81R30285 E
By: Hochberg, Eissler, Aycock, Pitts, H.B. No. 3646
Patrick, et al.
Substitute the following for H.B. No. 3646:
By: Weber C.S.H.B. No. 3646
A BILL TO BE ENTITLED
AN ACT
relating to public school finance.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 7.024(a), Education Code, is amended to
read as follows:
(a) The investment capital fund consists of money
appropriated for purposes of [transferred to] the fund [as provided
by Section 42.152(l)]. The agency shall administer the fund. The
purposes of this fund are to assist eligible public schools to
implement practices and procedures consistent with deregulation
and school restructuring in order to improve student achievement
and to help schools identify and train parents and community
leaders who will hold the school and the school district
accountable for achieving high academic standards.
SECTION 2. Sections 7.062(a) and (c), Education Code, are
amended to read as follows:
(a) In this section, "wealth per student" means a school
district's taxable value of property for the current tax year as
determined under Subchapter M, Chapter 403, Government Code, [or,
if applicable, Section 42.2521,] divided by the district's average
daily attendance as determined under Section 42.005.
(c) Except as otherwise provided by this subsection, if the
commissioner certifies that the amount appropriated for a state
fiscal year for purposes of Subchapters A and B, Chapter 46, exceeds
the amount to which school districts are entitled under those
subchapters for that year, the commissioner shall use the excess
funds, in an amount not to exceed $20 million in any state fiscal
year, for the purpose of making grants under this section. The use
of excess funds under this subsection has priority over any
provision of Chapter 42 that permits or directs the use of excess
foundation school program funds, including Sections 42.2517,
[42.2521,] 42.2522, and 42.2531. The commissioner is required to
use excess funds as provided by this subsection only if the
commissioner is not required to reduce the total amount of state
funds allocated to school districts under Section 42.253(h).
SECTION 3. Subchapter D, Chapter 12, Education Code, is
amended by adding Section 12.1331 to read as follows:
Sec. 12.1331. WAGE INCREASE FOR CERTAIN PROFESSIONAL STAFF.
(a) This section applies to a charter holder that on January 1,
2009, operated an open-enrollment charter school.
(b) Beginning with the 2009-2010 school year, each charter
holder shall increase the monthly salary of each classroom teacher,
full-time speech pathologist, full-time librarian, full-time
counselor, and full-time school nurse employed by the charter
holder at an open-enrollment charter school by the greater of:
(1) $80; or
(2) the maximum uniform amount that, when combined
with any resulting increases in the amount of contributions made by
the charter holder for social security coverage for the specified
employees or by the charter holder on behalf of the specified
employees under Section 825.405, Government Code, may be provided
using 50 percent of any additional funding received by the charter
holder as a result of changes made by H.B. No. 3646, Acts of the 81st
Legislature, Regular Session, 2009, to Chapters 41 and 42 over the
funding the charter holder would have received under Chapter 42, as
it existed on January 1, 2009, as determined by the commissioner.
(c) A payment under Subsection (b) is in addition to wages
the charter holder would otherwise pay the employee during the
school year.
SECTION 4. Section 21.402, Education Code, is amended by
amending Subsections (a), (d), and (g) and adding Subsections
(c-1), (c-2), and (c-3) to read as follows:
(a) Except as provided by Subsection (d), (e), or (f), a
school district must pay each classroom teacher, full-time
librarian, full-time counselor certified under Subchapter B, or
full-time school nurse not less than the minimum monthly salary,
based on the employee's level of experience in addition to other
factors, as determined by commissioner rule, determined by the
following formula:
MS = SF x FS
where:
"MS" is the minimum monthly salary;
"SF" is the applicable salary factor specified by Subsection
(c); and
"FS" is the amount, as determined by the commissioner under
Subsection (b), of state and local funds per weighted student,
including funds provided under Section 42.2516 [42.2516(b)(1)(B),
but not funds provided under Section 42.2516(b)(1)(A), (b)(1)(C),
(b)(2), or (b)(3)], available to a district eligible to receive
state assistance under Section 42.302 with a maintenance and
operations tax rate per $100 of taxable value equal to the product
of the state compression percentage, as determined under Section
42.2516, multiplied by $1.50, except that the amount of state and
local funds per weighted student does not include the amount
attributable to the increase in the guaranteed level made by
Chapter 1187, Acts of the 77th Legislature, Regular Session, 2001.
(c-1) Notwithstanding Subsection (a), for the 2009-2010 and
2010-2011 school years, each school district shall increase the
monthly salary of each classroom teacher, full-time speech
pathologist, full-time librarian, full-time counselor certified
under Subchapter B, and full-time school nurse by the greater of:
(1) $80; or
(2) the maximum uniform amount that, when combined
with any resulting increases in the amount of contributions made by
the district for social security coverage for the specified
employees or by the district on behalf of the specified employees
under Section 825.405, Government Code, may be provided using 50
percent of any additional funding received by the district as a
result of changes made by H.B. No. 3646, Acts of the 81st
Legislature, Regular Session, 2009, to Chapters 41 and 42 over the
funding to which the district would have been entitled under
Chapters 41 and 42, as those chapters existed on January 1, 2009, at
the maintenance and operations tax rate equal to the rate adopted by
the district for the 2008-2009 school year, as determined by the
commissioner.
(c-2) An increase in salary under Subsection (c-1) does not
include:
(1) any amount an employee would have received for the
2009-2010 or 2010-2011 school year, as applicable, under the
district's salary schedule for the 2008-2009 school year, if that
schedule had been in effect for the 2009-2010 or 2010-2011 school
year, including any local supplement and any money representing a
career ladder supplement the employee would have received in the
2009-2010 or 2010-2011 school year; or
(2) any part of the salary to which an employee is
entitled under Subsection (a).
(c-3) Subsections (c-1) and (c-2) and this subsection
expire September 1, 2011.
(d) A classroom teacher, full-time speech pathologist,
full-time librarian, full-time counselor certified under
Subchapter B, or full-time school nurse employed by a school
district in the 2010-2011 [2006-2007] school year is, as long as the
employee is employed by the same district, entitled to a salary that
is at least equal to the salary the employee received for the
2010-2011 [2006-2007] school year.
(g) The commissioner may adopt rules to govern the
application of this section, including rules that:
(1) require the payment of a minimum salary under this
section to a person employed in more than one capacity for which a
minimum salary is provided and whose combined employment in those
capacities constitutes full-time employment; and
(2) specify the credentials a person must hold to be
considered a speech pathologist or school nurse under this section.
SECTION 5. Section 21.415(a), Education Code, is amended to
read as follows:
(a) A school district shall provide in employment contracts
that qualifying employees may receive an incentive payment under an
awards program established under Subchapter [N or] O if the
district participates in the program.
