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A BILL TO BE ENTITLED
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AN ACT
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relating to the financing of school district facilities and tax |
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relief for facilities debt. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The chapter title of Chapter 46, Education Code, and |
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the title of Subchapter A, Chapter 46, Education Code, are amended |
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to read as follows: |
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CHAPTER 46. ASSISTANCE WITH INSTRUCTIONAL FACILITIES AND PROPERTY |
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TAX RELIEF [PAYMENT OF] FOR EXISTING DEBT |
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SUBCHAPTER A. INITIAL [INSTRUCTIONAL] FACILITIES ALLOTMENT |
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SECTION 2. Section 46.003, Chapter 46, Education Code, is |
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amended by amending the section title and subsections (a), (d), |
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(e), and (h) to read as follows: |
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Sec. 46.003. INITIAL SCHOOL FACILITIES ALLOTMENT. (a) In |
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the second year of the fiscal biennium in which the debt is issued |
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For each year, except as provided by Sections 46.005 [and 46.006], a |
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school district is guaranteed a specified amount per student in |
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state and local funds for each cent of tax effort, up to the maximum |
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rate under Subsection (b), to pay the principal of and interest on |
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eligible bonds issued to construct, acquire, renovate, or improve |
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an instructional facility. The amount of state support is |
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determined by the formula: |
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FYA = (FYL X ADA X BTR X 100) - (BTR X (DPV/100)) |
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where: |
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"FYA" is the guaranteed facilities yield amount of state |
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funds allocated to the district for the year; |
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"FYL" is the dollar amount guaranteed level of state and |
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local funds per student per cent of tax effort, which is the amount |
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of district tax revenue per student in average daily attendance per |
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cent of tax effort available to a district at the ____ percentile in |
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wealth per student in average daily attendance, as determined by |
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the commissioner in cooperation with the Legislative Budget Board |
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[$35] or a greater amount for any year provided by appropriation; |
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"ADA" is the greater of the number of students in average |
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daily attendance, as determined under Section 42.005, in the |
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district or 400; |
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"BTR" is the district's bond tax rate for the current year, |
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which is determined by dividing the amount budgeted by the district |
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for payment of eligible bonds by the quotient of the district's |
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taxable value of property as determined under Subchapter M, Chapter |
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403, Government Code, or, if applicable, Section 42.2521, divided |
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by 100; and |
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"DPV" is the district's taxable value of property as |
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determined under Subchapter M, Chapter 403, Government Code, or, if |
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applicable, Section 42.2521. |
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(d) The amount budgeted by a district for payment of |
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eligible bonds may include: |
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(1) bond taxes collected in the current school year; |
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(2) bond taxes collected in a preceding school year in |
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excess of the amount necessary to pay the district's share of actual |
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debt service on bonds in that year, provided that the taxes were not |
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used to generate other state financial assistance for the district; |
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[or] |
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(3) maintenance and operations taxes collected in the |
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current school year or a preceding school year in excess of the |
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amount eligible to be used to generate other state financial |
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assistance for the district; or |
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(4) penalty and interest on delinquent taxes, interest |
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on bond tax revenue, or any other available local revenue that has |
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not otherwise been used to generate other state financial |
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assistance for the district. |
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(e) Bonds are eligible to be paid with state and local funds |
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under this section if:
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(1) taxes to pay the principal of and interest on the
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bonds were first levied in the 1997-1998 school year or a later
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school year; and
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(2) the bonds do not have a weighted average maturity |
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of less than eight years. |
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(h) To receive state assistance under this subchapter, a |
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school district must certifyapply to the commissioner in |
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accordance with rules adopted by the commissioner the amount of the |
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payment due on the bondsbefore issuing bonds that will be paid with |
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state assistance that year. Until the bonds are fully paid or the
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instructional facility is sold:
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(1) a school district is entitled to continue
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receiving state assistance without reapplying to the commissioner;
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and
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(2) the guaranteed level of state and local funds per
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student per cent of tax effort applicable to the bonds may not be
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reduced below the level provided for the year in which the bonds
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were issued.
