Texas 2009 - 81st Regular

Texas House Bill HB2617 Compare Versions

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1	1	81R8420 CAS-D
2	2	By: Heflin H.B. No. 2617
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to state financial assistance for maintenance, repair, or
8	8	renovation of school district instructional facilities.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subtitle I, Title 2, Education Code, is amended
11	11	by adding Chapter 47 to read as follows:
12	12	CHAPTER 47. STATE FINANCIAL ASSISTANCE FOR MAINTENANCE, REPAIR, OR
13	13	RENOVATION OF INSTRUCTIONAL FACILITIES
14	14	Sec. 47.001. DEFINITIONS. (a) In this subchapter:
15	15	(1) "Average daily attendance" is the average daily
16	16	attendance as determined under Section 42.005.
17	17	(2) "Guaranteed wealth level" means a wealth per
18	18	student determined under Subsection (b).
19	19	(3) "Instructional facility" has the meaning assigned
20	20	by Section 46.001.
21	21	(4) "Wealth per student" has the meaning assigned by
22	22	Section 46.006(g).
23	23	(b) The guaranteed wealth level is determined by the
24	24	formula:
25	25	GWL = (GL X 10,000) X (SWADA/SADA)
26	26	where:
27	27	"GWL" is the guaranteed wealth level;
28	28	"GL" is the dollar amount guaranteed level of state and local
29	29	funds per weighted student per cent of tax effort, as provided by
30	30	Section 42.302(a-1)(1);
31	31	"SWADA" is the total weighted average daily attendance,
32	32	determined in the manner provided by Section 42.302, for all school
33	33	districts in the state; and
34	34	"SADA" is the total average daily attendance for all school
35	35	districts in the state.
36	36	Sec. 47.002. DISTRICT ELIGIBILITY. A school district is
37	37	eligible for state assistance under this subchapter if the district
38	38	has a wealth per student that is less than $185,000.
39	39	Sec. 47.003. AMOUNT OF STATE ASSISTANCE. Except as
40	40	provided by Section 47.004, the amount of state assistance to which
41	41	a school district is entitled for an eligible project is determined
42	42	by the formula:
43	43	SA = (1 - (WPS/GWL)) X PC
44	44	where:
45	45	"SA" is the amount of state assistance;
46	46	"WPS" is the district's wealth per student;
47	47	"GWL" is the guaranteed wealth level; and
48	48	"PC" is the total cost of the project, excluding financing
49	49	costs.
50	50	Sec. 47.004. SUPPLEMENTAL STATE ASSISTANCE FOR SMALL
51	51	DISTRICTS. (a) In addition to the amount determined under
52	52	Section 47.003, a school district is entitled to supplemental state
53	53	assistance under this subchapter if the district's average daily
54	54	attendance is less than the product of the quotient of the total
55	55	average daily attendance for all school districts in the state
56	56	divided by the total weighted average daily attendance, as
57	57	determined under Section 42.302, for all school districts in the
58	58	state, multiplied by 2,500.
59	59	(b) The amount of supplemental state assistance to which a
60	60	school district is entitled is the lesser of the amounts determined
61	61	by the formulas:
62	62	SSA = PC - SA - (.002 X DPV X PC/500,000)
63	63	where:
64	64	"SSA" is the amount of supplemental state assistance;
65	65	"SA" is the amount of state assistance determined under
66	66	Section 47.003;
67	67	"DPV" is the district's taxable value of property as provided
68	68	under Section 46.003; and
69	69	"PC" is the total cost of the project; or
70	70	SSA = PC - SA - (0.15 X PC)
71	71	where:
72	72	"SSA" is the amount of supplemental state assistance;
73	73	"SA" is the amount of state assistance determined under
74	74	Section 47.003; and
75	75	"PC" is the total cost of the project.
76	76	(c) If the lesser of the amounts determined under Subsection
77	77	(b) is less than zero, the district is not entitled to supplemental
78	78	state assistance under this section.
79	79	Sec. 47.005. PROJECT ELIGIBILITY AND APPROVAL. (a) A
80	80	project must be construction to maintain, repair, or renovate an
81	81	instructional facility to be eligible for state assistance under
82	82	this subchapter.
83	83	(b) A school district is entitled to state assistance under
84	84	this subchapter for only one project in a state fiscal biennium.
85	85	(c) To receive state assistance under this subchapter, a
86	86	school district must submit to the commissioner a proposal that
87	87	contains the information required by commissioner rule by the date
88	88	established by commissioner rule. The rule must require a district
89	89	to provide:
90	90	(1) information concerning the proposed cost of the
91	91	project;
92	92	(2) a description of the nature of the maintenance,
93	93	repair, or renovation construction proposed; and
94	94	(3) any other information the commissioner determines
95	95	necessary.
