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A BILL TO BE ENTITLED
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AN ACT
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relating to the repeal of provisions requiring school districts to |
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reduce their wealth per student to the equalized wealth level. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 12.013(b), Education Code, is amended to |
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read as follows: |
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(b) A home-rule school district is subject to: |
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(1) a provision of this title establishing a criminal |
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offense; |
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(2) a provision of this title relating to limitations |
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on liability; and |
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(3) a prohibition, restriction, or requirement, as |
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applicable, imposed by this title or a rule adopted under this |
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title, relating to: |
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(A) the Public Education Information Management |
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System (PEIMS) to the extent necessary to monitor compliance with |
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this subchapter as determined by the commissioner; |
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(B) educator certification under Chapter 21 and |
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educator rights under Sections 21.407, 21.408, and 22.001; |
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(C) criminal history records under Subchapter C, |
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Chapter 22; |
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(D) student admissions under Section 25.001; |
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(E) school attendance under Sections 25.085, |
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25.086, and 25.087; |
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(F) inter-district or inter-county transfers of |
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students under Subchapter B, Chapter 25; |
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(G) elementary class size limits under Section |
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25.112, in the case of any campus in the district that fails to |
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satisfy any standard under Section 39.054(e); |
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(H) high school graduation under Section 28.025; |
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(I) special education programs under Subchapter |
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A, Chapter 29; |
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(J) bilingual education under Subchapter B, |
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Chapter 29; |
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(K) prekindergarten programs under Subchapter E, |
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Chapter 29; |
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(L) safety provisions relating to the |
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transportation of students under Sections 34.002, 34.003, 34.004, |
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and 34.008; |
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(M) computation and distribution of state aid |
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under Chapters 31, 42, and 43; |
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(N) extracurricular activities under Section |
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33.081; |
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(O) health and safety under Chapter 38; |
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(P) public school accountability under |
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Subchapters B, C, D, and J, Chapter 39, and Chapter 39A; |
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(Q) [equalized wealth under Chapter 41;
|
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[(R)] a bond or other obligation or tax rate |
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under Chapters 42, 43, and 45; and |
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(R) [(S)] purchasing under Chapter 44. |
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SECTION 2. Section 12.029(b), Education Code, is amended to |
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read as follows: |
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(b) If [Except as provided by Subchapter H, Chapter 41, if] |
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two or more school districts having different status, one of which |
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is home-rule school district status, consolidate into a single |
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district, the petition under Section 13.003 initiating the |
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consolidation must state the status for the consolidated district. |
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The ballot shall be printed to permit voting for or against the |
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proposition: "Consolidation of (names of school districts) into a |
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single school district governed as (status of school district |
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specified in the petition)." |
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SECTION 3. Section 13.054(i), Education Code, is amended to |
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read as follows: |
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(i) The funding provided under Subsection (f), (g), or (h) |
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is in addition to other funding the district receives through other |
|
provisions of this code, including funding the district receives |
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under Chapter [Chapters 41 and] 42. |
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SECTION 4. Section 21.410(h), Education Code, is amended to |
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read as follows: |
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(h) A grant a school district receives under this section is |
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in addition to any funding the district receives under Chapter 42. |
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The commissioner shall distribute funds under this section with the |
