By: Lucio, Davis S.B. No. 90
A BILL TO BE ENTITLED
AN ACT
relating to the financing of school district facilities and tax
relief for facilities debt.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Chapter 46, Education Code, is
amended to read as follows:
CHAPTER 46. [ASSISTANCE WITH] SCHOOL [INSTRUCTIONAL] FACILITIES
[AND PAYMENT OF EXISTING] DEBT TAX RELIEF
SECTION 2. Subsections (a), (d), and (e), Section 46.003,
Education Code, are amended to read as follows:
(a) In the second year of the fiscal biennium in which the
debt is issued [For each year], except as provided by Sections
46.005 and 46.006, a school district is guaranteed a specified
amount per student in state and local funds for each cent of tax
effort, up to the maximum rate under Subsection (b), to pay the
principal of and interest on eligible bonds issued to construct,
acquire, renovate, or improve an instructional facility. The
amount of state support is determined by the formula:
FYA = (FYL X ADA X BTR X 100) - (BTR X (DPV/100))
where:
"FYA" is the guaranteed facilities yield amount of state
funds allocated to the district for the year;
"FYL" is the dollar amount guaranteed level of state and
local funds per student per cent of tax effort, which is $35 or a
greater amount for any year provided by appropriation;
"ADA" is the greater of the number of students in average
daily attendance, as determined under Section 42.005, in the
district or 400;
"BTR" is the district's bond tax rate for the current year,
which is determined by dividing the amount budgeted by the district
for payment of eligible bonds by the quotient of the district's
taxable value of property as determined under Subchapter M, Chapter
403, Government Code, or, if applicable, Section 42.2521, divided
by 100; and
"DPV" is the district's taxable value of property as
determined under Subchapter M, Chapter 403, Government Code, or, if
applicable, Section 42.2521.
(d) The amount budgeted by a district for payment of
eligible bonds may include:
(1) bond taxes collected in the current school year;
(2) bond taxes collected in a preceding school year in
excess of the amount necessary to pay the district's share of actual
debt service on bonds in that year, provided that the taxes were not
used to generate other state financial assistance for the district;
[or]
(3) maintenance and operations taxes collected in the
current school year or a preceding school year in excess of the
amount eligible to be used to generate other state financial
assistance for the district; or
(4) penalty and interest on delinquent taxes, interest
on bond tax revenue, or any other available local revenue that has
not otherwise been used to generate other state financial
assistance for the district.
(e) Bonds are eligible to be paid with state and local funds
under this section if[:
[(1) taxes to pay the principal of and interest on the
bonds were first levied in the 1997-1998 school year or a later
school year; and
[(2)] the bonds do not have a weighted average
maturity of less than eight years.
SECTION 3. Subsection (a), Section 46.006, Education Code,
is amended to read as follows:
(a) If the total amount appropriated for this chapter for a
fiscal biennium [year for new projects] is less than the amount of
money to which school districts are entitled for prior debt
guaranteed under this subchapter and Subchapter B and the amount of
money to which school districts applying for state assistance are
entitled for in that biennium [year], the commissioner shall rank
each school district applying by wealth per student. For purposes
of this section, a district's wealth per student is reduced by 10
percent for each state fiscal biennium in which the district did not
receive assistance under this subchapter.
SECTION 4. Subsections (a) and (b), Section 46.009,
Education Code, are amended to read as follows:
(a) For each school year, the commissioner shall determine
the amount of money to which each school district is entitled under
this chapter [subchapter].
(b) If the amount appropriated for purposes of this chapter
[subchapter] for a year is less than the total amount determined
under Subsection (a) for that year, the commissioner shall:
(1) transfer from the Foundation School Program to the
instructional facilities program the amount by which the total
amount determined under Subsection (a) exceeds the amount
appropriated; and
(2) reduce each district's foundation school fund
allocations in the manner provided by Section 42.253(h).