96	96	(d) The commissioner shall review each proposal and approve
97	97	each proposal that meets the requirements of this subchapter and
98	98	commissioner rule.
99	99	(e) If the amount of state assistance under this subchapter
100	100	for an approved project is insufficient to enable a school district
101	101	complete the project as proposed, the district may modify the
102	102	project to reduce the cost of the project and may resubmit the
103	103	proposal.
104	104	Sec. 47.006. LIMITATION ON ASSISTANCE. (a) The cost of a
105	105	project for which a district may receive assistance under this
106	106	subchapter may not exceed the greater of:
107	107	(1) $500,000; or
108	108	(2) the product of the number of students in average
109	109	daily attendance in the district multiplied by $266.
110	110	(b) For purposes of Sections 47.003 and 47.004, a project
111	111	that has a cost that exceeds the limit prescribed by Subsection (a)
112	112	is treated as if the cost equals the applicable limit.
113	113	Sec. 47.007. SHORTAGE OF APPROPRIATED FUNDS. (a) If the
114	114	total amount appropriated for a state fiscal biennium for purposes
115	115	of this subchapter is less than the amount of money to which school
116	116	districts applying for state assistance for eligible projects are
117	117	entitled for the biennium, the commissioner shall, in accordance
118	118	with commissioner rule, give priority in awarding available state
119	119	assistance to a district if the district:
120	120	(1) has not received assistance under Subchapter A,
121	121	Chapter 46;
122	122	(2) would be required, without state assistance, to
123	123	impose ad valorem taxes at a rate that exceeds $0.14 per $100 of
124	124	valuation of taxable property in the district to pay the principal
125	125	of and interest on bonds to finance the eligible project;
126	126	(3) is not considered to be a fast-growth district
127	127	under criteria established under commissioner rule; and
128	128	(4) has proposed a construction project that will
129	129	extend the use of an instructional facility and promote the safety
130	130	and welfare of students and district employees.
131	131	(b) The commissioner shall award the full amount of state
132	132	assistance to which a school district is entitled under this
133	133	subchapter, except that the commissioner may award less than the
134	134	full amount to the last district for which any funds are available.
135	135	(c) Any amount appropriated for the first year of a fiscal
136	136	biennium that is not awarded to a school district may be used to
137	137	provide assistance under this subchapter in the following fiscal
138	138	year.
139	139	Sec. 47.008. USE OF EXCESS APPROPRIATED FUNDS. If the total
140	140	state assistance necessary for approved projects in a state fiscal
141	141	biennium is less than the amount appropriated for that biennium,
142	142	the commissioner may use the excess amount for any purpose under the
143	143	Foundation School Program.
144	144	Sec. 47.009. PAYMENT OF STATE ASSISTANCE. (a) The
145	145	commissioner shall approve warrants to a school district that
146	146	receives state assistance under this subchapter as necessary to
147	147	permit the district to meet contractual obligations as construction
148	148	for maintenance, repair, or renovation progresses.
149	149	(b) If the commissioner determines that a school district
150	150	has altered a project in a manner that reduces the cost of the
151	151	project below the cost stated in the proposal, the commissioner
152	152	shall recompute the amount of state assistance to which the
153	153	district is entitled under this subchapter based on the reduced
154	154	project cost and approve warrants to the district accordingly.
155	155	Sec. 47.010. RULES. The commissioner shall adopt rules as
156	156	necessary to administer this chapter.
157	157	SECTION 2. Section 42.002(b), Education Code, is amended to
158	158	read as follows:
159	159	(b) The Foundation School Program consists of:
160	160	(1) two tiers that in combination provide for:
161	161	(A) sufficient financing for all school
162	162	districts to provide a basic program of education that is rated
163	163	academically acceptable or higher under Section 39.072 and meets
164	164	other applicable legal standards; and
165	165	(B) substantially equal access to funds to
166	166	provide an enriched program; and
167	167	(2) a facilities component as provided by Chapters
168	168	[Chapter] 46 and 47.
169	169	SECTION 3. Section 42.007(c), Education Code, is amended to
170	170	read as follows:
171	171	(c) The funding elements must include:
172	172	(1) a basic allotment for the purposes of Section
173	173	42.101 that, when combined with the guaranteed yield component
174	174	provided by Subchapter F, represents the cost per student of a
175	175	regular education program that meets all mandates of law and
176	176	regulation;
177	177	(2) adjustments designed to reflect the variation in
178	178	known resource costs and costs of education beyond the control of
179	179	school districts;
180	180	(3) appropriate program cost differentials and other
181	181	funding elements for the programs authorized under Subchapter C,
182	182	with the program funding level expressed as dollar amounts and as
183	183	weights applied to the adjusted basic allotment for the appropriate
184	184	year;
185	185	(4) the maximum guaranteed level of qualified state
186	186	and local funds per student for the purposes of Subchapter F;
187	187	(5) the enrichment and facilities tax rate under
188	188	Subchapter F;
189	189	(6) the computation of students in weighted average
190	190	daily attendance under Section 42.302; and
191	191	(7) the amount to be appropriated for the school
192	192	facilities assistance programs [program] under Chapters [Chapter]
193	193	46 and 47.