SECTION 6. Sections 21.703(a) and (d), Education Code, are
amended to read as follows:
(a) Each state fiscal year, the commissioner shall deposit
an amount determined by the General Appropriations Act [the sum of
$1,000 multiplied by the number of classroom teachers in this
state] to the credit of the educator excellence fund in the general
revenue fund. Each state fiscal year, the agency shall use[:
[(1) not more than $100 million of the funds in the
educator excellence fund to provide grant awards under the awards
for student achievement program established under Subchapter N; and
[(2) any remaining] funds in the educator excellence
fund to provide a qualifying school district a grant in an amount
determined by:
(1) [(A)] dividing the amount of [remaining] money
available for distribution in the educator excellence fund by the
total number of students in weighted average daily attendance in
qualifying districts for that fiscal year; and
(2) [(B)] multiplying the amount determined under
Subdivision (1) [Paragraph (A)] by the number of students in
weighted average daily attendance in the district.
(d) Notwithstanding Subsection (a) [or (b)], the agency may
use funds in the educator excellence fund as necessary to conduct or
contract with another entity to conduct the evaluation required
under Section 21.706. This subsection expires June 1, 2011.
SECTION 7. Section 21.704, Education Code, is amended by
adding Subsection (c-1) to read as follows:
(c-1) A local awards plan must provide for teachers and
principals eligible to receive awards under the plan to be notified
of the specific criteria and any formulas on which the awards will
be based before the beginning of the period on which the awards will
be based.
SECTION 8. Section 21.705, Education Code, is amended to
read as follows:
Sec. 21.705. AWARD PAYMENTS. A school district must use at
least 30 [60] percent of grant funds awarded to the district under
this subchapter to directly award classroom teachers who
effectively improve student achievement as determined by
meaningful, objective measures. The remaining funds must be used
only to:
(1) recruit and retain highly qualified teachers and
principals for campuses serving a disproportionately high number of
economically disadvantaged students or students of limited English
proficiency, as defined by Section 29.052;
(2) recruit and retain teachers certified under
Subchapter B in mathematics, science, special education, bilingual
education, or English as a second language;
(3) provide teacher induction and mentoring support;
or
(4) provide funding for previously developed
incentive programs [provide stipends to effective mentors or
teacher coaches;
[(2) provide stipends to classroom teachers who are
certified in a subject that is designated by the commissioner as
commonly experiencing a critical shortage of teachers;
[(3) provide stipends to classroom teachers who are
certified under Subchapter B in the main subject area in which they
teach;
[(4) provide stipends to classroom teachers with
proven records of success for improving student performance who are
assigned to campuses at which the district has experienced
difficulty assigning or retaining teachers;
[(5) provide stipends to classroom teachers who hold
postgraduate degrees;
[(6) provide awards to principals who effectively
increase student performance as determined by objective measures;
[(7) provide awards to other campus employees who
demonstrate excellence; or
[(8) implement the components of a Teacher Advancement
Program (TAP), including:
[(A) an instructionally focused accountability
system; and
[(B) the adjustment of teaching schedules to
permit ongoing applied professional growth].
SECTION 9. Section 21.706(a), Education Code, is amended to
read as follows:
(a) Using funds from the educator excellence fund created
under Section 21.703, the agency shall conduct or contract with
another entity to conduct a comprehensive evaluation of the [awards
for student achievement program established under Subchapter N and
the educator excellence awards] program [established under this
subchapter]. The evaluation must include:
(1) a descriptive analysis of the design and
implementation of the [awards for student achievement program and
the educator excellence awards] program at participating campuses
or school districts, including detailed descriptions of the models
and approaches used by the campuses or districts in distributing
incentive awards to classroom teachers;
(2) detailed information regarding the distribution
of incentive awards to classroom teachers under the [awards for
student achievement program and the educator excellence awards]
program, including the measurements used by the campuses or
districts in determining the amounts of incentive awards to
distribute to classroom teachers;
(3) a comprehensive, quantitative analysis of the
impact of the [awards for student achievement program and the
educator excellence awards] program at participating campuses or
districts, including the impact of the various incentive award
distribution models used by the campuses or districts on key
outcomes in the program [programs]; and
(4) a summary of the approaches used by participating
campuses or districts in distributing grant funds that are not
specifically designated for distribution as incentive awards for
classroom teachers and an assessment of whether those funds are
used effectively by the participating campuses or districts.
SECTION 10. Section 21.707, Education Code, is amended to
read as follows:
Sec. 21.707. RULES. The commissioner shall adopt rules
necessary to administer this subchapter. The rules may not
establish additional criteria for local awards plans other than
those established by this subchapter, except as necessary to
provide financial accountability for the grants.
SECTION 11. Subchapter A, Chapter 29, Education Code, is
amended by adding Section 29.018 to read as follows:
Sec. 29.018. SPECIAL EDUCATION GRANT. (a) From funds
appropriated for the purposes of this section, federal funds, or
any other funds available, the commissioner shall make grants
available to school districts to assist districts in covering the
cost of educating students with disabilities.
(b) A school district is eligible to apply for a grant under
this section if:
(1) the district does not receive sufficient funds,
including state funds provided under Section 42.151 and federal
funds, for a student with disabilities to pay for the special
education services provided to the student; or
(2) the district does not receive sufficient funds,
including state funds provided under Section 42.151 and federal
funds, for all students with disabilities in the district to pay for
the special education services provided to the students.
(c) A school district that applies for a grant under this
section must provide the commissioner with a report comparing the
state and federal funds received by the district for students with
disabilities and the expenses incurred by the district in providing
special education services to students with disabilities.
(d) Expenses that may be included by a school district in
applying for a grant under this section include the cost of training
personnel to provide special education services to a student with
disabilities.
(e) A school district that receives a grant under this
section must educate students with disabilities in the least
restrictive environment that is appropriate to meet the student's
educational needs.
(f) The commissioner shall adopt rules as necessary to
administer this section.
SECTION 12. Section 29.082, Education Code, is amended by
adding Subsection (h) to read as follows:
(h) The commissioner shall give priority to applications
for extended year programs to districts with high concentrations of
educationally disadvantaged students.
SECTION 13. Section 29.0822, Education Code, is amended by
amending Subsections (a), (c), and (d) and adding Subsection (e) to
read as follows:
(a) Notwithstanding Section 25.081 or 25.082, a school
district may apply to the commissioner to provide a flexible school
day program for students [in grades nine through 12] who:
(1) have dropped out of school or are at risk of
dropping out of school as defined by Section 29.081; [or]
(2) attend a campus that is implementing an innovative
redesign of the campus or an early college high school under a plan
approved by the commissioner; or
(3) as a result of attendance requirements under
Section 25.092, will be denied credit for one or more classes in
which the students have been enrolled.
(c) Except in the case of a course designed for a student
described by Subsection (a)(3), a [A] course offered in a program
under this section must provide for at least the same number of
instructional hours as required for a course offered in a program
that meets the required minimum number of instructional days under
Section 25.081 and the required length of school day under Section
25.082.
(d) The commissioner may adopt rules for the administration
of this section, including rules establishing application
requirements. The commissioner shall calculate average daily
attendance for students served under this section. The
commissioner shall allow accumulations of hours of instruction for
students whose schedule would not otherwise allow full state
funding. Funding under this subsection shall be determined based
on the number of instructional days in the school district calendar
and a seven-hour school day, but attendance may be cumulated over a
school year, including any summer or vacation session. The
attendance of students who accumulate less than the number of
attendance hours required under this subsection shall be
proportionately reduced for funding purposes. The commissioner
may:
(1) set maximum funding amounts for an individual
course under this section; and
(2) limit funding for the attendance of a student
described by Subsection (a)(3) in a course under this section to
funding only for the attendance necessary for the student to earn
class credit that, as a result of attendance requirements under
Section 25.092, the student would not otherwise be able to receive
without retaking the class.
