By: Bivins, et al. S.B. No. 4
1-1 By: Bivins, et al. S.B. No. 4
1-2 (In the Senate - Filed March 18, 1999; March 18, 1999, read
1-3 first time and referred to Committee on Education; April 23, 1999,
1-4 reported adversely, with favorable Committee Substitute by the
1-5 following vote: Yeas 8, Nays 0; April 23, 1999, sent to printer.)
1-6 COMMITTEE SUBSTITUTE FOR S.B. No. 4 By: Bivins
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to public school finance and to public education.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Effective September 1, 1999, Subsection (a),
1-12 Section 41.002, Education Code, is amended to read as follows:
1-13 (a) A school district may not have a wealth per student that
1-14 exceeds $290,000 [$280,000].
1-15 SECTION 2. Effective September 1, 2000, Subsection (a),
1-16 Section 41.002, Education Code, is amended to read as follows:
1-17 (a) A school district may not have a wealth per student that
1-18 exceeds $300,000 [$280,000].
1-19 SECTION 3. Subsections (b) through (e), Section 41.002,
1-20 Education Code, are amended to read as follows:
1-21 (b) For [Except as provided by Subsection (c), for] purposes
1-22 of this chapter, the commissioner shall adjust, in accordance with
2-1 Section 42.2521 [by the amount of the decline], the taxable values
2-2 of a school district that, due to factors beyond the control of the
2-3 board of trustees, experiences a rapid decline [from the preceding
2-4 year] in the tax base used in calculating taxable values in excess
2-5 of four percent of the tax base used in the preceding year [that is
2-6 beyond the control of the board of trustees of the district].
2-7 (c) Notwithstanding Subsection (a), in accordance with a
2-8 determination of the commissioner, the wealth per student that a
2-9 school district may have after exercising an option under Section
2-10 41.003(2) or (3) may not be less than the amount needed to maintain
2-11 state and local revenue in an amount equal to state and local
2-12 revenue per weighted student for maintenance and operation of the
2-13 district for the 1992-1993 school year, adjusted in accordance with
2-14 Subsection (d), less the district's current year distribution per
2-15 weighted student from the available school fund, other than amounts
2-16 distributed under Chapter 31, if the district actually levies a tax
2-17 for maintenance and operation of the district at a rate of $1.50 on
2-18 the $100 valuation of taxable property.
2-19 (d) For purposes of Subsection (c), the commissioner shall
2-20 adjust the amount of a school district's state and local revenue
2-21 per weighted student for maintenance and operation of the district
2-22 for the 1992-1993 school year by multiplying that amount by the
2-23 quotient of the equalized wealth level divided by 280,000. [The
2-24 amount of money necessary to replace funds made unavailable to the
2-25 Foundation School Program by operation of Subsection (b) may be
2-26 paid only from funds specifically appropriated for that purpose.
2-27 If a sufficient amount of money is not appropriated to fully
3-1 replace funds made unavailable to the Foundation School Program by
3-2 operation of Subsection (b), the adjustment to the taxable values
3-3 of property in each district to which Subsection (b) applies shall
3-4 be modified proportionately to the extent necessary so that the
3-5 amount of funds made unavailable is equal to the amount
3-6 appropriated to replace those funds.]
3-7 (e) Notwithstanding Subsection (a), for the [1997-1998,
3-8 1998-1999, and] 1999-2000 school year [years], in accordance with a
3-9 determination of the commissioner, the wealth per student that a
3-10 school district may have after exercising an option under Section
3-11 41.003(2) or (3) may not be less than the amount needed to maintain
3-12 state and local revenue in an amount equal to state and local
3-13 revenue per weighted student for maintenance and operation of the
3-14 district for the 1992-1993 school year less the district's current
3-15 year distribution per weighted student from the available school
3-16 fund, other than amounts distributed under Chapter 31, if the
3-17 district imposes an effective tax rate for maintenance and
3-18 operation of the district equal to the greater of the district's
3-19 current tax rate or $1.50 on the $100 valuation of taxable
3-20 property. This subsection expires September 1, 2000.
3-21 SECTION 4. Effective September 1, 1999, Section 42.101,
3-22 Education Code, is amended to read as follows:
3-23 Sec. 42.101. BASIC ALLOTMENT. For each student in average
3-24 daily attendance, not including the time students spend each day in
3-25 special education programs in an instructional arrangement other
3-26 than mainstream or career and technology education programs, for
3-27 which an additional allotment is made under Subchapter C, a
4-1 district is entitled to an allotment of $2,426 [$2,387]. A greater
4-2 amount for any school year may be provided by appropriation.
4-3 SECTION 5. Effective September 1, 2000, Section 42.101,
4-4 Education Code, is amended to read as follows:
4-5 Sec. 42.101. BASIC ALLOTMENT. For each student in average
4-6 daily attendance, not including the time students spend each day in
4-7 special education programs in an instructional arrangement other
4-8 than mainstream or career and technology education programs, for
4-9 which an additional allotment is made under Subchapter C, a
4-10 district is entitled to an allotment of $2,435 [$2,387]. A greater
4-11 amount for any school year may be provided by appropriation.
4-12 SECTION 6. Subchapter B, Chapter 42, Education Code, is
4-13 amended by adding Section 42.106 to read as follows:
4-14 Sec. 42.106. ADJUSTED PROPERTY VALUE FOR DISTRICTS NOT
4-15 OFFERING ALL GRADE LEVELS. For purposes of this chapter, the
4-16 taxable value of property of a school district that contracts for
4-17 students residing in the district to be educated in another
4-18 district under Section 25.039(a) is adjusted by applying the
4-19 formula:
4-20 ADPV = DPV - (TN/.015)
4-21 where:
4-22 "ADPV" is the district's adjusted taxable value of property;
4-23 "DPV" is the taxable value of property in the district for
4-24 the preceding tax year determined under Subchapter M, Chapter 403,
4-25 Government Code; and
4-26 "TN" is the total amount of tuition required to be paid by
4-27 the district under Section 25.039 for the school year for which the
5-1 adjustment is made.
5-2 SECTION 7. Effective September 1, 2000, Subchapter C,
5-3 Chapter 42, Education Code, is amended by adding Section 42.158 to
5-4 read as follows:
5-5 Sec. 42.158. NEW INSTRUCTIONAL FACILITY ALLOTMENT. (a) A
5-6 school district is entitled to an additional allotment as provided
5-7 by this section for operational expenses associated with opening a
5-8 new instructional facility.
5-9 (b) For the first school year in which students attend a new
5-10 instructional facility, a school district is entitled to an
5-11 allotment of $500 for each student in average daily attendance at
5-12 the facility. For the second school year in which students attend
5-13 that instructional facility, a school district is entitled to an
5-14 allotment of $500 for each additional student in average daily
5-15 attendance at the facility.
5-16 (c) For purposes of this section, the number of additional
5-17 students in average daily attendance at a facility is the
5-18 difference between the number of students in average daily
5-19 attendance in the current year at that facility and the number of
5-20 students in average daily attendance at that facility in the
5-21 preceding year.
5-22 (d) The amount appropriated for allotments under this
5-23 section may not exceed $50 million in a school year. If the total
5-24 amount of allotments to which districts are entitled under this
5-25 section for a school year exceeds the amount appropriated for
5-26 allotments under this section, the commissioner shall reduce each
5-27 district's allotment under this section in the manner provided by
6-1 Section 42.253(h).
