82R2271 ALL/GCB-D
By: White H.B. No. 3367
A BILL TO BE ENTITLED
AN ACT
relating to the repeal of the laws authorizing the imposition of ad
valorem taxes, the rates and expansion of the applicability of
state and local sales and use taxes, the distribution of sales and
use tax revenue to entities formerly imposing ad valorem taxes, and
the replacement of ad valorem tax revenue in relation to financing
public schools.
ARTICLE 1. PROPERTY TAXES
SECTION 1.01. Title 1, Tax Code, is repealed.
SECTION 1.02. Notwithstanding any other law, this state or
a political subdivision of this state may not impose an ad valorem
tax.
SECTION 1.03. The change in law made by this article does
not affect tax liability accruing before the effective date of this
Act. That liability continues in effect as if this article had not
been enacted, and the former law is continued in effect for the
collection of taxes due and for civil and criminal enforcement of
the liability for those taxes.
ARTICLE 2. SALES AND USE TAX PROVISIONS
SECTION 2.01. Subchapter A, Chapter 151, Tax Code, is
amended by adding Section 151.0037 to read as follows:
Sec. 151.0037. "ELECTIVE COSMETIC PROCEDURE". (a) In this
chapter, "elective cosmetic procedure" means any medical procedure
performed on a person that is directed at improving the person's
appearance and does not meaningfully promote the proper function of
the body or prevent or treat an illness or disease.
(b) "Elective cosmetic procedure" includes cosmetic
surgery, hair transplants, cosmetic injections, cosmetic soft
tissue fillers, dermabrasion and chemical peels, laser hair
removal, laser skin resurfacing, laser treatment of leg veins,
sclerotherapy, and cosmetic dentistry.
(c) "Elective cosmetic procedure" does not include
reconstructive surgery or dentistry, including any surgery or
dentistry performed on an abnormal structure caused by or related
to a congenital defect, developmental abnormality, injury, trauma,
infection, tumor, or disease or performed to improve the
structure's function or to give the structure a more normal
appearance.
SECTION 2.02. Section 151.00394(b), Tax Code, is amended to
read as follows:
(b) "Internet access service" does not include and the
exemption under Section 151.325 does not apply to any other taxable
service described by [listed in] Section 151.0101(a), unless the
taxable service is provided in conjunction with and is merely
incidental to the provision of Internet access service.
SECTION 2.03. Subchapter A, Chapter 151, Tax Code, is
amended by adding Section 151.0041 to read as follows:
Sec. 151.0041. "MEDICAL OR DENTAL SERVICE". (a) "Medical
or dental service" means medical or dental treatment or care
provided by or under the supervision of a licensed physician or
dentist, as applicable, that promotes the proper function of the
body or prevents, treats, or detects an illness or disease.
(b) "Medical or dental service" does not include an elective
cosmetic procedure.
SECTION 2.04. Section 151.0101(a), Tax Code, is amended to
read as follows:
(a) "Taxable services" means the performance of any
services other than services by employees as described by Section
151.057 and medical or dental services. The term includes both
services defined under this chapter and those not defined[:
[(1) amusement services;
[(2) cable television services;
[(3) personal services;
[(4) motor vehicle parking and storage services;
[(5) the repair, remodeling, maintenance, and
restoration of tangible personal property, except:
[(A) aircraft;
[(B) a ship, boat, or other vessel, other than:
[(i) a taxable boat or motor as defined by
Section 160.001;
[(ii) a sports fishing boat; or
[(iii) any other vessel used for pleasure;
[(C) the repair, maintenance, and restoration of
a motor vehicle; and
[(D) the repair, maintenance, creation, and
restoration of a computer program, including its development and
modification, not sold by the person performing the repair,
maintenance, creation, or restoration service;
[(6) telecommunications services;
[(7) credit reporting services;
[(8) debt collection services;
[(9) insurance services;
[(10) information services;
[(11) real property services;
[(12) data processing services;
[(13) real property repair and remodeling;
[(14) security services;
[(15) telephone answering services;
[(16) Internet access service; and
[(17) a sale by a transmission and distribution
utility, as defined in Section 31.002, Utilities Code, of
transmission or delivery of service directly to an electricity
end-use customer whose consumption of electricity is subject to
taxation under this chapter].
SECTION 2.05. Section 151.051(b), Tax Code, is amended to
read as follows:
(b) The sales tax rate is __ [6-1/4] percent of the sales
price of the taxable item sold.
SECTION 2.06. Section 151.325(b), Tax Code, is amended to
read as follows:
(b) The exemption provided by this section applies without
regard to:
(1) whether the Internet access service is bundled
with another service, including any other taxable service described
by [listed in] Section 151.0101(a); or
(2) the billing period used by the service provider.
SECTION 2.07. Section 151.350(d), Tax Code, is amended to
read as follows:
(d) In this section, "restore" means:
(1) launder, clean, repair, treat, or apply protective
chemicals to an item, to the extent the service is a personal
service as defined in Section 151.0045; and
(2) repair, restore, or remodel, to the extent the
service is described as a taxable service by Section 151.0101(a),
including[:
[(A)] a real property repair or remodeling
service as defined in Section 151.0047[; or
[(B) defined as a taxable service in Section
151.0101(a)(5)].
SECTION 2.08. Subchapter M, Chapter 151, Tax Code, is
amended by adding Section 151.802 to read as follows:
Sec. 151.802. DISPOSITION OF PROCEEDS FROM INCREASED RATE
AND EXPANDED TAX BASE. (a) All proceeds, other than the proceeds
allocated under Section 151.801(b), from the collection of the
taxes imposed by this chapter from the increase in the rate of the
tax effective January 1, 2012, the imposition of the tax on a
taxable item not subject to the tax before January 1, 2012, and the
amounts previously authorized to be deducted from taxable sales by
Section 151.432 before the repeal of that section effective January
1, 2012, shall be distributed as provided by this section.
(b) The comptroller shall distribute to the foundation
school fund an amount sufficient to provide each school district
with the money allotted to the district by Chapter 42, Education
Code, to be paid in the manner provided by that chapter.
(c) The chief financial officer of each entity, other than a
school district, that imposed an ad valorem tax in 2011 shall send
an affidavit to the comptroller stating the amount of revenue
generated by the tax for that year. The chief financial officer of
a school district shall send an affidavit to the comptroller
stating the amount of principal and interest payments due by the
school on bonded indebtedness in 2011 for bonds for which the
district's ad valorem taxes are pledged. The comptroller by rule
shall provide for the form of the affidavit and specify any
information that must accompany the submission of the affidavit.
The chief financial officer shall submit the affidavit in the form
and manner provided by the comptroller not later than July 1, 2012.
The comptroller shall accept the affidavit only if the comptroller
determines that the amount of revenue, or the amount of principal
and interest payments due, as applicable, stated in the affidavit
is accurate.
(d) Subject to Subsection (f), the comptroller shall each
year send to each entity for which the comptroller has accepted an
affidavit submitted under Subsection (c) the amount of money stated
in the affidavit as soon as possible, but not later than January 31
of the year following the year for which the payment is made.
(e) Beginning with the payment for 2013 and subject to
Subsection (f), the comptroller shall proportionately increase or
decrease the amount of money sent to each entity under Subsection
(d) based on the amount of the proceeds collected from the taxes
imposed by this chapter and Chapter 163 attributable to the year for
which the payment is made, as compared to the amount of those
proceeds collected for 2012.
(f) In making distributions under Subsections (d) and (e),
the comptroller shall take into consideration the distribution of
money to school districts under Subsection (b) and the cash flow
needs of the state.
(g) After distribution by the comptroller of all the money
necessary to make payments under this section for a year, any
remaining revenue attributable to that year shall be deposited to
the credit of the general revenue fund.
SECTION 2.09. Sections 321.101(a) and (f), Tax Code, are
amended to read as follows:
(a) A municipality may adopt or repeal a sales and use tax
authorized by this chapter [, other than the additional municipal
sales and use tax,] at an election in which a majority of the
qualified voters of the municipality approve the adoption or repeal
of the tax.
(f) A municipality may not adopt or increase a sales and use
tax [or an additional sales and use tax] under this section if as a
result of the adoption or increase of the tax the combined rate of
all sales and use taxes imposed by the municipality and other
political subdivisions of this state having territory in the
municipality would exceed two percent at any location in the
municipality.
SECTION 2.10. Section 321.102(a), Tax Code, is amended to
read as follows:
(a) A tax imposed under this chapter or the repeal of a tax
abolished under this chapter takes effect on the first day of the
first calendar quarter occurring after the expiration of the first
complete calendar quarter occurring after the date on which the
comptroller receives a notice of the action as required by Section
321.405(b). [This subsection does not apply to the additional
municipal sales and use tax.]
SECTION 2.11. Section 321.103, Tax Code, is amended to read
as follows:
Sec. 321.103. SALES TAX. [(a)] In a municipality that has
adopted the tax authorized by this chapter [Section 321.101(a)],
there is imposed a tax on the receipts from the sale at retail of
taxable items within the municipality at the rate of one percent and
at the same rate on the receipts from the sale at retail within the
municipality of gas and electricity for residential use.
[(b) In a municipality that has adopted the additional
municipal sales and use tax, the tax is imposed at the rate approved
by the voters. The rate, when the tax is adopted, must be equal to
either one-eighth, one-fourth, three-eighths, or one-half of one
percent. The rate may be reduced in one or more increments of
one-eighth of one percent to a minimum of one-eighth of one percent
or increased in one or more increments of one-eighth of one percent
to a maximum of one-half of one percent, or the tax may be
abolished. The rate that the municipality adopts is on the receipts
from the sale at retail of all taxable items within the municipality
and at the same rate on the receipts from the sale at retail within
the municipality of gas and electricity for residential use unless
the residential use of gas and electricity is exempted from the tax
imposed under Section 321.101(a), in which case the residential use
of gas and electricity is exempted under this subsection also.]