SECTION 5. The heading to Subchapter B, Chapter 46,
Education Code, is amended to read as follows:
SUBCHAPTER B. [ASSISTANCE WITH PAYMENT OF EXISTING] DEBT TAX
RELIEF
SECTION 6. The heading to Section 46.032, Education Code,
is amended to read as follows:
Sec. 46.032. DEBT TAX RELIEF ALLOTMENT.
SECTION 7. Section 46.032, Education Code, is amended by
amending Subsections (a) and (c) and adding Subsection (d) to read
as follows:
(a) Each school district is guaranteed a specified amount
per student in state and local funds for each cent of tax effort to
pay the principal of and interest on eligible bonds. The amount of
state support, subject only to the maximum amount under Section
46.034, is determined by the formula:
DTRA [EDA] = (EDGL X ADA X EDTR X 100) - (EDTR X (DPV/100))
where:
"DTRA"["EDA"] is the amount of state funds to be allocated to
the district for assistance with existing debt;
"EDGL" is the dollar amount guaranteed level of state and
local funds per student per cent of tax effort, which is $35 or a
greater amount for any year provided by appropriation;
"ADA" is the number of students in average daily attendance,
as determined under Section 42.005, in the district;
"EDTR" is the existing debt tax rate of the district, which is
determined by dividing the amount budgeted by the district for
payment of eligible bonds by the quotient of the district's taxable
value of property as determined under Subchapter M, Chapter 403,
Government Code, or, if applicable, under Section 42.2521, divided
by 100; and
"DPV" is the district's taxable value of property as
determined under Subchapter M, Chapter 403, Government Code, or, if
applicable, under Section 42.2521.
(c) The amount budgeted by a district for payment of
eligible bonds may include:
(1) bond taxes collected in the current school year;
(2) bond taxes collected in a preceding school year in
excess of the amount necessary to pay the district's share of actual
debt service on bonds in that year, provided that the taxes were not
used to generate other state financial assistance for the district;
[or]
(3) maintenance and operations taxes collected in the
current school year or a preceding school year in excess of the
amount eligible to be used to generate other state financial
assistance for the district; or
(4) penalty and interest on delinquent taxes, interest
on bond tax revenue, or any other available local revenue that has
not otherwise been used to generate other state financial
assistance for the district.
(d) A school district must reduce the tax rate levied for
payment on the bonds by the percentage established by the
commissioner to reflect any increase in the guaranteed yield
authorized under Subsection (a) or increase in yield resulting from
the higher guarantee under this subchapter over the yield received
prior to eligibility under this subchapter.
SECTION 8. Section 46.033, Education Code, is amended to
read as follows:
Sec. 46.033. ELIGIBLE BONDS. Bonds, including bonds issued
under Section 45.006, are eligible to be paid with state and local
funds under this subchapter if:
(1) the district made payments on the bonds during the
final school year of the preceding state fiscal biennium;
(2) [or] taxes levied to pay the principal of and
interest on the bonds were included in the district's audited debt
service collections for that school year; [and]
(3) [(2)] the district certifies to the commissioner
during the final school year of the preceding state fiscal
biennium, in accordance with rules adopted by the commissioner, the
amount of payments due on the bonds in each year of the state's next
fiscal biennium; and
(4) the district does not receive state assistance
under Subchapter A for payment of the principal and interest on the
bonds.
SECTION 9. The heading to Subchapter C, Chapter 46,
Education Code, is amended to read as follows:
SUBCHAPTER C. FINANCING AND REFINANCING
SECTION 10. Subchapter C, Chapter 46, Education Code, is
amended by adding Section 46.051 to read as follows:
Sec. 46.051. DETERMINATION BY THE COMMISSIONER OF YIELDS
AND COMPRESSION RATES. (a) For any year in which the guaranteed
level of state and local funds ("EDGL") under Sec. 46.032 is set at
a higher level than the guaranteed level for the prior year, the
commissioner shall determine the tax rate compression ratio inverse
to the increase in guaranteed yield over the prior year required
under Subchapter B.
(c) Each school district shall reduce its prior bond tax
rate to reflect the appropriate compression.
SECTION 11. This Act takes effect immediately if it
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 Act takes effect September 1, 2011.