Bill Text: TX HB1077 | 2021-2022 | 87th Legislature | Introduced

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Bill Title: Relating to certain adjustments to the taxable value of property of certain school districts and the reduction of Foundation School Program funds received by certain school districts.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2021-03-04 - Referred to Public Education [HB1077 Detail]

Download: Texas-2021-HB1077-Introduced.html

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87R1974 GCB-F
By: Landgraf H.B. No. 1077

A BILL TO BE ENTITLED
AN ACT
relating to certain adjustments to the taxable value of property of
certain school districts and the reduction of Foundation School
Program funds received by certain school districts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 7.062(a), Education Code, is amended to
read as follows:
(a) In this section, "wealth per student" means a school
district's taxable value of property as determined under Subchapter
M, Chapter 403, Government Code, or, if applicable, Section 48.258,
48.2581, or 48.2582, divided by the district's average daily
attendance as determined under Section 48.005.
SECTION 2. Section 46.003(a), Education Code, is amended to
read as follows:
(a) For each year, except as provided by Sections 46.005 and
46.006, a school district is guaranteed a specified amount per
student in state and local funds for each cent of tax effort, up to
the maximum rate under Subsection (b), to pay the principal of and
interest on eligible bonds issued to construct, acquire, renovate,
or improve an instructional facility. The amount of state support
is determined by the formula:
FYA = (FYL X ADA X BTR X 100) - (BTR X (DPV/100))
where:
"FYA" is the guaranteed facilities yield amount of state
funds allocated to the district for the year;
"FYL" is the dollar amount guaranteed level of state and
local funds per student per cent of tax effort, which is $35 or a
greater amount for any year provided by appropriation;
"ADA" is the greater of the number of students in average
daily attendance, as determined under Section 48.005, in the
district or 400;
"BTR" is the district's bond tax rate for the current year,
which is determined by dividing the amount budgeted by the district
for payment of eligible bonds by the quotient of the district's
taxable value of property as determined under Subchapter M, Chapter
403, Government Code, or, if applicable, Section 48.258, 48.2581,
or 48.2582, divided by 100; and
"DPV" is the district's taxable value of property as
determined under Subchapter M, Chapter 403, Government Code, or, if
applicable, Section 48.258, 48.2581, or 48.2582.
SECTION 3. Section 46.006(g), Education Code, is amended to
read as follows:
(g) In this section, "wealth per student" means a school
district's taxable value of property as determined under Subchapter
M, Chapter 403, Government Code, or, if applicable, Section 48.258,
48.2581, or 48.2582, divided by the district's average daily
attendance as determined under Section 48.005.
SECTION 4. Section 46.032(a), Education Code, is amended to
read as follows:
(a) Each school district is guaranteed a specified amount
per student in state and local funds for each cent of tax effort to
pay the principal of and interest on eligible bonds. The amount of
state support, subject only to the maximum amount under Section
46.034, is determined by the formula:
EDA = (EDGL X ADA X EDTR X 100) - (EDTR X (DPV/100))
where:
"EDA" is the amount of state funds to be allocated to the
district for assistance with existing debt;
"EDGL" is the dollar amount guaranteed level of state and
local funds per student per cent of tax effort, which is the lesser
of:
(1) $40 or a greater amount for any year provided by
appropriation; or
(2) the amount that would result in a total additional
amount of state funds under this subchapter for the current year
equal to $60 million in excess of the state funds to which school
districts would have been entitled under this section if the
guaranteed level amount were $35;
"ADA" is the number of students in average daily attendance,
as determined under Section 48.005, in the district;
"EDTR" is the existing debt tax rate of the district, which is
determined by dividing the amount budgeted by the district for
payment of eligible bonds by the quotient of the district's taxable
value of property as determined under Subchapter M, Chapter 403,
Government Code, or, if applicable, under Section 48.258, 48.2581,
or 48.2582, divided by 100; and
"DPV" is the district's taxable value of property as
determined under Subchapter M, Chapter 403, Government Code, or, if
applicable, under Section 48.258, 48.2581, or 48.2582.
SECTION 5. Subchapter A, Chapter 48, Education Code, is
amended by adding Section 48.0061 to read as follows:
Sec. 48.0061. REDUCTION IN FUNDING OF CERTAIN DISTRICTS.
(a) Each school year the commissioner shall determine the
percentage of the cost of the Foundation School Program funded by
amounts paid to the state as a result of attendance credit purchased
by school districts under Subchapter D, Chapter 49.
(b) Notwithstanding any other provision of this chapter,
the total amount to which a school district is entitled under this
