Texas 2019 - 86th Regular

Texas House Bill HB4100 Compare Versions

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

Old	New	Differences
1	1	By: Capriglione H.B. No. 4100
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, and J, Chapter 39, and Chapter 39A;
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 13.054(i), Education Code, is amended to
67	67	read as follows:
68	68	(i) The funding provided under Subsection (f), (g), or (h)
69	69	is in addition to other funding the district receives through other
70	70	provisions of this code, including funding the district receives
71	71	under Chapter [Chapters 41 and] 42.
72	72	SECTION 4. Section 21.410(h), Education Code, is amended to
73	73	read as follows:
74	74	(h) A grant a school district receives under this section is
75	75	in addition to any funding the district receives under Chapter 42.
76	76	The commissioner shall distribute funds under this section with the
77	77	Foundation School Program payment to which the district is entitled
78	78	as soon as practicable after the end of the school year as
79	79	determined by the commissioner. [A district to which Chapter 41
80	80	applies is entitled to the grants paid under this section.] The
81	81	commissioner shall determine the timing of the distribution of
82	82	grants to a district that does not receive Foundation School
83	83	Program payments.
84	84	SECTION 5. Section 21.411(h), Education Code, is amended to
85	85	read as follows:
86	86	(h) A grant a school district receives under this section is
87	87	in addition to any funding the district receives under Chapter 42.
88	88	The commissioner shall distribute funds under this section with the
89	89	Foundation School Program payment to which the district is entitled
90	90	as soon as practicable after the end of the school year as
91	91	determined by the commissioner. [A district to which Chapter 41
92	92	applies is entitled to the grants paid under this section.] The
93	93	commissioner shall determine the timing of the distribution of
94	94	grants to a district that does not receive Foundation School
95	95	Program payments.
96	96	SECTION 6. Section 21.412(h), Education Code, is amended to
97	97	read as follows:
98	98	(h) A grant a school district receives under this section is
99	99	in addition to any funding the district receives under Chapter 42.
100	100	The commissioner shall distribute funds under this section with the
101	101	Foundation School Program payment to which the district is entitled
102	102	as soon as practicable after the end of the school year as
103	103	determined by the commissioner. [A district to which Chapter 41
104	104	applies is entitled to the grants paid under this section.] The
105	105	commissioner shall determine the timing of the distribution of
106	106	grants to a district that does not receive Foundation School
107	107	Program payments.
108	108	SECTION 7. Section 21.413(h), Education Code, is amended to
109	109	read as follows:
110	110	(h) A grant a school district receives under this section is
111	111	in addition to any funding the district receives under Chapter 42.
112	112	The commissioner shall distribute funds under this section with the
113	113	Foundation School Program payment to which the district is entitled
114	114	as soon as practicable after the end of the school year as
115	115	determined by the commissioner. [A district to which Chapter 41
116	116	applies is entitled to the grants paid under this section.] The
117	117	commissioner shall determine the timing of the distribution of
118	118	grants to a district that does not receive Foundation School
119	119	Program payments.
120	120	SECTION 8. Section 25.081(f), Education Code, as added by
121	121	Chapter 851 (H.B. 2442), Acts of the 85th Legislature, Regular
122	122	Session, 2017, is amended to read as follows:
123	123	(f) The commissioner may proportionally reduce the amount
124	124	of funding a district receives under Chapter [41,] 42[,] or 46 and
125	125	the average daily attendance calculation for the district if the
126	126	district operates on a calendar that provides fewer minutes of
127	127	operation than required under Subsection (a).
128	128	SECTION 9. Section 29.087(j), Education Code, is amended to
129	129	read as follows:
130	130	(j) For purposes of funding under Chapters [41,] 42[,] and
131	131	46, a student attending a program authorized by this section may be
132	132	counted in attendance only for the actual number of hours each
133	133	school day the student attends the program, in accordance with
134	134	Section 25.081.
135	135	SECTION 10. Section 29.203(b), Education Code, is amended
136	136	to read as follows:
137	137	(b) A school district is entitled to the allotment provided
138	138	by Section 42.157 for each eligible student using a public
139	139	education grant. [If the district has a wealth per student greater
140	140	than the guaranteed wealth level but less than the equalized wealth
141	141	level, a school district is entitled under rules adopted by the
142	142	commissioner to additional state aid in an amount equal to the
143	143	difference between the cost to the district of providing services
144	144	to a student using a public education grant and the sum of the state
145	145	aid received because of the allotment under Section 42.157 and
146	146	money from the available school fund attributable to the student.]