194	194	SECTION 4. Section 42.2521(a), Education Code, is amended
195	195	to read as follows:
196	196	(a) For purposes of Chapters 41, [and] 46, and 47 and this
197	197	chapter, and to the extent money specifically authorized to be used
198	198	under this section is available, the commissioner shall adjust the
199	199	taxable value of property in a school district that, due to factors
200	200	beyond the control of the board of trustees, experiences a rapid
201	201	decline in the tax base used in calculating taxable values in excess
202	202	of four percent of the tax base used in the preceding year.
203	203	SECTION 5. Section 42.261(a), Education Code, is amended to
204	204	read as follows:
205	205	(a) Funds appropriated by the legislature for a tax year for
206	206	the purpose of reducing a school district's maintenance and
207	207	operations tax rate and providing state aid under Section 42.2516:
208	208	(1) are not excess funds for purposes of Section
209	209	42.2517;
210	210	(2) are not available for purposes of Section 42.2521
211	211	or 42.2522;
212	212	(3) may not be used for purposes of Chapter 46 or 47;
213	213	and
214	214	(4) may not be provided by the commissioner to a school
215	215	district for a purpose other than reduction of the district's
216	216	maintenance and operations tax rate.
217	217	SECTION 6. Section 44.004(c), Education Code, is amended to
218	218	read as follows:
219	219	(c) The notice of public meeting to discuss and adopt the
220	220	budget and the proposed tax rate may not be smaller than one-quarter
221	221	page of a standard-size or a tabloid-size newspaper, and the
222	222	headline on the notice must be in 18-point or larger type. Subject
223	223	to Subsection (d), the notice must:
224	224	(1) contain a statement in the following form:
225	225	"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
226	226	"The (name of school district) will hold a public meeting at
227	227	(time, date, year) in (name of room, building, physical location,
228	228	city, state). The purpose of this meeting is to discuss the school
229	229	district's budget that will determine the tax rate that will be
230	230	adopted. Public participation in the discussion is invited." The
231	231	statement of the purpose of the meeting must be in bold type. In
232	232	reduced type, the notice must state: "The tax rate that is
233	233	ultimately adopted at this meeting or at a separate meeting at a
234	234	later date may not exceed the proposed rate shown below unless the
235	235	district publishes a revised notice containing the same information
236	236	and comparisons set out below and holds another public meeting to
237	237	discuss the revised notice.";
238	238	(2) contain a section entitled "Comparison of Proposed
239	239	Budget with Last Year's Budget," which must show the difference,
240	240	expressed as a percent increase or decrease, as applicable, in the
241	241	amounts budgeted for the preceding fiscal year and the amount
242	242	budgeted for the fiscal year that begins in the current tax year for
243	243	each of the following:
244	244	(A) maintenance and operations;
245	245	(B) debt service; and
246	246	(C) total expenditures;
247	247	(3) contain a section entitled "Total Appraised Value
248	248	and Total Taxable Value," which must show the total appraised value
249	249	and the total taxable value of all property and the total appraised
250	250	value and the total taxable value of new property taxable by the
251	251	district in the preceding tax year and the current tax year as
252	252	calculated under Section 26.04, Tax Code;
253	253	(4) contain a statement of the total amount of the
254	254	outstanding and unpaid bonded indebtedness of the school district;
255	255	(5) contain a section entitled "Comparison of Proposed
256	256	Rates with Last Year's Rates," which must:
257	257	(A) show in rows the tax rates described by
258	258	Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
259	259	property, for columns entitled "Maintenance & Operations,"
260	260	"Interest & Sinking Fund," and "Total," which is the sum of
261	261	"Maintenance & Operations" and "Interest & Sinking Fund":
262	262	(i) the school district's "Last Year's
263	263	Rate";
264	264	(ii) the "Rate to Maintain Same Level of
265	265	Maintenance & Operations Revenue & Pay Debt Service," which:
266	266	(a) in the case of "Maintenance &
267	267	Operations," is the tax rate that, when applied to the current
268	268	taxable value for the district, as certified by the chief appraiser
269	269	under Section 26.01, Tax Code, and as adjusted to reflect changes
270	270	made by the chief appraiser as of the time the notice is prepared,
271	271	would impose taxes in an amount that, when added to state funds to
272	272	be distributed to the district under Chapter 42, would provide the
273	273	same amount of maintenance and operations taxes and state funds
274	274	distributed under Chapter 42 per student in average daily
275	275	attendance for the applicable school year that was available to the
276	276	district in the preceding school year; and
277	277	(b) in the case of "Interest & Sinking