6-2 (e) The commissioner may adopt rules necessary to implement
6-3 this section.
6-4 (f) In this section, "instructional facility" has the
6-5 meaning assigned by Section 46.001.
6-6 SECTION 8. Subsection (a), Section 42.251, Education Code,
6-7 is amended to read as follows:
6-8 (a) The sum of the basic allotment under Subchapter B and
6-9 the special allotments under Subchapter C, computed in accordance
6-10 with this chapter, constitute the tier one allotments. The sum of
6-11 the tier one allotments, the guaranteed yield allotments under
6-12 Subchapter F, and assistance provided under the school facilities
6-13 tier [assistance program] under Subchapter I [H], computed in
6-14 accordance with this chapter, constitute the total cost of the
6-15 Foundation School Program.
6-16 SECTION 9. Section 42.2511, Education Code, is amended to
6-17 read as follows:
6-18 Sec. 42.2511. [COMPUTATION OF STATE AID FOR 1997-1998 SCHOOL
6-19 YEAR;] ADDITIONAL STATE AID FOR 1999-2000 AND 2000-2001 SCHOOL
6-20 YEARS. (a) Notwithstanding any other provision of this chapter,
6-21 for [in computing state aid for the 1997-1998 school year, a school
6-22 district's taxable value of property under Subchapter M, Chapter
6-23 403, Government Code, is determined as if the increase in the
6-24 homestead exemption under Section 1-b(c), Article VIII, Texas
6-25 Constitution, and the additional limitation on tax increases under
6-26 Section 1-b(d) of that article, as proposed by H.J.R. No. 4, 75th
6-27 Legislature, Regular Session, 1997, had been in effect for the 1996
7-1 tax year.]
7-2 [(b) For] the 1999-2000 and 2000-2001 [1997-1998 and
7-3 1998-1999] school years, a school district is entitled to
7-4 additional state aid to the extent that state aid under this
7-5 chapter based on the determination of the school district's taxable
7-6 value of property as provided under Subchapter M, Chapter 403,
7-7 Government Code, [by Subsection (a)] does not fully compensate the
7-8 district for ad valorem tax revenue [that would have been] lost due
7-9 to the increase in the homestead exemption under Section 1-b(c),
7-10 Article VIII, Texas Constitution, as proposed by H.J.R. No. 4, Acts
7-11 of the 75th Legislature, Regular Session, 1997, and the additional
7-12 limitation on tax increases under Section 1-b(d), Article VIII,
7-13 Texas Constitution, as proposed by H.J.R. No. 4, Acts of the 75th
7-14 Legislature, Regular Session, 1997 [if the increased exemption and
7-15 additional limitation had been in effect for the 1996 tax year].
7-16 The commissioner, using information provided by the comptroller,
7-17 shall compute the amount of additional state aid to which a
7-18 district is entitled under this subsection. A determination by the
7-19 commissioner under this subsection is final and may not be
7-20 appealed.
7-21 (b) [(c)] This section expires September 1, 2001 [1999].
7-22 SECTION 10. Subchapter E, Chapter 42, Education Code, is
7-23 amended by adding Section 42.2521 to read as follows:
7-24 Sec. 42.2521. ADJUSTMENT FOR RAPID DECLINE IN TAXABLE VALUE
7-25 OF PROPERTY. (a) For purposes of Chapter 41 and this chapter, the
7-26 commissioner may adjust the taxable value of property in a school
7-27 district that, due to factors beyond the control of the board of
8-1 trustees, experiences a rapid decline in the tax base used in
8-2 calculating taxable values in excess of four percent of the tax
8-3 base used in the preceding year.
8-4 (b) The commissioner, to the extent money specifically
8-5 authorized to be used for that purpose is available, may adjust the
8-6 district's taxable values for such losses in value exceeding four
8-7 percent to reflect the local current year taxable value. To the
8-8 extent that a sufficient amount of money is not available to fund
8-9 all adjustments under this section, the commissioner shall reduce
8-10 adjustments in the manner provided by Section 42.253(h) so that the
8-11 total amount of adjustments equals the amount of money available to
8-12 fund the adjustments.
8-13 (c) A decision of the commissioner under this section is
8-14 final.
8-15 SECTION 11. Subsections (a) and (c), Section 42.253,
8-16 Education Code, are amended to read as follows:
8-17 (a) For each school year the commissioner shall determine:
8-18 (1) the amount of money to which a school district is
8-19 entitled under Subchapters B and C;
8-20 (2) the amount of money to which a school district is
8-21 entitled under Subchapter F;
8-22 (3) the amount of money to which a school district is
8-23 entitled under Subchapter I;
8-24 (4) the amount of money allocated to the district from
8-25 the available school fund;
8-26 (5) [(4)] the amount of each district's tier one local
8-27 share under Section 42.252; and
9-1 (6) [(5)] the amount of each district's tier two local
9-2 share under Section 42.302.
9-3 (c) Each school district is entitled to an amount equal to
9-4 the difference for that district between the sum of Subsections
9-5 (a)(1), [and] (a)(2), and (a)(3) and the sum of Subsections
9-6 [(a)(3),] (a)(4), [and] (a)(5), and (a)(6).
9-7 SECTION 12. Effective September 1, 1999, Section 42.302,
9-8 Education Code, is amended to read as follows:
9-9 Sec. 42.302. Allotment. (a) Each school district is
9-10 guaranteed a specified amount per weighted student in state and
9-11 local funds for each cent of tax effort over that required for the
9-12 district's local fund assignment up to the maximum level specified
9-13 in this subchapter. The amount of state support, subject only to
9-14 the maximum amount under Section 42.303, is determined by the
9-15 formula:
9-16 GYA = (GL X WADA X DTR X 100) - LR
9-17 where:
9-18 "GYA" is the guaranteed yield amount of state funds to be
9-19 allocated to the district;
9-20 "GL" is the dollar amount guaranteed level of state and local
9-21 funds per weighted student per cent of tax effort, which is $22.50
9-22 [$21] or a greater amount for any year provided by appropriation;
9-23 "WADA" is the number of students in weighted average daily
9-24 attendance, which is calculated by dividing the sum of the school
9-25 district's allotments under Subchapters B and C, less any allotment
9-26 to the district for transportation and 50 percent of the adjustment
9-27 under Section 42.102, by the basic allotment for the applicable
10-1 year;
10-2 "DTR" is the district enrichment and facilities tax rate of
10-3 the school district, which is determined by subtracting the amounts
10-4 specified by Subsection (b) from the total amount of taxes
10-5 collected by the school district for the applicable school year and
10-6 dividing the difference by the quotient of the district's taxable
10-7 value of property as determined under Subchapter M, Chapter 403,
10-8 Government Code, or, if applicable, under Section 42.2521, divided
10-9 by 100; and
10-10 "LR" is the local revenue, which is determined by multiplying
10-11 "DTR" by the quotient of the district's taxable value of property
10-12 as determined under Subchapter M, Chapter 403, Government Code, or,
10-13 if applicable, under Section 42.2521, divided by 100.
