83R6938 GCB-F

By: Pitts H.B. No. 1027

A BILL TO BE ENTITLED

AN ACT

relating to the established schedule of payments from the foundation school fund of the yearly entitlement of certain school districts; making an appropriation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 42.259, Education Code, is amended by amending Subsections (c), (d), and (f) and adding Subsections (c-1) and (d-1) to read as follows:

(c) Payments from the foundation school fund to each category 2 school district shall be made as follows:

(1) 22 percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of September of a fiscal year;

(2) 18 percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of October;

(3) 9.5 percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of November;

(4) 7.5 percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of April;

(5) five percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of May;

(6) 10 percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of June;

(7) 13 percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of July; and

(8) 15 percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of August [after the 5th day of September and not later than the 10th day of September of the calendar year following the calendar year of the payment made under Subdivision (1)].

(c-1) Notwithstanding Subsection (c)(8), for the state fiscal year ending August 31, 2013, the installment described by that subdivision shall be paid on or before the 30th day of August, 2013. This subsection expires August 31, 2013.

(d) Payments from the foundation school fund to each category 3 school district shall be made as follows:

(1) 45 percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of September of a fiscal year;

(2) 35 percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of October; and

(3) 20 percent of the yearly entitlement of the district shall be paid in an installment to be made on or before the 25th day of August [after the 5th day of September and not later than the 10th day of September of the calendar year following the calendar year of the payment made under Subdivision (1)].

(d-1) Notwithstanding Subsection (d)(3), for the state fiscal year ending August 31, 2013, the installment described by that subdivision shall be paid on or before the 30th day of August, 2013. This subsection expires August 31, 2013.

(f) Previously [Except as provided by Subsection (c)(8) or (d)(3), any previously] unpaid additional funds from prior fiscal years owed to a district shall be paid to the district together with the September payment of the current fiscal year entitlement.

SECTION 2. Section 466.355(c), Government Code, is amended to read as follows:

(c) Each August the comptroller shall:

(1) estimate the amount to be transferred to the foundation school fund on or before September 15; and

(2) notwithstanding Subsection (b)(4), transfer the amount estimated in Subdivision (1) to the foundation school fund before August installment payments are made under Section 42.259, Education Code [25].

SECTION 3. There is appropriated to the Texas Education Agency from the Foundation School Fund No. 193 $1,750,000,000 in fiscal year 2013 for payment of the installment to be paid on or before August 30, 2013, as provided by Sections 42.259(c-1) and (d-1), Education Code, as added by this Act.

SECTION 4. In Rider 3, page III-7, Chapter 1355 (H.B. 1), Acts of the 82nd Legislature, Regular Session, 2011 (the General Appropriations Act), the amount specified as the sum-certain appropriation to the Foundation School Program in fiscal year 2013 is increased by $1,750,000,000.

SECTION 5. The changes made by this Act to Section 42.259, Education Code, apply only to a payment from the foundation school fund that is made on or after the effective date of this Act. A payment to a school district from the foundation school fund that is made before that date is governed by Section 42.259, Education Code, as it existed before amendment by this Act, and the former law is continued in effect for that purpose.

SECTION 6. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect on the 91st day after the last day of the legislative session.