By: Ogden S.B. No. 1581
A BILL TO BE ENTITLED
AN ACT
relating to state fiscal matters, and certain public health
matters, related to public and higher education; providing
penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. ADMINISTRATIVE MATTERS CONCERNING INSTITUTIONS OF
HIGHER EDUCATION
SECTION 1.01. Section 51.003, Education Code, is amended by
amending Subsection (b) and adding Subsection (f) to read as
follows:
(b) The funds shall either be deposited in the depository
bank or banks or invested as authorized by Chapter 2256, Government
Code (Public Funds Investment Act). Funds that are to be deposited
in the depository bank or banks must be deposited within seven days
from the date of receipt by the institution [collection].
(f) Notwithstanding any other provision of this section,
the governing board of each institution may maintain unsecured
deposits in a foreign bank as necessary to support the
institution's operations in a foreign country. The foreign bank
must:
(1) be licensed and supervised by a central bank;
(2) be audited annually by an accounting firm that
follows international financial reporting standards; and
(3) maintain a capital to total assets ratio that is
not less than the greater of four percent or the minimum tier 1
capital to total assets ratio required for depository institutions
insured by the Federal Deposit Insurance Corporation.
SECTION 1.02. Subchapter A, Chapter 51, Education Code, is
amended by amending Section 51.005 and adding Sections 51.010,
51.011, and 51.012 to read as follows:
Sec. 51.005. REPORTS. Each institution of higher education
[(a) True and full accounts shall be kept by the governing board
and by the employees of the institution of all funds collected from
all sources and of all sums paid out and the persons to whom and the
purposes for which the sums are paid. The governing board] shall
prepare [annually print] a complete annual financial report as
prescribed by Section 2101.011, Government Code [of all the sums
collected, all expenditures, and all sums remaining on hand. The
report shall show the true condition of all funds as of the August
31 preceding as well as the collections and expenditures for the
preceding year.
[(b) Reports under this section must be in a form approved
jointly by the coordinating board and the comptroller. The
accounting and classification procedures of each institution must
be consistent with uniform procedures prescribed for that purpose
by the coordinating board and the comptroller. The requirements
imposed by the coordinating board and the comptroller must be
designed to reduce paperwork and duplicative reports.
[(c) The governing board shall furnish one copy of the
report each to the governor, comptroller of public accounts, state
auditor, Texas Higher Education Coordinating Board, Legislative
Budget Board, House Appropriations Committee, Senate Finance
Committee, and Legislative Reference Library. A copy of the report
shall be submitted to the comptroller by the deadline established
by the comptroller or the General Appropriations Act as necessary
to prepare an audited comprehensive financial report. The
governing board shall retain five copies of the report for
distribution to legislators or other state officials on request].
Sec. 51.010. COLLECTION OF DELINQUENT OBLIGATIONS. If
under the rules adopted by the attorney general under Chapter 2107,
Government Code, an institution of higher education is not required
to refer a delinquent obligation for collection to the attorney
general, the institution is not required to expend resources for
further collection efforts if, considering the amount, security,
likelihood of collection, expense, and available resources, the
institution determines that further collection should not be
actively pursued.
Sec. 51.011. DISPOSITION OF SMALL CREDIT BALANCES.
(a) This section applies to a credit balance of less than $25 held
by an institution of higher education that is presumed abandoned
under Chapter 72, Property Code.
(b) An institution of higher education may maintain an
unclaimed money fund and transfer to that fund a credit balance to
which this section applies. A deposit to the unclaimed money fund
does not affect the ownership of the amount deposited. The
institution shall:
(1) adopt procedures for owners to make and receive
payments of claims against the fund; and
(2) maintain a database that permits members of the
public to search for ownership of unclaimed funds.
(c) The institution shall use the fund to pay the claims of
persons establishing ownership of amounts transferred to the fund
and shall hold and account for the unclaimed money fund as
educational and general funds of the institution. If the fund
balance is insufficient to pay a valid claim, the institution shall
pay the claim from the institution's other educational and general
funds.
(d) Each fiscal year, after deducting funds sufficient to
pay anticipated expenses of and claims against the unclaimed money
fund, the institution shall use the balance of the fund as other
educational and general funds of the institution.
(e) In consultation with institutions of higher education,
the comptroller by rule may establish minimum requirements for
notice to owners of unclaimed money deposited in the unclaimed
money fund and for charges for that notice. The rules may not
provide stricter requirements than the comptroller applies for
amounts of less than $25 in the custody of the comptroller under
Chapter 74, Property Code.
(f) If an institution of higher education maintains an
unclaimed money fund under this section, Chapter 74, Property Code,
does not apply to a credit balance to which this section applies.
Sec. 51.012. PAYMENTS BY ELECTRONIC FUNDS TRANSFER OR
ELECTRONIC PAY CARD. An institution of higher education may make
any payment, including a payment of salary or wages, through
electronic funds transfer or by electronic pay card.
SECTION 1.03. Section 65.42, Education Code, is amended to
read as follows:
Sec. 65.42. DELINQUENT ACCOUNTS; VENUE. A suit by The
University of Texas System on its own behalf or on behalf of a
component institution of The University of Texas System to recover
a delinquent loan, account, or debt owed to The University of Texas
System or a component institution of The University of Texas System
must [may] be brought in Travis County.
SECTION 1.04. Section 1231.001, Government Code, is amended
by amending Subdivision (2) and adding Subdivision (3) to read as
follows:
(2) "State security" means:
(A) an obligation, including a bond, issued by:
(i) a state agency;
(ii) an entity that is expressly created by
statute and has statewide jurisdiction; or
(iii) an entity issuing the obligation on
behalf of this state or on behalf of an entity described by
Subparagraph (i) or (ii);
(B) an installment sale or lease-purchase
obligation that is issued by or on behalf of an entity described by
Paragraph (A) and that has:
(i) a stated term of more than five years;
or
(ii) an initial principal amount of more
than $250,000; or
(C) an obligation, including a bond, that is
issued under Chapter 53, Education Code, at the request of or for
the benefit of an institution of higher education [as defined by
Section 61.003, Education Code,] other than a public junior
college.
(3) "Institution of higher education" has the meaning
assigned by Section 61.003, Education Code.
SECTION 1.05. Section 1231.041, Government Code, is amended
to read as follows:
Sec. 1231.041. APPROVAL OF STATE SECURITY. (a) Except as
otherwise provided by this section, an [An] entity, including a
state agency, may not issue a state security unless:
(1) the board approves the issuance; or
(2) the security is exempted under law, including a
board rule adopted under Section 1231.022(2).
(b) A state security issued by an institution of higher
education, or issued at the request of or for the benefit of an
institution of higher education, is not subject to board approval
unless the general revenue of the state is pledged to the payment of
the security.
SECTION 1.06. Section 74.001, Property Code, is amended by
adding Subsection (c) to read as follows:
(c) This chapter does not apply to small credit balances
held by an institution of higher education in an unclaimed money
fund under Section 51.011, Education Code.
SECTION 1.07. Section 51.923, Education Code, is amended to
read as follows:
Sec. 51.923. QUALIFICATIONS OF CERTAIN BUSINESS ENTITIES TO
ENTER INTO CONTRACTS WITH AN INSTITUTION OF HIGHER EDUCATION.
(a) In this section:
(1) "Business entity" ["Corporation"] means any
entity recognized by law through which business is conducted,
including a sole proprietorship, partnership, firm, corporation,
limited liability company, holding company, joint stock company,
receivership, or trust [a corporation for profit organized under
the laws of this state or under laws other than the laws of this
state].
(2) "Governing board" has the meaning assigned by
Section 61.003 [of this code].
(3) "Institution of higher education" has the meaning
assigned by Section 61.003 [of this code].
(4) "Nonprofit corporation" means any organization
exempt from federal income tax under Section 501 of the Internal
Revenue Code of 1986 that does not distribute any part of its income
to any member, director, or officer.
(b) A nonprofit corporation is not disqualified from
entering into a contract or other transaction with an institution
of higher education even though one or more members of the governing
board of the institution of higher education also serves as a
member, [or] director, officer, or employee of the nonprofit
corporation.
(c) A business entity [corporation] is not disqualified
from entering into a contract or other transaction with an
institution of higher education even though one or more members of
the governing board of the institution of higher education have an
interest in the business entity, subject to Subsection (d) [also
serves as a stockholder or director of the corporation provided
that no member of the governing board owns or has a beneficial
interest in more than five percent of the corporation's outstanding
capital stock and further provided that the contract or transaction
is:
[(1) an affiliation, licensing, or sponsored research
agreement; or
[(2) awarded by competitive bidding or competitive
sealed proposals].
