By: Hochberg, et al. (Senate Sponsor - Shapiro) H.B. No. 3646
(In the Senate - Received from the House May 13, 2009;
May 14, 2009, read first time and referred to Committee on
Education; May 23, 2009, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 8, Nays 0;
May 23, 2009, sent to printer.)
COMMITTEE SUBSTITUTE FOR H.B. No. 3646 By: Shapiro
A BILL TO BE ENTITLED
AN ACT
relating to public school finance.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. PUBLIC SCHOOL FINANCE
SECTION 1.01. Subchapter D, Chapter 12, Education Code, is
amended by adding Section 12.1331 to read as follows:
Sec. 12.1331. SALARY 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 use at least the amount specified in Subsection (c) to
increase the salaries of classroom teachers, full-time librarians,
full-time counselors, and full-time school nurses employed by the
charter holder who would be entitled to the minimum salary under
Section 21.402 if employed by a school district.
(c) The amount required to be used in accordance with
Subsection (b) is the greater of:
(1) the product of $65 multiplied by the number of
students in weighted average daily attendance in the school during
the 2009-2010 school year; or
(2) the product of $800 multiplied by the number of
classroom teachers, full-time librarians, full-time counselors,
and full-time school nurses employed by the charter holder during
the 2009-2010 school year who would be entitled to the minimum
salary under Section 21.402 if employed by a school district.
(d) A payment under Subsection (b) is in addition to salary
the charter holder would otherwise pay the employees during the
school year.
SECTION 1.02. Section 19.007, Education Code, is amended by
adding Subsection (g) to read as follows:
(g) In addition to other amounts received by the district
under this section, the district is entitled to state aid in an
amount equal to the greater of:
(1) the product of $65 multiplied by the number of
students in weighted average daily attendance in the district
during the 2009-2010 school year; or
(2) the product of $800 multiplied by the number of
classroom teachers, full-time librarians, full-time counselors
certified under Subchapter B, Chapter 21, and full-time school
nurses who are employed by the district during the 2009-2010 school
year and who would be entitled to a minimum salary under Section
21.402 if employed by a school district operating under Chapter 11.
SECTION 1.03. Section 19.009, Education Code, is amended by
adding Subsection (d-2) to read as follows:
(d-2) Beginning with the 2009-2010 school year, the
district shall use the amount received by the district under
Section 19.007(g) to increase the salaries of classroom teachers,
full-time librarians, full-time counselors certified under
Subchapter B, Chapter 21, and full-time school nurses who are
employed by the district and who would be entitled to a minimum
salary under Section 21.402 if employed by a school district
operating under Chapter 11. A payment under this subsection is in
addition to salary the district would otherwise pay the employees
during the school year.
SECTION 1.04. Section 21.402, Education Code, is amended by
amending Subsections (a) and (d) and adding Subsections (c-1),
(c-2), (c-3), and (c-4) 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) Beginning with the 2009-2010 school year, each school
district shall use at least the amount specified in Subsection
(c-2) to increase the salaries of classroom teachers, full-time
librarians, full-time counselors certified under Subchapter B, and
full-time school nurses employed by the district.
(c-2) The amount required to be used in accordance with
Subsection (c-1) is the greater of:
(1) the product of $65 multiplied by the number of
students in weighted average daily attendance in the district
during the 2009-2010 school year; or
(2) the product of $800 multiplied by the number of
classroom teachers, full-time librarians, full-time counselors
certified under Subchapter B, and full-time school nurses employed
by the district during the 2009-2010 school year.
(c-3) An increase in salary under Subsection (c-1) does not
include:
(1) any amount an employee would have received for the
2009-2010 school year under the district's salary schedule for the
2008-2009 school year, if that schedule had been in effect for the
2009-2010 school year, including any local supplement the employee
would have received in the 2009-2010 school year; or
(2) any part of the salary to which an employee is
entitled under Subsection (a).
(c-4) Subsections (c-1), (c-2), and (c-3) and this
subsection expire September 1, 2010.
(d) A classroom teacher, full-time librarian, full-time
counselor certified under Subchapter B, or full-time school nurse
employed by a school district in the 2009-2010 [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 2009-2010 [2006-2007] school year.