SECTION 2.12. Section 321.106(a), Tax Code, is amended to
read as follows:
(a) Subject to an election held in accordance with Chapter
344, Local Government Code, a municipality in which a fire control,
prevention, and emergency medical services district is established
shall adopt a sales and use tax in the area of the district for the
purpose of financing the operation of the fire control, prevention,
and emergency medical services district. The revenue from the tax
may be used only for the purpose of financing the operation of the
fire control, prevention, and emergency medical services district.
The proposition for adopting a tax under this section and the
proposition for creation of a fire control, prevention, and
emergency medical services district shall be submitted at the same
election. [For purposes of Section 321.101, a tax under this
section is not an additional sales and use tax.]
SECTION 2.13. Section 321.108(f), Tax Code, is amended to
read as follows:
(f) If, in a municipality in which a crime control and
prevention district is composed of the whole municipality, a
municipal sales and use tax or a municipal sales and use tax rate
increase for the purpose of financing a crime control and
prevention district is approved, the municipality is responsible
for distributing to the district that portion of the municipal
sales and use tax revenue received from the comptroller that is to
be used for the purposes of financing the crime control and
prevention district. Not later than the 10th day after the date
the municipality receives money under this section from the
comptroller, the municipality shall make the distribution in the
proportion that the crime control and prevention portion of the tax
rate bears to the total sales and use tax rate of the
municipality. [The amounts distributed to a crime control and
prevention district are not considered to be additional municipal
sales and use tax revenue for the purpose of property tax reduction
and computation of the municipal tax rate under Section 26.041.]
SECTION 2.14. Section 321.201(a), Tax Code, is amended to
read as follows:
(a) Each retailer in a municipality that has adopted the [a]
tax authorized by this chapter shall add the [each] sales tax
imposed by the municipality under this chapter and by Chapter 151 to
the sales price, and the sum of the taxes is a part of the price, a
debt of the purchaser to the retailer until paid, and recoverable at
law in the same manner as the purchase price. If the municipality
imposes the tax on gas and electricity for residential use, only the
municipal tax is added to the sales price of sales of gas and
electricity for residential use.
SECTION 2.15. Subchapter C, Chapter 321, Tax Code, is
amended by adding Section 321.2075 to read as follows:
Sec. 321.2075. LOCAL TAX APPLICABLE TO OTHER STATE TAXES.
(a) Notwithstanding any other provision of this chapter, the sales
tax authorized by this chapter also applies to the tax imposed by
Chapter 163.
(b) The exemptions provided for under Chapter 163 apply to
the taxes authorized by this chapter.
(c) For purposes of administering, collecting, and
enforcing the tax authorized under this section, a reference in
this chapter to Chapter 151 includes Chapter 163.
SECTION 2.16. Sections 321.403 and 321.404, Tax Code, are
amended to read as follows:
Sec. 321.403. TIME OF ELECTION. [(a)] An election under
this chapter to adopt the tax authorized by this chapter [under
Section 321.101(a)] must be held on the first succeeding uniform
election date for which sufficient time elapses for the holding of
an election.
[(b) An election on the approval of the additional sales and
use tax must be held on the next succeeding uniform election date
not less than 30 days after the passage of the ordinance calling the
election.]
Sec. 321.404. BALLOT WORDING. (a) In an election to adopt
the tax, the ballot shall be printed to provide for voting for or
against the [applicable] proposition: "A one percent sales and use
tax is adopted within the city." [or "The adoption of an additional
sales and use tax within the city at the rate of ________ of one
percent to be used to reduce the property tax rate" (one-eighth,
one-fourth, three-eighths, or one-half to be inserted as
appropriate).]
(b) In an election to repeal the tax, the ballot shall be
printed to provide for voting for or against the [applicable]
proposition: "The local sales and use tax within the city is
abolished[" or "The abolition of the additional sales and use tax
within the city]."
[(c) In a municipality that does not impose a property tax,
the ballot at an election to adopt the additional municipal sales
and use tax shall be printed to provide for voting for or against
the following proposition: "The adoption of an additional sales
and use tax within the city at the rate of ________ of one percent"
(one-eighth, one-fourth, three-eighths, or one-half to be inserted
as appropriate).]
SECTION 2.17. Section 321.409(a), Tax Code, is amended to
read as follows:
(a) Notwithstanding any provisions of this code or other
state law, a municipality may by a combined ballot proposition
lower or repeal any dedicated or special purpose municipal sales
tax [, including the additional sales tax for property tax relief,]
and by the same proposition raise or adopt any other dedicated or
special purpose municipal sales tax [, including the additional
sales tax for property tax relief].
SECTION 2.18. Section 321.506, Tax Code, is amended to read
as follows:
Sec. 321.506. USE OF TAX REVENUE BY MUNICIPALITY. The
[Except as provided by Section 321.507, the] money received by a
municipality under this chapter is for the use and benefit of the
municipality and may be used for any purpose for which the general
funds of the municipality may be used[, except that a municipality
may not pledge the revenue received under this chapter to the
payment of bonds or other indebtedness].
SECTION 2.19. Sections 321.508(a), (b), and (f), Tax Code,
are amended to read as follows:
(a) A municipality may call and hold an election on the
issue of authorizing the municipality to pledge a percentage of the
sales and use tax revenue received under Section 321.101(a) [or
(b), or both,] to the payment of obligations issued to pay all or
part of the costs of one or more sports and community venue projects
located in the municipality.
(b) The ballot at the election under this section must be
printed to permit voting for or against the proposition:
"Authorizing the City of ______ (insert name of municipality) to
pledge not more than ______ percent (insert percentage not to
exceed 25 percent) of the revenue received from the[ _________
(insert ] municipal sales and use tax [, additional municipal sales
and use tax, or both)] previously adopted in the city to the payment
of obligations issued to pay all or part of the costs of _________
(insert description of each sports and community venue project)."
(f) Section [Sections] 321.506 does [and 321.507 do] not
apply to taxes pledged under this section.
SECTION 2.20. Subchapter B, Chapter 322, Tax Code, is
amended by adding Section 322.1065 to read as follows:
Sec. 322.1065. LOCAL TAX APPLICABLE TO OTHER STATE TAXES.
(a) Notwithstanding any other provision of this chapter, the sales
tax authorized by this chapter also applies to the tax imposed by
Chapter 163.
(b) The exemptions provided for under Chapter 163 apply to
the taxes authorized by this chapter.
(c) For purposes of administering, collecting, and
enforcing the tax authorized under this section, a reference in
this chapter to Chapter 151 includes Chapter 163.
SECTION 2.21. Section 323.101(e), Tax Code, is amended to
read as follows:
(e) If the voters of a county approve the adoption of a sales
and use tax at an election held on the same election date on which a
municipality having territory in the county adopts a sales and use
tax [or an additional sales and use tax] and as a result the
combined rate of all sales and use taxes imposed by the county and
other political subdivisions of this state having territory in the
county would exceed two percent at any location in the county, the
election to adopt a county sales and use tax has no effect.
SECTION 2.22. Subchapter C, Chapter 323, Tax Code, is
amended by adding Section 323.2065 to read as follows:
Sec. 323.2065. LOCAL TAX APPLICABLE TO OTHER STATE TAXES.
(a) Notwithstanding any other provision of this chapter, the sales
tax authorized by this chapter also applies to the tax imposed by
Chapter 163.
(b) The exemptions provided for under Chapter 163 apply to
the taxes authorized by this chapter.
(c) For purposes of administering, collecting, and
enforcing the tax authorized under this section, a reference in
this chapter to Chapter 151 includes Chapter 163.
SECTION 2.23. Sections 323.404(a) and (b), Tax Code, are
amended to read as follows:
(a) Except as provided by Subsection (b), in an election to
adopt the tax, the ballot shall be printed to provide for voting for
or against the proposition: "Adoption of a one-half percent county
sales and use tax within the county [to be used to reduce the county
property tax rate]."
(b) In an election in a county that includes no territory
within the limits of a municipality, the ballot shall be printed to
provide for voting for or against the proposition: "Adoption of a
one percent county sales and use tax within the county [to be used
to reduce the county property tax rate]."
SECTION 2.24. Section 323.505, Tax Code, is amended to read
as follows:
Sec. 323.505. USE OF TAX REVENUE. [(a)] The money
received by a county under this chapter is for the use and benefit
of the county and may be used for any purpose for which the general
funds of the county may be used [shall be used for the replacement
of property tax revenue lost as a result of the adoption of the
taxes authorized by this chapter. Except as provided by Subsection
(b), the revenue in excess of the revenue used to replace those
property taxes shall be used for the reduction of indebtedness of
the county. After all indebtedness is paid, the excess may be used
for any purpose for which county general revenue may be used. A
county may not pledge anticipated revenue from this source to
secure the payment of bonds or other indebtedness for a period
longer than one year.
[(b) Revenue collected from the tax imposed under this
chapter in each of the first three years in which the tax is imposed
in the county in excess of the amount determined as provided by
Section 26.041(d) for each year shall be deposited in an account to
be called the excess sales tax revenue fund. During those three
years, revenue deposited in the excess sales tax revenue fund may be
used only if and to the extent that taxes or other revenues of the
county are collected in amounts less than anticipated. After that
period, the revenue in the fund may be used for any purpose for
which county general revenue may be used. The fund ceases to exist
when all revenue deposited in the fund has been spent].
SECTION 2.25. Subtitle C, Title 3, Tax Code, is amended by
adding Chapter 328 to read as follows:
CHAPTER 328. EXPANDED TAX BASE FOR POLITICAL SUBDIVISIONS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 328.001. DEFINITIONS. In this chapter:
(1) "Expanded tax base" means the sale, use, storage,
rental, or other consumption of a taxable item under Chapter 151
that was not subject to the tax imposed by that chapter on December
31, 2011, or real estate that is subject to the taxes imposed by
Chapter 163.
