Texas 2017 - 85th Regular

Texas House Bill HB1319 Compare Versions

Only one version of the bill is available at this time.

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1	1	By: Landgraf H.B. No. 1319
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the repeal of provisions requiring school districts to
7	7	reduce their wealth per student to the equalized wealth level.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 12.013(b), Education Code, is amended to
10	10	read as follows:
11	11	(b) A home-rule school district is subject to:
12	12	(1) a provision of this title establishing a criminal
13	13	offense;
14	14	(2) a provision of this title relating to limitations
15	15	on liability; and
16	16	(3) a prohibition, restriction, or requirement, as
17	17	applicable, imposed by this title or a rule adopted under this
18	18	title, relating to:
19	19	(A) the Public Education Information Management
20	20	System (PEIMS) to the extent necessary to monitor compliance with
21	21	this subchapter as determined by the commissioner;
22	22	(B) educator certification under Chapter 21 and
23	23	educator rights under Sections 21.407, 21.408, and 22.001;
24	24	(C) criminal history records under Subchapter C,
25	25	Chapter 22;
26	26	(D) student admissions under Section 25.001;
27	27	(E) school attendance under Sections 25.085,
28	28	25.086, and 25.087;
29	29	(F) inter-district or inter-county transfers of
30	30	students under Subchapter B, Chapter 25;
31	31	(G) elementary class size limits under Section
32	32	25.112, in the case of any campus in the district that fails to
33	33	satisfy any standard under Section 39.054(e);
34	34	(H) high school graduation under Section 28.025;
35	35	(I) special education programs under Subchapter
36	36	A, Chapter 29;
37	37	(J) bilingual education under Subchapter B,
38	38	Chapter 29;
39	39	(K) prekindergarten programs under Subchapter E,
40	40	Chapter 29;
41	41	(L) safety provisions relating to the
42	42	transportation of students under Sections 34.002, 34.003, 34.004,
43	43	and 34.008;
44	44	(M) computation and distribution of state aid
45	45	under Chapters 31, 42, and 43;
46	46	(N) extracurricular activities under Section
47	47	33.081;
48	48	(O) health and safety under Chapter 38;
49	49	(P) public school accountability under
50	50	Subchapters B, C, D, E, and J, Chapter 39;
51	51	(Q) [equalized wealth under Chapter 41;
52	52	[(R)] a bond or other obligation or tax rate
53	53	under Chapters 42, 43, and 45; and
54	54	(R) [(S)] purchasing under Chapter 44.
55	55	SECTION 2. Section 12.029(b), Education Code, is amended to
56	56	read as follows:
57	57	(b) If [Except as provided by Subchapter H, Chapter 41, if]
58	58	two or more school districts having different status, one of which
59	59	is home-rule school district status, consolidate into a single
60	60	district, the petition under Section 13.003 initiating the
61	61	consolidation must state the status for the consolidated district.
62	62	The ballot shall be printed to permit voting for or against the
63	63	proposition: "Consolidation of (names of school districts) into a
64	64	single school district governed as (status of school district
65	65	specified in the petition)."
66	66	SECTION 3. Section 21.410(h), Education Code, is amended to
67	67	read as follows:
68	68	(h) A grant a school district receives under this section is
69	69	in addition to any funding the district receives under Chapter 42.
70	70	The commissioner shall distribute funds under this section with the
71	71	Foundation School Program payment to which the district is entitled
72	72	as soon as practicable after the end of the school year as
73	73	determined by the commissioner. [A district to which Chapter 41
74	74	applies is entitled to the grants paid under this section.] The
75	75	commissioner shall determine the timing of the distribution of
76	76	grants to a district that does not receive Foundation School
77	77	Program payments.
78	78	SECTION 4. Section 21.411(h), Education Code, is amended to
79	79	read as follows:
80	80	(h) A grant a school district receives under this section is
81	81	in addition to any funding the district receives under Chapter 42.
82	82	The commissioner shall distribute funds under this section with the
83	83	Foundation School Program payment to which the district is entitled
84	84	as soon as practicable after the end of the school year as
85	85	determined by the commissioner. [A district to which Chapter 41
86	86	applies is entitled to the grants paid under this section.] The
87	87	commissioner shall determine the timing of the distribution of
88	88	grants to a district that does not receive Foundation School
89	89	Program payments.
90	90	SECTION 5. Section 21.412(h), Education Code, is amended to
91	91	read as follows:
92	92	(h) A grant a school district receives under this section is
93	93	in addition to any funding the district receives under Chapter 42.
