Texas 2017 - 85th 1st C.S.

Texas House Bill HB285 Compare Versions

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1	1	85S10628 CAE/CJC-D
2	2	By: Murr H.B. No. 285
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to elimination of certain property taxes for school
8	8	district maintenance and operations and providing public education
9	9	funding through an increase in the state sales and use tax rate.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	ARTICLE 1. PUBLIC SCHOOL FINANCE
12	12	SECTION 1.01. Section 21.402(a), Education Code, as
13	13	effective September 1, 2017, is amended to read as follows:
14	14	(a) Except as provided by Subsection (e-1) or (f), a school
15	15	district must pay each classroom teacher, full-time librarian,
16	16	full-time school counselor certified under Subchapter B, or
17	17	full-time school nurse not less than the minimum monthly salary,
18	18	based on the employee's level of experience in addition to other
19	19	factors, as determined by commissioner rule, determined by the
20	20	following formula:
21	21	MS = SF x FS
22	22	where:
23	23	"MS" is the minimum monthly salary;
24	24	"SF" is the applicable salary factor specified by Subsection
25	25	(c); and
26	26	"FS" is the amount, as determined by the commissioner under
27	27	Subsection (b), of the basic allotment as provided by Section
28	28	42.101(a) or (b) [for a school district with a maintenance and
29	29	operations tax rate at least equal to the state maximum compressed
30	30	tax rate, as defined by Section 42.101(a)].
31	31	SECTION 1.02. Section 29.008(b), Education Code, is amended
32	32	to read as follows:
33	33	(b) Except as provided by Subsection (c), costs of an
34	34	approved contract for residential placement may be paid from a
35	35	combination of federal and[,] state[, and local] funds. [The local
36	36	share of the total contract cost for each student is that portion of
37	37	the local tax effort that exceeds the district's local fund
38	38	assignment under Section 42.252, divided by the average daily
39	39	attendance in the district. If the contract involves a private
40	40	facility, the state share of the total contract cost is that amount
41	41	remaining after subtracting the local share. If the contract
42	42	involves a public facility, the state share is that amount
43	43	remaining after subtracting the local share from the portion of the
44	44	contract that involves the costs of instructional and related
45	45	services. For purposes of this subsection, "local tax effort"
46	46	means the total amount of money generated by taxes imposed for debt
47	47	service and maintenance and operation less any amounts paid into a
48	48	tax increment fund under Chapter 311, Tax Code.]
49	49	SECTION 1.03. Sections 29.203(b) and (g), Education Code,
50	50	are amended to read as follows:
51	51	(b) A school district is entitled to the allotment provided
52	52	by Section 42.157 for each eligible student using a public
53	53	education grant. A [If the district has a wealth per student
54	54	greater than the guaranteed wealth level but less than the
55	55	equalized wealth level, a] school district is entitled under rules
56	56	adopted by the commissioner to additional state aid in an amount
57	57	equal to the difference between the cost to the district of
58	58	providing services to a student using a public education grant and
59	59	the sum of the state aid received because of the allotment under
60	60	Section 42.157 and money from the available school fund
61	61	attributable to the student.
62	62	(g) In this section, "guaranteed[:
63	63	[(1) "Equalized wealth level" has the meaning assigned
64	64	by Section 41.001.
65	65	[(2) "Guaranteed] wealth level" means a wealth per
66	66	student equal to the dollar amount guaranteed level of state and
67	67	local funds per weighted student per cent of tax effort, as provided
68	68	by Section 42.302, multiplied by 10,000.
69	69	[(3) "Wealth per student" has the meaning assigned by
70	70	Section 41.001.]
71	71	SECTION 1.04. Section 42.009(b), Education Code, is amended
72	72	to read as follows:
73	73	(b) In making the determinations regarding funding levels
74	74	required by Subsection (a), the commissioner shall:
75	75	(1) make adjustments as necessary to reflect changes
76	76	in a school district's enrichment [maintenance and operations] tax
77	77	rate; and
78	78	(2) [for a district required to take action under
79	79	Chapter 41 to reduce its wealth per student to the equalized wealth
80	80	level, base the determinations on the district's net funding levels
81	81	after deducting any amounts required to be expended by the district
82	82	to comply with Chapter 41; and
83	83	[(3)] determine a district's weighted average daily
84	84	attendance in accordance with this chapter as it existed on January
85	85	1, 2011.
86	86	SECTION 1.05. Section 42.101(a), Education Code, is amended
87	87	to read as follows:
88	88	(a) For each student in average daily attendance, not
89	89	including the time students spend each day in special education
90	90	programs in an instructional arrangement other than mainstream or
91	91	career and technology education programs, for which an additional
92	92	allotment is made under Subchapter C, a district is entitled to an
93	93	allotment equal to [the lesser of] $4,765 [or the amount that
94	94	results from the following formula:
95	95	[A = $4,765 X (DCR/MCR)
96	96	[where:
97	97	["A" is the allotment to which a district is entitled;
98	98	["DCR" is the district's compressed tax rate, which is the
99	99	product of the state compression percentage, as determined under
100	100	Section 42.2516, multiplied by the maintenance and operations tax
101	101	rate adopted by the district for the 2005 tax year; and
102	102	["MCR" is the state maximum compressed tax rate, which is the
103	103	product of the state compression percentage, as determined under
104	104	Section 42.2516, multiplied by $1.50].