SECTION 1.05. 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 1.06. Section 21.703(a), Education Code, is amended
to read as follows:
(a) Each state fiscal year, the commissioner shall deposit
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
the[:
[(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 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
average daily attendance in the district.
SECTION 1.07. 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 1.08. The heading to Section 39.114, Education
Code, is amended to read as follows:
Sec. 39.114. USE OF HIGH SCHOOL ALLOTMENT.
SECTION 1.09. Sections 39.114(a), (b), and (d), 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.
(d) The commissioner shall adopt rules to administer this
section[, including rules related to the permissible use of funds
allocated under this section to an open-enrollment charter school].
SECTION 1.10. 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) $470,000 [the wealth per student that generates
the amount of maintenance and operations tax revenue per weighted
student available to a district at the 88th percentile in wealth per
student], for the district's maintenance and operations tax effort
equal to or less than 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;
(2) the wealth per student that generates the amount
of maintenance and operations tax revenue per weighted student
available to 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 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, 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 1.11. 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(a-1)(1) [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 first six cents by which a district's
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 1.12. Subchapter A, Chapter 42, Education Code, is
amended by adding Section 42.008 to read as follows:
Sec. 42.008. LIMITATION ON REVENUE INCREASES. (a)
Notwithstanding any other provision of this title, a school
district is not entitled in any school year to receive an amount of
state and local maintenance and operations revenue per student in
weighted average daily attendance that exceeds by more than six
percent the amount of state and local maintenance and operations
revenue per student in weighted average daily attendance received
by the district during the preceding school year.
(a-1) Subsection (a) applies beginning with the 2010-2011
school year. For the 2009-2010 school year, a school district is
not entitled to receive an amount of state and local maintenance and
operations revenue per student in weighted average daily attendance
that exceeds by more than six percent the amount of state and local
maintenance and operations revenue per student in weighted average
daily attendance that the district would have received during that
year under Chapter 41 and this chapter, as those chapters existed on
January 1, 2009, at a maintenance and operations tax rate equal to
the product of the state compression percentage for that year, as
determined under Section 42.2516, multiplied by the maintenance and
operations tax rate adopted by the district for the 2005 tax year.
This subsection expires September 1, 2010.
(b) Enrichment revenue to which a school district is
entitled under Section 42.302 is not included for purposes of
determining the limitation imposed by this section.
(c) The commissioner shall make adjustments to amounts due
to a school district under this chapter or amounts required for a
district to comply with Chapter 41 as necessary to comply with the
limitation imposed by this section.
(d) A determination by the commissioner under this section
is final and may not be appealed.
SECTION 1.13. 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 lesser of $4,700 or the amount that results from the
following formula:
A = $4,700 X (DCR/MCR)
where:
"A" is the allotment to which a district is entitled;
"DCR" is the district's compressed tax rate, which is 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; and
"MCR" is the state maximum compressed tax rate, which is the
product of the state compression percentage, as determined under
Section 42.2516, multiplied by $1.50 [product of the amount per
student per cent of tax effort available to a district at the
percentile in wealth per student specified by Section
42.302(a-1)(1), multiplied by 86].
(b) A greater amount for any school year may be provided by
appropriation.
SECTION 1.14. Section 42.106, Education Code, is amended to
read as follows:
Sec. 42.106. TUITION ALLOTMENT [ADJUSTED PROPERTY VALUE]
FOR DISTRICTS NOT OFFERING ALL GRADE LEVELS. A [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 entitled to receive
an allotment equal to [adjusted by applying the formula:
[ADPV = DPV - (TN/.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; 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 1.15. Section 42.152(c), Education Code, is amended
to read as follows:
(c) Funds allocated under this section shall be used to fund
supplemental programs and services designed to eliminate any
disparity in performance on assessment instruments administered
under Subchapter B, Chapter 39, or disparity in the rates of high
school completion between students at risk of dropping out of
school, as defined by Section 29.081, and all other students.
Specifically, the funds, other than an indirect cost allotment
established under State Board of Education rule, which may not
exceed 45 [15] percent, may be used to meet the costs of providing a
compensatory, intensive, or accelerated instruction program under
Section 29.081 or an alternative education program established
under Section 37.008 or to support a program eligible under Title I
of the Elementary and Secondary Education Act of 1965, as provided
by Pub. L. No. 103-382 and its subsequent amendments, and by federal
regulations implementing that Act, at a campus at which at least 40
percent of the students are educationally disadvantaged. In
meeting the costs of providing a compensatory, intensive, or
accelerated instruction program under Section 29.081, a district's
compensatory education allotment shall be used for costs
supplementary to the regular education program, such as costs for
program and student evaluation, instructional materials and
equipment and other supplies required for quality instruction,
supplemental staff expenses, salary for teachers of at-risk
students, smaller class size, and individualized instruction. A
home-rule school district or an open-enrollment charter school must
use funds allocated under Subsection (a) for a purpose authorized
in this subsection but is not otherwise subject to Subchapter C,
Chapter 29. Notwithstanding any other provisions of this section:
(1) to ensure that a sufficient amount of the funds
allotted under this section are available to supplement
instructional programs and services, no more than 18 percent of the
funds allotted under this section may be used to fund disciplinary
alternative education programs established under Section 37.008;
(2) the commissioner may waive the limitations of
Subdivision (1) upon an annual petition, by a district's board and a
district's site-based decision making committee, presenting the
reason for the need to spend supplemental compensatory education
funds on disciplinary alternative education programs under Section
37.008, provided that:
(A) the district in its petition reports the
number of students in each grade level, by demographic subgroup,
not making satisfactory progress under the state's assessment
system; and
(B) the commissioner makes the waiver request
information available annually to the public on the agency's
website; and
(3) for purposes of this subsection, a program
specifically designed to serve students at risk of dropping out of
school, as defined by Section 29.081, is considered to be a program
supplemental to the regular education program, and a district may
use its compensatory education allotment for such a program.
SECTION 1.16. Section 42.154(a), Education Code, is amended
to read as follows:
(a) For each full-time equivalent student in average daily
attendance in an approved career and technology education program
in grades nine through 12 or in career and technology education
programs for students with disabilities in grades seven through 12,
a district is entitled to:
(1) an annual allotment equal to the adjusted basic
allotment multiplied by a weight of 1.35; and
(2) $50, if the student is enrolled in:
(A) two or more advanced career and technology
education classes for a total of three or more credits; or
(B) an advanced course as part of a tech-prep
program under Subchapter T, Chapter 61.
SECTION 1.17. Subchapter C, Chapter 42, Education Code, is
amended by adding Section 42.1541 to read as follows:
Sec. 42.1541. INDIRECT COST ALLOTMENTS. (a) The State
Board of Education shall by rule increase the indirect cost
allotments established under Sections 42.151(h), 42.152(c),
42.153(b), and 42.154(a-1) and (c) and in effect for the 2008-2009
school year as necessary to reflect the increased percentage of
total maintenance and operations funding represented by the basic
allotment under Section 42.101 as a result of amendment of that
section by H.B. No. 3646, Acts of the 81st Legislature, Regular
Session, 2009.
(b) The board shall take the action required by Subsection
(a) not later than the date that permits the increased indirect cost
allotments to apply beginning with the 2009-2010 school year.
(c) This section expires September 1, 2010.
SECTION 1.18. 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 allotments 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.
(c) An open-enrollment charter school is entitled to an
allotment under this section in the same manner as a school
district.
(d) The commissioner shall adopt rules to administer this
section, including rules related to the permissible use of funds
allocated under this section to an open-enrollment charter school.
SECTION 1.19. Section 42.2516, Education Code, is amended
to read as follows:
Sec. 42.2516. ADDITIONAL STATE AID FOR TAX REDUCTION. (a)
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) Notwithstanding any other provision of this title, a
school district that imposes a maintenance and operations tax at a
rate at least 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 is entitled to at
least the amount of state revenue necessary to provide the district
with the sum of:
(1) as calculated under Subsection (e), the amount of
state and local revenue per student in weighted average daily
attendance for maintenance and operations that the district would
have received during the 2009-2010 school year under Chapter 41 and
this chapter, as those chapters existed on January 1, 2009, at a
maintenance and operations tax rate equal to the product of the
state compression percentage for that year multiplied by the
maintenance and operations tax rate adopted by the district for the
2005 tax year;
(2) an amount equal to the product of $135 multiplied
by the number of students in weighted average daily attendance in
the district;
(3) an amount equal to the amount the district is
required to pay into the tax increment fund for a reinvestment zone
under Section 311.013(n), Tax Code, in the current tax year; and
(4) any amount to which the district is entitled under
Section 42.106.
