82R24041 E
By: Hochberg H.B. No. 2485
Substitute the following for H.B. No. 2485:
By: Eissler C.S.H.B. No. 2485
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. 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 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 Section [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 2. Section 12.106(a), Education Code, is amended to
read as follows:
(a) A charter holder is entitled to receive for the
open-enrollment charter school funding under Chapter 42 equal to
the [greater of:
[(1) the amount of funding per student in weighted
average daily attendance, excluding enrichment funding under
Sections 42.302(a-1)(2) and (3), as they existed on January 1,
2009, that would have been received for the school during the
2009-2010 school year under Chapter 42 as it existed on January 1,
2009, and an additional amount of $120 for each student in weighted
average daily attendance; or
[(2) the] amount of funding per student in weighted
average daily attendance, excluding enrichment funding under
Section 42.302(a), to which the charter holder would be entitled
for the school under Chapter 42 if the school were a school district
without a tier one local share for purposes of Section 42.253 [and
without any local revenue for purposes of Section 42.2516].
SECTION 3. Section 21.402, Education Code, is amended by
amending Subsection (a) and adding Subsection (d-1) 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,] 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
of $1.06 [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.
(d-1) Subsection (d) does not apply to any school year in
which the total amount of state and local funding provided under the
Foundation School Program for school districts and open-enrollment
charter schools is less than the total amount of state and local
funding provided under the Foundation School Program for school
districts and open-enrollment charter schools for the 2010-2011
school year, as determined by the commissioner not later than June 1
of each year. Notwithstanding Section 21.001, the determination
may not be made by a person other than the commissioner.
SECTION 4. Section 28.014(d), Education Code, is amended to
read as follows:
(d) The agency, in coordination with the Texas Higher
Education Coordinating Board, shall adopt a series of questions to
be included in an end-of-course assessment instrument administered
under Subsection (c) to be used for purposes of Section
51.3062. The questions must be developed in a manner consistent
with any college readiness standards adopted under Section
[Sections 39.233 and] 51.3062.
SECTION 5. Sections 29.918(a) and (b), Education Code, are
amended to read as follows:
(a) Notwithstanding Section [39.234 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]
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.
(b) A school district or open-enrollment charter school to
which this section applies may not spend or obligate more than 25
percent of the district's or charter school's compensatory
education allotment [or high school allotment] unless the
commissioner approves the plan submitted under Subsection
(a). The commissioner shall complete an initial review of the
district's or charter school's plan not later than March 1 of the
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 6. 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.
SECTION 7. 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 with maintenance and operations tax revenue
per cent of tax effort equal to the [maximum] amount provided per
cent under Section 42.101, for the district's maintenance and
operations tax effort equal to or less than $1.06 [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 as a result of the
guaranteed level provided by Section 42.302 [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 effort that [rate] exceeds $1.06 [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 8. Section 41.093(a), Education Code, is amended to
read as follows:
(a) The [Subject to Subsection (b-1), the] cost of each
credit is an amount equal to the greater of:
(1) the amount of the district's maintenance and
operations tax revenue per student in weighted average daily
attendance for the school year for which the contract is executed;
or
(2) the amount of the statewide district average of
maintenance and operations tax revenue per student in weighted
average daily attendance for the school year preceding the school
year for which the contract is executed.
SECTION 9. Section 41.099(a), Education Code, is amended to
read as follows:
(a) Sections [41.002(e),] 41.094 and [,] 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 10. 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. LIMITATION ON REVENUE REDUCTIONS. (a) This
section applies only to a school district that, as a result of the
changes in law made by H.B. 2485, Acts of the 82nd Legislature,
Regular Session, 2011, is entitled to an amount of state and local
funding for maintenance and operations per student in weighted
average daily attendance for the 2011-2012 or 2012-2013 school year
that is more than $500 less than the amount of state and local
funding for maintenance and operations per student in weighted
average daily attendance to which the district would be entitled
for the applicable school year under Chapter 41 and this chapter, as
those chapters existed on January 1, 2011.
