Texas 2023 - 88th Regular

Texas House Bill HB620 Compare Versions

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1	1	88R2410 MM-D
2	2	By: Shaheen H.B. No. 620
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to repeal of provisions requiring a school district to
8	8	reduce its local revenue level in excess of entitlement.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 12.013(b), Education Code, as amended by
11	11	Chapters 887 (S.B. 1697) and 1046 (S.B. 1365), Acts of the 87th
12	12	Legislature, Regular Session, 2021, is reenacted and amended to
13	13	read as follows:
14	14	(b) A home-rule school district is subject to:
15	15	(1) a provision of this title establishing a criminal
16	16	offense;
17	17	(2) a provision of this title relating to limitations
18	18	on liability; and
19	19	(3) a prohibition, restriction, or requirement, as
20	20	applicable, imposed by this title or a rule adopted under this
21	21	title, relating to:
22	22	(A) the Public Education Information Management
23	23	System (PEIMS) to the extent necessary to monitor compliance with
24	24	this subchapter as determined by the commissioner;
25	25	(B) educator certification under Chapter 21 and
26	26	educator rights under Sections 21.407, 21.408, and 22.001;
27	27	(C) criminal history records under Subchapter C,
28	28	Chapter 22;
29	29	(D) student admissions under Section 25.001;
30	30	(E) school attendance under Sections 25.085,
31	31	25.086, and 25.087;
32	32	(F) inter-district or inter-county transfers of
33	33	students under Subchapter B, Chapter 25;
34	34	(G) elementary class size limits under Section
35	35	25.112, in the case of any campus in the district that fails to
36	36	satisfy any standard under Section 39.054(e);
37	37	(H) high school graduation under Section 28.025;
38	38	(I) special education programs under Subchapter
39	39	A, Chapter 29;
40	40	(J) bilingual education under Subchapter B,
41	41	Chapter 29;
42	42	(K) prekindergarten programs under Subchapter E,
43	43	Chapter 29;
44	44	(L) safety provisions relating to the
45	45	transportation of students under Sections 34.002, 34.003, 34.004,
46	46	and 34.008;
47	47	(M) computation and distribution of state aid
48	48	under Chapters 31, 43, and 48;
49	49	(N) extracurricular activities under Section
50	50	33.081;
51	51	(O) health and safety under Chapter 38;
52	52	(P) the provisions of Subchapter A, Chapter 39;
53	53	(Q) public school accountability and special
54	54	investigations under Subchapters A, B, C, D, and J, Chapter 39, and
55	55	Chapter 39A;
56	56	(R) [options for local revenue levels in excess
57	57	of entitlement under Chapter 49;
58	58	[(S)] a bond or other obligation or tax rate
59	59	under Chapters 43, 45, and 48;
60	60	(S) [(T)] purchasing under Chapter 44; and
61	61	(T) parental options to retain a student under
62	62	Section 28.02124.
63	63	SECTION 2. Section 12.029(b), Education Code, is amended to
64	64	read as follows:
65	65	(b) If [Except as provided by Subchapter H, Chapter 49, if]
66	66	two or more school districts having different status, one of which
67	67	is home-rule school district status, consolidate into a single
68	68	district, the petition under Section 13.003 initiating the
69	69	consolidation must state the status for the consolidated district.
70	70	The ballot shall be printed to permit voting for or against the
71	71	proposition: "Consolidation of (names of school districts) into a
72	72	single school district governed as (status of school district
73	73	specified in the petition)."
74	74	SECTION 3. Section 13.054(i), Education Code, is amended to
75	75	read as follows:
76	76	(i) The funding provided under Subsection (f), (g), or (h)
77	77	is in addition to other funding the district receives through other
78	78	provisions of this code, including funding the district receives
79	79	under Chapter [Chapters] 48 [and 49].
