Texas 2019 - 86th Regular

Texas House Bill HB711 Compare Versions

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

Old	New	Differences
1	1	86R2419 GCB-F
2	2	By: Landgraf H.B. No. 711
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to certain adjustments to the taxable value of property of
8	8	certain school districts and the reduction of Foundation School
9	9	Program funds received by certain school districts.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 41.002, Education Code, is amended by
12	12	adding Subsections (c) and (d) to read as follows:
13	13	(c) For purposes of this chapter, the commissioner shall
14	14	adjust, in accordance with Section 42.25271, the taxable values of
15	15	a school district that meets the criteria for adjustment under that
16	16	section.
17	17	(d) For purposes of this chapter, the commissioner shall
18	18	adjust, in accordance with Section 42.25272, the taxable values of
19	19	a school district that meets the criteria for adjustment under that
20	20	section.
21	21	SECTION 2. Subchapter A, Chapter 42, Education Code, is
22	22	amended by adding Section 42.012 to read as follows:
23	23	Sec. 42.012. REDUCTION IN FUNDING OF CERTAIN DISTRICTS.
24	24	(a) Each school year the commissioner shall determine the
25	25	percentage of the cost of the Foundation School Program funded by
26	26	amounts paid to the state by school districts as a result of
27	27	attendance credits purchased under Subchapter D, Chapter 41.
28	28	(b) Notwithstanding any other provision of this chapter,
29	29	the total amount to which a school district is entitled under this
30	30	chapter is reduced by the percentage determined under Subsection
31	31	(a) unless the school district imposes a maintenance and operations
32	32	tax at the greatest rate allowed under Section 45.003(d).
33	33	SECTION 3. Subchapter E, Chapter 42, Education Code, is
34	34	amended by adding Sections 42.25271, 42.25272, and 42.25273 to read
35	35	as follows:
36	36	Sec. 42.25271. ADJUSTMENT FOR DISTRICT ENTITLED TO CERTAIN
37	37	FEDERAL FUNDING. For purposes of Chapters 41 and 46 and this
38	38	chapter, the commissioner shall adjust the taxable value of
39	39	property of a district for a school year as necessary to ensure the
40	40	district's wealth per student does not exceed the equalized wealth
41	41	level provided by Section 41.002, if for that school year the
42	42	district:
43	43	(1) has a campus that receives federal funding under a
44	44	concentration grant under 20 U.S.C. Section 6334; and
45	45	(2) would otherwise have a wealth per student that
46	46	exceeds the equalized wealth level provided by Section 41.002.
47	47	Sec. 42.25272. ADJUSTMENT FOR DISTRICT WITH TAXABLE VALUE
48	48	OF PROPERTY INCREASED BY ASSOCIATED MINERAL RIGHTS. For purposes
49	49	of Chapters 41 and 46 and this chapter, the commissioner shall
50	50	adjust the taxable value of property of a district for a school year
51	51	as necessary to ensure the district's wealth per student does not
52	52	exceed the equalized wealth level provided by Section 41.002, if
53	53	for that school year the district:
54	54	(1) is identified by the select committee under
55	55	Section 42.25273 as having a taxable value of property that is
56	56	unlikely to produce the projected district tax revenue per weighted
57	57	student because of a high prevalence of mineral rights associated
58	58	with the taxable property; and
59	59	(2) would otherwise have a wealth per student that
60	60	exceeds the equalized wealth level provided by Section 41.002.
61	61	Sec. 42.25273. SELECT COMMITTEE TO DETERMINE TAXABLE VALUE
62	62	OF PROPERTY OF CERTAIN DISTRICTS. (a) Not later than October 1 of
63	63	each year, the speaker of the house of representatives and the
64	64	lieutenant governor shall appoint a select committee as follows:
65	65	(1) the speaker of the house of representatives shall
66	66	appoint five members of the house of representatives as members of
67	67	the committee; and
68	68	(2) the lieutenant governor shall appoint five members
69	69	of the senate as members of the committee.
70	70	(b) At least three of the select committee members appointed
71	71	by the speaker of the house of representatives as provided by
72	72	Subsection (a)(1) and at least three of the select committee
73	73	members appointed by the lieutenant governor as provided by
74	74	Subsection (a)(2) must reside within the boundaries of State Board
75	75	of Education District 1, 3, or 15, as those districts are
76	76	established by Chapter 72 (H.B. 600), Acts of the 82nd Legislature,
77	77	Regular Session, 2011.
78	78	(c) For purposes of Section 42.25272, not later than June 1
79	79	of each year, the select committee shall:
80	80	(1) in consultation with the comptroller and the
81	81	Legislative Budget Board, identify districts with a taxable value
82	82	of property that is unlikely to produce the projected district tax
83	83	revenue per weighted student because of a high prevalence of
84	84	mineral rights associated with the taxable property; and
85	85	(2) provide to the commissioner a list of those
86	86	districts identified by the committee under Subdivision (1).
87	87	SECTION 4. Section 42.302(a), Education Code, is amended to
88	88	read as follows:
89	89	(a) Each school district is guaranteed a specified amount
90	90	per weighted student in state and local funds for each cent of tax
91	91	effort over that required for the district's local fund assignment
92	92	up to the maximum level specified in this subchapter. The amount
93	93	of state support, subject only to the maximum amount under Section
94	94	42.303, is determined by the formula:
95	95	GYA = (GL X WADA X DTR X 100) - LR
96	96	where:
97	97	"GYA" is the guaranteed yield amount of state funds to be
