Texas 2017 - 85th Regular

Texas House Bill HB1320 Compare Versions

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1	1	By: Landgraf H.B. No. 1320
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to certain adjustments to the taxable value of property of
7	7	certain school districts and the reduction of Foundation School
8	8	Program funds received by certain school districts.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 41.002, Education Code, is amended by
11	11	adding Subsections (c) and (d) to read as follows:
12	12	(c) For purposes of this chapter, the commissioner shall
13	13	adjust, in accordance with Section 42.2529, the taxable values of a
14	14	school district that meets the criteria for adjustment under that
15	15	section.
16	16	(d) For purposes of this chapter, the commissioner shall
17	17	adjust, in accordance with Section 42.25291, the taxable values of
18	18	a school district that meets the criteria for adjustment under that
19	19	section.
20	20	SECTION 2. Subchapter A, Chapter 42, Education Code, is
21	21	amended by adding Section 42.012 to read as follows:
22	22	Sec. 42.012. REDUCTION IN FUNDING OF CERTAIN DISTRICTS.
23	23	(a) Each school year the commissioner shall determine the
24	24	percentage of the cost of the Foundation School Program funded by
25	25	amounts paid to the state by school districts as a result of
26	26	attendance credits purchased under Subchapter D, Chapter 41.
27	27	(b) Notwithstanding any other provision of this chapter,
28	28	the total amount to which a school district is entitled under this
29	29	chapter is reduced by the percentage determined under Subsection
30	30	(a) unless the school district imposes a maintenance and operations
31	31	tax at the greatest rate allowed under Section 45.003(d).
32	32	SECTION 3. Subchapter E, Chapter 42, Education Code, is
33	33	amended by adding Sections 42.2529, 42.25291, and 42.25292 to read
34	34	as follows:
35	35	Sec. 42.2529. ADJUSTMENT FOR DISTRICT ENTITLED TO CERTAIN
36	36	FEDERAL FUNDING. For purposes of Chapters 41 and 46 and this
37	37	chapter, the commissioner shall adjust the taxable value of
38	38	property of a district for a school year as necessary to ensure the
39	39	district's wealth per student does not exceed the equalized wealth
40	40	level provided by Section 41.002, if for that school year the
41	41	district:
42	42	(1) has a campus that receives federal funding under a
43	43	concentration grant under 20 U.S.C. Section 6334; and
44	44	(2) would otherwise have a wealth per student that
45	45	exceeds the equalized wealth level provided by Section 41.002.
46	46	Sec. 42.25291. ADJUSTMENT FOR DISTRICT WITH TAXABLE VALUE
47	47	OF PROPERTY INCREASED BY ASSOCIATED MINERAL RIGHTS. For purposes
48	48	of Chapters 41 and 46 and this chapter, the commissioner shall
49	49	adjust the taxable value of property of a district for a school year
50	50	as necessary to ensure the district's wealth per student does not
51	51	exceed the equalized wealth level provided by Section 41.002, if
52	52	for that school year the district:
53	53	(1) is identified by the select committee under
54	54	Section 42.25292 as having a taxable value of property that is
55	55	unlikely to produce the projected district tax revenue per weighted
56	56	student because of a high prevalence of mineral rights associated
57	57	with the taxable property; and
58	58	(2) would otherwise have a wealth per student that
59	59	exceeds the equalized wealth level provided by Section 41.002.
60	60	Sec. 42.25292. SELECT COMMITTEE TO DETERMINE TAXABLE VALUE
61	61	OF PROPERTY OF CERTAIN DISTRICTS. (a) Not later than October 1 of
62	62	each year, the speaker of the house of representatives and the
63	63	lieutenant governor shall appoint a select committee as follows:
64	64	(1) the speaker of the house of representatives shall
65	65	appoint five members of the house, at least three of whom must
66	66	reside within the boundaries of the geographic area encompassed by
67	67	State Board of Education districts 1, 3, and 15; and
68	68	(2) the lieutenant governor shall appoint five members
69	69	of the senate, at least three of whom must reside within the
70	70	boundaries of the geographic area encompassed by State Board of
71	71	Education districts 1, 3, and 15.
72	72	(b) For purposes of Section 42.25291, not later than June 1
73	73	of each year, the select committee shall:
74	74	(1) in consultation with the comptroller and the
75	75	Legislative Budget Board, identify districts with a taxable value
76	76	of property that is unlikely to produce the projected district tax
77	77	revenue per weighted student because of a high prevalence of
78	78	mineral rights associated with the taxable property; and
79	79	(2) provide to the commissioner a list of those
80	80	districts identified by the committee under Subdivision (1).
