By: King of Hemphill H.B. No. 387
A BILL TO BE ENTITLED
AN ACT
relating to the extension of additional state aid for tax reduction
provided to certain school districts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. EXTENSION OF ADDITIONAL STATE AID FOR TAX REDUCTION
SECTION 1.01. Section 42.2516, Education Code, is amended
by amending Subsections (b) and (c-1) and adding Subsections (j),
(k), (l), and (m) to read as follows:
(b) Notwithstanding any other provision of this title, but
subject to Subsections (j), (k), (l), and (m), a school district
that imposes a maintenance and operations tax at a rate at least
equal to the product of the state compression percentage multiplied
by the maintenance and operations tax rate adopted by the district
for the 2005 tax year is entitled to at least the amount of state
revenue necessary to provide the district with the sum of:
(1) the percentage specified by Subsection (i) of the
amount, as calculated under Subsection (e), of state and local
revenue per student in weighted average daily attendance for
maintenance and operations that the district would have received
during the 2009-2010 school year under Chapter 41 and this chapter,
as those chapters existed on January 1, 2009, at a maintenance and
operations tax rate equal to the product of the state compression
percentage for that year multiplied by the maintenance and
operations tax rate adopted by the district for the 2005 tax year;
(2) the percentage specified by Subsection (i) of an
amount equal to the product of $120 multiplied by the number of
students in weighted average daily attendance in the district; and
(3) any amount to which the district is entitled under
Section 42.106.
(c-1) Revenue generated by the portion of a district's
maintenance and operations tax rate included in calculating the
district's compressed tax rate under Section 42.101(a-1) and local
share under Section 42.252(a-1) is included in determining the
amount to which a district is entitled under this section, but may
not increase the total amount of revenue per weighted student to
which the district is entitled under this section. This subsection
expires September 1, 2019 [2017].
(j) If the commissioner determines that a school district
would receive additional state aid under this section for the
2017-2018 or 2018-2019 school year in an amount that is four percent
or less of the total amount of funding the district is entitled to
receive under this chapter and Chapter 41, the district is
ineligible to receive additional state aid under this section for
the year for which the determination is made and any subsequent
school year. This subsection expires September 1, 2019.
(k) If the commissioner determines that a school district is
not entitled to additional state aid under this section for the
2016-2017 or a subsequent school year, the district is ineligible
to receive additional state aid under this section for any school
year subsequent to the year for which the determination was made.
This subsection expires September 1, 2019.
(l) A school district is ineligible for additional state aid
under this section if the district imposes a maintenance and
operations tax at a rate that is less than $1.00 per $100 of taxable
value. This subsection expires September 1, 2019.
(m) The commissioner shall provide additional state aid
under this section only if the legislature makes a specific
appropriation to the agency for that purpose. The amount
appropriated for purposes of this section may not exceed $200
million for the state fiscal biennium ending August 31, 2019. This
subsection expires September 1, 2019.
SECTION 1.02. Section 42.2518(a), Education Code, is
amended to read as follows:
(a) For the 2015-2016 through 2018-2019 [and 2016-2017]
school years, a school district is entitled to additional state aid
to the extent that state and local revenue under this chapter and
Chapter 41 is less than the state and local revenue that would have
been available to the district under Chapter 41 and this chapter as
those chapters existed on September 1, 2015, if the increase in the
residence homestead exemption under Section 1-b(c), Article VIII,
Texas Constitution, and the additional limitation on tax increases
under Section 1-b(d) of that article as proposed by S.J.R. 1, 84th
Legislature, Regular Session, 2015, had not occurred.
SECTION 1.03. Effective September 1, 2019, Section
42.2518(a), Education Code, is amended to read as follows:
(a) Beginning with the 2019-2020 school year [For the
2015-2016 and 2016-2017 school years], a school district is
entitled to additional state aid to the extent that state and local
revenue under this chapter and Chapter 41 is less than the state and
local revenue that would have been available to the district under
Chapter 41 and this chapter as those chapters existed on September
1, 2015, excluding any state aid that would have been provided under
former Section 42.2516, if the increase in the residence homestead
exemption under Section 1-b(c), Article VIII, Texas Constitution,
and the additional limitation on tax increases under Section 1-b(d)
of that article as proposed by S.J.R. 1, 84th Legislature, Regular
Session, 2015, had not occurred.
SECTION 1.04. Notwithstanding Chapter 4 (S.B. 1), Acts of
the 82nd Legislature, 1st Called Session, 2011, the following
provisions are effective September 1, 2019:
(1) Section 57.03, Chapter 4 (S.B. 1), Acts of the 82nd
Legislature, 1st Called Session, 2011, which amended Section
12.106(a), Education Code;
(2) Section 57.18, Chapter 4 (S.B. 1), Acts of the 82nd
Legislature, 1st Called Session, 2011, which amended the heading to
Section 42.2516, Education Code;
(3) Section 57.19, Chapter 4 (S.B. 1), Acts of the 82nd
Legislature, 1st Called Session, 2011, which amended Section
42.2516(a), Education Code;
(4) Section 57.23, Chapter 4 (S.B. 1), Acts of the 82nd
Legislature, 1st Called Session, 2011, which amended Section
42.253(h), Education Code;
(5) Section 57.29, Chapter 4 (S.B. 1), Acts of the 82nd
Legislature, 1st Called Session, 2011, which amended Section
26.08(i), Tax Code;
(6) Section 57.32(a), Chapter 4 (S.B. 1), Acts of the
82nd Legislature, 1st Called Session, 2011, which repealed various
provisions of the Education Code; and
(7) Section 57.32(b), Chapter 4 (S.B. 1), Acts of the
82nd Legislature, 1st Called Session, 2011, which repealed Sections
26.08(i-1) and (j), Tax Code.
