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A BILL TO BE ENTITLED
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AN ACT
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relating to elimination of certain property taxes for school |
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district maintenance and operations and providing public education |
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funding through an increase in the state sales and use tax rate. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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ARTICLE 1. PUBLIC SCHOOL FINANCE |
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SECTION 1.01. Section 21.402(a), Education Code, as |
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effective September 1, 2017, is amended to read as follows: |
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(a) Except as provided by Subsection (e-1) or (f), a school |
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district must pay each classroom teacher, full-time librarian, |
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full-time school counselor certified under Subchapter B, or |
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full-time school nurse not less than the minimum monthly salary, |
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based on the employee's level of experience in addition to other |
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factors, as determined by commissioner rule, determined by the |
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following formula: |
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MS = SF x FS |
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where: |
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"MS" is the minimum monthly salary; |
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"SF" is the applicable salary factor specified by Subsection |
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(c); and |
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"FS" is the amount, as determined by the commissioner under |
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Subsection (b), of the basic allotment as provided by Section |
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42.101(a) or (b) [for a school district with a maintenance and
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operations tax rate at least equal to the state maximum compressed
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tax rate, as defined by Section 42.101(a)]. |
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SECTION 1.02. Section 29.008(b), Education Code, is amended |
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to read as follows: |
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(b) Except as provided by Subsection (c), costs of an |
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approved contract for residential placement may be paid from a |
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combination of federal and[,] state[, and local] funds. [The local
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share of the total contract cost for each student is that portion of
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the local tax effort that exceeds the district's local fund
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assignment under Section 42.252, divided by the average daily
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attendance in the district. If the contract involves a private
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facility, the state share of the total contract cost is that amount
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remaining after subtracting the local share. If the contract
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involves a public facility, the state share is that amount
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remaining after subtracting the local share from the portion of the
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contract that involves the costs of instructional and related
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services. For purposes of this subsection, "local tax effort"
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means the total amount of money generated by taxes imposed for debt
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service and maintenance and operation less any amounts paid into a
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tax increment fund under Chapter 311, Tax Code.] |
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SECTION 1.03. Sections 29.203(b) and (g), Education Code, |
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are 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. A [If the district has a wealth per student
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greater than the guaranteed wealth level but less than the
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equalized wealth level, a] school district is entitled under rules |
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adopted by the commissioner to additional state aid in an amount |
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equal to the difference between the cost to the district of |
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providing services to a student using a public education grant and |
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the sum of the state aid received because of the allotment under |
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Section 42.157 and money from the available school fund |
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attributable to the student. |
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(g) In this section, "guaranteed[:
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[(1)
"Equalized wealth level" has the meaning assigned
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by Section 41.001.
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[(2) "Guaranteed] wealth level" means a wealth per |
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student equal to the dollar amount guaranteed level of state and |
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local funds per weighted student per cent of tax effort, as provided |
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by Section 42.302, multiplied by 10,000. |
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[(3)
"Wealth per student" has the meaning assigned by
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Section 41.001.] |
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SECTION 1.04. 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 enrichment [maintenance and operations] tax |
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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 1.05. Section 42.101(a), Education Code, is amended |
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to read as follows: |
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(a) For each student in average daily attendance, not |
