Texas 2025 - 89th Regular

Texas House Bill HB4786 Compare Versions

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

Old	New	Differences
1	1	89R3131 MM-D
2	2	By: Schatzline H.B. No. 4786
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to repeal of provisions requiring a school district to
10	10	reduce its local revenue level in excess of entitlement.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 12.013(b), Education Code, is 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) [(U)] parental options to retain a student
62	62	under 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. Sections 48.2543(a) and (a-1), Education Code,
175	175	are amended to read as follows:
176	176	(a) For the 2022-2023 school year, a school district is
177	177	entitled to additional state aid to the extent that state and local
178	178	revenue under this chapter and former Chapter 49 is less than the
179	179	state and local revenue that would have been available to the
180	180	district under this chapter and former Chapter 49 as those chapters
181	181	existed on September 1, 2021, if any increase in the residence
182	182	homestead exemption under Section 1-b(c), Article VIII, Texas
183	183	Constitution, as proposed by the 87th Legislature, 3rd Called
184	184	Session, 2021, had not occurred.
185	185	(a-1) Beginning with the 2023-2024 school year, a school
186	186	district is entitled to additional state aid to the extent that
187	187	state and local revenue under this chapter [and Chapter 49] is less
188	188	than the state and local revenue that would have been available to
189	189	the district under this chapter [and Chapter 49] as it [those
190	190	chapters] existed on September 1, 2022, if any increase in a
191	191	residence homestead exemption under Section 1-b(c), Article VIII,
192	192	Texas Constitution, and any additional limitation on tax increases
193	193	under Section 1-b(d) of that article as proposed by the 88th
194	194	Legislature, 2nd Called Session, 2023, had not occurred.
195	195	SECTION 13. Sections 48.2553(d) and (e), Education Code,
196	196	are amended to read as follows:
197	197	(d) Any additional tax effort by a school district
198	198	authorized under this section is not:
199	199	(1) eligible for funding under Subchapter B, C, or D;
200	200	or
201	201	(2) eligible for the guaranteed yield amount of state
202	202	funds under Section 48.202[; or
203	203	[(3) subject to the limit on local revenue under
204	204	Section 48.257].
205	205	(e) The commissioner shall reduce state aid [or adjust the
206	206	limit on local revenue under Section 48.257] in an amount equal to
207	207	the amount of revenue generated by a school district's tax effort
208	208	that is not in compliance with this section or Section 48.2551.
209	209	SECTION 14. Section 48.258(a), Education Code, is amended
210	210	to read as follows:
211	211	(a) For purposes of Chapter [Chapters] 46 [and 49] and this
212	212	chapter, and to the extent money specifically authorized to be used
213	213	under this section is available, the commissioner shall adjust the
214	214	taxable value of property in a school district that, due to factors
215	215	beyond the control of the board of trustees, experiences a rapid
216	216	decline in the tax base used in calculating taxable values in excess
217	217	of four percent of the tax base used in the preceding year.
218	218	SECTION 15. Section 48.260(a), Education Code, is amended
219	219	to read as follows:
220	220	(a) For purposes of Chapter [Chapters] 46 [and 49] and this
221	221	chapter, the commissioner shall adjust the taxable value of
222	222	property of a school district all or part of which is located in an
223	223	area declared a disaster area by the governor under Chapter 418,
224	224	Government Code, as necessary to ensure that the district receives
225	225	funding based as soon as possible on property values as affected by
226	226	the disaster.
227	227	SECTION 16. Section 48.266(f), Education Code, is amended
228	228	to read as follows:
229	229	(f) If the amount appropriated for the Foundation School
230	230	Program for the second year of a state fiscal biennium is less than
231	231	the amount to which school districts and open-enrollment charter
232	232	schools are entitled for that year, the commissioner shall certify
233	233	the amount of the difference to the Legislative Budget Board not
234	234	later than January 1 of the second year of the state fiscal
235	235	biennium. The Legislative Budget Board shall propose to the
236	236	legislature that the certified amount be transferred to the
237	237	foundation school fund from the economic stabilization fund and
238	238	appropriated for the purpose of increases in allocations under this
239	239	subsection. If the legislature fails during the regular session to
240	240	enact the proposed transfer and appropriation and there are not
241	241	funds available under Subsection (h), the commissioner shall adjust
242	242	the total amounts due to each school district and open-enrollment
243	243	charter school under this chapter [and the total amounts necessary
244	244	for each school district to comply with the requirements of Chapter
245	245	49] by an amount determined by applying to each district and school
246	246	the same percentage adjustment to the total amount of state and
247	247	local revenue due to the district or school under this chapter [and
248	248	Chapter 49] so that the total amount of the adjustment to all
249	249	districts and schools results in an amount equal to the total
250	250	adjustment necessary. The following fiscal year[:
251	251	[(1)] a district's or school's entitlement under this
252	252	section is increased by an amount equal to the adjustment made under
253	253	this subsection[; and
254	254	[(2) the amount necessary for a district to comply
255	255	with the requirements of Chapter 49 is reduced by an amount
256	256	necessary to ensure a district's full recovery of the adjustment
257	257	made under this subsection].
