Bill Text: TX HB286 | 2017-2018 | 85th Legislature | Introduced

---

Bill Title: Relating to the repeal of provisions requiring school districts to reduce their wealth per student to the equalized wealth level.

Sponsorship: Partisan Bill (Republican 8)

Status: (Introduced - Dead) 2017-02-13 - Referred to Public Education [HB286 Detail]

Download: Texas-2017-HB286-Introduced.html

---

85R1245 GCB-D
By: Rinaldi H.B. No. 286

A BILL TO BE ENTITLED
AN ACT
relating to the repeal of provisions requiring school districts to
reduce their wealth per student to the equalized wealth level.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 12.013(b), Education Code, is amended to
read as follows:
(b) A home-rule school district is subject to:
(1) a provision of this title establishing a criminal
offense;
(2) a provision of this title relating to limitations
on liability; and
(3) a prohibition, restriction, or requirement, as
applicable, imposed by this title or a rule adopted under this
title, relating to:
(A) the Public Education Information Management
System (PEIMS) to the extent necessary to monitor compliance with
this subchapter as determined by the commissioner;
(B) educator certification under Chapter 21 and
educator rights under Sections 21.407, 21.408, and 22.001;
(C) criminal history records under Subchapter C,
Chapter 22;
(D) student admissions under Section 25.001;
(E) school attendance under Sections 25.085,
25.086, and 25.087;
(F) inter-district or inter-county transfers of
students under Subchapter B, Chapter 25;
(G) elementary class size limits under Section
25.112, in the case of any campus in the district that fails to
satisfy any standard under Section 39.054(e);
(H) high school graduation under Section 28.025;
(I) special education programs under Subchapter
A, Chapter 29;
(J) bilingual education under Subchapter B,
Chapter 29;
(K) prekindergarten programs under Subchapter E,
Chapter 29;
(L) safety provisions relating to the
transportation of students under Sections 34.002, 34.003, 34.004,
and 34.008;
(M) computation and distribution of state aid
under Chapters 31, 42, and 43;
(N) extracurricular activities under Section
33.081;
(O) health and safety under Chapter 38;
(P) public school accountability under
Subchapters B, C, D, E, and J, Chapter 39;
(Q) [equalized wealth under Chapter 41;
[(R)] a bond or other obligation or tax rate
under Chapters 42, 43, and 45; and
(R) [(S)] purchasing under Chapter 44.
SECTION 2. Section 12.029(b), Education Code, is amended to
read as follows:
(b) If [Except as provided by Subchapter H, Chapter 41, if]
two or more school districts having different status, one of which
is home-rule school district status, consolidate into a single
district, the petition under Section 13.003 initiating the
consolidation must state the status for the consolidated district.
The ballot shall be printed to permit voting for or against the
proposition: "Consolidation of (names of school districts) into a
single school district governed as (status of school district
specified in the petition)."
SECTION 3. Section 21.410(h), Education Code, is amended to
read as follows:
(h) A grant a school district receives under this section is
in addition to any funding the district receives under Chapter 42.
The commissioner shall distribute funds under this section with the
Foundation School Program payment to which the district is entitled
as soon as practicable after the end of the school year as
determined by the commissioner. [A district to which Chapter 41
applies is entitled to the grants paid under this section.] The
commissioner shall determine the timing of the distribution of
grants to a district that does not receive Foundation School
Program payments.
SECTION 4. Section 21.411(h), Education Code, is amended to
read as follows:
(h) A grant a school district receives under this section is
in addition to any funding the district receives under Chapter 42.
The commissioner shall distribute funds under this section with the
Foundation School Program payment to which the district is entitled
as soon as practicable after the end of the school year as
determined by the commissioner. [A district to which Chapter 41
applies is entitled to the grants paid under this section.] The
commissioner shall determine the timing of the distribution of
grants to a district that does not receive Foundation School
Program payments.
SECTION 5. Section 21.412(h), Education Code, is amended to
read as follows:
(h) A grant a school district receives under this section is
in addition to any funding the district receives under Chapter 42.
The commissioner shall distribute funds under this section with the
Foundation School Program payment to which the district is entitled
as soon as practicable after the end of the school year as
determined by the commissioner. [A district to which Chapter 41
applies is entitled to the grants paid under this section.] The
commissioner shall determine the timing of the distribution of
grants to a district that does not receive Foundation School
Program payments.
SECTION 6. Section 21.413(h), Education Code, is amended to
read as follows:
(h) A grant a school district receives under this section is
in addition to any funding the district receives under Chapter 42.
The commissioner shall distribute funds under this section with the
Foundation School Program payment to which the district is entitled
as soon as practicable after the end of the school year as
determined by the commissioner. [A district to which Chapter 41
applies is entitled to the grants paid under this section.] The
commissioner shall determine the timing of the distribution of
grants to a district that does not receive Foundation School