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Foundation School Program payment to which the district is entitled |
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as soon as practicable after the end of the school year as |
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determined by the commissioner. [A district to which Chapter 41
|
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applies is entitled to the grants paid under this section.] The |
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commissioner shall determine the timing of the distribution of |
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grants to a district that does not receive Foundation School |
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Program payments. |
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SECTION 5. Section 21.411(h), Education Code, is amended to |
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read as follows: |
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(h) A grant a school district receives under this section is |
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in addition to any funding the district receives under Chapter 42. |
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The commissioner shall distribute funds under this section with the |
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Foundation School Program payment to which the district is entitled |
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as soon as practicable after the end of the school year as |
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determined by the commissioner. [A district to which Chapter 41
|
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applies is entitled to the grants paid under this section.] The |
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commissioner shall determine the timing of the distribution of |
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grants to a district that does not receive Foundation School |
|
Program payments. |
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SECTION 6. Section 21.412(h), Education Code, is amended to |
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read as follows: |
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(h) A grant a school district receives under this section is |
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in addition to any funding the district receives under Chapter 42. |
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The commissioner shall distribute funds under this section with the |
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Foundation School Program payment to which the district is entitled |
|
as soon as practicable after the end of the school year as |
|
determined by the commissioner. [A district to which Chapter 41
|
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applies is entitled to the grants paid under this section.] The |
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commissioner shall determine the timing of the distribution of |
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grants to a district that does not receive Foundation School |
|
Program payments. |
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SECTION 7. Section 21.413(h), Education Code, is amended to |
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read as follows: |
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(h) A grant a school district receives under this section is |
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in addition to any funding the district receives under Chapter 42. |
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The commissioner shall distribute funds under this section with the |
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Foundation School Program payment to which the district is entitled |
|
as soon as practicable after the end of the school year as |
|
determined by the commissioner. [A district to which Chapter 41
|
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applies is entitled to the grants paid under this section.] The |
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commissioner shall determine the timing of the distribution of |
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grants to a district that does not receive Foundation School |
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Program payments. |
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SECTION 8. Section 25.081(f), Education Code, as added by |
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Chapter 851 (H.B. 2442), Acts of the 85th Legislature, Regular |
|
Session, 2017, is amended to read as follows: |
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(f) The commissioner may proportionally reduce the amount |
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of funding a district receives under Chapter [41,] 42[,] or 46 and |
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the average daily attendance calculation for the district if the |
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district operates on a calendar that provides fewer minutes of |
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operation than required under Subsection (a). |
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SECTION 9. Section 29.087(j), Education Code, is amended to |
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read as follows: |
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(j) For purposes of funding under Chapters [41,] 42[,] and |
|
46, a student attending a program authorized by this section may be |
|
counted in attendance only for the actual number of hours each |
|
school day the student attends the program, in accordance with |
|
Section 25.081. |
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SECTION 10. Section 29.203(b), Education Code, is amended |
|
to read as follows: |
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(b) A school district is entitled to the allotment provided |
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by Section 42.157 for each eligible student using a public |
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education grant. [If the district has a wealth per student greater
|
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than the guaranteed wealth level but less than the equalized wealth
|
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level, a school district is entitled under rules adopted by the
|
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commissioner to additional state aid in an amount equal to the
|
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difference between the cost to the district of providing services
|
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to a student using a public education grant and the sum of the state
|
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aid received because of the allotment under Section 42.157 and