10-14 (b) In computing the district enrichment and facilities tax
10-15 rate of a school district, the total amount of taxes collected by
10-16 the school district does not include the amount of:
10-17 (1) the district's local fund assignment under Section
10-18 42.252;
10-19 (2) taxes collected to pay the local share of debt
10-20 service for which the district receives state aid under Subchapter
10-21 I;
10-22 (3) taxes collected to pay the local share of the cost
10-23 of an instructional facility for which the district receives state
10-24 assistance under Chapter 46; or
10-25 (4) [(3)] taxes paid into a tax increment fund under
10-26 Chapter 311, Tax Code.
10-27 SECTION 13. Effective September 1, 2000, Subsection (a),
11-1 Section 42.302, Education Code, is amended to read as follows:
11-2 (a) Each school district is guaranteed a specified amount
11-3 per weighted student in state and local funds for each cent of tax
11-4 effort over that required for the district's local fund assignment
11-5 up to the maximum level specified in this subchapter. The amount
11-6 of state support, subject only to the maximum amount under Section
11-7 42.303, is determined by the formula:
11-8 GYA = (GL X WADA X DTR X 100) - LR
11-9 where:
11-10 "GYA" is the guaranteed yield amount of state funds to be
11-11 allocated to the district;
11-12 "GL" is the dollar amount guaranteed level of state and local
11-13 funds per weighted student per cent of tax effort, which is $23.10
11-14 [$21] or a greater amount for any year provided by appropriation;
11-15 "WADA" is the number of students in weighted average daily
11-16 attendance, which is calculated by dividing the sum of the school
11-17 district's allotments under Subchapters B and C, less any allotment
11-18 to the district for transportation, any allotment to the district
11-19 under Section 42.158, and 50 percent of the adjustment under
11-20 Section 42.102, by the basic allotment for the applicable year;
11-21 "DTR" is the district enrichment and facilities tax rate of
11-22 the school district, which is determined by subtracting the amounts
11-23 specified by Subsection (b) from the total amount of taxes
11-24 collected by the school district for the applicable school year and
11-25 dividing the difference by the quotient of the district's taxable
11-26 value of property as determined under Subchapter M, Chapter 403,
11-27 Government Code, or, if applicable, under Section 42.2521, divided
12-1 by 100; and
12-2 "LR" is the local revenue, which is determined by multiplying
12-3 "DTR" by the quotient of the district's taxable value of property
12-4 as determined under Subchapter M, Chapter 403, Government Code, or,
12-5 if applicable, under Section 42.2521, divided by 100.
12-6 SECTION 14. Chapter 42, Education Code, is amended by adding
12-7 Subchapter I to read as follows:
12-8 SUBCHAPTER I. SCHOOL FACILITIES TIER
12-9 Sec. 42.501. ALLOTMENT. (a) Each school district is
12-10 guaranteed a specified amount per student in state and local funds
12-11 for each cent of tax effort to pay the principal of an interest on
12-12 eligible bonds. The amount of state support, subject only to the
12-13 maximum amount under Section 42.502, is determined by the formula:
12-14 FTA = (FGL X ADA X FTR X 100) - (FTR X (DPV/100)) where:
12-15 "FTA" is the amount of state funds to be allocated to the
12-16 district as a facilities tier allotment;
12-17 "FGL" is the dollar amount guaranteed level of state and
12-18 local funds per student per cent of tax effort, which is $35 or a
12-19 greater amount for any year provided by appropriation;
12-20 "ADA" is the number of students in average daily attendance
12-21 in the district;
12-22 "FTR" is the district facilities tax rate of the school
12-23 district, which is determined by dividing the amount of taxes
12-24 budgeted to be collected by the district for payment of eligible
12-25 bonds by the quotient of the district's taxable value of property
12-26 as determined under Subchapter M, Chapter 403, Government Code, or,
12-27 if applicable, under Section 42.2521, divided by 100; and
13-1 "DPV" is the district's taxable value of property as
13-2 determined under Subchapter M, Chapter 403, Government Code, or, if
13-3 applicable, under Section 42.2521.
13-4 (b) The district facilities tax rate under Subsection (a)
13-5 may not exceed the rate that would be necessary for the current
13-6 year, using state funds under Subsection (a), to make payments of
13-7 principal and interest on the bonds for which the tax is pledged.
13-8 (c) To enable the district to collect local funds sufficient
13-9 to pay the district's share of the debt service, a district may
13-10 levy a facilities tax at a rate higher than the maximum rate for
13-11 which it may receive state assistance under this subchapter.
13-12 (d) Bonds are eligible to be paid with state and local funds
13-13 under this subchapter if:
13-14 (1) taxes levied to pay the principal of and interest
13-15 on the bonds were included in the district's audited debt service
13-16 collections for the 1998-1999 school year; and
13-17 (2) the district does not receive state assistance
13-18 under Chapter 46 for payment of the principal and interest on the
13-19 bonds.
13-20 (e) If the amount required to pay the principal of and
13-21 interest on eligible bonds in a school year is less than the
13-22 district's audited debt service collections for the 1998-1999
13-23 school year, the district may not receive aid in excess of the
13-24 amount that, when added to the district's local revenue for the
13-25 school year, equals the amount required to pay the principal of and
13-26 interest on the bonds.
13-27 (f) Notwithstanding Section 42.259, as soon as practicable
14-1 after September 1 of each year, the commissioner shall distribute
14-2 to each school district the amount of state assistance under this
14-3 subchapter to which the commissioner has determined the district is
14-4 entitled for the school year. The district shall deposit the money
14-5 in the interest and sinking fund for the bonds for which the
14-6 assistance is received and shall adopt a tax rate for purposes of
14-7 debt service that takes into account the balance of the interest
14-8 and sinking fund.
14-9 Sec. 42.502. LIMITATION ON FACILITIES TAX RATE. The
14-10 district facilities tax rate ("FTR") under Section 42.501 may not
14-11 exceed $0.06 per $100 of valuation or a greater amount for any year
14-12 provided by appropriation.
14-13 SECTION 15. Subsection (a), Section 46.003, Education Code,
14-14 is amended to read as follows:
14-15 (a) For each year, except as provided by Sections 46.005 and
14-16 46.006, a school district is guaranteed a specified amount per
14-17 student in state and local funds for each cent of tax effort, up to
14-18 the maximum rate under Subsection (b), to pay the principal of and
14-19 interest on eligible bonds issued to construct, acquire, renovate,
14-20 or improve an instructional facility. The amount of state support
14-21 is determined by the formula:
14-22 FYA = (FYL X ADA X BTR X 100) - (BTR X (DPV/100))
14-23 where:
14-24 "FYA" is the guaranteed facilities yield amount of state
14-25 funds allocated to the district for the year;
14-26 "FYL" is the dollar amount guaranteed level of state and
14-27 local funds per student per cent of tax effort, which is $35 [$28]
15-1 or a greater amount for any year provided by appropriation;
15-2 "ADA" is the number of students in average daily attendance,
15-3 as determined under Section 42.005, in the district;
15-4 "BTR" is the district's bond tax rate for the current year,
15-5 which is determined by dividing the amount of taxes budgeted to be
15-6 collected by the district for payment of eligible bonds by the
15-7 quotient of the district's taxable value of property as determined
15-8 under Subchapter M, Chapter 403, Government Code, or, if
15-9 applicable, Section 42.2521, divided by 100; and
15-10 "DPV" is the district's taxable value of property as
15-11 determined under Subchapter M, Chapter 403, Government Code, or, if
15-12 applicable, Section 42.2521.