(b) For the 2011-2012 school year, a school district to
which this section applies is entitled to additional state revenue
as necessary to ensure that the district's reduction in state and
local maintenance and operations revenue per student in weighted
average daily attendance resulting from the changes in law made by
H.B. 2485, Acts of the 82nd Legislature, Regular Session, 2011,
does not exceed the sum of $500 and one-third of the difference
between the loss in revenue per student that would otherwise occur
and $500.
(c) For the 2012-2013 school year, a school district to
which this section applies is entitled to additional state revenue
as necessary to ensure that district's reduction in state and local
maintenance and operations revenue per student in weighted average
daily attendance resulting from the changes in law made by H.B.
2485, Acts of the 82nd Legislature, Regular Session, 2011, does not
exceed the sum of $500 and two-thirds of the difference between the
loss in revenue per student that would otherwise occur and $500.
(d) For purposes of this section, the number of students in
weighted average daily attendance is determined in accordance with
this chapter as it existed on January 1, 2011.
(e) This section expires September 1, 2013.
SECTION 11. Section 42.101, Education Code, is amended by
amending Subsections (a) and (a-1) and adding Subsection (a-3) to
read as follows:
(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 equal to [the lesser of $4,765 or] the amount that results
from the following formula:
A = $4,720 [$4,765] X DT1R X SPVG [(DCR/MCR)]
where:
"A" is the allotment to which a district is entitled;
"DT1R" is the district's tier one tax rate, which is the tax
rate required under Section 42.252; and
"SPVG" is the statewide property value growth factor, which
is the greater of:
(1) one; or
(2) the quotient of the average statewide property
value per weighted student for the preceding school year divided by
the average statewide property value per weighted student for the
2011-2012 school year ["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].
(a-1) Notwithstanding any other provision of this section,
"SPVG" for purposes of Subsection (a) is equal to one for the
2011-2012 and 2012-2013 school years [Subsection (a) applies
beginning with the 2013-2014 school year. For the 2009-2010
through 2012-2013 school years, Subsection (a) applies, except each
reference to $4,765 in that subsection is replaced with an amount
equal to the greater of:
[(1) $4,765; or
[(2) the amount equal to the product of .0165 and the
average statewide property value per weighted student].
(a-3) For purposes of Subsection (a), the commissioner
shall determine the average statewide property value per weighted
student for the preceding school year not later than June 1. The
commissioner's determination made at the time required under this
subsection is final for purposes of determining the amount of the
basic allotment.
SECTION 12. Section 42.152(a), Education Code, is amended
to read as follows:
(a) For each student who is educationally disadvantaged or
who is a student who does not have a disability and resides in a
residential placement facility in a district in which the student's
parent or legal guardian does not reside, a district is entitled to
an annual allotment equal to the adjusted basic allotment
multiplied by 0.22 [0.2], and by 2.41 for each full-time equivalent
student who is in a remedial and support program under Section
29.081 because the student is pregnant.
SECTION 13. Section 42.153(a), Education Code, is amended
to read as follows:
(a) For each student in average daily attendance in a
bilingual education or special language program under Subchapter B,
Chapter 29, a district is entitled to an annual allotment equal to
the adjusted basic allotment multiplied by 0.11 [0.1].
SECTION 14. Sections 42.154(a), (a-1), and (c), Education
Code, are 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 0.15 [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.
(a-1) Notwithstanding any other provision of this section,
the commissioner shall develop and implement a pilot program under
which a school district is entitled to additional funding for each
student receiving career and technology instruction in grade eight.
The commissioner shall select not more than five school districts
for participation in the pilot program. In selecting school
districts for participation, the commissioner shall consider
school districts that can provide services under the program at the
least cost. For each full-time equivalent student in grade eight in
average daily attendance in an approved career and technology
education program, a school district participating in the program
under this subsection is entitled to an annual allotment equal to
the adjusted basic allotment multiplied by a weight of 0.15 [1.35].