105	105	SECTION 1.06. Section 42.251(b), Education Code, is amended
106	106	to read as follows:
107	107	(b) The program shall be financed by:
108	108	(1) [ad valorem tax revenue generated by an equalized
109	109	uniform school district effort;
110	110	[(2)] ad valorem tax revenue generated by local school
111	111	district effort as provided by Subchapter F [in excess of the
112	112	equalized uniform school district effort];
113	113	(2) [(3)] state available school funds distributed in
114	114	accordance with law; and
115	115	(3) [(4)] state funds appropriated for the purposes of
116	116	public school education and allocated to each district in an amount
117	117	sufficient to finance the cost of each district's Foundation School
118	118	Program not covered by other funds specified in this subsection.
119	119	SECTION 1.07. Section 42.2521(a), Education Code, is
120	120	amended to read as follows:
121	121	(a) For purposes of Chapter [Chapters 41 and] 46 and this
122	122	chapter, and to the extent money specifically authorized to be used
123	123	under this section is available, the commissioner shall adjust the
124	124	taxable value of property in a school district that, due to factors
125	125	beyond the control of the board of trustees, experiences a rapid
126	126	decline in the tax base used in calculating taxable values in excess
127	127	of four percent of the tax base used in the preceding year.
128	128	SECTION 1.08. Section 42.2523(a), Education Code, is
129	129	amended to read as follows:
130	130	(a) For purposes of Chapter [Chapters 41 and] 46 and this
131	131	chapter, the commissioner shall adjust the taxable value of
132	132	property of a school district all or part of which is located in an
133	133	area declared a disaster area by the governor under Chapter 418,
134	134	Government Code, as necessary to ensure that the district receives
135	135	funding based as soon as possible on property values as affected by
136	136	the disaster.
137	137	SECTION 1.09. Sections 42.2524(c) and (d), Education Code,
138	138	are amended to read as follows:
139	139	(c) The commissioner may provide reimbursement under this
140	140	section only if funds are available for that purpose from [as
141	141	follows]:
142	142	(1) [reimbursement for a school district not required
143	143	to take action under Chapter 41 may be provided from:
144	144	[(A)] amounts appropriated for that purpose,
145	145	including amounts appropriated for those districts for that purpose
146	146	to the disaster contingency fund established under Section 418.073,
147	147	Government Code; or
148	148	(2) [(B)] Foundation School Program funds available
149	149	for that purpose, based on a determination by the commissioner that
150	150	the amount appropriated for the Foundation School Program,
151	151	including the facilities component as provided by Chapter 46,
152	152	exceeds the amount to which districts are entitled under this
153	153	chapter and Chapter 46[; and
154	154	[(2) reimbursement for a school district required to
155	155	take action under Chapter 41 may be provided from funds described by
156	156	Subdivision (1)(B) if funds remain available after fully
157	157	reimbursing each school district described by Subdivision (1) for
158	158	its disaster remediation costs].
159	159	(d) If the amount of money available for purposes of
160	160	reimbursing school districts [not required to take action under
161	161	Chapter 41] is not sufficient to fully reimburse each district's
162	162	disaster remediation costs, the commissioner shall reduce the
163	163	amount of assistance provided to each of those districts
164	164	proportionately. [If the amount of money available for purposes of
165	165	reimbursing school districts required to take action under Chapter
166	166	41 is not sufficient to fully reimburse each district's disaster
167	167	remediation costs, the commissioner shall reduce the amount of
168	168	assistance provided to each of those districts proportionately.]
169	169	SECTION 1.10. Sections 42.253(a) and (c), Education Code,
170	170	are amended to read as follows:
171	171	(a) For each school year the commissioner shall determine:
172	172	(1) the amount of money to which a school district is
173	173	entitled under Subchapters B and C;
174	174	(2) the amount of money to which a school district is
175	175	entitled under Subchapter F;
176	176	(3) the amount of money allocated to the district from
177	177	the available school fund; and
178	178	(4) [the amount of each district's tier one local share
179	179	under Section 42.252; and
180	180	[(5)] the amount of each district's tier two local
181	181	share under Section 42.302.
182	182	(c) Each school district is entitled to an amount equal to
183	183	the difference for that district between the sum of Subsections
184	184	(a)(1) and (a)(2) and the sum of Subsections (a)(3) and[,] (a)(4)[,
185	185	and (a)(5)].
186	186	SECTION 1.11. Section 42.253(h), Education Code, as
187	187	effective September 1, 2017, is amended to read as follows:
188	188	(h) If the amount appropriated for the Foundation School
189	189	Program for the second year of a state fiscal biennium is less than
190	190	the amount to which school districts and open-enrollment charter
191	191	schools are entitled for that year, the commissioner shall certify
192	192	the amount of the difference to the Legislative Budget Board not
193	193	later than January 1 of the second year of the state fiscal
194	194	biennium. The Legislative Budget Board shall propose to the
195	195	legislature that the certified amount be transferred to the
196	196	foundation school fund from the economic stabilization fund and
197	197	appropriated for the purpose of increases in allocations under this
198	198	subsection. If the legislature fails during the regular session to
199	199	enact the proposed transfer and appropriation and there are not
200	200	funds available under Subsection (j), the commissioner shall adjust
201	201	the total amounts due to each school district and open-enrollment
202	202	charter school under this chapter [and the total amounts necessary
203	203	for each school district to comply with the requirements of Chapter
204	204	41] by an amount determined by applying to each district and school
205	205	the same percentage adjustment to the total amount of state and
206	206	local revenue due to the district or school under this chapter [and
207	207	Chapter 41] so that the total amount of the adjustment to all
208	208	districts and schools results in an amount equal to the total
209	209	adjustment necessary. The following fiscal year,[:
210	210	[(1)] a district's or school's entitlement under this
211	211	section is increased by an amount equal to the adjustment made under
212	212	this subsection[; and
213	213	[(2) the amount necessary for a district to comply
214	214	with the requirements of Chapter 41 is reduced by an amount
215	215	necessary to ensure a district's full recovery of the adjustment
216	216	made under this subsection].
