85S10031 CAE-D

By: King of Hemphill, Price, Guillen, H.B. No. 22

Nevárez, et al.

A BILL TO BE ENTITLED

AN ACT

relating to the extension of additional state aid for tax reduction provided to certain school districts.

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

ARTICLE 1. EXTENSION OF ADDITIONAL STATE AID FOR TAX REDUCTION

SECTION 1.01. Section 42.2516, Education Code, is amended by amending Subsections (b) and (c-1) and adding Subsections (j) and (k) to read as follows:

(b) Notwithstanding any other provision of this title, but subject to Subsections (j) and (k), a school district that imposes a maintenance and operations tax at a rate at least equal to the product of the state compression percentage multiplied by the maintenance and operations tax rate adopted by the district for the 2005 tax year is entitled to at least the amount of state revenue necessary to provide the district with the sum of:

(1) the percentage specified by Subsection (i) of the amount, as calculated under Subsection (e), of state and local revenue per student in weighted average daily attendance for maintenance and operations that the district would have received during the 2009-2010 school year under Chapter 41 and this chapter, as those chapters existed on January 1, 2009, at a maintenance and operations tax rate equal to the product of the state compression percentage for that year multiplied by the maintenance and operations tax rate adopted by the district for the 2005 tax year;

(2) the percentage specified by Subsection (i) of an amount equal to the product of $120 multiplied by the number of students in weighted average daily attendance in the district; and

(3) any amount to which the district is entitled under Section 42.106.

(c-1) Revenue generated by the portion of a district's maintenance and operations tax rate included in calculating the district's compressed tax rate under Section 42.101(a-1) and local share under Section 42.252(a-1) is included in determining the amount to which a district is entitled under this section, but may not increase the total amount of revenue per weighted student to which the district is entitled under this section. This subsection expires September 1, 2019 [2017].

(j) If the commissioner determines that a school district would receive additional state aid under this section for the 2017-2018 or 2018-2019 school year in an amount that is four percent or less of the total amount of funding the district is entitled to receive under this chapter and Chapter 41, the district is ineligible to receive additional state aid under this section for the year for which the determination is made and any subsequent school year. This subsection expires September 1, 2019.

(k) If the commissioner determines that a school district is not entitled to additional state aid under this section for the 2016-2017 or a subsequent school year, the district is ineligible to receive additional state aid under this section for any school year subsequent to the year for which the determination was made. This subsection expires September 1, 2019.

SECTION 1.02. Section 42.2518(a), Education Code, is amended to read as follows:

(a) For the 2015-2016 through 2018-2019 [and 2016-2017] school years, a school district is entitled to additional state aid to the extent that state and local revenue under this chapter and Chapter 41 is less than the state and local revenue that would have been available to the district under Chapter 41 and this chapter as those chapters existed on September 1, 2015, if the increase in the residence homestead exemption under Section 1-b(c), Article VIII, Texas Constitution, and the additional limitation on tax increases under Section 1-b(d) of that article as proposed by S.J.R. 1, 84th Legislature, Regular Session, 2015, had not occurred.

SECTION 1.03. Effective September 1, 2019, Section 42.2518(a), Education Code, is amended to read as follows:

(a) Beginning with the 2019-2020 school year [For the 2015-2016 and 2016-2017 school years], a school district is entitled to additional state aid to the extent that state and local revenue under this chapter and Chapter 41 is less than the state and local revenue that would have been available to the district under Chapter 41 and this chapter as those chapters existed on September 1, 2015, excluding any state aid that would have been provided under former Section 42.2516, if the increase in the residence homestead exemption under Section 1-b(c), Article VIII, Texas Constitution, and the additional limitation on tax increases under Section 1-b(d) of that article as proposed by S.J.R. 1, 84th Legislature, Regular Session, 2015, had not occurred.

SECTION 1.04. Notwithstanding Chapter 4 (S.B. 1), Acts of the 82nd Legislature, 1st Called Session, 2011, the following provisions are effective September 1, 2019:

(1) Section 57.03, Chapter 4 (S.B. 1), Acts of the 82nd Legislature, 1st Called Session, 2011, which amended Section 12.106(a), Education Code;

(2) Section 57.18, Chapter 4 (S.B. 1), Acts of the 82nd Legislature, 1st Called Session, 2011, which amended the heading to Section 42.2516, Education Code;

(3) Section 57.19, Chapter 4 (S.B. 1), Acts of the 82nd Legislature, 1st Called Session, 2011, which amended Section 42.2516(a), Education Code;