(e) A student described by Subsection (a)(3) may enroll in a
course in a program under this section offered during the school
year or during the period in which school is recessed for the summer
to enable the student to earn class credit that, as a result of
attendance requirements under Section 25.092, the student would not
otherwise be able to receive without retaking the class.
SECTION 14. Section 29.085, Education Code, is amended by
adding Subsection (e) to read as follows:
(e) From funds appropriated for the purpose, the
commissioner shall distribute funds for programs under this
section. In distributing those funds, the commissioner shall give
preference to school districts that received funds for a program
under this section for the preceding school year and then to the
districts that have the highest concentration of students who are
pregnant or who are parents. To receive funds for a program under
this section, a school district must apply to the commissioner. A
program established under this section is required only in school
districts in which the program is financed by funds distributed
under this subsection and any other funds available for the
program.
SECTION 15. Section 29.097(g), Education Code, is amended
to read as follows:
(g) For purposes of Subsection (f)(2), a school district is
encouraged to use funds allocated under Section 42.160
[42.2516(b)(3)].
SECTION 16. Section 29.098(h), Education Code, is amended
to read as follows:
(h) For purposes of Subsection (g)(2), a school district is
encouraged to use funds allocated under Section 42.160
[42.2516(b)(3)].
SECTION 17. Section 29.918(a), Education Code, is amended
to read as follows:
(a) Notwithstanding Section [39.114 or] 42.152 or 42.160, a
school district or open-enrollment charter school with a high
dropout rate, as determined by the commissioner, must submit a plan
to the commissioner describing the manner in which the district or
charter school intends to use the compensatory education allotment
under Section 42.152 and the high school allotment under Section
42.160 [42.2516(b)(3)] for developing and implementing
research-based strategies for dropout prevention. The district or
charter school shall submit the plan not later than December 1 of
each school year preceding the school year in which the district or
charter school will receive the compensatory education allotment or
high school allotment to which the plan applies.
SECTION 18. Section 29.919(e), Education Code, is amended
to read as follows:
(e) As a condition of receiving a state grant, a campus must
contribute additional funding for activities provided at the campus
through the program, in an amount equal to at least $100 each school
year for each student in an eligible grade level served through the
program. The additional funding required by this subsection may
consist of local funds, private funds, or state funds other than
grant funds provided under this section. For program activities
provided at the high school level, the high school allotment
provided under Section 42.160 [42.2516(b)(3)] may be used to meet
the additional funding requirement prescribed by this subsection.
SECTION 19. Section 33.002(a), Education Code, is amended
to read as follows:
(a) From funds appropriated for the purpose or other funds
that may be used for the purpose, the commissioner shall distribute
funds for programs under this subchapter. In distributing those
funds, the commissioner shall give preference to a school district
that received funds under this subsection for the preceding school
year and then to the districts that have the highest concentration
of students at risk of dropping out of school, as described by
Section 29.081. To receive funds for the program, a school district
must apply to the commissioner. For each school year that a school
district receives funds under this subsection, the district shall
allocate an amount of local funds for school guidance and
counseling programs that is equal to or greater than the amount of
local funds that the school district allocated for that purpose
during the preceding school year. This section applies only to a
school district that receives funds as provided by this subsection
[Section 42.152(i)].
SECTION 20. Sections 39.024(c) and (d), Education Code, are
amended to read as follows:
(c) Using funds appropriated for purposes of this
subsection, the [The] agency shall develop study guides for the
assessment instruments administered under Sections 39.023(a) and
(c). To assist parents in providing assistance during the period
that school is recessed for summer, each school district shall
distribute the study guides to parents of students who do not
perform satisfactorily on one or more parts of an assessment
instrument administered under this subchapter.
(d) Using funds appropriated for purposes of this
subsection, the [The] agency shall develop and make available
teacher training materials and other teacher training resources to
assist teachers in enabling students of limited English proficiency
to meet state performance expectations. The teacher training
resources shall be designed to support intensive, individualized,
and accelerated instructional programs developed by school
districts for students of limited English proficiency.
SECTION 21. Section 39.031, Education Code, is amended to
read as follows:
Sec. 39.031. COST. [(a)] The cost of preparing,
administering, or grading the assessment instruments and [shall be
paid from the funds allotted under Section 42.152, and each
district shall bear the cost in the same manner described for a
reduction in allotments under Section 42.253. If a district does
not receive an allotment under Section 42.152, the commissioner
shall subtract the cost from the district's other foundation school
fund allotments.
[(b) The cost of] releasing the question and answer keys
under Section 39.023(e) shall be paid from amounts appropriated to
the agency.
SECTION 22. The heading to Section 39.114, Education Code,
is amended to read as follows:
Sec. 39.114. USE OF HIGH SCHOOL ALLOTMENT.
SECTION 23. Sections 39.114(a) and (b), Education Code, are
amended to read as follows:
(a) Except as provided by Subsection (b), a school district
or campus must use funds allocated under Section 42.160
[42.2516(b)(3)] to:
(1) implement or administer a college readiness
program that provides academic support and instruction to prepare
underachieving students for entrance into an institution of higher
education;
(2) implement or administer a program that encourages
students to pursue advanced academic opportunities, including
early college high school programs and dual credit, advanced
placement, and international baccalaureate courses;
(3) implement or administer a program that provides
opportunities for students to take academically rigorous course
work, including four years of mathematics and four years of science
at the high school level;
(4) implement or administer a program, including
online course support and professional development, that aligns the
curriculum for grades six through 12 with postsecondary curriculum
and expectations; or
(5) implement or administer other high school
completion and success initiatives in grades six through 12
approved by the commissioner.
(b) A school district may use funds allocated under Section
42.160 [42.2516(b)(3)] on any instructional program in grades six
through 12 other than an athletic program if:
(1) the district is recognized as exceptional by the
commissioner under the academic accountability indicator adopted
under Section 39.051(b)(13); and
(2) the district's completion rates for grades nine
through 12 meet or exceed completion rate standards required by the
commissioner to achieve a rating of exemplary under Section 39.072.
SECTION 24. Section 41.001, Education Code, is amended to
read as follows:
Sec. 41.001. DEFINITIONS. In this chapter:
(1) "Effective tax rate" has the meaning assigned by
Section 42.010.
(2) "Equalized wealth level" means the wealth per
student provided by Section 41.002.
(3) [(2)] "Wealth per student" means the taxable value
of property, as determined under Subchapter M, Chapter 403,
Government Code, divided by the number of students in weighted
average daily attendance.
(4) [(3)] "Weighted average daily attendance" has the
meaning assigned by Section 42.302.
