82R1383 SMH/KKA-D
 
  By: Davis S.B. No. 112
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to public school finance and certain limitations on the ad
  valorem tax rate of a school district.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 41.002(a), Education Code, is amended to
  read as follows:
         (a)  A school district may not have a wealth per student that
  exceeds:
               (1)  the wealth per student that generates the amount
  of maintenance and operations tax revenue per weighted student
  available to a district with maintenance and operations tax revenue
  per cent of tax effort equal to the maximum amount provided per cent
  under Section 42.101, for the district's maintenance and operations
  tax effort equal to or less than the rate equal to the product of the
  state compression percentage, as determined under Section 42.2516,
  multiplied by the maintenance and operations tax rate adopted by
  the district for the 2005 tax year;
               (2)  the wealth per student that generates the amount
  of maintenance and operations tax revenue per weighted student
  available to the Austin Independent School District, as determined
  by the commissioner in cooperation with the Legislative Budget
  Board, for the first six cents by which the district's maintenance
  and operations tax rate exceeds the rate equal to the product of the
  state compression percentage, as determined under Section 42.2516,
  multiplied by the maintenance and operations tax rate adopted by
  the district for the 2005 tax year, subject to Section 41.093(b-1);
  or
               (3)  the wealth per student that generates the greater
  of the amount of maintenance and operations tax revenue per
  weighted student available to the Austin Independent School
  District, as determined by the commissioner in cooperation with the
  Legislative Budget Board, or the amount of district tax revenue per
  weighted student used for purposes of this subdivision in the
  preceding school year [$319,500], for the district's maintenance
  and operations tax effort that exceeds the first six cents by which
  the district's maintenance and operations tax effort exceeds the
  rate equal to the product of the state compression percentage, as
  determined under Section 42.2516, multiplied by the maintenance and
  operations tax rate adopted by the district for the 2005 tax year.
         SECTION 2.  Section 41.093(b-1), Education Code, is amended
  to read as follows:
         (b-1)  If the guaranteed level of state and local funds per
  weighted student per cent of tax effort under Section 42.302(a-1)
  [42.302(a-1)(1)] for which state funds are appropriated for a
  school year is an amount at least equal to the amount of revenue per
  weighted student per cent of tax effort available to the Austin
  Independent School District, as determined by the commissioner in
  cooperation with the Legislative Budget Board, the commissioner, in
  computing the amounts described by Subsections (a)(1) and (2) and
  determining the cost of an attendance credit, shall exclude
  maintenance and operations tax revenue resulting from the first six
  cents by which a district's maintenance and operations tax rate
  exceeds the rate equal to the product of the state compression
  percentage, as determined under Section 42.2516, multiplied by the
  maintenance and operations tax rate adopted by the district for the
  2005 tax year.
         SECTION 3.  Section 42.2522(e), Education Code, is amended
  to read as follows:
         (e)  The commissioner shall notify school districts as soon
  as practicable as to the availability of funds under this section.
  [For purposes of computing a rollback tax rate under Section 26.08,
  Tax Code, a district shall adjust the district's tax rate limit to
  reflect assistance received under this section.]
         SECTION 4.  Sections 42.302(a-1) and (a-2), Education Code,
  are amended to read as follows:
         (a-1)  In this section, "wealth per student" has the meaning
  assigned by Section 41.001.  For purposes of Subsection (a), the
  dollar amount guaranteed level of state and local funds per
  weighted student per cent of tax effort ("GL") for a school district
  is[:
               [(1)]  the greater of the amount of district tax
  revenue per weighted student per cent of tax effort that would be
  available to the Austin Independent School District, as determined
  by the commissioner in cooperation with the Legislative Budget
  Board, if the reduction of the limitation on tax increases as
  provided by Section 11.26(a-1), (a-2), or (a-3), Tax Code, did not
  apply, or the amount of district tax revenue per weighted student
  per cent of tax effort used for purposes of this subdivision in the
  preceding school year[, for the first six cents by which the
  district's maintenance and operations tax rate exceeds the rate
  equal to the product of the state compression percentage, as
  determined under Section 42.2516, multiplied by the maintenance and
  operations tax rate adopted by the district for the 2005 tax year;
  and
               [(2)     $31.95, for the district's maintenance and
  operations tax effort that exceeds the amount of tax effort
  described by Subdivision (1)].