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including the time students spend each day in special education |
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programs in an instructional arrangement other than mainstream or |
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career and technology education programs, for which an additional |
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allotment is made under Subchapter C, a district is entitled to an |
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allotment equal to [the lesser of] $4,765 [or the amount that
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results from the following formula:
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[A = $4,765 X (DCR/MCR)
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[where:
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["A" is the allotment to which a district is entitled;
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["DCR" is the district's compressed tax rate, which is the
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product of the state compression percentage, as determined under
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Section 42.2516, multiplied by the maintenance and operations tax
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rate adopted by the district for the 2005 tax year; and
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["MCR" is the state maximum compressed tax rate, which is the
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product of the state compression percentage, as determined under
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Section 42.2516, multiplied by $1.50]. |
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SECTION 1.06. Section 42.251(b), Education Code, is amended |
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to read as follows: |
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(b) The program shall be financed by: |
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(1) [ad valorem tax revenue generated by an equalized
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uniform school district effort;
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[(2)] ad valorem tax revenue generated by local school |
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district effort as provided by Subchapter F [in excess of the
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equalized uniform school district effort]; |
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(2) [(3)] state available school funds distributed in |
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accordance with law; and |
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(3) [(4)] state funds appropriated for the purposes of |
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public school education and allocated to each district in an amount |
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sufficient to finance the cost of each district's Foundation School |
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Program not covered by other funds specified in this subsection. |
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SECTION 1.07. Section 42.2521(a), Education Code, is |
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amended to read as follows: |
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(a) For purposes of Chapter [Chapters 41 and] 46 and this |
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chapter, and to the extent money specifically authorized to be used |
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under this section is available, the commissioner shall adjust the |
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taxable value of property in a school district that, due to factors |
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beyond the control of the board of trustees, experiences a rapid |
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decline in the tax base used in calculating taxable values in excess |
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of four percent of the tax base used in the preceding year. |
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SECTION 1.08. Section 42.2523(a), Education Code, is |
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amended to read as follows: |
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(a) For purposes of Chapter [Chapters 41 and] 46 and this |
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chapter, the commissioner shall adjust the taxable value of |
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property of a school district all or part of which is located in an |
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area declared a disaster area by the governor under Chapter 418, |
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Government Code, as necessary to ensure that the district receives |
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funding based as soon as possible on property values as affected by |
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the disaster. |
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SECTION 1.09. Sections 42.2524(c) and (d), Education Code, |
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are amended to read as follows: |
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(c) The commissioner may provide reimbursement under this |
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section only if funds are available for that purpose from [as
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follows]: |
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(1) [reimbursement for a school district not required
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to take action under Chapter 41 may be provided from:
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[(A)] amounts appropriated for that purpose, |
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including amounts appropriated for those districts for that purpose |
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to the disaster contingency fund established under Section 418.073, |
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Government Code; or |
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(2) [(B)] Foundation School Program funds available |
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for that purpose, based on a determination by the commissioner that |
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the amount appropriated for the Foundation School Program, |
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including the facilities component as provided by Chapter 46, |
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exceeds the amount to which districts are entitled under this |
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chapter and Chapter 46[; and
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[(2)
reimbursement for a school district required to
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take action under Chapter 41 may be provided from funds described by
