Bill Text: TX HB4344 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to the state assistance with the payment of debt under the public school finance system.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2023-03-21 - Referred to Public Education [HB4344 Detail]
Download: Texas-2023-HB4344-Introduced.html
88R13117 KJE-F | ||
By: González of El Paso | H.B. No. 4344 |
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relating to the state assistance with the payment of debt under the | ||
public school finance system. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. The heading to Chapter 46, Education Code, is | ||
amended to read as follows: | ||
CHAPTER 46. ASSISTANCE WITH [ |
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PAYMENT OF [ |
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SECTION 2. The heading to Subchapter A, Chapter 46, | ||
Education Code, is amended to read as follows: | ||
SUBCHAPTER A. SCHOOL DEBT ASSISTANCE [ |
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ALLOTMENT | ||
SECTION 3. Section 46.003, Education Code, is amended to | ||
read as follows: | ||
Sec. 46.003. SCHOOL DEBT ASSISTANCE [ |
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ALLOTMENT. (a) For each school year, [ |
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specified amount [ |
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pay the principal of and interest on eligible bonds [ |
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the amount determined by the formula: | ||
SDA = BP X (1 - (DR/GR)) | ||
[ |
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where: | ||
"SDA" is the amount of state funds to which the district is | ||
entitled; | ||
"BP" is the amount the district certifies to the commissioner | ||
under Subsection (c) that the district expects to pay on the | ||
principal of and interest on eligible bonds for that school year; | ||
"DR" is the district's local revenue per student per cent of | ||
tax effort, which is determined by dividing the district's taxable | ||
value of property as determined under Subchapter M, Chapter 403, | ||
Government Code, or, if applicable, Section 48.258, by the product | ||
of the number of students in average daily attendance and 10,000; | ||
and | ||
"GR" [ |
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[ |
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local funds per student per cent of tax effort, which is determined | ||
by dividing the maximum amount of the basic allotment provided | ||
under Section 48.051 by 100 and multiplying the quotient by ____ | ||
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(b) Notwithstanding Subsection (a), a district is not | ||
entitled to receive an allotment under this section for a school | ||
year for which the district does not levy interest and sinking fund | ||
taxes [ |
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(c) [ |
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funds under this section if, not later than December 31 of each | ||
even-numbered year, the district certifies to the commissioner in | ||
accordance with commissioner rule the amount of payments the | ||
district expects to make on the principal and interest of those | ||
bonds for each state fiscal year of the next state fiscal biennium, | ||
excluding any payments to be made from: | ||
(1) taxes collected in that school year or a preceding | ||
school year used to generate other state financial assistance for | ||
the district [ |
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or [ |
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(2) state aid received for the district's tier two | ||
allotment under Subchapter E, Chapter 48 [ |
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(d) [ |
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section only to pay the principal of and interest on the bonds for | ||
which the district received the funds. | ||
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SECTION 4. Subchapter A, Chapter 46, Education Code, is | ||
amended by adding Section 46.0035 to read as follows: | ||
Sec. 46.0035. LIMIT ON DEBT TAX RATE TO GUARANTEE TAX | ||
RELIEF. A school district may not adopt an interest and sinking | ||
fund tax rate for any year that exceeds the rate necessary, in | ||
conjunction with the amount of the district's allotment under | ||
Section 46.003 for that year, for the district to make the payments | ||
the district certifies to the commissioner for that year under | ||
Section 46.003(c). | ||
SECTION 5. Section 46.004(b), Education Code, is amended to | ||
read as follows: | ||
(b) The exclusion of certain payments under Sections | ||
46.003(c)(1) and (2) do not apply [ |
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payments made from taxes levied to pay a district's share of the | ||
payments under a lease-purchase agreement for which the district | ||
receives state assistance under this subchapter. | ||
SECTION 6. Section 46.007, Education Code, is amended to | ||
read as follows: | ||
Sec. 46.007. REFUNDING BONDS. A school district may use | ||
state funds received under this subchapter to pay the principal of | ||
and interest on refunding bonds that: | ||
(1) are issued to refund bonds eligible under Section | ||
46.003; and | ||
(2) [ |
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determined by computing, at the true interest cost of the refunding | ||
bonds, the net present value of the difference between each | ||