(d) An institution of higher education is not prohibited
from entering into a contract or other transaction with a business
entity in which a member of the governing board of the institution
of higher education has an interest if the interest is not a
substantial interest or, if the interest is a substantial interest,
the [described in this section if any] board member [having an
interest described in this section in the contract or transaction]
discloses that interest in a meeting held in compliance with
Chapter 551, Government Code, and refrains from voting on the
contract or transaction requiring board approval. Any such
contract or transaction requiring board approval must be approved
by an affirmative majority of the board members voting on the
contract or transaction.
(e) For purposes of this section, a member of a governing
board has a substantial interest in a business entity if:
(1) the member owns 10 percent or more of the voting
stock or shares of the business entity or owns either 10 percent or
more or $15,000 or more of the fair market value of the business
entity;
(2) funds received by the member from the business
entity exceed 10 percent of the member's gross income for the
previous year;
(3) the member is an officer of the business entity or
a member of the governing board of the business entity; or
(4) an individual related to the member in the first
degree by consanguinity or affinity, as determined under Chapter
573, Government Code, has an interest in the business entity as
described by Subdivision (1), (2), or (3).
(f) A violation of this section does not render an action of
the governing board voidable unless the contract or transaction
that was the subject of the action would not have been approved by
the governing board without the vote of the member who violated this
section.
SECTION 1.08. Section 51.9335, Education Code, is amended
by amending Subsections (d) and (f) and adding Subsections (g) and
(h) to read as follows:
(d) Subtitle D, Title 10, Government Code, and Subchapter B,
Chapter 2254, Government Code, do not apply to the acquisition of
goods and services under this section, except that an institution
of higher education must comply with any provision of those laws, or
a rule adopted under a provision of those laws, [To the extent of
any conflict, this section prevails over any other law, including
Chapters 2155, 2156, 2157, 2158, 2167, and 2170, Government Code,
except a law or rule] relating to contracting with historically
underutilized businesses or relating to the procurement of goods
and services from persons with disabilities. An institution of
higher education may, but is not required to, acquire goods or
services as provided by Subtitle D, Title 10 [Chapters 2155, 2156,
2157, 2158, 2167, and 2170], Government Code.
(f) This section does not apply to professional services as
defined by Section 2254.002, Government Code. Professional
services shall be procured in accordance with Subchapter A, Chapter
2254, Government Code.
(g) An institution of higher education may adopt rules and
procedures for the acquisition of goods or services.
(h) In any contract for the acquisition of goods and
services to which an institution of higher education is a party, a
provision required by applicable law to be included in the contract
is considered to be a part of the executed contract without regard
to:
(1) whether the provision appears on the face of the
contract; or
(2) whether the contract includes any provision to the
contrary.
SECTION 1.09. Subchapter Z, Chapter 51, Education Code, is
amended by adding Sections 51.9336 and 51.9337 to read as follows:
Sec. 51.9336. ELECTRONIC AND DIGITAL SIGNATURES. (a) An
institution of higher education or university system, as those
terms are defined by Section 61.003, shall determine whether, and
the extent to which, the institution or system will send and accept
electronic or digital signatures to and from other persons and
otherwise create, generate, communicate, store, process, use, and
rely on electronic or digital signatures. The institution or
system may adopt rules and procedures governing the use of
electronic or digital signatures.
(b) To the extent of any conflict, this section prevails
over Chapter 322, Business & Commerce Code, and rules and
guidelines adopted under that chapter.
Sec. 51.9337. INTERAGENCY CONTRACTS FOR INFORMATION
RESOURCE TECHNOLOGIES. (a) In this section, "institution of
higher education" and "university system" have the meanings
assigned by Section 61.003.
(b) Section 2054.119, Government Code, does not apply to an
interagency contract for information resources technologies
between two or more institutions of higher education or between an
institution of higher education or university system and one or
more state agencies, institutions of higher education, or
university systems.
SECTION 1.10. Section 51.966, Education Code, is amended by
amending Subsection (c) and adding Subsection (d) to read as
follows:
(c) Section 612.002(b), Government Code, does not apply to
an institution of higher education or university system purchasing
insurance under this section.
(d) In [As used in] this section, "governing board," [and]
"institution of higher education," and "university system" have the
meanings assigned by Section 61.003.
SECTION 1.11. Subchapter C, Chapter 791, Government Code,
is amended by adding Section 791.035 to read as follows:
Sec. 791.035. CONTRACTS WITH INSTITUTIONS OF HIGHER
EDUCATION OR UNIVERSITY SYSTEMS. (a) A local government and an
institution of higher education or university system may contract
with one another to perform any governmental functions and
services. If the terms of the contract provide for payment based on
cost recovery, any law otherwise requiring competitive procurement
does not apply to the functions and services covered by the
contract.
(b) In this section, "institution of higher education" and
"university system" have the meanings assigned by Section 61.003,
Education Code.
SECTION 1.12. Section 2054.008, Government Code, is amended
by adding Subsection (c) to read as follows:
(c) A university system or institution of higher education
must provide written notice to the Legislative Budget Board under
Subsection (b) only if the cost of the major information system
exceeds $1 million. In this subsection, "university system" has
the meaning assigned by Section 61.003, Education Code.
SECTION 1.13. Subsection (n), Section 2155.078, Government
Code, is amended to read as follows:
(n) This section does not apply to an institution [a medical
and dental unit] to which Section 51.9335, Education Code, applies
or to an institution to which Section 73.115, Education Code,
applies.
SECTION 1.14. Subchapter Z, Chapter 51, Education Code, is
amended by adding Section 51.9611 to read as follows:
Sec. 51.9611. PAYROLL DEDUCTIONS FOR EMPLOYEES OF
UNIVERSITY SYSTEM OR INSTITUTION OF HIGHER EDUCATION. (a) In this
section, "institution of higher education" and "university system"
have the meanings assigned by Section 61.003.
(b) The governing board of a university system, or of an
institution of higher education that is not a component institution
of a university system, may authorize employees of the system or
institution, as applicable, to elect a payroll deduction for any
purpose that the governing board determines serves a public purpose
and benefits employees. The board may adopt policies and
procedures governing payroll deductions under this section. A
payroll deduction under this section is in addition to payroll
deductions authorized by other law.
(c) A payroll deduction under this section must be at the
written request of the employee, and the request must state the
amount to be deducted and the entity to which the deducted amount is
to be transferred. A payroll deduction is in effect until revoked
in writing by the employee, but the policies and procedures of the
system or institution, as applicable, may provide for enrollment
periods.
(d) A university system or institution of higher education
may collect an administrative fee to cover the costs of making a
deduction.
SECTION 1.15. Subsection (a), Section 1601.004, Insurance
Code, is amended to read as follows:
(a) In this chapter, "dependent," with respect to an
individual eligible to participate in the uniform program under
Section 1601.101 or 1601.102, means the individual's:
(1) spouse;
(2) unmarried child younger than 25 years of age; and
(3) child of any age who the system determines lives
with or has the child's care provided by the individual on a regular
basis if the child is mentally retarded or physically incapacitated
to the extent that the child is dependent on the individual for care
or support, as determined by the system, and:
(A) if the child is at least 25 years of age, the
child's coverage under this chapter has not lapsed, and the child
was enrolled as a participant in the health benefits coverage under
the uniform program on the date of the child's 25th birthday; or
(B) if the child is a child of an individual
eligible to participate as an employee under Section 1601.101, at
the time of the individual's initial enrollment in health benefits
coverage under the uniform program the child is at least 25 years of
age and is enrolled in comparable coverage, as determined by the
system, under the individual's previous health benefits coverage.
SECTION 1.16. Subchapter C, Chapter 1601, Insurance Code,
is amended by adding Section 1601.111 to read as follows:
Sec. 1601.111. PROGRAMS PROMOTING DISEASE PREVENTION,
WELLNESS, AND HEALTH. A system may establish premium discounts,
surcharges, rebates, or a revision in otherwise applicable
copayments, coinsurance, or deductibles, or any combination of
those incentives, for an individual who participates in
system-approved programs promoting disease prevention, wellness,
and health.