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Subdivision (1)(B) if funds remain available after fully
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reimbursing each school district described by Subdivision (1) for
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its disaster remediation costs]. |
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(d) If the amount of money available for purposes of |
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reimbursing school districts [not required to take action under
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Chapter 41] is not sufficient to fully reimburse each district's |
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disaster remediation costs, the commissioner shall reduce the |
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amount of assistance provided to each of those districts |
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proportionately. [If the amount of money available for purposes of
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reimbursing school districts required to take action under Chapter
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41 is not sufficient to fully reimburse each district's disaster
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remediation costs, the commissioner shall reduce the amount of
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assistance provided to each of those districts proportionately.] |
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SECTION 1.10. Sections 42.253(a) and (c), Education Code, |
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are amended to read as follows: |
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(a) For each school year the commissioner shall determine: |
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(1) the amount of money to which a school district is |
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entitled under Subchapters B and C; |
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(2) the amount of money to which a school district is |
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entitled under Subchapter F; |
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(3) the amount of money allocated to the district from |
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the available school fund; and |
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(4) [the amount of each district's tier one local share
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under Section 42.252; and
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[(5)] the amount of each district's tier two local |
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share under Section 42.302. |
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(c) Each school district is entitled to an amount equal to |
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the difference for that district between the sum of Subsections |
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(a)(1) and (a)(2) and the sum of Subsections (a)(3) and[,] (a)(4)[,
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and (a)(5)]. |
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SECTION 1.11. Section 42.253(h), Education Code, as |
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effective September 1, 2017, is amended to read as follows: |
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(h) If the amount appropriated for the Foundation School |
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Program for the second year of a state fiscal biennium is less than |
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the amount to which school districts and open-enrollment charter |
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schools are entitled for that year, the commissioner shall certify |
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the amount of the difference to the Legislative Budget Board not |
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later than January 1 of the second year of the state fiscal |
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biennium. The Legislative Budget Board shall propose to the |
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legislature that the certified amount be transferred to the |
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foundation school fund from the economic stabilization fund and |
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appropriated for the purpose of increases in allocations under this |
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subsection. If the legislature fails during the regular session to |
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enact the proposed transfer and appropriation and there are not |
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funds available under Subsection (j), the commissioner shall adjust |
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the total amounts due to each school district and open-enrollment |
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charter school under this chapter [and the total amounts necessary
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for each school district to comply with the requirements of Chapter
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41] by an amount determined by applying to each district and school |
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the same percentage adjustment to the total amount of state and |
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local revenue due to the district or school under this chapter [and
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Chapter 41] so that the total amount of the adjustment to all |
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districts and schools results in an amount equal to the total |
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adjustment necessary. The following fiscal year,[:
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[(1)] a district's or school's entitlement under this |
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section is increased by an amount equal to the adjustment made under |
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this subsection[; and
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[(2)
the amount necessary for a district to comply
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with the requirements of Chapter 41 is reduced by an amount
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necessary to ensure a district's full recovery of the adjustment
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made under this subsection]. |
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SECTION 1.12. Sections 42.2531(a), (b), and (c), Education |
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Code, are amended to read as follows: |
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(a) The commissioner may make adjustments to amounts due to |
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a school district under this chapter or Chapter 46, [or to amounts