217	217	SECTION 1.12. Sections 42.2531(a), (b), and (c), Education
218	218	Code, are amended to read as follows:
219	219	(a) The commissioner may make adjustments to amounts due to
220	220	a school district under this chapter or Chapter 46, [or to amounts
221	221	necessary for a district to comply with the requirements of Chapter
222	222	41,] as provided by this section.
223	223	(b) A school district that has a major taxpayer, as
224	224	determined by the commissioner, that because of a protest of the
225	225	valuation of the taxpayer's property fails to pay all or a portion
226	226	of the ad valorem taxes due to the district may apply to the
227	227	commissioner to have the district's taxable value of property or ad
228	228	valorem tax collections adjusted for purposes of this chapter or
229	229	Chapter [41 or] 46. The commissioner may make the adjustment only
230	230	to the extent the commissioner determines that making the
231	231	adjustment will not:
232	232	(1) in the fiscal year in which the adjustment is made,
233	233	cause the amount to which school districts are entitled under this
234	234	chapter to exceed the amount appropriated for purposes of the
235	235	Foundation School Program for that year; and
236	236	(2) if the adjustment is made in the first year of a
237	237	state fiscal biennium, cause the amount to which school districts
238	238	are entitled under this chapter for the second year of the biennium
239	239	to exceed the amount appropriated for purposes of the Foundation
240	240	School Program for that year.
241	241	(c) The commissioner shall recover the benefit of any
242	242	adjustment made under this section by making offsetting adjustments
243	243	in the school district's taxable value of property or ad valorem tax
244	244	collections for purposes of this chapter or Chapter [41 or] 46 on a
245	245	final determination of the taxable value of property that was the
246	246	basis of the original adjustment, or in the second school year
247	247	following the year in which the adjustment is made, whichever is
248	248	earlier.
249	249	SECTION 1.13. Section 42.257(b), Education Code, is amended
250	250	to read as follows:
251	251	(b) If the district would have received a greater amount
252	252	from the foundation school fund for the applicable school year
253	253	using the adjusted value, the commissioner shall add the difference
254	254	to subsequent distributions to the district from the foundation
255	255	school fund. [An adjustment does not affect the local fund
256	256	assignment of any other district.]
257	257	SECTION 1.14. Section 42.260(b), Education Code, as
258	258	effective September 1, 2017, is amended to read as follows:
259	259	(b) The amount of additional funds to which each school
260	260	district or participating charter school is entitled due to the
261	261	increases in formula funding made by H.B. No. 3343, Acts of the 77th
262	262	Legislature, Regular Session, 2001, and any subsequent legislation
263	263	amending the provisions amended by that Act that increase formula
264	264	funding under [Chapter 41 and] this chapter to school districts and
265	265	charter schools is available for purposes of Subsection (c).
266	266	SECTION 1.15. Sections 42.302(a), (a-1), (a-2), (b), and
267	267	(d), Education Code, are amended to read as follows:
268	268	(a) Each school district is guaranteed a specified amount
269	269	per weighted student in state and local funds for each cent of tax
270	270	effort [over that required for the district's local fund
271	271	assignment] up to the maximum level specified in this subchapter.
272	272	The amount of state support, subject only to the maximum amount
273	273	under Section 42.303, is determined by the formula:
274	274	GYA = (GL X WADA X DTR X 100) - LR
275	275	where:
276	276	"GYA" is the guaranteed yield amount of state funds to be
277	277	allocated to the district;
278	278	"GL" is the dollar amount guaranteed level of state and local
279	279	funds per weighted student per cent of tax effort, which is an
280	280	amount described by Subsection (a-1) or a greater amount for any
281	281	year provided by appropriation;
282	282	"WADA" is the number of students in weighted average daily
283	283	attendance, which is calculated by dividing the sum of the school
284	284	district's allotments under Subchapters B and C, less any allotment
285	285	to the district for transportation, any allotment under Section
286	286	42.158 or 42.160, and 50 percent of the adjustment under Section
287	287	42.102, by the basic allotment for the applicable year;
288	288	"DTR" is the district enrichment tax rate of the school
289	289	district, which is determined by subtracting the amounts specified
290	290	by Subsection (b) from the total amount of enrichment [maintenance
291	291	and operations] taxes collected by the school district for the
292	292	applicable school year and dividing the difference by the quotient
293	293	of the district's taxable value of property as determined under
294	294	Subchapter M, Chapter 403, Government Code, or, if applicable,
295	295	under Section 42.2521, divided by 100; and
296	296	"LR" is the local revenue, which is determined by multiplying
297	297	"DTR" by the quotient of the district's taxable value of property as
298	298	determined under Subchapter M, Chapter 403, Government Code, or, if
299	299	applicable, under Section 42.2521, divided by 100.