94	94	The commissioner shall distribute funds under this section with the
95	95	Foundation School Program payment to which the district is entitled
96	96	as soon as practicable after the end of the school year as
97	97	determined by the commissioner. [A district to which Chapter 41
98	98	applies is entitled to the grants paid under this section.] The
99	99	commissioner shall determine the timing of the distribution of
100	100	grants to a district that does not receive Foundation School
101	101	Program payments.
102	102	SECTION 6. Section 21.413(h), Education Code, is amended to
103	103	read as follows:
104	104	(h) A grant a school district receives under this section is
105	105	in addition to any funding the district receives under Chapter 42.
106	106	The commissioner shall distribute funds under this section with the
107	107	Foundation School Program payment to which the district is entitled
108	108	as soon as practicable after the end of the school year as
109	109	determined by the commissioner. [A district to which Chapter 41
110	110	applies is entitled to the grants paid under this section.] The
111	111	commissioner shall determine the timing of the distribution of
112	112	grants to a district that does not receive Foundation School
113	113	Program payments.
114	114	SECTION 7. Section 29.203(b), Education Code, is amended to
115	115	read as follows:
116	116	(b) A school district is entitled to the allotment provided
117	117	by Section 42.157 for each eligible student using a public
118	118	education grant. [If the district has a wealth per student greater
119	119	than the guaranteed wealth level but less than the equalized wealth
120	120	level, a school district is entitled under rules adopted by the
121	121	commissioner to additional state aid in an amount equal to the
122	122	difference between the cost to the district of providing services
123	123	to a student using a public education grant and the sum of the state
124	124	aid received because of the allotment under Section 42.157 and
125	125	money from the available school fund attributable to the student.]
126	126	SECTION 8. Section 37.0061, Education Code, is amended to
127	127	read as follows:
128	128	Sec. 37.0061. FUNDING FOR ALTERNATIVE EDUCATION SERVICES IN
129	129	JUVENILE RESIDENTIAL FACILITIES. A school district that provides
130	130	education services to pre-adjudicated and post-adjudicated
131	131	students who are confined by court order in a juvenile residential
132	132	facility operated by a juvenile board is entitled to count such
133	133	students in the district's average daily attendance for purposes of
134	134	receipt of state funds under the Foundation School Program. [If the
135	135	district has a wealth per student greater than the guaranteed
136	136	wealth level but less than the equalized wealth level, the district
137	137	in which the student is enrolled on the date a court orders the
138	138	student to be confined to a juvenile residential facility shall
139	139	transfer to the district providing education services an amount
140	140	equal to the difference between the average Foundation School
141	141	Program costs per student of the district providing education
142	142	services and the sum of the state aid and the money from the
143	143	available school fund received by the district that is attributable
144	144	to the student for the portion of the school year for which the
145	145	district provides education services to the student.]
146	146	SECTION 9. Section 42.009(b), Education Code, is amended to
147	147	read as follows:
148	148	(b) In making the determinations regarding funding levels
149	149	required by Subsection (a), the commissioner shall:
150	150	(1) make adjustments as necessary to reflect changes
151	151	in a school district's maintenance and operations tax rate; and
152	152	(2) [for a district required to take action under
153	153	Chapter 41 to reduce its wealth per student to the equalized wealth
154	154	level, base the determinations on the district's net funding levels
155	155	after deducting any amounts required to be expended by the district
156	156	to comply with Chapter 41; and
157	157	[(3)] determine a district's weighted average daily
158	158	attendance in accordance with this chapter as it existed on January
159	159	1, 2011.
160	160	SECTION 10. Section 42.158(e), Education Code, is amended
161	161	to read as follows:
162	162	(e) [A school district that is required to take action under
163	163	Chapter 41 to reduce its wealth per student to the equalized wealth
164	164	level is entitled to a credit, in the amount of the allotments to
165	165	which the district is entitled under this section, against the
166	166	total amount required under Section 41.093 for the district to
167	167	purchase attendance credits.] A school district that is otherwise
168	168	ineligible for state aid under this chapter is entitled to receive
169	169	allotments under this section.
170	170	SECTION 11. Section 42.160(b), Education Code, is amended
171	171	to read as follows:
172	172	(b) [A school district that is required to take action under
173	173	Chapter 41 to reduce its wealth per student to the equalized wealth
174	174	level is entitled to a credit, in the amount of the allotments to
175	175	which the district is entitled under this section, against the
176	176	total amount required under Section 41.093 for the district to
177	177	purchase attendance credits.] A school district that is otherwise
178	178	ineligible for state aid under this chapter is entitled to receive
179	179	allotments under this section.