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necessary for a district to comply with the requirements of Chapter
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41,] as provided by this section. |
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(b) A school district that has a major taxpayer, as |
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determined by the commissioner, that because of a protest of the |
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valuation of the taxpayer's property fails to pay all or a portion |
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of the ad valorem taxes due to the district may apply to the |
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commissioner to have the district's taxable value of property or ad |
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valorem tax collections adjusted for purposes of this chapter or |
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Chapter [41 or] 46. The commissioner may make the adjustment only |
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to the extent the commissioner determines that making the |
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adjustment will not: |
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(1) in the fiscal year in which the adjustment is made, |
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cause the amount to which school districts are entitled under this |
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chapter to exceed the amount appropriated for purposes of the |
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Foundation School Program for that year; and |
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(2) if the adjustment is made in the first year of a |
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state fiscal biennium, cause the amount to which school districts |
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are entitled under this chapter for the second year of the biennium |
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to exceed the amount appropriated for purposes of the Foundation |
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School Program for that year. |
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(c) The commissioner shall recover the benefit of any |
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adjustment made under this section by making offsetting adjustments |
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in the school district's taxable value of property or ad valorem tax |
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collections for purposes of this chapter or Chapter [41 or] 46 on a |
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final determination of the taxable value of property that was the |
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basis of the original adjustment, or in the second school year |
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following the year in which the adjustment is made, whichever is |
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earlier. |
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SECTION 1.13. Section 42.257(b), Education Code, is amended |
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to read as follows: |
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(b) If the district would have received a greater amount |
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from the foundation school fund for the applicable school year |
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using the adjusted value, the commissioner shall add the difference |
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to subsequent distributions to the district from the foundation |
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school fund. [An adjustment does not affect the local fund
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assignment of any other district.] |
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SECTION 1.14. Section 42.260(b), Education Code, as |
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effective September 1, 2017, is amended to read as follows: |
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(b) The amount of additional funds to which each school |
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district or participating charter school is entitled due to the |
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increases in formula funding made by H.B. No. 3343, Acts of the 77th |
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Legislature, Regular Session, 2001, and any subsequent legislation |
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amending the provisions amended by that Act that increase formula |
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funding under [Chapter 41 and] this chapter to school districts and |
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charter schools is available for purposes of Subsection (c). |
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SECTION 1.15. Sections 42.302(a), (a-1), (a-2), (b), and |
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(d), Education Code, are amended to read as follows: |
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(a) Each school district is guaranteed a specified amount |
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per weighted student in state and local funds for each cent of tax |
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effort [over that required for the district's local fund
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assignment] up to the maximum level specified in this subchapter. |
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The amount of state support, subject only to the maximum amount |
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under Section 42.303, is determined by the formula: |
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GYA = (GL X WADA X DTR X 100) - LR |
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where: |
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"GYA" is the guaranteed yield amount of state funds to be |
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allocated to the district; |
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"GL" is the dollar amount guaranteed level of state and local |
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funds per weighted student per cent of tax effort, which is an |
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amount described by Subsection (a-1) or a greater amount for any |
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year provided by appropriation; |
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"WADA" is the number of students in weighted average daily |
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attendance, which is calculated by dividing the sum of the school |
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district's allotments under Subchapters B and C, less any allotment |
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to the district for transportation, any allotment under Section |