(c) Enrichment revenue to which a school district is
entitled under Section 42.302 is not included for purposes of
determining the amount to which a district is entitled under this
section.
(d) In determining the amount to which a district is
entitled under Subsection (b)(1), the commissioner shall:
(1) include any amounts received by the district
during the 2008-2009 school year under Rider 86, page III-23,
Chapter 1428 (H.B. 1), Acts of the 80th Legislature, Regular
Session, 2007 (the General Appropriations Act); and
(2) for a school district that paid tuition under
Section 25.039 during the 2008-2009 school year, reduce the amount
to which the district is entitled by the amount of tuition paid
during that school year.
(e) For purposes of determining the total amount of state
and local revenue to which a district is entitled under Subsection
(b)(1), the commissioner shall determine the amount of state and
local revenue per student in weighted average daily attendance to
which the district would have been entitled during the 2009-2010
school year under Chapter 41 and this chapter, as they existed on
January 1, 2009, and multiply that amount by the number of students
in weighted average daily attendance as determined in accordance
with the changes to Chapter 41 and this chapter, including the
repeal of former Section 42.103(e), made by H.B. No. 3646, Acts of
the 81st Legislature, Regular Session, 2009.
(f) A school district that is required to take action under
Chapter 41 to reduce its wealth per student to the equalized wealth
level and that is entitled to state revenue under this section may
receive that revenue through an adjustment against the total amount
of attendance credits required to be purchased under Subchapter D,
Chapter 41, or the total number of nonresident students required to
be educated under Subchapter E, Chapter 41, as determined by the
commissioner.
(g) The commissioner may adopt rules necessary to implement
this section.
(h) A determination by the commissioner under this section
is final and may not be appealed.
[(a-1) Subsection (a) applies beginning with the state
fiscal year ending August 31, 2009. For the state fiscal year
ending August 31, 2007, the state compression percentage is 88.67
percent. For the state fiscal year ending August 31, 2008, the
state compression percentage is 66.67 percent. This subsection
expires September 1, 2009.
[(b) Subject to Subsections (b-1), (b-2), (f-1), (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 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
2005-2006 school 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 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:
[(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 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 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 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:
[(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 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
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.
[(c) In determining the amount to which a district is
entitled under Subsection (b)(1), the commissioner shall include:
[(1) any amounts described by Rider 69, page III-19,
Chapter 1369, Acts of the 79th Legislature, Regular Session, 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
[(5) any amount necessary to reflect an adjustment
made by the commissioner under Section 42.2531.
[(d) If, for the 2006-2007 or a subsequent school year, a
school district enters into an agreement under Subchapter E,
Chapter 41, the commissioner shall reduce the amount of state
revenue to which the district is entitled under Subsection (b) for
that school year by an amount equal to any additional revenue for
that school year that the district receives and retains as a result
of that agreement, which is the amount by which the total
maintenance and operations revenue available to the district
exceeds the total maintenance and operations revenue that would
have been available to the district if the district had not entered
into the agreement and had imposed a maintenance and operations tax
at the maximum rate permitted under Section 45.003(d), less any
amount the district pays to another entity under the agreement.
[(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)(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 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 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 2005 or 2006 tax year, or
eliminates an exemption under Section 11.13(n), Tax Code, that was
in effect for the 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 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 2005 or 2006
tax year, or ceases to grant an exemption authorized by that chapter
that was in effect for the 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 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 2005 or 2006 tax year.
[(f-2) The rules adopted by the commissioner under
Subsection (f-1) must:
[(1) require the commissioner to determine, as if this
section did not exist, the effect under Chapter 41 and this chapter
of a school district's action described by Subsection (f-1)(1),
(2), (3), or (4) on the total state revenue to which the district
would be entitled or the cost to the district of purchasing
sufficient attendance credits to reduce the district's wealth per
student to the equalized wealth level; and
[(2) require an increase or reduction in the amount of
state revenue to which a school district is entitled under
Subsection (b) that is substantially equivalent to any change in
total state revenue or the cost of purchasing attendance credits
that would apply to the district if this section did not exist.
[(f-3) An adjustment made by the commissioner under the
rules adopted under Subsection (f-1) is final and may not be
appealed.