147	147	SECTION 11. Section 37.0061, Education Code, is amended to
148	148	read as follows:
149	149	Sec. 37.0061. FUNDING FOR ALTERNATIVE EDUCATION SERVICES IN
150	150	JUVENILE RESIDENTIAL FACILITIES. A school district that provides
151	151	education services to pre-adjudicated and post-adjudicated
152	152	students who are confined by court order in a juvenile residential
153	153	facility operated by a juvenile board is entitled to count such
154	154	students in the district's average daily attendance for purposes of
155	155	receipt of state funds under the Foundation School Program. [If the
156	156	district has a wealth per student greater than the guaranteed
157	157	wealth level but less than the equalized wealth level, the district
158	158	in which the student is enrolled on the date a court orders the
159	159	student to be confined to a juvenile residential facility shall
160	160	transfer to the district providing education services an amount
161	161	equal to the difference between the average Foundation School
162	162	Program costs per student of the district providing education
163	163	services and the sum of the state aid and the money from the
164	164	available school fund received by the district that is attributable
165	165	to the student for the portion of the school year for which the
166	166	district provides education services to the student.]
167	167	SECTION 12. Section 42.009(b), Education Code, is amended
168	168	to read as follows:
169	169	(b) In making the determinations regarding funding levels
170	170	required by Subsection (a), the commissioner shall:
171	171	(1) make adjustments as necessary to reflect changes
172	172	in a school district's maintenance and operations tax rate; and
173	173	(2) [for a district required to take action under
174	174	Chapter 41 to reduce its wealth per student to the equalized wealth
175	175	level, base the determinations on the district's net funding levels
176	176	after deducting any amounts required to be expended by the district
177	177	to comply with Chapter 41; and
178	178	[(3)] determine a district's weighted average daily
179	179	attendance in accordance with this chapter as it existed on January
180	180	1, 2011.
181	181	SECTION 13. Section 42.158(e), Education Code, is amended
182	182	to read as follows:
183	183	(e) [A school district that is required to take action under
184	184	Chapter 41 to reduce its wealth per student to the equalized wealth
185	185	level is entitled to a credit, in the amount of the allotments to
186	186	which the district is entitled under this section, against the
187	187	total amount required under Section 41.093 for the district to
188	188	purchase attendance credits.] A school district that is otherwise
189	189	ineligible for state aid under this chapter is entitled to receive
190	190	allotments under this section.
191	191	SECTION 14. Section 42.160(b), Education Code, is amended
192	192	to read as follows:
193	193	(b) [A school district that is required to take action under
194	194	Chapter 41 to reduce its wealth per student to the equalized wealth
195	195	level is entitled to a credit, in the amount of the allotments to
196	196	which the district is entitled under this section, against the
197	197	total amount required under Section 41.093 for the district to
198	198	purchase attendance credits.] A school district that is otherwise
199	199	ineligible for state aid under this chapter is entitled to receive
200	200	allotments under this section.
201	201	SECTION 15. Section 42.2511(b), Education Code, is amended
202	202	to read as follows:
203	203	(b) Notwithstanding any other provision of this chapter [or
204	204	Chapter 41], a school district subject to this section is entitled
205	205	to receive for each student in average daily attendance at the
206	206	campus described by Subsection (a) an amount equivalent to the
207	207	difference, if the difference results in increased funding,
208	208	between:
209	209	(1) the amount described by Section 12.106; and
210	210	(2) the amount to which the district would be entitled
211	211	under this chapter.
212	212	SECTION 16. Section 42.2518(a), Education Code, is amended
213	213	to read as follows:
214	214	(a) Beginning with the 2017-2018 school year, a school
215	215	district is entitled to additional state aid to the extent that
216	216	state and local revenue under this chapter [and Chapter 41] is less
217	217	than the state and local revenue that would have been available to
218	218	the district under [Chapter 41 and] this chapter as it [those
219	219	chapters] existed on September 1, 2015, excluding any state aid
220	220	that would have been provided under former Section 42.2516, if the
221	221	increase in the residence homestead exemption under Section 1-b(c),
222	222	Article VIII, Texas Constitution, and the additional limitation on
223	223	tax increases under Section 1-b(d) of that article as proposed by
224	224	S.J.R. 1, 84th Legislature, Regular Session, 2015, had not
225	225	occurred.