(2) "Political subdivision" means any governmental
entity that is authorized to impose a sales and use tax, including a
municipality, county, transportation authority created under
Subtitle K, Title 6, Transportation Code, crime control and
prevention district, emergency services district, hospital
district, library district, or municipal management or improvement
district.
Sec. 328.002. CHAPTER GOVERNS. Notwithstanding any other
law, this chapter governs the rate and computation of the sales and
use tax of each political subdivision to which this chapter
applies.
[Sections 328.003-328.020 reserved for expansion]
SUBCHAPTER B. POLITICAL SUBDIVISION THAT IMPOSED AD VALOREM TAX
Sec. 328.021. APPLICATION OF SUBCHAPTER. This subchapter
applies to a political subdivision that imposed an ad valorem tax
for the 2011 tax year and that imposed a sales and use tax on
December 31, 2011.
Sec. 328.022. EXPANDED TAX BASE INDEX COMPUTATION AND
NOTIFICATION. (a) Not later than December 1, 2011, the comptroller
shall compute an expanded tax base index for each political
subdivision subject to this subchapter.
(b) The expanded tax base index for a political subdivision
is computed by subtracting from one a fraction, expressed as a
percentage and rounded down to the nearest one-eighth of one
percent:
(1) the numerator of which is:
(A) the total amount of sales and use tax
collected by the subdivision on the sale, use, storage, and other
consumption of all taxable items, including sales and use tax
imposed for the benefit of another entity, for the period beginning
on July 1, 2010, and ending on June 30, 2011; and
(B) the total ad valorem taxes collected by the
subdivision for the period beginning on January 1, 2010, and ending
on December 31, 2010; and
(2) the denominator of which is the total amount of
sales and use taxes that the comptroller estimates would have been
collected by the subdivision on the sale, use, storage, and other
consumption of all taxable items that will be subject to the tax
imposed by Chapter 151 on January 1, 2012, including sales and use
taxes imposed for the benefit of another entity and also including
taxable items subject to the tax on December 31, 2011, and real
estate subject to the tax imposed by Chapter 163, had those items
been taxed for the entire period beginning on July 1, 2010, and
ending on June 30, 2011.
(c) For purposes of Subsection (b)(1), the comptroller may
estimate the amount of taxes that would have been collected by a
political subdivision that did not collect a tax for the entire
applicable period.
(d) The comptroller shall establish each expanded tax base
index using generally accepted statistical techniques and any
relevant information available to the comptroller.
(e) The comptroller shall notify a political subdivision if
the subdivision's expanded tax base index computed under Subsection
(b) is greater than zero. The comptroller is not required to notify
a subdivision if the subdivision's expanded tax base index is less
than or equal to zero.
Sec. 328.023. TAX RATE ADJUSTMENT. (a) Except as provided
by Section 328.025, this section does not apply to a political
subdivision for which the comptroller has computed an expanded tax
base index under Section 328.022 of less than or equal to zero.
(b) Effective on January 1, 2012, a political subdivision
shall reduce the rate at which the subdivision is imposing the sales
and use tax by the percentage equal to the subdivision's expanded
tax base index, provided that the reduced rate may not be less than:
(1) __________ for a municipality;
(2) __________ for a county; and
(3) __________ for another type of political
subdivision subject to this subchapter.
(c) In addition to the reduction of the rate imposed by a
political subdivision under Subsection (b), the maximum tax rate at
which the subdivision may impose the sales and use tax is also
automatically reduced by the same percentage, provided that the
reduced maximum rate may not be less than the applicable rate
prescribed by Subsection (b).
(d) The comptroller shall deliver to each political
subdivision required to reduce a tax rate under this section the
expanded tax base index on or before December 15, 2011.
(e) Except for mandamus to compute or recompute the expanded
tax base, a determination under this section is not subject to
appeal.
Sec. 328.024. EXPANDED TAX BASE INDEX RECOMPUTATION AND
NOTIFICATION. Not later than August 1, 2013, the comptroller shall
recompute the expanded tax base index for each political
subdivision subject to this subchapter in the same manner as the
computation under Section 328.022, taking into account at least one
year's actual economic experience in relation to the expanded tax
base and any other factor the comptroller determines is
appropriate. The comptroller shall notify each subdivision of the
subdivision's recomputed expanded tax base index.
Sec. 328.025. RECOMPUTED TAX RATE ADJUSTMENT. (a) This
section does not apply to a political subdivision for which the
comptroller has:
(1) computed an expanded tax base index under Section
328.022 of less than or equal to zero; and
(2) recomputed an expanded tax base index under
Section 328.024 of less than or equal to zero.
(b) Effective on the earlier of October 1, 2013, or the
first day of the next calendar quarter that begins at least 30 days
after the date the comptroller notifies a political subdivision of
the subdivision's recomputed expanded tax base index under Section
328.024, the subdivision shall adjust the rate at which the
subdivision is imposing the sales and use tax and the subdivision's
maximum tax rate as necessary to reflect the recomputed expanded
tax base index. The subdivision shall set the subdivision's
adjusted rates at the rates the subdivision determines would have
applied under Section 328.023 had the recomputed expanded tax base
index been used in the computation under that section.
[Sections 328.026-328.100 reserved for expansion]
SUBCHAPTER C. POLITICAL SUBDIVISION THAT DID NOT IMPOSE AD
VALOREM TAX
Sec. 328.101. APPLICATION OF SUBCHAPTER. This subchapter
applies to a political subdivision that did not impose an ad valorem
tax for the 2011 tax year and that imposed a sales and use tax on
December 31, 2011.
Sec. 328.102. EXPANDED TAX BASE INDEX COMPUTATION AND
NOTIFICATION. (a) Not later than December 1, 2011, the comptroller
shall compute an expanded tax base index for each political
subdivision subject to this subchapter.
(b) The expanded tax base index for a political subdivision
is computed by subtracting from one a fraction, expressed as a
percentage and rounded down to the nearest one-eighth of one
percent:
(1) the numerator of which is the total amount of sales
and use tax collected by the subdivision on the sale, use, storage,
and other consumption of all taxable items for the period beginning
on July 1, 2010, and ending on June 30, 2011; and
(2) the denominator of which is the total amount of
sales and use taxes that the comptroller estimates would have been
collected by the subdivision on the sale, use, storage, and other
consumption of all taxable items that will be subject to the tax
imposed by Chapter 151 on January 1, 2012, including taxable items
subject to the tax on December 31, 2011, and real estate subject to
the tax imposed by Chapter 163, had those items been taxed for the
entire period beginning on July 1, 2010, and ending on June 30,
2011.
(c) For purposes of Subsection (b)(1), the comptroller may
estimate the amount of taxes that would have been collected by a
political subdivision that did not collect a tax for the entire
applicable period.
(d) The comptroller shall establish each expanded tax base
index using generally accepted statistical techniques and any
relevant information available to the comptroller.
(e) The comptroller shall notify each political subdivision
subject to this subchapter of the subdivision's expanded tax base
index.
Sec. 328.103. TAX RATE ADJUSTMENT. (a) Effective on
January 1, 2012, a political subdivision shall reduce the rate at
which the subdivision is imposing the sales and use tax by the
percentage equal to the subdivision's expanded tax base index,
provided that the reduced rate may not be less than:
(1) _______________________ for a municipality;
(2) _______________________ for a transportation
authority created under Subtitle K, Title 6, Transportation Code;
(3) _______________________ for a county; and
(4) _______________________ for another type of
political subdivision subject to this subchapter.
(b) In addition to the reduction of the rate imposed by a
political subdivision under Subsection (a), the maximum tax rate at
which the subdivision may impose the sales and use tax is also
automatically reduced by the same percentage, provided that the
reduced maximum rate may not be less than the applicable rate
prescribed by Subsection (a).
(c) The comptroller shall deliver to each political
subdivision required to reduce a tax rate under this section the
expanded tax base index on or before December 15, 2011.
(d) Except for mandamus to compute or recompute the expanded
tax base, a determination under this section is not subject to
appeal.
Sec. 328.104. EXPANDED TAX BASE INDEX RECOMPUTATION AND
NOTIFICATION. Not later than August 1, 2013, the comptroller shall
recompute the expanded tax base index for each political
subdivision subject to this subchapter in the same manner as the
computation under Section 328.102, taking into account at least one
year's actual economic experience in relation to the expanded tax
base and any other factor the comptroller determines is
appropriate. The comptroller shall notify each subdivision of the
subdivision's recomputed expanded tax base index.
Sec. 328.105. RECOMPUTED TAX RATE ADJUSTMENT. Effective on
the earlier of October 1, 2013, or the first day of the next
calendar quarter that begins at least 30 days after the date the
comptroller notifies a political subdivision of the subdivision's
recomputed expanded tax base index under Section 328.104, the
subdivision shall adjust the rate at which the subdivision is
imposing the sales and use tax and the subdivision's maximum tax
rate as necessary to reflect the recomputed expanded tax base
index. The subdivision shall set the subdivision's adjusted rates
at the rates the subdivision determines would have applied under
Section 328.103 had the recomputed expanded tax base index been
used in the computation under that section.
SECTION 2.26. The following provisions of the Tax Code are
repealed:
(1) Section 151.305;
(2) Section 151.311;
(3) Section 151.3111;
(4) Section 151.319(a);
(5) Section 151.320;
(6) Section 151.333;
(7) Section 151.335;
(8) Section 151.336;
(9) Section 151.340;
(10) Section 151.351;
(11) Section 151.432;
(12) Section 321.002(a)(1);
(13) Section 321.004;
(14) Sections 321.101(b), (c), (d), and (e);
(15) Section 321.102(b);
(16) Section 321.1025;
(17) Section 321.206;
(18) Section 321.2091;
(19) Sections 321.401(d) and (e);
(20) Section 321.405(c); and
(21) Section 321.507.
SECTION 2.27. Notwithstanding any other law, beginning
January 1, 2012, a municipality of this state may not impose an
additional municipal sales and use tax.