SECTION 1.17. Subsection (d), Section 1601.201, Insurance
Code, is amended to read as follows:
(d) Subsection (c) does not prohibit a system from
contributing, from money not appropriated from the general revenue
fund, amounts in excess of the amount specified by that subsection
for:
(1) an individual employed by the system in a position
that as a condition of employment requires the individual to be
enrolled as a student in the system in graduate level courses; or
(2) an individual who is a tenured faculty member with
whom the system has entered into a phased retirement agreement
under which the individual will work less than 40 hours a week for a
specified period of time at the end of which the individual will
retire.
SECTION 1.18. Subchapter C, Chapter 61, Education Code, is
amended by adding Section 61.0573 to read as follows:
Sec. 61.0573. PROJECTS EXEMPT FROM BOARD APPROVAL. (a) In
this section, "project" means the acquisition of improved or
unimproved real property or the construction, repair, or
rehabilitation of a building or other facility.
(b) Board approval of a project at an institution of higher
education is not required under Section 61.0572 or 61.058 if the
institution notifies the board of the project and certifies to the
board that:
(1) the institution meets the current published board
standards applicable to the institution for space need, usage
efficiency, deferred maintenance, and critical deferred
maintenance or the board has approved the institution's plan to
correct any deficiencies in the institution's compliance with those
applicable standards;
(2) the project meets current published board
standards applicable to the project for cost, efficiency, and space
use;
(3) the project is identified on the institution's
campus master plan, as submitted to the board; and
(4) the institution has no deficiencies according to
the board's most recent facilities audit or the board has approved
the institution's plan to correct any such deficiencies.
(c) The board's staff shall promptly review a certification
submitted under Subsection (b) and notify the institution whether
the certification is sufficient and whether the information
certified is consistent with the records of the board. If the staff
review determines that the certification is sufficient and that the
information certified is consistent with the records of the board,
the project is considered approved by the board.
(d) This section does not apply to a project that is a new
branch campus or a new higher education center.
SECTION 1.19. Subsection (c), Section 2166.302, Government
Code, is amended to read as follows:
(c) Subsection (a) does not apply to a project constructed
by and for the Texas Department of Transportation or an institution
of higher education or university system. In this subsection,
"institution of higher education" and "university system" have the
meanings assigned by Section 61.003, Education Code.
SECTION 1.20. Subsection (c-1), Section 2166.403,
Government Code, is amended to read as follows:
(c-1) For a project constructed by and for a state
institution of higher education, the [governing body of the]
institution shall, during the planning phase of the proposed
construction for the project, verify [in an open meeting] the
economic feasibility of incorporating into the building's design
and proposed energy system alternative energy devices for space
heating and cooling functions, water heating functions, electrical
load functions, and interior lighting functions. The [governing
body of the] institution shall determine the economic feasibility
of each function listed in this subsection by comparing the
estimated cost of providing energy for the function, based on the
use of conventional design practices and energy systems, with the
estimated cost of providing energy for the function, based on the
use of alternative energy devices, during the economic life of the
building.
SECTION 1.21. Subsection (b), Section 2167.001, Government
Code, is amended to read as follows:
(b) This chapter does not apply to:
(1) radio antenna space;
(2) residential space for a Texas Department of Mental
Health and Mental Retardation program;
(3) residential space for a Texas Youth Commission
program;
(4) space to be used for less than one month for
meetings, conferences, conventions, seminars, displays,
examinations, auctions, or similar purposes;
(5) district office space for members of the
legislature;
(6) space used by the Texas Workforce Commission;
(7) residential property acquired by the Texas
Department of Housing and Community Affairs or the Texas State
Affordable Housing Corporation that is offered for sale or rental
to individuals and families of low or very low income or families of
moderate income;
(8) except as provided by Section 2167.007, [classroom
and instructional] space for a university system or [an]
institution of higher education; or
(9) space leased by the Texas Veterans Commission to
administer the veterans employment services program.
SECTION 1.22. Section 33.06, Tax Code, is amended by adding
Subsection (g) to read as follows:
(g) If the ownership interest of an individual entitled to a
deferral under this section is a life estate, a lien for the
deferred tax attaches to the estate of the life tenant, and not to
the remainder interest, if the owner of the remainder is an
institution of higher education that has not consented to the
deferral. In this subsection, "institution of higher education"
has the meaning assigned by Section 61.003, Education Code. This
subsection does not apply to a deferral for which the individual
entitled to the deferral filed the affidavit required by Subsection
(b) before September 1, 2011.
SECTION 1.23. Section 552.123, Government Code, is amended
to read as follows:
Sec. 552.123. EXCEPTION: NAME OF APPLICANT FOR CHIEF
EXECUTIVE OFFICER OF INSTITUTION OF HIGHER EDUCATION. The name of
an applicant for the position of chief executive officer of an
institution of higher education, and other information that would
tend to identify the applicant, is excepted from the requirements
of Section 552.021, except that the governing body of the
institution must give public notice of the name or names of the
finalists being considered for the position at least 21 days before
the date of the meeting at which final action or vote is to be taken
on the employment of the person.
SECTION 1.24. Subsection (b), Section 95.006, Health and
Safety Code, is amended to read as follows:
(b) The advisory committee is composed of:
(1) the following representatives appointed by the
executive director of the office:
(A) one representative of the office;
(B) one representative of the Texas Education
Agency;
(C) one representative of the Texas Pediatric
Society;
(D) one representative of the American Diabetes
Association;
(E) [one representative who is a member of the
board of regents of The University of Texas--Pan American;
[(F)] one school nurse representative from an
urban school located within the boundaries of a regional education
service center;
(F) [(G)] one parent or guardian of a child who
resides within the boundaries of a regional education service
center; and
(G) [(H)] one person with knowledge and
experience in health care in school settings; and
(2) the following representatives appointed by the
chairman of the council:
(A) one representative of the council;
(B) one representative of the Texas Medical
Association;
(C) one school district administrator
representative from a school district located within the boundaries
of a regional education service center;
(D) one school principal representative from a
school district located within the boundaries of a regional
education service center; and
(E) one school nurse representative from a rural
school located within the boundaries of a regional education
service center.
SECTION 1.25. Subsections (a) and (c), Section 2.03,
Chapter 670, Acts of the 72nd Legislature, Regular Session, 1991
(Article 4477-7j, Vernon's Texas Civil Statutes), are amended to
read as follows:
(a) On or after the effective date of this Act, the
Commissioners Court of Gaines County shall appoint three persons,
the governing body of the city of Seminole shall appoint two
persons, and the governing body of the city of Seagraves shall
appoint two persons to serve as initial directors of the district.
The four persons appointed by the governing bodies of the cities of
Seminole and Seagraves shall represent the municipalities within
the county, and the three persons appointed by the Commissioners
Court of Gaines County shall represent the unincorporated areas of
the county. [In addition, the board of regents of The University of
Texas System shall appoint one person to serve as an ex-officio,
nonvoting director of the district.]
(c) The Commissioners Court of Gaines County and the
governing bodies of the cities of Seminole and Seagraves shall each
appoint one initial director to serve a term expiring on May 1 of
the first year after the year in which the original appointment is
made. In addition, the Commissioners Court of Gaines County shall
appoint two initial directors and the governing bodies of the
cities of Seminole and Seagraves shall each appoint one initial
director to serve terms expiring on May 1 of the second year after
the year in which the original appointment is made. [The initial
ex-officio member serves a term expiring on May 1 of the second year
after the year in which the original appointment is made.]
Successor directors serve two-year terms.
SECTION 1.26. Subsection (a), Section 3.01, Chapter 670,
Acts of the 72nd Legislature, Regular Session, 1991 (Article
4477-7j, Vernon's Texas Civil Statutes), is amended to read as
follows:
(a) The district is governed by a board of directors
composed of seven voting members [and one ex-officio nonvoting
member] who are appointed as provided by this Act. However, the
district shall change to a system of electing the voting directors
if:
(1) the Commissioners Court of Gaines County and the
governing bodies of the cities of Seminole and Seagraves each pass a
resolution calling for the election of the directors; or
(2) the board receives a petition signed by at least
150 registered voters of Gaines County calling for the election of
the directors.
SECTION 1.27. Subsection (d), Section 51.403, Education
Code, is amended to read as follows:
(d) For purposes of this subsection, "small classes" [Each
institution shall file with its governing board and the
coordinating board a small class report, excluding individual
instruction courses, indicating department, course number, title
of course, and the name of the instructor. "Small classes," for the
purpose of this report,] are undergraduate-level courses with less
than 10 registrations, and graduate-level courses with less than 5
registrations. No small classes shall be offered in any
institution except as authorized by the appropriate governing
board, within the guidelines established by the Coordinating Board.