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42.158 or 42.160, and 50 percent of the adjustment under Section |
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42.102, by the basic allotment for the applicable year; |
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"DTR" is the district enrichment tax rate of the school |
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district, which is determined by subtracting the amounts specified |
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by Subsection (b) from the total amount of enrichment [maintenance
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and operations] taxes collected by the school district for the |
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applicable school year and dividing the difference by the quotient |
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of the district's taxable value of property as determined under |
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Subchapter M, Chapter 403, Government Code, or, if applicable, |
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under Section 42.2521, divided by 100; and |
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"LR" is the local revenue, which is determined by multiplying |
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"DTR" by the quotient of the district's taxable value of property as |
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determined under Subchapter M, Chapter 403, Government Code, or, if |
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applicable, under Section 42.2521, divided by 100. |
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(a-1) For purposes of Subsection (a), the dollar amount |
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guaranteed level of state and local funds per weighted student per |
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cent of tax effort ("GL") for a school district is: |
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(1) the greater of the amount of district tax revenue |
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per weighted student per cent of tax effort that would be available |
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to the Austin Independent School District, as determined by the |
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commissioner in cooperation with the Legislative Budget Board, if |
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the reduction of the limitation on tax increases as provided by |
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Section 11.26(a-1), (a-2), or (a-3), Tax Code, did not apply, or the |
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amount of district tax revenue per weighted student per cent of tax |
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effort used for purposes of this subdivision in the preceding |
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school year, for the first six cents of [by which] the district's |
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enrichment [maintenance and operations] tax rate [exceeds the rate
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equal to the sum of the product of the state compression percentage,
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as determined under Section 42.2516, multiplied by the maintenance
|
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and operations tax rate adopted by the district for the 2005 tax
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year and any additional tax effort included in calculating the
|
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district's compressed tax rate under Section 42.101(a-1)]; and |
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(2) $31.95, for the district's enrichment [maintenance
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and operations] tax effort that exceeds the amount of tax effort |
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described by Subdivision (1). |
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(a-2) The limitation on district enrichment tax rate |
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("DTR") under Section 42.303 does not apply to the district's |
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[maintenance and operations] tax effort described by Subsection |
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(a-1)(1). |
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(b) In computing the district enrichment tax rate of a |
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school district, the total amount of enrichment [maintenance and
|
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operations] taxes collected by the school district does not include |
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the amount of[:
|
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[(1)
the district's local fund assignment under
|
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Section 42.252; or
|
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[(2)] taxes paid into a tax increment fund under |
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Chapter 311, Tax Code. |
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(d) For purposes of this section, the total amount of |
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enrichment [maintenance and operations] taxes collected for an |
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applicable school year by a school district with alternate tax |
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dates, as authorized by Section 26.135, Tax Code, is the amount of |
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enrichment taxes collected on or after January 1 of the year in |
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which the school year begins and not later than December 31 of the |
|
same year. |
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SECTION 1.16. Section 42.303, Education Code, is amended to |
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read as follows: |
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Sec. 42.303. LIMITATION ON ENRICHMENT TAX RATE. The |
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district enrichment tax rate ("DTR") under Section 42.302 may not |
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exceed $0.17 [the amount] per $100 of valuation [by which the
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maximum rate permitted under Section 45.003 exceeds the rate used
|
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to determine the district's local share under Section 42.252, or a
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greater amount for any year provided by appropriation]. |
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SECTION 1.17. Sections 44.004(c) and (c-1), Education Code, |
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are amended to read as follows: |
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(c) The notice of public meeting to discuss and adopt the |
