By: Pitts H.R. No. 2723
R E S O L U T I O N
BE IT RESOLVED by the House of Representatives of the State of
Texas, 82nd Legislature, Regular Session, 2011, That House Rule 13,
Section 9(a), be suspended in part as provided by House Rule 13,
Section 9(f), to enable the conference committee appointed to
resolve the differences on Senate Bill 1811, relating to certain
state fiscal matters; providing penalties, to consider and take
action on the following matters:
(1) House Rule 13, Section 9(a)(4), is suspended to permit
the committee to add text not included in either the house or senate
version of the bill, in SECTION 43.01 of the bill, in amended
Section 2155.082, Government Code, to read as follows:
SECTION 43.01. Section 2155.082, Government Code, is
amended to read as follows:
Sec. 2155.082. PROVIDING CERTAIN PURCHASING SERVICES ON
FEE-FOR-SERVICE BASIS OR THROUGH BENEFIT FUNDING. (a) The
comptroller [commission] may provide open market purchasing
services on a fee-for-service basis for state agency purchases that
are delegated to an agency under Section 2155.131, 2155.132,
[2155.133,] or 2157.121 or that are exempted from the purchasing
authority of the comptroller [commission]. The comptroller
[commission] shall set the fees in an amount that recovers the
comptroller's [commission's] costs in providing the services.
(b) The comptroller [commission] shall publish a schedule
of [its] fees for services that are subject to this section. The
schedule must include the comptroller's [commission's] fees for:
(1) reviewing bid and contract documents for clarity,
completeness, and compliance with laws and rules;
(2) developing and transmitting invitations to bid;
(3) receiving and tabulating bids;
(4) evaluating and determining which bidder offers the
best value to the state;
(5) creating and transmitting purchase orders; and
(6) participating in agencies' request for proposal
processes.
(c) If the state agency on behalf of which the procurement
is to be made agrees, the comptroller may engage a consultant to
assist with a particular procurement on behalf of a state agency and
pay the consultant from the cost savings realized by the state
agency.
EXPLANATION: This change is necessary to allow a state
agency to have the authority to agree to the comptroller engaging a
consultant.
(2) House Rule 13, Sections 9(3) and 9(4) are suspended to
permit the committee to add text on a matter not in disagreement and
text on a matter not included in either version of the bill by
adding provisions amending Chapter 490, Government Code, and
Chapters 203, 204, and 302, Labor Code so that Article 57 reads as
follows:
ARTICLE 57. ENTERPRISE AND EMERGING TECHNOLOGY FUNDS
SECTION 57.01. Section 481.078, Government Code, is amended
by amending Subsections (e) and (j) and adding Subsections (f-1),
(f-2), and (h-1) to read as follows:
(e) The administration of the fund is considered to be a
trusteed program within the office of the governor. The governor
may negotiate on behalf of the state regarding awarding, by grant,
money appropriated from the fund. The governor may award money
appropriated from the fund only with the [express written] prior
approval of the lieutenant governor and speaker of the house of
representatives. For purposes of this subsection, an award of
money appropriated from the fund is considered disapproved by the
lieutenant governor or speaker of the house of representatives if
that officer does not approve the proposal to award the grant before
the 91st day after the date of receipt of the proposal from the
governor. The lieutenant governor or the speaker of the house of
representatives may extend the review deadline applicable to that
officer for an additional 14 days by submitting a written notice to
that effect to the governor before the expiration of the initial
review period.
(f-1) A grant agreement must contain a provision:
(1) requiring the creation of a minimum number of jobs
in this state; and
(2) specifying the date by which the recipient intends
to create those jobs.
(f-2) A grant agreement must contain a provision providing
that if the recipient does not meet job creation performance
targets as of the dates specified in the agreement, the recipient
shall repay the grant in accordance with Subsection (j).
(h-1) At least 14 days before the date the governor intends
to amend a grant agreement, the governor shall notify and provide a
copy of the proposed amendment to the speaker of the house of
representatives, the lieutenant governor, and the presiding
officers of the standing committees of both houses of the
legislature with primary jurisdiction over economic development.
(j) Repayment of a grant under Subsection (f)(1)(A) shall
[may] be prorated to reflect a partial attainment of job creation
performance targets, and may be prorated for a partial attainment
of other performance targets.
SECTION 57.02. Subsections (a) and (b), Section 490.005,
Government Code, are amended to read as follows:
(a) Not later than January 31 [1] of each year, the governor
shall submit to the lieutenant governor, the speaker of the house of
representatives, and the standing committee of each house of the
legislature with primary jurisdiction over economic development
matters and post on the office of the governor's Internet website a
report that includes the following information regarding awards
made under the fund during each [for the] preceding [three] state
fiscal year [years]:
(1) the total number and amount of awards made;
(2) the number and amount of awards made under
Subchapters D, E, and F;
(3) the aggregate total of private sector investment,
federal government funding, and contributions from other sources
obtained in connection with awards made under each of the
subchapters listed in Subdivision (2);
(4) the name of each award recipient and the amount of
the award made to the recipient; and
(5) a brief description of the equity position that
the governor, on behalf of the state, may take in companies
receiving awards and the names of the companies in which the state
has taken an equity position.
(b) The annual report must also contain:
(1) the total number of jobs actually created by each
project receiving funding under this chapter;
(2) an analysis of the number of jobs actually created
by each project receiving funding under this chapter; and
(3) a brief description regarding:
(A) the methodology used to determine the
information provided under Subdivisions (1) and (2), which may be
developed in consultation with the comptroller's office;
(B) [(1)] the intended outcomes of projects
funded under Subchapter D during each [the] preceding [two] state
fiscal year [years]; and
(C) [(2)] the actual outcomes of all projects
funded under Subchapter D during each preceding state fiscal year
[the fund's existence], including any financial impact on the state
resulting from a liquidity event involving a company whose project
was funded under that subchapter.
SECTION 57.03. Subchapter A, Chapter 490, Government Code,
is amended by adding Section 490.006 to read as follows:
Sec. 490.006. VALUATION OF INVESTMENTS; INCLUSION IN ANNUAL
REPORT. To the maximum extent practicable, the office of the
governor shall annually perform a valuation of the equity positions
taken by the governor, on behalf of the state, in companies
receiving awards under the fund and of other investments made by the
governor, on behalf of the state, in connection with an award under
the fund. The valuation must:
(1) be based on a methodology that:
(A) may be developed in consultation with the
comptroller's office; and
(B) is consistent with generally accepted
accounting principles; and
(2) be included with the annual report required under
Section 490.005.
SECTION 57.04. The heading to Section 490.052, Government
Code, is amended to read as follows:
Sec. 490.052. APPOINTMENT TO COMMITTEE [BY GOVERNOR];
NOMINATIONS.
SECTION 57.05. Section 490.052, Government Code, is amended
by amending Subsection (a) and adding Subsections (a-1) and (a-2)
to read as follows:
(a) The governor shall appoint to the committee 13
individuals nominated as provided by Subsection (b).
(a-1) The lieutenant governor shall appoint two individuals
to the committee.
(a-2) The speaker of the house of representatives shall
appoint two individuals to the committee.
SECTION 57.06. Subchapter B, Chapter 490, Government Code,
is amended by adding Section 490.0521 to read as follows:
Sec. 490.0521. FINANCIAL STATEMENT REQUIRED. Each member
of the committee shall file with the office of the governor a
verified financial statement complying with Sections 572.022
through 572.0252 as is required of a state officer by Section
572.021.
SECTION 57.07. Section 490.054, Government Code, is amended
to read as follows:
Sec. 490.054. TERMS. (a) Members of the committee
appointed by the governor serve staggered two-year terms, subject
to the pleasure of the governor.
(b) Members of the committee appointed by the lieutenant
governor or the speaker of the house of representatives serve
two-year terms.
SECTION 57.08. Section 490.056, Government Code, is amended
by adding Subsections (c), (d), and (e) to read as follows:
(c) Each entity recommended by the committee for an award of
money from the fund as provided by this chapter shall obtain and
provide the following information to the office of the governor:
(1) a federal criminal history background check for
each principal of the entity;
(2) a state criminal history background check for each
principal of the entity;
(3) a credit check for each principal of the entity;
(4) a copy of a government-issued form of photo
identification for each principal of the entity; and
(5) information regarding whether the entity or a
principal of the entity has ever been subject to a sanction imposed
by the Securities and Exchange Commission for a violation of
applicable federal law.
(d) For purposes of Subsection (c), "principal" means:
(1) an officer of an entity; or
(2) a person who has at least a 10 percent ownership
interest in an entity.
(e) With each proposal to award funding submitted by the
governor to the lieutenant governor and speaker of the house of
representatives for purposes of obtaining prior approval, the
governor shall provide each officer with a copy of the information
provided by the appropriate entity under Subsection (c).
SECTION 57.09. Section 490.057, Government Code, is amended
to read as follows:
Sec. 490.057. CONFIDENTIALITY. (a) Except as provided by
Subsection (b), information [Information] collected by the
governor's office, the committee, or the committee's advisory
panels concerning the identity, background, finance, marketing
plans, trade secrets, or other commercially or academically
sensitive information of an individual or entity being considered
for, receiving, or having received an award from the fund is
confidential unless the individual or entity consents to disclosure
of the information.