[(g) If a school district adopts a maintenance and
operations tax rate that is below the 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,
the commissioner shall reduce the district's entitlement under this
section in proportion to the amount by which the adopted rate 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) Notwithstanding any other provision of this title, if
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 in a school year as a result of
increases to the equalized wealth level under Section 41.002, the
basic allotment under Section 42.101, and the guaranteed level
under Section 42.302 made by H.B. No. 1, Acts of the 79th
Legislature, 3rd Called Session, 2006, exceeds the amount to which
a district is entitled under Subsection (b) for that school year,
the commissioner must:
[(1) reduce the amount of state aid provided to the
district for that school year by an amount equal to the excess
revenue, as determined by the commissioner; or
[(2) for a district with a wealth per student greater
than the applicable amount described by Section 41.002(a), require
the district to purchase a number of attendance credits for that
school year at a cost equal to the amount of excess revenue, as
determined by the commissioner.
[(i) A school district that is required to take action under
Chapter 41 to reduce its wealth per student to the equalized wealth
level and that is entitled to state revenue under this section may
receive that revenue through an adjustment against the total amount
of attendance credits required to be purchased under Subchapter D,
Chapter 41, or the total number of nonresident students required to
be educated under Subchapter E, Chapter 41, as determined by the
commissioner.
[(j) If a school district reduces its maintenance and
operations tax rate by an amount less than the rate equal to the
product of the difference between the state compression percentage
for the preceding year and the state compression percentage for the
year of the reduction, multiplied by the maintenance and operations
tax rate adopted by the district for the 2005 tax year, the
commissioner may not reduce the amount to which the district is
entitled under this section on the basis of the additional revenue
collected by the district.
[(k) The commissioner may adopt rules necessary to
administer this section.
[(l) A determination by the commissioner under this section
is final and may not be appealed.]
SECTION 1.20. Section 42.252(a), Education Code, is amended
to read as follows:
(a) 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 of the amount equal to the product of the
state compression percentage, as determined under Section 42.2516,
multiplied by the lesser of:
(1) $1.50; or
(2) the maintenance and operations tax rate adopted by
the district for the 2005 tax year [$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 1.21. Section 42.253, Education Code, is amended by
adding Subsection (c-1) to read as follows:
(c-1) The amounts to be paid under Section 42.2516(b)(3)
shall be paid at the same time as other state revenue is paid to the
district. Payments shall be based on amounts paid under Section
42.2516(b)(3) for the preceding year. Any deficiency shall be paid
to the district at the same time the final amount to be paid to the
district is determined, and any overpayment shall be deducted from
the payments the district would otherwise receive in the following
year.
SECTION 1.22. 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 1.23. Sections 42.302(a), (a-1), and (a-2),
Education Code, are amended 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
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 an
amount described by Subsection (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, 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-1) In this section, "wealth per student" has the meaning
assigned by Section 41.001. For purposes of Subsection (a), the
dollar amount guaranteed level of state and local funds per
weighted student per cent of tax effort ("GL") for a school district
is:
(1) the greater of [the amount of district tax revenue
per weighted student per cent of tax effort available to a district
at the 88th percentile in wealth per student, as determined by the
commissioner in cooperation with the Legislative Budget Board, for
the district's maintenance and operations tax effort equal to or
less than 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;
[(2)] the amount of district tax revenue per weighted
student per cent of tax effort that would be available to the Austin
Independent School District, as determined by the commissioner in
cooperation with the Legislative Budget Board, if the reduction of
the limitation on tax increases as provided by Section 11.26(a-1),
(a-2), or (a-3), Tax Code, did not apply, or the amount of district
tax revenue per weighted student per cent of tax effort used for
purposes of this subdivision in the preceding school year, for the
first six cents by which the district's maintenance and operations
tax rate exceeds the rate equal to the product of the state
compression percentage, as determined under Section 42.2516 [and
notwithstanding the limitation on district enrichment tax rate
("DTR") under Section 42.303], multiplied by the maintenance and
operations tax rate adopted by the district for the 2005 tax year;
and
(2) [(3)] $31.95, for the district's maintenance and
operations tax effort that exceeds the amount of tax effort
described by Subdivision (1) [(2)].