Funds allocated under this subsection[, other than an indirect cost
allotment established under State Board of Education rule,] must be
used in providing career and technology programs in grade eight
under Sections 29.182, 29.183, and 29.184. A school district is
entitled to an allotment under this subsection for each school year
through the completion of the 2011-2012 school year. Not later than
January 1, 2013, the agency shall prepare and deliver to each member
of the legislature a report describing the effectiveness of the
pilot program described by this subsection. This subsection
expires February 1, 2013.
(c) Funds allocated under this section[, other than an
indirect cost allotment established under State Board of Education
rule,] must be used in providing career and technology education
programs in grades nine through 12 or career and technology
education programs for students with disabilities in grades seven
through 12 under Sections 29.182, 29.183, and 29.184.
SECTION 15. Sections 42.159(c), (d), (f), and (h),
Education Code, are amended to read as follows:
(c) A juvenile probation department or state agency is
entitled to receive state funding comparable to the funding
described by Subsection (d) [(b)(2)] for students under the
supervision of the department or agency.
(d) For each student who successfully completes an
electronic course that satisfies a curriculum requirement for
graduation adopted under Section 28.025 and[,] is provided through
the state virtual school network, [and exceeds a normal course
load,] including an electronic course offered during the summer,
the school district or open-enrollment charter school that provided
the course may be entitled to an allotment in an amount determined
by the commissioner based on the amount of funds appropriated for
purposes of this subsection.
(f) The commissioner may not provide partial funding under
this section to a school district or open-enrollment charter school
under Subsection [(b) or] (d) on the basis of a student who
successfully completes one or more modules of an electronic course
but does not successfully complete the entire course.
(h) The commissioner shall adopt rules necessary to
implement this section. The rules must include provisions:
(1) requiring a school district or open-enrollment
charter school that receives funding for an electronic course under
Subsection (d) to reduce the amount of any fee charged for the
course in accordance with Section 30A.155 by an amount equal to the
amount of funding provided under Subsection (d);
(2) prohibiting a school district or open-enrollment
charter school that receives funding for an electronic course under
Subsection (d) from charging a fee for the course in accordance with
Section 30A.155 that is higher than would otherwise be charged; and
(3) addressing division and distribution of the
allotment described by Subsection (d) [(b)(2)] in circumstances in
which a student transfers from one school district, school, or
other educational setting to another after beginning enrollment in
an electronic course.
SECTION 16. Section 42.252, Education Code, is amended by
amending Subsection (a) and adding Subsection (a-1) 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) $1.06 [$1.50]; or
(2) the district's effective maintenance and
operations tax rate [adopted by the district for the 2005 tax year];
and
"DPV" is the taxable value of property in the school district
for the current [preceding] tax year determined under Subchapter M,
Chapter 403, Government Code.
(a-1) For purposes of Subsection (a), a district's
effective maintenance and operations tax rate is determined by
dividing the total amount of maintenance and operations taxes
collected for the applicable school year by the quotient of the
district's taxable value of property as determined under Subchapter
M, Chapter 403, Government Code, divided by 100.
SECTION 17. Sections 42.259(c), (d), and (f), Education
Code, are amended to read as follows:
(c) Payments from the foundation school fund to each
category 2 school district shall be made as follows:
(1) 22 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of September of a fiscal year;
(2) 18 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of October;
(3) 9.5 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of November;
(4) 7.5 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of April;
(5) five percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of May;
(6) 10 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of June;
(7) 13 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of July; and
(8) 15 percent of the yearly entitlement of the
district shall be paid in an installment to be made after the 5th
day of September and not later than the 10th day of September of the
calendar year following the calendar year of the payment made under
Subdivision (1) [on or before the 25th day of August].
(d) Payments from the foundation school fund to each
category 3 school district shall be made as follows:
(1) 45 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of September of a fiscal year;
(2) 35 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of October; and
(3) 20 percent of the yearly entitlement of the
district shall be paid in an installment to be made after the 5th
day of September and not later than the 10th day of September of the
calendar year following the calendar year of the payment made under
Subdivision (1) [on or before the 25th day of August].
(f) Except as provided by Subsection (c)(8) or (d)(3), any
[Any] previously unpaid additional funds from prior fiscal years
owed to a district shall be paid to the district together with the
September payment of the current fiscal year entitlement.