15-13 SECTION 16. Section 46.006, Education Code, is amended to
15-14 read as follows:
15-15 Sec. 46.006. Shortage or Excess of Funds Appropriated for
15-16 New Projects. (a) If the total amount appropriated for a year for
15-17 new projects is less than the amount of money to which school
15-18 districts applying for state assistance are entitled for that year,
15-19 the commissioner shall rank each school district applying by wealth
15-20 per student. For purposes of this section, a district's wealth per
15-21 student is reduced by 10 percent for each state fiscal biennium in
15-22 which the district did not receive assistance under this chapter.
15-23 (b) A district's wealth per student is reduced for purposes
15-24 of this section if a district has had substantial student
15-25 enrollment growth in the preceding five-year period. The reduction
15-26 is in addition to any reduction under Subsection (a) and is
15-27 computed before the district's wealth per student is reduced under
16-1 that subsection, if applicable. A district's wealth per student is
16-2 reduced:
16-3 (1) by five percent, if the district has an enrollment
16-4 growth rate in that period that is 10 percent or more but less than
16-5 15 percent;
16-6 (2) by 10 percent, if the district has an enrollment
16-7 growth rate in that period that is 15 percent or more but less than
16-8 30 percent; or
16-9 (3) by 15 percent, if the district has an enrollment
16-10 growth rate in that period that is 30 percent or more.
16-11 (c) A district's wealth per student is reduced by 10 percent
16-12 for purposes of this section if the district does not have any
16-13 outstanding debt at the time the district applies for assistance
16-14 under this chapter. The reduction is in addition to any reduction
16-15 under Subsection (a) or (b) and is computed before the district's
16-16 wealth per student is reduced under those subsections, if
16-17 applicable.
16-18 (d) The commissioner shall adjust the rankings after making
16-19 the reductions in wealth per student required by Subsections (a),
16-20 (b), and (c) [this subsection].
16-21 (e) [(b)] Beginning with the district with the lowest
16-22 adjusted wealth per student that has applied for state assistance
16-23 for the year, the commissioner shall award state assistance to
16-24 districts that have applied for state assistance in ascending order
16-25 of adjusted wealth per student. The commissioner shall award the
16-26 full amount of state assistance to which a district is entitled
16-27 under this chapter, except that the commissioner may award less
17-1 than the full amount to the last district for which any funds are
17-2 available.
17-3 (f) [(c)] Any amount appropriated for the first year of a
17-4 fiscal biennium that is not awarded to a school district may be
17-5 used to provide assistance in the following fiscal year.
17-6 (g) [(d)] In this section, "wealth per student" means a
17-7 school district's taxable value of property as determined under
17-8 Subchapter M, Chapter 403, Government Code, or, if applicable,
17-9 Section 42.2521, divided by the district's average daily attendance
17-10 as determined under Section 42.005.
17-11 SECTION 17. Subchapter B, Chapter 21, Education Code, is
17-12 amended by adding Section 21.0481 to read as follows:
17-13 Sec. 21.0481. MASTER READING TEACHER CERTIFICATION. The
17-14 board shall issue a master reading teacher certificate to each
17-15 eligible person. To be eligible for a master reading teacher
17-16 certificate, a person must:
17-17 (1) hold a reading specialist certificate issued under
17-18 this subchapter and satisfactorily complete a course of instruction
17-19 as prescribed under Subdivision (2)(B); or
17-20 (2) hold a teaching certificate issued under this
17-21 subchapter and:
17-22 (A) have at least three years of teaching
17-23 experience;
17-24 (B) satisfactorily complete a knowledge-based
17-25 and skills-based course of instruction on the science of teaching
17-26 children to read that includes training in:
17-27 (i) effective reading instruction
18-1 techniques, including effective techniques for students whose
18-2 primary language is a language other than English;
18-3 (ii) identification of dyslexia and
18-4 related reading disorders and effective reading instruction
18-5 techniques for students with those disorders; and
18-6 (iii) effective professional peer
18-7 mentoring techniques;
18-8 (C) perform satisfactorily on the master reading
18-9 teacher certification examination prescribed by the board; and
18-10 (D) satisfy any other requirements prescribed by
18-11 the board.
18-12 SECTION 18. Section 21.401, Education Code, is amended to
18-13 read as follows:
18-14 Sec. 21.401. Minimum Service Required. (a) A contract
18-15 between a school district and an educator must be for a minimum of
18-16 10 months' service.
18-17 (a-4) For the 1998-1999 school year, an educator employed
18-18 under a 10-month contract must provide a minimum of 187 days of
18-19 service. This subsection expires September 1, 1999.
18-20 (b) An educator employed under a 10-month contract must
18-21 provide a minimum [number] of 187 days of service [as determined by
18-22 the following formula:]
18-23 [MDS = 185 + (0.33 X (R1 - R2)/(R2/185) )]
18-24 [where:]
18-25 ["MDS" is the minimum number of days of service;]
18-26 ["R1" is equal to FSP/ADA as determined under Section 21.402
18-27 for the fiscal year; and]
19-1 ["R2" is equal to FSP/ADA as determined under Section 21.402
19-2 for the 1996-1997 school year].
19-3 [(b-1) Subsection (b) applies beginning with the 1999-2000
19-4 school year. This subsection expires January 1, 2000.]
19-5 (c) [The result of the formula prescribed by Subsection (b)
19-6 shall be rounded to the nearest whole number.]
19-7 [(d)] The commissioner, as provided by Section 25.081(b),
19-8 may reduce the number of days of service required by this section.
19-9 A reduction by the commissioner does not reduce an educator's
19-10 salary.
19-11 SECTION 19. Effective September 1, 1999, Subsections (a),
19-12 (b), and (c), Section 21.402, Education Code, are amended to read
19-13 as follows:
19-14 (a) Except as provided by Subsection (d) or (e), a school
19-15 district must pay each classroom teacher or full-time librarian not
19-16 less than the minimum monthly salary, based on the employee's level
19-17 of experience, determined by the following formula:
19-18 MS = SF X FS [(FSP/ADA)]
19-19 where:
19-20 "MS" is the minimum monthly salary;
19-21 "SF" is the applicable salary factor specified by Subsection
19-22 (c); and
19-23 "FS" is the amount, as determined by the commissioner under
19-24 Subsection (b), of state and local funds per weighted student
19-25 available to a district eligible to receive state assistance under
19-26 Section 42.302 with a district enrichment and facilities tax rate,
19-27 as defined by Section 42.302, equal to the maximum rate authorized
20-1 under Section 42.303 ["FSP" is the amount appropriated in the
20-2 General Appropriations Act for the fiscal year for the Foundation
20-3 School Program, as determined by the commissioner as provided by
20-4 Subsection (b); and]
20-5 ["ADA" is the total estimated average daily attendance, as
20-6 defined by Section 42.005, used for purposes of the General
20-7 Appropriations Act for the fiscal year].
20-8 (b) Not later than June 1 of each year, the commissioner
20-9 shall determine the amount of state and local funds per weighted
20-10 student available, for purposes of Subsection (a), to a district
20-11 described by that subsection for the following school year
20-12 [appropriated for purposes of Chapter 42 for the state fiscal year
20-13 beginning September 1. The commissioner shall exclude from the
20-14 determination:]
20-15 [(1) amounts designated solely for use in connection
20-16 with school facilities or for payment of principal of and interest
20-17 on bonds; and]
20-18 [(2) local funds received under Subchapter D, Chapter
20-19 41].
20-20 (c) The salary factors per step are as follows:
20-21 Years Experience 0 1 2 3 4
20-22 Salary Factor .5995 .6148 .6287 .6428 .6567
20-23 [.8470] [.8699] [.8928] [.9156] [.9639]
20-24 Years Experience 5 6 7 8 9
20-25 Salary Factor .6862 .7157 .7451 .7727 .7985
20-26 [1.0122] [1.0605] [1.1054] [1.1477] [1.1879]
20-27 Years Experience 10 11 12 13 14
21-1 Salary Factor .8231 .8460 .8682 .8889 .9081
21-2 [1.2256] [1.2616] [1.2955] [1.3273] [1.3578]
21-3 Years Experience 15 16 17 18 19
21-4 Salary Factor .9269 .9442 .9607 .9763 .9909
21-5 [1.3862] [1.4133] [1.4387] [1.4628] [1.4857]
21-6 Years Experience 20 and over
21-7 Salary Factor 1.0051
21-8 [1.5073]
21-9 SECTION 20. (a) The commissioner of education shall notify
21-10 each school district as soon as practicable after passage of this
21-11 Act of the amount of additional state funds to which the district
21-12 is entitled due to the increases in the basic allotment and
21-13 guaranteed yield, as well as additional funds due to the increase
21-14 in the equalized wealth level, using the estimates required under
21-15 Subsection (b), Section 42.254, Education Code, for the 1999-2000
21-16 school year. For the 2000-2001 school year, the commissioner shall
21-17 notify each school district of the amount of increased state funds
21-18 due to the increases in the basic allotment and guaranteed yield,
21-19 as well as additional funds due to the increase in the equalized
21-20 wealth level, no later than March 1, 2000. The commissioner shall
21-21 to the extent possible adjust the 2000-2001 amount to take into
21-22 consideration any adjustments found necessary pursuant to
21-23 Subsection (i), Section 42.253, Education Code, to the extent
21-24 necessary to accurately reflect the amount of additional funds
21-25 available to the district. A determination by the commissioner
21-26 under this section is final and may not be appealed.
21-27 (b) Each school district shall use at least 60 percent of
22-1 the full amounts certified under this section to increase the
22-2 salaries of classroom teachers or full-time librarians over the
22-3 salary to which they would have been entitled in the previous year,
22-4 including any applicable local supplements or stipends. Compliance
22-5 with the requirements of this subsection shall be examined and
22-6 audited as part of the district annual audit under Section 44.008,
22-7 Education Code.
22-8 (c) The commissioner of education may make rules for the
22-9 implementation of this section.
22-10 SECTION 21. Subchapter I, Chapter 21, Education Code, is
22-11 amended by adding Section 21.410 to read as follows:
22-12 Sec. 21.410. MASTER READING TEACHER GRANT PROGRAM. (a) The
22-13 commissioner shall establish a master reading teacher grant
22-14 program.
22-15 (b) From funds appropriated for the purpose, the
22-16 commissioner shall make grants to school districts and
22-17 open-enrollment charter schools as provided by this section to pay
22-18 stipends to selected certified master reading teachers who teach at
22-19 high-need campuses.
22-20 (c) The commissioner shall annually identify each high-need
22-21 campus in a school district and each high-need open-enrollment
22-22 charter school campus using criteria established by the
22-23 commissioner by rule, including performance on the reading
22-24 assessment instrument administered under Section 39.023. The
22-25 commissioner shall also use the criteria to rank campuses in order
22-26 of greatest need.
22-27 (d) A school district or open-enrollment charter school may
23-1 apply to the commissioner for grants for each high-need campus
23-2 identified by the commissioner to be used to pay stipends to
23-3 certified master reading teachers in accordance with this section.
23-4 Unless reduced under Subsection (g) or (i), each grant is in the
23-5 amount of $5,000. The commissioner shall approve the application
23-6 if the district or school:
23-7 (1) applies within the period and in the manner
23-8 required by rule adopted by the commissioner; and
23-9 (2) agrees to use each grant only for the purpose of
23-10 paying a year-end stipend to a master reading teacher:
23-11 (A) who holds a certificate issued under Section
23-12 21.0481;
23-13 (B) who teaches in a position prescribed by the
23-14 district or school at a high-need campus identified by the
23-15 commissioner;
23-16 (C) whose primary duties include:
23-17 (i) teaching reading; and
23-18 (ii) serving as a reading teaching mentor
23-19 to other teachers for the amount of time and in the manner
23-20 established by the district or school and by rule adopted by the
23-21 commissioner; and
23-22 (D) who satisfies any other requirements
23-23 established by rule adopted by the commissioner.
23-24 (e) Unless reduced under Subsection (g) or (i), a stipend
23-25 under Subsection (d)(2) is in the amount of $5,000.
23-26 (f) The commissioner shall adopt rules for the distribution
23-27 of grants to school districts and open-enrollment charter schools
24-1 in years following the year of the initial grant. A school
24-2 district or open-enrollment charter school that has been approved
24-3 for a grant to pay a stipend to a certified master reading teacher
24-4 is not required to reapply for a grant for two consecutive school
24-5 years following the year of the initial grant if the district or
24-6 school:
24-7 (1) continues to pay a stipend as provided by
24-8 Subsection (g); and
24-9 (2) notifies the commissioner in writing, within the
24-10 period and in the manner prescribed by the commissioner, that the
24-11 circumstances on which the grant was based have not changed.
24-12 (g) The commissioner shall reduce payments to a school
24-13 district or open-enrollment charter school proportionately to the
24-14 extent a teacher does not meet the requirements under Subsection
24-15 (d)(2) for the entire school year. A district or school that
24-16 employs more certified master reading teachers than the number of
24-17 grants available under this section shall select the certified
24-18 master reading teachers to whom to pay stipends based on a policy
24-19 adopted by the board of trustees of the district or the governing
24-20 body of the school, except that a district or school shall pay a
24-21 stipend for two additional consecutive school years to a teacher
24-22 the district or school has selected for and paid a stipend for a
24-23 school year who remains eligible for a stipend under Subsection
24-24 (d)(2) and for whom the district or school receives a grant under
24-25 this section for those years. A decision of the district or school
24-26 under this subsection is final and may not be appealed. The
24-27 district or school may not apportion among teachers a stipend paid
25-1 for with a grant the district or school receives under this
25-2 section. The district or school may use local money to pay
25-3 additional stipends in amounts determined by the district or
25-4 school.
25-5 (h) A grant a school district or open-enrollment charter
25-6 school receives under this section is in addition to any funding
25-7 the district or school receives under Chapter 12 or 42, as
25-8 applicable. The commissioner shall distribute funds under this
25-9 section with the Foundation School Program payment to which the
25-10 district or school is entitled as soon as practicable after the end
25-11 of the school year as determined by the commissioner. A district
25-12 to which Chapter 41 applies is entitled to the grants paid under
25-13 this section. The commissioner shall determine the timing of the
25-14 distribution of grants to a district that does not receive
25-15 Foundation School Program payments.