SECTION 1.28. Subchapter H, Chapter 51, Education Code, is
amended by adding Section 51.406 to read as follows:
Sec. 51.406. EXPIRATION OF CERTAIN REPORTING REQUIREMENTS
APPLICABLE TO INSTITUTIONS OF HIGHER EDUCATION AND UNIVERSITY
SYSTEMS. (a) In this section, "university system" has the meaning
assigned by Section 61.003.
(b) To the extent that any of the following laws require
reporting by a university system or an institution of higher
education, a university system or institution of higher education
is not required to make the report on or after September 1, 2013,
unless legislation enacted by the 83rd Legislature that becomes law
expressly requires the institution or system to make the report:
(1) Section 7.109;
(2) Section 33.083;
(3) Section 51.0051;
(4) Section 59.07;
(5) Section 130.086;
(6) Section 325.007, Government Code;
(7) Section 669.003, Government Code;
(8) Section 2005.007, Government Code;
(9) Section 2052.103, Government Code;
(10) Section 2054.097, Government Code;
(11) Section 2101.011, Government Code;
(12) Section 2102.009, Government Code;
(13) Chapter 2114, Government Code; and
(14) Section 2205.041, Government Code.
(c) A rule or policy of a state agency, including the Texas
Higher Education Coordinating Board, in effect on June 1, 2011,
that requires reporting by a university system or an institution of
higher education has no effect on or after September 1, 2013, unless
the rule or policy is affirmatively and formally readopted before
that date by formal administrative rule published in the Texas
Register and adopted in compliance with Chapter 2001, Government
Code. This subsection does not apply to:
(1) a rule or policy for which the authorizing statute
is listed in Subsection (b);
(2) a rule or policy for which the authorizing statute
is repealed on or before September 1, 2013, by legislation enacted
by the legislature that becomes law; or
(3) a report required under any of the following laws:
(A) Section 51.005;
(B) Section 51.3062;
(C) Section 51.402;
(D) Section 56.039;
(E) Section 61.051(k);
(F) Section 61.059; or
(G) Section 62.095(b).
SECTION 1.29. Section 51.914, Education Code, is amended to
read as follows:
Sec. 51.914. PROTECTION OF CERTAIN INFORMATION. (a) In
order to protect the actual or potential value, the following
information is [shall be] confidential and is [shall] not [be]
subject to disclosure under Chapter 552, Government Code, or
otherwise:
(1) all information relating to a product, device, or
process, the application or use of such a product, device, or
process, and all technological and scientific information
(including computer programs) developed in whole or in part at a
state institution of higher education, regardless of whether
patentable or capable of being registered under copyright or
trademark laws, that have a potential for being sold, traded, or
licensed for a fee;
(2) any information relating to a product, device, or
process, the application or use of such product, device, or
process, and any technological and scientific information
(including computer programs) that is the proprietary information
of a person, partnership, corporation, or federal agency that has
been disclosed to an institution of higher education solely for the
purposes of a written research contract or grant that contains a
provision prohibiting the institution of higher education from
disclosing such proprietary information to third persons or
parties; or
(3) the plans, specifications, blueprints, and
designs, including related proprietary information, of a
scientific research and development facility that is jointly
financed by the federal government and a local government or state
agency, including an institution of higher education, if the
facility is designed and built for the purposes of promoting
scientific research and development and increasing the economic
development and diversification of this state.
(b) Information maintained by or for an institution of
higher education that would reveal the institution's plans or
negotiations for commercialization or research, or that consists of
unpublished research results or data, is not subject to Chapter
552, Government Code, unless the information has been published, is
patented, or is otherwise subject to an executed license, sponsored
research agreement, or research contract or grant. In this
subsection, "institution of higher education" has the meaning
assigned by Section 61.003.
SECTION 1.30. Subsection (h), Section 61.051, Education
Code, is amended to read as follows:
(h) The board shall make continuing studies of the needs of
the state for research and designate the institutions of higher
education to perform research as needed. The board shall also
maintain an inventory of all institutional and programmatic
research activities being conducted by the various institutions,
whether state-financed or not. Once a year, on dates prescribed by
the board, each institution of higher education shall report to the
board all research conducted at that institution during the last
preceding year. The submission by an institution of the
institution's response to the National Science Foundation's annual
Higher Education Research and Development Survey satisfies the
requirements of this section. All reports required by this
subsection shall be made subject to the limitations imposed by
security regulations governing defense contracts for research.
SECTION 1.31. Section 61.0582, Education Code, is amended
by adding Subsection (f) to read as follows:
(f) This section does not apply to a university system that
maintains an ongoing system-wide capital improvement program
approved by the system's board of regents.
SECTION 1.32. Section 130.152, Education Code, is amended
to read as follows:
Sec. 130.152. CRITERIA FOR PROGRAMS FOR THE DISADVANTAGED.
A junior college may develop programs to serve persons from
backgrounds of economic or educational deprivation by submission of
a plan based on the following criteria to the Texas Higher Education
Coordinating Board[, Texas College and University System]:
(1) an instructional program that accommodates the
different learning rates of students and compensates for prior
economic and educational deprivation;
(2) an unrestricted admissions policy allowing the
enrollment of any person 18 years of age or older with a high school
diploma or its equivalent who can reasonably be expected to benefit
from instruction;
(3) the assurance that all students, regardless of
their differing programs of study, will be considered, known, and
recognized as full members of the student body, provided that the
administrative officers of a junior college may deny admission to a
prospective student or attendance of an enrolled student if, in
their judgment, the person [he] would not be competent to benefit
from a program of the college, or would by the person's [his]
presence or conduct create a disruptive atmosphere within the
college not consistent with the statutory purposes of the college;
(4) [the submission of a plan for a financial aid
program which removes to the maximum extent possible the financial
barriers to the educational aspirations of the citizens of this
state;
[(5) an annual evaluation report based on scientific
methods and utilizing control groups wherever possible to be
submitted to the coordinating board at the end of each school year,
covering each remedial-compensatory course or program offered at
the college;
[(6)] any other criteria consistent with the
provisions of this subchapter specified by the coordinating board;
and
(5) [(7)] a junior college must obtain approval of the
coordinating board [Coordinating Board, Texas College and
University System,] before offering any courses under the
provisions of this Act.
SECTION 1.33. Section 401.042, Government Code, is amended
by adding Subsection (c) to read as follows:
(c) In consultation with public institutions of higher
education, the offices of the governor and the Legislative Budget
Board shall review the forms for higher education legislative
appropriations requests to identify opportunities to improve
efficiency, provide better transparency of funding sources,
eliminate unnecessary or duplicative requirements, and otherwise
reduce the cost or difficulty of providing information related to
appropriations requests.
SECTION 1.34. Subchapter L, Chapter 403, Government Code,
is amended by adding Section 403.2715 to read as follows:
Sec. 403.2715. UNIVERSITY SYSTEMS AND INSTITUTIONS OF
HIGHER EDUCATION. (a) In this section, "institution of higher
education" and "university system" have the meanings assigned by
Section 61.003, Education Code.
(b) Except as provided by this section, this subchapter does
not apply to a university system or institution of higher
education.
(c) A university system or institution of higher education
shall account for all personal property as defined by the
comptroller under Section 403.272. At all times, the property
records of a university system or institution of higher education
must accurately reflect the personal property possessed by the
system or institution.
(d) The chief executive officer of each university system or
institution of higher education shall designate one or more
property managers. The property manager shall maintain the records
required and be the custodian of all personal property possessed by
the system or institution.
(e) Sections 402.273(h), 403.275, and 403.278 apply to a
university system or institution of higher education.
SECTION 1.35. Subsection (d), Section 2101.0115,
Government Code, is amended by adding Subdivision (4) to read as
follows:
(4) "Institution of higher education" and "university
system" have the meanings assigned by Section 61.003, Education
Code.
SECTION 1.36. Section 2101.0115, Government Code, is
amended by adding Subsection (e) to read as follows:
(e) This section does not apply to an institution of higher
education or university system.
SECTION 1.37. Subsection (c), Section 2254.028, Government
Code, is amended to read as follows:
(c) Subsection (a) [(a)(3)] does not apply to a major
consulting services contract to be entered into by an institution
of higher education other than a public junior college if the
institution includes in the invitation published under Section
2254.029 a finding by the chief executive officer of the
institution that the consulting services are necessary and an
explanation of that finding.