SECTION 2.28. (a) The receipts from the sale, use, or
rental of and the storage, use, or consumption in this state of
taxable services that become subject to the sales and use tax under
Chapter 151, Tax Code, because of the change in law made by this
article are exempt from the sales and use tax if:
(1) the services are used for the performance of a
written contract entered into before the date this Act takes effect
if the contract is not subject to change or modification by reason
of the tax or the services are used pursuant to an obligation of a
bid or bids submitted before the date this Act takes effect if the
bid or bids may not be withdrawn, modified, or changed by reason of
the tax imposed by this article; and
(2) notice of a contract or bid on which an exemption
is to be claimed is given by the taxpayer to the comptroller of
public accounts before the 61st day after the date this Act takes
effect.
(b) The exemption provided by this section expires on
December 31, 2014.
SECTION 2.29. (a) There is exempted from the use tax
imposed by Subchapter D, Chapter 151, Tax Code, the storage, use, or
other consumption of an item of tangible personal property or real
property or the value of the performance of a service if the item or
service was purchased before January 1, 2012, and the item or
service was exempt, or, had it been purchased in Texas at the same
time would have been exempt, from the sales tax imposed by
Subchapter C, Chapter 151, Tax Code.
(b) This section does not apply to an item or service
otherwise exempted by this section after the item or service is
subject to the sales tax imposed by Subchapter C, Chapter 151, Tax
Code, because of a subsequent sale or lease of the item.
SECTION 2.30. (a) The comptroller of public accounts shall
begin payments under Section 151.802, Tax Code, as added by this
article, beginning with payments for the calendar year 2012.
(b) The change in law made by this article does not affect
tax liability accruing before the effective date of this Act. That
liability continues in effect as if this article had not been
enacted, and the former law is continued in effect for the
collection of taxes due and for civil and criminal enforcement of
the liability for those taxes.
ARTICLE 3. REAL ESTATE TRANSACTION TAX
SECTION 3.01. Subtitle E, Title 2, Tax Code, is amended by
adding Chapter 163 to read as follows:
CHAPTER 163. REAL ESTATE TRANSACTION TAX
Sec. 163.001. DEFINITIONS. In this chapter:
(1) "Real estate" means real property, including a
building, structure, or other improvement to real property.
(2) "Sale" means any of the following when done or
performed for consideration:
(A) a transfer of title or possession of real
estate; and
(B) the exchange, barter, lease, or rental of
real estate.
Sec. 163.002. TAX IMPOSED. (a) A tax is imposed on each
sale of real estate in this state.
(b) The tax rate is _______ percent of the sale price of the
real estate.
Sec. 163.003. COLLECTION, ADMINISTRATION, AND ENFORCEMENT
OF TAX. The sale of real estate under this chapter shall be
treated, for the purposes of the collection, administration, and
enforcement of the tax under this chapter, as the sale of a taxable
item under Chapter 151 and the applicable provisions of that
chapter apply for these purposes.
Sec. 163.004. EXEMPTIONS. A person who is exempted from the
state sales and use tax imposed under Chapter 151 is exempt from the
tax imposed under this chapter.
Sec. 163.005. REVENUE. The revenue from the collection of
taxes imposed under this chapter shall be deposited to the credit of
the general revenue fund.
SECTION 3.02. (a) There are exempted from the taxes
imposed under Chapter 163, Tax Code, as added by this article, the
receipts from the sale of real estate that is the subject of a
written contract or bid entered into on or before March 1, 2011.
(b) The exemption provided by this section expires January
1, 2014.
ARTICLE 4. PUBLIC SCHOOL FINANCE
SECTION 4.01. The heading to Section 42.002, Education
Code, is amended to read as follows:
Sec. 42.002. PURPOSE [PURPOSES] OF FOUNDATION SCHOOL
PROGRAM.
SECTION 4.02. Section 42.002(a), Education Code, is amended
to read as follows:
(a) The purpose [purposes] of the Foundation School Program
set forth in this chapter is [are] to guarantee that each school
district in the state has[:
[(1)] adequate resources to provide each eligible
student a basic instructional program and facilities suitable to
the student's educational needs[; and
[(2) access to a substantially equalized program of
financing in excess of basic costs for certain services, as
provided by this chapter].
SECTION 4.03. Section 42.007(c), Education Code, is amended
to read as follows:
(c) The funding elements must include:
(1) a basic allotment for the purposes of Section
42.101 that[, when combined with the guaranteed yield component
provided by Subchapter F,] represents the cost per student of a
regular education program that meets all mandates of law and
regulation;
(2) adjustments designed to reflect the variation in
known resource costs and costs of education beyond the control of
school districts; and
(3) appropriate program cost differentials and other
funding elements for the programs authorized under Subchapter C,
with the program funding level expressed as dollar amounts and as
weights applied to the adjusted basic allotment for the appropriate
year[;
[(4) the maximum guaranteed level of qualified state
and local funds per student for the purposes of Subchapter F;
[(5) the enrichment and facilities tax rate under
Subchapter F;
[(6) the computation of students in weighted average
daily attendance under Section 42.302; and
[(7) the amount to be appropriated for the school
facilities assistance program under Chapter 46].
SECTION 4.04. Section 42.008, Education Code, is amended by
amending Subsection (a) and adding Subsection (a-1) to read as
follows:
(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 $350 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 2013-2014
school year. For the 2012-2013 school year, notwithstanding any
other provision of this title, a school district is not entitled to
receive a total amount of state maintenance and operations revenue
per student in average daily attendance that exceeds by more than
$350 the amount of state and local maintenance and operations
revenue per student in average daily attendance received by the
district during the 2010-2011 school year. This subsection expires
September 1, 2013.
SECTION 4.05. Sections 42.101(a) and (a-1), Education Code,
are amended 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 = $4,765 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].
(a-1) Subsection (a) applies beginning with the 2013-2014
school year. For the [2009-2010 through] 2012-2013 school year
[years], Subsection (a) applies, except the [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.
SECTION 4.06. Section 42.154(e), Education Code, is amended
to read as follows:
(e) Out of the total statewide allotment for career and
technology education under this section, the commissioner shall set
aside an amount specified in the General Appropriations Act, which
may not exceed an amount equal to one percent of the total amount
appropriated, to support regional career and technology education
planning. After deducting the amount set aside under this
subsection from the total amount appropriated for career and
technology education under this section, the commissioner shall
reduce each district's allotment proportionately and shall
allocate funds to each district accordingly [tier one allotments in
the same manner described for a reduction in allotments under
Section 42.253].
SECTION 4.07. Section 42.156(d), Education Code, is amended
to read as follows:
(d) If the amount of state funds for which school districts
are eligible under this section exceeds the amount of state funds
appropriated in any year for the programs, the commissioner shall
reduce each district's allotment proportionately and shall
allocate funds to each district accordingly [tier one allotments in
the same manner described for a reduction in allotments under
Section 42.253].
SECTION 4.08. Sections 42.158(d) and (g), Education Code,
are amended to read as follows:
(d) Subject to Subsection (d-1), the amount appropriated
for allotments under this section may not exceed $25 million in a
school year. If the total amount of allotments to which districts
are entitled under this section for a school year exceeds the amount
appropriated under this subsection, the commissioner shall reduce
each district's allotment under this section proportionately [in
the manner provided by Section 42.253(h)].
(g) In this section, "instructional facility" means real
property, an improvement to real property, or a necessary fixture
of an improvement to real property that is used predominately for
teaching the curriculum required under Section 28.002 [has the
meaning assigned by Section 46.001].
SECTION 4.09. Section 42.159(g), Education Code, is amended
to read as follows:
(g) Amounts received by a school district or
open-enrollment charter school under this section are in addition
to any amounts to which the district or school is entitled to
receive [or retain] under Chapter 12 [or 41] or this chapter and are
not subject to reduction under any provision of those chapters.
SECTION 4.10. Section 42.251, Education Code, is amended to
read as follows:
Sec. 42.251. FINANCING; GENERAL RULE. (a) The sum of the
basic allotment under Subchapter B and the special allotments
under Subchapter C, computed in accordance with this chapter,
constitute the [tier one allotments. The sum of the tier one
allotments and the guaranteed yield allotments under Subchapter F,
computed in accordance with this chapter, constitute the] total
cost of the Foundation School Program.
(b) The program shall be financed by:
(1) [ad valorem tax revenue generated by an equalized
uniform school district effort;
[(2) ad valorem tax revenue generated by local school
district effort in excess of the equalized uniform school district
effort;
[(3)] state available school funds distributed in
accordance with law; and
(2) [(4)] state funds appropriated for the purposes of
public school education and allocated to each district in an amount
sufficient to finance the cost of each district's Foundation School
Program not covered by state available school [other] funds
[specified in this subsection].
SECTION 4.11. Section 42.2513(a), Education Code, is
amended to read as follows:
(a) A school district[, including a school district that is
otherwise ineligible for state aid under this chapter,] is entitled
to state aid in an amount equal to the sum of:
(1) the product of $500 multiplied by the number of
full-time district employees, other than administrators or
employees subject to the minimum salary schedule under Section
21.402; and
(2) the product of $250 multiplied by the number of
part-time district employees, other than administrators.
SECTION 4.12. Sections 42.2524(c) and (d), Education Code,
are amended to read as follows:
(c) The commissioner may provide reimbursement under this
section only if funds are available for that purpose [as follows:
[(1) reimbursement for a school district not required
to take action under Chapter 41 may be provided] from:
(1) [(A)] amounts appropriated for that purpose,
including amounts appropriated for those districts for that purpose
to the disaster contingency fund established under Section 418.073,
Government Code; or
(2) [(B)] Foundation School Program funds available
for that purpose, based on a determination by the commissioner that
the amount appropriated for the Foundation School Program[,
including the facilities component as provided by Chapter 46,]
exceeds the amount to which districts are entitled under this
chapter [and Chapter 46; and
[(2) reimbursement for a school district required to
take action under Chapter 41 may be provided from funds described by
Subdivision (1)(B) if funds remain available after fully
reimbursing each school district described by Subdivision (1) for
its disaster remediation costs].