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SECTION 3. Sec. 46.005 Chapter 46, Education Code, is |
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amended to read as follows: |
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Sec. 46.005. LIMITATION ON GUARANTEED AMOUNT. (a) The |
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guaranteed amount of state and local funds for a new project that a
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district may be awarded in any state fiscal bienniumto which a |
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school district is entitled under Section 46.003 for a school
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district may not exceed the lesser of: |
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(1) the amount the actual debt service payments the |
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district makes in the biennium in which the bonds are issued; or |
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(2) the greater of: |
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(A) $____[$100,000]; or |
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(B) the product of the number of students in |
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average daily attendance in the district multiplied by $_____ |
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[$250]. |
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(b) A school district may not receive assistance for a |
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project under this subchapter for more than one year. After that |
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period, the district is entitled to assistance for that project as |
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provided by Subchapter B. |
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SECTION 4. Section 46.009(b), Chapter 46, Education Code, |
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is amended to read as follows: |
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(b) The total amount of money to which a district is |
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entitled under this subchapter is a portion of the total amount of |
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entitlement under this chapter and is not a separate item for |
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appropriation. If the amount appropriated for purposes of this |
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subchapter for a year is less than the total amount determined under |
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Subsection (a) for that year, the commissioner shall: |
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(1) transfer from the Foundation School Program to the |
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instructional facilities program the amount by which the total |
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amount determined under Subsection (a) exceeds the amount |
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appropriated; and |
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(2) if, as a result of the transfer under subsection |
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(1), there are insufficient funds in the Foundation School Program |
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to fully pay for the program as required under Sec. 42.253, the |
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commissioner shall reduce each district's foundation school fund |
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allocations and increase each district's foundation school fund |
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allocations in the following year in the manner provided by Section |
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42.253(h). |
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SECTION 5. The title of Subchapter B, Chapter 46, Education |
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Code, is amended to read as follows: |
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SUBCHAPTER B. [ASSISTANCE WITH PAYMENT OF EXISTING] DEBT TAX RELIEF |
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SECTION 6. Section 46.032, Chapter 46, Education Code, is |
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amended by amending the section title and subsections (a) and (c), |
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and adding new subsections (a-1), (a-2) and (d) to read as follows: |
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Sec. 46.032. DEBT TAX RELIEF ALLOTMENT. (a) Each school |
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district is guaranteed a specified amount per student in state and |
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local funds for each cent of tax effort to pay the principal of and |
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interest on eligible bonds. The amount of state support, subject |
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only to the maximum amount under Section 46.034, is determined by |
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the formula: |
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DTRA [EDA] = (EDGL X ADA X EDTR X 100) - (EDTR X (DPV/100)) |
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where: |
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"DTRA"["EDA"] is the amount of state funds to be allocated to |
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the district for compression of the [assistance with] existing debt |
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tax rate; |
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"EDGL" is the dollar amount guaranteed level of state and |
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local funds per student per cent of tax effort, which is the amount |
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of district tax revenue per student in average daily attendance at |
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the _____ percentile in wealth per student in average daily |
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attendance, as determined by the commissioner in cooperation with |
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the Legislative Budget Board, [$35] or a greater amount for any year |
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provided by appropriation; |
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"ADA" is the greater of the number of students in average |
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daily attendance, as determined under Section 42.005, in the |
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district or 400; |
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"EDTR" is the existing debt tax rate of the district, which is |
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determined by dividing the amount budgeted by the district for |
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payment of eligible bonds by the quotient of the district's taxable |
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value of property as determined under Subchapter M, Chapter 403, |
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Government Code, or, if applicable, under Section 42.2521, divided |
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by 100; and |
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"DPV" is the district's taxable value of property as |
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determined under Subchapter M, Chapter 403, Government Code, or, if |
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applicable, under Section 42.2521. |
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(a-1) The percentile in wealth per student described by |
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Subsection (a) for purposes of determining the dollar amount |
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guaranteed level ("EDGL") applies beginning with the 2014-2015 |
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school year. For the 2007-2008 through 2013-2014 school years, |
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EDGL is determined as follows: |
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(1) for the 2007-2008 school year, EDGL is $35; |
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(2) for the 2008-2009 school year, EDGL is determined |
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using the ___ percentile in wealth per student; |
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(3) for the 2009-2010 school year, EDGL is determined |
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using the ___ percentile in wealth per student; |
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(4) for the 2010-2011 school year, EDGL is determined |
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using the ___ percentile in wealth per student; |
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(5) for the 2011-2012 school year, EDGL is determined |
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using the ___ percentile in wealth per student; |
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(6) for the 2012-2013 school year, EDGL is determined |
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using the ___ percentile in wealth per student; |
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(7) for the 2013-2014 school year, EDGL is determined |
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using the ___ percentile in wealth per student |
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(a-2) This subsection and subsection (a-1) expire September |
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1, 2014. |
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(c) The amount budgeted by a district for payment of |
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eligible bonds may include: |
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(1) bond taxes collected in the current school year; |