80	80	SECTION 4. Section 25.081(f), Education Code, is amended to
81	81	read as follows:
82	82	(f) The commissioner may proportionally reduce the amount
83	83	of funding a district receives under Chapter 46 or[,] 48[, or 49]
84	84	and the average daily attendance calculation for the district if
85	85	the district operates on a calendar that provides fewer minutes of
86	86	operation than required under Subsection (a).
87	87	SECTION 5. Section 29.087(j), Education Code, is amended to
88	88	read as follows:
89	89	(j) For purposes of funding under Chapters 46 and[,] 48,
90	90	[and 49,] a student attending a program authorized by this section
91	91	may be counted in attendance only for the actual number of hours
92	92	each school day the student attends the program, in accordance with
93	93	Section 25.081.
94	94	SECTION 6. Section 29.203(b), Education Code, is amended to
95	95	read as follows:
96	96	(b) A school district is entitled to the allotment provided
97	97	by Section 48.107 for each eligible student using a public
98	98	education grant. [If the district has a local revenue level greater
99	99	than the guaranteed local revenue level but less than the level
100	100	established under Section 48.257, a school district is entitled
101	101	under rules adopted by the commissioner to additional state aid in
102	102	an amount equal to the difference between the cost to the district
103	103	of providing services to a student using a public education grant
104	104	and the sum of the state aid received because of the allotment under
105	105	Section 48.107 and money from the available school fund
106	106	attributable to the student.]
107	107	SECTION 7. Section 37.0061, Education Code, is amended to
108	108	read as follows:
109	109	Sec. 37.0061. FUNDING FOR ALTERNATIVE EDUCATION SERVICES IN
110	110	JUVENILE RESIDENTIAL FACILITIES. A school district that provides
111	111	education services to pre-adjudicated and post-adjudicated
112	112	students who are confined by court order in a juvenile residential
113	113	facility operated by a juvenile board is entitled to count such
114	114	students in the district's average daily attendance for purposes of
115	115	receipt of state funds under the Foundation School Program. [If the
116	116	district has a local revenue level greater than the guaranteed
117	117	local revenue level but less than the level established under
118	118	Section 48.257, the district in which the student is enrolled on the
119	119	date a court orders the student to be confined to a juvenile
120	120	residential facility shall transfer to the district providing
121	121	education services an amount equal to the difference between the
122	122	average Foundation School Program costs per student of the district
123	123	providing education services and the sum of the state aid and the
124	124	money from the available school fund received by the district that
125	125	is attributable to the student for the portion of the school year
126	126	for which the district provides education services to the student.]
127	127	SECTION 8. Section 45.251(2), Education Code, is amended to
128	128	read as follows:
129	129	(2) "Foundation School Program" means the program
130	130	established under Chapters 46 and[,] 48, [and 49,] or any successor
131	131	program of state appropriated funding for school districts in this
132	132	state.
133	133	SECTION 9. Section 45.261(a), Education Code, is amended to
134	134	read as follows:
135	135	(a) If the commissioner orders payment from the money
136	136	appropriated to the Foundation School Program on behalf of a school
137	137	district [that is not required to reduce its local revenue level
138	138	under Section 48.257], the commissioner shall direct the
139	139	comptroller to withhold the amount paid from the first state money
140	140	payable to the district. If the commissioner orders payment from
141	141	the money appropriated to the Foundation School Program on behalf
142	142	of a school district that is not entitled to state assistance under
143	143	Chapter 48 [required to reduce its local revenue level under
144	144	Section 48.257], the commissioner shall order [increase amounts due
145	145	from] the district to remit to the commissioner an [under Chapter 49
146	146	in a total] amount equal to the amount of payments made on behalf of
147	147	the district under this subchapter. Amounts withheld or received
148	148	under this subsection shall be used for the Foundation School
149	149	Program.
150	150	SECTION 10. Section 48.010(b), Education Code, is amended
151	151	to read as follows:
152	152	(b) In making the determinations regarding funding levels
153	153	required by Subsection (a), the commissioner shall:
154	154	(1) make adjustments as necessary to reflect changes
155	155	in a school district's maintenance and operations tax rate; and
156	156	(2) [for a district required to reduce its local
157	157	revenue level under Section 48.257, base the determinations on the
158	158	district's net funding levels after deducting any amounts required
159	159	to be expended by the district to comply with Chapter 49; and
160	160	[(3)] determine a district's weighted average daily
161	161	attendance in accordance with this chapter as it existed on January
162	162	1, 2011.