226	226	SECTION 17. Section 42.2521(a), Education Code, is amended
227	227	to read as follows:
228	228	(a) For purposes of Chapter [Chapters 41 and] 46 and this
229	229	chapter, and to the extent money specifically authorized to be used
230	230	under this section is available, the commissioner shall adjust the
231	231	taxable value of property in a school district that, due to factors
232	232	beyond the control of the board of trustees, experiences a rapid
233	233	decline in the tax base used in calculating taxable values in excess
234	234	of four percent of the tax base used in the preceding year.
235	235	SECTION 18. Section 42.2523(a), Education Code, is amended
236	236	to read as follows:
237	237	(a) For purposes of Chapter [Chapters 41 and] 46 and this
238	238	chapter, the commissioner shall adjust the taxable value of
239	239	property of a school district all or part of which is located in an
240	240	area declared a disaster area by the governor under Chapter 418,
241	241	Government Code, as necessary to ensure that the district receives
242	242	funding based as soon as possible on property values as affected by
243	243	the disaster.
244	244	SECTION 19. Sections 42.2524(c) and (d), Education Code,
245	245	are amended to read as follows:
246	246	(c) The commissioner may provide reimbursement under this
247	247	section only if funds are available for that purpose [as follows:
248	248	[(1) reimbursement for a school district not required
249	249	to take action under Chapter 41 may be provided] from:
250	250	(1) [(A)] amounts appropriated for that purpose,
251	251	including amounts appropriated for those districts for that purpose
252	252	to the disaster contingency fund established under Section 418.073,
253	253	Government Code; or
254	254	(2) [(B)] Foundation School Program funds available
255	255	for that purpose, based on a determination by the commissioner that
256	256	the amount appropriated for the Foundation School Program,
257	257	including the facilities component as provided by Chapter 46,
258	258	exceeds the amount to which districts are entitled under this
259	259	chapter and Chapter 46[; and
260	260	[(2) reimbursement for a school district required to
261	261	take action under Chapter 41 may be provided from funds described by
262	262	Subdivision (1)(B) if funds remain available after fully
263	263	reimbursing each school district described by Subdivision (1) for
264	264	its disaster remediation costs].
265	265	(d) If the amount of money available for purposes of
266	266	reimbursing school districts [not required to take action under
267	267	Chapter 41] is not sufficient to fully reimburse each district's
268	268	disaster remediation costs, the commissioner shall reduce the
269	269	amount of assistance provided to each of those districts
270	270	proportionately. [If the amount of money available for purposes of
271	271	reimbursing school districts required to take action under Chapter
272	272	41 is not sufficient to fully reimburse each district's disaster
273	273	remediation costs, the commissioner shall reduce the amount of
274	274	assistance provided to each of those districts proportionately.]
275	275	SECTION 20. Section 42.253(h), Education Code, is amended
276	276	to read as follows:
277	277	(h) If the amount appropriated for the Foundation School
278	278	Program for the second year of a state fiscal biennium is less than
279	279	the amount to which school districts and open-enrollment charter
280	280	schools are entitled for that year, the commissioner shall certify
281	281	the amount of the difference to the Legislative Budget Board not
282	282	later than January 1 of the second year of the state fiscal
283	283	biennium. The Legislative Budget Board shall propose to the
284	284	legislature that the certified amount be transferred to the
285	285	foundation school fund from the economic stabilization fund and
286	286	appropriated for the purpose of increases in allocations under this
287	287	subsection. If the legislature fails during the regular session to
288	288	enact the proposed transfer and appropriation and there are not
289	289	funds available under Subsection (j), the commissioner shall adjust
290	290	the total amounts due to each school district and open-enrollment
291	291	charter school under this chapter [and the total amounts necessary
292	292	for each school district to comply with the requirements of Chapter
293	293	41] by an amount determined by applying to each district and school
294	294	the same percentage adjustment to the total amount of state and
295	295	local revenue due to the district or school under this chapter [and
296	296	Chapter 41] so that the total amount of the adjustment to all
297	297	districts and schools results in an amount equal to the total
298	298	adjustment necessary. The following fiscal year,[:
299	299	[(1)] a district's or school's entitlement under this
300	300	section is increased by an amount equal to the adjustment made under
301	301	this subsection[; and
302	302	[(2) the amount necessary for a district to comply
303	303	with the requirements of Chapter 41 is reduced by an amount
304	304	necessary to ensure a district's full recovery of the adjustment
305	305	made under this subsection].