98	98	allocated to the district;
99	99	"GL" is the dollar amount guaranteed level of state and local
100	100	funds per weighted student per cent of tax effort, which is an
101	101	amount described by Subsection (a-1) or a greater amount for any
102	102	year provided by appropriation;
103	103	"WADA" is the number of students in weighted average daily
104	104	attendance, which is calculated by dividing the sum of the school
105	105	district's allotments under Subchapters B and C, less any allotment
106	106	to the district for transportation, any allotment under Section
107	107	42.158 or 42.160, and 50 percent of the adjustment under Section
108	108	42.102, by the basic allotment for the applicable year;
109	109	"DTR" is the district enrichment tax rate of the school
110	110	district, which is determined by subtracting the amounts specified
111	111	by Subsection (b) from the total amount of maintenance and
112	112	operations taxes collected by the school district for the
113	113	applicable school year and dividing the difference by the quotient
114	114	of the district's taxable value of property as determined under
115	115	Subchapter M, Chapter 403, Government Code, or, if applicable,
116	116	under Section 42.2521, 42.25271, or 42.25272, divided by 100; and
117	117	"LR" is the local revenue, which is determined by multiplying
118	118	"DTR" by the quotient of the district's taxable value of property as
119	119	determined under Subchapter M, Chapter 403, Government Code, or, if
120	120	applicable, under Section 42.2521, 42.25271, or 42.25272, divided
121	121	by 100.
122	122	SECTION 5. Section 46.003(a), Education Code, is amended to
123	123	read as follows:
124	124	(a) For each year, except as provided by Sections 46.005 and
125	125	46.006, a school district is guaranteed a specified amount per
126	126	student in state and local funds for each cent of tax effort, up to
127	127	the maximum rate under Subsection (b), to pay the principal of and
128	128	interest on eligible bonds issued to construct, acquire, renovate,
129	129	or improve an instructional facility. The amount of state support
130	130	is determined by the formula:
131	131	FYA = (FYL X ADA X BTR X 100) - (BTR X (DPV/100))
132	132	where:
133	133	"FYA" is the guaranteed facilities yield amount of state
134	134	funds allocated to the district for the year;
135	135	"FYL" is the dollar amount guaranteed level of state and
136	136	local funds per student per cent of tax effort, which is $35 or a
137	137	greater amount for any year provided by appropriation;
138	138	"ADA" is the greater of the number of students in average
139	139	daily attendance, as determined under Section 42.005, in the
140	140	district or 400;
141	141	"BTR" is the district's bond tax rate for the current year,
142	142	which is determined by dividing the amount budgeted by the district
143	143	for payment of eligible bonds by the quotient of the district's
144	144	taxable value of property as determined under Subchapter M, Chapter
145	145	403, Government Code, or, if applicable, Section 42.2521, 42.25271,
146	146	or 42.25272, divided by 100; and
147	147	"DPV" is the district's taxable value of property as
148	148	determined under Subchapter M, Chapter 403, Government Code, or, if
149	149	applicable, Section 42.2521, 42.25271, or 42.25272.
150	150	SECTION 6. Section 46.006(g), Education Code, is amended to
151	151	read as follows:
152	152	(g) In this section, "wealth per student" means a school
153	153	district's taxable value of property as determined under Subchapter
154	154	M, Chapter 403, Government Code, or, if applicable, Section
155	155	42.2521, 42.25271, or 42.25272, divided by the district's average
156	156	daily attendance as determined under Section 42.005.
157	157	SECTION 7. Section 46.032(a), Education Code, is amended to
158	158	read as follows:
159	159	(a) Each school district is guaranteed a specified amount
160	160	per student in state and local funds for each cent of tax effort to
161	161	pay the principal of and interest on eligible bonds. The amount of
162	162	state support, subject only to the maximum amount under Section
163	163	46.034, is determined by the formula:
164	164	EDA = (EDGL X ADA X EDTR X 100) - (EDTR X (DPV/100))
165	165	where:
166	166	"EDA" is the amount of state funds to be allocated to the
167	167	district for assistance with existing debt;
168	168	"EDGL" is the dollar amount guaranteed level of state and
169	169	local funds per student per cent of tax effort, which is the lesser
170	170	of:
171	171	(1) $40 or a greater amount for any year provided by
172	172	appropriation; or
173	173	(2) the amount that would result in a total additional
174	174	amount of state funds under this subchapter for the current year
175	175	equal to $60 million in excess of the state funds to which school
176	176	districts would have been entitled under this section if the
177	177	guaranteed level amount were $35;
178	178	"ADA" is the number of students in average daily attendance,
179	179	as determined under Section 42.005, in the district;
180	180	"EDTR" is the existing debt tax rate of the district, which is
181	181	determined by dividing the amount budgeted by the district for
182	182	payment of eligible bonds by the quotient of the district's taxable
183	183	value of property as determined under Subchapter M, Chapter 403,
184	184	Government Code, or, if applicable, under Section 42.2521, 42.2571,
185	185	or 42.25272, divided by 100; and
186	186	"DPV" is the district's taxable value of property as
187	187	determined under Subchapter M, Chapter 403, Government Code, or, if
188	188	applicable, under Section 42.2521, 42.25271, or 42.25272.
189	189	SECTION 8. This Act takes effect September 1, 2019.