25-16 (i) This section does not create a property right to a grant
25-17 or stipend. A school district or open-enrollment charter school is
25-18 entitled to a grant to carry out the purposes of this section only
25-19 to the extent the commissioner makes the grant in accordance with
25-20 this section and only to the extent sufficient state funds are
25-21 appropriated for those purposes. If state funds are appropriated
25-22 but are insufficient to fully fund a grant, the commissioner shall
25-23 reduce the grant paid to each district or school in the manner
25-24 provided under Section 42.253(h) and each district or school shall
25-25 reduce the stipend the district or school pays to each teacher
25-26 under this section proportionately so that each selected teacher
25-27 receives the same amount of money.
26-1 (j) A decision of the commissioner concerning the amount of
26-2 money to which a school district or open-enrollment charter school
26-3 is entitled under this section is final and may not be appealed.
26-4 Each district or open-enrollment charter school shall, in the
26-5 manner and at the time prescribed by the commissioner, provide to
26-6 the commissioner proof acceptable to the commissioner of the master
26-7 reading teacher certification of a teacher to whom the district or
26-8 school is paying a stipend under this section.
26-9 (k) The commissioner may audit the expenditure of money
26-10 appropriated for purposes of this section. A district's use of the
26-11 money appropriated for purposes of this section shall be verified
26-12 as part of the district audit under Section 44.008.
26-13 (l) A stipend a teacher receives under this section is not
26-14 considered in determining whether the district is paying the
26-15 teacher the minimum monthly salary under Section 21.402.
26-16 (m) The commissioner may adopt other rules as necessary to
26-17 implement this section.
26-18 SECTION 22. Subsection (b), Section 25.039, Education Code,
26-19 is amended to read as follows:
26-20 (b) The school district in which the students reside shall
26-21 pay tuition to any district with which it has a contract under this
26-22 section for each of its students attending school in that district
26-23 at a grade level for which the district has contracted. The amount
26-24 of the tuition paid may not exceed the lesser of the amount
26-25 provided for by Section 25.038 or an amount specified by
26-26 commissioner rule [if the board of trustees of the district in
26-27 which the students reside finds the excess payment to be in the
27-1 best interest of the district's educational program].
27-2 SECTION 23. Section 44.004, Education Code, is amended to
27-3 read as follows:
27-4 Sec. 44.004. NOTICE OF BUDGET AND TAX RATE MEETING; BUDGET
27-5 ADOPTION. (a) When the budget has been prepared under Section
27-6 44.002, the president shall call a meeting of the board of
27-7 trustees, stating that the purpose of the meeting is the adoption
27-8 of a budget for the succeeding fiscal year.
27-9 (b) The president shall provide for the publication of
27-10 notice of the budget and proposed tax rate meeting in a daily,
27-11 weekly, or biweekly newspaper published in the district. If no
27-12 daily, weekly, or biweekly newspaper is published in the district,
27-13 the president shall provide for the publication of notice in at
27-14 least one newspaper of general circulation in the county in which
27-15 the district's central administrative office is located. [Notice
27-16 published under this subsection is in addition to notice required
27-17 by other law.] Notice under this subsection shall be published not
27-18 earlier than the 30th day or later than the 10th day before the
27-19 date of the hearing. [A district may include the notice required
27-20 under this subsection in a notice required under Section 26.06, Tax
27-21 Code.]
27-22 (c) The notice of public meeting to discuss and adopt the
27-23 budget and the proposed tax rate may not be smaller than
27-24 one-quarter page of a standard-size or a tabloid-size newspaper,
27-25 and the headline on the notice must be in 18-point or larger type.
27-26 Subject to Subsection (d), the notice must:
27-27 (1) contain a statement in the following form:
28-1 "NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET
28-2 AND PROPOSED TAX RATE
28-3 "The (name of school district) will hold a public meeting at
28-4 (time, date, year) in (name of room, building, physical location,
28-5 city, state). The purpose of this meeting is to discuss the school
28-6 district's budget that will determine the tax rate that will be
28-7 adopted. Public participation in the discussion is invited." The
28-8 statement of the purpose of the meeting must be in bold type. In
28-9 reduced type, the notice must state: "The tax rate that is
28-10 ultimately adopted at this meeting or at a separate meeting at a
28-11 later date may not exceed the proposed rate shown below without
28-12 publication of a revised notice containing the same information and
28-13 comparisons set out below.";
28-14 (2) contain a section entitled "Comparison of Proposed
28-15 Rates with Preceding Year's Adopted Rates," which must:
28-16 (A) show in rows the tax rates described by
28-17 Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
28-18 property, for columns entitled "Maintenance & Operations Tax Rate,"
28-19 which, except as provided by Subparagraph (iii), is the rate that,
28-20 if applied to the total taxable value of property in the district
28-21 for the applicable tax year, will impose the amount of taxes that,
28-22 when added to state aid to be received by the district under
28-23 Chapters 42 and 43 for the corresponding school year, will fund
28-24 maintenance and operations expenditures of the district for that
28-25 school year, "Interest & Sinking Fund Tax Rate," which is the rate
28-26 that, if applied to the total taxable value of property in the
28-27 district for the applicable tax year, will impose the total amount
29-1 mailed or published for that tax year under Section 26.04(e)(3)(C),
29-2 Tax Code, and "Total Tax Rate" which is the sum of the "Maintenance
29-3 & Operations Tax Rate" and the "Interest & Sinking Fund Tax Rate":
29-4 (i) the school district's "Adopted Tax
29-5 Rate for the Preceding Year";
29-6 (ii) the "Tax Rate Required to Maintain
29-7 the Same Level of Maintenance & Operations Revenue and Pay Debt
29-8 Service," which, in the case of the "Maintenance & Operations Tax
29-9 Rate," is computed by multiplying the "Total Revenue per Student"
29-10 for the current school year, determined as provided by Paragraph
29-11 (B), by the estimated number of students in average daily
29-12 attendance for the following school year, subtracting from the
29-13 product the amount mailed or published under Section
29-14 26.04(e)(3)(C), Tax Code, and dividing the difference by the
29-15 district's total taxable value of property, and which, in the case
29-16 of the "Interest & Sinking Fund Tax Rate," is computed by dividing
29-17 the amount mailed or published under Section 26.04(e)(3)(C), Tax
29-18 Code, for the current tax year by the district's total taxable
29-19 value of property for that tax year; and
29-20 (iii) the "Proposed Tax Rate";
29-21 (B) contain a fourth column aligned with the
29-22 columns required by Paragraph (A) that shows, for each row required
29-23 by Paragraph (A), the "Total Revenue per Student," which is
29-24 computed by:
29-25 (i) multiplying the district's total
29-26 taxable value of property by the "Total Tax Rate";
29-27 (ii) adding to the product determined
30-1 under Subparagraph (i) state aid received or to be received by the
30-2 district under Chapters 42 and 43; and
30-3 (iii) dividing the sum determined under
30-4 Subparagraph (ii) by the number of students in average daily
30-5 attendance in the district; and
30-6 (C) contain an asterisk after each calculation
30-7 for an "Interest & Sinking Fund Tax Rate" and a footnote to the
30-8 section that says "The Interest & Sinking Fund Tax Revenue is used
30-9 to pay for bonded indebtedness on construction, equipment, or both.
