By: Lucio III H.B. No. 2765
A BILL TO BE ENTITLED
AN ACT
relating to property tax relief, the school facilities allotment
and the existing debt allotment under the Foundation School
Program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 46.003(a), Education Code, is amended to
read as follows:
Sec. 46.003. SCHOOL FACILITIES ALLOTMENT. (a) For each
year, except as provided by Sections 46.005 and 46.006, a school
district is guaranteed a specified amount [per student] in state
and local funds [for each cent of tax effort, up to the maximum rate
under Subsection (b),] to pay the principal of and interest on
eligible bonds issued to construct, acquire, renovate, or improve
an instructional facility. The amount of state support is
determined by the formula:
FYA = EBP X (1 - (DYL/FYL)
[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;
"EBP" ["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,
under Section 42.2521, divided by 100]; and
"DYL" ["DPV"] is the district's yield per penny per student
which is determined by dividing the taxable value of property as
determined under Subchapter M, Chapter 403, Government Code, or, if
applicable, Section 42.2521, by the product of the district's ADA
and 10,000.
SECTION 2. Section 46.032(a), Education Code, is amended to
read as follows:
Sec. 46.032. ALLOTMENT. (a) Each school district is
guaranteed a specified amount per student in state and local funds
for each cent of tax effort to pay the principal of and interest on
eligible bonds. The amount of state support, subject only to the
maximum amount under Section 46.034, is determined by the formula:
EDA = EDBP X (1 - (DYL/EDGL)
[EDA = (EDGL X ADA X EDTR X 100) - (EDTR X (DPV/100))]
where:
"EDA" is the amount of state funds to be allocated to the
district for assistance with existing debt;
"EDGL" is the dollar amount guaranteed level of state and
local funds per student per cent of tax effort, which is $35 or a
greater amount for any year provided by appropriation;
"ADA" is the number of students in average daily attendance,
as determined under Section 42.005, in the district;
"EDBP" ["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
"DYL" ["DPV"] is the district's yield per penny per student
which is determined by dividing the taxable value of property as
determined under Subchapter M, Chapter 403, Government Code, or, if
applicable, Section 42.2521, by the product of the district's ADA
and 10,000.
SECTION 3. Section 46.034(c), Education Code, is amended to
read as follows:
(c) If the amount required to pay the principal of and
interest on eligible bonds in a school year is less than the amount
of payments made by the district on the bonds during the final
school
year of the preceding state fiscal biennium or the
district's audited debt service collections for that school year,
the district may not receive aid in excess of the amount that, when
added to the district's local revenue for the school year, equals
the amount required to pay the principal of and interest on the
bonds.
SECTION 4. The following provisions of the Education Code
are repealed:
(1) Sections 46.003(b), (c) and (d);
(2) Sections 46.032(b), (c) and (d); and
(3) Sections 46.034(a), (b) and (b-1).
SECTION 5. A school district must use all revenues derived
from the changes to Chapter 46, Education Code, provided by this Act
to reduce the district's tax rate for bonded indebtedness or to
reduce the maturity of previously issued bonds. The commissioner
shall adopt rules regarding the operation and enforcement of this
provision.
SECTION 6. 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, 2015.