258	258	SECTION 17. Sections 48.267(a), (b), and (c), Education
259	259	Code, are amended to read as follows:
260	260	(a) The commissioner may make adjustments to amounts due to
261	261	a school district under this chapter or Chapter 46[, or to amounts
262	262	necessary for a district to comply with the requirements of Chapter
263	263	49,] as provided by this section.
264	264	(b) A school district that has a major taxpayer, as
265	265	determined by the commissioner, that because of a protest of the
266	266	valuation of the taxpayer's property fails to pay all or a portion
267	267	of the ad valorem taxes due to the district may apply to the
268	268	commissioner to have the district's taxable value of property or ad
269	269	valorem tax collections adjusted for purposes of this chapter or
270	270	Chapter 46 [or 49]. The commissioner may make the adjustment only
271	271	to the extent the commissioner determines that making the
272	272	adjustment will not:
273	273	(1) in the fiscal year in which the adjustment is made,
274	274	cause the amount to which school districts are entitled under this
275	275	chapter to exceed the amount appropriated for purposes of the
276	276	Foundation School Program for that year; and
277	277	(2) if the adjustment is made in the first year of a
278	278	state fiscal biennium, cause the amount to which school districts
279	279	are entitled under this chapter for the second year of the biennium
280	280	to exceed the amount appropriated for purposes of the Foundation
281	281	School Program for that year.
282	282	(c) The commissioner shall recover the benefit of any
283	283	adjustment made under this section by making offsetting adjustments
284	284	in the school district's taxable value of property or ad valorem tax
285	285	collections for purposes of this chapter or Chapter 46 [or 49] on a
286	286	final determination of the taxable value of property that was the
287	287	basis of the original adjustment, or in the second school year
288	288	following the year in which the adjustment is made, whichever is
289	289	earlier.
290	290	SECTION 18. Section 48.272(b), Education Code, is amended
291	291	to read as follows:
292	292	(b) Notwithstanding Subsection (a), the agency may recover
293	293	an overallocation of state funds over a period not to exceed the
294	294	subsequent five school years if the commissioner determines that
295	295	the overallocation was the result of exceptional circumstances
296	296	reasonably caused by statutory changes to Chapter 46, [or 49 or]
297	297	this chapter, or former Chapter 49 and related reporting
298	298	requirements.
299	299	SECTION 19. Section 48.2721, Education Code, is amended to
300	300	read as follows:
301	301	Sec. 48.2721. RECOVERY OF FUNDS FROM EXCESSIVE
302	302	TAXATION. The commissioner shall reduce state aid [or adjust the
303	303	limit on local revenue under Section 48.257] in an amount equal to
304	304	the amount of revenue generated by a school district's tax effort
305	305	that is not in compliance with Section 45.003 or this chapter.
306	306	SECTION 20. Section 48.275(b), Education Code, is amended
307	307	to read as follows:
308	308	(b) The amount of additional funds to which each school
309	309	district or participating charter school is entitled due to the
310	310	increases in formula funding made by Chapter 1187 (H.B. [No.]
311	311	3343), Acts of the 77th Legislature, Regular Session, 2001, and any
312	312	subsequent legislation amending the provisions amended by that Act
313	313	that increase formula funding under [Chapter 49 and] this chapter
314	314	to school districts and charter schools is available for purposes
315	315	of Subsection (c).