         (a-2)  The limitation on district enrichment tax rate
  ("DTR") under Section 42.303 does not apply to the first six cents
  by which the district's maintenance and operations tax rate exceeds
  the rate equal to the product of the state compression percentage,
  as determined under Section 42.2516, multiplied by the maintenance
  and operations tax rate adopted by the district for the 2005 tax
  year [effort described by Subsection (a-1)(1)].
         SECTION 5.  Sections 44.004(c) and (i), Education Code, are
  amended to read as follows:
         (c)  The notice of public meeting to discuss and adopt the
  budget and the proposed tax rate may not be smaller than one-quarter
  page of a standard-size or a tabloid-size newspaper, and the
  headline on the notice must be in 18-point or larger type.  Subject
  to Subsection (d), the notice must:
               (1)  contain a statement in the following form:
  "NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
         "The (name of school district) will hold a public meeting at
  (time, date, year) in (name of room, building, physical location,
  city, state).  The purpose of this meeting is to discuss the school
  district's budget that will determine the tax rate that will be
  adopted.  Public participation in the discussion is invited."  The
  statement of the purpose of the meeting must be in bold type.  In
  reduced type, the notice must state: "The tax rate that is
  ultimately adopted at this meeting or at a separate meeting at a
  later date may not exceed the proposed rate shown below unless the
  district publishes a revised notice containing the same information
  and comparisons set out below and holds another public meeting to
  discuss the revised notice.";
               (2)  contain a section entitled "Comparison of Proposed
  Budget with Last Year's Budget," which must show the difference,
  expressed as a percent increase or decrease, as applicable, in the
  amounts budgeted for the preceding fiscal year and the amount
  budgeted for the fiscal year that begins in the current tax year for
  each of the following:
                     (A)  maintenance and operations;
                     (B)  debt service; and
                     (C)  total expenditures;
               (3)  contain a section entitled "Total Appraised Value
  and Total Taxable Value," which must show the total appraised value
  and the total taxable value of all property and the total appraised
  value and the total taxable value of new property taxable by the
  district in the preceding tax year and the current tax year as
  calculated under Section 26.04, Tax Code;
               (4)  contain a statement of the total amount of the
  outstanding and unpaid bonded indebtedness of the school district;
               (5)  contain a section entitled "Comparison of Proposed
  Rates with Last Year's Rates," which must:
                     (A)  show in rows the tax rates described by
  Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
  property, for columns entitled "Maintenance & Operations,"
  "Interest & Sinking Fund," and "Total," which is the sum of
  "Maintenance & Operations" and "Interest & Sinking Fund":
                           (i)  the school district's "Last Year's
  Rate";
                           (ii)  the "Rate to Maintain Same Level of
  Maintenance & Operations Revenue & Pay Debt Service," which:
                                 (a)  in the case of "Maintenance &
  Operations," is the tax rate that, when applied to the current
  taxable value for the district, as certified by the chief appraiser
  under Section 26.01, Tax Code, and as adjusted to reflect changes
  made by the chief appraiser as of the time the notice is prepared,
  would impose taxes in an amount that, when added to state funds to
  be distributed to the district under Chapter 42, would provide the
  same amount of maintenance and operations taxes and state funds
  distributed under Chapter 42 per student in average daily
  attendance for the applicable school year that was available to the
  district in the preceding school year; and
                                 (b)  in the case of "Interest & Sinking
  Fund," is the tax rate that, when applied to the current taxable
  value for the district, as certified by the chief appraiser under
  Section 26.01, Tax Code, and as adjusted to reflect changes made by
  the chief appraiser as of the time the notice is prepared, and when
  multiplied by the district's anticipated collection rate, would
  impose taxes in an amount that, when added to state funds to be