300	300	(a-1) For purposes of Subsection (a), the dollar amount
301	301	guaranteed level of state and local funds per weighted student per
302	302	cent of tax effort ("GL") for a school district is:
303	303	(1) the greater of the amount of district tax revenue
304	304	per weighted student per cent of tax effort that would be available
305	305	to the Austin Independent School District, as determined by the
306	306	commissioner in cooperation with the Legislative Budget Board, if
307	307	the reduction of the limitation on tax increases as provided by
308	308	Section 11.26(a-1), (a-2), or (a-3), Tax Code, did not apply, or the
309	309	amount of district tax revenue per weighted student per cent of tax
310	310	effort used for purposes of this subdivision in the preceding
311	311	school year, for the first six cents of [by which] the district's
312	312	enrichment [maintenance and operations] tax rate [exceeds the rate
313	313	equal to the sum of the product of the state compression percentage,
314	314	as determined under Section 42.2516, multiplied by the maintenance
315	315	and operations tax rate adopted by the district for the 2005 tax
316	316	year and any additional tax effort included in calculating the
317	317	district's compressed tax rate under Section 42.101(a-1)]; and
318	318	(2) $31.95, for the district's enrichment [maintenance
319	319	and operations] tax effort that exceeds the amount of tax effort
320	320	described by Subdivision (1).
321	321	(a-2) The limitation on district enrichment tax rate
322	322	("DTR") under Section 42.303 does not apply to the district's
323	323	[maintenance and operations] tax effort described by Subsection
324	324	(a-1)(1).
325	325	(b) In computing the district enrichment tax rate of a
326	326	school district, the total amount of enrichment [maintenance and
327	327	operations] taxes collected by the school district does not include
328	328	the amount of[:
329	329	[(1) the district's local fund assignment under
330	330	Section 42.252; or
331	331	[(2)] taxes paid into a tax increment fund under
332	332	Chapter 311, Tax Code.
333	333	(d) For purposes of this section, the total amount of
334	334	enrichment [maintenance and operations] taxes collected for an
335	335	applicable school year by a school district with alternate tax
336	336	dates, as authorized by Section 26.135, Tax Code, is the amount of
337	337	enrichment taxes collected on or after January 1 of the year in
338	338	which the school year begins and not later than December 31 of the
339	339	same year.
340	340	SECTION 1.16. Section 42.303, Education Code, is amended to
341	341	read as follows:
342	342	Sec. 42.303. LIMITATION ON ENRICHMENT TAX RATE. The
343	343	district enrichment tax rate ("DTR") under Section 42.302 may not
344	344	exceed $0.17 [the amount] per $100 of valuation [by which the
345	345	maximum rate permitted under Section 45.003 exceeds the rate used
346	346	to determine the district's local share under Section 42.252, or a
347	347	greater amount for any year provided by appropriation].
348	348	SECTION 1.17. Sections 44.004(c) and (c-1), Education Code,
349	349	are amended to read as follows:
350	350	(c) The notice of public meeting to discuss and adopt the
351	351	budget and the proposed tax rate may not be smaller than one-quarter
352	352	page of a standard-size or a tabloid-size newspaper, and the
353	353	headline on the notice must be in 18-point or larger type. Subject
354	354	to Subsection (d), the notice must:
355	355	(1) contain a statement in the following form:
356	356	"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
357	357	"The (name of school district) will hold a public meeting at
358	358	(time, date, year) in (name of room, building, physical location,
359	359	city, state). The purpose of this meeting is to discuss the school
360	360	district's budget that will determine the tax rate that will be
361	361	adopted. Public participation in the discussion is invited." The
362	362	statement of the purpose of the meeting must be in bold type. In
363	363	reduced type, the notice must state: "The tax rate that is
364	364	ultimately adopted at this meeting or at a separate meeting at a
365	365	later date may not exceed the proposed rate shown below unless the
366	366	district publishes a revised notice containing the same information
367	367	and comparisons set out below and holds another public meeting to
368	368	discuss the revised notice.";
369	369	(2) contain a section entitled "Comparison of Proposed
370	370	Budget with Last Year's Budget," which must show the difference,
371	371	expressed as a percent increase or decrease, as applicable, in the
372	372	amounts budgeted for the preceding fiscal year and the amount
373	373	budgeted for the fiscal year that begins in the current tax year for
374	374	each of the following:
375	375	(A) enrichment [maintenance and operations];
376	376	(B) debt service; and
377	377	(C) total expenditures;
378	378	(3) contain a section entitled "Total Appraised Value
379	379	and Total Taxable Value," which must show the total appraised value
380	380	and the total taxable value of all property and the total appraised
381	381	value and the total taxable value of new property taxable by the
382	382	district in the preceding tax year and the current tax year as
383	383	calculated under Section 26.04, Tax Code;
384	384	(4) contain a statement of the total amount of the
385	385	outstanding and unpaid bonded indebtedness of the school district;
386	386	(5) contain a section entitled "Comparison of Proposed
387	387	Rates with Last Year's Rates," which must:
388	388	(A) show in rows the tax rates described by
389	389	Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
390	390	property, for columns entitled "Enrichment," ["Maintenance &
391	391	Operations,"] "Interest & Sinking Fund," and "Total," which is the
392	392	sum of "Enrichment" ["Maintenance & Operations"] and "Interest &
393	393	Sinking Fund":
394	394	(i) the school district's "Last Year's
395	395	Rate";