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(2) bond taxes collected in a preceding school year in |
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excess of the amount necessary to pay the district's share of actual |
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debt service on bonds in that year, provided that the taxes were not |
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used to generate other state financial assistance for the district; |
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[or] |
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(3) maintenance and operations taxes collected in the |
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current school year or a preceding school year in excess of the |
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amount eligible to be used to generate other state financial |
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assistance for the district; or |
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(4) penalty and interest on delinquent taxes, interest |
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on bond tax revenue, or any other available local revenue that has |
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not otherwise been used to generate other state financial |
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assistance for the district. |
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(d) A school district must reduce the tax rate levied for |
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payment on the bonds by the percentage established by the |
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commissioner to reflect any increase in yield guaranteed under |
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subsection (a) of this section or increase in yield resulting from |
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the higher guaranty under Subchapter B over the yield received |
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prior to eligibility for Subchapter B. |
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SECTION 7. Section 46.033, Chapter 46, Education Code, is |
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amended to read as follows: |
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Sec. 46.033. ELIGIBLE BONDS. Bonds, including bonds issued |
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under Section 45.006, are eligible to be paid with state and local |
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funds under this subchapter if: |
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(1) the district made payments on the bonds during the |
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[2004-2005] final school year of the preceding state fiscal |
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biennium;or |
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(2) taxes levied to pay the principal of and interest |
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on the bonds were included in the district's audited debt service |
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collections for that school year; [and] |
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(3) [(2)] the district certifies to the commissioner |
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during the final school year of the preceding state fiscal |
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biennium, in accordance with rules adopted by the commissioner, the |
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amount of payments due on the bonds in each year of the state's next |
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fiscal biennium; or |
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(4) the district receiveddoes not receive state |
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assistance under Subchapter A for payment of the principal and |
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interest on the bonds during the final school year of the preceding |
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state fiscal biennium. |
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SECTION 8. Section 46.034, Chapter 46, Education Code, is |
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amended to read as follows: |
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Sec. 46.034. LIMITS ON ASSISTANCE. (a) The existing debt |
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tax rate ("EDTR") under Section 46.032 may not exceed $0.29$___ per |
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$100 of valuation, or a greater amount for any year provided by |
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appropriation. |
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(b) [The amount of state assistance to which a district is
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entitled under this subchapter may not exceed the amount to which
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the district would be entitled at the district's tax rate for the
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payment of eligible bonds for the final year of the preceding state
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fiscal biennium.] The commissioner shall, by rule, establish |
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limitations on the amount of an allotment or on the features and |
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cost that may be equalized through an allotment under this |
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subchapter for football stadia. A decision of the commissioner is |
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final and may not be appealed. |
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(c) If the amount required to pay the principal of and |
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interest on eligible bonds in a school year is less than the amount |
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of payments made by the district on the bonds during the final |
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[2004-2005] school year of the preceding state fiscal biennium or |
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the district's audited debt service collections for that school |
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year, the district may not receive aid in excess of the amount that, |
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when added to the district's local revenue for the school year, |
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equals the amount required to pay the principal of and interest on |
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the bonds. |
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SECTION 9. Subchapter C, Chapter 46, Education Code, is |
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amended by amending the chapter title to read as follows: |
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SUBCHAPTER C. FINANCING AND REFINANCING |
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SECTION 10. Subchapter C, Chapter 46, Education Code, is |
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amended by adding Section 46.051 to read as follows: |
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Sec. 46.051. DETERMINATION BY THE COMMISSIONER OF |
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YIELDS AND COMPRESSION RATES. (a) Prior to the beginning of each |
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school year, the commissioner, in cooperation with the Legislative |
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Budget Board, shall estimate the yields to be guaranteed under |
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Subchapters A and B. |
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(b) As required under subchapter B, the commissioner shall |
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determine the tax rate compression ratio inverse to the increase in |
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guaranteed yield over the prior year. |
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(c) Each school district shall reduce its prior bond tax |
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rate to reflect the appropriate compression. |
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SECTION 11. Section 46.061, Subchapter C, Chapter 46, |
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Education Code is amended to read as follows: |
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Sec. 46.061. AUTHORITY OF COMMISSIONER OVER REFINANCING. |
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[(a)] The commissioner by rule may provide for the payment of |
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state assistance under this chapter to refinance school district |
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debt. A refinancing may not increase the cost to the state of |
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providing the assistance. |
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[(b) The commissioner may allocate state assistance
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provided for a refinancing to Subchapter A, Subchapter B, or both,
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as appropriate.] |
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SECTION 12. REPEALERS. The following sections of Chapter |
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46 are repealed: Sec. 46.006 and Sec. 46.011. |
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SECTION 13. This Act takes effect immediately if it |
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receives a vote of two-thirds of all the members elected to each |
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house, as provided by Section 39, Article III, Texas Constitution. |
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If this Act does not receive the vote necessary for immediate |
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effect, this Act takes effect September 1, 2007. |