  distributed to the district under Chapter 46 and any excess taxes
  collected to service the district's debt during the preceding tax
  year but not used for that purpose during that year, would provide
  the amount required to service the district's debt; and
                           (iii)  the "Proposed Rate";
                     (B)  contain fourth and fifth columns aligned with
  the columns required by Paragraph (A) that show, for each row
  required by Paragraph (A):
                           (i)  the "Local Revenue per Student," which
  is computed by multiplying the district's total taxable value of
  property, as certified by the chief appraiser for the applicable
  school year under Section 26.01, Tax Code, and as adjusted to
  reflect changes made by the chief appraiser as of the time the
  notice is prepared, by the total tax rate, and dividing the product
  by the number of students in average daily attendance in the
  district for the applicable school year; and
                           (ii)  the "State Revenue per Student," which
  is computed by determining the amount of state aid received or to be
  received by the district under Chapters 42, 43, and 46 and dividing
  that amount by the number of students in average daily attendance in
  the district for the applicable school year; and
                     (C)  contain an asterisk after each calculation
  for "Interest & Sinking Fund" and a footnote to the section that, in
  reduced type, states "The Interest & Sinking Fund tax revenue is
  used to pay for bonded indebtedness on construction, equipment, or
  both.  The bonds, and the tax rate necessary to pay those bonds,
  were approved by the voters of this district.";
               (6)  contain a section entitled "Comparison of Proposed
  Levy with Last Year's Levy on Average Residence," which must:
                     (A)  show in rows the information described by
  Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
  entitled "Last Year" and "This Year":
                           (i)  "Average Market Value of Residences,"
  determined using the same group of residences for each year;
                           (ii)  "Average Taxable Value of Residences,"
  determined after taking into account the limitation on the
  appraised value of residences under Section 23.23, Tax Code, and
  after subtracting all homestead exemptions applicable in each year,
  other than exemptions available only to disabled persons or persons
  65 years of age or older or their surviving spouses, and using the
  same group of residences for each year;
                           (iii)  "Last Year's Rate Versus Proposed
  Rate per $100 Value"; and
                           (iv)  "Taxes Due on Average Residence,"
  determined using the same group of residences for each year; and
                     (B)  contain the following information: "Increase
  (Decrease) in Taxes" expressed in dollars and cents, which is
  computed by subtracting the "Taxes Due on Average Residence" for
  the preceding tax year from the "Taxes Due on Average Residence" for
  the current tax year;
               (7)  contain the following statement in bold print:
  "Under state law, the dollar amount of school taxes imposed on the
  residence of a person 65 years of age or older or of the surviving
  spouse of such a person, if the surviving spouse was 55 years of age
  or older when the person died, may not be increased above the amount
  paid in the first year after the person turned 65, regardless of
  changes in tax rate or property value.";
               (8)  contain the following statement in bold print:
  "Notice of Maximum Maintenance Tax [Rollback] Rate: The highest
  maintenance tax rate the district can adopt before requiring voter
  approval at an election is (the maximum maintenance tax rate the
  district may adopt before requiring voter approval at an election
  under Section 45.003 [school district rollback rate determined
  under Section 26.08, Tax Code]).  [This election will be
  automatically held if the district adopts a rate in excess of the
  rollback rate of (the school district rollback rate).]"; and
               (9)  contain a section entitled "Fund Balances," which
  must include the estimated amount of interest and sinking fund
  balances and the estimated amount of maintenance and operation or
  general fund balances remaining at the end of the current fiscal
  year that are not encumbered with or by corresponding debt
  obligation, less estimated funds necessary for the operation of the
  district before the receipt of the first payment under Chapter 42 in
  the succeeding school year.