(d) If the amount of money available for purposes of
reimbursing school districts [not required to take action under
Chapter 41] is not sufficient to fully reimburse each district's
disaster remediation costs, the commissioner shall reduce the
amount of assistance provided to each of those districts
proportionately. [If the amount of money available for purposes of
reimbursing school districts required to take action under Chapter
41 is not sufficient to fully reimburse each district's disaster
remediation costs, the commissioner shall reduce the amount of
assistance provided to each of those districts proportionately.]
SECTION 4.13. Sections 42.253(a), (b), (c), (g), (h), and
(i), Education Code, are amended to read as follows:
(a) For each school year the commissioner shall determine:
(1) the amount of money to which a school district is
entitled under Subchapters B and C; and
(2) [the amount of money to which a school district is
entitled under Subchapter F;
[(3)] the amount of money allocated to the district
from the available school fund[;
[(4) the amount of each district's tier one local share
under Section 42.252; and
[(5) the amount of each district's tier two local share
under Section 42.302].
(b) The [Except as provided by this subsection, the]
commissioner shall base the determinations under Subsection (a) on
the estimate [estimates] provided to the legislature under Section
42.254, or, if the General Appropriations Act provides an estimate
[estimates] for that purpose, on the estimate [estimates] provided
under that Act, for each school district for each school year. [The
commissioner shall reduce the entitlement of each district that has
a final taxable value of property for the second year of a state
fiscal biennium that is higher than the estimate under Section
42.254 or the General Appropriations Act, as applicable. A
reduction under this subsection may not reduce the district's
entitlement below the amount to which it is entitled at its actual
taxable value of property.]
(c) Each school district is entitled to an amount equal to
the difference for that district between [the sum of] Subsections
(a)(1) and (a)(2) [and the sum of Subsections (a)(3), (a)(4), and
(a)(5)].
(g) If a school district demonstrates to the satisfaction of
the commissioner that the estimate of the district's [tax rate,]
student enrollment[, or taxable value of property] used in
determining the amount of state funds to which the district is
entitled is [are] so inaccurate as to result in undue financial
hardship to the district, the commissioner may adjust funding to
that district in that school year to the extent that funds are
available for that year.
(h) If the amount appropriated for the Foundation School
Program for the second year of a state fiscal biennium is less than
the amount to which school districts are entitled for that year, the
commissioner shall certify the amount of the difference to the
Legislative Budget Board not later than January 1 of the second year
of the state fiscal biennium. The Legislative Budget Board shall
propose to the legislature that the certified amount be transferred
to the foundation school fund from the economic stabilization fund
and appropriated for the purpose of increases in allocations under
this subsection. If the legislature fails during the regular
session to enact the proposed transfer and appropriation and there
are not funds available under Subsection (j), the commissioner
shall reduce the total amount of state funds allocated to each
district proportionately [by an amount determined by a method under
which the application of the same number of cents of increase in tax
rate in all districts applied to the taxable value of property of
each district, as determined under Subchapter M, Chapter 403,
Government Code, results in a total levy equal to the total
reduction]. The following fiscal year, a district's entitlement
under this section is increased by an amount equal to the reduction
made under this subsection.
(i) Not later than March 1 each year, the commissioner shall
determine the actual amount of state funds to which each school
district is entitled under the allocation formulas in this chapter
for the current school year and shall compare that amount with the
amount of the warrants issued to each district for that year. If
the amount of the warrants differs from the amount to which a
district is entitled because of variations in the district's [tax
rate,] student enrollment, [or taxable value of property,] the
commissioner shall adjust the district's entitlement for the next
fiscal year accordingly.
SECTION 4.14. Section 42.254, Education Code, is amended to
read as follows:
Sec. 42.254. ESTIMATE [ESTIMATES] REQUIRED. (a) Not later
than October 1 of each even-numbered year,[:
[(1)] the agency shall submit to the legislature an
estimate of the [tax rate and] student enrollment of each school
district for the following biennium[; and
[(2) the comptroller shall submit to the legislature
an estimate of the total taxable value of all property in the state
as determined under Subchapter M, Chapter 403, Government Code, for
the following biennium].
(b) The agency [and the comptroller] shall update the
information provided to the legislature under Subsection (a) not
later than March 1 of each odd-numbered year.
SECTION 4.15. Section 42.259(b), Education Code, is amended
to read as follows:
(b) Payments from the foundation school fund to each
[category 1] school district shall be made as follows:
(1) 15 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) 80 percent of the yearly entitlement of the
district shall be paid in eight equal installments to be made on or
before the 25th day of October, November, December, January, March,
May, June, and July; and
(3) 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 February.
SECTION 4.16. Section 42.352, Education Code, is amended to
read as follows:
Sec. 42.352. STANDARDS. The State Board of Education shall
establish standards for adequacy of school facilities. The
standards shall include requirements related to space, educational
adequacy, and construction quality. All facilities constructed
after September 1, 1992, must meet the standards in order to be
financed with state [or local tax] funds.
SECTION 4.17. Section 43.002(b), Education Code, is amended
to read as follows:
(b) Of the amounts available for transfer from the general
revenue fund to the available school fund for the months of January
and February of each fiscal year, no more than the amount necessary
to enable the comptroller to distribute from the available school
fund an amount equal to 9-1/2 percent of the estimated annual
available school fund apportionment to [category 1] school
districts[, as defined by Section 42.259, and 3-1/2 percent of the
estimated annual available school fund apportionment to category 2
school districts, as defined by Section 42.259,] may be transferred
from the general revenue fund to the available school fund. Any
remaining amount that would otherwise be available for transfer for
the months of January and February shall be transferred from the
general revenue fund to the available school fund in equal amounts
in June and in August of the same fiscal year.
SECTION 4.18. The heading to Section 44.004, Education
Code, is amended to read as follows:
Sec. 44.004. NOTICE OF BUDGET [AND TAX RATE] MEETING;
BUDGET ADOPTION.
SECTION 4.19. Sections 44.004(b), (c), and (f), Education
Code, are amended to read as follows:
(b) The president shall provide for the publication of
notice of the budget [and proposed tax rate] meeting in a daily,
weekly, or biweekly newspaper published in the district. If no
daily, weekly, or biweekly newspaper is published in the district,
the president shall provide for the publication of notice in at
least one newspaper of general circulation in the county in which
the district's central administrative office is located. Notice
under this subsection shall be published not earlier than the 30th
day or later than the 10th day before the date of the meeting
[hearing].
(c) The notice of public meeting to discuss and adopt the
budget [and the proposed tax rate] may not be smaller than
one-quarter page of a standard-size or a tabloid-size newspaper,
and the headline on the notice must be in 18-point or larger type.
The [Subject to Subsection (d), the] notice must:
(1) contain a statement in the following form:
"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET [AND PROPOSED TAX RATE]
"The (name of school district) will hold a public meeting at
(time, date, year) in (name of room, building, physical location,
city, state). The purpose of this meeting is to discuss the school
district's budget [that will determine the tax rate that will be
adopted]. Public participation in the discussion is invited." The
statement of the purpose of the meeting must be in bold type. [In
reduced type, the notice must state: "The tax rate that is
ultimately adopted at this meeting or at a separate meeting at a
later date may not exceed the proposed rate shown below unless the
district publishes a revised notice containing the same information
and comparisons set out below and holds another public meeting to
discuss the revised notice."]; and
(2) contain a section entitled "Comparison of Proposed
Budget with Last Year's Budget," which must show the difference,
expressed as a percent increase or decrease, as applicable, in the
amount [amounts] budgeted for the preceding fiscal year and the
amount budgeted for the subsequent fiscal year [that begins in the
current tax year for each of the following:
[(A) maintenance and operations;
[(B) debt service; and
[(C) total expenditures;
[(3) contain a section entitled "Total Appraised Value
and Total Taxable Value," which must show the total appraised value
and the total taxable value of all property and the total appraised
value and the total taxable value of new property taxable by the
district in the preceding tax year and the current tax year as
calculated under Section 26.04, Tax Code;
[(4) contain a statement of the total amount of the
outstanding and unpaid bonded indebtedness of the school district;
[(5) contain a section entitled "Comparison of
Proposed Rates with Last Year's Rates," which must:
[(A) show in rows the tax rates described by
Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
property, for columns entitled "Maintenance & Operations,"
"Interest & Sinking Fund," and "Total," which is the sum of
"Maintenance & Operations" and "Interest & Sinking Fund":
[(i) the school district's "Last Year's
Rate";
[(ii) the "Rate to Maintain Same Level of
Maintenance & Operations Revenue & Pay Debt Service," which:
[(a) in the case of "Maintenance &
Operations," is the tax rate that, when applied to the current
taxable value for the district, as certified by the chief appraiser
under Section 26.01, Tax Code, and as adjusted to reflect changes
made by the chief appraiser as of the time the notice is prepared,
would impose taxes in an amount that, when added to state funds to
be distributed to the district under Chapter 42, would provide the
same amount of maintenance and operations taxes and state funds
distributed under Chapter 42 per student in average daily
attendance for the applicable school year that was available to the
district in the preceding school year; and
[(b) in the case of "Interest &
Sinking Fund," is the tax rate that, when applied to the current
taxable value for the district, as certified by the chief appraiser
under Section 26.01, Tax Code, and as adjusted to reflect changes
made by the chief appraiser as of the time the notice is prepared,
and when multiplied by the district's anticipated collection rate,
would impose taxes in an amount that, when added to state funds to
be distributed to the district under Chapter 46 and any excess taxes
collected to service the district's debt during the preceding tax
year but not used for that purpose during that year, would provide
the amount required to service the district's debt; and
[(iii) the "Proposed Rate";
[(B) contain fourth and fifth columns aligned
with the columns required by Paragraph (A) that show, for each row
required by Paragraph (A):
[(i) the "Local Revenue per Student," which
is computed by multiplying the district's total taxable value of
property, as certified by the chief appraiser for the applicable
school year under Section 26.01, Tax Code, and as adjusted to
reflect changes made by the chief appraiser as of the time the
notice is prepared, by the total tax rate, and dividing the product
by the number of students in average daily attendance in the
district for the applicable school year; and
[(ii) the "State Revenue per Student,"
which is computed by determining the amount of state aid received or
to be received by the district under Chapters 42, 43, and 46 and
dividing that amount by the number of students in average daily
attendance in the district for the applicable school year; and
[(C) contain an asterisk after each calculation
for "Interest & Sinking Fund" and a footnote to the section that, in
reduced type, states "The Interest & Sinking Fund tax revenue is
used to pay for bonded indebtedness on construction, equipment, or
both. The bonds, and the tax rate necessary to pay those bonds,
were approved by the voters of this district.";
[(6) contain a section entitled "Comparison of
Proposed Levy with Last Year's Levy on Average Residence," which
must:
[(A) show in rows the information described by
Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
entitled "Last Year" and "This Year":
[(i) "Average Market Value of Residences,"
determined using the same group of residences for each year;
[(ii) "Average Taxable Value of
Residences," determined after taking into account the limitation on
the appraised value of residences under Section 23.23, Tax Code,
and after subtracting all homestead exemptions applicable in each
year, other than exemptions available only to disabled persons or
persons 65 years of age or older or their surviving spouses, and
using the same group of residences for each year;
[(iii) "Last Year's Rate Versus Proposed
Rate per $100 Value"; and
[(iv) "Taxes Due on Average Residence,"
determined using the same group of residences for each year; and
[(B) contain the following information:
"Increase (Decrease) in Taxes" expressed in dollars and cents,
which is computed by subtracting the "Taxes Due on Average
Residence" for the preceding tax year from the "Taxes Due on Average
Residence" for the current tax year;
[(7) contain the following statement in bold print:
"Under state law, the dollar amount of school taxes imposed on the
residence of a person 65 years of age or older or of the surviving
spouse of such a person, if the surviving spouse was 55 years of age
or older when the person died, may not be increased above the amount
paid in the first year after the person turned 65, regardless of
changes in tax rate or property value.";
[(8) contain the following statement in bold print:
"Notice of Rollback Rate: The highest tax rate the district can
adopt before requiring voter approval at an election is (the school
district rollback rate determined under Section 26.08, Tax Code).