396	396	(ii) the "Rate to Maintain Same Level of
397	397	Enrichment [Maintenance & Operations] Revenue & Pay Debt Service,"
398	398	which:
399	399	(a) in the case of "Enrichment,"
400	400	["Maintenance & Operations,"] is the tax rate that, when applied to
401	401	the current taxable value for the district, as certified by the
402	402	chief appraiser under Section 26.01, Tax Code, and as adjusted to
403	403	reflect changes made by the chief appraiser as of the time the
404	404	notice is prepared, would impose taxes in an amount that, when added
405	405	to state funds to be distributed to the district under Subchapter F,
406	406	Chapter 42, would provide the same amount of enrichment funds
407	407	[maintenance and operations taxes and state funds distributed under
408	408	Chapter 42] per student in average daily attendance for the
409	409	applicable school year that was available to the district in the
410	410	preceding school year; and
411	411	(b) in the case of "Interest & Sinking
412	412	Fund," is the tax rate that, when applied to the current taxable
413	413	value for the district, as certified by the chief appraiser under
414	414	Section 26.01, Tax Code, and as adjusted to reflect changes made by
415	415	the chief appraiser as of the time the notice is prepared, and when
416	416	multiplied by the district's anticipated collection rate, would
417	417	impose taxes in an amount that, when added to state funds to be
418	418	distributed to the district under Chapter 46 and any excess taxes
419	419	collected to service the district's debt during the preceding tax
420	420	year but not used for that purpose during that year, would provide
421	421	the amount required to service the district's debt; and
422	422	(iii) the "Proposed Rate";
423	423	(B) contain fourth and fifth columns aligned with
424	424	the columns required by Paragraph (A) that show, for each row
425	425	required by Paragraph (A):
426	426	(i) the "Local Revenue per Student," which
427	427	is computed by multiplying the district's total taxable value of
428	428	property, as certified by the chief appraiser for the applicable
429	429	school year under Section 26.01, Tax Code, and as adjusted to
430	430	reflect changes made by the chief appraiser as of the time the
431	431	notice is prepared, by the total tax rate, and dividing the product
432	432	by the number of students in average daily attendance in the
433	433	district for the applicable school year; and
434	434	(ii) the "State Revenue per Student," which
435	435	is computed by determining the amount of state aid received or to be
436	436	received by the district under Chapters 42, 43, and 46 and dividing
437	437	that amount by the number of students in average daily attendance in
438	438	the district for the applicable school year; and
439	439	(C) contain an asterisk after each calculation
440	440	for "Interest & Sinking Fund" and a footnote to the section that, in
441	441	reduced type, states "The Interest & Sinking Fund tax revenue is
442	442	used to pay for bonded indebtedness on construction, equipment, or
443	443	both. The bonds, and the tax rate necessary to pay those bonds,
444	444	were approved by the voters of this district.";
445	445	(6) contain a section entitled "Comparison of Proposed
446	446	Levy with Last Year's Levy on Average Residence," which must:
447	447	(A) show in rows the information described by
448	448	Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
449	449	entitled "Last Year" and "This Year":
450	450	(i) "Average Market Value of Residences,"
451	451	determined using the same group of residences for each year;
452	452	(ii) "Average Taxable Value of Residences,"
453	453	determined after taking into account the limitation on the
454	454	appraised value of residences under Section 23.23, Tax Code, and
455	455	after subtracting all homestead exemptions applicable in each year,
456	456	other than exemptions available only to disabled persons or persons
457	457	65 years of age or older or their surviving spouses, and using the
458	458	same group of residences for each year;
459	459	(iii) "Last Year's Rate Versus Proposed
460	460	Rate per $100 Value"; and
461	461	(iv) "Taxes Due on Average Residence,"
462	462	determined using the same group of residences for each year; and
463	463	(B) contain the following information:
464	464	"Increase (Decrease) in Taxes" expressed in dollars and cents,
465	465	which is computed by subtracting the "Taxes Due on Average
466	466	Residence" for the preceding tax year from the "Taxes Due on Average
467	467	Residence" for the current tax year;
468	468	(7) contain the following statement in bold print:
469	469	"Under state law, the dollar amount of school taxes imposed on the
470	470	residence of a person 65 years of age or older or of the surviving
471	471	spouse of such a person, if the surviving spouse was 55 years of age
472	472	or older when the person died, may not be increased above the amount
473	473	paid in the first year after the person turned 65, regardless of
474	474	changes in tax rate or property value.";
475	475	(8) contain the following statement in bold print:
476	476	"Notice of Rollback Rate: The highest tax rate the district can
477	477	adopt before requiring voter approval at an election is (the school
478	478	district rollback rate determined under Section 26.08, Tax Code).
479	479	This election will be automatically held if the district adopts a
480	480	rate in excess of the rollback rate of (the school district rollback
481	481	rate)."; and
482	482	(9) contain a section entitled "Fund Balances," which
483	483	must include the estimated amount of interest and sinking fund
484	484	balances and the estimated amount of maintenance and operation or
485	485	general fund balances remaining at the end of the current fiscal
486	486	year that are not encumbered with or by corresponding debt
487	487	obligation, less estimated funds necessary for the operation of the
488	488	district before the receipt of the first payment under Chapter 42 in
489	489	the succeeding school year.