(b) The following information collected by the governor's
office, the committee, or the committee's advisory panels under
this chapter is public information and may be disclosed under
Chapter 552:
(1) the name and address of an individual or entity
receiving or having received an award from the fund;
(2) the amount of funding received by an award
recipient;
(3) a brief description of the project that is funded
under this chapter;
(4) if applicable, a brief description of the equity
position that the governor, on behalf of the state, has taken in an
entity that has received an award from the fund; and
(5) any other information designated by the committee
with the consent of:
(A) the individual or entity receiving or having
received an award from the fund, as applicable;
(B) the governor;
(C) the lieutenant governor; and
(D) the speaker of the house of representatives.
SECTION 57.10. Section 490.101, Government Code, is amended
by amending Subsection (f) and adding Subsection (f-1) to read as
follows:
(f) The administration of the fund is considered to be a
trusteed program within the office of the governor. The governor
may negotiate on behalf of the state regarding awards from the
fund. The governor may award money appropriated from the fund only
with the [express written] prior approval of the lieutenant
governor and speaker of the house of representatives.
(f-1) For purposes of Subsection (f), an award of money
appropriated from the fund is considered disapproved by the
lieutenant governor or speaker of the house of representatives if
that officer does not approve the proposal to award funding before
the 91st day after the date of receipt of the proposal from the
governor. The lieutenant governor or the speaker of the house of
representatives may extend the review deadline applicable to that
officer for an additional 14 days by submitting a written notice to
that effect to the governor before the expiration of the initial
review period.
SECTION 57.11. Subsection (a), Section 490.151, Government
Code, is amended to read as follows:
(a) Amounts allocated from the fund for use as provided by
this subchapter shall be used only to provide direct funding to
[reserved for incentives for] private or nonprofit entities for
incentives to collaborate with public or private institutions of
higher education in this state on emerging technology projects
intended to accelerate the commercialization of intellectual
property derived from the institutions of higher education [with a
demonstrable economic benefit to this state].
SECTION 57.12. Subchapter D, Chapter 490, Government Code,
is amended by adding Section 490.1521 to read as follows:
Sec. 490.1521. MINUTES OF CERTAIN MEETINGS. (a) Each
regional center of innovation and commercialization established
under Section 490.152, including the Texas Life Science Center for
Innovation and Commercialization, shall keep minutes of each
meeting at which applications for funding under this subchapter are
evaluated. The minutes must:
(1) include the name of each applicant recommended by
the regional center of innovation and commercialization to the
committee for funding; and
(2) indicate the vote of each member of the governing
body of the regional center of innovation and commercialization,
including any recusal by a member and the member's reason for
recusal, with regard to each application reviewed.
(b) Each regional center of innovation and
commercialization shall retain a copy of the minutes of each
meeting to which this section applies for at least three years.
SECTION 57.13. Section 203.021, Labor Code, is amended by
adding Subsection (e) to read as follows:
(e) Money in the compensation fund may not be transferred to
the:
(1) Texas Enterprise Fund created under Section
481.078, Government Code; or
(2) Texas emerging technology fund established under
Section 490.101, Government Code.
SECTION 57.14. Section 204.123, Labor Code, is amended to
read as follows:
Sec. 204.123. TRANSFER TO [TEXAS ENTERPRISE FUND,] SKILLS
DEVELOPMENT FUND, TRAINING STABILIZATION FUND, AND COMPENSATION
FUND. (a) If, on September 1 of a year, the commission determines
that the amount in the compensation fund will exceed 100 percent of
its floor as computed under Section 204.061 on the next October 1
computation date, the commission shall transfer from the holding
fund created under Section 204.122:
(1) [from the first $160 million deposited in the
holding fund in any state fiscal biennium:
[(A) during the state fiscal biennium ending
August 31, 2007:
[(i) 67 percent to the Texas Enterprise
Fund created under Section 481.078, Government Code, except that
the amount transferred under this paragraph may not exceed the
amount appropriated by the legislature to the Texas Enterprise Fund
in that biennium; and
[(ii) 33 percent to the skills development
fund created under Section 303.003, except that the amount
transferred under this paragraph may not exceed the amount
appropriated by the legislature to the skills development program
strategies and activities in that biennium; and
[(B)] during any state fiscal biennium beginning
on or after September 1, 2007, 100 [:
[(i) 75 percent to the Texas Enterprise
Fund created under Section 481.078, Government Code, except that
the amount transferred under this paragraph may not exceed the
amount appropriated by the legislature to the Texas Enterprise Fund
in that biennium; and
[(ii) 25] percent to the skills development
fund created under Section 303.003, except that the amount
transferred under this subdivision [paragraph] may not exceed the
amount appropriated by the legislature to the skills development
program strategies and activities in that biennium; and
(2) any remaining amount in the holding fund after the
distribution under Subdivision (1) to the training stabilization
fund created under Section 302.101.
(b) If, on September 1 of a year, the commission determines
that the amount in the compensation fund will be at or below 100
percent of its floor as computed under Section 204.061 on the next
October 1 computation date, the commission shall transfer to the
compensation fund as much of the amount in the holding fund as is
necessary to raise the amount in the compensation fund to 100
percent of its floor, up to and including the entire amount in the
holding fund. The commission shall transfer any remaining balance
in the holding fund to the [Texas Enterprise Fund, the] skills
development fund[,] and the training stabilization fund in the
manner [in the percentages] prescribed by Subsection (a).
SECTION 57.15. Subsections (b) and (c), Section 302.101,
Labor Code, are amended to read as follows:
(b) Money in the training stabilization fund may be used in
a year in which the amounts in the employment and training
investment holding fund are insufficient to meet the legislative
appropriation for that fiscal year for [either the Texas Enterprise
Fund or] the skills development program strategies and activities.
(c) Money in the training stabilization fund shall be
transferred to the [Texas Enterprise Fund and the] skills
development fund under Subsection (b) not later than September
30. [The transfer under Subsection (b) shall consist of
transferring 67 percent of the money in the training stabilization
fund to the Texas Enterprise Fund and 33 percent of the money in the
training stabilization fund to the skills development fund.] The
amount transferred from the training stabilization fund may not
exceed the amounts appropriated to the [Texas Enterprise Fund and]
skills development program strategies and activities in the fiscal
year in which the transfer is made.
SECTION 57.16. Sections 481.078(e) and 490.101(f),
Government Code, as amended by this article, and Section
490.101(f-1), Government Code, as added by this article, apply only
to a proposal for an award from the Texas Enterprise Fund or Texas
emerging technology fund submitted by the governor to the
lieutenant governor or speaker of the house of representatives for
prior approval on or after the effective date of this article. A
proposal submitted by the governor for prior approval before the
effective date of this article is governed by the law in effect on
the date the proposal was submitted for that approval, and the
former law is continued in effect for that purpose.
SECTION 57.17. Section 481.078(j), Government Code, as
amended by this article, and Sections 481.078(f-1) and (f-2),
Government Code, as added by this article, apply only to a grant
agreement that is entered into on or after the effective date of
this article. A grant agreement that is entered into before the
effective date of this article is governed by the law in effect on
the date the agreement was entered into, and the former law is
continued in effect for that purpose.
SECTION 57.18. (a) The terms of the members of the Texas
Emerging Technology Advisory Committee serving immediately before
the effective date of this article expire September 1, 2011.
(b) As soon as practicable after this article takes effect,
the governor, lieutenant governor, and speaker of the house of
representatives shall appoint members to the Texas Emerging
Technology Advisory Committee established under Subchapter B,
Chapter 490, Government Code, in a manner that complies with that
subchapter, as amended by this article.
(c) At the first meeting of members of the Texas Emerging
Technology Advisory Committee established under Subchapter B,
Chapter 490, Government Code, as amended by this article, occurring
on or after September 1, 2011, the members appointed by the governor
shall draw lots to determine which six members will serve a term
expiring September 1, 2012, and which seven members will serve a
term expiring September 1, 2013.
Explanation: This change is necessary to reform the
functions and administration of the Texas Enterprise Fund and the
Texas Emerging Technology Fund.
(3) House Rule 13, Section 9(4) is suspended to permit the
committee to add text on a matter not included in either version of
the bill by adding Section 45.02 to Article 45 of the bill amending
Chapter 322, Government Code, to read as follows:
SECTION 45.02. Chapter 322, Government Code, is amended by
adding Section 322.0081 to read as follows:
Sec. 322.0081. BUDGET DOCUMENTS ONLINE. (a) The board
shall post on the board's Internet website documents prepared by
the board that are provided to a committee, subcommittee, or
conference committee of either house of the legislature in
connection with an appropriations bill.
(b) The board shall post a document to which this section
applies as soon as practicable after the document is provided to a
committee, subcommittee, or conference committee.
(c) The document must be downloadable and provide data in a
format that allows the public to search, extract, organize, and
analyze the information in the document.
(d) The requirement under Subsection (a) does not supersede
any exceptions provided under Chapter 552.
(e) The board shall promulgate rules to implement the
provisions of this section.
Explanation: This change is necessary to provide for certain
budget documents to be made available on the Internet website of the
Legislative Budget Board.