|
budget and the proposed tax rate may not be smaller than one-quarter |
|
page of a standard-size or a tabloid-size newspaper, and the |
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headline on the notice must be in 18-point or larger type. Subject |
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to Subsection (d), the notice must: |
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(1) contain a statement in the following form: |
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"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE |
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"The (name of school district) will hold a public meeting at |
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(time, date, year) in (name of room, building, physical location, |
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city, state). The purpose of this meeting is to discuss the school |
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district's budget that will determine the tax rate that will be |
|
adopted. Public participation in the discussion is invited." The |
|
statement of the purpose of the meeting must be in bold type. In |
|
reduced type, the notice must state: "The tax rate that is |
|
ultimately adopted at this meeting or at a separate meeting at a |
|
later date may not exceed the proposed rate shown below unless the |
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district publishes a revised notice containing the same information |
|
and comparisons set out below and holds another public meeting to |
|
discuss the revised notice."; |
|
(2) contain a section entitled "Comparison of Proposed |
|
Budget with Last Year's Budget," which must show the difference, |
|
expressed as a percent increase or decrease, as applicable, in the |
|
amounts budgeted for the preceding fiscal year and the amount |
|
budgeted for the fiscal year that begins in the current tax year for |
|
each of the following: |
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(A) enrichment [maintenance and operations]; |
|
(B) debt service; and |
|
(C) total expenditures; |
|
(3) contain a section entitled "Total Appraised Value |
|
and Total Taxable Value," which must show the total appraised value |
|
and the total taxable value of all property and the total appraised |
|
value and the total taxable value of new property taxable by the |
|
district in the preceding tax year and the current tax year as |
|
calculated under Section 26.04, Tax Code; |
|
(4) contain a statement of the total amount of the |
|
outstanding and unpaid bonded indebtedness of the school district; |
|
(5) contain a section entitled "Comparison of Proposed |
|
Rates with Last Year's Rates," which must: |
|
(A) show in rows the tax rates described by |
|
Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of |
|
property, for columns entitled "Enrichment," ["Maintenance &
|
|
Operations,"] "Interest & Sinking Fund," and "Total," which is the |
|
sum of "Enrichment" ["Maintenance & Operations"] and "Interest & |
|
Sinking Fund": |
|
(i) the school district's "Last Year's |
|
Rate"; |
|
(ii) the "Rate to Maintain Same Level of |
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Enrichment [Maintenance & Operations] Revenue & Pay Debt Service," |
|
which: |
|
(a) in the case of "Enrichment," |
|
["Maintenance & Operations,"] is the tax rate that, when applied to |
|
the current taxable value for the district, as certified by the |
|
chief appraiser under Section 26.01, Tax Code, and as adjusted to |
|
reflect changes made by the chief appraiser as of the time the |
|
notice is prepared, would impose taxes in an amount that, when added |
|
to state funds to be distributed to the district under Subchapter F, |
|
Chapter 42, would provide the same amount of enrichment funds |
|
[maintenance and operations taxes and state funds distributed under
|
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Chapter 42] per student in average daily attendance for the |
|
applicable school year that was available to the district in the |
|
preceding school year; and |
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(b) in the case of "Interest & Sinking |
|
Fund," is the tax rate that, when applied to the current taxable |
|
value for the district, as certified by the chief appraiser under |
|
Section 26.01, Tax Code, and as adjusted to reflect changes made by |
|
the chief appraiser as of the time the notice is prepared, and when |
|
multiplied by the district's anticipated collection rate, would |
|
impose taxes in an amount that, when added to state funds to be |
|
distributed to the district under Chapter 46 and any excess taxes |
|
collected to service the district's debt during the preceding tax |
|
year but not used for that purpose during that year, would provide |
|
the amount required to service the district's debt; and |
|
(iii) the "Proposed Rate"; |
|
(B) contain fourth and fifth columns aligned with |
|
the columns required by Paragraph (A) that show, for each row |
|
required by Paragraph (A): |
|
(i) the "Local Revenue per Student," which |
|
is computed by multiplying the district's total taxable value of |
|
property, as certified by the chief appraiser for the applicable |
|
school year under Section 26.01, Tax Code, and as adjusted to |
|
reflect changes made by the chief appraiser as of the time the |
|
notice is prepared, by the total tax rate, and dividing the product |
|
by the number of students in average daily attendance in the |
|
district for the applicable school year; and |
|
(ii) the "State Revenue per Student," which |
|
is computed by determining the amount of state aid received or to be |
|
received by the district under Chapters 42, 43, and 46 and dividing |
|
that amount by the number of students in average daily attendance in |
|
the district for the applicable school year; and |
|
(C) contain an asterisk after each calculation |
|
for "Interest & Sinking Fund" and a footnote to the section that, in |
|
reduced type, states "The Interest & Sinking Fund tax revenue is |
|
used to pay for bonded indebtedness on construction, equipment, or |
|
both. The bonds, and the tax rate necessary to pay those bonds, |
|
were approved by the voters of this district."; |
|
(6) contain a section entitled "Comparison of Proposed |
|
Levy with Last Year's Levy on Average Residence," which must: |
|
(A) show in rows the information described by |
|
Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns |
|
entitled "Last Year" and "This Year": |
|
(i) "Average Market Value of Residences," |
|
determined using the same group of residences for each year; |
|
(ii) "Average Taxable Value of Residences," |
|
determined after taking into account the limitation on the |
|
appraised value of residences under Section 23.23, Tax Code, and |
|
after subtracting all homestead exemptions applicable in each year, |
|
other than exemptions available only to disabled persons or persons |
|
65 years of age or older or their surviving spouses, and using the |
|
same group of residences for each year; |
|
(iii) "Last Year's Rate Versus Proposed |
|
Rate per $100 Value"; and |
