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