code, is
amended to read as follows:
(a) Subject to Section [Sections] 1581.052 [and 1581.053],
and except as provided by Section 1581.054, a school district,
other educational district whose employees are members of the
Teacher Retirement System of Texas, participating charter school,
or regional education service center that, for the 2000-2001 school
year, paid amounts to share with employees the cost of coverage
under a group health coverage plan shall, for each fiscal year, use
to provide health coverage an amount for each participating
employee at least equal to the amount computed as provided by this
section.
SECTION 3.12. Sections 1581.1015(d)-(f), Insurance Code,
are amended to read as follows:
(d) For the state fiscal year beginning September 1, 2005, a
school district or participating charter school is entitled to
state funds in an amount equal to the difference, if any, between:
(1) an amount equal to the number of participating
employees of the district or school multiplied by $900; and
(2) if the following amount is less than the amount
specified by Subdivision (1), [the sum of:
[(A)] the amount the district or school is
required to use to provide health coverage under Section 1581.051
for that fiscal year [; and
[(B) the difference, if any, between:
[(i) the amount determined under Section
42.2514(b)(2), Education Code; and
[(ii) the amount determined under Section
42.2514(b)(1), Education Code, if that amount is less than the
amount specified by Subparagraph (i)].
(e) For the state fiscal year beginning September 1, 2006, a
school district or participating charter school is entitled to
state funds in an amount equal to the difference, if any, between:
(1) an amount equal to the number of participating
employees of the district or school multiplied by $600; and
(2) if the following amount is less than the amount
specified by Subdivision (1), [the sum of:
[(A)] the amount the district or school is
required to use to provide health coverage under Section 1581.051
for that fiscal year [; and
[(B) the difference, if any, between:
[(i) the amount determined under Section
42.2514(b)(2), Education Code; and
[(ii) the amount determined under Section
42.2514(b)(1), Education Code, if that amount is less than the
amount specified by Subparagraph (i)].
(f) For the state fiscal year beginning September 1, 2007, a
school district or participating charter school is entitled to
state funds in an amount equal to the difference, if any, between:
(1) an amount equal to the number of participating
employees of the district or school multiplied by $300; and
(2) if the following amount is less than the amount
specified by Subdivision (1), [the sum of:
[(A)] the amount the district or school is
required to use to provide health coverage under Section 1581.051
for that fiscal year[; and
[(B) the difference, if any, between:
[(i) the amount determined under Section
42.2514(b)(2), Education Code; and
[(ii) the amount determined under Section
42.2514(b)(1), Education Code, if that amount is less than the
amount specified by Subparagraph (i)].
SECTION 3.13. Section 39.903(e), Utilities Code, as amended
by Chapters 1394, 1451, and 1466, Acts of the 77th Legislature,
Regular Session, 2001, is amended to read as follows:
(e) The system benefit fund shall provide funding solely for
the following regulatory purposes and in the following order of
priority:
(1) programs to assist low-income electric customers
provided by Subsections (f)-(l);
[(1) programs to assist low-income electric customers
by providing the 10 percent reduced rate prescribed by Subsection
(h);]
(2) customer education programs;
(3)[,] administrative expenses incurred by the
commission in implementing and administering this chapter[,] and
expenses incurred by the office under this chapter; and
[(3) programs to assist low-income electric customers
by providing the targeted energy efficiency programs described by
Subsection (f)(2);
[(4) the school funding loss mechanism provided by
Section 39.901; and]
(4) reimbursement to the commission and the Texas
Department of Human Services for expenses incurred in the
implementation and administration of an integrated eligibility
process created under Section 17.007 for customer service discounts
relating to retail electric service, including outreach expenses
the commission determines are reasonable and necessary.
[(5) programs to assist low-income electric customers
by providing the 20 percent reduced rate prescribed by Subsection
(h).]
ARTICLE 4. REPEALERS
SECTION 4.01. The following provisions of the Education
Code are repealed:
(1) Sections 4.003, 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), 29.014(d), 29.086(e), 29.203(b), (c), and (g),
29.256(c), 30.003(f), 30.087(c), 30.102(c), 33.002(a), 34.002(c),
34.008(b), 39.024(e), 42.001, 42.002, 42.007, 45.006, 46.009(f),
46.013, and 46.037;
(2) Chapter 41; and
(3) Subchapters B, C, E, F, and H, Chapter 42.
SECTION 4.02. Section 322.008(b), Government Code, is
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) and (l).
SECTION 4.04. Sections 1581.053 and 1581.1015(a)-(c),
Insurance Code, are repealed.
SECTION 4.05. Section 39.901, Utilities Code, is repealed.
SECTION 4.06. The following laws are repealed:
(1) Sections 1-3 and 57, Chapter 201, Acts of the 78th
Legislature, Regular Session, 2003;
(2) Chapter 313, Acts of the 78th Legislature, Regular
Session, 2003; and
(3) Section 1.01, Chapter 366, Acts of the 78th
Legislature, Regular Session, 2003.
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. This Act applies beginning with the 2005-2006
school year.
SECTION 5.03. 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 September 1, 2005.