306	306	SECTION 21. Sections 42.2531(a), (b), and (c), Education
307	307	Code, are amended to read as follows:
308	308	(a) The commissioner may make adjustments to amounts due to
309	309	a school district under this chapter or Chapter 46[ , or to amounts
310	310	necessary for a district to comply with the requirements of Chapter
311	311	41,] as provided by this section.
312	312	(b) A school district that has a major taxpayer, as
313	313	determined by the commissioner, that because of a protest of the
314	314	valuation of the taxpayer's property fails to pay all or a portion
315	315	of the ad valorem taxes due to the district may apply to the
316	316	commissioner to have the district's taxable value of property or ad
317	317	valorem tax collections adjusted for purposes of this chapter or
318	318	Chapter [41 or] 46. The commissioner may make the adjustment only to
319	319	the extent the commissioner determines that making the adjustment
320	320	will not:
321	321	(1) in the fiscal year in which the adjustment is made,
322	322	cause the amount to which school districts are entitled under this
323	323	chapter to exceed the amount appropriated for purposes of the
324	324	Foundation School Program for that year; and
325	325	(2) if the adjustment is made in the first year of a
326	326	state fiscal biennium, cause the amount to which school districts
327	327	are entitled under this chapter for the second year of the biennium
328	328	to exceed the amount appropriated for purposes of the Foundation
329	329	School Program for that year.
330	330	(c) The commissioner shall recover the benefit of any
331	331	adjustment made under this section by making offsetting adjustments
332	332	in the school district's taxable value of property or ad valorem tax
333	333	collections for purposes of this chapter or Chapter [41 or] 46 on a
334	334	final determination of the taxable value of property that was the
335	335	basis of the original adjustment, or in the second school year
336	336	following the year in which the adjustment is made, whichever is
337	337	earlier.
338	338	SECTION 22. Section 42.258(a-1), Education Code, is amended
339	339	to read as follows:
340	340	(a-1) Notwithstanding Subsection (a), the agency may
341	341	recover an overallocation of state funds over a period not to exceed
342	342	the subsequent five school years if the commissioner determines
343	343	that the overallocation was the result of exceptional circumstances
344	344	reasonably caused by statutory changes to former Chapter 41,
345	345	Chapter [or] 46, or this chapter and related reporting
346	346	requirements.
347	347	SECTION 23. Section 42.260(b), Education Code, is amended
348	348	to read as follows:
349	349	(b) The amount of additional funds to which each school
350	350	district or participating charter school is entitled due to the
351	351	increases in formula funding made by Chapter 1187 (H.B. No. 3343),
352	352	Acts of the 77th Legislature, Regular Session, 2001, and any
353	353	subsequent legislation amending the provisions amended by that Act
354	354	that increase formula funding under [Chapter 41 and] this chapter
355	355	to school districts and charter schools is available for purposes
356	356	of Subsection (c).
357	357	SECTION 24. Section 45.251(2), Education Code, is amended
358	358	to read as follows:
359	359	(2) "Foundation School Program" means the program
360	360	established under Chapters [41,] 42[,] and 46, or any successor
361	361	program of state appropriated funding for school districts in this
362	362	state.
363	363	SECTION 25. Section 45.261(a), Education Code, is amended
364	364	to read as follows:
365	365	(a) If the commissioner orders payment from the money
366	366	appropriated to the Foundation School Program on behalf of a school
367	367	district [that is not required to reduce its wealth per student
368	368	under Chapter 41], the commissioner shall direct the comptroller to
369	369	withhold the amount paid from the first state money payable to the
370	370	district. If the commissioner orders payment from the money
371	371	appropriated to the Foundation School Program on behalf of a school
372	372	district that is not entitled to state assistance under Chapter 42
373	373	[required to reduce its wealth per student under Chapter 41], the
374	374	commissioner shall order [increase amounts due from] the district
375	375	to remit to the commissioner an [under that chapter in a total]
376	376	amount equal to the amount of payments made on behalf of the
377	377	district under this subchapter. Amounts withheld or received under
378	378	this subsection shall be used for the Foundation School Program.