(a-2) The limitation on district enrichment tax rate
("DTR") under Section 42.303 does not apply to the district's
maintenance and operations tax effort described by Subsection
(a-1)(1) [(a-1)(2)].
SECTION 1.24. 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 the amount per $100 of valuation by which the maximum rate
permitted under Section 45.003 exceeds the rate used to determine
the district's local share under Section 42.252 [of $0.86], or a
greater amount for any year provided by appropriation.
SECTION 1.25. Chapter 42, Education Code, is amended by
adding Subchapter I to read as follows:
SUBCHAPTER I. COMPREHENSIVE REVIEW OF PUBLIC SCHOOL FINANCE
WEIGHTS AND ADJUSTMENTS
Sec. 42.451. SELECT COMMITTEE ON PUBLIC SCHOOL FINANCE
WEIGHTS AND ADJUSTMENTS. (a) The Select Committee on Public School
Finance Weights and Adjustments is established to conduct a
comprehensive review of weights and adjustments under the public
school finance system.
(b) The committee is composed of 15 members appointed as
follows:
(1) two members of the senate, appointed by the
lieutenant governor;
(2) two members of the house of representatives,
appointed by the speaker of the house of representatives;
(3) the commissioner of education;
(4) one public school teacher, one public school
principal, and one public school district superintendent, each
currently employed in this state and each appointed jointly by the
lieutenant governor and the speaker of the house of
representatives;
(5) two persons, each of whom is currently employed as
an educator in a public school in this state and each appointed
jointly by the lieutenant governor and the speaker of the house of
representatives;
(6) one representative from the business community or
the public, appointed by the lieutenant governor;
(7) one representative from the business community or
the public, appointed by the speaker of the house of
representatives; and
(8) three representatives from the business community
or the public, at least one of whom has one or more children who
currently attend public school in this state, appointed by the
governor.
(c) The governor, lieutenant governor, and speaker of the
house of representatives shall make the appointments required by
Subsection (b) in a timely fashion to permit the committee to comply
with Section 42.452(a).
Sec. 42.452. COMMITTEE MEETINGS. (a) Not later than
October 1, 2009, the committee shall hold an organizational
meeting.
(b) The lieutenant governor and speaker of the house of
representatives shall each appoint a committee member to serve as
co-chair.
(c) Committee meetings shall be held at the call of the
co-chairs.
Sec. 42.453. COMPENSATION AND REIMBURSEMENT. (a) A member
of the committee is entitled to reimbursement for actual and
necessary expenses incurred in performing committee duties.
(b) A legislative member of the committee is entitled to
reimbursement from the appropriate fund of the house of the
legislature in which the member serves.
(c) A member other than a legislative member is entitled to
reimbursement from funds appropriated to the committee.
Sec. 42.454. COMMITTEE STAFF. (a) The co-chairs of the
committee may appoint a committee director and staff to support the
work of the committee.
(b) The director and staff members are employees of the
Texas Legislative Council and shall be paid from funds appropriated
to the council for the committee's operations.
(c) The committee may contract with one or more consultants
if necessary to enable the committee to perform its duties under
this subchapter.
Sec. 42.455. CONDUCT OF REVIEW. (a) The committee shall
conduct public hearings throughout the state and solicit testimony
about the weights and adjustments under the finance system from
parents of public school children and other interested persons. At
least one public hearing must be held at a public school during a
time that public school students are able to attend the hearing.
(b) The commissioner shall ensure that the committee has
access to any documentation and agency personnel the committee
requests.
(c) The Legislative Budget Board, the comptroller, the
state auditor, and any other state agency, official, or personnel
shall cooperate with the committee in carrying out its duties under
this subchapter.
(d) The committee may coordinate the review under this
subchapter with any other legislative study, as appropriate.
Sec. 42.456. REPORT. (a) Not later than December 1, 2010,
the committee shall provide a report that:
(1) states the findings of the review conducted under
this subchapter; and
(2) includes any recommendations for statutory
changes.
(b) The report must be approved by a majority of the
committee members. A member who disagrees with any part of the
report may attach a dissenting statement to the report.
Sec. 42.457. EXPIRATION. This subchapter expires January
11, 2011.