180	180	SECTION 12. Section 42.2518(a), Education Code, as added by
181	181	Section 18, Chapter 465 (S.B. 1), Acts of the 84th Legislature,
182	182	Regular Session, 2015, is amended to read as follows:
183	183	(a) Beginning with the 2017-2018 school year, a school
184	184	district is entitled to additional state aid to the extent that
185	185	state and local revenue under this chapter [and Chapter 41] is less
186	186	than the state and local revenue that would have been available to
187	187	the district under [Chapter 41 and] this chapter as it [those
188	188	chapters] existed on September 1, 2015, excluding any state aid
189	189	that would have been provided under former Section 42.2516, if the
190	190	increase in the residence homestead exemption under Section 1-b(c),
191	191	Article VIII, Texas Constitution, and the additional limitation on
192	192	tax increases under Section 1-b(d) of that article as proposed by
193	193	S.J.R. 1, 84th Legislature, Regular Session, 2015, had not
194	194	occurred.
195	195	SECTION 13. Section 42.2521(a), Education Code, is amended
196	196	to read as follows:
197	197	(a) For purposes of Chapter [Chapters 41 and] 46 and this
198	198	chapter, and to the extent money specifically authorized to be used
199	199	under this section is available, the commissioner shall adjust the
200	200	taxable value of property in a school district that, due to factors
201	201	beyond the control of the board of trustees, experiences a rapid
202	202	decline in the tax base used in calculating taxable values in excess
203	203	of four percent of the tax base used in the preceding year.
204	204	SECTION 14. Section 42.2523(a), Education Code, is amended
205	205	to read as follows:
206	206	(a) For purposes of Chapter [Chapters 41 and] 46 and this
207	207	chapter, the commissioner shall adjust the taxable value of
208	208	property of a school district all or part of which is located in an
209	209	area declared a disaster area by the governor under Chapter 418,
210	210	Government Code, as necessary to ensure that the district receives
211	211	funding based as soon as possible on property values as affected by
212	212	the disaster.
213	213	SECTION 15. Sections 42.2524(c) and (d), Education Code,
214	214	are amended to read as follows:
215	215	(c) The commissioner may provide reimbursement under this
216	216	section only if funds are available for that purpose [as follows:
217	217	[(1) reimbursement for a school district not required
218	218	to take action under Chapter 41 may be provided] from:
219	219	(1) [(A)] amounts appropriated for that purpose,
220	220	including amounts appropriated for those districts for that purpose
221	221	to the disaster contingency fund established under Section 418.073,
222	222	Government Code; or
223	223	(2) [(B)] Foundation School Program funds available
224	224	for that purpose, based on a determination by the commissioner that
225	225	the amount appropriated for the Foundation School Program,
226	226	including the facilities component as provided by Chapter 46,
227	227	exceeds the amount to which districts are entitled under this
228	228	chapter and Chapter 46[; and
229	229	[(2) reimbursement for a school district required to
230	230	take action under Chapter 41 may be provided from funds described by
231	231	Subdivision (1)(B) if funds remain available after fully
232	232	reimbursing each school district described by Subdivision (1) for
233	233	its disaster remediation costs].
234	234	(d) If the amount of money available for purposes of
235	235	reimbursing school districts [not required to take action under
236	236	Chapter 41] is not sufficient to fully reimburse each district's
237	237	disaster remediation costs, the commissioner shall reduce the
238	238	amount of assistance provided to each of those districts
239	239	proportionately. [If the amount of money available for purposes of
240	240	reimbursing school districts required to take action under Chapter
241	241	41 is not sufficient to fully reimburse each district's disaster
242	242	remediation costs, the commissioner shall reduce the amount of
243	243	assistance provided to each of those districts proportionately.]