Program payments.
SECTION 7. Section 29.203(b), Education Code, is amended to
read as follows:
(b) A school district is entitled to the allotment provided
by Section 42.157 for each eligible student using a public
education grant. [If the district has a wealth per student greater
than the guaranteed wealth level but less than the equalized wealth
level, a school district is entitled under rules adopted by the
commissioner to additional state aid in an amount equal to the
difference between the cost to the district of providing services
to a student using a public education grant and the sum of the state
aid received because of the allotment under Section 42.157 and
money from the available school fund attributable to the student.]
SECTION 8. Section 37.0061, Education Code, is amended to
read as follows:
Sec. 37.0061. FUNDING FOR ALTERNATIVE EDUCATION SERVICES IN
JUVENILE RESIDENTIAL FACILITIES. A school district that provides
education services to pre-adjudicated and post-adjudicated
students who are confined by court order in a juvenile residential
facility operated by a juvenile board is entitled to count such
students in the district's average daily attendance for purposes of
receipt of state funds under the Foundation School Program. [If the
district has a wealth per student greater than the guaranteed
wealth level but less than the equalized wealth level, the district
in which the student is enrolled on the date a court orders the
student to be confined to a juvenile residential facility shall
transfer to the district providing education services an amount
equal to the difference between the average Foundation School
Program costs per student of the district providing education
services and the sum of the state aid and the money from the
available school fund received by the district that is attributable
to the student for the portion of the school year for which the
district provides education services to the student.]
SECTION 9. Section 42.009(b), Education Code, is amended to
read as follows:
(b) In making the determinations regarding funding levels
required by Subsection (a), the commissioner shall:
(1) make adjustments as necessary to reflect changes
in a school district's maintenance and operations tax rate; and
(2) [for a district required to take action under
Chapter 41 to reduce its wealth per student to the equalized wealth
level, base the determinations on the district's net funding levels
after deducting any amounts required to be expended by the district
to comply with Chapter 41; and
[(3)] determine a district's weighted average daily
attendance in accordance with this chapter as it existed on January
1, 2011.
SECTION 10. Section 42.158(e), Education Code, is amended
to read as follows:
(e) [A school district that is required to take action under
Chapter 41 to reduce its wealth per student to the equalized wealth
level is entitled to a credit, in the amount of the allotments to
which the district is entitled under this section, against the
total amount required under Section 41.093 for the district to
purchase attendance credits.] A school district that is otherwise
ineligible for state aid under this chapter is entitled to receive
allotments under this section.
SECTION 11. Section 42.160(b), Education Code, is amended
to read as follows:
(b) [A school district that is required to take action under
Chapter 41 to reduce its wealth per student to the equalized wealth
level is entitled to a credit, in the amount of the allotments to
which the district is entitled under this section, against the
total amount required under Section 41.093 for the district to
purchase attendance credits.] A school district that is otherwise
ineligible for state aid under this chapter is entitled to receive
allotments under this section.
SECTION 12. Section 42.2518(a), Education Code, as added by
Section 18, Chapter 465 (S.B. 1), Acts of the 84th Legislature,
Regular Session, 2015, is amended to read as follows:
(a) Beginning with the 2017-2018 school year, a school
district is entitled to additional state aid to the extent that
state and local revenue under this chapter [and Chapter 41] is less
than the state and local revenue that would have been available to
the district under [Chapter 41 and] this chapter as it [those
chapters] existed on September 1, 2015, excluding any state aid
that would have been provided under former Section 42.2516, if the
increase in the residence homestead exemption under Section 1-b(c),
Article VIII, Texas Constitution, and the additional limitation on
tax increases under Section 1-b(d) of that article as proposed by
S.J.R. 1, 84th Legislature, Regular Session, 2015, had not
occurred.
SECTION 13. Section 42.2521(a), Education Code, is amended
to read as follows:
(a) For purposes of Chapter [Chapters 41 and] 46 and this
chapter, and to the extent money specifically authorized to be used
under this section is available, the commissioner shall adjust the
taxable value of property in a school district that, due to factors
beyond the control of the board of trustees, experiences a rapid
decline in the tax base used in calculating taxable values in excess
of four percent of the tax base used in the preceding year.
SECTION 14. Section 42.2523(a), Education Code, is amended
to read as follows:
(a) For purposes of Chapter [Chapters 41 and] 46 and this
chapter, the commissioner shall adjust the taxable value of
property of a school district all or part of which is located in an
area declared a disaster area by the governor under Chapter 418,
Government Code, as necessary to ensure that the district receives
funding based as soon as possible on property values as affected by