490	490	(c-1) The notice described by Subsection (c) must state in a
491	491	distinct row or on a separate or individual line for each of the
492	492	following taxes:
493	493	(1) the proposed rate of the school district's
494	494	enrichment [maintenance] tax described by Section 45.003, under the
495	495	heading "Enrichment [Maintenance] Tax"; and
496	496	(2) if the school district has issued ad valorem tax
497	497	bonds under Section 45.001, the proposed rate of the tax to pay for
498	498	the bonds, under the heading "School Debt Service Tax Approved by
499	499	Local Voters."
500	500	SECTION 1.18. The heading to Subchapter A, Chapter 45,
501	501	Education Code, is amended to read as follows:
502	502	SUBCHAPTER A. TAX BONDS AND ENRICHMENT [MAINTENANCE] TAXES
503	503	SECTION 1.19. Section 45.002, Education Code, is amended to
504	504	read as follows:
505	505	Sec. 45.002. ENRICHMENT [MAINTENANCE] TAXES. The governing
506	506	board of an independent school district, including the city council
507	507	or commission that has jurisdiction over a municipally controlled
508	508	independent school district, the governing board of a rural high
509	509	school district, and the commissioners court of a county, on behalf
510	510	of each common school district under its jurisdiction, may levy,
511	511	assess, and collect annual ad valorem taxes for the further
512	512	enrichment [maintenance] of public schools in the district, subject
513	513	to Section 45.003.
514	514	SECTION 1.20. Section 45.003(d), Education Code, is amended
515	515	to read as follows:
516	516	(d) A proposition submitted to authorize the levy of
517	517	enrichment [maintenance] taxes must include the question of whether
518	518	the governing board or commissioners court may levy, assess, and
519	519	collect annual ad valorem taxes for the enrichment [further
520	520	maintenance] of public schools, at a rate not to exceed the rate
521	521	stated in the proposition. For any year, the enrichment
522	522	[maintenance] tax rate per $100 of taxable value adopted by the
523	523	district may not exceed the rate [equal to the sum] of $0.17 [and
524	524	the product of the state compression percentage, as determined
525	525	under Section 42.2516, multiplied by $1.50].
526	526	SECTION 1.21. Section 45.104(a), Education Code, is amended
527	527	to read as follows:
528	528	(a) The board of trustees of any school district may pledge
529	529	its delinquent taxes levied for maintenance purposes for specific
530	530	past[, current, and future] school years or levied for enrichment
531	531	purposes for specific past, current, and future school years as
532	532	security for a loan, and may evidence any such loan with negotiable
533	533	notes, and the delinquent taxes pledged shall be applied against
534	534	the principal and interest of the loan. Negotiable notes issued
535	535	under this subsection must mature not more than 20 years from their
536	536	date.
537	537	SECTION 1.22. Section 45.108(a), Education Code, is amended
538	538	to read as follows:
539	539	(a) Independent or consolidated school districts may borrow
540	540	money for the purpose of paying maintenance expenses and may
541	541	evidence those loans with negotiable or nonnegotiable notes, except
542	542	that the loans may not at any time exceed 75 percent of the previous
543	543	year's income. The notes may be payable from and secured by a lien
544	544	on and pledge of any available funds of the district, including
545	545	proceeds of an enrichment [a maintenance] tax. The term
546	546	"maintenance expenses" or "maintenance expenditures" as used in
547	547	this section means any lawful expenditure of the school district
548	548	other than payment of principal of and interest on bonds. The term
549	549	includes expenditures relating to notes issued to refund notes
550	550	previously issued under this section if the refunding notes are
551	551	coterminous with the refunded obligation. The term also includes
552	552	all costs incurred in connection with environmental cleanup and
553	553	asbestos cleanup and removal programs implemented by school
554	554	districts or in connection with the maintenance, repair,
555	555	rehabilitation, or replacement of heating, air conditioning,
556	556	water, sanitation, roofing, flooring, electric, or other building
557	557	systems of existing school properties. Notes issued pursuant to
558	558	this section may be issued to mature in not more than 20 years from
559	559	their date. Notes issued for a term longer than one year must be
560	560	treated as "debt" as defined in Section 26.012(7), Tax Code.
561	561	SECTION 1.23. Section 45.109(c), Education Code, is amended
562	562	to read as follows:
563	563	(c) The consideration for a contract under this section may
564	564	be paid from any source available to the independent school
565	565	district. [If voted as provided by this section, the district may
566	566	pledge to the payment of the contract an annual maintenance tax in
567	567	an amount sufficient, without limitation, to provide all of the
568	568	consideration. If voted and pledged, the maintenance tax shall be
569	569	assessed, levied, and collected annually in the same manner as
570	570	provided by general law applicable to independent school districts
571	571	for other maintenance taxes.]
572	572	SECTION 1.24. Section 45.156(c), Education Code, is amended
573	573	to read as follows:
574	574	(c) The consideration payable by the district under a
575	575	contract may be paid from any source available to the district. [If
576	576	voted, the district may pledge to the payment of the contract an
577	577	annual maintenance tax in an amount sufficient, without limitation,
578	578	to provide all or part of the consideration. If voted and pledged,
579	579	the maintenance tax shall be assessed, levied, and collected
580	580	annually in the same manner as provided by general law applicable to
581	581	independent school districts for other maintenance taxes. A
582	582	maintenance tax may not be pledged to the payment of any contract or
583	583	assessed, levied, or collected unless an election is held in the
584	584	district, and the maintenance tax for that purpose is favorably
585	585	voted by a majority of the qualified voters of the district. The
586	586	election order for an election under this subsection must include
587	587	the polling place or places and any other matters considered
588	588	advisable by the board of trustees.]