SECTION 25. Subchapter A, Chapter 41, Education Code, is
amended by adding Section 41.0011 to read as follows:
Sec. 41.0011. REFERENCES TO TAXABLE VALUE OF DISTRICT
PROPERTY. A reference in this chapter to the taxable value of
property in a district, as determined under Subchapter M, Chapter
403, Government Code, refers to the value for the current year
unless otherwise specified.
SECTION 26. Section 41.002(a), Education Code, is amended
to read as follows:
(a) A school district may not have a wealth per student that
exceeds:
(1) the wealth per student that generates the amount
of maintenance and operations tax revenue per weighted student
available to a district described by Section 42.101(b) [at the 88th
percentile in wealth per student], for the district's maintenance
and operations tax effort equal to or less than an effective tax
rate of the lesser of $1.00 or the rate that is six cents less than
the district's effective maintenance and operations tax rate [the
rate equal to the product of the state compression percentage, as
determined under Section 42.2516, multiplied by the maintenance and
operations tax rate adopted by the district for the 2005 tax year];
or
(2) the wealth per student that generates the amount
of maintenance and operations tax revenue per weighted student per
cent of tax effort available to a district under Section 42.302 for
each cent of a district's tax rate other than the last six cents of
that rate [the Austin Independent School District, as determined by
the commissioner in cooperation with the Legislative Budget Board],
for [the first six cents by which] the district's maintenance and
operations tax effort that [rate] exceeds the tax effort described
by Subdivision (1) [rate equal to the product of the state
compression percentage, as determined under Section 42.2516,
multiplied by the maintenance and operations tax rate adopted by
the district for the 2005 tax year, subject to Section 41.093(b-1);
or
[(3) $319,500, for the district's maintenance and
operations tax effort that exceeds the first six cents by which the
district's maintenance and operations tax effort exceeds the rate
equal to the product of the state compression percentage, as
determined under Section 42.2516, multiplied by the maintenance and
operations tax rate adopted by the district for the 2005 tax year].
SECTION 27. Section 41.093(b-1), Education Code, is amended
to read as follows:
(b-1) If the guaranteed level of state and local funds per
weighted student per cent of tax effort under Section 42.302(g)
[42.302(a-1)(2)] for which state funds are appropriated for a
school year is an amount at least equal to the amount of revenue per
weighted student per cent of tax effort available to the Austin
Independent School District, as determined by the commissioner in
cooperation with the Legislative Budget Board, the commissioner, in
computing the amounts described by Subsections (a)(1) and (2) and
determining the cost of an attendance credit, shall exclude
maintenance and operations tax revenue resulting from the last
[first] six cents of [by which] a district's effective maintenance
and operations tax rate [exceeds the rate equal to the product of
the state compression percentage, as determined under Section
42.2516, multiplied by the maintenance and operations tax rate
adopted by the district for the 2005 tax year].
SECTION 28. Section 41.099(a), Education Code, is amended
to read as follows:
(a) Sections [41.002(e),] 41.094, 41.097, and 41.098 apply
only to a district that:
(1) executes an agreement to purchase all attendance
credits necessary to reduce the district's wealth per student to
the equalized wealth level;
(2) executes an agreement to purchase attendance
credits and an agreement under Subchapter E to contract for the
education of nonresident students who transfer to and are educated
in the district but who are not charged tuition; or
(3) executes an agreement under Subchapter E to
contract for the education of nonresident students:
(A) to an extent that does not provide more than
10 percent of the reduction in wealth per student required for the
district to achieve a wealth per student that is equal to or less
than the equalized wealth level; and
(B) under which all revenue paid by the district
to other districts, in excess of the reduction in state aid that
results from counting the weighted average daily attendance of the
students served in the contracting district, is required to be used
for funding a consortium of at least three districts in a county
with a population of less than 40,000 that is formed to support a
technology initiative.
SECTION 29. Subchapter A, Chapter 42, Education Code, is
amended by adding Sections 42.009 and 42.010 to read as follows:
Sec. 42.009. REFERENCES TO TAXABLE VALUE OF DISTRICT
PROPERTY. A reference in this chapter to the taxable value of
property in a district, as determined under Subchapter M, Chapter
403, Government Code, refers to the value for the current year.
Sec. 42.010. EFFECTIVE TAX RATE. For purposes of this
chapter, a school district's effective tax rate means the rate
determined by dividing the total amount of taxes collected by the
district for the applicable school year less any amounts paid into a
tax increment fund under Chapter 311, Tax Code, by the quotient of
the district's taxable value of property, as determined under
Subchapter M, Chapter 403, Government Code, divided by 100.
SECTION 30. Section 42.101, Education Code, is amended to
read as follows:
Sec. 42.101. BASIC ALLOTMENT. (a) For each student in
average daily attendance, not including the time students spend
each day in special education programs in an instructional
arrangement other than mainstream or career and technology
education programs, for which an additional allotment is made under
Subchapter C, a district is entitled to an allotment in an amount
equal to the product of the amount per student per cent of tax
effort available to a district described by Subsection (b) [at the
percentile in wealth per student specified by Section
42.302(a-1)(1)], multiplied by the lesser of:
(1) the difference between the number of cents in the
district's effective maintenance and operations tax rate and 6; or
(2) 100 [86. A greater amount for any school year may
be provided by appropriation].
(b) For purposes of Subsection (a), the commissioner shall
determine the amount per cent of tax effort available to a district
with a taxable value of property equal to the product of the
statewide average taxable value of property per weighted student
multiplied by .000173, or a higher value as specified in the General
Appropriations Act.
SECTION 31. Section 42.106, Education Code, is amended to
read as follows:
Sec. 42.106. ADJUSTED PROPERTY VALUE FOR DISTRICTS NOT
OFFERING ALL GRADE LEVELS. For purposes of this chapter, the
taxable value of property of a school district that contracts for
students residing in the district to be educated in another
district under Section 25.039(a) is adjusted by applying the
formula:
ADPV = DPV - (TN/MTR[.015])
where:
"ADPV" is the district's adjusted taxable value of property;
"DPV" is the taxable value of property in the district [for
the preceding tax year] determined under Subchapter M, Chapter 403,
Government Code;
"MTR" is the maximum tax rate permitted under Section
45.003(d), divided by 100; and
"TN" is the total amount of tuition required to be paid by the
district under Section 25.039 for the school year for which the
adjustment is made, not to exceed the amount specified by
commissioner rule under Section 25.039(b).
SECTION 32. Subchapter C, Chapter 42, Education Code, is
amended by adding Section 42.160 to read as follows:
Sec. 42.160. HIGH SCHOOL ALLOTMENT. (a) A school district
is entitled to an annual allotment of $275 for each student in
average daily attendance in grades 9 through 12 in the district.
(b) A school district that is required to take action under
Chapter 41 to reduce its wealth per student to the equalized wealth
level is entitled to a credit, in the amount of the allotment to
which the district is entitled under this section, against the
total amount required under Section 41.093 for the district to
purchase attendance credits. A school district that is otherwise
ineligible for state aid under this chapter is entitled to receive
allotments under this section.