|
(iv) "Taxes Due on Average Residence," |
|
determined using the same group of residences for each year; and |
|
(B) contain the following information: |
|
"Increase (Decrease) in Taxes" expressed in dollars and cents, |
|
which is computed by subtracting the "Taxes Due on Average |
|
Residence" for the preceding tax year from the "Taxes Due on Average |
|
Residence" for the current tax year; |
|
(7) contain the following statement in bold print: |
|
"Under state law, the dollar amount of school taxes imposed on the |
|
residence of a person 65 years of age or older or of the surviving |
|
spouse of such a person, if the surviving spouse was 55 years of age |
|
or older when the person died, may not be increased above the amount |
|
paid in the first year after the person turned 65, regardless of |
|
changes in tax rate or property value."; |
|
(8) contain the following statement in bold print: |
|
"Notice of Rollback Rate: The highest tax rate the district can |
|
adopt before requiring voter approval at an election is (the school |
|
district rollback rate determined under Section 26.08, Tax Code). |
|
This election will be automatically held if the district adopts a |
|
rate in excess of the rollback rate of (the school district rollback |
|
rate)."; and |
|
(9) contain a section entitled "Fund Balances," which |
|
must include the estimated amount of interest and sinking fund |
|
balances and the estimated amount of maintenance and operation or |
|
general fund balances remaining at the end of the current fiscal |
|
year that are not encumbered with or by corresponding debt |
|
obligation, less estimated funds necessary for the operation of the |
|
district before the receipt of the first payment under Chapter 42 in |
|
the succeeding school year. |
|
(c-1) The notice described by Subsection (c) must state in a |
|
distinct row or on a separate or individual line for each of the |
|
following taxes: |
|
(1) the proposed rate of the school district's |
|
enrichment [maintenance] tax described by Section 45.003, under the |
|
heading "Enrichment [Maintenance] Tax"; and |
|
(2) if the school district has issued ad valorem tax |
|
bonds under Section 45.001, the proposed rate of the tax to pay for |
|
the bonds, under the heading "School Debt Service Tax Approved by |
|
Local Voters." |
|
SECTION 1.18. The heading to Subchapter A, Chapter 45, |
|
Education Code, is amended to read as follows: |
|
SUBCHAPTER A. TAX BONDS AND ENRICHMENT [MAINTENANCE] TAXES |
|
SECTION 1.19. Section 45.002, Education Code, is amended to |
|
read as follows: |
|
Sec. 45.002. ENRICHMENT [MAINTENANCE] TAXES. The governing |
|
board of an independent school district, including the city council |
|
or commission that has jurisdiction over a municipally controlled |
|
independent school district, the governing board of a rural high |
|
school district, and the commissioners court of a county, on behalf |
|
of each common school district under its jurisdiction, may levy, |
|
assess, and collect annual ad valorem taxes for the further |
|
enrichment [maintenance] of public schools in the district, subject |
|
to Section 45.003. |
|
SECTION 1.20. Section 45.003(d), Education Code, is amended |
|
to read as follows: |
|
(d) A proposition submitted to authorize the levy of |
|
enrichment [maintenance] taxes must include the question of whether |
|
the governing board or commissioners court may levy, assess, and |
|
collect annual ad valorem taxes for the enrichment [further
|
|
maintenance] of public schools, at a rate not to exceed the rate |
|
stated in the proposition. For any year, the enrichment |
|
[maintenance] tax rate per $100 of taxable value adopted by the |
|
district may not exceed the rate [equal to the sum] of $0.17 [and
|
|
the product of the state compression percentage, as determined
|
|
under Section 42.2516, multiplied by $1.50]. |
|
SECTION 1.21. Section 45.104(a), Education Code, is amended |
|
to read as follows: |
|
(a) The board of trustees of any school district may pledge |
|
its delinquent taxes levied for maintenance purposes for specific |
|
past[, current, and future] school years or levied for enrichment |
|
purposes for specific past, current, and future school years as |
|
security for a loan, and may evidence any such loan with negotiable |
|
notes, and the delinquent taxes pledged shall be applied against |
|
the principal and interest of the loan. Negotiable notes issued |
|
under this subsection must mature not more than 20 years from their |
|
date. |
|
SECTION 1.22. Section 45.108(a), Education Code, is amended |
|
to read as follows: |
|
(a) Independent or consolidated school districts may borrow |
|
money for the purpose of paying maintenance expenses and may |
|
evidence those loans with negotiable or nonnegotiable notes, except |
|
that the loans may not at any time exceed 75 percent of the previous |
|
year's income. The notes may be payable from and secured by a lien |
|
on and pledge of any available funds of the district, including |
|
proceeds of an enrichment [a maintenance] tax. The term |
|
"maintenance expenses" or "maintenance expenditures" as used in |
|
this section means any lawful expenditure of the school district |
|
other than payment of principal of and interest on bonds. The term |
|
includes expenditures relating to notes issued to refund notes |
|
previously issued under this section if the refunding notes are |
|
coterminous with the refunded obligation. The term also includes |
|
all costs incurred in connection with environmental cleanup and |
|
asbestos cleanup and removal programs implemented by school |
|
districts or in connection with the maintenance, repair, |
|
rehabilitation, or replacement of heating, air conditioning, |
|
water, sanitation, roofing, flooring, electric, or other building |
|
systems of existing school properties. Notes issued pursuant to |
|
this section may be issued to mature in not more than 20 years from |
|
their date. Notes issued for a term longer than one year must be |
|
treated as "debt" as defined in Section 26.012(7), Tax Code. |
|
SECTION 1.23. Section 45.109(c), Education Code, is amended |
|
to read as follows: |
|
(c) The consideration for a contract under this section may |
|
be paid from any source available to the independent school |
|
district. [If voted as provided by this section, the district may
|
|
pledge to the payment of the contract an annual maintenance tax in
|
|
an amount sufficient, without limitation, to provide all of the
|
|
consideration. If voted and pledged, the maintenance tax shall be
|
|
assessed, levied, and collected annually in the same manner as
|
|
provided by general law applicable to independent school districts
|
|
for other maintenance taxes.] |
|
SECTION 1.24. Section 45.156(c), Education Code, is amended |
|
to read as follows: |
|
(c) The consideration payable by the district under a |
|
contract may be paid from any source available to the district. [If
|
|
voted, the district may pledge to the payment of the contract an
|
|
annual maintenance tax in an amount sufficient, without limitation,
|
|
to provide all or part of the consideration. If voted and pledged,