30-10 The bonds, and the tax rate necessary to pay those bonds, were
30-11 approved by the voters of this district in (an election or
30-12 elections) held (dates of election or elections).";
30-13 (3) contain a section entitled "Comparison of Proposed
30-14 Levy with Last Year's Levy on Average Residence Homestead," which
30-15 must:
30-16 (A) show in rows the information described by
30-17 Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
30-18 entitled "Preceding Tax Year" and "Current Tax Year":
30-19 (i) "Average Appraised Value of Residence
30-20 Homesteads";
30-21 (ii) "Average Taxable Value of Residence
30-22 Homesteads, after Homestead Exemptions";
30-23 (iii) "Last Year's Rate Versus Proposed
30-24 Rate per $100 of Property Value"; and
30-25 (iv) "Taxes Imposed on Average Residence
30-26 Homestead"; and
30-27 (B) contain the following information:
31-1 "Increase (Decrease) in Taxes" expressed in dollars and cents,
31-2 which is computed by subtracting the "Taxes Imposed on Average
31-3 Residence Homestead" for the preceding tax year from the "Taxes
31-4 Imposed on Average Residence Homestead" for the current tax year;
31-5 (4) contain the following statement in bold print:
31-6 "Under state law, the dollar amount of school taxes imposed on the
31-7 residence homestead of a person 65 years of age or older or of the
31-8 surviving spouse of such a person, if the surviving spouse was 55
31-9 years of age or older when the person died, may not be increased
31-10 above the amount paid in the first year after the person turned 65,
31-11 regardless of changes in tax rate.";
31-12 (5) contain the following statement in bold print:
31-13 "Notice of Rollback Rate: The highest tax rate the district can
31-14 adopt before requiring voter approval at an election is (the school
31-15 district rollback rate determined under Section 26.08, Tax Code).
31-16 This election will be automatically held if the district adopts a
31-17 rate in excess of the rollback rate of (the school district
31-18 rollback rate)."; and
31-19 (6) contain a section entitled "Fund Balances," which
31-20 must include the following information for the district:
31-21 (A) the "Fund Balance to Be Spent in this
31-22 Budget";
31-23 (B) the "Fund Balance Texas Education Agency
31-24 Recommends to Be Maintained";
31-25 (C) the "Designated Unreserved Fund Balance for
31-26 Future Construction"; and
31-27 (D) the "Excess Fund Balance."
32-1 (d) The comptroller by rule shall prescribe the language and
32-2 format to be used in the part of the notice required by Subsection
32-3 (c). A notice under Subsection (c) is not valid if it does not
32-4 substantially conform to the language and format prescribed by the
32-5 comptroller under this subsection.
32-6 (e) The board of trustees, at the meeting called for that
32-7 purpose, shall adopt a budget to cover all expenditures for the
32-8 school district for the next succeeding fiscal year. Any taxpayer
32-9 of the district may be present and participate in the meeting
32-10 [hearing].
32-11 (f) [(d)] The budget must be adopted before the adoption of
32-12 the tax rate for the tax year in which the fiscal year covered by
32-13 the budget begins.
32-14 SECTION 24. Subsection (b), Section 822.201, Government
32-15 Code, as amended by Chapters 330 and 1035, Acts of the 75th
32-16 Legislature, Regular Session, 1997, is amended to read as follows:
32-17 (b) "Salary and wages" as used in Subsection (a) means:
32-18 (1) normal periodic payments of money for service the
32-19 right to which accrues on a regular basis in proportion to the
32-20 service performed;
32-21 (2) amounts by which the member's salary is reduced
32-22 under a salary reduction agreement authorized by Chapter 610;
32-23 (3) amounts that would otherwise qualify as salary and
32-24 wages under Subdivision (1) but are not received directly by the
32-25 member pursuant to a good faith, voluntary written salary reduction
32-26 agreement in order to finance payments to a deferred compensation
32-27 or tax sheltered annuity program specifically authorized by state
33-1 law or to finance benefit options under a cafeteria plan qualifying
33-2 under Section 125 of the Internal Revenue Code of 1986 (26 U.S.C.
33-3 Section 125), if:
33-4 (A) the program or benefit options are made
33-5 available to all employees of the employer; and
33-6 (B) the benefit options in the cafeteria plan
33-7 are limited to one or more options that provide deferred
33-8 compensation, group health and disability insurance, group term
33-9 life insurance, dependent care assistance programs, or group legal
33-10 services plans; [and]
33-11 (4) performance pay awarded to an employee by a school
33-12 district as part of a total compensation plan approved by the board
33-13 of trustees of the district;[.]
33-14 (5) [(4)] the benefit replacement pay a person earns
33-15 under Subchapter H, Chapter 659, as added by Chapter 417, Acts of
33-16 the 74th Legislature, 1995, except as provided by Subsection (c);
33-17 and
33-18 (6) stipends paid to teachers in accordance with
33-19 Section 21.410, Education Code.
33-20 SECTION 25. Subsections (a) and (e), Section 824.203,
33-21 Government Code, are amended to read as follows:
33-22 (a) Except as provided by Subsections (c), (d), and (e), the
33-23 standard service retirement annuity is an amount computed on the
33-24 basis of the member's average annual compensation for the three
33-25 years of service, whether or not consecutive, in which the member
33-26 received the highest annual compensation, times 2.2 [two] percent
33-27 for each year of service credit in the retirement system.
34-1 (e) The annual standard service retirement annuity for a
34-2 person who immediately before retirement holds a position as a
34-3 classroom teacher or full-time librarian, or the annual death
34-4 benefit annuity based on the service of a member who at the time of
34-5 death held a position as a classroom teacher or full-time
34-6 librarian, may not be less than an amount computed on the basis of
34-7 the minimum annual salary provided by the Education Code for a
34-8 classroom teacher or full-time librarian, multiplied by 2.2 [two]
34-9 percent for each year of service credit in the retirement system.
34-10 SECTION 26. Subsection (a), Section 824.602, Government
34-11 Code, is amended to read as follows:
34-12 (a) The retirement system may not, under Section 824.601,
34-13 withhold a monthly benefit payment if the retiree is employed in a
34-14 Texas public educational institution:
34-15 (1) as a substitute only with pay not more than the
34-16 daily rate of substitute pay established by the employer and, if
34-17 the retiree is a disability retiree, the employment has not
34-18 exceeded a total of 90 days in the school year;
34-19 (2) in a position, other than as a substitute, on no
34-20 more than a one-half time basis for the month;
34-21 (3) in one or more positions on as much as a full-time
34-22 basis, if:
34-23 (A) the work occurs in a school year that begins
34-24 after the retiree's effective date of retirement; and
34-25 (B) the work occurs in no more than six months
34-26 of the school year; [and]
34-27 [(C) the retiree executes on a form and within
35-1 any deadline prescribed by the retirement system a written election
35-2 to have this exception apply for the school year in determining
35-3 whether benefits are to be suspended for employment after
35-4 retirement; or]
35-5 (4) in a position, other than as a substitute, on no
35-6 more than a one-half time basis for no more than 90 days in the
35-7 school year, if the retiree is a disability retiree; or
35-8 (5) in a position as a classroom teacher on as much as
35-9 a full-time basis, if the retiree is certified under Subchapter B,
35-10 Chapter 21, Education Code, had no promise of future public school
35-11 employment at the time of retirement, and has been separated from
35-12 service with all public schools for a period at least equal to the
35-13 minimum term of a contract under Section 21.401(a), Education Code.
