S.B. No. 1353
AN ACT
relating to state funding for school districts, including a school
district to which an academically unacceptable school district is
annexed.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 13.054, Education Code, is amended by
amending Subsections (f) and (g) and adding Subsections (h), (i),
and (j) to read as follows:
(f) For five years beginning with the school year in which
the annexation occurs, a school district shall receive additional
funding under this subsection or Subsection (h). The amount of
funding shall be determined [the commissioner shall annually adjust
the local fund assignment of a district to which territory is
annexed under this section] by multiplying the lesser of the
enlarged district's local fund assignment computed under Section
42.252 or the enlarged district's total cost of tier one by a
fraction, the numerator of which is the number of students residing
in the [district] territory annexed to the receiving district
preceding the date of the annexation and the denominator of which is
the number of students residing in the district as enlarged on the
date of the annexation.
(g) In order to assist with the costs of facility
renovation, repair, and replacement, a [A] district to which
territory is annexed under this section is entitled to additional
state aid for five years, beginning with the school year in which
the annexation occurs [equal to the amount by which the annual debt
service required to meet the indebtedness incurred by the district
due to the annexation exceeds the additional amount of state aid
that results from the adjustment under Subsection (f), if any]. The
commissioner shall determine the amount of additional state aid
provided each year by dividing the amount of debt service taxes
received by the district during the tax year preceding the tax year
in which the annexation occurs by the number of students enrolled in
the district immediately preceding the date of annexation, and
multiplying that result by the number of additional students
enrolled in the district on September 1 after the date of
annexation. The commissioner shall provide additional state aid
under this subsection from funds appropriated for purposes of the
Foundation School Program and available for that purpose. A
determination by the commissioner under this subsection is final
and may not be appealed. [In determining the amount of annual debt
service required, the estimated tax levy from applying the
receiving district's current debt service tax rate, if any, to the
territory that has been annexed shall be deducted.]
(h) The commissioner may authorize a district to receive
payments provided by Subchapter G, instead of Subsection (f), if
the commissioner determines that would result in greater payments
for the district. A determination by the commissioner is final and
may not be appealed.
(i) The funding provided under Subsection (f), (g), or (h)
is in addition to other funding the district receives through other
provisions of this code, including Chapters 41 and 42.
(j) The commissioner may adopt rules as necessary to
implement this section.
SECTION 2. Section 41.002(g), Education Code, is amended to
read as follows:
(g) The wealth per student that a district may have under
Subsection (e) is adjusted as follows:
AWPS = WPS X (((EWL/280,000 - 1) X DTR/1.17 [1.5]) + 1)
where:
"AWPS" is the district's wealth per student;
"WPS" is the district's wealth per student determined under
Subsection (e);
"EWL" is the equalized wealth level; and
"DTR" is the district's adopted maintenance and operations
tax rate for the current school year.
SECTION 3. Section 13.054(f), Education Code, as amended by
this Act, and Section 13.054(h), Education Code, as added by this
Act, apply only to an annexation that occurs on or after September
1, 2017. An annexation that occurs before that date is governed by
Section 13.054(f), Education Code, as that section existed at the
time the annexation occurred.
SECTION 4. Section 13.054(g), Education Code, as amended by
this Act, applies to a school district to which territory is annexed
under that section on or after July 1, 2016.
SECTION 5. The commissioner of education is required to
implement this Act only if the legislature appropriates money
specifically for that purpose. If the legislature does not
appropriate money specifically for that purpose, the commissioner
of education may, but is not required to, implement this Act using
other appropriations available for the purpose.
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, 2017.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1353 passed the Senate on
May 15, 2017, by the following vote: Yeas 31, Nays 0; and that the
Senate concurred in House amendments on May 25, 2017, by the
following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1353 passed the House, with
amendments, on May 23, 2017, by the following vote: Yeas 146,
Nays 0, one present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor