| 1 | 1 | | 86R812 KJE-D |
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| 2 | 2 | | By: King of Hemphill H.B. No. 665 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the use of current year property values under the public |
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| 8 | 8 | | school finance system. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 41.004(a), Education Code, is amended to |
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| 11 | 11 | | read as follows: |
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| 12 | 12 | | (a) Not later than July 15 of each year, using the estimates |
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| 13 | 13 | | [estimate] of enrollment and taxable property value under Section |
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| 14 | 14 | | 42.254, the commissioner shall review the wealth per student of |
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| 15 | 15 | | school districts in the state and shall notify: |
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| 16 | 16 | | (1) each district with wealth per student exceeding |
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| 17 | 17 | | the equalized wealth level; |
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| 18 | 18 | | (2) each district to which the commissioner proposes |
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| 19 | 19 | | to annex property detached from a district notified under |
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| 20 | 20 | | Subdivision (1), if necessary, under Subchapter G; and |
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| 21 | 21 | | (3) each district to which the commissioner proposes |
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| 22 | 22 | | to consolidate a district notified under Subdivision (1), if |
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| 23 | 23 | | necessary, under Subchapter H. |
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| 24 | 24 | | SECTION 2. Section 42.252(a), Education Code, is amended to |
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| 25 | 25 | | read as follows: |
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| 26 | 26 | | (a) Each school district's share of the Foundation School |
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| 27 | 27 | | Program is determined by the following formula: |
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| 28 | 28 | | LFA = TR X DPV |
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| 29 | 29 | | where: |
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| 30 | 30 | | "LFA" is the school district's local share; |
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| 31 | 31 | | "TR" is a tax rate which for each hundred dollars of valuation |
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| 32 | 32 | | is an effective tax rate of the amount equal to the product of the |
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| 33 | 33 | | state compression percentage, as determined under Section 42.2516, |
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| 34 | 34 | | multiplied by the lesser of: |
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| 35 | 35 | | (1) $1.50; or |
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| 36 | 36 | | (2) the maintenance and operations tax rate adopted by |
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| 37 | 37 | | the district for the 2005 tax year; and |
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| 38 | 38 | | "DPV" is the taxable value of property in the school district |
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| 39 | 39 | | for the current [preceding] tax year determined under Subchapter M, |
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| 40 | 40 | | Chapter 403, Government Code. |
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| 41 | 41 | | SECTION 3. This Act takes effect September 1, 2019. |
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