SECTION 33. Section 42.2516, Education Code, is amended by
amending Subsections (a), (b), (b-1), (b-2), (c), (e), (f), (f-1),
and (g) and adding Subsections (b-3), (h-1), and (m) to read as
follows:
(a) The state compression percentage is 66.67 percent. [In
this section, "state compression percentage" means the percentage,
as determined by the commissioner, of a school district's adopted
maintenance and operations tax rate for the 2005 tax year that
serves as the basis for state funding for tax rate reduction under
this section. The commissioner shall determine the state
compression percentage for each school year based on the percentage
by which a district is able to reduce the district's maintenance and
operations tax rate for that year, as compared to the district's
adopted maintenance and operations tax rate for the 2005 tax year,
as a result of state funds appropriated for distribution under this
section for that year from the property tax relief fund established
under Section 403.109, Government Code, or from another funding
source available for school district property tax relief.]
(b) Subject to Subsections (b-1), (b-2), (b-3), (f-1), and
(g), [and (h),] but notwithstanding any other provision of this
title, a school district is entitled to state revenue necessary to
provide the district with [the sum of:
[(1)] the amount of state revenue necessary to
maintain state and local revenue per student in weighted average
daily attendance in the amount at least equal to [the greater of:
[(A)] the amount of state and local revenue per
student in weighted average daily attendance for the maintenance
and operations of the district available to the district for the
2008-2009 [2005-2006] school year for the district's maintenance
and operations tax rate equal to the product of the state
compression percentage multiplied by the maintenance and
operations tax rate adopted by the district for the 2005 tax year[;
[(B) the amount of state and local revenue per
student in weighted average daily attendance for the maintenance
and operations of the district to which the district would have been
entitled for the 2006-2007 school year under this chapter, as it
existed on January 1, 2006, or, if the district would have been
subject to Chapter 41, as that chapter existed on January 1, 2006,
the amount to which the district would have been entitled under that
chapter, based on the funding elements in effect for the 2005-2006
school year, if the district imposed a maintenance and operations
tax at the rate adopted by the district for the 2005 tax year; or
[(C) the amount of state and local revenue per
student in weighted average daily attendance for the maintenance
and operations of the district to which the district would have been
entitled for the 2006-2007 school year under this chapter, as it
existed on January 1, 2006, or, if the district would have been
subject to Chapter 41, as that chapter existed on January 1, 2006,
the amount to which the district would have been entitled under that
chapter, based on the funding elements in effect for the 2005-2006
school year, if the district imposed a maintenance and operations
tax at the rate equal to the rate described by Section 26.08(i) or
(k)(1), Tax Code, as applicable, for the 2006 tax year;
[(2) an amount equal to the product of $2,500
multiplied by the number of classroom teachers, full-time
librarians, full-time counselors certified under Subchapter B,
Chapter 21, and full-time school nurses employed by the district
and entitled to a minimum salary under Section 21.402; and
[(3) an amount equal to the product of $275 multiplied
by the number of students in average daily attendance in grades nine
through 12 in the district].
(b-1) The amount determined for a school district under
Subsection (b) is increased or reduced as follows:
(1) if for any school year the district is entitled to
a greater allotment under Section 42.158 than the allotment to
which the district was entitled under that section for the
2008-2009 school year [on which the district's entitlement under
Subsection (b) is based], the district's entitlement under
Subsection (b) is increased by an amount equal to the difference
between the amount to which the district is entitled under Section
42.158 for that school year and the amount to which the district was
entitled under that section for the 2008-2009 school year[:
[(A) the 2005-2006 school year, if the amount
determined for the district under Subsection (b) is determined
under Subsection (b)(1)(A); or
[(B) the 2006-2007 school year, if the amount
determined for the district under Subsection (b) is determined
under Subsection (b)(1)(B) or (C)]; and
(2) if for any school year the district is not entitled
to an allotment under Section 42.158 or is entitled to a lesser
allotment under that section than the allotment to which the
district was entitled under that section for the 2008-2009 school
year [on which the district's entitlement under Subsection (b) is
based], the district's entitlement under Subsection (b) is reduced
by an amount equal to the difference between the amount to which the
district was entitled under Section 42.158 for the 2008-2009
[2005-2006 or 2006-2007] school year[, as appropriate based on
whether the district's entitlement under Subsection (b) is
determined under Subsection (b)(1)(A), (B), or (C),] and the amount
to which the district is entitled under Section 42.158 for the
current school year.
(b-2) The amount determined for a school district under
Subsection (b) is increased or reduced as follows:
(1) if for any school year the district is entitled to
a greater allotment under Section 42.155 or greater additional
state aid under Section 42.2515 than the allotment or additional
state aid to which the district was entitled under Section 42.155 or
42.2515, as applicable, for the 2008-2009 school year [on which the
district's entitlement under Subsection (b) is based], the
district's entitlement under Subsection (b) is increased by an
amount equal to the difference between the amount to which the
district is entitled under Section 42.155 or 42.2515, as
applicable, for that school year and the amount to which the
district was entitled under the applicable section[, as applicable]
for the 2008-2009 school year[:
[(A) the 2005-2006 school year, if the amount
determined for the district under Subsection (b) is determined
under Subsection (b)(1)(A); or
[(B) the 2006-2007 school year, if the amount
determined for the district under Subsection (b) is determined
under Subsection (b)(1)(B) or (C)]; and
(2) if for any school year the district is not entitled
to an allotment under Section 42.155 or additional state aid under
Section 42.2515 or is entitled to a lesser allotment or less
additional state aid under the applicable section than the
allotment or additional state aid to which the district was
entitled under the applicable section for the 2008-2009 school year
[on which the district's entitlement under Subsection (b) is
based], the district's entitlement under Subsection (b) is reduced
by an amount equal to the difference between the amount to which the
district was entitled under Section 42.155 or 42.2515, as
applicable, for the 2008-2009 [2005-2006 or 2006-2007] school
year[, as appropriate based on whether the district's entitlement
under Subsection (b) is determined under Subsection (b)(1)(A), (B),
or (C),] and the amount to which the district is entitled under the
applicable section for the current school year.
(b-3) The amount determined for a school district under
Subsection (b) is increased or reduced to reflect changes in the
amount of funds to which the district is entitled under Section
42.160, in comparison to the amount of funds to which the district
was entitled during the 2008-2009 school year under the high school
allotment provided by Subsection (b)(3), as it existed on January
1, 2009.