This election will be automatically held if the district adopts a
rate in excess of the rollback rate of (the school district rollback
rate)."; and
[(9) contain a section entitled "Fund Balances," which
must include the estimated amount of interest and sinking fund
balances and the estimated amount of maintenance and operation or
general fund balances remaining at the end of the current fiscal
year that are not encumbered with or by corresponding debt
obligation, less estimated funds necessary for the operation of the
district before the receipt of the first payment under Chapter 42 in
the succeeding school year].
(f) The board of trustees, at the meeting called for that
purpose, shall adopt a budget to cover all expenditures for the
school district for the next succeeding fiscal year. Any resident
[taxpayer] of the district may be present and participate in the
meeting.
SECTION 4.20. The heading to Section 45.001, Education
Code, is amended to read as follows:
Sec. 45.001. BONDS; [AND BOND] TAXES.
SECTION 4.21. Section 45.001, Education Code, is amended by
amending Subsection (a) and adding Subsection (d) to read as
follows:
(a) The governing board of an independent school district,
including the city council or commission that has jurisdiction over
a municipally controlled independent school district, the
governing board of a rural high school district, and the
commissioners court of a county, on behalf of each common school
district under its jurisdiction, may:
(1) issue bonds for:
(A) the construction, acquisition, and equipment
of school buildings in the district;
(B) the acquisition of property or the
refinancing of property financed under a contract entered under
Subchapter A, Chapter 271, Local Government Code, regardless of
whether payment obligations under the contract are due in the
current year or a future year;
(C) the purchase of the necessary sites for
school buildings; and
(D) the purchase of new school buses; and
(2) may [levy,] pledge state funds to be received
under Chapters 42 and 43[, assess, and collect annual ad valorem
taxes] sufficient to pay the principal of and interest on the bonds
as or before the principal and interest become due[, subject to
Section 45.003].
(d) Notwithstanding any other provision of this code, the
governing body of a school district may not impose an ad valorem
tax.
SECTION 4.22. Sections 45.004(b), (c), and (i), Education
Code, are amended to read as follows:
(b) Each governing board or commissioners court described
by Section 45.001 may refund or refinance all or any part of any of
the district's outstanding bonds and matured or unmatured but
unpaid interest on those bonds payable from state funds to be
received under Chapters 42 and 43 [ad valorem taxes] by issuing
refunding bonds payable from the same funds [ad valorem taxes].
(c) A series or issue of refunding bonds may not be issued
unless:
(1) the total debt service on the refunding bonds will
amount to less than the total debt service on the bonds being
refunded;
(2) if a maximum interest rate was voted for the bonds
being refunded, the refunding bonds do not bear interest at a rate
higher than that maximum rate; and
(3) the refunding bonds are payable from the same
funds [taxes of the same nature] as those pledged to the payment of
the obligations being refunded.
(i) If the governing body or commissioners court has entered
into an escrow or a similar agreement under Subsection (h), the
refunded bonds are considered to be defeased and may not be included
in or considered to be an indebtedness of the district for the
purpose of a limitation on outstanding indebtedness [or taxation]
or for any other purpose.
SECTION 4.23. Section 45.103(a), Education Code, is amended
to read as follows:
(a) Any school district in need of funds to construct,
repair, or renovate school buildings, purchase school buildings and
school equipment, or equip school properties with necessary
heating, water, sanitation, lunchroom, or electric facilities [or
in need of funds with which to employ a person who has special skill
and experience to compile taxation data and] that is financially
unable out of available funds to construct, repair, renovate, or
purchase school buildings, purchase school equipment, or equip
school properties with necessary heating, water, sanitation,
lunchroom, or electric facilities [or is unable to pay the person
for compiling taxation data,] may, subject to this section, issue
interest-bearing time warrants, in amounts sufficient to
construct, purchase, equip, or improve school buildings and
facilities [or to pay all or part of the compensation of the person
to compile taxation data], any law to the contrary notwithstanding.
The warrants shall mature in serial installments of not more than
five years from their date of issue. The warrants on maturity may
be payable out of any available funds of the school district in the
order of their maturity dates. Any interest-bearing time warrants
may be issued and sold by the district for not less than their face
value, and the proceeds used to provide funds required for the
purpose for which they are issued. The warrants shall be entitled
to first payment out of any available funds of the district as they
become due. Included in the purposes for which interest-bearing
time warrants may be issued is the payment of any amounts owed by
the school district that was incurred in carrying out any of those
purposes.
SECTION 4.24. Section 45.105(c), Education Code, is amended
to read as follows:
(c) Local school funds from [district taxes,] tuition fees
of students not entitled to a free education and[,] other local
sources[,] and state funds not designated for a specific purpose
may be used for the purposes listed for state and county available
funds and for purchasing appliances and supplies, paying insurance
premiums, paying janitors and other employees, buying school sites,
buying, building, repairing, and renting school buildings,
including acquiring school buildings and sites by leasing through
annual payments with an ultimate option to purchase, and for other
purposes necessary in the conduct of the public schools determined
by the board of trustees. The accounts and vouchers for county
districts must be approved by the county superintendent. If the
state available school fund in any municipality or district is
sufficient to maintain the schools in any year for at least eight
months and leave a surplus, the surplus may be spent for the
purposes listed in this subsection.
SECTION 4.25. Section 45.108(a), Education Code, is amended
to read as follows:
(a) Independent or consolidated school districts may borrow
money for the purpose of paying maintenance expenses and may
evidence those loans with negotiable notes, except that the loans
may not at any time exceed 75 percent of the previous year's income.
The notes may be payable from and secured by a lien on and pledge of
any available funds of the district[, including proceeds of a
maintenance tax]. The term "maintenance expenses" or "maintenance
expenditures" as used in this section [means any lawful expenditure
of the school district other than payment of principal of and
interest on bonds. The term] includes all costs incurred in
connection with environmental cleanup and asbestos cleanup and
removal programs implemented by school districts or in connection
with the maintenance, repair, rehabilitation, or replacement of
heating, air conditioning, water, sanitation, roofing, flooring,
electric, or other building systems of existing school properties.
Notes issued pursuant to this section may be issued to mature in not
more than 20 years from their date. [Notes issued for a term longer
than one year must be treated as "debt" as defined in Section
26.012(7), Tax Code.]
SECTION 4.26. Section 45.109(c), Education Code, is amended
to read as follows:
(c) The consideration for a contract under this section may
be paid from any source available to the independent school
district. [If voted as provided by this section, the district may
pledge to the payment of the contract an annual maintenance tax in
an amount sufficient, without limitation, to provide all of the
consideration. If voted and pledged, the maintenance tax shall be
assessed, levied, and collected annually in the same manner as
provided by general law applicable to independent school districts
for other maintenance taxes.]
SECTION 4.27. Section 45.156(c), Education Code, is amended
to read as follows:
(c) The consideration payable by the district under a
contract may be paid from any source available to the district. [If
voted, the district may pledge to the payment of the contract an
annual maintenance tax in an amount sufficient, without limitation,
to provide all or part of the consideration. If voted and pledged,
the maintenance tax shall be assessed, levied, and collected
annually in the same manner as provided by general law applicable to
independent school districts for other maintenance taxes. A
maintenance tax may not be pledged to the payment of any contract or
assessed, levied, or collected unless an election is held in the
district, and the maintenance tax for that purpose is favorably
voted by a majority of the qualified voters of the district. The
election order for an election under this subsection must include
the polling place or places and any other matters considered
advisable by the board of trustees.]
