AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
S.B. 1223 provides equity for school districts along the Texas coast by allowing them to receive allotments from the Texas Education Agency for repayment of the high costs of wind and flood insurance premiums. These allotments will be given at the discretion of the commissioner of education only when funds are available.
It is widely believed that school districts along the Texas coast pay disproportionately high property insurance premiums when compared to non-coastal districts. The goal of this legislation is to help offset that inequity.
As proposed, S.B. 1223 amends current law relating to an allotment under the public school finance system for the cost of windstorm and hail insurance.
RULEMAKING AUTHORITY
Rulemaking authority is expressly granted to the commissioner of education in SECTION 1 (Section 42.161, Education Code) of this bill.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Subchapter C, Chapter 42, Education Code, by adding Section 42.161, as follows:
Sec. 42.161. WINDSTORM AND HAIL INSURANCE ALLOTMENT. (a) Entitles a school district that contracts for windstorm and hail insurance to receive an allotment equal to the total amount required to be paid for the insurance, not to exceed an amount specified by commissioner of education (commissioner) rule.
(b) Authorizes the commissioner to provide the allotment under this section only if funds are specifically appropriated for that purpose or the commissioner determines that the amount appropriated for purposes of the Foundation School Program exceeds the amount to which school districts are entitled under this chapter and the excess funds are authorized to be used for that purpose.
SECTION 2. Effective date: September 1, 2013.