(c) In determining the amount to which a district is
entitled under Subsection (b) [(b)(1)], the commissioner shall
include:
(1) any amounts received by the district during the
2008-2009 school year under [described by] Rider 86 [69], page
III-23 [III-19], Chapter 1428 (H.B. 1) [1369], Acts of the 80th
[79th] Legislature, Regular Session, 2007 [2005] (the General
Appropriations Act);
(2) [for a school district that received additional
revenue for the 2005-2006 school year as a result of an agreement
under Subchapter E, Chapter 41:
[(A) if the amount of state revenue to which the
district is entitled under Subsection (b) is computed based on the
amount described by Subsection (b)(1)(A), the amount of that
additional revenue retained by the district for the 2005-2006
school year, which is the amount by which the total maintenance and
operations revenue available to the district for that school year
exceeded the total maintenance and operations revenue that would
have been available to the district for that school year if the
district had not entered into the agreement, less any amount the
district paid to another entity under the agreement; or
[(B) if the amount of state revenue to which the
district is entitled under Subsection (b) is computed based on the
amount described by Subsection (b)(1)(B) or (C), the amount of the
additional revenue that would have been retained by the district
for the 2006-2007 school year if the district had entered into the
agreement on the same terms as under the agreement for the 2005-2006
school year, which is the amount by which the total maintenance and
operations revenue that would have been available to the district
for the 2006-2007 school year if the district had entered into the
agreement exceeds the total maintenance and operations revenue that
would have been available to the district for that school year if
the district had not entered into the agreement and had imposed a
maintenance and operations tax at the rate of $1.50 on the $100
valuation of taxable property, less any amount the district would
have paid to another entity under the agreement;
[(3)] any amount necessary to reflect an adjustment
made by the commissioner under Section 42.005;
[(4) any amount necessary to reflect an adjustment
made by the commissioner under Section 42.2521; and]
(3) [(5)] any amount necessary to reflect an
adjustment made by the commissioner under Section 42.2531; and
(4) any amount necessary to maintain:
(A) the professional staff salary allotment
provided by Subsection (b)(2) and the high school allotment
provided by Subsection (b)(3), as those subsections existed on
January 1, 2009;
(B) the staff salary allotment provided by
Section 42.2513, as that section existed on January 1, 2009;
(C) funding for school district employees who
participate in a group health coverage plan provided by or through
the district;
(D) the $110 per weighted student allocation
authorized in Rider 82, page III-23, Chapter 1330 (H.B. 1), Acts of
the 78th Legislature, Regular Session, 2003 (the General
Appropriations Act); and
(E) any other amounts to which the district was
entitled under this subchapter, as it existed on January 1, 2009.
(e) The amount of revenue to which a school district is
entitled because of the technology allotment under Section 32.005
is not included in making a determination under Subsection (b)
[(b)(1)].
(f) For purposes of determining the amount of revenue to
which a school district is entitled under this section, the
commissioner shall use the average tax collection rate for the
district for the 2006, 2007, and 2008 [2003, 2004, and 2005] tax
years.
(f-1) The commissioner shall, in accordance with rules
adopted by the commissioner, adjust the amount of a school
district's local revenue derived from maintenance and operations
tax collections, as calculated for purposes of determining the
amount of state revenue to which the district is entitled under this
section, if the district, for the 2010 [2007] tax year or a
subsequent tax year:
(1) adopts an exemption under Section 11.13(n), Tax
Code, that was not in effect for the 2009 [2005 or 2006] tax year, or
eliminates an exemption under Section 11.13(n), Tax Code, that was
in effect for the 2009 [2005 or 2006] tax year;
(2) adopts an exemption under Section 11.13(n), Tax
Code, at a greater or lesser percentage than the percentage in
effect for the district for the 2009 [2005 or 2006] tax year;
(3) grants an exemption under an agreement authorized
by Chapter 312, Tax Code, that was not in effect for the 2009 [2005
or 2006] tax year, or ceases to grant an exemption authorized by
that chapter that was in effect for the 2009 [2005 or 2006] tax
year; or
(4) agrees to deposit taxes into a tax increment fund
created under Chapter 311, Tax Code, under a reinvestment zone
financing plan that was not in effect for the 2009 [2005 or 2006]
tax year, or ceases depositing taxes into a tax increment fund
created under that chapter under a reinvestment zone financing plan
that was in effect for the 2009 [2005 or 2006] tax year.
(g) If a school district adopts a maintenance and operations
tax rate that is below the rate equal to the sum of six cents and the
product of the state compression percentage multiplied by the
maintenance and operations tax rate adopted by the district for the
2005 tax year, the commissioner shall reduce the district's
entitlement under this section in proportion to the amount by which
the rate equal to the adopted rate less six cents is less than the
rate equal to the product of the state compression percentage
multiplied by the rate adopted by the district for the 2005 tax
year.
(h-1) Notwithstanding any other provision of this title, a
school district is entitled to receive an increase of at least $100
per student in weighted average daily attendance as a result of
changes made by H.B. No. 3646, Acts of the 81st Legislature, Regular
Session, 2009, to Chapter 41 and this chapter over the amount to
which the district would have been entitled under those chapters,
as they existed on January 1, 2009, at the maintenance and
operations tax rate equal to the rate adopted by the district for
the 2008-2009 school year, as determined by the commissioner. As
necessary to provide that minimum increase, the commissioner shall
adjust the amount of state aid provided to a school district under
this chapter or adjust the number of attendance credits that a
school district is required to purchase under Section 41.093.
(m) For purposes of Subsections (b) and (h-1), the number of
students in weighted average daily attendance in a school district
is computed in the manner provided by this chapter as it existed on
January 1, 2009.
SECTION 34. Section 42.252(a), Education Code, is amended
to read as follows:
(a) Subject to Section 42.302(g), each [Each] school
district's share of the Foundation School Program is determined by
the following formula:
LFA = TR X DPV
where:
"LFA" is the school district's local share;
"TR" is a tax rate which for each hundred dollars of valuation
is an effective tax rate equal to the lesser of:
(1) $1; or
(2) the rate that is six cents less than the district's
effective maintenance and operations tax rate [$0.86]; and
"DPV" is the taxable value of property in the school district
for the [preceding] tax year determined under Subchapter M, Chapter
403, Government Code.
SECTION 35. Section 42.2522(c), Education Code, is amended
to read as follows:
(c) In the first year of a state fiscal biennium, before
providing funding as provided by Subsection (a)(2), the
commissioner shall ensure that sufficient appropriated funds for
purposes of the Foundation School Program are available for the
second year of the biennium[, including funds to be used for
purposes of Section 42.2521].
SECTION 36. Section 42.260(a), Education Code, is amended
to read as follows:
(a) In this section, "participating charter school" means
an open-enrollment charter school that participates in the uniform
group coverage program established under Chapter 1579, Insurance
Code [has the meaning assigned by Section 42.2514].
SECTION 37. Section 42.261(a), Education Code, is amended
to read as follows:
(a) Funds appropriated by the legislature for a tax year for
the purpose of reducing a school district's maintenance and
operations tax rate and providing state aid under Section 42.2516:
(1) are not excess funds for purposes of Section
42.2517;
(2) are not available for purposes of Section [42.2521
or] 42.2522;
(3) may not be used for purposes of Chapter 46; and
(4) may not be provided by the commissioner to a school
district for a purpose other than reduction of the district's
maintenance and operations tax rate.