(4) House Rule 13, Section 9(4) is suspended to permit the
committee to add text on a matter not included in either version of
the bill by adding Section 56.02 to Article 56 of the bill to read as
follows:
SECTION 56.02. Subsection (c), Section 171.0002, Tax Code,
is amended to read as follows:
(c) "Taxable entity" does not include an entity that is:
(1) a grantor trust as defined by Sections 671 and
7701(a)(30)(E), Internal Revenue Code, all of the grantors and
beneficiaries of which are natural persons or charitable entities
as described in Section 501(c)(3), Internal Revenue Code, excluding
a trust taxable as a business entity pursuant to Treasury
Regulation Section 301.7701-4(b);
(2) an estate of a natural person as defined by Section
7701(a)(30)(D), Internal Revenue Code, excluding an estate taxable
as a business entity pursuant to Treasury Regulation Section
301.7701-4(b);
(3) an escrow;
(4) a real estate investment trust (REIT) as defined
by Section 856, Internal Revenue Code, and its "qualified REIT
subsidiary" entities as defined by Section 856(i)(2), Internal
Revenue Code, provided that:
(A) a REIT with any amount of its assets in direct
holdings of real estate, other than real estate it occupies for
business purposes, as opposed to holding interests in limited
partnerships or other entities that directly hold the real estate,
is a taxable entity; and
(B) a limited partnership or other entity that
directly holds the real estate as described in Paragraph (A) is not
exempt under this subdivision, without regard to whether a REIT
holds an interest in it;
(5) a real estate mortgage investment conduit (REMIC),
as defined by Section 860D, Internal Revenue Code;
(6) a nonprofit self-insurance trust created under
Chapter 2212, Insurance Code, or a predecessor statute;
(7) a trust qualified under Section 401(a), Internal
Revenue Code; [or]
(8) a trust or other entity that is exempt under
Section 501(c)(9), Internal Revenue Code; or
(9) an unincorporated entity organized as a political
committee under the Election Code or the provisions of the Federal
Election Campaign Act of 1971 (2 U.S.C. Section 431 et seq.).
Explanation: This change is necessary to ensure that certain
unincorporated political committees are not considered "taxable
entities" for purposes of the franchise tax.
(5) House Rule 13, Section 9(4) is suspended to permit the
committee to add text on a matter not included in either version of
the bill by adding proposed Article 61 to read as follows:
ARTICLE 61. CERTAIN CONTRIBUTION RATE COMPUTATIONS
SECTION 61.01. Section 815.402, Government Code, is amended
by adding Subsections (a-1) and (h-1) to read as follows:
(a-1) Notwithstanding Subsection (a)(1), if the state
contribution to the retirement system is computed using a
percentage less than 6.5 percent for the state fiscal year
beginning September 1, 2011, the member's contribution is not
required to be computed using a percentage equal to the percentage
used to compute the state contribution for that biennium. This
subsection expires September 1, 2012.
(h-1) Notwithstanding Subsection (h), if the state
contribution to the law enforcement and custodial officer
supplemental retirement fund is computed using a percentage less
than 0.5 percent for the state fiscal year beginning September 1,
2011, the member's contribution is not required to be computed
using a percentage equal to the percentage used to compute the state
contribution for that biennium. This subsection expires September
1, 2012.
Explanation: This change is necessary to allow, for one
year, for a difference between the percentage used for the
computations of the state retirement system contributions and that
used for members' retirement system contributions for certain
system members.
(6) House Rule 13, Section 9(4) is suspended to permit the
committee to add text on a matter not included in either version of
the bill by adding proposed Article 62 to read as follows:
ARTICLE 62. QUINQUENNIAL REPORTING OF CERTAIN INFORMATION FOR
UNCLAIMED PROPERTY
SECTION 62.01. Subsection (a), Section 411.0111,
Government Code, is amended to read as follows:
(a) Not later than June 1 of every fifth [each] year, the
department shall provide to the comptroller, for the purpose of
assisting the comptroller in the identification of persons entitled
to unclaimed property reported to the comptroller, the name,
address, social security number, date of birth, and driver's
license or state identification number of each person about whom
the department has such information in its records.
SECTION 62.02. Subsection (a), Section 811.010, Government
Code, as added by Chapter 232 (S.B. 1589), Acts of the 81st
Legislature, Regular Session, 2009, is amended to read as follows:
(a) Not later than June 1 of every fifth [each] year, the
retirement system shall provide to the comptroller, for the purpose
of assisting the comptroller in the identification of persons
entitled to unclaimed property reported to the comptroller, the
name, address, social security number, and date of birth of each
member, retiree, and beneficiary from the retirement system's
records.
SECTION 62.03. Subsection (a), Section 821.010, Government
Code, is amended to read as follows:
(a) Not later than June 1 of every fifth [each] year, the
retirement system shall provide to the comptroller, for the purpose
of assisting the comptroller in the identification of persons
entitled to unclaimed property reported to the comptroller, the
name, address, social security number, and date of birth of each
member, retiree, and beneficiary from the retirement system's
records.
SECTION 62.04. Subsection (a), Section 301.086, Labor Code,
is amended to read as follows:
(a) Not later than June 1 of every fifth [each] year, the
commission shall provide to the comptroller, for the purpose of
assisting the comptroller in the identification of persons entitled
to unclaimed property reported to the comptroller, the name,
address, social security number, and date of birth of each person
about whom the commission has such information in its records.
SECTION 62.05. The Department of Public Safety, the
Employees Retirement System of Texas, the Teacher Retirement System
of Texas, and the Texas Workforce Commission shall provide
information to the comptroller as required by Sections 411.0111(a),
811.010(a), and 821.010(a), Government Code, and Section
301.086(a), Labor Code, as amended by this article, beginning in
2016.
Explanation: This change is necessary to provide for certain
reports, filed for the purpose of assisting the comptroller in the
identification of persons entitled to unclaimed property, to be
filed every fifth year instead of annually.
(7) House Rule 13, Section 9(4) is suspended to permit the
committee to add text on a matter not included in either version of
the bill by adding proposed Article 63 to read as follows:
ARTICLE 63. AD VALOREM TAXATION OF CERTAIN STORED PROPERTY
SECTION 63.01. Subsection (a), Section 11.253, Tax Code, is
amended by amending Subdivision (2) and adding Subdivisions (5) and
(6) to read as follows:
(2) "Goods-in-transit" means tangible personal
property that:
(A) is acquired in or imported into this state to
be forwarded to another location in this state or outside this
state;
(B) is stored under a contract of bailment by a
public warehouse operator [detained] at one or more public
warehouse facilities [a location] in this state that are not in any
way owned or controlled by [in which] the owner of the personal
property [does not have a direct or indirect ownership interest]
for the account of [assembling, storing, manufacturing,
processing, or fabricating purposes by] the person who acquired or
imported the property;
(C) is transported to another location in this
state or outside this state not later than 175 days after the date
the person acquired the property in or imported the property into
this state; and
(D) does not include oil, natural gas, petroleum
products, aircraft, dealer's motor vehicle inventory, dealer's
vessel and outboard motor inventory, dealer's heavy equipment
inventory, or retail manufactured housing inventory.
(5) "Bailee" and "warehouse" have the meanings
assigned by Section 7.102, Business & Commerce Code.
(6) "Public warehouse operator" means a person that:
(A) is both a bailee and a warehouse; and
(B) stores under a contract of bailment, at one
or more public warehouse facilities, tangible personal property
that is owned by other persons solely for the account of those
persons and not for the operator's account.
SECTION 63.02. Section 11.253, Tax Code, is amended by
amending Subsections (e) and (h) and adding Subsections (j-1) and
(j-2) to read as follows:
(e) In determining the market value of goods-in-transit
that in the preceding year were [assembled,] stored[, manufactured,
processed, or fabricated] in this state, the chief appraiser shall
exclude the cost of equipment, machinery, or materials that entered
into and became component parts of the goods-in-transit but were
not themselves goods-in-transit or that were not transported to
another location in this state or outside this state before the
expiration of 175 days after the date they were brought into this
state by the property owner or acquired by the property owner in
this state. For component parts held in bulk, the chief appraiser
may use the average length of time a component part was held by the
owner of the component parts during the preceding year at a location
in this state that was not owned by or under the control of the owner
of the component parts in determining whether the component parts
were transported to another location in this state or outside this
state before the expiration of 175 days.
(h) The chief appraiser by written notice delivered to a
property owner who claims an exemption under this section may
require the property owner to provide copies of property records so
the chief appraiser can determine the amount and value of
goods-in-transit and that the location in this state where the
goods-in-transit were detained for storage [assembling, storing,
manufacturing, processing, or fabricating purposes] was not owned
by or under the control of the owner of the goods-in-transit. If
the property owner fails to deliver the information requested in
the notice before the 31st day after the date the notice is
delivered to the property owner, the property owner forfeits the
right to claim or receive the exemption for that year.
(j-1) Notwithstanding Subsection (j) or official action
that was taken under that subsection before September 1, 2011, to
tax goods-in-transit exempt under Subsection (b) and not exempt
under other law, a taxing unit may not tax such goods-in-transit in
a tax year that begins on or after January 1, 2012, unless the
governing body of the taxing unit takes action on or after September
1, 2011, in the manner required for official action by the governing
body, to provide for the taxation of the goods-in-transit. The
official action to tax the goods-in-transit must be taken before
January 1 of the first tax year in which the governing body proposes
to tax goods-in-transit. Before acting to tax the exempt property,
the governing body of the taxing unit must conduct a public hearing
as required by Section 1-n(d), Article VIII, Texas Constitution.
If the governing body of a taxing unit provides for the taxation of
the goods-in-transit as provided by this subsection, the exemption
prescribed by Subsection (b) does not apply to that unit. The
goods-in-transit remain subject to taxation by the taxing unit
until the governing body of the taxing unit, in the manner required
for official action, rescinds or repeals its previous action to tax
goods-in-transit or otherwise determines that the exemption
prescribed by Subsection (b) will apply to that taxing unit.