379	379	SECTION 26. Section 403.302(a), Government Code, is amended
380	380	to read as follows:
381	381	(a) The comptroller shall conduct a study using comparable
382	382	sales and generally accepted auditing and sampling techniques to
383	383	determine the total taxable value of all property in each school
384	384	district. The study shall determine the taxable value of all
385	385	property and of each category of property in the district and the
386	386	productivity value of all land that qualifies for appraisal on the
387	387	basis of its productive capacity and for which the owner has applied
388	388	for and received a productivity appraisal. [The comptroller shall
389	389	make appropriate adjustments in the study to account for actions
390	390	taken under Chapter 41, Education Code.]
391	391	SECTION 27. Section 1579.251(a), Insurance Code, is amended
392	392	to read as follows:
393	393	(a) The state shall assist employees of participating
394	394	school districts and charter schools in the purchase of group
395	395	health coverage under this chapter by providing for each covered
396	396	employee the amount of $900 each state fiscal year or a greater
397	397	amount as provided by the General Appropriations Act. The state
398	398	contribution shall be distributed through the school finance
399	399	formulas under Chapter [Chapters 41 and] 42, Education Code, and
400	400	used by school districts and charter schools as provided by Section
401	401	42.260, Education Code.
402	402	SECTION 28. Section 21.01, Tax Code, is amended to read as
403	403	follows:
404	404	Sec. 21.01. REAL PROPERTY. Real property is taxable by a
405	405	taxing unit if located in the unit on January 1[, except as provided
406	406	by Chapter 41, Education Code].
407	407	SECTION 29. Section 21.02(a), Tax Code, is amended to read
408	408	as follows:
409	409	(a) Except as provided by Subsection [Subsections (b) and]
410	410	(e) and by Sections 21.021, 21.04, and 21.05, tangible personal
411	411	property is taxable by a taxing unit if:
412	412	(1) it is located in the unit on January 1 for more
413	413	than a temporary period;
414	414	(2) it normally is located in the unit, even though it
415	415	is outside the unit on January 1, if it is outside the unit only
416	416	temporarily;
417	417	(3) it normally is returned to the unit between uses
418	418	elsewhere and is not located in any one place for more than a
419	419	temporary period; or
420	420	(4) the owner resides (for property not used for
421	421	business purposes) or maintains the owner's principal place of
422	422	business in this state (for property used for business purposes) in
423	423	the unit and the property is taxable in this state but does not have
424	424	a taxable situs pursuant to Subdivisions (1) through (3) of this
425	425	subsection.
426	426	SECTION 30. Section 26.08(i), Tax Code, is amended to read
427	427	as follows:
428	428	(i) For purposes of this section, the effective maintenance
429	429	and operations tax rate of a school district is the tax rate that,
430	430	applied to the current total value for the district, would impose
431	431	taxes in an amount that, when added to state funds that would be
432	432	distributed to the district under Chapter 42, Education Code, for
433	433	the school year beginning in the current tax year using that tax
434	434	rate, would provide the same amount of state funds distributed
435	435	under Chapter 42, Education Code, and maintenance and operations
436	436	taxes of the district per student in weighted average daily
437	437	attendance for that school year that would have been available to
438	438	the district in the preceding year if the funding elements for
439	439	Chapter [Chapters 41 and] 42, Education Code, for the current year
440	440	had been in effect for the preceding year.
441	441	SECTION 31. Section 312.210(b), Tax Code, is amended to
442	442	read as follows:
443	443	(b) A tax abatement agreement with the owner of real
444	444	property or tangible personal property that is located in the
445	445	reinvestment zone described by Subsection (a) and in a school
446	446	district [that has a wealth per student that does not exceed the
447	447	equalized wealth level] must exempt from taxation:
448	448	(1) the portion of the value of the property in the
449	449	amount specified in the joint agreement among the municipality,
450	450	county, and junior college district; and
451	451	(2) an amount equal to 10 percent of the maximum
452	452	portion of the value of the property that may under Section
453	453	312.204(a) be otherwise exempted from taxation.
454	454	SECTION 32. The following laws are repealed:
455	455	(1) Chapter 41, Education Code;
456	456	(2) Sections 7.055(b)(34), 8.056, 29.203(g), and
457	457	42.2524(f), Education Code; and
458	458	(3) Sections 21.02(b) and (c), 25.25(k), and
459	459	312.210(c), Tax Code.
460	460	SECTION 33. This Act takes effect September 1, 2019.