316	316	SECTION 21. Section 48.283, Education Code, is amended to
317	317	read as follows:
318	318	Sec. 48.283. ADDITIONAL STATE AID FOR CERTAIN DISTRICTS
319	319	IMPACTED BY COMPRESSION. A school district that received an
320	320	adjustment under former Section 48.257(b) for the 2022-2023 school
321	321	year is entitled to additional state aid for each school year in an
322	322	amount equal to the amount of that adjustment for the 2022-2023
323	323	school year less the difference, if the difference is greater than
324	324	zero, between:
325	325	(1) the amount to which the district is entitled under
326	326	this chapter for the current school year; and
327	327	(2) the amount to which the district would be entitled
328	328	under this chapter for the current school year if the district's
329	329	maximum compressed tax rate had not been reduced under Section
330	330	48.2555, as added by S.B. 2, Acts of the 88th Legislature, 2nd
331	331	Called Session, 2023.
332	332	SECTION 22. Section 403.302(a), Government Code, is amended
333	333	to read as follows:
334	334	(a) The comptroller shall conduct a study using comparable
335	335	sales and generally accepted auditing and sampling techniques to
336	336	determine the total taxable value of all property in each school
337	337	district. The study shall determine the taxable value of all
338	338	property and of each category of property in the district and the
339	339	productivity value of all land that qualifies for appraisal on the
340	340	basis of its productive capacity and for which the owner has applied
341	341	for and received a productivity appraisal. [The comptroller shall
342	342	make appropriate adjustments in the study to account for actions
343	343	taken under Chapter 49, Education Code.]
344	344	SECTION 23. Section 1579.251(a), Insurance Code, is amended
345	345	to read as follows:
346	346	(a) The state shall assist employees of participating
347	347	school districts and charter schools in the purchase of group
348	348	health coverage under this chapter by providing for each covered
349	349	employee the amount of $900 each state fiscal year or a greater
350	350	amount as provided by the General Appropriations Act. The state
351	351	contribution shall be distributed through the school finance
352	352	formulas under Chapter [Chapters] 48 [and 49], Education Code, and
353	353	used by school districts and charter schools as provided by Section
354	354	48.275, Education Code.
355	355	SECTION 24. Section 21.01, Tax Code, is amended to read as
356	356	follows:
357	357	Sec. 21.01. REAL PROPERTY. Real property is taxable by a
358	358	taxing unit if located in the unit on January 1[, except as provided
359	359	by Chapter 49, Education Code].
360	360	SECTION 25. Section 21.02(a), Tax Code, is amended to read
361	361	as follows:
362	362	(a) Except as provided by Subsection [Subsections (b) and]
363	363	(e) and by Sections 21.021, 21.04, and 21.05, tangible personal
364	364	property is taxable by a taxing unit if:
365	365	(1) it is located in the unit on January 1 for more
366	366	than a temporary period;
367	367	(2) it normally is located in the unit, even though it
368	368	is outside the unit on January 1, if it is outside the unit only
369	369	temporarily;
370	370	(3) it normally is returned to the unit between uses
371	371	elsewhere and is not located in any one place for more than a
372	372	temporary period; or
373	373	(4) the owner resides (for property not used for
374	374	business purposes) or maintains the owner's principal place of
375	375	business in this state (for property used for business purposes) in
376	376	the unit and the property is taxable in this state but does not have
377	377	a taxable situs pursuant to Subdivisions (1) through (3) of this
378	378	subsection.
379	379	SECTION 26. Section 312.210(b), Tax Code, is amended to
380	380	read as follows:
381	381	(b) A tax abatement agreement with the owner of real
382	382	property or tangible personal property that is located in the
383	383	reinvestment zone described by Subsection (a) [and in a school
384	384	district that has a local revenue level that does not exceed the
385	385	level established under Section 48.257, Education Code,] must
386	386	exempt from taxation:
387	387	(1) the portion of the value of the property in the
388	388	amount specified in the joint agreement among the municipality,
389	389	county, and junior college district; and
390	390	(2) an amount equal to 10 percent of the maximum
391	391	portion of the value of the property that may under Section
392	392	312.204(a) be otherwise exempted from taxation.
393	393	SECTION 27. The following provisions are repealed:
394	394	(1) Section 7.055(b)(34), Education Code;
395	395	(2) Sections 8.056 and 48.257, Education Code;
396	396	(3) Section 29.203(g), Education Code;
397	397	(4) Chapter 49, Education Code; and
398	398	(5) Sections 21.02(b) and (c) and 25.25(k), Tax Code.
399	399	SECTION 28. This Act takes effect September 1, 2025.