(j-2) Notwithstanding Subsection (j-1), if under Subsection
(j) the governing body of a taxing unit, before September 1, 2011,
took action to provide for the taxation of goods-in-transit and
pledged the taxes imposed on the goods-in-transit for the payment
of a debt of the taxing unit, the tax officials of the taxing unit
may continue to impose the taxes against the goods-in-transit until
the debt is discharged, if cessation of the imposition would impair
the obligation of the contract by which the debt was created.
SECTION 63.03. Subdivision (2), Subsection (a), Section
11.253, Tax Code, as amended by this article, applies only to an ad
valorem tax year that begins on or after January 1, 2012.
SECTION 63.04. (a) Except as provided by Subsection (b) of
this section, this article takes effect January 1, 2012.
(b) Section 63.02 of this article takes effect September 1,
2011.
Explanation: This change is necessary to clarify the law
regarding the exemption from ad valorem taxation of certain
property stored temporarily at a location in this state.
(8) House Rule 13, Section 9(4) is suspended to permit the
committee to add text on a matter not included in either version of
the bill by adding proposed Article 64 to read as follows:
ARTICLE 64. FISCAL MATTERS CONCERNING ADVANCED PLACEMENT
SECTION 64.01. Subsection (h), Section 28.053, Education
Code, is amended to read as follows:
(h) The commissioner may enter into agreements with the
college board and the International Baccalaureate Organization to
pay for all examinations taken by eligible public school students.
An eligible student is a student [one] who:
(1) takes a college advanced placement or
international baccalaureate course at a public school or who is
recommended by the student's principal or teacher to take the test;
and
(2) demonstrates financial need as determined in
accordance with guidelines adopted by the board that are consistent
with the definition of financial need adopted by the college board
or the International Baccalaureate Organization.
Explanation: This change is necessary to provide that only
students who demonstrate financial need are eligible students for
the purpose of payments for certain examinations related to an
advanced placement course or international baccalaureate course.
(9) House Rule 13, Section 9(4) is suspended to permit the
committee to add text on a matter not included in either version of
the bill by adding proposed Article 65 to read as follows:
ARTICLE 65. FISCAL MATTERS CONCERNING TUITION EXEMPTIONS
SECTION 65.01. Subsection (c), Section 54.214, Education
Code, is amended to read as follows:
(c) To be eligible for an exemption under this section, a
person must:
(1) be a resident of this state;
(2) be a school employee serving in any capacity;
(3) for the initial term or semester for which the
person receives an exemption under this section, have worked as an
educational aide for at least one school year during the five years
preceding that term or semester;
(4) establish financial need as determined by
coordinating board rule;
(5) be enrolled at the institution of higher education
granting the exemption in courses required for teacher
certification in one or more subject areas determined by the Texas
Education Agency to be experiencing a critical shortage of teachers
at the public schools in this state [at the institution of higher
education granting the exemption];
(6) maintain an acceptable grade point average as
determined by coordinating board rule; and
(7) comply with any other requirements adopted by the
coordinating board under this section.
SECTION 65.02. The change in law made by this article
applies beginning with tuition and fees charged for the 2011 fall
semester. Tuition and fees charged for a term or semester before
the 2011 fall semester are covered by the law in effect during the
term or semester for which the tuition and fees are charged, and the
former law is continued in effect for that purpose.
Explanation: This change is necessary to provide for
targeting tuition exemptions to course work in subject areas for
which there is a shortage of teachers.
(10) House Rule 13, Section 9(4) is suspended to permit the
committee to add text on a matter not included in either version of
the bill by adding proposed Article 66 to read as follows:
ARTICLE 66. FISCAL MATTERS CONCERNING DUAL HIGH SCHOOL AND
JUNIOR COLLEGE CREDIT
SECTION 66.01. Subsection (c), Section 130.008, Education
Code, is amended to read as follows:
(c) The contact hours attributable to the enrollment of a
high school student in a course offered for joint high school and
junior college credit under this section, excluding a course for
which the student attending high school may receive course credit
toward the physical education curriculum requirement under Section
28.002(a)(2)(C), shall be included in the contact hours used to
determine the junior college's proportionate share of the state
money appropriated and distributed to public junior colleges under
Sections 130.003 and 130.0031, even if the junior college waives
all or part of the tuition or fees for the student under Subsection
(b).
SECTION 66.02. This article applies beginning with funding
for the 2011 fall semester.
Explanation: This change is necessary to prevent junior
colleges from receiving state funding for high school students
enrolled for dual credit in physical education courses.
(11) House Rule 13, Section 9(4) is suspended to permit the
committee to add text on a matter not included in either version of
the bill by adding proposed Article 67 to read as follows:
ARTICLE 67. CLASSIFICATION OF ENTITIES AS ENGAGED IN RETAIL
TRADE FOR PURPOSES OF THE FRANCHISE TAX
SECTION 67.01. Subdivision (12), Section 171.0001, Tax
Code, is amended to read as follows:
(12) "Retail trade" means:
(A) the activities described in Division G of the
1987 Standard Industrial Classification Manual published by the
federal Office of Management and Budget; and
(B) apparel rental activities classified as
Industry 5999 or 7299 of the 1987 Standard Industrial
Classification Manual published by the federal Office of Management
and Budget.
SECTION 67.02. This article applies only to a report
originally due on or after the effective date of this Act.
SECTION 67.03. This article takes effect January 1, 2012.
Explanation: This change is necessary to clarify the
treatment of clothing rental businesses for purposes of the
franchise tax.
(12) House Rule 13, Section 9(4) is suspended to permit the
committee to add text on a matter not included in either version of
the bill by adding proposed Article 68 to read as follows:
ARTICLE 68. RETENTION OF CERTAIN FOUNDATION SCHOOL FUND PAYMENTS
SECTION 68.01. Subchapter E, Chapter 42, Education Code, is
amended by adding Section 42.2511 to read as follows:
Sec. 42.2511. AUTHORIZATION FOR CERTAIN DISTRICTS TO RETAIN
ADDITIONAL STATE AID. (a) This section applies only to a school
district that was provided with state aid under former Section
42.2516 for the 2009-2010 or 2010-2011 school year based on the
amount of aid to which the district would have been entitled under
that section if Section 42.2516(g), as it existed on January 1,
2009, applied to determination of the amount to which the district
was entitled for that school year.
(b) Notwithstanding any other law, a district to which this
section applies may retain the state aid provided to the district as
described by Subsection (a).
(c) This section expires September 1, 2013.
SECTION 68.02. It is the intent of the legislature that the
authorization provided by Section 42.2511, Education Code, as added
by this article, to retain state aid described by that section is
not affected by the expiration of that provision on September 1,
2013.
Explanation: This change is necessary to allow school
districts that adopted a tax rate lower than the applicable
compressed tax rate to retain additional state aid for tax
reduction that was received in the 2009-2010 or 2010-2011 school
year.
(13) House Rule 13, Section 9(4) is suspended to permit the
committee to add text on a matter not included in either version of
the bill by adding proposed Article 69 to read as follows:
ARTICLE 69. THE STATE COMPRESSION PERCENTAGE
SECTION 69.01. Section 42.2516, Education Code, is amended
by adding Subsection (b-2) to read as follows:
(b-2) If a school district adopts a maintenance and
operations tax rate that is below the rate equal to the product of
the state compression percentage multiplied by the maintenance and
operations tax rate adopted by the district for the 2005 tax year,
the commissioner shall reduce the district's entitlement under this
section in proportion to the amount by which the adopted rate is
less than the rate equal to the product of the state compression
percentage multiplied by the rate adopted by the district for the
2005 tax year. The reduction required by this subsection applies
beginning with the maintenance and operations tax rate adopted for
the 2009 tax year.
Explanation: This change is necessary to provide for a
reduced amount of additional state aid for tax reduction to a school
district that adopts a tax rate lower than the applicable
compressed tax rate.
(14) House Rule 13, Section 9(4) is suspended to permit the
committee to add text on a matter not included in either version of
the bill by adding proposed Article 70 to read as follows:
ARTICLE 70. TEXAS GUARANTEED STUDENT LOAN CORPORATION;
BOARD OF DIRECTORS
SECTION 70.01. Subsections (a) and (b), Section 57.13,
Education Code, are amended to read as follows:
(a) The corporation is governed by a board of nine [11]
directors in accordance with this section.
(b) The governor, with the advice and consent of the senate,
shall appoint the [10] members of [to] the board as follows:
(1) four [five] members who must have knowledge of or
experience in finance, including management of funds or business
operations;
(2) one member who must be a student enrolled at a
postsecondary educational institution for the number of credit
hours required by the institution to be classified as a full-time
student of the institution; and
(3) four members who must be members the faculty or
administration of a [an eligible] postsecondary educational
institution that is an eligible institution for purposes of the
Higher Education Act of 1965, as amended[, as defined by Section
57.46].
SECTION 70.02. Section 57.17, Education Code, is amended to
read as follows:
Sec. 57.17. OFFICERS. The governor shall designate the
chairman from among the board's membership. The board shall elect
from among its members a [chairman,] vice-chairman[,] and other
officers that the board considers necessary. The chairman and
vice-chairman serve for a term of one year and may be redesignated
or reelected, as applicable.
SECTION 70.03. Subsection (d), Section 57.13, Education
Code, is repealed.
Explanation: This change is necessary to reform the
governance of the Texas Guaranteed Student Loan Corporation.