163	163	SECTION 11. Section 48.252(b), Education Code, is amended
164	164	to read as follows:
165	165	(b) Notwithstanding any other provision of this chapter [or
166	166	Chapter 49], a school district subject to this section is entitled
167	167	to receive for each student in average daily attendance at the
168	168	campus or program described by Subsection (a) an amount equivalent
169	169	to the difference, if the difference results in increased funding,
170	170	between:
171	171	(1) the amount described by Section 12.106; and
172	172	(2) the amount to which the district would be entitled
173	173	under this chapter.
174	174	SECTION 12. Section 48.2543(a), Education Code, is amended
175	175	to read as follows:
176	176	(a) Beginning with the 2022-2023 school year, a school
177	177	district is entitled to additional state aid to the extent that
178	178	state and local revenue under this chapter [and Chapter 49] is less
179	179	than the state and local revenue that would have been available to
180	180	the district under this chapter [and Chapter 49] as it [those
181	181	chapters] existed on September 1, 2021, if any increase in the
182	182	residence homestead exemption under Section 1-b(c), Article VIII,
183	183	Texas Constitution, as proposed by the 87th Legislature, 3rd Called
184	184	Session, 2021, had not occurred.
185	185	SECTION 13. Sections 48.2553(d) and (e), Education Code,
186	186	are amended to read as follows:
187	187	(d) Any additional tax effort by a school district
188	188	authorized under this section is not:
189	189	(1) eligible for funding under Subchapter B, C, or D;
190	190	or
191	191	(2) eligible for the guaranteed yield amount of state
192	192	funds under Section 48.202[; or
193	193	[(3) subject to the limit on local revenue under
194	194	Section 48.257].
195	195	(e) The commissioner shall reduce state aid [or adjust the
196	196	limit on local revenue under Section 48.257] in an amount equal to
197	197	the amount of revenue generated by a school district's tax effort
198	198	that is not in compliance with this section or Section 48.2551.
199	199	SECTION 14. Section 48.258(a), Education Code, is amended
200	200	to read as follows:
201	201	(a) For purposes of Chapter [Chapters] 46 [and 49] and this
202	202	chapter, and to the extent money specifically authorized to be used
203	203	under this section is available, the commissioner shall adjust the
204	204	taxable value of property in a school district that, due to factors
205	205	beyond the control of the board of trustees, experiences a rapid
206	206	decline in the tax base used in calculating taxable values in excess
207	207	of four percent of the tax base used in the preceding year.
208	208	SECTION 15. Section 48.260(a), Education Code, is amended
209	209	to read as follows:
210	210	(a) For purposes of Chapter [Chapters] 46 [and 49] and this
211	211	chapter, the commissioner shall adjust the taxable value of
212	212	property of a school district all or part of which is located in an
213	213	area declared a disaster area by the governor under Chapter 418,
214	214	Government Code, as necessary to ensure that the district receives
215	215	funding based as soon as possible on property values as affected by
216	216	the disaster.
