Texas 2023 - 88th Regular

Texas House Bill HB4344 Compare Versions

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1	1	88R13117 KJE-F
2	2	By: González of El Paso H.B. No. 4344
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the state assistance with the payment of debt under the
8	8	public school finance system.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. The heading to Chapter 46, Education Code, is
11	11	amended to read as follows:
12	12	CHAPTER 46. ASSISTANCE WITH [INSTRUCTIONAL FACILITIES AND]
13	13	PAYMENT OF [EXISTING] DEBT
14	14	SECTION 2. The heading to Subchapter A, Chapter 46,
15	15	Education Code, is amended to read as follows:
16	16	SUBCHAPTER A. SCHOOL DEBT ASSISTANCE [INSTRUCTIONAL FACILITIES]
17	17	ALLOTMENT
18	18	SECTION 3. Section 46.003, Education Code, is amended to
19	19	read as follows:
20	20	Sec. 46.003. SCHOOL DEBT ASSISTANCE [FACILITIES]
21	21	ALLOTMENT. (a) For each school year, [except as provided by
22	22	Sections 46.005 and 46.006,] a school district is guaranteed a
23	23	specified amount [per student] in state and local funds [for each
24	24	cent of tax effort, up to the maximum rate under Subsection (b),] to
25	25	pay the principal of and interest on eligible bonds [issued to
26	26	construct, acquire, renovate, or improve an instructional
27	27	facility]. The amount of state support is the greater of zero or
28	28	the amount determined by the formula:
29	29	SDA = BP X (1 - (DR/GR))
30	30	[FYA = (FYL X ADA X BTR X 100) - (BTR X (DPV/100))]
31	31	where:
32	32	"SDA" is the amount of state funds to which the district is
33	33	entitled;
34	34	"BP" is the amount the district certifies to the commissioner
35	35	under Subsection (c) that the district expects to pay on the
36	36	principal of and interest on eligible bonds for that school year;
37	37	"DR" is the district's local revenue per student per cent of
38	38	tax effort, which is determined by dividing the district's taxable
39	39	value of property as determined under Subchapter M, Chapter 403,
40	40	Government Code, or, if applicable, Section 48.258, by the product
41	41	of the number of students in average daily attendance and 10,000;
42	42	and
43	43	"GR" ["FYA" is the guaranteed facilities yield amount of
44	44	state funds allocated to the district for the year;
45	45	["FYL"] is the dollar amount guaranteed level of state and
46	46	local funds per student per cent of tax effort, which is determined
47	47	by dividing the maximum amount of the basic allotment provided
48	48	under Section 48.051 by 100 and multiplying the quotient by ____
49	49	[$35] or a greater amount for any year provided by appropriation[;
50	50	["ADA" is the greater of the number of students in average
51	51	daily attendance, as determined under Section 48.005, in the
52	52	district or 400;
53	53	["BTR" is the district's bond tax rate for the current year,
54	54	which is determined by dividing the amount budgeted by the district
55	55	for payment of eligible bonds by the quotient of the district's
56	56	taxable value of property as determined under Subchapter M, Chapter
57	57	403, Government Code, or, if applicable, Section 48.258, divided by
58	58	100; and
59	59	["DPV" is the district's taxable value of property as
60	60	determined under Subchapter M, Chapter 403, Government Code, or, if
61	61	applicable, Section 48.258].
62	62	(b) Notwithstanding Subsection (a), a district is not
63	63	entitled to receive an allotment under this section for a school
64	64	year for which the district does not levy interest and sinking fund
65	65	taxes [The bond tax rate under Subsection (a) may not exceed the
66	66	rate that would be necessary for the current year, using state funds
67	67	under Subsection (a), to make payments of principal and interest on
68	68	the bonds for which the tax is pledged].
69	69	(c) [To enable the district to collect local funds
70	70	sufficient to pay the district's share of the debt service, a
71	71	district may levy a bond tax at a rate higher than the maximum rate
72	72	for which it may receive state assistance.
73	73	[(d) The amount budgeted by a district for payment of
74	74	eligible bonds may include:
75	75	[(1) bond taxes collected in the current school year;
76	76	[(2) bond taxes collected in a preceding school year
77	77	in excess of the amount necessary to pay the district's share of
78	78	actual debt service on bonds in that year, provided that the taxes
79	79	were not used to generate other state financial assistance for the
80	80	district; or
81	81	[(3) maintenance and operations taxes collected in the
82	82	current school year or a preceding school year in excess of the
83	83	amount eligible to be used to generate other state financial
84	84	assistance for the district.