81	81	SECTION 4. Section 42.302(a), Education Code, is amended to
82	82	read as follows:
83	83	(a) Each school district is guaranteed a specified amount
84	84	per weighted student in state and local funds for each cent of tax
85	85	effort over that required for the district's local fund assignment
86	86	up to the maximum level specified in this subchapter. The amount of
87	87	state support, subject only to the maximum amount under Section
88	88	42.303, is determined by the formula:
89	89	GYA = (GL X WADA X DTR X 100) - LR
90	90	where:
91	91	"GYA" is the guaranteed yield amount of state funds to be
92	92	allocated to the district;
93	93	"GL" is the dollar amount guaranteed level of state and local
94	94	funds per weighted student per cent of tax effort, which is an
95	95	amount described by Subsection (a-1) or a greater amount for any
96	96	year provided by appropriation;
97	97	"WADA" is the number of students in weighted average daily
98	98	attendance, which is calculated by dividing the sum of the school
99	99	district's allotments under Subchapters B and C, less any allotment
100	100	to the district for transportation, any allotment under Section
101	101	42.158 or 42.160, and 50 percent of the adjustment under Section
102	102	42.102, by the basic allotment for the applicable year;
103	103	"DTR" is the district enrichment tax rate of the school
104	104	district, which is determined by subtracting the amounts specified
105	105	by Subsection (b) from the total amount of maintenance and
106	106	operations taxes collected by the school district for the
107	107	applicable school year and dividing the difference by the quotient
108	108	of the district's taxable value of property as determined under
109	109	Subchapter M, Chapter 403, Government Code, or, if applicable,
110	110	under Section 42.2521, 42.2529, or 42.25291, divided by 100; and
111	111	"LR" is the local revenue, which is determined by multiplying
112	112	"DTR" by the quotient of the district's taxable value of property as
113	113	determined under Subchapter M, Chapter 403, Government Code, or, if
114	114	applicable, under Section 42.2521, 42.2529, or 42.25291, divided by
115	115	100.
116	116	SECTION 5. Section 46.003(a), Education Code, is amended to
117	117	read as follows:
118	118	(a) For each year, except as provided by Sections 46.005 and
119	119	46.006, a school district is guaranteed a specified amount per
120	120	student in state and local funds for each cent of tax effort, up to
121	121	the maximum rate under Subsection (b), to pay the principal of and
122	122	interest on eligible bonds issued to construct, acquire, renovate,
123	123	or improve an instructional facility. The amount of state support
124	124	is determined by the formula:
125	125	FYA = (FYL X ADA X BTR X 100) - (BTR X (DPV/100))
126	126	where:
127	127	"FYA" is the guaranteed facilities yield amount of state
128	128	funds allocated to the district for the year;
129	129	"FYL" is the dollar amount guaranteed level of state and
130	130	local funds per student per cent of tax effort, which is $35 or a
131	131	greater amount for any year provided by appropriation;
132	132	"ADA" is the greater of the number of students in average
133	133	daily attendance, as determined under Section 42.005, in the
134	134	district or 400;
135	135	"BTR" is the district's bond tax rate for the current year,
136	136	which is determined by dividing the amount budgeted by the district
137	137	for payment of eligible bonds by the quotient of the district's
138	138	taxable value of property as determined under Subchapter M, Chapter
139	139	403, Government Code, or, if applicable, Section 42.2521, 42.2529,
140	140	or 42.25291, divided by 100; and
141	141	"DPV" is the district's taxable value of property as
142	142	determined under Subchapter M, Chapter 403, Government Code, or, if
143	143	applicable, Section 42.2521, 42.2529, or 42.25291.
144	144	SECTION 6. Section 46.006(g), Education Code, is amended to
145	145	read as follows:
146	146	(g) In this section, "wealth per student" means a school
147	147	district's taxable value of property as determined under Subchapter
148	148	M, Chapter 403, Government Code, or, if applicable, Section
149	149	42.2521, 42.2529, or 42.25291, divided by the district's average
150	150	daily attendance as determined under Section 42.005.
151	151	SECTION 7. Section 46.032(a), Education Code, is amended to
152	152	read as follows:
153	153	(a) Each school district is guaranteed a specified amount
154	154	per student in state and local funds for each cent of tax effort to
155	155	pay the principal of and interest on eligible bonds. The amount of
156	156	state support, subject only to the maximum amount under Section
157	157	46.034, is determined by the formula:
158	158	EDA = (EDGL X ADA X EDTR X 100) - (EDTR X (DPV/100))
159	159	where:
160	160	"EDA" is the amount of state funds to be allocated to the
161	161	district for assistance with existing debt;
162	162	"EDGL" is the dollar amount guaranteed level of state and
163	163	local funds per student per cent of tax effort, which is $35 or a
164	164	greater amount for any year provided by appropriation;
165	165	"ADA" is the number of students in average daily attendance,
166	166	as determined under Section 42.005, in the district;
167	167	"EDTR" is the existing debt tax rate of the district, which is
168	168	determined by dividing the amount budgeted by the district for
169	169	payment of eligible bonds by the quotient of the district's taxable
170	170	value of property as determined under Subchapter M, Chapter 403,
171	171	Government Code, or, if applicable, under Section 42.2521, 42.2529,
172	172	or 42.25291, divided by 100; and
173	173	"DPV" is the district's taxable value of property as
174	174	determined under Subchapter M, Chapter 403, Government Code, or, if
175	175	applicable, under Section 42.2521, 42.2529, or 42.25291.
176	176	SECTION 8. This Act takes effect September 1, 2017.