(15) House Rule 13, Section 9(4) is suspended to permit the
committee to add text on a matter not included in either version of
the bill by adding proposed Article 71 to read as follows:
ARTICLE 71. DRIVER'S LICENSES AND PERSONAL IDENTIFICATION
CERTIFICATES
SECTION 71.01. Subchapter A, Chapter 521, Transportation
Code, is amended by adding Section 521.007 to read as follows:
Sec. 521.007. SECURITY, VALIDITY, AND EFFICIENCY STUDY.
(a) Notwithstanding any other law, the commission shall study
procedures and requirements necessary or advisable to ensure the
security, validity, and efficiency of driver's licenses and
personal identification certificates issued under this chapter.
The study must include an analysis of potential cost savings,
revenue issues, and other fiscal matters related to the issuance of
the license and certificates. The commission shall adopt rules to
implement any procedures or requirements the commission finds are
necessary or advisable.
(b) Notwithstanding any other law, the commission by rule
may specify the term of a driver's license or personal
identification certificate issued under this chapter.
SECTION 71.02. The legislature declares that the Department
of Public Safety had the statutory authority to adopt the rules
regarding driver's licenses and personal identification
certificates that are in effect on the effective date of this
article and that the rules are valid.
SECTION 71.03. This article takes effect immediately if
this Act receives a vote of two-thirds of all the members elected to
each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
this article to have immediate effect, this article takes effect
September 1, 2011.
Explanation: This change is necessary to identify procedures
and requirements to ensure the security, validity, and efficiency
of driver's licenses and personal identification certificates, to
identify the potential cost savings, revenue issues, and other
fiscal matters related to the issuance of license and certificates,
to provide for authority for rules to specify the terms of licenses
and certificates, and to validate certain rules previously adopted
regarding driver's licenses and personal identification
certificates.
(16) House Rule 13, Section 9(4) is suspended to permit the
committee to add text on a matter not included in either version of
the bill by adding proposed Article 72 to read as follows:
ARTICLE 72. FISCAL MATTERS CONCERNING LEASES OF PUBLIC LAND FOR
MINERAL DEVELOPMENT
SECTION 72.01. Subsections (a) and (c), Section 85.66,
Education Code, are amended to read as follows:
(a) If oil or other minerals are developed on any of the
lands leased by the board, the royalty or money as stipulated in the
sale shall be paid to the general land office at Austin on or before
the last day of each month for the preceding month during the life
of the rights purchased, and shall be set aside [in the state
treasury] as specified in Section 85.70 [of this code]. The royalty
or money paid to the general land office shall be accompanied by the
sworn statement of the owner, manager, or other authorized agent
showing the gross amount of oil, gas, sulphur, mineral ore, and
other minerals produced and saved since the last report, the amount
of oil, gas, sulphur, mineral ore, and other minerals produced and
sold off the premises, and the market value of the oil, gas,
sulphur, mineral ore, and other minerals, together with a copy of
all daily gauges, or vats, tanks, gas meter readings, pipeline
receipts, gas line receipts and other checks and memoranda of the
amounts produced and put into pipelines, tanks, vats, or pool and
gas lines, gas storage, other places of storage, and other means of
transportation.
(c) The commissioner of the general land office shall tender
to the board on or before the 10th day of each month a report of all
receipts that are collected from the lease or sale of oil, gas,
sulphur, mineral ore, and other minerals and that are deposited
[turned into the state treasury,] as provided by Section 85.70
during [of this code, of] the preceding month.
SECTION 72.02. Section 85.69, Education Code, is amended to
read as follows:
Sec. 85.69. PAYMENTS; DISPOSITION. Payments under this
subchapter shall be made to the commissioner of the general land
office at Austin, who shall transmit to the board [comptroller] all
royalties, lease fees, rentals for delay in drilling or mining, and
all other payments, including all filing assignments and
relinquishment fees, to be deposited [in the state treasury] as
provided by Section 85.70 [of this code].
SECTION 72.03. Section 85.70, Education Code, is amended to
read as follows:
Sec. 85.70. CERTAIN MINERAL LEASES; DISPOSITION OF MONEY;
SPECIAL FUNDS; INVESTMENT. (a) Except as provided by Subsection
(c) [of this section], all money received under and by virtue of
this subchapter shall be deposited in [the state treasury to the
credit of] a special fund managed by the board to be known as The
Texas A&M University System Special Mineral Investment Fund. Money
in the fund is considered to be institutional funds, as defined by
Section 51.009, of the system and its component institutions. The
[With the approval of the comptroller, the board of regents of The
Texas A&M University System may appoint one or more commercial
banks, depository trust companies, or other entities to serve as
custodian or custodians of the Special Mineral Investment Fund's
securities with authority to hold the money realized from those
securities pending completion of an investment transaction if the
money held is reinvested within one business day of receipt in
investments determined by the board of regents. Money not
reinvested within one business day of receipt shall be deposited in
the state treasury not later than the fifth day after the date of
receipt. In the judgment of the board, this] special fund may be
invested so as to produce [an] income which may be expended under
the direction of the board for the general use of any component of
The Texas A&M University System, including erecting permanent
improvements and in payment of expenses incurred in connection with
the administration of this subchapter. The unexpended income
likewise may be invested as [herein] provided by this section.
(b) The income from the investment of the special mineral
investment fund created by [under] Subsection (a) [of this section]
shall be deposited in [to the credit of] a fund managed by the board
to be known as The Texas A&M University System Special Mineral
Income Fund, and is considered to be institutional funds, as
defined by Section 51.009, of the system and its component
institutions [shall be appropriated by the legislature exclusively
for the university system for the purposes herein provided].
(c) The board shall lease for oil, gas, sulphur, or other
mineral development, as prescribed by this subchapter, all or part
of the land under the exclusive control of the board owned by the
State of Texas and acquired for the use of Texas A&M
University--Kingsville and its divisions. Any money received by
the board concerning such land under this subchapter shall be
deposited in [the state treasury to the credit of] a special fund
managed by the board to be known as the Texas A&M
University--Kingsville special mineral fund. Money in the fund is
considered to be institutional funds, as defined by Section 51.009,
of the university and is[,] to be used exclusively for the
university [Texas A&M University--Kingsville] and its branches and
divisions. [Money may not be expended from this fund except as
authorized by the general appropriations act.]
(d) All deposits in and investments of the fund under this
section shall be made in accordance with Section 51.0031.
(e) Section 34.017, Natural Resources Code, does not apply
to funds created by this section.
SECTION 72.04. Subsection (b), Section 95.36, Education
Code, is amended to read as follows:
(b) Except as provided in Subsection (c) of this section,
any money received by virtue of this section and the income from the
investment of such money shall be deposited in [the State Treasury
to the credit of] a special fund managed by the board to be known as
the Texas State University System special mineral fund. Money in
the fund is considered to be institutional funds, as defined by
Section 51.009, of the system and its component institutions and
is[,] to be used exclusively for those entities. All deposits in and
investments of the fund shall be made in accordance with Section
51.0031. Section 34.017, Natural Resources Code, does not apply to
the fund [the university system and the universities in the system.
However, no money shall ever be expended from this fund except as
authorized by the General Appropriations Act].
SECTION 72.05. Subsection (b), Section 109.61, Education
Code, is amended to read as follows:
(b) Any money received by virtue of this section shall be
deposited in [the state treasury to the credit of] a special fund
managed by the board to be known as the Texas Tech University
special mineral fund. Money in the fund is considered to be
institutional funds, as defined by Section 51.009, of the
university and is[,] to be used exclusively for the university and
its branches and divisions. All deposits in and investments of the
fund shall be made in accordance with Section 51.0031. Section
34.017, Natural Resources Code, does not apply to the fund.
[However, no money shall ever be expended from this fund except as
authorized by the general appropriations act.]
SECTION 72.06. Subsections (a) and (c), Section 109.75,
Education Code, are amended to read as follows:
(a) If oil or other minerals are developed on any of the
lands leased by the board, the royalty as stipulated in the sale
shall be paid to the general land office in Austin on or before the
last day of each month for the preceding month during the life of
the rights purchased. The royalty payments shall be set aside [in
the state treasury] as specified in Section 109.61 [of this code]
and used as provided in that section.
(c) The commissioner of the general land office shall tender
to the board on or before the 10th day of each month a report of all
receipts that are collected from the lease or sale of oil, gas,
sulphur, or other minerals and that are deposited in [turned into]
the special fund as provided by Section 109.61 [in the state
treasury] during the preceding month.
SECTION 72.07. Subsection (b), Section 109.78, Education
Code, is amended to read as follows:
(b) Payment of all royalties, lease fees, rentals for delay
in drilling or mining, filing fees for assignments and
relinquishments, and all other payments shall be made to the
commissioner of the general land office at Austin. The
commissioner shall transmit all payments received to the board
[comptroller] for deposit to the credit of the Texas Tech
University special mineral fund as provided by Section 109.61.
SECTION 72.08. Section 85.72, Education Code, is repealed.
SECTION 72.09. This article takes effect September 1, 2011.
Explanation: This change is necessary to provide for certain
mineral income for the Texas A&M University System, Texas Tech
University, and the Texas State University System to be treated
similarly to mineral income for other institutions of higher
education.