SECTION 1.38. Section 2254.0301, Government Code, is
amended to read as follows:
Sec. 2254.0301. CONTRACT NOTIFICATION. (a) A state agency
shall provide written notice to the Legislative Budget Board of a
contract for consulting services if the amount of the contract,
including an amendment, modification, renewal, or extension of the
contract, exceeds $14,000. The notice must be on a form prescribed
by the Legislative Budget Board and filed not later than the 10th
day after the date the entity enters into the contract.
(b) This section does not apply to a university system or
institution of higher education. In this subsection, "institution
of higher education" and "university system" have the meanings
assigned by Section 61.003, Education Code.
SECTION 1.39. Subsection (f), Section 388.005, Health and
Safety Code, is amended to read as follows:
(f) This section does not apply to a state agency or an
institution of higher education that the State Energy Conservation
Office determines [that], before September 1, 2007, adopted a plan
for conserving energy under which the agency or institution
established a percentage goal for reducing the consumption of
electricity. The exemption provided by this section applies only
while the agency or institution has an energy conservation plan in
effect and only if the agency or institution submits reports on the
conservation plan each year [calendar quarter] to the governor, the
Legislative Budget Board, and the State Energy Conservation Office.
SECTION 1.40. Section 412.053, Labor Code, is amended by
adding Subsection (c) to read as follows:
(c) This section does not apply to an institution of higher
education or university system. In this subsection, "institution
of higher education" and "university system" have the meanings
assigned by Section 61.003, Education Code.
SECTION 1.41. Subsection (d), Section 31.153, Natural
Resources Code, is amended to read as follows:
(d) Each state agency, other than an institution of higher
education, annually at the time set by the division, shall furnish
the Texas Historical Commission with a photograph and information
that specifies and identifies the age of each building:
(1) that was acquired by the agency after the date of
the preceding annual submission and that is at least 45 years old on
the date of the current submission; or
(2) that is possessed by the agency and has become 45
years old since the date the information was previously submitted.
SECTION 1.42. (a) The following laws are repealed
effective September 1, 2011:
(1) Section 51.216, Education Code;
(2) Subsections (b) and (c), Section 51.403, Education
Code;
(3) Section 51.4033, Education Code;
(4) Section 61.0815, Education Code;
(5) Section 61.086, Education Code;
(6) Subsection (c), Section 61.087, Education Code;
(7) Section 62.098, Education Code;
(8) Section 1434.054, Government Code;
(9) Section 2107.005, Government Code;
(10) Subsection (c), Section 412.042, Labor Code; and
(11) Subsection (c), Section 3.01, Chapter 670, Acts
of the 72nd Legislature, Regular Session, 1991 (Article 4477-7j,
Vernon's Texas Civil Statutes).
(b) The following provisions of the Education Code are
repealed effective September 1, 2013:
(1) Section 51.859;
(2) Subsection (e), Section 51.917;
(3) Subsection (d), Section 51.968;
(4) Subsection (h), Section 54.203;
(5) Subsection (c), Section 56.034;
(6) Subsection (j), Section 56.079;
(7) Subsection (c), Section 61.066;
(8) Subsection (d), Section 63.003;
(9) Section 63.004;
(10) Section 63.103;
(11) Subsection (m), Section 86.52;
(12) Section 88.210;
(13) Section 106.54;
(14) Section 142.005;
(15) Section 143.006;
(16) Section 147.005;
(17) Section 148.005; and
(18) Section 153.008.
SECTION 1.43. (a) This section governs a conflict between
this article and any other Act of the 82nd Legislature, Regular
Session, 2011, without regard to the relative dates of enactment.
(b) If this article and any other Act repeal the same
statute, the earlier effective date of repeal controls.
(c) If this article amends a statute that any other Act
repeals, the repeal controls.
SECTION 1.44. Section 51.011, Education Code, as added by
this article, applies to credit balances held by a public
institution of higher education on or after the effective date of
this article.
SECTION 1.45. 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 immediate
effect, this article takes effect September 1, 2011.
ARTICLE 2. FISCAL MATTERS CONCERNING ADVANCED PLACEMENT
SECTION 2.01. 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.
ARTICLE 3. FISCAL MATTERS CONCERNING EARLY HIGH SCHOOL GRADUATION
SECTION 3.01. Subchapter K, Chapter 56, Education Code, is
amended by adding Section 56.2012 to read as follows:
Sec. 56.2012. EXPIRATION OF SUBCHAPTER; ELIGIBILITY
CLOSED. (a) This subchapter expires September 1, 2017.
(b) Notwithstanding Section 56.203, a person may not
receive an award under this subchapter if the person graduates from
high school on or after September 1, 2011.
SECTION 3.02. Subsection (b), Section 54.213, Education
Code, is amended to read as follows:
(b) [Savings to the foundation school fund that occur as a
result of the Early High School Graduation Scholarship program
created in Subchapter K, Chapter 56, and that are not required for
the funding of state credits for tuition and mandatory fees under
Section 56.204 or school district credits under Section 56.2075
shall be used first to provide tuition exemptions under Section
54.212. Any of those savings remaining after providing tuition
exemptions under Section 54.212 shall be used to provide tuition
exemptions under Section 54.214.] The Texas Education Agency shall
[also] accept and make available to provide tuition exemptions
under Section 54.214 gifts, grants, and donations made to the
agency for that purpose. The commissioner of education shall
transfer those funds to the Texas Higher Education Coordinating
Board to distribute to institutions of higher education that
provide exemptions under that section [Payment of funds under this
subsection shall be made in the manner provided by Section 56.207
for state credits under Subchapter K, Chapter 56].
SECTION 3.03. Section 56.210, Education Code, is repealed.
ARTICLE 4. FISCAL MATTERS CONCERNING TUITION EXEMPTIONS
SECTION 4.01. 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 4.02. 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.
ARTICLE 5. FISCAL MATTERS CONCERNING CERTAIN DISTRIBUTIONS TO
INSTITUTIONS OF HIGHER EDUCATION
SECTION 5.01. Subchapter A, Chapter 63, Education Code, is
amended by adding Section 63.0035 to read as follows:
Sec. 63.0035. PARTIAL LIQUIDATION OF INSTITUTION'S SHARE;
DISTRIBUTION OF FUND AFTER LIQUIDATION. (a) Subject to
appropriation of the appropriate amounts, the board of regents of
The University of Texas System shall transfer to each institution
that is entitled in a state fiscal year to receive a distribution
from the permanent fund established under this subchapter a
one-time liquidation distribution for the state fiscal year ending
August 31, 2012, and, for that fiscal year and each subsequent
fiscal year, a reduced annual distribution as provided by this
section.
(b) The board of regents of The University of Texas System,
not later than November 1, 2011, shall:
(1) calculate the amount of each liquidation
distribution in accordance with this section; and
(2) provide to all institutions entitled to receive a
distribution from the permanent fund established under this
subchapter written notice specifying:
(A) the amount of the liquidation distribution to
be made to each institution in the state fiscal year ending August
31, 2012; and
(B) the amounts of the other distributions to be
made in that fiscal year to each institution under this section from
the per capita account and the formula account described by
Subsection (c).
(c) As soon as practicable after the beginning of the state
fiscal year ending August 31, 2012, the permanent fund shall be
segregated into two accounts, the per capita account and the
formula account. Notwithstanding any other law, distributions in
that fiscal year and in subsequent fiscal years shall be made in
accordance with this section and not in accordance with Section
63.003(a). The amount segregated into the per capita account is
equal to 70 percent of the total value of the fund at the end of the
preceding state fiscal year. The formula account is composed of the
remaining 30 percent of that total value at the end of that
preceding fiscal year.
(d) A liquidation distribution is an amount equal to
one-third of the institution's fractional share of the value of the
per capita account. An institution's fractional share of the per
capita account is determined by multiplying the amount segregated
into the per capita account by a fraction, the numerator of which is
one and the denominator of which is the number of institutions that
are entitled to receive a distribution from the permanent fund
established under this subchapter.
(e) In the state fiscal year ending August 31, 2012, and in
each subsequent fiscal year, the annual amount appropriated for
distribution from the investment of the per capita account shall be
distributed in equal shares to each institution.
(e-1) Subsection (e) does not apply to the amounts
distributed as liquidation distributions in the state fiscal year
ending August 31, 2012.