SECTION 4.28. Section 45.251(2), Education Code, is amended
to read as follows:
(2) "Foundation School Program" means the program
established under Chapter [Chapters 41,] 42[, and 46,] or any
successor program of state appropriated funding for school
districts in this state.
SECTION 4.29. Section 45.261(a), Education Code, is amended
to read as follows:
(a) If the commissioner orders payment from the money
appropriated to the Foundation School Program on behalf of a school
district [that is not required to reduce its wealth per student
under Chapter 41], the commissioner shall direct the comptroller to
withhold the amount paid from the first state money payable to the
district. [If the commissioner orders payment from the money
appropriated to the Foundation School Program on behalf of a school
district that is required to reduce its wealth per student under
Chapter 41, the commissioner shall increase amounts due from the
district under that chapter in a total amount equal to the amount of
payments made on behalf of the district under this subchapter.]
Amounts withheld [or received] under this subsection shall be used
for the Foundation School Program.
SECTION 4.30. Sections 7.062(b) and (e), Education Code,
are amended to read as follows:
(b) Using amounts appropriated for that purpose, the [The]
commissioner shall establish a program to provide competitive
grants to school districts for the purpose of constructing or
renovating high school science laboratories.
(e) The rules must:
(1) limit the amount of assistance provided through a
grant to not more than:
(A) for a construction project, $200 per square
foot of the science laboratory to be constructed; or
(B) for a renovation project, $100 per square
foot of the science laboratory to be renovated; and
(2) require a school district to demonstrate, as a
condition of eligibility for a grant, that the existing district
science laboratories are insufficient in number to comply with the
curriculum requirements imposed for the recommended and advanced
high school programs under Section 28.025(b-1)(1)[; and
[(3) provide for ranking school districts that apply
for grants on the basis of wealth per student and giving priority in
the award of grants to districts with low wealth per student].
SECTION 4.31. Sections 11.1511(b) and (c), Education Code,
are amended to read as follows:
(b) The board shall:
(1) seek to establish working relationships with other
public entities to make effective use of community resources and to
serve the needs of public school students in the community;
(2) adopt a vision statement and comprehensive goals
for the district and the superintendent and monitor progress toward
those goals;
(3) establish performance goals for the district
concerning:
(A) the academic and fiscal performance
indicators under Subchapters C, D, and J, Chapter 39; and
(B) any performance indicators adopted by the
district;
(4) ensure that the superintendent:
(A) is accountable for achieving performance
results;
(B) recognizes performance accomplishments; and
(C) takes action as necessary to meet performance
goals;
(5) adopt a policy to establish a district- and
campus-level planning and decision-making process as required
under Section 11.251;
(6) publish an annual educational performance report
as required under Section 39.306;
(7) adopt an annual budget for the district as
required under Section 44.004;
(8) [adopt a tax rate each fiscal year as required
under Section 26.05, Tax Code;
[(9)] monitor district finances to ensure that the
superintendent is properly maintaining the district's financial
procedures and records;
(9) [(10)] ensure that district fiscal accounts are
audited annually as required under Section 44.008;
(10) [(11)] publish an end-of-year financial report
for distribution to the community;
(11) [(12)] conduct elections as required by law;
(12) [(13)] by rule, adopt a process through which
district personnel, students or the parents or guardians of
students, and members of the public may obtain a hearing from the
district administrators and the board regarding a complaint;
(13) [(14)] make decisions relating to terminating
the employment of district employees employed under a contract to
which Chapter 21 applies, including terminating or not renewing an
employment contract to which that chapter applies; and
(14) [(15)] carry out other powers and duties as
provided by this code or other law.
(c) The board may:
(1) issue bonds and pledge state funds [levy, pledge,
assess, and collect an annual ad valorem tax] to pay the principal
and interest on the bonds as authorized under Section [Sections]
45.001 [and 45.003];
[(2) levy, assess, and collect an annual ad valorem
tax for maintenance and operation of the district as authorized
under Sections 45.002 and 45.003;
[(3) employ a person to assess or collect the
district's taxes as authorized under Section 45.231;] and
(2) [(4)] enter into contracts as authorized under
this code or other law and delegate contractual authority to the
superintendent as appropriate.
SECTION 4.32. Section 12.013(b), Education Code, is amended
to read as follows:
(b) A home-rule school district is subject to:
(1) a provision of this title establishing a criminal
offense;
(2) a provision of this title relating to limitations
on liability; and
(3) a prohibition, restriction, or requirement, as
applicable, imposed by this title or a rule adopted under this
title, relating to:
(A) the Public Education Information Management
System (PEIMS) to the extent necessary to monitor compliance with
this subchapter as determined by the commissioner;
(B) educator certification under Chapter 21 and
educator rights under Sections 21.407, 21.408, and 22.001;
(C) criminal history records under Subchapter C,
Chapter 22;
(D) student admissions under Section 25.001;
(E) school attendance under Sections 25.085,
25.086, and 25.087;
(F) inter-district or inter-county transfers of
students under Subchapter B, Chapter 25;
(G) elementary class size limits under Section
25.112, in the case of any campus in the district that fails to
satisfy any standard under Section 39.054(d);
(H) high school graduation under Section 28.025;
(I) special education programs under Subchapter
A, Chapter 29;
(J) bilingual education under Subchapter B,
Chapter 29;
(K) prekindergarten programs under Subchapter E,
Chapter 29;
(L) safety provisions relating to the
transportation of students under Sections 34.002, 34.003, 34.004,
and 34.008;
(M) computation and distribution of state aid
under Chapters 31, 42, and 43;
(N) extracurricular activities under Section
33.081;
(O) health and safety under Chapter 38;
(P) public school accountability under
Subchapters B, C, D, E, and J, Chapter 39;
(Q) [equalized wealth under Chapter 41;
[(R)] a bond or other obligation [or tax rate]
under Chapters 42, 43, and 45; and
(R) [(S)] purchasing under Chapter 44.
SECTION 4.33. Section 12.029(b), Education Code, is amended
to read as follows:
(b) If [Except as provided by Subchapter H, Chapter 41, if]
two or more school districts having different status, one of which
is home-rule school district status, consolidate into a single
district, the petition under Section 13.003 initiating the
consolidation must state the status for the consolidated district.
The ballot shall be printed to permit voting for or against the
proposition: "Consolidation of (names of school districts) into a
single school district governed as (status of school district
specified in the petition)."
SECTION 4.34. 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 4.35. Sections 21.402(a) and (c), Education Code,
are amended 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 BA [FS]
where:
"MS" is the minimum monthly salary;
"SF" is the applicable salary factor specified by Subsection
(c); and
"BA" ["FS"] is the amount of the basic allotment under
Section 42.101[, 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 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) The salary factors per step are as follows:
0 1 2 3 4 0 1 2 3 4
0 1 2 3 4
_____ [.6226] _____ [.6360] _____ [.6492] _____ [.6627] _____ [.6909] _____ [.6226] _____ [.6360] _____ [.6492] _____ [.6627] _____ [.6909]
_____ [.6226] _____ [.6360] _____ [.6492] _____ [.6627] _____ [.6909]
5 6 7 8 9 5 6 7 8 9
5 6 7 8 9
_____ [.7192] _____ [.7474] _____ [.7737] _____ [.7985] _____ [.8220] _____ [.7192] _____ [.7474] _____ [.7737] _____ [.7985] _____ [.8220]
_____ [.7192] _____ [.7474] _____ [.7737] _____ [.7985] _____ [.8220]
10 11 12 13 14 10 11 12 13 14
10 11 12 13 14
_____ [.8441] _____ [.8650] _____ [.8851] _____ [.9035] _____ [.9213] _____ [.8441] _____ [.8650] _____ [.8851] _____ [.9035] _____ [.9213]
_____ [.8441] _____ [.8650] _____ [.8851] _____ [.9035] _____ [.9213]
15 16 17 18 19 15 16 17 18 19
15 16 17 18 19
_____ [.9380] _____ [.9539] _____ [.9687] _____ [.9828] _____ [.9963] _____ [.9380] _____ [.9539] _____ [.9687] _____ [.9828] _____ [.9963]
_____ [.9380] _____ [.9539] _____ [.9687] _____ [.9828] _____ [.9963]
_____ [1.009] _____ [1.009]
_____ [1.009]
SECTION 4.36. Section 21.410(h), Education Code, is amended
to read as follows:
(h) A grant a school district receives under this section is
in addition to any funding the district receives under Chapter 42.
The commissioner shall distribute funds under this section with the
Foundation School Program payment to which the district is entitled
as soon as practicable after the end of the school year as
determined by the commissioner. [A district to which Chapter 41
applies is entitled to the grants paid under this section. The
commissioner shall determine the timing of the distribution of
grants to a district that does not receive Foundation School
Program payments.]
SECTION 4.37. Section 21.411(h), Education Code, is amended
to read as follows:
(h) A grant a school district receives under this section is
in addition to any funding the district receives under Chapter 42.
The commissioner shall distribute funds under this section with the
Foundation School Program payment to which the district is entitled
as soon as practicable after the end of the school year as
determined by the commissioner. [A district to which Chapter 41
applies is entitled to the grants paid under this section. The
commissioner shall determine the timing of the distribution of
grants to a district that does not receive Foundation School
Program payments.]
SECTION 4.38. Section 21.412(h), Education Code, is amended
to read as follows:
(h) A grant a school district receives under this section is
in addition to any funding the district receives under Chapter 42.
The commissioner shall distribute funds under this section with the
Foundation School Program payment to which the district is entitled
as soon as practicable after the end of the school year as
determined by the commissioner. [A district to which Chapter 41
applies is entitled to the grants paid under this section. The
commissioner shall determine the timing of the distribution of
grants to a district that does not receive Foundation School
Program payments.]
SECTION 4.39. Section 21.413(h), Education Code, is amended
to read as follows:
(h) A grant a school district receives under this section is
in addition to any funding the district receives under Chapter 42.