SECTION 18. Section 42.260(b), Education Code, is amended
to read as follows:
(b) For each year, the commissioner shall certify to each
school district or participating charter school the amount of[:
[(1)] additional funds to which the district or school
is entitled due to the increase made by H.B. No. 3343, Acts of the
77th Legislature, Regular Session, 2001, to:
(1) [(A)] the equalized wealth level under Section
41.002; or
(2) [(B)] the guaranteed level of state and local
funds per weighted student per cent of tax effort under Section
42.302[; or
[(2) additional state aid to which the district or
school is entitled under Section 42.2513].
SECTION 19. Section 42.302(a), Education Code, is 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 $45.30
[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[,] 42.159, [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.
SECTION 20. Sections 45.003(d) and (f), Education Code, are
amended to read as follows:
(d) A proposition submitted to authorize the levy of
maintenance taxes must include the question of whether the
governing board or commissioners court may levy, assess, and
collect annual ad valorem taxes for the further maintenance of
public schools, at a rate not to exceed the rate stated in the
proposition. For any year, the maintenance tax rate per $100 of
taxable value adopted by the district may not exceed $1.17 [the rate
equal to the sum of $0.17 and the product of the state compression
percentage, as determined under Section 42.2516, multiplied by
$1.50].
(f) Notwithstanding any other law, a district that levied a
maintenance tax for the 2005 tax year at a rate greater than $1.50
per $100 of taxable value in the district as permitted by special
law may not levy a maintenance tax at a rate that exceeds the rate
per $100 of taxable value that is equal to the sum of $0.17 and 66.67
percent of [the product of the state compression percentage, as
determined under Section 42.2516, multiplied by] the rate of the
maintenance tax levied by the district for the 2005 tax year.
SECTION 21. 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 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 as
determined under Subchapter M, Chapter 403, Government Code[, or,
if applicable, Section 42.2521].
SECTION 22. 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 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 as
determined under Subchapter M, Chapter 403, Government Code[, or,
if applicable, under Section 42.2521].
SECTION 23. Section 403.302(d), Government Code, as amended
by Chapters 1186 (H.B. 3676) and 1328 (H.B. 3646), Acts of the 81st
Legislature, Regular Session, 2009, is reenacted and 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;
(3) [(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;
(4) [(5)] 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;
(5) [(6)] the total dollar amount of any exemptions
granted under Section 11.251 or 11.253, Tax Code;
(6) [(7)] 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;
(7) [(8)] 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;
(8) [(9)] 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, before the expiration of the
subchapter;
(9) [(10)] 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;
(10) [(11)] the appraised value of property the
collection of delinquent taxes on which is deferred under Section
33.06, Tax Code;
(11) [(12)] the portion of the appraised value of
property the collection of delinquent taxes on which is deferred
under Section 33.065, Tax Code; and
(12) [(13)] 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.
SECTION 24. Sections 403.302(e) and (i), Government Code,
are amended to read as follows:
(e) The total dollar amount deducted in each year as
required by Subsection (d)(3) [(d)(4)] in a reinvestment zone
created after January 1, 1999, may not exceed the captured
appraised value estimated for that year as required by Section
311.011(c)(8), Tax Code, in the reinvestment zone financing plan
approved under Section 311.011(d), Tax Code, before September 1,
1999. The number of years for which the total dollar amount may be
deducted under Subsection (d)(3) [(d)(4)] shall for any zone,
including those created on or before January 1, 1999, be limited to
the duration of the zone as specified as required by Section
311.011(c)(9), Tax Code, in the reinvestment zone financing plan
approved under Section 311.011(d), Tax Code, before September 1,
1999. The total dollar amount deducted under Subsection (d)(3)
[(d)(4)] for any zone, including those created on or before January
1, 1999, may not be increased by any reinvestment zone financing
plan amendments that occur after August 31, 1999. The total dollar
amount deducted under Subsection (d)(3) [(d)(4)] for any zone,
including those created on or before January 1, 1999, may not be
increased by a change made after August 31, 1999, in the portion of
the tax increment retained by the school district.