35-14 SECTION 27. Subsection (a), Section 824.804, Government
35-15 Code, is amended to read as follows:
35-16 (a) On the effective date of a member's participation in the
35-17 plan, the retirement system shall make the transfers required by
35-18 Section 825.309 to the retired reserve account as if the member had
35-19 retired on that date. The retirement system shall transfer
35-20 monthly, during the period of the member's participation in the
35-21 plan, from the retired reserve account to an account for the member
35-22 in the deferred retirement option account an amount equal to 79
35-23 percent of the amount the member would have received that month
35-24 under a standard service retirement annuity if the member had
35-25 retired on the effective date of plan participation under the
35-26 multiplier currently in effect.
35-27 SECTION 28. Subsection (c), Section 26.04, Tax Code, is
36-1 amended to read as follows:
36-2 (c) An officer or employee designated by the governing body
36-3 shall calculate the effective tax rate and the rollback tax rate
36-4 for the unit, where:
36-5 (1) "Effective tax rate" means a rate expressed in
36-6 dollars per $100 of taxable value calculated according to the
36-7 following formula:
36-8 EFFECTIVE TAX RATE = (LAST YEAR'S LEVY - LOST PROPERTY LEVY)
36-9 (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)
36-10 ; and
36-11 (2) "Rollback tax rate" means a rate expressed in
36-12 dollars per $100 of taxable value calculated according to:
36-13 (A) the following formula for a taxing unit
36-14 other than a school district:
36-15 ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND OPERATIONS RATE
36-16 x 1.08) + CURRENT DEBT RATE
36-17 ; or
36-18 (B) Section 26.08 for a school district.
36-19 SECTION 29. Subsection (d), Section 26.05, Tax Code, is
36-20 amended to read as follows:
36-21 (d) The governing body may not adopt a tax rate that if
36-22 applied to the total taxable value would impose an amount of taxes
36-23 that exceeds last year's levy until it has held a public hearing on
36-24 the proposed tax rate and:
36-25 (1) if the taxing unit is not a school district, has
36-26 otherwise complied with Section 26.06; or
36-27 (2) if the taxing unit is a school district, has
37-1 complied with Section 44.004, Education Code, and Section 26.06(a).
37-2 SECTION 30. Section 26.06, Tax Code, is amended by adding
37-3 Subsection (g) to read as follows:
37-4 (g) This section, other than Subsection (a), does not apply
37-5 to a school district. A school district shall provide notice of a
37-6 public hearing on a tax increase as required by Section 44.004,
37-7 Education Code.
37-8 SECTION 31. Section 26.08, Tax Code, is amended by amending
37-9 Subsection (i) and adding Subsections (j) and (k) to read as
37-10 follows:
37-11 (i) For purposes of this section, the rollback tax rate of a
37-12 school district is the sum of:
37-13 (1) the tax rate that, applied to the current total
37-14 value for the district, would impose taxes in an amount that, when
37-15 added to state funds that would be distributed to the district
37-16 under Chapter 42, Education Code, for the school year beginning in
37-17 the current tax year using that tax rate, would provide the same
37-18 amount of state funds distributed under Chapter 42 and maintenance
37-19 and operations taxes of the district per student in weighted
37-20 average daily attendance for that school year that would have been
37-21 [was] available to the district in the preceding year if the
37-22 funding elements for Chapters 41 and 42, Education Code, for the
37-23 current year had been in effect for the preceding year;
37-24 (2) the rate of $0.06 [$0.08] per $100 of taxable
37-25 value; and
37-26 (3) the district's current debt rate.
37-27 (j) For purposes of this section, for the 1999 tax year, the
38-1 rollback tax rate of a school district is the sum of:
38-2 (1) the tax rate that, applied to the current total
38-3 value for the district, would impose taxes in an amount that, when
38-4 added to the amount of state funds that would be distributed to the
38-5 district under Chapter 42, Education Code, for the 1999-2000 school
38-6 year using that tax rate, would provide the same amount of state
38-7 funds distributed under Chapter 42 and maintenance and operations
38-8 taxes of the district per student in weighted average daily
38-9 attendance for the 1999-2000 school year that would have been
38-10 available to the district in the 1998-1999 school year if the
38-11 funding elements for Chapters 41 and 42, Education Code, for the
38-12 1999-2000 school year had been in effect for the 1998-1999 school
38-13 year;
38-14 (2) the rate of $0.03 per $100 of taxable value; and
38-15 (3) the district's current debt rate.
38-16 (k) Subsection (j) and this subsection expire September 1,
38-17 2000.
38-18 SECTION 32. (a) Subsection (c), Section 42.251, and
38-19 Subsection (e), Section 42.252, Education Code, are repealed.
38-20 (b) Subsection (f), Section 26.08, Tax Code, is repealed.
38-21 SECTION 33. (a) Monthly payments of a death or retirement
38-22 benefit annuity by the Teacher Retirement System of Texas are
38-23 increased beginning with the payment due at the end of September,
38-24 1999.
38-25 (b) The increase does not apply to payments under Subsection
38-26 (a), Section 824.304, Section 824.404, or Section 824.501,
38-27 Government Code.
39-1 (c) Except as provided by Subsection (d) of this section,
39-2 the amount of the monthly increase is computed by multiplying the
39-3 previous monthly benefit by a percentage determined in accordance
39-4 with the following table:
39-5 LATEST RETIREMENT DATE OR, IF APPLICABLE, DATE OF DEATH INCREASE
39-6 Before September 1, 1973 5%
39-7 On or after September 1, 1973, but before September 1, 1974 6%
39-8 On or after September 1, 1974, but before September 1, 1979 5%
39-9 On or after September 1, 1979, but before September 1, 1981 6%
39-10 On or after September 1, 1981, but before September 1, 1982 7%
39-11 On or after September 1, 1982, but before September 1, 1983 6%
39-12 On or after September 1, 1983, but before September 1, 1990 7%
39-13 On or after September 1, 1990, but before September 1, 1991 6%
39-14 On or after September 1, 1991, but before September 1, 1992 7%
39-15 On or after September 1, 1992, but before September 1, 1995 6%
39-16 On or after September 1, 1995, but before September 1, 1997 5%
39-17 On or after September 1, 1997, but before September 1, 1998 2%
39-18 (d) After making the computations required by Subsection (c)
39-19 of this section, the Teacher Retirement System of Texas shall
39-20 increase each annuity payable by the system on September 1, 1999,
39-21 other than an annuity under Subsection (a), Section 824.304,
39-22 Section 824.404, or Section 824.501, Government Code, by 10
39-23 percent, which is a benefit equivalent to the benefit provided by
39-24 using a 2.2 percent multiplier for computing annuities.
39-25 SECTION 34. The State Board for Educator Certification shall
39-26 propose rules establishing requirements and prescribing an
39-27 examination for master reading teacher certification not later that
40-1 January 1, 2001.
40-2 SECTION 35. Except as otherwise provided by this Act, this
40-3 Act takes effect September 1, 1999.
40-4 SECTION 36. The importance of this legislation and the
40-5 crowded condition of the calendars in both houses create an
40-6 emergency and an imperative public necessity that the
40-7 constitutional rule requiring bills to be read on three several
40-8 days in each house be suspended, and this rule is hereby suspended.
40-9 * * * * *