SECTION 1.26. 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 1.27. 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 1.28. Sections 403.302(d), (i), and (j), Government
Code, are amended to read as follows:
(d) For the purposes of this section, "taxable value" means
the market value of all taxable property less:
(1) the total dollar amount of any residence homestead
exemptions lawfully granted under Section 11.13(b) or (c), Tax
Code, in the year that is the subject of the study for each school
district;
(2) one-half of the total dollar amount of any
residence homestead exemptions granted under Section 11.13(n), Tax
Code, in the year that is the subject of the study for each school
district;
(3) the total dollar amount of any exemptions granted
before May 31, 1993, within a reinvestment zone under agreements
authorized by Chapter 312, Tax Code;
(4) subject to Subsection (e), the total dollar amount
of any captured appraised value of property that:
(A) is within a reinvestment zone created on or
before May 31, 1999, or is proposed to be included within the
boundaries of a reinvestment zone as the boundaries of the zone and
the proposed portion of tax increment paid into the tax increment
fund by a school district are described in a written notification
provided by the municipality or the board of directors of the zone
to the governing bodies of the other taxing units in the manner
provided by Section 311.003(e), Tax Code, before May 31, 1999, and
within the boundaries of the zone as those boundaries existed on
September 1, 1999, including subsequent improvements to the
property regardless of when made;
(B) generates taxes paid into a tax increment
fund created under Chapter 311, Tax Code, under a reinvestment zone
financing plan approved under Section 311.011(d), Tax Code, on or
before September 1, 1999; and
(C) is eligible for tax increment financing under
Chapter 311, Tax Code;
(5) [for a school district for which a deduction from
taxable value is made under Subdivision (4), an amount equal to the
taxable value required to generate revenue when taxed at the school
district's current tax rate in an amount that, when added to the
taxes of the district paid into a tax increment fund as described by
Subdivision (4)(B), is equal to the total amount of taxes the
district would have paid into the tax increment fund if the district
levied taxes at the rate the district levied in 2005;
[(6)] the total dollar amount of any captured
appraised value of property that:
(A) is within a reinvestment zone:
(i) created on or before December 31, 2008,
by a municipality with a population of less than 18,000; and
(ii) the project plan for which includes
the alteration, remodeling, repair, or reconstruction of a
structure that is included on the National Register of Historic
Places and requires that a portion of the tax increment of the zone
be used for the improvement or construction of related facilities
or for affordable housing;
(B) generates school district taxes that are paid
into a tax increment fund created under Chapter 311, Tax Code; and
(C) is eligible for tax increment financing under
Chapter 311, Tax Code;
(6) [(7)] the total dollar amount of any exemptions
granted under Section 11.251 or 11.253, Tax Code;
(7) [(8)] the difference between the comptroller's
estimate of the market value and the productivity value of land that
qualifies for appraisal on the basis of its productive capacity,
except that the productivity value estimated by the comptroller may
not exceed the fair market value of the land;
(8) [(9)] the portion of the appraised value of
residence homesteads of individuals who receive a tax limitation
under Section 11.26, Tax Code, on which school district taxes are
not imposed in the year that is the subject of the study, calculated
as if the residence homesteads were appraised at the full value
required by law;
(9) [(10)] a portion of the market value of property
not otherwise fully taxable by the district at market value because
of:
(A) action required by statute or the
constitution of this state that, if the tax rate adopted by the
district is applied to it, produces an amount equal to the
difference between the tax that the district would have imposed on
the property if the property were fully taxable at market value and
the tax that the district is actually authorized to impose on the
property, if this subsection does not otherwise require that
portion to be deducted; or
(B) action taken by the district under Subchapter
B or C, Chapter 313, Tax Code;
(10) [(11)] the market value of all tangible personal
property, other than manufactured homes, owned by a family or
individual and not held or used for the production of income;
(11) [(12)] the appraised value of property the
collection of delinquent taxes on which is deferred under Section
33.06, Tax Code;
(12) [(13)] the portion of the appraised value of
property the collection of delinquent taxes on which is deferred
under Section 33.065, Tax Code; and
(13) [(14)] the amount by which the market value of a
residence homestead to which Section 23.23, Tax Code, applies
exceeds the appraised value of that property as calculated under
that section.