(i) If the comptroller determines in the 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)(12)
[(d)(13)] 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 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)(12) [(d)(13)]
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.
SECTION 25. Section 403.302(m), Government Code, as added
by Chapter 1186 (H.B. 3676), Acts of the 81st Legislature, Regular
Session, 2009, is amended to read as follows:
(m) Subsection (d)(8) [(d)(10)] does not apply to property
that was the subject of an application under Subchapter B or C,
Chapter 313, Tax Code, made after May 1, 2009, that the comptroller
recommended should be disapproved.
SECTION 26. Sections 26.08(i) and (n), Tax Code, are
amended to read as follows:
(i) For purposes of this section, the effective maintenance
and operations tax rate of a school district is the tax rate that,
applied to the current total value for the district, would impose
taxes in an amount that, when added to state funds that would be
distributed to the district under Chapter 42, Education Code, for
the school year beginning in the current tax year using that tax
rate, [including state funds that will be distributed to the
district in that school year under Section 42.2516, Education
Code,] would provide the same amount of state funds distributed
under Chapter 42, Education Code, [including state funds
distributed under Section 42.2516, Education Code,] and
maintenance and operations taxes of the district per student in
weighted average daily attendance for that school year that would
have been available to the district in the preceding year if the
funding elements for Chapters 41 and 42, Education Code, for the
current year had been in effect for the preceding year.
(n) For purposes of this section, the rollback tax rate of a
school district whose maintenance and operations tax rate for the
2005 tax year was $1.50 or less per $100 of taxable value is[:
[(1) for the 2006 tax year, the sum of the rate that is
equal to 88.67 percent of the maintenance and operations tax rate
adopted by the district for the 2005 tax year, the rate of $0.04 per
$100 of taxable value, and the district's current debt rate; and
[(2) for the 2007 and subsequent tax years,] the lesser
of the following:
(1) [(A)] the sum of the following:
(A) [(i) the rate per $100 of taxable value that
is equal to the product of the state compression percentage, as
determined under Section 42.2516, Education Code, for the current
year and $1.50;
[(ii)] the rate of $1.04 [$0.04] per $100 of
taxable value;
(B) [(iii)] the rate that is equal to the sum of
the differences for the 2006 and each subsequent tax year between
the adopted tax rate of the district for that year if the rate was
approved at an election under this section and the rollback tax rate
of the district for that year; and
(C) [(iv)] the district's current debt rate; or
(2) [(B)] the sum of the following:
(A) [(i)] the effective maintenance and
operations tax rate of the district [as computed under Subsection
(i) or (k), as applicable];
(B) [(ii)] the rate of $0.04 per $100 of taxable
value [that is equal to the product of the state compression
percentage, as determined under Section 42.2516, Education Code,
for the current year and $0.06]; and
(C) [(iii)] the district's current debt rate.
SECTION 27. (a) Sections 22.107, 29.097(g), 29.098(e),
29.203(b) and (g), 39.233, 39.234, 41.002(b), (e), (f), and (g),
41.0041, 41.093(b-1), 41.098, 42.008, 42.157, 42.159(a)(2) and
(b), 42.160, 42.2513, 42.2516, 42.25161, 42.2517, 42.2521,
42.2522, 42.2523(c), 42.2524(g), 42.253(c-1), 42.261, and
42.302(a-1), (a-2), and (f), Education Code, are repealed.
(b) Sections 403.302(k) and 466.355(c), Government Code,
are repealed.
(c) Sections 26.08(i-1) and (j), Tax Code, are repealed.
SECTION 28. The changes made by this Act to Section 42.259,
Education Code, apply only to a payment from the foundation school
fund that is made on or after the effective date of this Act. A
payment to a school district from the foundation school fund that is
made before that date is governed by Section 42.259, Education
Code, as it existed before amendment by this Act, and the former law
is continued in effect for that purpose.
SECTION 29. To the extent of any conflict, this Act prevails
over another Act of the 82nd Legislature, Regular Session, 2011,
relating to nonsubstantive additions to and corrections in enacted
codes.
SECTION 30. This Act takes effect September 1, 2011.