217	217	SECTION 16. Section 48.266(f), Education Code, is amended
218	218	to read as follows:
219	219	(f) If the amount appropriated for the Foundation School
220	220	Program for the second year of a state fiscal biennium is less than
221	221	the amount to which school districts and open-enrollment charter
222	222	schools are entitled for that year, the commissioner shall certify
223	223	the amount of the difference to the Legislative Budget Board not
224	224	later than January 1 of the second year of the state fiscal
225	225	biennium. The Legislative Budget Board shall propose to the
226	226	legislature that the certified amount be transferred to the
227	227	foundation school fund from the economic stabilization fund and
228	228	appropriated for the purpose of increases in allocations under this
229	229	subsection. If the legislature fails during the regular session to
230	230	enact the proposed transfer and appropriation and there are not
231	231	funds available under Subsection (h), the commissioner shall adjust
232	232	the total amounts due to each school district and open-enrollment
233	233	charter school under this chapter [and the total amounts necessary
234	234	for each school district to comply with the requirements of Chapter
235	235	49] by an amount determined by applying to each district and school
236	236	the same percentage adjustment to the total amount of state and
237	237	local revenue due to the district or school under this chapter [and
238	238	Chapter 49] so that the total amount of the adjustment to all
239	239	districts and schools results in an amount equal to the total
240	240	adjustment necessary. The following fiscal year[:
241	241	[(1)] a district's or school's entitlement under this
242	242	section is increased by an amount equal to the adjustment made under
243	243	this subsection[; and
244	244	[(2) the amount necessary for a district to comply
245	245	with the requirements of Chapter 49 is reduced by an amount
246	246	necessary to ensure a district's full recovery of the adjustment
247	247	made under this subsection].
248	248	SECTION 17. Sections 48.267(a), (b), and (c), Education
249	249	Code, are amended to read as follows:
250	250	(a) The commissioner may make adjustments to amounts due to
251	251	a school district under this chapter or Chapter 46[, or to amounts
252	252	necessary for a district to comply with the requirements of Chapter
253	253	49,] as provided by this section.
254	254	(b) A school district that has a major taxpayer, as
255	255	determined by the commissioner, that because of a protest of the
256	256	valuation of the taxpayer's property fails to pay all or a portion
257	257	of the ad valorem taxes due to the district may apply to the
258	258	commissioner to have the district's taxable value of property or ad
259	259	valorem tax collections adjusted for purposes of this chapter or
260	260	Chapter 46 [or 49]. The commissioner may make the adjustment only
261	261	to the extent the commissioner determines that making the
262	262	adjustment will not:
263	263	(1) in the fiscal year in which the adjustment is made,
264	264	cause the amount to which school districts are entitled under this
265	265	chapter to exceed the amount appropriated for purposes of the
266	266	Foundation School Program for that year; and
267	267	(2) if the adjustment is made in the first year of a
268	268	state fiscal biennium, cause the amount to which school districts
269	269	are entitled under this chapter for the second year of the biennium
270	270	to exceed the amount appropriated for purposes of the Foundation
271	271	School Program for that year.
272	272	(c) The commissioner shall recover the benefit of any
273	273	adjustment made under this section by making offsetting adjustments
274	274	in the school district's taxable value of property or ad valorem tax
275	275	collections for purposes of this chapter or Chapter 46 [or 49] on a
276	276	final determination of the taxable value of property that was the
277	277	basis of the original adjustment, or in the second school year
278	278	following the year in which the adjustment is made, whichever is
279	279	earlier.
280	280	SECTION 18. Section 48.272(b), Education Code, is amended
281	281	to read as follows:
282	282	(b) Notwithstanding Subsection (a), the agency may recover
283	283	an overallocation of state funds over a period not to exceed the
284	284	subsequent five school years if the commissioner determines that
285	285	the overallocation was the result of exceptional circumstances
286	286	reasonably caused by statutory changes to Chapter 46, [or 49 or]
287	287	this chapter, or former Chapter 49 and related reporting
288	288	requirements.
289	289	SECTION 19. Section 48.2721, Education Code, is amended to
290	290	read as follows:
291	291	Sec. 48.2721. RECOVERY OF FUNDS FROM EXCESSIVE
292	292	TAXATION. The commissioner shall reduce state aid [or adjust the
293	293	limit on local revenue under Section 48.257] in an amount equal to
294	294	the amount of revenue generated by a school district's tax effort
295	295	that is not in compliance with Section 45.003 or this chapter.
296	296	SECTION 20. Section 48.275(b), Education Code, is amended
297	297	to read as follows:
298	298	(b) The amount of additional funds to which each school
299	299	district or participating charter school is entitled due to the
300	300	increases in formula funding made by Chapter 1187 (H.B. [No.]