         (i)  A school district that uses a certified estimate, as
  authorized by Subsection (h), may adopt a budget at the public
  meeting designated in the notice prepared using the estimate, but
  the district may not adopt a tax rate before the district receives
  the certified appraisal roll for the district required by Section
  26.01(a), Tax Code. After receipt of the certified appraisal roll,
  the district must publish a revised notice and hold another public
  meeting before the district may adopt a tax rate that exceeds[:
               [(1)]  the rate proposed in the notice prepared using
  the estimate[; or
               [(2)     the district's rollback rate determined under
  Section 26.08, Tax Code, using the certified appraisal roll].
         SECTION 6.  Section 45.003, Education Code, is amended by
  adding Subsection (g) to read as follows:
         (g)  Notwithstanding any other law, a district may not adopt
  a maintenance tax rate for the current tax year that exceeds the sum
  of:
               (1)  the district's maintenance tax rate for the
  preceding tax year; and
               (2)  the rate of four cents per $100 of taxable value in
  the district.
         SECTION 7.  Section 45.261(e), Education Code, is amended to
  read as follows:
         (e)  Any part of a school district's tax rate attributable to
  producing revenue for purposes of Subsection (c)(1) is considered
  part of the district's[:
               [(1)     current debt rate for purposes of computing a
  rollback tax rate under Section 26.08, Tax Code; and
         [(2)]  interest and sinking fund tax rate.
         SECTION 8.  Section 3.005(a), Election Code, is amended to
  read as follows:
         (a)  Except as provided by Subsection [Subsections] (c) [and
  (d)], an election ordered by an authority of a political
  subdivision shall be ordered not later than the 62nd day before
  election day.
         SECTION 9.  Section 4.008(a), Election Code, is amended to
  read as follows:
         (a)  The [Except as provided by Subsection (b), the]
  governing body of a political subdivision, other than a county,
  that orders an election shall deliver notice of the election to the
  county clerk and voter registrar of each county in which the
  political subdivision is located not later than the 60th day before
  election day.
         SECTION 10.  Section 26.05(g), Tax Code, is amended to read
  as follows:
         (g)  Notwithstanding Subsection (a), the governing body of a
  school district that elects to adopt a tax rate before the adoption
  of a budget for the fiscal year that begins in the current tax year
  may adopt a tax rate for the current tax year before receipt of the
  certified appraisal roll for the school district if the chief
  appraiser of the appraisal district in which the school district
  participates has certified to the assessor for the school district
  an estimate of the taxable value of property in the school district
  as provided by Section 26.01(e).  If a school district adopts a tax
  rate under this subsection, the effective tax rate [and the
  rollback tax rate] of the district shall be calculated based on the
  certified estimate of taxable value.
         SECTION 11.  (a) Sections 3.005(d) and 4.008(b), Election
  Code, are repealed.
         (b)  Section 26.08, Tax Code, is repealed.
         SECTION 12.  (a)  The changes in law made by Sections 3, 5, 6,
  7, 8, 9, 10, and 11 of this Act apply to the ad valorem tax rate of a
  school district beginning with the 2011 tax year, except as
  provided by Subsection (b) of this section.
         (b)  If the governing body of a school district adopted an ad
  valorem tax rate for the school district for the 2011 tax year
  before the effective date of Sections 3, 5, 6, 7, 8, 9, 10, and 11 of
  this Act, the changes in law made by Sections 3, 5, 6, 7, 8, 9, 10,
  and 11 of this Act apply to the ad valorem tax rate of that school
  district beginning with the 2012 tax year, and the law in effect
  when the tax rate was adopted applies to the 2011 tax year with
  respect to that school district.
         SECTION 13.  (a) Except as provided by Subsection (b) of
  this section:
               (1)  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; and
               (2)  if this Act does not receive the vote necessary for
  immediate effect, this Act takes effect September 1, 2011.
         (b)  Sections 1, 2, and 4 of this Act take effect September 1,
  2011.