The commissioner shall distribute funds under this section with the
Foundation School Program payment to which the district is entitled
as soon as practicable after the end of the school year as
determined by the commissioner. [A district to which Chapter 41
applies is entitled to the grants paid under this section. The
commissioner shall determine the timing of the distribution of
grants to a district that does not receive Foundation School
Program payments.]
SECTION 4.40. Section 29.008(b), Education Code, is amended
to read as follows:
(b) Except as provided by Subsection (c), costs of an
approved contract for residential placement may be paid from a
combination of federal and[,] state[, and local] funds. [The local
share of the total contract cost for each student is that portion of
the local tax effort that exceeds the district's local fund
assignment under Section 42.252, divided by the average daily
attendance in the district. If the contract involves a private
facility, the state share of the total contract cost is that amount
remaining after subtracting the local share. If the contract
involves a public facility, the state share is that amount
remaining after subtracting the local share from the portion of the
contract that involves the costs of instructional and related
services. For purposes of this subsection, "local tax effort"
means the total amount of money generated by taxes imposed for debt
service and maintenance and operation less any amounts paid into a
tax increment fund under Chapter 311, Tax Code.]
SECTION 4.41. Section 29.203(b), Education Code, is amended
to read as follows:
(b) A school district is entitled to the allotment provided
by Section 42.157 for each eligible student using a public
education grant. [If the district has a wealth per student greater
than the guaranteed wealth level but less than the equalized wealth
level, a school district is entitled under rules adopted by the
commissioner to additional state aid in an amount equal to the
difference between the cost to the district of providing services
to a student using a public education grant and the sum of the state
aid received because of the allotment under Section 42.157 and
money from the available school fund attributable to the student.]
SECTION 4.42. Section 30.003(b), Education Code, is amended
to read as follows:
(b) If the student is admitted to the school for a full-time
program for the equivalent of two long semesters, the district's
share of the cost is an amount equal to the dollar amount of state
funds provided to the district under Chapters 42 and 43
[maintenance and debt service taxes imposed by the district] for
that year divided by the district's average daily attendance for
the preceding year.
SECTION 4.43. Section 30.087(b), Education Code, is amended
to read as follows:
(b) From the amount appropriated for regional day school
programs, the commissioner shall allocate funds to each program
based on the number of [weighted] full-time equivalent students
served. The commissioner may consider local resources available in
allocating funds under this subsection.
SECTION 4.44. Section 37.0061, Education Code, is amended
to read as follows:
Sec. 37.0061. FUNDING FOR ALTERNATIVE EDUCATION SERVICES IN
JUVENILE RESIDENTIAL FACILITIES. A school district that provides
education services to pre-adjudicated and post-adjudicated
students who are confined by court order in a juvenile residential
facility operated by a juvenile board is entitled to count such
students in the district's average daily attendance for purposes of
receipt of state funds under the Foundation School Program. [If the
district has a wealth per student greater than the guaranteed
wealth level but less than the equalized wealth level, the district
in which the student is enrolled on the date a court orders the
student to be confined to a juvenile residential facility shall
transfer to the district providing education services an amount
equal to the difference between the average Foundation School
Program costs per student of the district providing education
services and the sum of the state aid and the money from the
available school fund received by the district that is attributable
to the student for the portion of the school year for which the
district provides education services to the student.]
SECTION 4.45. Section 56.208(b), Education Code, is amended
to read as follows:
(b) The commissioner of education shall reduce the total
annual amount of foundation school fund payments made to a school
district by an amount equal to [F x A, where:
[(1) "F" is the lesser of one or the quotient of the
district's local share for the preceding school year under Section
42.252 divided by the amount of money to which the district was
entitled under Subchapters B and C, Chapter 42, for the preceding
school year; and
[(2) "A" is] the amount of state tuition credits under
this subchapter applied by institutions of higher education on
behalf of eligible persons who graduated from the district that has
not been used to compute a previous reduction under this
subsection.
SECTION 4.46. Section 78.10(g), Education Code, is amended
to read as follows:
(g) For each student enrolled in the academy, the academy is
entitled to allotments from the foundation school fund under
Chapter 42 as if the academy were a school district [without a tier
one local share for purposes of Section 42.253]. If in any academic
year the amount of the allotments under this subsection exceeds the
amount of state funds paid to the academy in the first fiscal year
of the academy's operation, the commissioner of education shall set
aside from the total amount of funds to which school districts are
entitled under Section 42.253(c) an amount equal to the excess
amount and shall distribute that amount to the academy. After
deducting the amount set aside and paid to the academy by the
commissioner of education under this subsection, the commissioner
of education shall reduce the amount to which each district is
entitled under Section 42.253(c) in the manner described by Section
42.253(h). A determination of the commissioner of education under
this subsection is final and may not be appealed.
SECTION 4.47. Section 87.208, Education Code, is amended to
read as follows:
Sec. 87.208. SEABORNE CONSERVATION CORPS. If the board of
regents of The Texas A&M University System administers a program
that is substantially similar to the Seaborne Conservation Corps as
it was administered by the board during the 1998-1999 school year,
the program is entitled, for each student enrolled, to allotments
from the Foundation School Program under Chapter 42 as if the
program were a school district[, except that the program has a local
share applied that is equivalent to the local fund assignment of the
school district in which the principal facilities of the program
are located].
SECTION 4.48. Section 87.505(g), Education Code, is amended
to read as follows:
(g) For each student enrolled in the academy, the academy is
entitled to allotments from the foundation school fund under
Chapter 42 as if the academy were a school district [without a tier
one local share for purposes of Section 42.253]. If in any academic
year the amount of the allotments under this subsection exceeds the
amount of state funds paid to the academy in the first fiscal year
of the academy's operation, the commissioner of education shall set
aside from the total amount of funds to which school districts are
entitled under Section 42.253(c) an amount equal to the excess
amount and shall distribute that amount to the academy. After
deducting the amount set aside and paid to the academy by the
commissioner of education under this subsection, the commissioner
of education shall reduce the amount to which each district is
entitled under Section 42.253(c) in the manner described by Section
42.253(h). A determination of the commissioner of education under
this subsection is final and may not be appealed.
SECTION 4.49. Section 96.707(k), Education Code, is amended
to read as follows:
(k) For each student enrolled in the academy, the academy is
entitled to allotments from the Foundation School Program under
Chapter 42 as if the academy were a school district[, except that
the academy has a local share applied that is equivalent to the
local fund assignment of the Beaumont Independent School District].
SECTION 4.50. Section 105.301(e), Education Code, is
amended to read as follows:
(e) The academy is not subject to the provisions of this
code, or to the rules of the Texas Education Agency, regulating
public schools, except that:
(1) professional employees of the academy are entitled
to the limited liability of an employee under Section 22.0511,
22.0512, or 22.052;
(2) a student's attendance at the academy satisfies
compulsory school attendance requirements; and
(3) for each student enrolled, the academy is entitled
to allotments from the foundation school program under Chapter 42
as if the academy were a school district [without a tier one local
share for purposes of Section 42.253].
SECTION 4.51. Section 3.005(a), Election Code, is amended
to read as follows:
(a) Except as provided by Subsection [Subsections] (c) [and
(d)], an election ordered by an authority of a political
subdivision shall be ordered not later than the 62nd day before
election day.
SECTION 4.52. Section 4.008(a), Election Code, is amended
to read as follows:
(a) The [Except as provided by Subsection (b), the]
governing body of a political subdivision, other than a county,
that orders an election shall deliver notice of the election to the
county clerk and voter registrar of each county in which the
political subdivision is located not later than the 60th day before
election day.
SECTION 4.53. Section 1579.251(a), Insurance Code, is
amended to read as follows:
(a) The state shall assist employees of participating
school districts and charter schools in the purchase of group
health coverage under this chapter by providing for each covered
employee the amount of $900 each state fiscal year or a greater
amount as provided by the General Appropriations Act. The state
contribution shall be distributed through the school finance
formulas under Chapter [Chapters 41 and] 42, Education Code[, and
used by school districts and charter schools as provided by
Section 42.260, Education Code].
SECTION 4.54. (a) The following provisions of the
Education Code are repealed:
(1) Chapter 41;
(2) Subchapter F, Chapter 42;
(3) Subchapter H, Chapter 45;
(4) Chapter 46; and
(5) Sections 7.055(b)(34), 7.062(a) and (c), 11.152,
12.106(a-2), 13.054(f) and (g), 21.402(b), 29.203(c) and (g),
42.001(b), 42.002(b), 42.008(b) and (c), 42.158(e), 42.160(b),
42.2515, 42.2516, 42.25161, 42.252, 42.2521, 42.2522, 42.2523,
42.2524(f) and (g), 42.253(c-1), 42.2531, 42.257, 42.259(a), (c),
and (d), 42.260, 42.261, 44.004(c-1), (d), (e), (g), (h), (i), and
(j), 45.0011, 45.002, 45.003, 45.0031, 45.006, 45.061(c) and (d),
45.103(d), (e), and (h), 45.104, 45.105(d), (e), and (f),
45.109(d), 45.111, 45.112, and 45.261(c), (d), and (e).
(b) Sections 3.005(d) and 4.008(b), Election Code, are
repealed.
(c) The following provisions of the Government Code are
repealed:
(1) Subchapter M, Chapter 403;
(2) Section 466.355(c); and
(3) Sections 825.405(h) and (i).
(d) Section 1581.053(b), Insurance Code, is repealed.
SECTION 4.55. This article applies beginning with the
2012-2013 school year.
ARTICLE 5. EFFECTIVE DATE; CONTINGENCY
SECTION 5.01. This Act takes effect January 1, 2012, but
only if the constitutional amendment proposed by the 82nd
Legislature, Regular Session, 2011, abolishing property taxes and
limiting the rates of state and local sales and use taxes, is
approved by the voters. If that amendment is not approved by the
voters, this Act has no effect.
0 1 2 3 4
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