(17) House Rule 13, Section 9(4) is suspended to permit the
committee to add text on a matter not included in either version of
the bill by adding proposed Article 73 to read as follows:
ARTICLE 73. FOUNDATION SCHOOL PROGRAM FINANCING; CERTAIN TAX
INCREMENT FUND REPORTING MATTERS
SECTION 73.01. (a) This section applies only to a school
district that, before May 1, 2011, received from the commissioner
of education a notice of a reduction in state funding for the
2004-2005, 2005-2006, 2006-2007, 2007-2008, and 2008-2009 school
years based on the district's reporting related to deposits of
taxes into a tax increment fund under Chapter 311, Tax Code.
(b) Notwithstanding any other law, including Section
42.302(b)(2), Education Code, the commissioner of education shall
reduce by one-half the amounts of the reduction of entitlement
amounts computed for purposes of adjusting entitlement amounts to
account for taxes deposited into a tax increment fund for any of the
school years described by Subsection (a) of this section.
(c) This section expires September 1, 2013.
Explanation: This change is necessary to provide for the
proper adjustment of foundation school program entitlement amounts
in cases of reductions resulting from tax increment fund deposit
reporting for certain school years by certain school districts.
(18) House Rule 13, Section 9(4) is suspended to permit the
committee to add text on a matter not included in either version of
the bill by adding proposed Article 74 to the bill to read as
follows:
ARTICLE 74. CRIMINAL BACKGROUND CHECKS FOR CERTAIN
INTERSCHOLASTIC SPORTS OFFICIALS
SECTION 74.01. Subchapter D, Chapter 33, Education Code, is
amended by adding Section 33.085 to read as follows:
Sec. 33.085. CRIMINAL BACKGROUND CHECKS FOR SPORTS
OFFICIALS; COST RECOVERY. (a) In this section, "sports official"
means a person who officiates, judges, or otherwise enforces
contest rules in an official capacity for athletic competition.
The term includes a referee, umpire, linesman, side judge, and back
judge.
(b) The University Interscholastic League by rule may
require a person to have a criminal background check conducted by
the league as a precondition of acting as a sports official for
interscholastic athletic competition.
(c) The University Interscholastic League may refuse to
allow a person to act as a sports official for interscholastic
athletic competition if a criminal background check conducted under
league rules reveals a conviction of:
(1) an offense involving moral turpitude;
(2) an offense involving a form of sexual or physical
abuse of a minor or student or other illegal conduct in which the
victim is a minor or student;
(3) a felony offense involving the possession,
transfer, sale, or distribution of or conspiracy to possess,
transfer, sell, or distribute a controlled substance, as defined by
Chapter 481, Health and Safety Code, or by 21 U.S.C. Section 801 et
seq.;
(4) an offense involving the illegal transfer,
appropriation, or use of school district funds or other district
property; or
(5) an offense involving an attempt by fraudulent or
unauthorized means to obtain or alter registration to serve as a
sports official for interscholastic athletic competition.
(d) An interscholastic athletic league by rule may
establish a cost recovery program to offset any costs the league
incurs as a result of the implementation of this section.
Explanation: This change is necessary to provide for criminal
background checks for certain sports officials for interscholastic
athletic competition and for the recover costs associated with the
program incurred by an interscholastic athletic league.
(19) House Rule 13, Section 9(4) is suspended to permit the
committee to add text on a matter not included in either version of
the bill by adding proposed Article 75 to the bill to read as
follows:
ARTICLE 75. FISCAL MATTERS RELATING TO PUBLIC SCHOOL FINANCE
SECTION 75.01. Effective September 1, 2011, Section 12.106,
Education Code, is amended by amending Subsection (a) and adding
Subsection (a-3) 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 percentage specified by Section 42.2516(i)
multiplied by 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 the percentage specified by Section 42.2516(i)
multiplied by $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.
(a-3) In determining funding for an open-enrollment charter
school under Subsection (a), the commissioner shall apply the
regular program adjustment factor provided under Section 42.101 to
calculate the regular program allotment to which a charter school
is entitled.
SECTION 75.02. Effective September 1, 2017, Subsection (a),
Section 12.106, 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 75.03. Effective September 1, 2011, Section 21.402,
Education Code, is amended by amending Subsections (a), (b), (c),
and (c-1) and adding Subsection (i) to read as follows:
(a) Except as provided by Subsection (d)[, (e),] or (f), a
school district must pay each classroom teacher, full-time
librarian, full-time counselor certified under Subchapter B, or
full-time school nurse not less than the minimum monthly salary,
based on the employee's level of experience in addition to other
factors, as determined by commissioner rule, determined by the
following formula:
MS = SF x FS
where:
"MS" is the minimum monthly salary;
"SF" is the applicable salary factor specified by Subsection
(c); and
"FS" is the amount, as determined by the commissioner under
Subsection (b), of the basic allotment as provided by Section
42.101 (a) or (b) for a school district with a maintenance and
operations tax rate at least equal to the state maximum compressed
tax rate, as defined by Section 42.101 (a) [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].
(b) Not later than June 1 of each year, the commissioner
shall determine the basic allotment and resulting monthly salaries
to be paid by school districts as provided by Subsection (a) [amount
of state and local funds per weighted student available, for
purposes of Subsection (a), to a district described by that
subsection for the following school year].
(c) The salary factors per step are as follows:
0 1 2 3 4 0 1 2 3 4
0 1 2 3 4
.5464 [.6226] .5582 [.6360] .5698 [.6492] .5816 [.6627] .6064 [.6909] .5464 [.6226] .5582 [.6360] .5698 [.6492] .5816 [.6627] .6064 [.6909]
.5464 [.6226] .5582 [.6360] .5698 [.6492] .5816 [.6627] .6064 [.6909]
5 6 7 8 9 5 6 7 8 9
5 6 7 8 9
.6312 [.7192] .6560 [.7474] .6790 [.7737] .7008 [.7985] .7214 [.8220] .6312 [.7192] .6560 [.7474] .6790 [.7737] .7008 [.7985] .7214 [.8220]
.6312 [.7192] .6560 [.7474] .6790 [.7737] .7008 [.7985] .7214 [.8220]
10 11 12 13 14 10 11 12 13 14
10 11 12 13 14
.7408 [.8441] .7592 [.8650] .7768 [.8851] .7930 [.9035] .8086 [.9213] .7408 [.8441] .7592 [.8650] .7768 [.8851] .7930 [.9035] .8086 [.9213]
.7408 [.8441] .7592 [.8650] .7768 [.8851] .7930 [.9035] .8086 [.9213]
15 16 17 18 19 15 16 17 18 19
15 16 17 18 19
.8232 [.9380] .8372 [.9539] .8502 [.9687] .8626 [.9828] .8744 [.9963] .8232 [.9380] .8372 [.9539] .8502 [.9687] .8626 [.9828] .8744 [.9963]
.8232 [.9380] .8372 [.9539] .8502 [.9687] .8626 [.9828] .8744 [.9963]
.8854 [1.009] .8854 [1.009]
.8854 [1.009]
(c-1) Notwithstanding Subsections [Subsection] (a) and
(b)[, for the 2009-2010 and 2010-2011 school years], each school
district shall pay a monthly salary to [increase the monthly salary
of] each classroom teacher, full-time speech pathologist,
full-time librarian, full-time counselor certified under
Subchapter B, and full-time school nurse that is at least equal to
the following monthly salary or the monthly salary determined by
the commissioner under Subsections (a) and (b), whichever is [by
the] greater [of]:
Years of Monthly Years of Monthly
Years of Monthly
Experience Salary Experience Salary
Experience Salary
0 2,732 0 2,732
0 2,732
1 2,791 1 2,791
1 2,791
2 2,849 2 2,849
2 2,849
3 2,908 3 2,908
3 2,908
4 3,032 4 3,032
4 3,032
5 3,156 5 3,156
5 3,156
6 3,280 6 3,280
6 3,280
7 3,395 7 3,395
7 3,395
8 3,504 8 3,504
8 3,504
9 3,607 9 3,607
9 3,607
10 3,704 10 3,704
10 3,704
11 3,796 11 3,796
11 3,796
12 3,884 12 3,884
12 3,884
13 3,965 13 3,965
13 3,965
14 4,043 14 4,043
14 4,043
15 4,116 15 4,116
15 4,116
16 4,186 16 4,186
16 4,186
17 4,251 17 4,251
17 4,251
18 4,313 18 4,313
18 4,313
19 4,372 19 4,372
19 4,372
20 & Over 4,427 20 & Over 4,427
20 & Over 4,427
[(1) $80; or
[(2) the maximum uniform amount that, when combined with any
resulting increases in the amount of contributions made by the
district for social security coverage for the specified employees
or by the district on behalf of the specified employees under
Section 825.405, Government Code, may be provided using an amount
equal to the product of $60 multiplied by the number of students in
weighted average daily attendance in the school during the
2009-2010 school year.]
(i) Not later than January 1, 2013, the commissioner shall
submit to the governor, the lieutenant governor, the speaker of the
house of representatives, and the presiding officer of each
legislative standing committee with primary jurisdiction over
primary and secondary education a written report that evaluates and
provides recommendations regarding the salary schedule. This
subsection expires September 1, 2013.