SECTION 38. Section 42.302, Education Code, is amended by
amending Subsections (a), (a-2), and (b) and adding Subsections (g)
and (g-1) to read as follows:
(a) Each school district is guaranteed a specified amount
per weighted student in state and local funds for each cent of tax
effort over that required for the district's local fund assignment,
subject to Subsection (g), up to the maximum level specified in this
subchapter. The amount of state support, subject only to the
maximum amount under Section 42.303, is determined by the formula:
GYA = (GL X WADA X DTR X 100) - LR
where:
"GYA" is the guaranteed yield amount of state funds to be
allocated to the district;
"GL" is the dollar amount guaranteed level of state and local
funds per weighted student per cent of tax effort, which is $31.95
or an amount described by Subsection (g) or (g-1), as applicable,
[(a-1)] or a greater amount for any year provided by appropriation;
"WADA" is the number of students in weighted average daily
attendance, which is calculated by dividing the sum of the school
district's allotments under Subchapters B and C, less any allotment
to the district for transportation and[,] any allotment under
Section 42.158 or 42.160, [and 50 percent of the adjustment under
Section 42.102,] by the basic allotment for the applicable year;
"DTR" is the district enrichment tax rate of the school
district, which is determined by subtracting the amounts specified
by Subsection (b) from the total amount of maintenance and
operations taxes collected by the school district for the
applicable school year and dividing the difference by the quotient
of the district's taxable value of property as determined under
Subchapter M, Chapter 403, Government Code, [or, if applicable,
under Section 42.2521,] divided by 100; and
"LR" is the local revenue, which is determined by multiplying
"DTR" by the quotient of the district's taxable value of property as
determined under Subchapter M, Chapter 403, Government Code, [or,
if applicable, under Section 42.2521,] divided by 100.
(a-2) The limitation on district enrichment tax rate
("DTR") under Section 42.303 does not apply to the last six cents of
the district's effective maintenance and operations tax effort
[described by Subsection (a-1)(2)].
(b) In computing the district enrichment tax rate of a
school district, the total amount of maintenance and operations
taxes collected by the school district does not include the amount
of:
(1) the district's local fund assignment under Section
42.252; [or]
(2) taxes paid into a tax increment fund under Chapter
311, Tax Code; or
(3) revenue resulting from the last six cents of the
district's effective maintenance and operations tax rate.
(g) This subsection applies to the last six cents of a
district's effective tax rate for maintenance and operations,
regardless of whether any of those cents would otherwise be
considered as part of the district's local share under Section
42.252. For each cent of tax effort to which this subsection
applies, a district is entitled to a guaranteed level of state and
local funds per weighted student equal to the greater of the amount
of district tax revenue per weighted student per cent of tax effort
available to the Austin Independent School District, as determined
by the commissioner in cooperation with the Legislative Budget
Board, or the amount of district tax revenue per weighted student
per cent of tax effort used for purposes of this subsection in the
preceding school year.
(g-1) Subsection (g) applies beginning with the 2010-2011
school year. For the 2009-2010 school year, a school district is
entitled for each cent of tax effort described by Subsection (g) to
a guaranteed level of state and local funds per weighted student
equal to the amount of district tax revenue per weighted student per
cent of tax effort available to the Austin Independent School
District, as determined by the commissioner in cooperation with the
Legislative Budget Board. This subsection expires September 1,
2010.
SECTION 39. Section 42.303, Education Code, is amended to
read as follows:
Sec. 42.303. LIMITATION ON ENRICHMENT TAX RATE. The
district enrichment tax rate ("DTR") under Section 42.302 may not
exceed $0.17 [the amount] per $100 of valuation [by which the
maximum rate permitted under Section 45.003 exceeds the rate of
$0.86, or a greater amount for any year provided by appropriation].
SECTION 40. Section 45.0031, Education Code, is amended by
amending Subsection (a) and adding Subsections (c-1) and (f) to
read as follows:
(a) Before issuing bonds described by Section 45.001, a
school district must demonstrate to the attorney general under
Subsection (b), [or] (c), or (c-1) that, with respect to the
proposed issuance, the district has a projected ability to pay the
principal of and interest on the proposed bonds and all previously
issued bonds other than bonds authorized to be issued at an election
held on or before April 1, 1991, and issued before September 1,
1992, from a tax at a rate not to exceed $0.50 per $100 of valuation.
(c-1) A district may demonstrate the ability to comply with
Subsection (a) by using pro forma debt service projections on the
proposed bonds and all previously issued bonds described in
Subsection (a) based on current market interest rates and yields,
as determined by the district and certified by a financial advisor
or consultant to the district. For the purposes of determining pro
forma debt service on the proposed bonds and all previously issued
bonds described in Subsection (a), the district shall amortize the
proposed bonds and the previously issued bonds over the maximum
term for such bonds permitted by law.
(f) A district that demonstrates to the attorney general
that the district has the ability to comply with Subsection (a) may
issue the proposed bonds in any manner that will produce actual debt
service savings of at least 10 percent, as determined by the
district, when compared to the pro forma debt service payments on
the proposed bonds used to demonstrate that the district has the
projected ability to comply with Subsection (a). Actual debt
service savings shall be determined using the difference between
the total amount of the pro forma debt service payments on the
proposed bonds and the actual debt service on the proposed bonds, as
a percentage of the total amount of the pro forma debt service
payments on the proposed bonds.
SECTION 41. Section 46.003(a), Education Code, is amended
to read as follows:
(a) For each year, except as provided by Sections 46.005 and
46.006, a school district is guaranteed a specified amount per
student in state and local funds for each cent of tax effort, up to
the maximum rate under Subsection (b), to pay the principal of and
interest on eligible bonds issued to construct, acquire, renovate,
or improve an instructional facility. The amount of state support
is determined by the formula:
FYA = (FYL X ADA X BTR X 100) - (BTR X (DPV/100))
where:
"FYA" is the guaranteed facilities yield amount of state
funds allocated to the district for the year;
"FYL" is the dollar amount guaranteed level of state and
local funds per student per cent of tax effort, which is $35 or a
greater amount for any year provided by appropriation;
"ADA" is the greater of the number of students in average
daily attendance, as determined under Section 42.005, in the
district or 400;
"BTR" is the district's bond tax rate for the current year,
which is determined by dividing the amount budgeted by the district
for payment of eligible bonds by the quotient of the district's
taxable value of property for the current tax year as determined
under Subchapter M, Chapter 403, Government Code, [or, if
applicable, Section 42.2521,] divided by 100; and
"DPV" is the district's taxable value of property for the
current tax year as determined under Subchapter M, Chapter 403,
Government Code[, or, if applicable, Section 42.2521].
SECTION 42. Section 46.006(g), Education Code, is amended
to read as follows:
(g) In this section, "wealth per student" means a school
district's taxable value of property for the current tax year as
determined under Subchapter M, Chapter 403, Government Code, [or,
if applicable, Section 42.2521,] divided by the district's average
daily attendance as determined under Section 42.005.
SECTION 43. Section 46.032(a), Education Code, is amended
to read as follows:
(a) Each school district is guaranteed a specified amount
per student in state and local funds for each cent of tax effort to
pay the principal of and interest on eligible bonds. The amount of
state support, subject only to the maximum amount under Section
46.034, is determined by the formula:
EDA = (EDGL X ADA X EDTR X 100) - (EDTR X (DPV/100))
where:
"EDA" is the amount of state funds to be allocated to the
district for assistance with existing debt;
"EDGL" is the dollar amount guaranteed level of state and
local funds per student per cent of tax effort, which is $35 or a
greater amount for any year provided by appropriation;
"ADA" is the number of students in average daily attendance,
as determined under Section 42.005, in the district;
"EDTR" is the existing debt tax rate of the district, which is
determined by dividing the amount budgeted by the district for
payment of eligible bonds by the quotient of the district's taxable
value of property for the current tax year as determined under
Subchapter M, Chapter 403, Government Code, [or, if applicable,
under Section 42.2521,] divided by 100; and
"DPV" is the district's taxable value of property for the
current tax year as determined under Subchapter M, Chapter 403,
Government Code[, or, if applicable, under Section 42.2521].