244	244	SECTION 16. Section 42.253(h), Education Code, as effective
245	245	September 1, 2017, is amended to read as follows:
246	246	(h) If the amount appropriated for the Foundation School
247	247	Program for the second year of a state fiscal biennium is less than
248	248	the amount to which school districts and open-enrollment charter
249	249	schools are entitled for that year, the commissioner shall certify
250	250	the amount of the difference to the Legislative Budget Board not
251	251	later than January 1 of the second year of the state fiscal
252	252	biennium. The Legislative Budget Board shall propose to the
253	253	legislature that the certified amount be transferred to the
254	254	foundation school fund from the economic stabilization fund and
255	255	appropriated for the purpose of increases in allocations under this
256	256	subsection. If the legislature fails during the regular session to
257	257	enact the proposed transfer and appropriation and there are not
258	258	funds available under Subsection (j), the commissioner shall adjust
259	259	the total amounts due to each school district and open-enrollment
260	260	charter school under this chapter [and the total amounts necessary
261	261	for each school district to comply with the requirements of Chapter
262	262	41] by an amount determined by applying to each district and school
263	263	the same percentage adjustment to the total amount of state and
264	264	local revenue due to the district or school under this chapter [and
265	265	Chapter 41] so that the total amount of the adjustment to all
266	266	districts and schools results in an amount equal to the total
267	267	adjustment necessary. The following fiscal year[:
268	268	[(1)] a district's or school's entitlement under this
269	269	section is increased by an amount equal to the adjustment made under
270	270	this subsection[; and
271	271	[(2) the amount necessary for a district to comply
272	272	with the requirements of Chapter 41 is reduced by an amount
273	273	necessary to ensure a district's full recovery of the adjustment
274	274	made under this subsection].
275	275	SECTION 17. Sections 42.2531(a), (b), and (c), Education
276	276	Code, are amended to read as follows:
277	277	(a) The commissioner may make adjustments to amounts due to
278	278	a school district under this chapter or Chapter 46[, or to amounts
279	279	necessary for a district to comply with the requirements of Chapter
280	280	41,] as provided by this section.
281	281	(b) A school district that has a major taxpayer, as
282	282	determined by the commissioner, that because of a protest of the
283	283	valuation of the taxpayer's property fails to pay all or a portion
284	284	of the ad valorem taxes due to the district may apply to the
285	285	commissioner to have the district's taxable value of property or ad
286	286	valorem tax collections adjusted for purposes of this chapter or
287	287	Chapter [41 or] 46. The commissioner may make the adjustment only
288	288	to the extent the commissioner determines that making the
289	289	adjustment will not:
290	290	(1) in the fiscal year in which the adjustment is made,
291	291	cause the amount to which school districts are entitled under this
292	292	chapter to exceed the amount appropriated for purposes of the
293	293	Foundation School Program for that year; and
294	294	(2) if the adjustment is made in the first year of a
295	295	state fiscal biennium, cause the amount to which school districts
296	296	are entitled under this chapter for the second year of the biennium
297	297	to exceed the amount appropriated for purposes of the Foundation
298	298	School Program for that year.
299	299	(c) The commissioner shall recover the benefit of any
300	300	adjustment made under this section by making offsetting adjustments
301	301	in the school district's taxable value of property or ad valorem tax
302	302	collections for purposes of this chapter or Chapter [41 or] 46 on a
303	303	final determination of the taxable value of property that was the
304	304	basis of the original adjustment, or in the second school year
305	305	following the year in which the adjustment is made, whichever is
306	306	earlier.
307	307	SECTION 18. Section 42.258(a-1), Education Code, is amended
308	308	to read as follows:
309	309	(a-1) Notwithstanding Subsection (a), the agency may
310	310	recover an overallocation of state funds over a period not to exceed
311	311	the subsequent five school years if the commissioner determines
312	312	that the overallocation was the result of exceptional circumstances
313	313	reasonably caused by statutory changes to former Chapter 41,
314	314	Chapter [or] 46, or this chapter and related reporting
315	315	requirements.
316	316	SECTION 19. Section 42.260(b), Education Code, is amended
317	317	to read as follows:
318	318	(b) For each year, the commissioner shall certify to each
319	319	school district or participating charter school the amount of
320	320	[additional funds to which the district or school is entitled due to
321	321	the increase made by H.B. No. 3343, Acts of the 77th Legislature,
322	322	Regular Session, 2001, to:
323	323	[(1) the equalized wealth level under Section 41.002;
324	324	or
325	325	[(2)] the guaranteed level of state and local funds
326	326	per weighted student per cent of tax effort under Section 42.302.
327	327	SECTION 20. Section 45.251(2), Education Code, is amended
328	328	to read as follows:
329	329	(2) "Foundation School Program" means the program
330	330	established under Chapters [41,] 42[,] and 46, or any successor
331	331	program of state appropriated funding for school districts in this
332	332	state.
333	333	SECTION 21. Section 45.261(a), Education Code, is amended
334	334	to read as follows:
335	335	(a) If the commissioner orders payment from the money
336	336	appropriated to the Foundation School Program on behalf of a school
337	337	district [that is not required to reduce its wealth per student
338	338	under Chapter 41], the commissioner shall direct the comptroller to
339	339	withhold the amount paid from the first state money payable to the
340	340	district. If the commissioner orders payment from the money
341	341	appropriated to the Foundation School Program on behalf of a school
342	342	district that is not entitled to state assistance under Chapter 42
343	343	[required to reduce its wealth per student under Chapter 41], the
344	344	commissioner shall order [increase amounts due from] the district
345	345	to remit to the commissioner an [under that chapter in a total]
346	346	amount equal to the amount of payments made on behalf of the
347	347	district under this subchapter. Amounts withheld or received under
348	348	this subsection shall be used for the Foundation School Program.