589	589	SECTION 1.25. Section 45.261(a), Education Code, is amended
590	590	to read as follows:
591	591	(a) If the commissioner orders payment from the money
592	592	appropriated to the Foundation School Program on behalf of a school
593	593	district [that is not required to reduce its wealth per student
594	594	under Chapter 41], the commissioner shall direct the comptroller to
595	595	withhold the amount paid from the first state money payable to the
596	596	district. [If the commissioner orders payment from the money
597	597	appropriated to the Foundation School Program on behalf of a school
598	598	district that is required to reduce its wealth per student under
599	599	Chapter 41, the commissioner shall increase amounts due from the
600	600	district under that chapter in a total amount equal to the amount of
601	601	payments made on behalf of the district under this subchapter.]
602	602	Amounts withheld [or received] under this subsection shall be used
603	603	for the Foundation School Program.
604	604	SECTION 1.26. Section 403.302(a), Government Code, is
605	605	amended to read as follows:
606	606	(a) The comptroller shall conduct a study using comparable
607	607	sales and generally accepted auditing and sampling techniques to
608	608	determine the total taxable value of all property in each school
609	609	district. The study shall determine the taxable value of all
610	610	property and of each category of property in the district and the
611	611	productivity value of all land that qualifies for appraisal on the
612	612	basis of its productive capacity and for which the owner has applied
613	613	for and received a productivity appraisal. [The comptroller shall
614	614	make appropriate adjustments in the study to account for actions
615	615	taken under Chapter 41, Education Code.]
616	616	SECTION 1.27. Section 1579.251(a), Insurance Code, is
617	617	amended to read as follows:
618	618	(a) The state shall assist employees of participating
619	619	school districts and charter schools in the purchase of group
620	620	health coverage under this chapter by providing for each covered
621	621	employee the amount of $900 each state fiscal year or a greater
622	622	amount as provided by the General Appropriations Act. The state
623	623	contribution shall be distributed through the school finance
624	624	formulas under Chapter [Chapters 41 and] 42, Education Code, and
625	625	used by school districts and charter schools as provided by Section
626	626	42.260, Education Code.
627	627	SECTION 1.28. Section 21.01, Tax Code, is amended to read as
628	628	follows:
629	629	Sec. 21.01. REAL PROPERTY. Real property is taxable by a
630	630	taxing unit if located in the unit on January 1[, except as provided
631	631	by Chapter 41, Education Code].
632	632	SECTION 1.29. Section 21.02(a), Tax Code, is amended to
633	633	read as follows:
634	634	(a) Except as provided by Subsection [Subsections (b) and]
635	635	(e) and by Sections 21.021, 21.04, and 21.05, tangible personal
636	636	property is taxable by a taxing unit if:
637	637	(1) it is located in the unit on January 1 for more
638	638	than a temporary period;
639	639	(2) it normally is located in the unit, even though it
640	640	is outside the unit on January 1, if it is outside the unit only
641	641	temporarily;
642	642	(3) it normally is returned to the unit between uses
643	643	elsewhere and is not located in any one place for more than a
644	644	temporary period; or
645	645	(4) the owner resides (for property not used for
646	646	business purposes) or maintains the owner's principal place of
647	647	business in this state (for property used for business purposes) in
648	648	the unit and the property is taxable in this state but does not have
649	649	a taxable situs pursuant to Subdivisions (1) through (3) [of this
650	650	subsection].
651	651	SECTION 1.30. Section 26.05(b), Tax Code, is amended to
652	652	read as follows:
653	653	(b) A taxing unit may not impose property taxes in any year
654	654	until the governing body has adopted a tax rate for that year, and
655	655	the annual tax rate must be set by ordinance, resolution, or order,
656	656	depending on the method prescribed by law for adoption of a law by
657	657	the governing body. The vote on the ordinance, resolution, or order
658	658	setting the tax rate must be separate from the vote adopting the
659	659	budget. For a taxing unit other than a school district, the vote on
660	660	the ordinance, resolution, or order setting a tax rate that exceeds
661	661	the effective tax rate must be a record vote, and at least 60
662	662	percent of the members of the governing body must vote in favor of
663	663	the ordinance, resolution, or order. For a school district, the
664	664	vote on the ordinance, resolution, or order setting a tax rate that
665	665	exceeds the sum of the effective [maintenance and operations] tax
666	666	rate of the district [as determined under Section 26.08(i)] and the
667	667	district's current debt rate must be a record vote, and at least 60
668	668	percent of the members of the governing body must vote in favor of
669	669	the ordinance, resolution, or order. A motion to adopt an
670	670	ordinance, resolution, or order setting a tax rate that exceeds the
671	671	effective tax rate must be made in the following form: "I move that
672	672	the property tax rate be increased by the adoption of a tax rate of
673	673	(specify tax rate), which is effectively a (insert percentage by
674	674	which the proposed tax rate exceeds the effective tax rate) percent
675	675	increase in the tax rate." If the ordinance, resolution, or order
676	676	sets a tax rate that, if applied to the total taxable value, will
677	677	impose an amount of taxes to fund maintenance and operation
678	678	expenditures of the taxing unit that exceeds the amount of taxes
679	679	imposed for that purpose in the preceding year, the taxing unit
680	680	must:
681	681	(1) include in the ordinance, resolution, or order in
682	682	type larger than the type used in any other portion of the document:
683	683	(A) the following statement: "THIS TAX RATE WILL
684	684	RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S
685	685	TAX RATE."; and
686	686	(B) if the tax rate exceeds the effective
687	687	maintenance and operations rate, the following statement: "THE TAX
688	688	RATE WILL EFFECTIVELY BE RAISED BY (INSERT PERCENTAGE BY WHICH THE
689	689	TAX RATE EXCEEDS THE EFFECTIVE MAINTENANCE AND OPERATIONS RATE)
690	690	PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A
691	691	$100,000 HOME BY APPROXIMATELY $(Insert amount)."; and
692	692	(2) include on the home page of any Internet website
693	693	operated by the unit:
694	694	(A) the following statement: "(Insert name of
695	695	unit) ADOPTED A TAX RATE THAT WILL RAISE MORE TAXES FOR MAINTENANCE
696	696	AND OPERATIONS THAN LAST YEAR'S TAX RATE"; and
697	697	(B) if the tax rate exceeds the effective
698	698	maintenance and operations rate, the following statement: "THE TAX
699	699	RATE WILL EFFECTIVELY BE RAISED BY (INSERT PERCENTAGE BY WHICH THE
700	700	TAX RATE EXCEEDS THE EFFECTIVE MAINTENANCE AND OPERATIONS RATE)
701	701	PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A
702	702	$100,000 HOME BY APPROXIMATELY $(Insert amount)."