278	278	Fund," is the tax rate that, when applied to the current taxable
279	279	value for the district, as certified by the chief appraiser under
280	280	Section 26.01, Tax Code, and as adjusted to reflect changes made by
281	281	the chief appraiser as of the time the notice is prepared, and when
282	282	multiplied by the district's anticipated collection rate, would
283	283	impose taxes in an amount that, when added to state funds to be
284	284	distributed to the district under Chapter 46 or 47 and any excess
285	285	taxes collected to service the district's debt during the preceding
286	286	tax year but not used for that purpose during that year, would
287	287	provide the amount required to service the district's debt; and
288	288	(iii) the "Proposed Rate";
289	289	(B) contain fourth and fifth columns aligned with
290	290	the columns required by Paragraph (A) that show, for each row
291	291	required by Paragraph (A):
292	292	(i) the "Local Revenue per Student," which
293	293	is computed by multiplying the district's total taxable value of
294	294	property, as certified by the chief appraiser for the applicable
295	295	school year under Section 26.01, Tax Code, and as adjusted to
296	296	reflect changes made by the chief appraiser as of the time the
297	297	notice is prepared, by the total tax rate, and dividing the product
298	298	by the number of students in average daily attendance in the
299	299	district for the applicable school year; and
300	300	(ii) the "State Revenue per Student," which
301	301	is computed by determining the amount of state aid received or to be
302	302	received by the district under Chapters 42, 43, [and] 46, and 47 and
303	303	dividing that amount by the number of students in average daily
304	304	attendance in the district for the applicable school year; and
305	305	(C) contain an asterisk after each calculation
306	306	for "Interest & Sinking Fund" and a footnote to the section that, in
307	307	reduced type, states "The Interest & Sinking Fund tax revenue is
308	308	used to pay for bonded indebtedness on construction, equipment, or
309	309	both. The bonds, and the tax rate necessary to pay those bonds,
310	310	were approved by the voters of this district.";
311	311	(6) contain a section entitled "Comparison of Proposed
312	312	Levy with Last Year's Levy on Average Residence," which must:
313	313	(A) show in rows the information described by
314	314	Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
315	315	entitled "Last Year" and "This Year":
316	316	(i) "Average Market Value of Residences,"
317	317	determined using the same group of residences for each year;
318	318	(ii) "Average Taxable Value of Residences,"
319	319	determined after taking into account the limitation on the
320	320	appraised value of residences under Section 23.23, Tax Code, and
321	321	after subtracting all homestead exemptions applicable in each year,
322	322	other than exemptions available only to disabled persons or persons
323	323	65 years of age or older or their surviving spouses, and using the
324	324	same group of residences for each year;
325	325	(iii) "Last Year's Rate Versus Proposed
326	326	Rate per $100 Value"; and
327	327	(iv) "Taxes Due on Average Residence,"
328	328	determined using the same group of residences for each year; and
329	329	(B) contain the following information: "Increase
330	330	(Decrease) in Taxes" expressed in dollars and cents, which is
331	331	computed by subtracting the "Taxes Due on Average Residence" for
332	332	the preceding tax year from the "Taxes Due on Average Residence" for
333	333	the current tax year;
334	334	(7) contain the following statement in bold
335	335	print: "Under state law, the dollar amount of school taxes imposed
336	336	on the residence of a person 65 years of age or older or of the
337	337	surviving spouse of such a person, if the surviving spouse was 55
338	338	years of age or older when the person died, may not be increased
339	339	above the amount paid in the first year after the person turned 65,
340	340	regardless of changes in tax rate or property value.";
341	341	(8) contain the following statement in bold
342	342	print: "Notice of Rollback Rate: The highest tax rate the
343	343	district can adopt before requiring voter approval at an election
344	344	is (the school district rollback rate determined under Section
345	345	26.08, Tax Code). This election will be automatically held if the
346	346	district adopts a rate in excess of the rollback rate of (the school
347	347	district rollback rate)."; and
348	348	(9) contain a section entitled "Fund Balances," which
349	349	must include the estimated amount of interest and sinking fund
350	350	balances and the estimated amount of maintenance and operation or
351	351	general fund balances remaining at the end of the current fiscal
352	352	year that are not encumbered with or by corresponding debt
353	353	obligation, less estimated funds necessary for the operation of the
354	354	district before the receipt of the first payment under Chapter 42 in
355	355	the succeeding school year.
356	356	SECTION 7. This Act takes effect September 1, 2009.