(f) In each state fiscal year in which distributions are
made from the per capita account under Subsection (e), the amount
appropriated for distribution from the investment of the formula
account shall be distributed in equal portions with respect to each
of the following categories, with each institution receiving a
share in each category proportionate to the amount that the
institution spent in that category in the preceding state fiscal
biennium as determined by the institution's annual financial
report, compared to the total spending of all institutions listed
in Section 63.002(c) in that category in the preceding biennium:
(1) instructional expenditures;
(2) research expenditures; and
(3) unsponsored charity care.
(g) Except as otherwise provided by this section:
(1) Section 63.003(b) applies to amounts appropriated
for distribution under Subsections (e) and (f) of this section; and
(2) Sections 63.003(c) and (d) apply to amounts
appropriated for distribution under Subsection (f) of this section.
(h) The comptroller in consultation with the board of
regents of The University of Texas System shall establish
procedures to implement this section. A liquidation distribution
shall be made in accordance with those procedures and in
consultation with the institutions receiving the liquidation
distribution.
(i) Any direct costs associated with liquidation
distributions, including discounts on investment dispositions and
related expenses realized by the permanent fund, shall be deducted
in equal portions from the amounts of the liquidation
distributions. The procedures established under Subsection (h)
must provide for the minimization of any costs associated with
making the liquidation distributions considering the liquidity of
the investment assets of the fund.
(j) Notwithstanding other provisions of this subchapter,
the amount distributed to an institution under this section as a
liquidation distribution is under the exclusive control of the
governing board of the institution and may be used by the
institution in any manner for any lawful purpose. The comptroller
shall establish procedures to ensure that a liquidation
distribution to Baylor College of Medicine is used for public
purposes consistent with a contract in effect under Section 61.092.
SECTION 5.02. Subsection (d), Section 63.003, Education
Code, is amended to read as follows:
(d) For the purposes of this section or Section 63.0035,
Baylor College of Medicine may receive funds [under Subsection
(a)(2)] only if the institution provides the comptroller with an
independently audited schedule of information that substantially
complies with the reporting requirements issued by the comptroller
for other eligible institutions [under Subsection (a)(2)].
Information under this subsection must be supplied not later than
the time other eligible institutions are required to submit similar
information.
ARTICLE 6. FISCAL MATTERS CONCERNING DUAL HIGH SCHOOL AND JUNIOR
COLLEGE CREDIT
SECTION 6.01. 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 6.02. This article applies beginning with funding
for the 2011 fall semester.
ARTICLE 7. FEE ON NONSETTLING MANUFACTURERS OF TOBACCO PRODUCTS
SECTION 7.01. (a) Chapter 161, Health and Safety Code, is
amended by adding Subchapter V to read as follows:
SUBCHAPTER V. FEE ON CIGARETTES AND CIGARETTE TOBACCO PRODUCTS
MANUFACTURED BY CERTAIN COMPANIES
Sec. 161.601. PURPOSE. The purpose of this subchapter is
to:
(1) recover health care costs to the state imposed by
nonsettling manufacturers;
(2) prevent nonsettling manufacturers from
undermining this state's policy of reducing underage smoking by
offering cigarettes and cigarette tobacco products at prices that
are substantially below the prices of cigarettes and cigarette
tobacco products of other manufacturers;
(3) protect the tobacco settlement agreement and
funding, which has been reduced because of the growth of sales of
nonsettling manufacturer cigarettes and cigarette tobacco
products, for programs that are funded wholly or partly by payments
to this state under the tobacco settlement agreement and recoup for
this state settlement payment revenue lost because of sales of
nonsettling manufacturer cigarettes and cigarette tobacco
products; and
(4) provide funding for certain health-related
institutions of higher education for any purpose the legislature
determines.
Sec. 161.602. DEFINITIONS. In this subchapter:
(1) "Brand family" means each style of cigarettes or
cigarette tobacco products sold under the same trademark. The term
includes any style of cigarettes or cigarette tobacco products that
have a brand name, trademark, logo, symbol, motto, selling message,
recognizable pattern of colors, or other indication of product
identification that is identical to, similar to, or identifiable
with a previously known brand of cigarettes or cigarette tobacco
products.
(2) "Cigarette" means any product that contains
nicotine and is intended to be burned or heated under ordinary
conditions of use. The term includes:
(A) a roll of tobacco wrapped in paper or another
substance that does not contain tobacco;
(B) tobacco, in any form, that is functional in a
product that, because of the product's appearance, the type of
tobacco used in the filler, or the product's packaging and
labeling, is likely to be offered to or purchased by a consumer as a
cigarette; or
(C) a roll of tobacco wrapped in any substance
containing tobacco that, because of the product's appearance, the
type of tobacco used in the filler, or the product's packaging and
labeling, is likely to be offered to or purchased by a consumer as a
cigarette.
(3) "Cigarette tobacco product" means roll-your-own
tobacco or tobacco that, because of the tobacco's appearance, type,
packaging, or labeling, is suitable for use in making cigarettes
and is likely to be offered to or purchased by a consumer for that
purpose.
(4) "Distributor" has the meaning assigned by Section
154.001 or 155.001, Tax Code, as appropriate.
(5) "Manufacturer" means a person that manufactures,
fabricates, or assembles cigarettes for sale or distribution. For
purposes of this subchapter, the term includes a person that is the
first importer into the United States of cigarettes and cigarette
tobacco products manufactured, fabricated, or assembled outside
the United States.
(6) "Nonsettling manufacturer" means a manufacturer
of cigarettes that did not sign the tobacco settlement agreement.
(7) "Nonsettling manufacturer cigarettes" means
cigarettes manufactured, fabricated, assembled, or imported by a
nonsettling manufacturer.
(8) "Nonsettling manufacturer cigarette tobacco
products" means cigarette tobacco products manufactured,
fabricated, assembled, or imported by a nonsettling manufacturer.
(9) "Tobacco settlement agreement" means the
Comprehensive Settlement Agreement and Release filed on January 16,
1998, in the United States District Court, Eastern District of
Texas, in the case styled The State of Texas v. The American Tobacco
Co., et al., No. 5-96CV-91, and all subsequent amendments.
Sec. 161.603. FEE IMPOSED. (a) A fee is imposed on the
sale, use, consumption, or distribution in this state of:
(1) nonsettling manufacturer cigarettes if a stamp is
required to be affixed to a package of those cigarettes under
Chapter 154, Tax Code;
(2) nonsettling manufacturer cigarettes that are
sold, purchased, or distributed in this state but that are not
required to have a stamp affixed to a package of those cigarettes
under Chapter 154, Tax Code;
(3) nonsettling manufacturer cigarette tobacco
products that are subject to the tax imposed by Section 155.0211,
Tax Code; and
(4) nonsettling manufacturer cigarette tobacco
products that are sold, purchased, or distributed in this state but
that are not subject to the tax imposed by Section 155.0211, Tax
Code.
(b) The fee imposed by this section does not apply to
cigarettes or cigarette tobacco products that are:
(1) included in computing payments due to be made by a
settling manufacturer under the tobacco settlement agreement; or
(2) sold, purchased, or otherwise distributed in this
state for retail sale outside this state.
(c) The fee imposed by this subchapter is in addition to any
other privilege, license, fee, or tax required or imposed by state
law.
(d) Except as otherwise provided by this subchapter, the fee
imposed by this subchapter is imposed, collected, paid,
administered, and enforced in the same manner, taking into account
that the fee is imposed on nonsettling manufacturers, as the taxes
imposed by Chapters 154 and 155, Tax Code, as appropriate.
Sec. 161.604. RATE OF FEE. (a) Except as provided by
Subsection (b), the fee is imposed at the rate of 2.15 cents for:
(1) each nonsettling manufacturer cigarette; and
(2) each 0.09 ounce of nonsettling manufacturer
cigarette tobacco product.
(b) On January 1 of each year, the comptroller shall
increase the rate of the tax prescribed by Subsection (a) by the
greater of:
(1) three percent; or
(2) the percentage increase in the most recent annual
revised Consumer Price Index for All Urban Consumers, as published
by the Federal Bureau of Labor Statistics of the United States
Department of Labor.
Sec. 161.605. NONSETTLING MANUFACTURER CIGARETTES AND
CIGARETTE TOBACCO PRODUCTS FOR RETAIL SALE OUTSIDE THIS STATE.