85	85	[(e)] Bonds are eligible to be paid with state and local
86	86	funds under this section if, not later than December 31 of each
87	87	even-numbered year, the district certifies to the commissioner in
88	88	accordance with commissioner rule the amount of payments the
89	89	district expects to make on the principal and interest of those
90	90	bonds for each state fiscal year of the next state fiscal biennium,
91	91	excluding any payments to be made from:
92	92	(1) taxes collected in that school year or a preceding
93	93	school year used to generate other state financial assistance for
94	94	the district [to pay the principal of and interest on the bonds were
95	95	first levied in the 1997-1998 school year or a later school year];
96	96	or [and]
97	97	(2) state aid received for the district's tier two
98	98	allotment under Subchapter E, Chapter 48 [the bonds do not have a
99	99	weighted average maturity of less than eight years].
100	100	(d) [(f)] A district may use state funds received under this
101	101	section only to pay the principal of and interest on the bonds for
102	102	which the district received the funds.
103	103	[(g) The board of trustees and voters of a school district
104	104	shall determine district needs concerning construction,
105	105	acquisition, renovation, or improvement of instructional
106	106	facilities.
107	107	[(h) To receive state assistance under this subchapter, a
108	108	school district must apply to the commissioner in accordance with
109	109	rules adopted by the commissioner before issuing bonds that will be
110	110	paid with state assistance. Until the bonds are fully paid or the
111	111	instructional facility is sold:
112	112	[(1) a school district is entitled to continue
113	113	receiving state assistance without reapplying to the commissioner;
114	114	and
115	115	[(2) the guaranteed level of state and local funds per
116	116	student per cent of tax effort applicable to the bonds may not be
117	117	reduced below the level provided for the year in which the bonds
118	118	were issued.]
119	119	SECTION 4. Subchapter A, Chapter 46, Education Code, is
120	120	amended by adding Section 46.0035 to read as follows:
121	121	Sec. 46.0035. LIMIT ON DEBT TAX RATE TO GUARANTEE TAX
122	122	RELIEF. A school district may not adopt an interest and sinking
123	123	fund tax rate for any year that exceeds the rate necessary, in
124	124	conjunction with the amount of the district's allotment under
125	125	Section 46.003 for that year, for the district to make the payments
126	126	the district certifies to the commissioner for that year under
127	127	Section 46.003(c).
128	128	SECTION 5. Section 46.004(b), Education Code, is amended to
129	129	read as follows:
130	130	(b) The exclusion of certain payments under Sections
131	131	46.003(c)(1) and (2) do not apply [Section 46.003(b) applies] to
132	132	payments made from taxes levied to pay a district's share of the
133	133	payments under a lease-purchase agreement for which the district
134	134	receives state assistance under this subchapter.
135	135	SECTION 6. Section 46.007, Education Code, is amended to
136	136	read as follows:
137	137	Sec. 46.007. REFUNDING BONDS. A school district may use
138	138	state funds received under this subchapter to pay the principal of
139	139	and interest on refunding bonds that:
140	140	(1) are issued to refund bonds eligible under Section
141	141	46.003; and
142	142	(2) [do not have a final maturity date later than the
143	143	final maturity date of the bonds being refunded;
144	144	[(3) may not be called for redemption earlier than the
145	145	earliest call date of the bonds being refunded; and
146	146	[(4)] result in a present value savings, which is
147	147	determined by computing, at the true interest cost of the refunding
148	148	bonds, the net present value of the difference between each
149	149	scheduled payment on the original bonds and each scheduled payment
150	150	on the refunding bonds. [The present value savings shall be
151	151	computed at the true interest cost of the refunding bonds.]
152	152	SECTION 7. Section 46.008, Education Code, is amended to
153	153	read as follows:
154	154	Sec. 46.008. STANDARDS. [(a)] The commissioner shall
155	155	establish standards for adequacy of school facilities. The
156	156	standards must include requirements related to space, educational
157	157	adequacy, and construction quality. All new facilities constructed
158	158	after September 1, 2023 [September 1, 1998], must meet the
159	159	standards to be eligible to be financed with state or local tax
160	160	funds.
161	161	SECTION 8. The heading to Section 46.009, Education Code,
162	162	is amended to read as follows:
163	163	Sec. 46.009. PAYMENT OF SCHOOL DEBT ASSISTANCE [FACILITIES]
164	164	ALLOTMENTS.