349	349	SECTION 22. Section 403.302(a), Government Code, is amended
350	350	to read as follows:
351	351	(a) The comptroller shall conduct a study using comparable
352	352	sales and generally accepted auditing and sampling techniques to
353	353	determine the total taxable value of all property in each school
354	354	district. The study shall determine the taxable value of all
355	355	property and of each category of property in the district and the
356	356	productivity value of all land that qualifies for appraisal on the
357	357	basis of its productive capacity and for which the owner has applied
358	358	for and received a productivity appraisal. [The comptroller shall
359	359	make appropriate adjustments in the study to account for actions
360	360	taken under Chapter 41, Education Code.]
361	361	SECTION 23. Section 21.01, Tax Code, is amended to read as
362	362	follows:
363	363	Sec. 21.01. REAL PROPERTY. Real property is taxable by a
364	364	taxing unit if located in the unit on January 1[, except as provided
365	365	by Chapter 41, Education Code].
366	366	SECTION 24. Section 21.02(a), Tax Code, is amended to read
367	367	as follows:
368	368	(a) Except as provided by Subsection [Subsections (b) and]
369	369	(e) and by Sections 21.021, 21.04, and 21.05, tangible personal
370	370	property is taxable by a taxing unit if:
371	371	(1) it is located in the unit on January 1 for more
372	372	than a temporary period;
373	373	(2) it normally is located in the unit, even though it
374	374	is outside the unit on January 1, if it is outside the unit only
375	375	temporarily;
376	376	(3) it normally is returned to the unit between uses
377	377	elsewhere and is not located in any one place for more than a
378	378	temporary period; or
379	379	(4) the owner resides (for property not used for
380	380	business purposes) or maintains the owner's principal place of
381	381	business in this state (for property used for business purposes) in
382	382	the unit and the property is taxable in this state but does not have
383	383	a taxable situs pursuant to Subdivisions (1) through (3) of this
384	384	subsection.
385	385	SECTION 25. Section 26.08(i), Tax Code, as effective
386	386	September 1, 2017, is amended to read as follows:
387	387	(i) For purposes of this section, the effective maintenance
388	388	and operations tax rate of a school district is the tax rate that,
389	389	applied to the current total value for the district, would impose
390	390	taxes in an amount that, when added to state funds that would be
391	391	distributed to the district under Chapter 42, Education Code, for
392	392	the school year beginning in the current tax year using that tax
393	393	rate, would provide the same amount of state funds distributed
394	394	under Chapter 42, Education Code, and maintenance and operations
395	395	taxes of the district per student in weighted average daily
396	396	attendance for that school year that would have been available to
397	397	the district in the preceding year if the funding elements for
398	398	Chapter [Chapters 41 and] 42, Education Code, for the current year
399	399	had been in effect for the preceding year.
400	400	SECTION 26. Section 312.210(b), Tax Code, is amended to
401	401	read as follows:
402	402	(b) A tax abatement agreement with the owner of real
403	403	property or tangible personal property that is located in the
404	404	reinvestment zone described by Subsection (a) and in a school
405	405	district [that has a wealth per student that does not exceed the
406	406	equalized wealth level] must exempt from taxation:
407	407	(1) the portion of the value of the property in the
408	408	amount specified in the joint agreement among the municipality,
409	409	county, and junior college district; and
410	410	(2) an amount equal to 10 percent of the maximum
411	411	portion of the value of the property that may under Section
412	412	312.204(a) be otherwise exempted from taxation.
413	413	SECTION 27. The following laws are repealed:
414	414	(1) Chapter 41, Education Code;
415	415	(2) Sections 7.055(b)(34), 8.056, 29.203(g), and
416	416	42.2524(f), Education Code; and
417	417	(3) Sections 21.02(b) and (c), 25.25(k), and
418	418	312.210(c), Tax Code.
419	419	SECTION 28. This Act takes effect September 1, 2017 and its
420	420	provisions shall be first implemented for the 2018-2019 academic
421	421	year. The Commissioner of Education shall provide members of the
422	422	Texas Legislature and school districts with an implementation
423	423	report outlining the impact of this act no later than January 1,
424	424	2018.