(4) Section 57.23, Chapter 4 (S.B. 1), Acts of the 82nd Legislature, 1st Called Session, 2011, which amended Section 42.253(h), Education Code;

(5) Section 57.29, Chapter 4 (S.B. 1), Acts of the 82nd Legislature, 1st Called Session, 2011, which amended Section 26.08(i), Tax Code;

(6) Section 57.32(a), Chapter 4 (S.B. 1), Acts of the 82nd Legislature, 1st Called Session, 2011, which repealed various provisions of the Education Code; and

(7) Section 57.32(b), Chapter 4 (S.B. 1), Acts of the 82nd Legislature, 1st Called Session, 2011, which repealed Sections 26.08(i-1) and (j), Tax Code.

SECTION 1.05. Section 42.2518(e), Education Code, is repealed.

SECTION 1.06. Section 18, Chapter 465 (S.B. 1), Acts of the 84th Legislature, Regular Session, 2015, which added Section 42.2518, Education Code, effective September 1, 2017, is repealed.

ARTICLE 2. PROVISION OF ADDITIONAL STATE AID FOR TAX REDUCTION

SECTION 2.01. Subchapter E, Chapter 42, Education Code, is amended by adding Section 42.25162 to read as follows:

Sec. 42.25162. ADDITIONAL STATE AID FOR CERTAIN SCHOOL DISTRICTS. (a) This section applies only to a school district that received for the 2016-2017 school year additional state aid under Section 42.2516.

(b) Except as provided by Subsection (c) or (d), a school district to which this section applies is entitled to the additional state aid for the 2017-2018 and 2018-2019 school years that would have been provided to the district for those school years under Section 42.2516, as that section existed on January 1, 2017, based on the percentage reduction for purposes of former Section 42.2516(i) established by appropriation for the 2016-2017 school year.

(c) If the commissioner determines that a school district would receive additional state aid under this section for the 2017-2018 or 2018-2019 school year in an amount that is four percent or less of the total amount of funding the district is entitled to receive under this chapter and Chapter 41, the district is ineligible to receive additional state aid under this section for the year for which the determination is made and any subsequent school year.

(d) If the commissioner determines that a school district is not entitled to additional state aid under this section for the 2017-2018 school year, the district is ineligible to receive additional state aid under this section for the 2018-2019 school year.

(e) Additional funding to which a school district is entitled under Section 42.2523 or 42.2524 is in addition to the amount of funding to which the district is entitled under this section.

(f) For purposes of Section 26.08(i), Tax Code, state funds distributed to a district under this section are included.

(g) The commissioner shall adopt rules necessary to implement this section.

(h) This section expires September 1, 2019.

SECTION 2.02. Section 42.2518(a), Education Code, as effective September 1, 2017, is amended to read as follows:

(a) Beginning with the 2017-2018 school year, a school district is entitled to additional state aid to the extent that state and local revenue under this chapter and Chapter 41 is less than the state and local revenue that would have been available to the district under Chapter 41 and this chapter as those chapters existed on September 1, 2015, [excluding any state aid that would have been provided under former Section 42.2516,] if the increase in the residence homestead exemption under Section 1-b(c), Article VIII, Texas Constitution, and the additional limitation on tax increases under Section 1-b(d) of that article as proposed by S.J.R. 1, 84th Legislature, Regular Session, 2015, had not occurred.

SECTION 2.03. Effective September 1, 2019, Section 42.2518(a), Education Code, as effective September 1, 2017, is amended to read as follows:

(a) Beginning with the 2019-2020 [2017-2018] school year, a school district is entitled to additional state aid to the extent that state and local revenue under this chapter and Chapter 41 is less than the state and local revenue that would have been available to the district under Chapter 41 and this chapter as those chapters existed on September 1, 2015, excluding any state aid that would have been provided under former Section 42.25162 [42.2516], if the increase in the residence homestead exemption under Section 1-b(c), Article VIII, Texas Constitution, and the additional limitation on tax increases under Section 1-b(d) of that article as proposed by S.J.R. 1, 84th Legislature, Regular Session, 2015, had not occurred.

ARTICLE 3. EFFECTIVE DATE

SECTION 3.01. (a) Except as otherwise provided by this subsection, 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 takes effect immediately, Article 2 of this Act has no effect.

(b) If this Act does not receive the vote necessary for immediate effect, this Act, except as otherwise provided by this subsection, takes effect on the 91st day after the last day of the legislative session. If this Act takes effect on the 91st day after the last day of the legislative session, Article 1 of this Act has no effect.