SECTION 1.05. Section 42.2518(e), Education Code, is
repealed.
SECTION 1.06. Section 18, Chapter 465 (S.B. 1), Acts of the
84th Legislature, Regular Session, 2015, which added Section
42.2518, Education Code, effective September 1, 2017, is repealed.
ARTICLE 2. PROVISION OF ADDITIONAL STATE AID FOR TAX REDUCTION
SECTION 2.01. Subchapter E, Chapter 42, Education Code, is
amended by adding Section 42.25162 to read as follows:
Sec. 42.25162. ADDITIONAL STATE AID FOR CERTAIN SCHOOL
DISTRICTS. (a) This section applies only to a school district that
received for the 2016-2017 school year additional state aid under
Section 42.2516.
(b) Except as provided by Subsection (c), (d), (e), or (f),
a school district to which this section applies is entitled to the
additional state aid for the 2017-2018 and 2018-2019 school years
that would have been provided to the district for those school years
under Section 42.2516, as that section existed on January 1, 2017,
based on the percentage reduction for purposes of former Section
42.2516(i) established by appropriation for the 2016-2017 school
year.
(c) If the commissioner determines that a school district
would receive additional state aid under this section for the
2017-2018 or 2018-2019 school year in an amount that is four percent
or less of the total amount of funding the district is entitled to
receive under this chapter and Chapter 41, the district is
ineligible to receive additional state aid under this section for
the year for which the determination is made and any subsequent
school year.
(d) If the commissioner determines that a school district is
not entitled to additional state aid under this section for the
2017-2018 school year, the district is ineligible to receive
additional state aid under this section for the 2018-2019 school
year.
(e) A school district is ineligible for additional state aid
under this section if the district imposes a maintenance and
operations tax at a rate that is less than $1.00 per $100 of taxable
value.
(f) The commissio
ner shall provide additional state aid
under this section only if the legislature makes a specific
appropriation to the agency for that purpose. The amount
appropriated for purposes of this section may not exceed $200
million for the state fiscal biennium ending August 31, 2019.
(g) Additional funding to which a school district is
entitled under Section 42.2523 or 42.2524 is in addition to the
amount of funding to which the district is entitled under this
section.
(h) For purposes of Section 26.08(i), Tax Code, state funds
distributed to a district under this section are included.
(i) The commissioner shall adopt rules necessary to
implement this section.
(j) This section expires September 1, 2019.
SECTION 2.02. Section 42.2518(a), Education Code, as
effective September 1, 2017, is amended to read as follows:
(a) Beginning with the 2017-2018 school year, a school
district is entitled to additional state aid to the extent that
state and local revenue under this chapter and Chapter 41 is less
than the state and local revenue that would have been available to
the district under Chapter 41 and this chapter as those chapters
existed on September 1, 2015, [excluding any state aid that would
have been provided under former Section 42.2516,] if the increase
in the residence homestead exemption under Section 1-b(c), Article
VIII, Texas Constitution, and the additional limitation on tax
increases under Section 1-b(d) of that article as proposed by
S.J.R. 1, 84th Legislature, Regular Session, 2015, had not
occurred.
SECTION 2.03. Effective September 1, 2019, Section
42.2518(a), Education Code, as effective September 1, 2017, is
amended to read as follows:
(a) Beginning with the 2019-2020 [2017-2018] school year, a
school district is entitled to additional state aid to the extent
that state and local revenue under this chapter and Chapter 41 is
less than the state and local revenue that would have been available
to the district under Chapter 41 and this chapter as those chapters
existed on September 1, 2015, excluding any state aid that would
have been provided under former Section 42.25162 [42.2516], if the
increase in the residence homestead exemption under Section 1-b(c),
Article VIII, Texas Constitution, and the additional limitation on
tax increases under Section 1-b(d) of that article as proposed by
S.J.R. 1, 84th Legislature, Regular Session, 2015, had not
occurred.
ARTICLE 3. EFFECTIVE DATE
SECTION 3.01. (a) Except as otherwise provided by this
subsection, 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 takes
effect immediately, Article 2 of this Act has no effect.
(b) If this Act does not receive the vote necessary for
immediate effect, this Act, except as otherwise provided by this
subsection, takes effect on the 91st day after the last day of the
legislative session. If this Act takes effect on the 91st day after
the last day of the legislative session, Article 1 of this Act has
no effect.