(i) If the comptroller determines in the annual study that
the market value of property in a school district as determined by
the appraisal district that appraises property for the school
district, less the total of the amounts and values listed in
Subsection (d) as determined by that appraisal district, is valid,
the comptroller, in determining the taxable value of property in
the school district under Subsection (d), shall for purposes of
Subsection (d)(13) [(d)(14)] subtract from the market value as
determined by the appraisal district of residence homesteads to
which Section 23.23, Tax Code, applies the amount by which that
amount exceeds the appraised value of those properties as
calculated by the appraisal district under Section 23.23, Tax Code.
If the comptroller determines in the annual study that the market
value of property in a school district as determined by the
appraisal district that appraises property for the school district,
less the total of the amounts and values listed in Subsection (d) as
determined by that appraisal district, is not valid, the
comptroller, in determining the taxable value of property in the
school district under Subsection (d), shall for purposes of
Subsection (d)(13) [(d)(14)] subtract from the market value as
estimated by the comptroller of residence homesteads to which
Section 23.23, Tax Code, applies the amount by which that amount
exceeds the appraised value of those properties as calculated by
the appraisal district under Section 23.23, Tax Code.
(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 1.29. Section 311.013(n), Tax Code, is amended to
read as follows:
(n) This subsection applies only to a school district whose
taxable value computed under Section 403.302(d), Government Code,
is reduced in accordance with Subdivision (4) [(5)] of that
subsection. In addition to the amount otherwise required to be paid
into the tax increment fund, the district shall pay into the fund an
amount equal to the amount by which the amount of taxes the district
would have been required to pay into the fund in the current year if
the district levied taxes at the rate the district levied in 2005
exceeds the amount the district is otherwise required to pay into
the fund in the year of the reduction[, not to exceed the amount the
school district realizes from the reduction in the school
district's taxable value under Section 403.302(d)(5), Government
Code].
ARTICLE 2. CONFORMING AMENDMENTS
SECTION 2.01. 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 2.02. 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 2.03. Section 29.918(a), Education Code, is amended
to read as follows:
(a) Notwithstanding Section 39.114 or 42.152, 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 2.04. 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 2.05. 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 2.06. 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 2.07. 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.
ARTICLE 3. REPEALER; MISCELLANEOUS; EFFECTIVE DATE
SECTION 3.01. (a) The following provisions of the
Education Code are repealed:
(1) Subchapter N, Chapter 21;
(2) Section 21.704(b);
(3) Section 39.114(c); and
(4) Sections 42.103(e), 42.2511, 42.2512, and
42.2514.
(b) Subchapter C, Chapter 1581, Insurance Code, is
repealed.
(c) Section 2, Chapter 1191 (H.B. 828), Acts of the 80th
Legislature, Regular Session, 2007, is repealed.
SECTION 3.02. To the extent of any conflict, this Act
prevails over S.B. No. 1969, Acts of the 81st Legislature, Regular
Session, 2009.
SECTION 3.03. (a) Notwithstanding any other provision of
this Act, Sections 12.1331, 19.007(g), 19.009(d-2), and
21.402(c-1), Education Code, as added by this Act, are expressly
contingent on a determination by the commissioner of education that
payment of salary increases required by or associated with those
sections are allowable uses of federal funds received by school
districts and open-enrollment charter schools under the American
Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5) and
appropriated as part of the Foundation School Program. The
commissioner may not make a determination under this subsection
until the state's application to spend funds under the American
Recovery and Reinvestment Act of 2009 has been approved by the
United States government. The commissioner shall promptly notify
school districts and open-enrollment charter schools of that
determination. A determination by the commissioner under this
subsection is final and may not be appealed.
(b) A school district or open-enrollment charter school may
enter into an employment contract or agreement that is contingent
on a determination of the commissioner of education under
Subsection (a) of this section.
SECTION 3.04. Section 42.2516(b)(3), Education Code, as
amended by this Act, applies as if that subdivision were in effect
in the state fiscal year beginning September 1, 2006, and any
amounts due a school district under that subdivision for the state
fiscal years beginning September 1, 2006, September 1, 2007, and
September 1, 2008, shall be paid to the district in the state fiscal
year beginning September 1, 2009, at the time payments are made to
the district under Section 42.259(f), Education Code.
SECTION 3.05. This Act takes effect September 1, 2009,
except that Section 1.14 of this Act takes effect immediately if
this Act receives a vote of two-thirds of all the members elected to
each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
immediate effect, Section 1.14 takes effect September 1, 2009.
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