scheduled payment on the original bonds and each scheduled payment | ||
on the refunding bonds. [ |
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SECTION 7. Section 46.008, Education Code, is amended to | ||
read as follows: | ||
Sec. 46.008. STANDARDS. [ |
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establish standards for adequacy of school facilities. The | ||
standards must include requirements related to space, educational | ||
adequacy, and construction quality. All new facilities constructed | ||
after September 1, 2023 [ |
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standards to be eligible to be financed with state or local tax | ||
funds. | ||
SECTION 8. The heading to Section 46.009, Education Code, | ||
is amended to read as follows: | ||
Sec. 46.009. PAYMENT OF SCHOOL DEBT ASSISTANCE [ |
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ALLOTMENTS. | ||
SECTION 9. Sections 46.009(b) and (d), Education Code, are | ||
amended to read as follows: | ||
(b) For each school year [ |
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shall[ |
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[ |
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the school debt assistance [ |
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total amount of money to which school districts are entitled under | ||
this subchapter for that school year [ |
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[ |
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(d) As soon as practicable after September 1 of each year, | ||
the commissioner shall distribute to each school district the | ||
amount of state assistance under this subchapter to which [ |
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school year. The district shall deposit the money in the interest | ||
and sinking fund for the bonds for which the assistance is received | ||
[ |
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SECTION 10. The heading to Section 46.011, Education Code, | ||
is amended to read as follows: | ||
Sec. 46.011. SALE OF [ |
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SCHOOL DEBT ASSISTANCE [ |
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SECTION 11. Section 46.011(a), Education Code, is amended | ||
to read as follows: | ||
(a) If a [ |
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with state and local funds under this subchapter is sold before the | ||
bonds are fully paid, the school district shall send to the | ||
comptroller an amount equal to the district's net proceeds from the | ||
sale multiplied by a percentage determined by dividing the amount | ||
of state funds under this subchapter used to pay the principal of | ||
and interest on the bonds by the total amount of principal and | ||
interest paid on the bonds with funds other than the proceeds of the | ||
sale. | ||
SECTION 12. Section 46.061(b), Education Code, is amended | ||
to read as follows: | ||
(b) The rules adopted under Subsection (a) must: | ||
(1) establish the minimum amount of savings to be | ||
accrued from a refinancing under this section; and | ||
(2) require that at least ___ percent of the savings | ||
accrued from a refinancing under this section are remitted to the | ||
state [ |
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SECTION 13. Section 7.062(c), Education Code, is amended to | ||
read as follows: | ||
(c) Except as otherwise provided by this subsection, if the | ||
commissioner certifies that the amount appropriated for a state | ||
fiscal year for purposes of Subchapter [ |
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Chapter 46, exceeds the amount to which school districts are | ||
entitled under that subchapter [ |
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the commissioner shall use the excess funds, in an amount not to | ||
exceed $20 million in any state fiscal year, for the purpose of | ||
making grants under this section. The use of excess funds under | ||
this subsection has priority over any provision of Chapter 48 that | ||
permits or directs the use of excess foundation school program | ||
funds, including Sections 48.258, 48.259, and 48.267. The | ||
commissioner is required to use excess funds as provided by this | ||
subsection only if the commissioner is not required to reduce the | ||
total amount of state funds allocated to school districts under | ||
Section 48.266(f). | ||
SECTION 14. Section 12.106(d), Education Code, is amended | ||
to read as follows: | ||
(d) Subject to Subsection (e), in addition to other amounts | ||
provided by this section, a charter holder is entitled to receive, | ||
for the open-enrollment charter school, funding per student in | ||
average daily attendance in an amount equal to the guaranteed level | ||
of state and local funds per student per cent of tax effort under | ||
Section 46.003(a) [ |
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(1) the state average interest and sinking fund tax | ||
rate imposed by school districts for the current year; or | ||
(2) a rate that would result in a total amount to which | ||
charter schools are entitled under this subsection for the current | ||
year equal to $60 million. | ||
SECTION 15. The following provisions of Chapter 46, | ||
Education Code, are repealed: | ||
(1) Section 46.002(b); | ||
(2) Sections 46.005, 46.006, 46.010, and 46.013; and | ||
(3) Subchapters B and D. | ||
SECTION 16. This Act takes effect September 1, 2023. |