chapter is reduced by the percentage determined under Subsection
(a) unless the school district imposes a maintenance and operations
tax at the greatest rate allowed under Section 45.003(d).
SECTION 6. Section 48.202(a), Education Code, is amended to
read as follows:
(a) Each school district is guaranteed a specified amount
per weighted student in state and local funds for each cent of tax
effort over that required for the district's local fund assignment
up to the maximum level specified in this subchapter. The amount of
state support, subject only to the maximum amount under Section
48.203, is determined by the formula:
GYA = (GL X WADA X DTR X 100) - LR
where:
"GYA" is the guaranteed yield amount of state funds to be
allocated to the district;
"GL" is the dollar amount guaranteed level of state and local
funds per weighted student per cent of tax effort, which is an
amount described by Subsection (a-1) or a greater amount for any
year provided by appropriation;
"WADA" is the number of students in weighted average daily
attendance, which is calculated by dividing the sum of the school
district's allotments under Subchapters B and C by the basic
allotment for the applicable year;
"DTR" is the district enrichment tax rate of the school
district, which is determined by subtracting the amounts specified
by Subsection (b) from the total amount of maintenance and
operations taxes collected by the school district for the
applicable school year and dividing the difference by the quotient
of the district's taxable value of property as determined under
Subchapter M, Chapter 403, Government Code, or, if applicable,
under Section 48.258, 48.2581, or 48.2582, or by the quotient of the
value of "DPV" as determined under Section 48.256(d) if that
subsection applies to the district, divided by 100; and
"LR" is the local revenue, which is determined by multiplying
"DTR" by the quotient of the district's taxable value of property as
determined under Subchapter M, Chapter 403, Government Code, or, if
applicable, under Section 48.258, 48.2581, or 48.2582, or by the
quotient of the value of "DPV" as determined under Section
48.256(d) if that subsection applies to the district, divided by
100.
SECTION 7. Subchapter F, Chapter 48, Education Code, is
amended by adding Sections 48.2581, 48.2582, and 48.2583 to read as
follows:
Sec. 48.2581. ADJUSTMENT FOR DISTRICT ENTITLED TO CERTAIN
FEDERAL FUNDING. For purposes of this chapter and Chapters 46 and
49, the commissioner shall adjust the taxable value of property of a
school district for a school year as necessary to ensure the
district's local revenue level does not exceed the level
established under Section 48.257, if for that school year the
district:
(1) has a campus that receives federal funding under a
concentration grant under 20 U.S.C. Section 6334; and
(2) would otherwise have a local revenue level that
exceeds the level established under Section 48.257.
Sec. 48.2582. ADJUSTMENT FOR DISTRICT WITH TAXABLE VALUE OF
PROPERTY INCREASED BY ASSOCIATED MINERAL RIGHTS. For purposes of
this chapter and Chapters 46 and 49, the commissioner shall adjust
the taxable value of property of a school district for a school year
as necessary to ensure the district's local revenue level does not
exceed the level established under Section 48.257, if for that
school year the district:
(1) is identified by the select committee under
Section 48.2583 as having a taxable value of property that is
unlikely to produce the projected district tax revenue per weighted
student because of a high prevalence of mineral rights associated
with the taxable property; and
(2) would otherwise have a local revenue level that
exceeds the level established under Section 48.257.
Sec. 48.2583. SELECT COMMITTEE TO DETERMINE TAXABLE VALUE
OF PROPERTY OF CERTAIN DISTRICTS. (a) Not later than October 1 of
each year, the speaker of the house of representatives and the
lieutenant governor shall appoint a select committee as follows:
(1) the speaker of the house of representatives shall
appoint five members of the house of representatives as members of
the committee; and
(2) the lieutenant governor shall appoint five members
of the senate as members of the committee.
(b) At least three of the select committee members appointed
by the speaker of the house of representatives as provided by
Subsection (a)(1) and at least three of the select committee
members appointed by the lieutenant governor as provided by
Subsection (a)(2) must reside within the boundaries of State Board
of Education District 1, 3, or 15, as those districts are
established by Chapter 72 (H.B. 600), Acts of the 82nd Legislature,
Regular Session, 2011.
(c) For purposes of Section 48.2582, not later than June 1
of each year, the select committee shall:
(1) in consultation with the comptroller and the
Legislative Budget Board, identify districts with a taxable value
of property that is unlikely to produce the projected district tax
revenue per weighted student because of a high prevalence of
mineral rights associated with the taxable property; and
(2) provide to the commissioner a list of those
districts identified by the committee under Subdivision (1).
SECTION 8. This Act takes effect September 1, 2021.