(a) Except as provided by Subsection (b), a person may not
transport or cause to be transported from this state nonsettling
manufacturer cigarettes or cigarette tobacco products for retail
sale in another state unless:
(1) the packages of the cigarettes or cigarette
tobacco products bear the tax stamps of the state in which the
cigarettes or cigarette tobacco products are to be sold and the
stamps are affixed in accordance with the laws of that state; or
(2) if the state does not require a tax stamp, all
excise taxes imposed on the cigarettes or cigarette tobacco
products by the state in which they are to be sold have been paid in
accordance with the laws of that state.
(b) A person is not required to affix a tax stamp of another
state or pay the excise tax of another state before transporting the
nonsettling manufacturer cigarettes or cigarette tobacco products
out of this state if:
(1) the state the cigarettes or cigarette tobacco
products are being transported to prohibits that action; and
(2) the cigarettes or cigarette tobacco products are
being sold to a wholesaler licensed by that state.
Sec. 161.606. DISTRIBUTOR'S REPORT. (a) A distributor
required to file a report under Section 154.210 or 155.111, Tax
Code, shall, in addition to the information required by those
sections, include in that required report, as appropriate:
(1) the number and denominations of stamps affixed to
individual packages of nonsettling manufacturer cigarettes during
the preceding month;
(2) the amount of nonsettling manufacturer cigarette
tobacco products subject to the tax imposed by Section 155.0211,
Tax Code, during the preceding month;
(3) the number of individual packages of nonsettling
manufacturer cigarettes and the amount of nonsettling manufacturer
cigarette tobacco products not subject to the tax imposed by
Chapter 154, Tax Code, or Section 155.0211, Tax Code, sold or
purchased in this state or otherwise distributed in this state for
sale in the United States;
(4) the number of individual packages of nonsettling
manufacturer cigarettes and the amount of nonsettling manufacturer
cigarette tobacco products transported or caused to be transported
outside this state during the preceding month;
(5) if Subdivision (4) applies, the name and address
of the persons receiving the cigarettes or cigarette tobacco
products outside this state; and
(6) any other information the comptroller considers
necessary or appropriate to determine the amount of the fee imposed
by this subchapter or to enforce this subchapter.
(b) The information required by Subsection (a) must be
itemized for each place of business and by manufacturer and brand
family.
(c) The requirement to report information under this
section shall be enforced in the same manner as the requirement to
deliver to or file with the comptroller a report required under
Section 154.210 or 155.111, Tax Code, as appropriate.
(d) Information obtained from a report provided under
Subsection (a) regarding cigarettes or cigarette tobacco products
sold, purchased, or otherwise distributed by a nonsettling
manufacturer may be disclosed by the comptroller to that
manufacturer or to the authorized representative of the
manufacturer.
Sec. 161.607. NOTICE AND PAYMENT OF FEE. (a) Each month,
not later than the 20th day after the date the comptroller receives
the information required by Section 161.606, the comptroller shall:
(1) compute the amount of the fee imposed by this
subchapter that each nonsettling manufacturer owes for that
reporting period based on that information and any other
information available to the comptroller; and
(2) mail to each nonsettling manufacturer a notice of
the amount of fees the manufacturer owes.
(b) Not later than the 15th day of the month after the month
in which the comptroller mails a nonsettling manufacturer a notice
under Subsection (a), the nonsettling manufacturer shall send to
the comptroller the amount of the fee due according to the notice.
Sec. 161.608. DIRECTORY OF COMPLYING MANUFACTURERS.
(a) The comptroller shall develop, maintain, and publish on the
comptroller's Internet website a directory listing of all
nonsettling manufacturers that have complied with this subchapter.
(b) The comptroller shall provide the list described by
Subsection (a) to any person on request.
Sec. 161.609. PREPAYMENT BEFORE OFFERING NONSETTLING
MANUFACTURER CIGARETTES OR CIGARETTE TOBACCO PRODUCTS FOR SALE OR
DISTRIBUTION IN THIS STATE. (a) If cigarettes or cigarette
tobacco products of a nonsettling manufacturer are not offered for
sale or distribution in this state on September 1, 2011, the
nonsettling manufacturer may not offer those cigarettes or
cigarette tobacco products for sale or distribution in this state
after that date unless the manufacturer first prepays the fee
imposed by this subchapter for sales of cigarettes and cigarette
tobacco products that will occur in the first calendar month in
which they are sold or distributed in this state.
(b) The amount a nonsettling manufacturer is required to
prepay under this section is equal to the greater of:
(1) the rate prescribed by Section 161.604 in effect
on that date multiplied by:
(A) the number of cigarettes the comptroller
reasonably projects that the nonsettling manufacturer will sell or
distribute in this state during that calendar month; and
(B) each 0.09 ounce of nonsettling manufacturer
cigarette tobacco products the comptroller reasonably projects
that the nonsettling manufacturer will sell or distribute in this
state during that calendar month; or
(2) $50,000.
(c) The fee imposed by this section does not apply to
cigarettes or cigarette tobacco products that are:
(1) included in computing payments due to be made by a
settling manufacturer under the tobacco settlement agreement; or
(2) sold, purchased, or otherwise distributed in this
state for retail sale outside this state.
(d) The comptroller may require a nonsettling manufacturer
to provide any information reasonably necessary to determine the
prepayment amount.
(e) The comptroller shall establish procedures to:
(1) reimburse a nonsettling manufacturer if the actual
sales or distributions in the first calendar month are less than the
projected sales or distributions; and
(2) require additional payments if the actual sales or
distributions in the first calendar month are greater than the
projected sales or distributions.
(f) A nonsettling manufacturer shall pay the fee imposed by
this subchapter in the manner provided by Section 161.607 beginning
in the second calendar month in which the manufacturer offers the
cigarettes or cigarette tobacco products for sale or distribution
in this state.
Sec. 161.610. REPORT TO ATTORNEY GENERAL BEFORE OFFERING
NONSETTLING MANUFACTURER CIGARETTES OR CIGARETTE TOBACCO PRODUCTS
FOR SALE OR DISTRIBUTION IN THIS STATE. (a) In addition to
prepaying the fee required by Section 161.609, a nonsettling
manufacturer described by Section 161.609(a) shall, before the date
the cigarettes or cigarette tobacco products are offered for sale
or distribution in this state, provide to the attorney general on a
form prescribed by the attorney general:
(1) the nonsettling manufacturer's complete name,
address, and telephone number;
(2) the date that the nonsettling manufacturer will
begin offering cigarettes or cigarette tobacco products for sale or
distribution in this state;
(3) the names of the brand families of the cigarettes
or cigarette tobacco products that the nonsettling manufacturer
will offer for sale or distribution in this state;
(4) a statement that the nonsettling manufacturer
intends to comply with this subchapter; and
(5) the name, address, telephone number, and signature
of an officer of the nonsettling manufacturer attesting to all of
the included information.
(b) The attorney general shall make the information
provided under this section available to the comptroller.
Sec. 161.611. PENALTIES FOR NONCOMPLIANCE.
(a) Cigarettes and cigarette tobacco products of a nonsettling
manufacturer that has not complied with this subchapter, including
full payment of the fee imposed by this subchapter, shall be treated
as cigarettes or tobacco products for which the tax assessed by
Chapter 154 or 155, Tax Code, as appropriate, has not been paid, and
the manufacturer is subject to all penalties imposed by those
chapters for violations of those chapters.
(b) The comptroller shall provide to a nonsettling
manufacturer, each distributor authorized to affix stamps under
Chapter 154, Tax Code, and the attorney general a notice of the
manufacturer's noncompliance with this subchapter if the
manufacturer:
(1) does not pay in full the fee imposed by this
subchapter; or
(2) is not included on the directory required by
Section 161.608.
(c) If a nonsettling manufacturer does not appear on the
directory required by Section 161.608, or on receipt of the notice
of a nonsettling manufacturer's noncompliance, a distributor may
not:
(1) pay the tax imposed by Chapter 154 or 155, Tax
Code, as appropriate;
(2) affix to a package of cigarettes the stamp
required by Section 154.041, Tax Code; or
(3) otherwise purchase, sell, or distribute
cigarettes manufactured by the nonsettling manufacturer in this
state.
(d) If the comptroller determines that the nonsettling
manufacturer that is the subject of a notice provided under
Subsection (b) later complies with this subchapter, the comptroller
shall provide to the nonsettling manufacturer, each distributor
authorized to affix stamps under Chapter 154, Tax Code, and the
attorney general a notice that the nonsettling manufacturer is in
compliance with this subchapter.
Sec. 161.612. APPOINTMENT OF AGENT FOR SERVICE OF PROCESS.