|
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money from the available school fund attributable to the student.] |
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SECTION 11. Section 37.0061, Education Code, is amended to |
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read as follows: |
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Sec. 37.0061. FUNDING FOR ALTERNATIVE EDUCATION SERVICES IN |
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JUVENILE RESIDENTIAL FACILITIES. A school district that provides |
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education services to pre-adjudicated and post-adjudicated |
|
students who are confined by court order in a juvenile residential |
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facility operated by a juvenile board is entitled to count such |
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students in the district's average daily attendance for purposes of |
|
receipt of state funds under the Foundation School Program. [If the
|
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district has a wealth per student greater than the guaranteed
|
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wealth level but less than the equalized wealth level, the district
|
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in which the student is enrolled on the date a court orders the
|
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student to be confined to a juvenile residential facility shall
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transfer to the district providing education services an amount
|
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equal to the difference between the average Foundation School
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Program costs per student of the district providing education
|
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services and the sum of the state aid and the money from the
|
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available school fund received by the district that is attributable
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to the student for the portion of the school year for which the
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district provides education services to the student.] |
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SECTION 12. Section 42.009(b), Education Code, is amended |
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to read as follows: |
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(b) In making the determinations regarding funding levels |
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required by Subsection (a), the commissioner shall: |
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(1) make adjustments as necessary to reflect changes |
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in a school district's maintenance and operations tax rate; and |
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(2) [for a district required to take action under
|
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Chapter 41 to reduce its wealth per student to the equalized wealth
|
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level, base the determinations on the district's net funding levels
|
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after deducting any amounts required to be expended by the district
|
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to comply with Chapter 41; and
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[(3)] determine a district's weighted average daily |
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attendance in accordance with this chapter as it existed on January |
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1, 2011. |
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SECTION 13. Section 42.158(e), Education Code, is amended |
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to read as follows: |
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(e) [A school district that is required to take action under
|
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Chapter 41 to reduce its wealth per student to the equalized wealth
|
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level is entitled to a credit, in the amount of the allotments to
|
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which the district is entitled under this section, against the
|
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total amount required under Section 41.093 for the district to
|
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purchase attendance credits.] A school district that is otherwise |
|
ineligible for state aid under this chapter is entitled to receive |
|
allotments under this section. |
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SECTION 14. Section 42.160(b), Education Code, is amended |
|
to read as follows: |
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(b) [A school district that is required to take action under
|
|
Chapter 41 to reduce its wealth per student to the equalized wealth
|
|
level is entitled to a credit, in the amount of the allotments to
|
|
which the district is entitled under this section, against the
|
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total amount required under Section 41.093 for the district to
|
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purchase attendance credits.] A school district that is otherwise |
|
ineligible for state aid under this chapter is entitled to receive |
|
allotments under this section. |
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SECTION 15. Section 42.2511(b), Education Code, is amended |
|
to read as follows: |
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(b) Notwithstanding any other provision of this chapter [or
|
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Chapter 41], a school district subject to this section is entitled |
|
to receive for each student in average daily attendance at the |
|
campus described by Subsection (a) an amount equivalent to the |
|
difference, if the difference results in increased funding, |
|
between: |
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(1) the amount described by Section 12.106; and |
|
(2) the amount to which the district would be entitled |
|
under this chapter. |
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SECTION 16. Section 42.2518(a), Education Code, is amended |
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to read as follows: |
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(a) Beginning with the 2017-2018 school year, a school |
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district is entitled to additional state aid to the extent that |
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state and local revenue under this chapter [and Chapter 41] is less |
|
than the state and local revenue that would have been available to |