the disaster.
SECTION 15. Sections 42.2524(c) and (d), Education Code,
are amended to read as follows:
(c) The commissioner may provide reimbursement under this
section only if funds are available for that purpose [as follows:
[(1) reimbursement for a school district not required
to take action under Chapter 41 may be provided] from:
(1) [(A)] amounts appropriated for that purpose,
including amounts appropriated for those districts for that purpose
to the disaster contingency fund established under Section 418.073,
Government Code; or
(2) [(B)] Foundation School Program funds available
for that purpose, based on a determination by the commissioner that
the amount appropriated for the Foundation School Program,
including the facilities component as provided by Chapter 46,
exceeds the amount to which districts are entitled under this
chapter and Chapter 46[; and
[(2) reimbursement for a school district required to
take action under Chapter 41 may be provided from funds described by
Subdivision (1)(B) if funds remain available after fully
reimbursing each school district described by Subdivision (1) for
its disaster remediation costs].
(d) If the amount of money available for purposes of
reimbursing school districts [not required to take action under
Chapter 41] is not sufficient to fully reimburse each district's
disaster remediation costs, the commissioner shall reduce the
amount of assistance provided to each of those districts
proportionately. [If the amount of money available for purposes of
reimbursing school districts required to take action under Chapter
41 is not sufficient to fully reimburse each district's disaster
remediation costs, the commissioner shall reduce the amount of
assistance provided to each of those districts proportionately.]
SECTION 16. Section 42.253(h), Education Code, as effective
September 1, 2017, is amended to read as follows:
(h) If the amount appropriated for the Foundation School
Program for the second year of a state fiscal biennium is less than
the amount to which school districts and open-enrollment charter
schools are entitled for that year, the commissioner shall certify
the amount of the difference to the Legislative Budget Board not
later than January 1 of the second year of the state fiscal
biennium. The Legislative Budget Board shall propose to the
legislature that the certified amount be transferred to the
foundation school fund from the economic stabilization fund and
appropriated for the purpose of increases in allocations under this
subsection. If the legislature fails during the regular session to
enact the proposed transfer and appropriation and there are not
funds available under Subsection (j), the commissioner shall adjust
the total amounts due to each school district and open-enrollment
charter school under this chapter [and the total amounts necessary
for each school district to comply with the requirements of Chapter
41] by an amount determined by applying to each district and school
the same percentage adjustment to the total amount of state and
local revenue due to the district or school under this chapter [and
Chapter 41] so that the total amount of the adjustment to all
districts and schools results in an amount equal to the total
adjustment necessary. The following fiscal year[:
[(1)] a district's or school's entitlement under this
section is increased by an amount equal to the adjustment made
under this subsection[; and
[(2) the amount necessary for a district to comply
with the requirements of Chapter 41 is reduced by an amount
necessary to ensure a district's full recovery of the adjustment
made under this subsection].
SECTION 17. Sections 42.2531(a), (b), and (c), Education
Code, are amended to read as follows:
(a) The commissioner may make adjustments to amounts due to
a school district under this chapter or Chapter 46[, or to amounts
necessary for a district to comply with the requirements of Chapter
41,] as provided by this section.
(b) A school district that has a major taxpayer, as
determined by the commissioner, that because of a protest of the
valuation of the taxpayer's property fails to pay all or a portion
of the ad valorem taxes due to the district may apply to the
commissioner to have the district's taxable value of property or ad
valorem tax collections adjusted for purposes of this chapter or
Chapter [41 or] 46. The commissioner may make the adjustment only
to the extent the commissioner determines that making the
adjustment will not:
(1) in the fiscal year in which the adjustment is made,
cause the amount to which school districts are entitled under this
chapter to exceed the amount appropriated for purposes of the
Foundation School Program for that year; and
(2) if the adjustment is made in the first year of a
state fiscal biennium, cause the amount to which school districts
are entitled under this chapter for the second year of the biennium
to exceed the amount appropriated for purposes of the Foundation
School Program for that year.
(c) The commissioner shall recover the benefit of any
adjustment made under this section by making offsetting adjustments
in the school district's taxable value of property or ad valorem tax
collections for purposes of this chapter or Chapter [41 or] 46 on a
final determination of the taxable value of property that was the
basis of the original adjustment, or in the second school year
following the year in which the adjustment is made, whichever is
earlier.
SECTION 18. Section 42.258(a-1), Education Code, is amended
to read as follows:
(a-1) Notwithstanding Subsection (a), the agency may
recover an overallocation of state funds over a period not to exceed
the subsequent five school years if the commissioner determines