703	703	SECTION 1.31. Section 312.210(b), Tax Code, is amended to
704	704	read as follows:
705	705	(b) A tax abatement agreement with the owner of real
706	706	property or tangible personal property that is located in the
707	707	reinvestment zone described by Subsection (a) and in a school
708	708	district [that has a wealth per student that does not exceed the
709	709	equalized wealth level] must exempt from taxation:
710	710	(1) the portion of the value of the property in the
711	711	amount specified in the joint agreement among the municipality,
712	712	county, and junior college district; and
713	713	(2) an amount equal to 10 percent of the maximum
714	714	portion of the value of the property that may under Section
715	715	312.204(a) be otherwise exempted from taxation.
716	716	SECTION 1.32. The following provisions are repealed:
717	717	(1) Section 13.054(f), Education Code;
718	718	(2) Chapter 41, Education Code;
719	719	(3) Sections 42.101(a-1) and (c), Education Code;
720	720	(4) Section 42.158(e), Education Code;
721	721	(5) Section 42.160(b), Education Code;
722	722	(6) Section 42.2516, Education Code, as effective
723	723	September 1, 2017;
724	724	(7) Sections 42.2518 and 42.252, Education Code;
725	725	(8) Section 42.2524(f), Education Code;
726	726	(9) Section 42.2528(b), Education Code;
727	727	(10) Section 42.262, Education Code;
728	728	(11) Section 42.302(f), Education Code;
729	729	(12) Section 45.003(f), Education Code;
730	730	(13) Section 45.109(d), Education Code;
731	731	(14) Section 45.111(b), Education Code;
732	732	(15) Sections 21.02(b) and (c), Tax Code;
733	733	(16) Section 25.25(k), Tax Code;
734	734	(17) Section 26.08(i), Tax Code, as effective
735	735	September 1, 2017;
736	736	(18) Sections 26.08(n), (o), and (p), Tax Code; and
737	737	(19) Section 312.210(c), Tax Code.
738	738	ARTICLE 2. STATE SALES AND USE TAX INCREASE FOR PUBLIC EDUCATION
739	739	SECTION 2.01. Section 151.051(b), Tax Code, is amended to
740	740	read as follows:
741	741	(b) The sales tax rate is 12 [6-1/4] percent of the sales
742	742	price of the taxable item sold.
743	743	SECTION 2.02. Section 151.801, Tax Code, is amended by
744	744	amending Subsection (a) and adding Subsection (b-1) to read as
745	745	follows:
746	746	(a) Except for the amounts allocated under Subsections (b),
747	747	(b-1), (c), and (c-2), all proceeds from the collection of the taxes
748	748	imposed by this chapter shall be deposited to the credit of the
749	749	general revenue fund.
750	750	(b-1) Notwithstanding any other provision of this section,
751	751	an amount of revenue under this chapter equal to the proceeds, other
752	752	than the proceeds allocated under Subsection (b), derived from the
753	753	collection of taxes imposed by this chapter attributable to the
754	754	portion of the tax rate in excess of 6.25 percent of the sales price
755	755	of the taxable item sold shall be deposited to the credit of the
756	756	foundation school fund.
757	757	SECTION 2.03. The changes in law made by this article do not
758	758	affect taxes imposed before the effective date of this article, and
759	759	the law in effect before that date is continued in effect for
760	760	purposes of the liability for and collection of those taxes.
761	761	ARTICLE 3. APPLICABILITY; EFFECTIVE DATE
762	762	SECTION 3.01. (a) Chapter 42, Education Code, as amended by
763	763	this Act, applies beginning with the 2019-2020 school year.
764	764	(b) The repeal by this Act of Chapter 41, Education Code,
765	765	does not affect the obligations of a school district under that
766	766	chapter, as it existed before repeal by this Act, for the 2018-2019
767	767	school year.
768	768	SECTION 3.02. This Act takes effect January 1, 2019.