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the district under [Chapter 41 and] this chapter as it [those
|
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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 17. Section 42.2521(a), Education Code, is amended |
|
to read as follows: |
|
(a) For purposes of Chapter [Chapters 41 and] 46 and this |
|
chapter, and to the extent money specifically authorized to be used |
|
under this section is available, the commissioner shall adjust the |
|
taxable value of property in a school district that, due to factors |
|
beyond the control of the board of trustees, experiences a rapid |
|
decline in the tax base used in calculating taxable values in excess |
|
of four percent of the tax base used in the preceding year. |
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SECTION 18. Section 42.2523(a), Education Code, is amended |
|
to read as follows: |
|
(a) For purposes of Chapter [Chapters 41 and] 46 and this |
|
chapter, the commissioner shall adjust the taxable value of |
|
property of a school district all or part of which is located in an |
|
area declared a disaster area by the governor under Chapter 418, |
|
Government Code, as necessary to ensure that the district receives |
|
funding based as soon as possible on property values as affected by |
|
the disaster. |
|
SECTION 19. Sections 42.2524(c) and (d), Education Code, |
|
are amended to read as follows: |
|
(c) The commissioner may provide reimbursement under this |
|
section only if funds are available for that purpose [as follows:
|
|
[(1)
reimbursement for a school district not required
|
|
to take action under Chapter 41 may be provided] from: |
|
(1) [(A)] amounts appropriated for that purpose, |
|
including amounts appropriated for those districts for that purpose |
|
to the disaster contingency fund established under Section 418.073, |
|
Government Code; or |
|
(2) [(B)] Foundation School Program funds available |
|
for that purpose, based on a determination by the commissioner that |
|
the amount appropriated for the Foundation School Program, |
|
including the facilities component as provided by Chapter 46, |
|
exceeds the amount to which districts are entitled under this |
|
chapter and Chapter 46[; and
|
|
[(2)
reimbursement for a school district required to
|
|
take action under Chapter 41 may be provided from funds described by
|
|
Subdivision (1)(B) if funds remain available after fully
|
|
reimbursing each school district described by Subdivision (1) for
|
|
its disaster remediation costs]. |
|
(d) If the amount of money available for purposes of |
|
reimbursing school districts [not required to take action under
|
|
Chapter 41] is not sufficient to fully reimburse each district's |
|
disaster remediation costs, the commissioner shall reduce the |
|
amount of assistance provided to each of those districts |
|
proportionately. [If the amount of money available for purposes of
|
|
reimbursing school districts required to take action under Chapter
|
|
41 is not sufficient to fully reimburse each district's disaster
|
|
remediation costs, the commissioner shall reduce the amount of
|
|
assistance provided to each of those districts proportionately.] |
|
SECTION 20. Section 42.253(h), Education Code, is amended |
|
to read as follows: |
|
(h) If the amount appropriated for the Foundation School |
|
Program for the second year of a state fiscal biennium is less than |
|
the amount to which school districts and open-enrollment charter |
|
schools are entitled for that year, the commissioner shall certify |
|
the amount of the difference to the Legislative Budget Board not |
|
later than January 1 of the second year of the state fiscal |
|
biennium. The Legislative Budget Board shall propose to the |
|
legislature that the certified amount be transferred to the |
|
foundation school fund from the economic stabilization fund and |
|
appropriated for the purpose of increases in allocations under this |
|
subsection. If the legislature fails during the regular session to |
|
enact the proposed transfer and appropriation and there are not |
|
funds available under Subsection (j), the commissioner shall adjust |
|
the total amounts due to each school district and open-enrollment |
|
charter school under this chapter [and the total amounts necessary
|
|
for each school district to comply with the requirements of Chapter
|
|
41] by an amount determined by applying to each district and school |
|
the same percentage adjustment to the total amount of state and |
|
local revenue due to the district or school under this chapter [and
|
|
Chapter 41] so that the total amount of the adjustment to all |
|
districts and schools results in an amount equal to the total |
|
adjustment necessary. The following fiscal year,[:
|
|
[(1)] a district's or school's entitlement under this |
|
section is increased by an amount equal to the adjustment made |
|
under this subsection[; and
|
|
[(2)
the amount necessary for a district to comply
|
|
with the requirements of Chapter 41 is reduced by an amount
|
|
necessary to ensure a district's full recovery of the adjustment
|
|
made under this subsection]. |
|
SECTION 21. Sections 42.2531(a), (b), and (c), Education |
|
Code, are amended to read as follows: |
|
(a) The commissioner may make adjustments to amounts due to |
|
a school district under this chapter or Chapter 46[, or to amounts
|
|
necessary for a district to comply with the requirements of Chapter
|
|
41,] as provided by this section. |
|
(b) A school district that has a major taxpayer, as |
|
determined by the commissioner, that because of a protest of the |
|
valuation of the taxpayer's property fails to pay all or a portion |
|
of the ad valorem taxes due to the district may apply to the |
|
commissioner to have the district's taxable value of property or ad |
|
valorem tax collections adjusted for purposes of this chapter or |
|
Chapter [41 or] 46. The commissioner may make the adjustment only |
|
to the extent the commissioner determines that making the |
|
adjustment will not: |
|
(1) in the fiscal year in which the adjustment is made, |
|
cause the amount to which school districts are entitled under this |
|
chapter to exceed the amount appropriated for purposes of the |
|
Foundation School Program for that year; and |
|
(2) if the adjustment is made in the first year of a |
|
state fiscal biennium, cause the amount to which school districts |
|
are entitled under this chapter for the second year of the biennium |
|
to exceed the amount appropriated for purposes of the Foundation |
|
School Program for that year. |
|
(c) The commissioner shall recover the benefit of any |
|
adjustment made under this section by making offsetting adjustments |
|
in the school district's taxable value of property or ad valorem tax |
|
collections for purposes of this chapter or Chapter [41 or] 46 on a |
|
final determination of the taxable value of property that was the |
|
basis of the original adjustment, or in the second school year |
|
following the year in which the adjustment is made, whichever is |
|
earlier. |
|
SECTION 22. Section 42.258(a-1), Education Code, is amended |
|
to read as follows: |
|
(a-1) Notwithstanding Subsection (a), the agency may |
|
recover an overallocation of state funds over a period not to exceed |
|
the subsequent five school years if the commissioner determines |
|
that the overallocation was the result of exceptional circumstances |
|
reasonably caused by statutory changes to former Chapter 41, |
|
Chapter [or] 46, or this chapter and related reporting |
|
requirements. |
|
SECTION 23. Section 42.260(b), Education Code, is amended |
|
to read as follows: |
|
(b) The amount of additional funds to which each school |
|
district or participating charter school is entitled due to the |
|
increases in formula funding made by Chapter 1187 (H.B. No. 3343), |
|
Acts of the 77th Legislature, Regular Session, 2001, and any |
|
subsequent legislation amending the provisions amended by that Act |
|
that increase formula funding under [Chapter 41 and] this chapter |
|
to school districts and charter schools is available for purposes |
|
of Subsection (c). |
|
SECTION 24. Section 45.251(2), Education Code, is amended |
|
to read as follows: |
|
(2) "Foundation School Program" means the program |
|
established under Chapters [41,] 42[,] and 46, or any successor |
|
program of state appropriated funding for school districts in this |
|
state. |
|
SECTION 25. Section 45.261(a), Education Code, is amended |
|
to read as follows: |
|
(a) If the commissioner orders payment from the money |
|
appropriated to the Foundation School Program on behalf of a school |
|
district [that is not required to reduce its wealth per student
|
|
under Chapter 41], the commissioner shall direct the comptroller to |
|
withhold the amount paid from the first state money payable to the |
|
district. If the commissioner orders payment from the money |
|
appropriated to the Foundation School Program on behalf of a school |
|
district that is not entitled to state assistance under Chapter 42 |
|
[required to reduce its wealth per student under Chapter 41], the |
|
commissioner shall order [increase amounts due from] the district |
|
to remit to the commissioner an [under that chapter in a total] |
|
amount equal to the amount of payments made on behalf of the |
|
district under this subchapter. Amounts withheld or received |
|
under this subsection shall be used for the Foundation School |
|
Program. |
|
SECTION 26. Section 403.302(a), Government Code, is amended |
|
to read as follows: |
|
(a) The comptroller shall conduct a study using comparable |
|
sales and generally accepted auditing and sampling techniques to |
|
determine the total taxable value of all property in each school |
|
district. The study shall determine the taxable value of all |
|
property and of each category of property in the district and the |
|
productivity value of all land that qualifies for appraisal on the |
|
basis of its productive capacity and for which the owner has applied |
|
for and received a productivity appraisal. [The comptroller shall
|
|
make appropriate adjustments in the study to account for actions
|
|
taken under Chapter 41, Education Code.] |
|
SECTION 27. Section 1579.251(a), Insurance Code, is amended |
|
to read as follows: |
|
(a) The state shall assist employees of participating |
|
school districts and charter schools in the purchase of group |
|
health coverage under this chapter by providing for each covered |
|
employee the amount of $900 each state fiscal year or a greater |
|
amount as provided by the General Appropriations Act. The state |
|
contribution shall be distributed through the school finance |
|
formulas under Chapter [Chapters 41 and] 42, Education Code, and |
|
used by school districts and charter schools as provided by Section |
|
42.260, Education Code. |
|
SECTION 28. Section 21.01, Tax Code, is amended to read as |
|
follows: |
|
Sec. 21.01. REAL PROPERTY. Real property is taxable by a |
|
taxing unit if located in the unit on January 1[, except as provided
|
|
by Chapter 41, Education Code]. |
|
SECTION 29. Section 21.02(a), Tax Code, is amended to read |
|
as follows: |
|
(a) Except as provided by Subsection [Subsections (b) and] |
|
(e) and by Sections 21.021, 21.04, and 21.05, tangible personal |
|
property is taxable by a taxing unit if: |
|
(1) it is located in the unit on January 1 for more |
|
than a temporary period; |
|
(2) it normally is located in the unit, even though it |
|
is outside the unit on January 1, if it is outside the unit only |
|
temporarily; |
|
(3) it normally is returned to the unit between uses |
|
elsewhere and is not located in any one place for more than a |
|
temporary period; or |
|
(4) the owner resides (for property not used for |
|
business purposes) or maintains the owner's principal place of |
|
business in this state (for property used for business purposes) in |
|
the unit and the property is taxable in this state but does not have |
|
a taxable situs pursuant to Subdivisions (1) through (3) of this |
|
subsection. |
|
SECTION 30. Section 26.08(i), Tax Code, is amended to read |
|
as follows: |
|
(i) For purposes of this section, the effective maintenance |
|
and operations tax rate of a school district is the tax rate that, |
|
applied to the current total value for the district, would impose |
|
taxes in an amount that, when added to state funds that would be |
|
distributed to the district under Chapter 42, Education Code, for |
|
the school year beginning in the current tax year using that tax |
|
rate, would provide the same amount of state funds distributed |
|
under Chapter 42, Education Code, and maintenance and operations |
|
taxes of the district per student in weighted average daily |
|
attendance for that school year that would have been available to |
|
the district in the preceding year if the funding elements for |
|
Chapter [Chapters 41 and] 42, Education Code, for the current year |
|
had been in effect for the preceding year. |
|
SECTION 31. Section 312.210(b), Tax Code, is amended to |
|
read as follows: |
|
(b) A tax abatement agreement with the owner of real |
|
property or tangible personal property that is located in the |
|
reinvestment zone described by Subsection (a) and in a school |
|
district [that has a wealth per student that does not exceed the
|
|
equalized wealth level] must exempt from taxation: |
|
(1) the portion of the value of the property in the |
|
amount specified in the joint agreement among the municipality, |
|
county, and junior college district; and |
|
(2) an amount equal to 10 percent of the maximum |
|
portion of the value of the property that may under Section |
|
312.204(a) be otherwise exempted from taxation. |
|
SECTION 32. The following laws are repealed: |
|
(1) Chapter 41, Education Code; |
|
(2) Sections 7.055(b)(34), 8.056, 29.203(g), and |
|
42.2524(f), Education Code; and |
|
(3) Sections 21.02(b) and (c), 25.25(k), and |
|
312.210(c), Tax Code. |
|
SECTION 33. This Act takes effect September 1, 2019. |