SECTION 75.04. Effective September 1, 2017, Section 21.402,
Education Code, is amended by amending Subsection (a) and adding
Subsection (e-1) to read as follows:
(a) Except as provided by Subsection (d), (e-1) [(e)], or
(f), a school district must pay each classroom teacher, full-time
librarian, full-time counselor certified under Subchapter B, or
full-time school nurse not less than the minimum monthly salary,
based on the employee's level of experience in addition to other
factors, as determined by commissioner rule, determined by the
following formula:
MS = SF x FS
where:
"MS" is the minimum monthly salary;
"SF" is the applicable salary factor specified by Subsection
(c); and
"FS" is the amount, as determined by the commissioner under
Subsection (b), of the basic allotment as provided by Section
42.101(a) or (b) for a school district with a maintenance and
operation tax rate at least equal to the state maximum compressed
tax rate, as defined by Section 42.101(a) [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].
(e-1) If the minimum monthly salary determined under
Subsection (a) for a particular level of experience is less than the
minimum monthly salary for that level of experience in the
preceding year, the minimum monthly salary is the minimum monthly
salary for the preceding year.
SECTION 75.05. Subsection (a), Section 41.002, Education
Code, is amended to read as follows:
(a) A school district may not have a wealth per student that
exceeds:
(1) the wealth per student that generates the amount
of maintenance and operations tax revenue per weighted student
available to a district with maintenance and operations tax revenue
per cent of tax effort equal to the maximum amount provided per cent
under Section 42.101(a) or (b) [42.101], for the district's
maintenance and operations tax effort equal to or less than the rate
equal to the product of the state compression percentage, as
determined under Section 42.2516, multiplied by the maintenance and
operations tax rate adopted by the district for the 2005 tax year;
(2) the wealth per student that generates the amount
of maintenance and operations tax revenue per weighted student
available to the Austin Independent School District, as determined
by the commissioner in cooperation with the Legislative Budget
Board, for the first six cents by which the district's maintenance
and operations tax rate exceeds the rate equal to the product of the
state compression percentage, as determined under Section 42.2516,
multiplied by the maintenance and operations tax rate adopted by
the district for the 2005 tax year, subject to Section 41.093(b-1);
or
(3) $319,500, for the district's maintenance and
operations tax effort that exceeds the first six cents by which the
district's maintenance and operations tax effort exceeds the rate
equal to the product of the state compression percentage, as
determined under Section 42.2516, multiplied by the maintenance and
operations tax rate adopted by the district for the 2005 tax year.
SECTION 75.06. The heading to Section 42.101, Education
Code, is amended to read as follows:
Sec. 42.101. BASIC AND REGULAR PROGRAM ALLOTMENTS
[ALLOTMENT].
SECTION 75.07. Section 42.101, Education Code, is amended
by amending Subsections (a) and (b) and adding Subsections (c) and
(c-1) to read as follows:
(a) The basic [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 is an amount 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 resulting amount for [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.
(b) A greater amount for any school year for the basic
allotment under Subsection (a) may be provided by appropriation.
(c) A school district is entitled to a regular program
allotment equal to the amount that results from the following
formula:
RPA = ADA X AA X RPAF
where:
"RPA" is the regular program allotment to which the district
is entitled;
"ADA" is the number of students in average daily attendance
in a district, 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;
"AA" is the district's adjusted basic allotment, as
determined under Section 42.102 and, if applicable, as further
adjusted under Section 42.103; and
"RPAF" is the regular program adjustment factor, which is an
amount established by appropriation.
(c-1) Notwithstanding Subsection (c), the regular program
adjustment factor ("RPAF") is 0.9239 for the 2011-2012 school year
and 0.98 for the 2012-2013 school year. This subsection expires
September 1, 2013.
SECTION 75.08. Section 42.105, Education Code, is amended
to read as follows:
Sec. 42.105. SPARSITY ADJUSTMENT. Notwithstanding
Sections 42.101, 42.102, and 42.103, a school district that has
fewer than 130 students in average daily attendance shall be
provided a regular program [an adjusted basic] allotment on the
basis of 130 students in average daily attendance if it offers a
kindergarten through grade 12 program and has preceding or current
year's average daily attendance of at least 90 students or is 30
miles or more by bus route from the nearest high school district. A
district offering a kindergarten through grade 8 program whose
preceding or current year's average daily attendance was at least
50 students or which is 30 miles or more by bus route from the
nearest high school district shall be provided a regular program
[an adjusted basic] allotment on the basis of 75 students in average
daily attendance. An average daily attendance of 60 students shall
be the basis of providing the regular program [adjusted basic]
allotment if a district offers a kindergarten through grade 6
program and has preceding or current year's average daily
attendance of at least 40 students or is 30 miles or more by bus
route from the nearest high school district.
SECTION 75.09. Subsection (a), Section 42.251, Education
Code, is amended to read as follows:
(a) The sum of the regular program [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.
SECTION 75.10. Subchapter E, Chapter 42, Education Code, is
amended by adding Section 42.2514 to read as follows:
Sec. 42.2514. ADDITIONAL STATE AID FOR TAX INCREMENT
FINANCING PAYMENTS. For each school year, 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 amount the district is required to pay into the tax increment
fund for a reinvestment zone under Section 311.013(n), Tax Code.
SECTION 75.11. Effective September 1, 2011, Section
42.2516, Education Code, is amended by amending Subsections (a),
(b), (d), and (f-2) and adding Subsection (i) to read as follows:
(a) In this title [section], "state compression percentage"
means the percentage[, as determined by the commissioner,] of a
school district's adopted maintenance and operations tax rate for
the 2005 tax year that serves as the basis for state funding [for
tax rate reduction under this section]. If the state compression
percentage is not established by appropriation for a school year,
the [The] commissioner shall determine the state compression
percentage for each school year based on the percentage by which a
district is able to reduce the district's maintenance and
operations tax rate for that year, as compared to the district's
adopted maintenance and operations tax rate for the 2005 tax year,
as a result of state funds appropriated for distribution under this
section for that year from the property tax relief fund established
under Section 403.109, Government Code, or from another funding
source available for school district property tax relief.
(b) Notwithstanding any other provision of this title, a
school district that imposes a maintenance and operations tax at a
rate at least equal to the product of the state compression
percentage multiplied by the maintenance and operations tax rate
adopted by the district for the 2005 tax year is entitled to at
least the amount of state revenue necessary to provide the district
with the sum of:
(1) the percentage specified by Subsection (i) of the
amount, as calculated under Subsection (e), [the amount] of state
and local revenue per student in weighted average daily attendance
for maintenance and operations that the district would have
received during the 2009-2010 school year under Chapter 41 and this
chapter, as those chapters existed on January 1, 2009, at a
maintenance and operations tax rate equal to the product of the
state compression percentage for that year multiplied by the
maintenance and operations tax rate adopted by the district for the
2005 tax year;
(2) the percentage specified by Subsection (i) of an
amount equal to the product of $120 multiplied by the number of
students in weighted average daily attendance in the district; and
(3) [an amount equal to the amount the district is
required to pay into the tax increment fund for a reinvestment zone
under Section 311.013(n), Tax Code, in the current tax year; and
[(4)] any amount to which the district is entitled
under Section 42.106.
(d) In determining the amount to which a district is
entitled under Subsection (b)(1), the commissioner shall:
(1) include the percentage specified by Subsection (i)
of any amounts received by the district during the 2008-2009 school
year under Rider 86, page III-23, Chapter 1428 (H.B. 1), Acts of the
80th Legislature, Regular Session, 2007 (the General
Appropriations Act); and
(2) for a school district that paid tuition under
Section 25.039 during the 2008-2009 school year, reduce the amount
to which the district is entitled by the amount of tuition paid
during that school year.
(f-2) The rules adopted by the commissioner under
Subsection (f-1) must:
(1) require the commissioner to determine, as if this
section did not exist, the effect under Chapter 41 and this chapter
of a school district's action described by Subsection (f-1)(1),
(2), (3), or (4) on the total state revenue to which the district
would be entitled or the cost to the district of purchasing
sufficient attendance credits to reduce the district's wealth per
student to the equalized wealth level; and
(2) require an increase or reduction in the amount of
state revenue to which a school district is entitled under
Subsection (b)(1) [(b)] that is substantially equivalent to any
change in total state revenue or the cost of purchasing attendance
credits that would apply to the district if this section did not
exist.
(i) The percentage to be applied for purposes of Subsections
(b)(1) and (2) and Subsection (d)(1) is 100.00 percent for the
2011-2012 school year and 92.35 percent for the 2012-2013 school
year. For the 2013-2014 school year and each subsequent school
year, the legislature by appropriation shall establish the
percentage reduction to be applied.
SECTION 75.12. Effective September 1, 2017, the heading to
Section 42.2516, Education Code, is amended to read as follows:
Sec. 42.2516. STATE COMPRESSION PERCENTAGE [ADDITIONAL
STATE AID FOR TAX REDUCTION].
SECTION 75.13. Effective September 1, 2017, Subsection (a),
Section 42.2516, Education Code, is amended to read as follows:
(a) In this title [section], "state compression percentage"
means the percentage[, as determined by the commissioner,] of a
school district's adopted maintenance and operations tax rate for
the 2005 tax year that serves as the basis for state funding [for
tax rate reduction under this section]. If the state compression
percentage is not established by appropriation for a school year,
the [The] commissioner shall determine the state compression
percentage for each school year based on the percentage by which a
district is able to reduce the district's maintenance and
operations tax rate for that year, as compared to the district's
adopted maintenance and operations tax rate for the 2005 tax year,
as a result of state funds appropriated for [distribution under
this section for] that year from the property tax relief fund
established under Section 403.109, Government Code, or from another
funding source available for school district property tax relief.