A nonsettling manufacturer shall appoint and engage a resident
agent for service of process.
Sec. 161.613. AUDIT OR INSPECTION. The comptroller or
attorney general is entitled to conduct reasonable periodic audits
or inspections of the financial records of a nonsettling
manufacturer to ensure compliance with this subchapter.
Sec. 161.614. REVENUE DEPOSITED IN PERMANENT HEALTH FUND.
The revenue from the fee imposed by this subchapter shall be
deposited in the state treasury to the credit of the permanent
health fund for higher education under Subchapter A of Chapter 63,
Education Code. The annual amounts deposited shall be distributed
for any purpose the legislature determines and shall not be subject
to the requirements of Chapter 63, Education Code.
Sec. 161.615. APPLICATION OF SUBCHAPTER. This subchapter
applies without regard to Section 154.022, Tax Code, or any other
law that might be read to create an exemption for interstate sales.
(b) Not later than September 30, 2011, a nonsettling
manufacturer, as that term is defined by Section 161.602, Health
and Safety Code, as added by this section, that is offering
cigarettes or cigarette tobacco products for sale or distribution
in this state on September 1, 2011, shall provide to the attorney
general on a form prescribed by the attorney general:
(1) the nonsettling manufacturer's complete name,
address, and telephone number;
(2) the date that the nonsettling manufacturer began
offering cigarettes or cigarette tobacco products for sale or
distribution in this state;
(3) the names of the brand families of the cigarettes
or cigarette tobacco products that the nonsettling manufacturer
offers for sale or distribution in this state;
(4) a statement that the nonsettling manufacturer
intends to comply with Subchapter V, Chapter 161, Health and Safety
Code, as added by this section; and
(5) the name, address, telephone number, and signature
of an officer of the nonsettling manufacturer attesting to all of
the included information.
(c) The attorney general shall make the information
provided under Subsection (b) of this section available to the
comptroller of public accounts of the State of Texas.
(d) Notwithstanding any other provision of this Act, this
section takes effect September 1, 2011.
ARTICLE 8. FISCAL MATTERS CONCERNING THE STATE COMPRESSION
PERCENTAGE
SECTION 8.01. 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.
ARTICLE 9. FISCAL MATTERS RELATING TO PUBLIC SCHOOL
FINANCE AND PREKINDERGARTEN PROGRAMS
SECTION 9.01. 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 9.02. Effective September 1, 2016, 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 9.03. 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 9.031. Effective September 1, 2016, 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 9.04. Section 29.1532, Education Code, is amended
by amending Subsection (a) and adding Subsections (d) and (e) to
read as follows:
(a) A school district's prekindergarten program shall be
designed to develop skills necessary for success in the regular
public school curriculum, including language, mathematics, [and]
social, and school readiness skills that are aligned with the Texas
Prekindergarten Guidelines approved by the commissioner.
(d) A school district's prekindergarten program must
demonstrate effectiveness in preparing children for kindergarten
according to a school readiness certification system established by
the commissioner. The commissioner may waive participation in the
certification system for a school district whose prekindergarten
program otherwise demonstrates effectiveness in preparing students
for kindergarten.
(e) The commissioner may adopt rules as necessary to
implement this section.
SECTION 9.05. Section 29.154, Education Code, is amended to
read as follows:
Sec. 29.154. EVALUATION OF PREKINDERGARTEN PROGRAMS.
(a) The commissioner [of education, in consultation with the
commissioner of human services,] shall:
(1) monitor and evaluate prekindergarten programs as
to their developmental appropriateness and the development of
school readiness, as aligned with the Texas Prekindergarten
Guidelines approved by the commissioner and a school readiness
certification system established by the commissioner;
(2) [. The commissioners shall also] evaluate the
potential for coordination on a statewide basis of prekindergarten
programs with government-funded early childhood care and education
programs such as child care administered under Chapter 44, Human
Resources Code, and federal Head Start programs; and
(3) [. That evaluation shall use recommendations
contained in the report to the 71st Legislature required by Chapter
717, Acts of the 70th Legislature, Regular Session, 1987. For the
purpose of providing cost-effective care for children during the
full workday with developmentally appropriate curriculum, the
commissioners shall investigate the use of existing child-care
program sites as prekindergarten sites. Following the evaluation
required by this section, the commissioners,] in cooperation with
school districts and other program administrators, [shall]
integrate programs, staff, and program sites for prekindergarten,
child-care, and federal Head Start programs to the greatest extent
possible.
(b) The commissioner or an entity acting under a contract
with the commissioner shall provide technical assistance to
implement proven school readiness components to a school district
operating a prekindergarten program under this subchapter that is
not certified by the commissioner following two consecutive review
cycles. The commissioner is not required to provide assistance to a
school district under this subsection if funding is not available.
(c) The commissioner may adopt rules as necessary to
implement this section.
SECTION 9.06. 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) [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 9.07. Section 42.003, Education Code, is amended by
amending Subsection (b) and adding Subsection (b-1) to read as
follows:
(b) A student to whom Subsection (a) does not apply is
entitled to the benefits of the Foundation School Program if the
student is enrolled in a prekindergarten class under Section 29.153
that participates in a school readiness certification system
established by the commissioner or that has received a waiver from
participation under Section 29.1532(d).
(b-1) For the 2012-2013 school year, the commissioner may
withhold from a school district an amount of the funds appropriated
to the district for allotments for prekindergarten students
enrolled in a classroom that participates in a school readiness
certification system established by the commissioner to pay the
costs of the district's participation in the school readiness
certification system. The commissioner may also withhold an amount
of revenue to which a school district is otherwise entitled under
Section 42.2516 to ensure that each school district in this state
pays a comparable amount of the costs of participation in the
system. This subsection expires September 1, 2013.
SECTION 9.08. The heading to Section 42.101, Education
Code, is amended to read as follows:
Sec. 42.101. BASIC AND REGULAR PROGRAM ALLOTMENTS
[ALLOTMENT].
SECTION 9.09. Effective September 1, 2011, 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
1.00 or a different amount established by appropriation.
(c-1) Notwithstanding Subsection (c), the regular program
adjustment factor ("RPAF") is 0.98 for the 2011-2012 and 2012-2013
school years. This subsection expires September 1, 2013.
SECTION 9.10. Effective September 1, 2015, Subsection (a),
Section 42.101, Education Code, is amended 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 $4,900 [$4,765] or the
amount that results from the following formula:
A = $4,900 [$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.
SECTION 9.11. Effective September 1, 2016, Subsection (a),
Section 42.101, Education Code, is amended 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 $5,000 [$4,765] or the
amount that results from the following formula:
A = $5,000 [$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.
SECTION 9.12. 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 9.13. 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 9.14. 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 9.15. Effective September 1, 2011, Section 42.2516,
Education Code, is amended by amending Subsections (b), (d), and
(f-2) and adding Subsection (i) to read as follows:
(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 93.50 percent for the
2011-2012 school year and 92.35 percent for each subsequent school
year. A different percentage for any school year may be established
by appropriation.
SECTION 9.16. Effective September 1, 2016, 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 9.17. Effective September 1, 2016, 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 9.18. 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 9.19. 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.
SECTION 9.20. Effective September 1, 2011, 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, 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 [reduction]. The following fiscal year:
(1) [,] a district's entitlement under this section is
increased by an amount equal to the adjustment [reduction] made
under this subsection; and
(2) the amount necessary for a district to comply with
the requirements of Chapter 41 is reduced by an amount equal to the
adjustment made under this subsection.
SECTION 9.21. Effective September 1, 2016, 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 [reduction]. The following fiscal year:
(1) [,] a district's entitlement under this section is
increased by an amount equal to the adjustment [reduction] made
under this subsection; and
(2) the amount necessary for a district to comply with
the requirements of Chapter 41 is reduced by an amount equal to the
adjustment made under this subsection.
SECTION 9.22. 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 9.23. 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 9.24. 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 9.25. Effective September 1, 2016, 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 9.26. 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 9.27. 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 9.28. (a) Effective September 1, 2016, 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, 2016, Subsections (i-1) and (j),
Section 26.08, Tax Code, are repealed.
SECTION 9.29. It is the intent of the legislature, between
fiscal year 2014 and fiscal year 2017, 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 9.30. 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 9.31. 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.
ARTICLE 10. EFFECTIVE DATE
SECTION 10.01. Except as otherwise provided by this Act,
this Act takes effect September 1, 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