165	165	SECTION 9. Sections 46.009(b) and (d), Education Code, are
166	166	amended to read as follows:
167	167	(b) For each school year [If the amount appropriated for
168	168	purposes of this subchapter for a year is less than the total amount
169	169	determined under Subsection (a) for that year], the commissioner
170	170	shall[:
171	171	[(1)] transfer from the Foundation School Program to
172	172	the school debt assistance [instructional facilities] program the
173	173	total amount of money to which school districts are entitled under
174	174	this subchapter for that school year [by which the total amount
175	175	determined under Subsection (a) exceeds the amount appropriated;
176	176	and
177	177	[(2) reduce each district's foundation school fund
178	178	allocations in the manner provided by Section 48.266(f)].
179	179	(d) As soon as practicable after September 1 of each year,
180	180	the commissioner shall distribute to each school district the
181	181	amount of state assistance under this subchapter to which [the
182	182	commissioner has determined] the district is entitled for the
183	183	school year. The district shall deposit the money in the interest
184	184	and sinking fund for the bonds for which the assistance is received
185	185	[and shall adopt a tax rate for purposes of debt service that takes
186	186	into account the balance of the interest and sinking fund].
187	187	SECTION 10. The heading to Section 46.011, Education Code,
188	188	is amended to read as follows:
189	189	Sec. 46.011. SALE OF [INSTRUCTIONAL] FACILITY FINANCED WITH
190	190	SCHOOL DEBT ASSISTANCE [INSTRUCTIONAL FACILITIES] ALLOTMENT.
191	191	SECTION 11. Section 46.011(a), Education Code, is amended
192	192	to read as follows:
193	193	(a) If a [an instructional] facility financed by bonds paid
194	194	with state and local funds under this subchapter is sold before the
195	195	bonds are fully paid, the school district shall send to the
196	196	comptroller an amount equal to the district's net proceeds from the
197	197	sale multiplied by a percentage determined by dividing the amount
198	198	of state funds under this subchapter used to pay the principal of
199	199	and interest on the bonds by the total amount of principal and
200	200	interest paid on the bonds with funds other than the proceeds of the
201	201	sale.
202	202	SECTION 12. Section 46.061(b), Education Code, is amended
203	203	to read as follows:
204	204	(b) The rules adopted under Subsection (a) must:
205	205	(1) establish the minimum amount of savings to be
206	206	accrued from a refinancing under this section; and
207	207	(2) require that at least ___ percent of the savings
208	208	accrued from a refinancing under this section are remitted to the
209	209	state [commissioner may allocate state assistance provided for a
210	210	refinancing to Subchapter A, Subchapter B, or both, as
211	211	appropriate].
212	212	SECTION 13. Section 7.062(c), Education Code, is amended to
213	213	read as follows:
214	214	(c) Except as otherwise provided by this subsection, if the
215	215	commissioner certifies that the amount appropriated for a state
216	216	fiscal year for purposes of Subchapter [Subchapters] A [and B],
217	217	Chapter 46, exceeds the amount to which school districts are
218	218	entitled under that subchapter [those subchapters] for that year,
219	219	the commissioner shall use the excess funds, in an amount not to
220	220	exceed $20 million in any state fiscal year, for the purpose of
221	221	making grants under this section. The use of excess funds under
222	222	this subsection has priority over any provision of Chapter 48 that
223	223	permits or directs the use of excess foundation school program
224	224	funds, including Sections 48.258, 48.259, and 48.267. The
225	225	commissioner is required to use excess funds as provided by this
226	226	subsection only if the commissioner is not required to reduce the
227	227	total amount of state funds allocated to school districts under
228	228	Section 48.266(f).
229	229	SECTION 14. Section 12.106(d), Education Code, is amended
230	230	to read as follows:
231	231	(d) Subject to Subsection (e), in addition to other amounts
232	232	provided by this section, a charter holder is entitled to receive,
233	233	for the open-enrollment charter school, funding per student in
234	234	average daily attendance in an amount equal to the guaranteed level
235	235	of state and local funds per student per cent of tax effort under
236	236	Section 46.003(a) [Section 46.032(a)] multiplied by the lesser of:
237	237	(1) the state average interest and sinking fund tax
238	238	rate imposed by school districts for the current year; or
239	239	(2) a rate that would result in a total amount to which
240	240	charter schools are entitled under this subsection for the current
241	241	year equal to $60 million.
242	242	SECTION 15. The following provisions of Chapter 46,
243	243	Education Code, are repealed:
244	244	(1) Section 46.002(b);
245	245	(2) Sections 46.005, 46.006, 46.010, and 46.013; and
246	246	(3) Subchapters B and D.
247	247	SECTION 16. This Act takes effect September 1, 2023.