SECTION 44. Section 46.033, Education Code, is amended to
read as follows:
Sec. 46.033. ELIGIBLE BONDS. Bonds, including bonds
issued under Section 45.006, are eligible to be paid with state and
local funds under this subchapter if:
(1) the district made payments on the bonds during the
final [2006-2007] school year of the preceding state fiscal
biennium or taxes levied to pay the principal of and interest on the
bonds were included in the district's audited debt service
collections for that school year; and
(2) the district does not receive state assistance
under Subchapter A for payment of the principal and interest on the
bonds.
SECTION 45. Section 46.034(c), Education Code, is amended
to read as follows:
(c) If the amount required to pay the principal of and
interest on eligible bonds in a school year is less than the amount
of payments made by the district on the bonds during the final
[2006-2007] school year of the preceding state fiscal biennium or
the district's audited debt service collections for that school
year, the district may not receive aid in excess of the amount that,
when added to the district's local revenue for the school year,
equals the amount required to pay the principal of and interest on
the bonds.
SECTION 46. Section 403.302(j), Government Code, is amended
to read as follows:
(j) For purposes of Chapter 42 [Section 42.2511], Education
Code, the comptroller shall certify to the commissioner of
education:
(1) a final value for each school district computed on
a residence homestead exemption under Section 1-b(c), Article VIII,
Texas Constitution, of $5,000;
(2) a final value for each school district computed
on:
(A) a residence homestead exemption under
Section 1-b(c), Article VIII, Texas Constitution, of $15,000; and
(B) the effect of the additional limitation on
tax increases under Section 1-b(d), Article VIII, Texas
Constitution, as proposed by H.J.R. No. 4, 75th Legislature,
Regular Session, 1997; and
(3) a final value for each school district computed on
the effect of the reduction of the limitation on tax increases to
reflect any reduction in the school district tax rate as provided by
Section 11.26(a-1), (a-2), or (a-3), Tax Code, as applicable.
SECTION 47. Section 822.201(b), Government Code, is amended
to read as follows:
(b) "Salary and wages" as used in Subsection (a) means:
(1) normal periodic payments of money for service the
right to which accrues on a regular basis in proportion to the
service performed;
(2) amounts by which the member's salary is reduced
under a salary reduction agreement authorized by Chapter 610;
(3) amounts that would otherwise qualify as salary and
wages under Subdivision (1) but are not received directly by the
member pursuant to a good faith, voluntary written salary reduction
agreement in order to finance payments to a deferred compensation
or tax sheltered annuity program specifically authorized by state
law or to finance benefit options under a cafeteria plan qualifying
under Section 125 of the Internal Revenue Code of 1986, if:
(A) the program or benefit options are made
available to all employees of the employer; and
(B) the benefit options in the cafeteria plan are
limited to one or more options that provide deferred compensation,
group health and disability insurance, group term life insurance,
dependent care assistance programs, or group legal services plans;
(4) performance pay awarded to an employee by a school
district as part of a total compensation plan approved by the board
of trustees of the district and meeting the requirements of
Subsection (e);
(5) the benefit replacement pay a person earns under
Subchapter H, Chapter 659, except as provided by Subsection (c);
(6) stipends paid to teachers in accordance with
Section 21.410, 21.411, 21.412, or 21.413, Education Code;
(7) amounts by which the member's salary is reduced or
that are deducted from the member's salary as authorized by
Subchapter J, Chapter 659;
(8) a merit salary increase made under Section 51.962,
Education Code;
(9) amounts received under the relevant parts of the
[awards for student achievement program under Subchapter N, Chapter
21, Education Code, the] educator excellence awards program under
Subchapter O, Chapter 21, Education Code, or a mentoring program
under Section 21.458, Education Code, that authorize [authorized]
compensation for service; and
(10) salary amounts designated as health care
supplementation by an employee under Subchapter D, Chapter 22,
Education Code.
SECTION 48. Sections 825.405(a) and (b), Government Code,
are amended to read as follows:
(a) For members entitled to the minimum salary for certain
school personnel under Section 21.402, Education Code, and for
members who would have been entitled to the minimum salary for
certain school personnel under former Section 16.056, Education
Code, as that section existed on January 1, 1995, the employing
district shall pay the state's contribution on the portion of the
member's salary that exceeds the statutory minimum salary [or
former statutory minimum, as applicable].
(b) For purposes of this section:
(1) [,] the statutory minimum salaryfor certain
school personnel under Section 21.402, Education Code, is the
salary provided by that section [Section 21.402 or the former
Sections 16.056 and 16.058, Education Code,] multiplied by the cost
of education adjustment applicable under Section 42.102, Education
Code, to the district in which the member is employed; and
(2) the statutory minimum salary for members who would
have been entitled to the minimum salary for certain school
personnel under former Section 16.056, Education Code, as that
section existed on January 1, 1995, is a minimum salary computed in
the same manner as the minimum salary for certain school personnel
under Section 21.402, Education Code, multiplied by the cost of
education adjustment applicable under Section 42.102, Education
Code, to the district in which the member is employed.
SECTION 49. 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 Chapters 41 and 42, Education Code, and used by
school districts and charter schools as provided by Section
[Sections 42.2514 and] 42.260, Education Code.
SECTION 50. Section 1581.053(b), Insurance Code, is amended
to read as follows:
(b) Notwithstanding Subsection (a), amounts a district or
school is required to use to pay contributions under a group health
coverage plan for district or school employees under Section
[42.2514 or] 42.260, Education Code, other than amounts described
by Section 42.260(c)(2)(B), are not used in computing whether the
district or school complies with Section 1581.052.
SECTION 51. (a) The following provisions of the Education
Code are repealed:
(1) Subchapter N, Chapter 21;
(2) Section 21.704(b);
(3) Section 39.024(e);
(4) Sections 41.002(b), (e), (f), and (g);
(5) Section 42.103(e);
(6) Sections 42.152(e), (f), (g), (h), (i), (j), (k),
(l), (m), (n), (o), (p), and (u);
(7) Sections 42.2511, 42.2512, 42.2513, and 42.2514;
(8) Section 42.2516(h);
(9) Section 42.2521; and
(10) Section 42.302(a-1).
(b) Sections 825.405(h) and (i), Government Code, are
repealed.
(c) Subchapter C, Chapter 1581, Insurance Code, is
repealed.
(d) Section 2, Chapter 1191 (H.B. 828), Acts of the 80th
Legislature, Regular Session, 2007, which amended Subsection
(a-1), Section 42.302, Education Code, is repealed.
SECTION 52. To the extent of any conflict, this Act prevails
over another Act of the 81st Legislature, Regular Session, 2009,
relating to nonsubstantive additions to and corrections in enacted
codes.
SECTION 53. This Act takes effect September 1, 2009.