301	301	3343), Acts of the 77th Legislature, Regular Session, 2001, and any
302	302	subsequent legislation amending the provisions amended by that Act
303	303	that increase formula funding under [Chapter 49 and] this chapter
304	304	to school districts and charter schools is available for purposes
305	305	of Subsection (c).
306	306	SECTION 21. Section 403.302(a), Government Code, is amended
307	307	to read as follows:
308	308	(a) The comptroller shall conduct a study using comparable
309	309	sales and generally accepted auditing and sampling techniques to
310	310	determine the total taxable value of all property in each school
311	311	district. The study shall determine the taxable value of all
312	312	property and of each category of property in the district and the
313	313	productivity value of all land that qualifies for appraisal on the
314	314	basis of its productive capacity and for which the owner has applied
315	315	for and received a productivity appraisal. [The comptroller shall
316	316	make appropriate adjustments in the study to account for actions
317	317	taken under Chapter 49, Education Code.]
318	318	SECTION 22. Section 1579.251(a), Insurance Code, is amended
319	319	to read as follows:
320	320	(a) The state shall assist employees of participating
321	321	school districts and charter schools in the purchase of group
322	322	health coverage under this chapter by providing for each covered
323	323	employee the amount of $900 each state fiscal year or a greater
324	324	amount as provided by the General Appropriations Act. The state
325	325	contribution shall be distributed through the school finance
326	326	formulas under Chapter [Chapters] 48 [and 49], Education Code, and
327	327	used by school districts and charter schools as provided by Section
328	328	48.275, Education Code.
329	329	SECTION 23. Section 21.01, Tax Code, is amended to read as
330	330	follows:
331	331	Sec. 21.01. REAL PROPERTY. Real property is taxable by a
332	332	taxing unit if located in the unit on January 1[, except as provided
333	333	by Chapter 49, Education Code].
334	334	SECTION 24. Section 21.02(a), Tax Code, is amended to read
335	335	as follows:
336	336	(a) Except as provided by Subsection [Subsections (b) and]
337	337	(e) and by Sections 21.021, 21.04, and 21.05, tangible personal
338	338	property is taxable by a taxing unit if:
339	339	(1) it is located in the unit on January 1 for more
340	340	than a temporary period;
341	341	(2) it normally is located in the unit, even though it
342	342	is outside the unit on January 1, if it is outside the unit only
343	343	temporarily;
344	344	(3) it normally is returned to the unit between uses
345	345	elsewhere and is not located in any one place for more than a
346	346	temporary period; or
347	347	(4) the owner resides (for property not used for
348	348	business purposes) or maintains the owner's principal place of
349	349	business in this state (for property used for business purposes) in
350	350	the unit and the property is taxable in this state but does not have
351	351	a taxable situs pursuant to Subdivisions (1) through (3) of this
352	352	subsection.
353	353	SECTION 25. Section 312.210(b), Tax Code, is amended to
354	354	read as follows:
355	355	(b) A tax abatement agreement with the owner of real
356	356	property or tangible personal property that is located in the
357	357	reinvestment zone described by Subsection (a) [and in a school
358	358	district that has a local revenue level that does not exceed the
359	359	level established under Section 48.257, Education Code,] must
360	360	exempt from taxation:
361	361	(1) the portion of the value of the property in the
362	362	amount specified in the joint agreement among the municipality,
363	363	county, and junior college district; and
364	364	(2) an amount equal to 10 percent of the maximum
365	365	portion of the value of the property that may under Section
366	366	312.204(a) be otherwise exempted from taxation.
367	367	SECTION 26. The following laws are repealed:
368	368	(1) Sections 7.055(b)(34), 8.056, 29.203(g), and
369	369	48.257, Education Code;
370	370	(2) Chapter 49, Education Code; and
371	371	(3) Sections 21.02(b) and (c) and 25.25(k), Tax Code.
372	372	SECTION 27. This Act takes effect September 1, 2023.