SECTION 75.14. Effective September 1, 2011, Subsection (a),
Section 42.25161, Education Code, is amended to read as follows:
(a) The commissioner shall provide South Texas Independent
School District with the amount of state aid necessary to ensure
that the district receives an amount of state and local revenue per
student in weighted average daily attendance that is at least the
percentage specified by Section 42.2516(i) of $120 greater than the
amount the district would have received per student in weighted
average daily attendance during the 2009-2010 school year under
this chapter, as it existed on January 1, 2009, at a maintenance and
operations tax rate equal to the product of the state compression
percentage multiplied by the maintenance and operations tax rate
adopted by the district for the 2005 tax year, provided that the
district imposes a maintenance and operations tax at that rate.
SECTION 75.15. Subchapter E, Chapter 42, Education Code, is
amended by adding Section 42.2525 to read as follows:
Sec. 42.2525. ADJUSTMENTS FOR CERTAIN DEPARTMENT OF DEFENSE
DISTRICTS. The commissioner is granted the authority to ensure
that Department of Defense school districts do not receive more
than an eight percent reduction should the federal government
reduce appropriations to those schools.
SECTION 75.16. Effective September 1, 2011, Subsections (h)
and (i), Section 42.253, Education Code, are amended to read as
follows:
(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 adjust [reduce] the total amounts due to each school district
under this chapter and the total amounts necessary for each school
district to comply with the requirements of Chapter 41 [amount of
state funds allocated to each district] by an amount determined by
applying to each district, including a district receiving funds
under Section 42.2516, the same percentage adjustment so that the
total amount of the adjustment to all districts [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 an amount [a total levy] equal to the
total adjustment necessary. A school district is not entitled to
reimbursement in a subsequent fiscal year of the amount resulting
from the adjustment authorized by this subsection [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, as adjusted in accordance with
Subsection (h), if applicable, 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 75.17. Effective September 1, 2017, Subsection (h),
Section 42.253, Education Code, is amended to read as follows:
(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 adjust [reduce] the total amounts due to each school district
under this chapter and the total amounts necessary for each school
district to comply with the requirements of Chapter 41 [amount of
state funds allocated to each district] by an amount determined by
applying to each district the same percentage adjustment so that
the total amount of the adjustment to all districts [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 an amount [a total levy] equal to the
total adjustment necessary. A school district is not entitled to
reimbursement in a subsequent fiscal year of the amount resulting
from the adjustment authorized by this subsection [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].
SECTION 75.18. Section 42.258, Education Code, is amended
by amending Subsection (a) and adding Subsection (a-1) to read as
follows:
(a) If a school district has received an overallocation of
state funds, the agency shall, by withholding from subsequent
allocations of state funds for the current or subsequent school
year or by requesting and obtaining a refund, recover from the
district an amount equal to the overallocation.
(a-1) Notwithstanding Subsection (a), the agency may
recover an overallocation of state funds over a period not to exceed
the subsequent five school years if the commissioner determines
that the overallocation was the result of exceptional circumstances
reasonably caused by statutory changes to Chapter 41 or 46 or this
chapter and related reporting requirements.
SECTION 75.19. Subsection (b), Section 42.260, Education
Code, is amended to read as follows:
(b) For each year, the commissioner shall certify to each
school district or participating charter school the amount of[:
[(1)] additional funds to which the district or school
is entitled due to the increase made by H.B. No. 3343, Acts of the
77th Legislature, Regular Session, 2001, to:
(1) [(A)] the equalized wealth level under Section
41.002; or
(2) [(B)] the guaranteed level of state and local
funds per weighted student per cent of tax effort under Section
42.302[; or
[(2) additional state aid to which the district or
school is entitled under Section 42.2513].
SECTION 75.20. Section 44.004, Education Code, is amended
by adding Subsection (g-1) to read as follows:
(g-1) If the rate calculated under Subsection
(c)(5)(A)(ii)(b) decreases after the publication of the notice
required by this section, the president is not required to publish
another notice or call another meeting to discuss and adopt the
budget and the proposed lower tax rate.
SECTION 75.21. Subsection (a), Section 26.05, Tax Code, is
amended to read as follows:
(a) The governing body of each taxing unit, before the later
of September 30 or the 60th day after the date the certified
appraisal roll is received by the taxing unit, shall adopt a tax
rate for the current tax year and shall notify the assessor for the
unit of the rate adopted. The tax rate consists of two components,
each of which must be approved separately. The components are:
(1) for a taxing unit other than a school district, the
rate that, if applied to the total taxable value, will impose the
total amount published under Section 26.04(e)(3)(C), less any
amount of additional sales and use tax revenue that will be used to
pay debt service, or, for a school district, the rate calculated
[published] under Section 44.004(c)(5)(A)(ii)(b), Education Code;
and
(2) the rate that, if applied to the total taxable
value, will impose the amount of taxes needed to fund maintenance
and operation expenditures of the unit for the next year.
SECTION 75.22. Effective September 1, 2017, Subsection (i),
Section 26.08, Tax Code, is amended to read as follows:
(i) For purposes of this section, the effective maintenance
and operations tax rate of a school district is the tax rate that,
applied to the current total value for the district, would impose
taxes in an amount that, when added to state funds that would be
distributed to the district under Chapter 42, Education Code, for
the school year beginning in the current tax year using that tax
rate, [including state funds that will be distributed to the
district in that school year under Section 42.2516, Education
Code,] would provide the same amount of state funds distributed
under Chapter 42, Education Code, [including state funds
distributed under Section 42.2516, Education Code,] and
maintenance and operations taxes of the district per student in
weighted average daily attendance for that school year that would
have been available to the district in the preceding year if the
funding elements for Chapters 41 and 42, Education Code, for the
current year had been in effect for the preceding year.
SECTION 75.23. Subsection (n), Section 311.013, Tax Code,
is amended to read as follows:
(n) This subsection applies only to a school district whose
taxable value computed under Section 403.302(d), Government Code,
is reduced in accordance with Subdivision (4) of that
subsection. In addition to the amount otherwise required to be
paid into the tax increment fund, the district shall pay into the
fund an amount equal to the amount by which the amount of taxes the
district would have been required to pay into the fund in the
current year if the district levied taxes at the rate the district
levied in 2005 exceeds the amount the district is otherwise
required to pay into the fund in the year of the reduction. This
additional amount may not exceed the amount the school district
receives in state aid for the current tax year under Section
42.2514, Education Code. The school district shall pay the
additional amount after the district receives the state aid to
which the district is entitled for the current tax year under
Section 42.2514, Education Code.
SECTION 75.24. Effective September 1, 2011, the following
provisions of the Education Code are repealed:
(1) Subsections (c-2), (c-3), and (e), Section 21.402;
(2) Section 42.008; and
(3) Subsections (a-1) and (a-2), Section 42.101.
SECTION 75.25. (a) Effective September 1, 2017, the
following provisions of the Education Code are repealed:
(1) Section 41.0041;
(2) Subsections (b), (b-1), (b-2), (c), (d), (e), (f),
(f-1), (f-2), (f-3), and (i), Section 42.2516;
(3) Section 42.25161;
(4) Subsection (c), Section 42.2523;
(5) Subsection (g), Section 42.2524;
(6) Subsection (c-1), Section 42.253; and
(7) Section 42.261.
(b) Effective September 1, 2017, Subsections (i-1) and (j),
Section 26.08, Tax Code, are repealed.
SECTION 75.26. (a) The speaker of the house of
representatives and the lieutenant governor shall establish a joint
legislative interim committee to conduct a comprehensive study of
the public school finance system in this state.
(b) Not later than January 15, 2013, the committee shall
make recommendations to the 83rd Legislature regarding changes to
the public school finance system.
(c) The committee is dissolved September 1, 2013.
SECTION 75.27. It is the intent of the legislature, between
fiscal year 2014 and fiscal year 2018, to continue to reduce the
amount of Additional State Aid For Tax Reduction (ASATR) to which a
school district is entitled under Section 42.2516, Education Code,
and to increase the basic allotment to which a school district is
entitled under Section 42.101, Education Code.
SECTION 75.28. Except as otherwise provided by this Act,
the changes in law made by this Act to Chapter 42, Education Code,
apply beginning with the 2011-2012 school year.
SECTION 75.29. The change in law made by Subsection (g-1),
Section 44.004, Education Code, as added by this Act, applies
beginning with adoption of a tax rate for the 2011 tax year.
Explanation: This change is necessary to adjust state aid
payments to school districts and open-enrollment charter schools to
the level of Foundation School Program appropriations made in H.B.
No. 1, Acts of the 82nd Legislature, Regular Session, 2011.
0 1 2 3 4
.5464 [.6226] .5582 [.6360] .5698 [.6492] .5816 [.6627] .6064 [.6909]
5 6 7 8 9
.6312 [.7192] .6560 [.7474] .6790 [.7737] .7008 [.7985] .7214 [.8220]
10 11 12 13 14
.7408 [.8441] .7592 [.8650] .7768 [.8851] .7930 [.9035] .8086 [.9213]
15 16 17 18 19
.8232 [.9380] .8372 [.9539] .8502 [.9687] .8626 [.9828] .8744 [.9963]
.8854 [1.009]
Years of Monthly
Experience Salary
0 2,732
1 2,791
2 2,849
3 2,908
4 3,032
5 3,156
6 3,280
7 3,395
8 3,504
9 3,607
10 3,704
11 3,796
12 3,884
13 3,965
14 4,043
15 4,116
16 4,186
17 4,251
18 4,313
19 4,372
20 & Over 4,427