that the overallocation was the result of exceptional circumstances
reasonably caused by statutory changes to former Chapter 41,
Chapter [or] 46, or this chapter and related reporting
requirements.
SECTION 19. Section 42.260(b), Education Code, is amended
to read as follows:
(b) For each year, the commissioner shall certify to each
school district or participating charter school the amount of
[additional funds to which the district or school is entitled due to
the increase made by H.B. No. 3343, Acts of the 77th Legislature,
Regular Session, 2001, to:
[(1) the equalized wealth level under Section 41.002;
or
[(2)] the guaranteed level of state and local funds
per weighted student per cent of tax effort under Section 42.302.
SECTION 20. Section 45.251(2), Education Code, is amended
to read as follows:
(2) "Foundation School Program" means the program
established under Chapters [41,] 42[,] and 46, or any successor
program of state appropriated funding for school districts in this
state.
SECTION 21. Section 45.261(a), Education Code, is amended
to read as follows:
(a) If the commissioner orders payment from the money
appropriated to the Foundation School Program on behalf of a school
district [that is not required to reduce its wealth per student
under Chapter 41], the commissioner shall direct the comptroller to
withhold the amount paid from the first state money payable to the
district. If the commissioner orders payment from the money
appropriated to the Foundation School Program on behalf of a school
district that is not entitled to state assistance under Chapter 42
[required to reduce its wealth per student under Chapter 41], the
commissioner shall order [increase amounts due from] the district
to remit to the commissioner an [under that chapter in a total]
amount equal to the amount of payments made on behalf of the
district under this subchapter. Amounts withheld or received
under this subsection shall be used for the Foundation School
Program.
SECTION 22. Section 403.302(a), Government Code, is amended
to read as follows:
(a) The comptroller shall conduct a study using comparable
sales and generally accepted auditing and sampling techniques to
determine the total taxable value of all property in each school
district. The study shall determine the taxable value of all
property and of each category of property in the district and the
productivity value of all land that qualifies for appraisal on the
basis of its productive capacity and for which the owner has applied
for and received a productivity appraisal. [The comptroller shall
make appropriate adjustments in the study to account for actions
taken under Chapter 41, Education Code.]
SECTION 23. Section 21.01, Tax Code, is amended to read as
follows:
Sec. 21.01. REAL PROPERTY. Real property is taxable by a
taxing unit if located in the unit on January 1[, except as provided
by Chapter 41, Education Code].
SECTION 24. Section 21.02(a), Tax Code, is amended to read
as follows:
(a) Except as provided by Subsection [Subsections (b) and]
(e) and by Sections 21.021, 21.04, and 21.05, tangible personal
property is taxable by a taxing unit if:
(1) it is located in the unit on January 1 for more
than a temporary period;
(2) it normally is located in the unit, even though it
is outside the unit on January 1, if it is outside the unit only
temporarily;
(3) it normally is returned to the unit between uses
elsewhere and is not located in any one place for more than a
temporary period; or
(4) the owner resides (for property not used for
business purposes) or maintains the owner's principal place of
business in this state (for property used for business purposes) in
the unit and the property is taxable in this state but does not have
a taxable situs pursuant to Subdivisions (1) through (3) of this
subsection.
SECTION 25. Section 26.08(i), Tax Code, as effective
September 1, 2017, is amended to read as follows:
(i) For purposes of this section, the effective maintenance
and operations tax rate of a school district is the tax rate that,
applied to the current total value for the district, would impose
taxes in an amount that, when added to state funds that would be
distributed to the district under Chapter 42, Education Code, for
the school year beginning in the current tax year using that tax
rate, would provide the same amount of state funds distributed
under Chapter 42, Education Code, and maintenance and operations
taxes of the district per student in weighted average daily
attendance for that school year that would have been available to
the district in the preceding year if the funding elements for
Chapter [Chapters 41 and] 42, Education Code, for the current year
had been in effect for the preceding year.
SECTION 26. Section 312.210(b), Tax Code, is amended to
read as follows:
(b) A tax abatement agreement with the owner of real
property or tangible personal property that is located in the
reinvestment zone described by Subsection (a) and in a school
district [that has a wealth per student that does not exceed the
equalized wealth level] must exempt from taxation:
(1) the portion of the value of the property in the
amount specified in the joint agreement among the municipality,
county, and junior college district; and
(2) an amount equal to 10 percent of the maximum
portion of the value of the property that may under Section
312.204(a) be otherwise exempted from taxation.
SECTION 27. The following laws are repealed:
(1) Chapter 41, Education Code;
(2) Sections 7.055(b)(34), 8.056, 29.203(g), and
42.2524(f), Education Code; and
(3) Sections 21.02(b) and (c), 25.25(k), and
312.210(c), Tax Code.
SECTION 28. This Act takes effect September 1, 2017.