|
|
the maintenance tax shall be assessed, levied, and collected
|
|
annually in the same manner as provided by general law applicable to
|
|
independent school districts for other maintenance taxes. A
|
|
maintenance tax may not be pledged to the payment of any contract or
|
|
assessed, levied, or collected unless an election is held in the
|
|
district, and the maintenance tax for that purpose is favorably
|
|
voted by a majority of the qualified voters of the district. The
|
|
election order for an election under this subsection must include
|
|
the polling place or places and any other matters considered
|
|
advisable by the board of trustees.] |
|
SECTION 1.25. 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 required to reduce its wealth per student under
|
|
Chapter 41, the commissioner shall increase amounts due from the
|
|
district 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 1.26. 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 1.27. 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 1.28. 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 1.29. 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 1.30. Section 26.05(b), Tax Code, is amended to |
|
read as follows: |
|
(b) A taxing unit may not impose property taxes in any year |
|
until the governing body has adopted a tax rate for that year, and |
|
the annual tax rate must be set by ordinance, resolution, or order, |
|
depending on the method prescribed by law for adoption of a law by |
|
the governing body. The vote on the ordinance, resolution, or order |
|
setting the tax rate must be separate from the vote adopting the |
|
budget. For a taxing unit other than a school district, the vote on |
|
the ordinance, resolution, or order setting a tax rate that exceeds |
|
the effective tax rate must be a record vote, and at least 60 |
|
percent of the members of the governing body must vote in favor of |
|
the ordinance, resolution, or order. For a school district, the |
|
vote on the ordinance, resolution, or order setting a tax rate that |
|
exceeds the sum of the effective [maintenance and operations] tax |
|
rate of the district [as determined under Section 26.08(i)] and the |
|
district's current debt rate must be a record vote, and at least 60 |
|
percent of the members of the governing body must vote in favor of |
|
the ordinance, resolution, or order. A motion to adopt an |
|
ordinance, resolution, or order setting a tax rate that exceeds the |
|
effective tax rate must be made in the following form: "I move that |
|
the property tax rate be increased by the adoption of a tax rate of |
|
(specify tax rate), which is effectively a (insert percentage by |
|
which the proposed tax rate exceeds the effective tax rate) percent |
|
increase in the tax rate." If the ordinance, resolution, or order |
|
sets a tax rate that, if applied to the total taxable value, will |
|
impose an amount of taxes to fund maintenance and operation |
|
expenditures of the taxing unit that exceeds the amount of taxes |
|
imposed for that purpose in the preceding year, the taxing unit |
|
must: |
|
(1) include in the ordinance, resolution, or order in |
|
type larger than the type used in any other portion of the document: |
|
(A) the following statement: "THIS TAX RATE WILL |
|
RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S |
|
TAX RATE."; and |
|
(B) if the tax rate exceeds the effective |
|
maintenance and operations rate, the following statement: "THE TAX |
|
RATE WILL EFFECTIVELY BE RAISED BY (INSERT PERCENTAGE BY WHICH THE |
|
TAX RATE EXCEEDS THE EFFECTIVE MAINTENANCE AND OPERATIONS RATE) |
|
PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A |
|
$100,000 HOME BY APPROXIMATELY $(Insert amount)."; and |
|
(2) include on the home page of any Internet website |
|
operated by the unit: |
|
(A) the following statement: "(Insert name of |
|
unit) ADOPTED A TAX RATE THAT WILL RAISE MORE TAXES FOR MAINTENANCE |
|
AND OPERATIONS THAN LAST YEAR'S TAX RATE"; and |
|
(B) if the tax rate exceeds the effective |
|
maintenance and operations rate, the following statement: "THE TAX |
|
RATE WILL EFFECTIVELY BE RAISED BY (INSERT PERCENTAGE BY WHICH THE |
|
TAX RATE EXCEEDS THE EFFECTIVE MAINTENANCE AND OPERATIONS RATE) |
|
PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A |
|
$100,000 HOME BY APPROXIMATELY $(Insert amount)." |
|
SECTION 1.31. 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 1.32. The following provisions are repealed: |
|
(1) Section 13.054(f), Education Code; |
|
(2) Chapter 41, Education Code; |
|
(3) Sections 42.101(a-1) and (c), Education Code; |
|
(4) Section 42.158(e), Education Code; |
|
(5) Section 42.160(b), Education Code; |
|
(6) Section 42.2516, Education Code, as effective |
|
September 1, 2017; |
|
(7) Sections 42.2518 and 42.252, Education Code; |
|
(8) Section 42.2524(f), Education Code; |
|
(9) Section 42.2528(b), Education Code; |
|
(10) Section 42.262, Education Code; |
|
(11) Section 42.302(f), Education Code; |
|
(12) Section 45.003(f), Education Code; |
|
(13) Section 45.109(d), Education Code; |
|
(14) Section 45.111(b), Education Code; |
|
(15) Sections 21.02(b) and (c), Tax Code; |
|
(16) Section 25.25(k), Tax Code; |
|
(17) Section 26.08(i), Tax Code, as effective |
|
September 1, 2017; |
|
(18) Sections 26.08(n), (o), and (p), Tax Code; and |
|
(19) Section 312.210(c), Tax Code. |
|
ARTICLE 2. STATE SALES AND USE TAX INCREASE FOR PUBLIC EDUCATION |
|
SECTION 2.01. Section 151.051(b), Tax Code, is amended to |
|
read as follows: |
|
(b) The sales tax rate is 12 [6-1/4] percent of the sales |
|
price of the taxable item sold. |
|
SECTION 2.02. Section 151.801, Tax Code, is amended by |
|
amending Subsection (a) and adding Subsection (b-1) to read as |
|
follows: |
|
(a) Except for the amounts allocated under Subsections (b), |
|
(b-1), (c), and (c-2), all proceeds from the collection of the taxes |
|
imposed by this chapter shall be deposited to the credit of the |
|
general revenue fund. |
|
(b-1) Notwithstanding any other provision of this section, |
|
an amount of revenue under this chapter equal to the proceeds, other |
|
than the proceeds allocated under Subsection (b), derived from the |
|
collection of taxes imposed by this chapter attributable to the |
|
portion of the tax rate in excess of 6.25 percent of the sales price |
|
of the taxable item sold shall be deposited to the credit of the |
|
foundation school fund. |
|
SECTION 2.03. The changes in law made by this article do not |
|
affect taxes imposed before the effective date of this article, and |
|
the law in effect before that date is continued in effect for |
|
purposes of the liability for and collection of those taxes. |
|
ARTICLE 3. APPLICABILITY; EFFECTIVE DATE |
|
SECTION 3.01. (a) Chapter 42, Education Code, as amended by |
|
this Act, applies beginning with the 2019-2020 school year. |
|
(b) The repeal by this Act of Chapter 41, Education Code, |
|
does not affect the obligations of a school district under that |
|
chapter, as it existed before repeal by this Act, for the 2018-2019 |
|
school year. |
|
SECTION 3.02. This Act takes effect January 1, 2019. |