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A BILL TO BE ENTITLED
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AN ACT
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relating to repeal of provisions requiring a school district to |
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reduce its local revenue level in excess of entitlement. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 12.013(b), Education Code, as amended by |
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Chapters 887 (S.B. 1697) and 1046 (S.B. 1365), Acts of the 87th |
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Legislature, Regular Session, 2021, is reenacted and amended to |
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read as follows: |
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(b) A home-rule school district is subject to: |
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(1) a provision of this title establishing a criminal |
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offense; |
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(2) a provision of this title relating to limitations |
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on liability; and |
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(3) a prohibition, restriction, or requirement, as |
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applicable, imposed by this title or a rule adopted under this |
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title, relating to: |
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(A) the Public Education Information Management |
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System (PEIMS) to the extent necessary to monitor compliance with |
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this subchapter as determined by the commissioner; |
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(B) educator certification under Chapter 21 and |
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educator rights under Sections 21.407, 21.408, and 22.001; |
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(C) criminal history records under Subchapter C, |
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Chapter 22; |
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(D) student admissions under Section 25.001; |
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(E) school attendance under Sections 25.085, |
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25.086, and 25.087; |
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(F) inter-district or inter-county transfers of |
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students under Subchapter B, Chapter 25; |
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(G) elementary class size limits under Section |
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25.112, in the case of any campus in the district that fails to |
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satisfy any standard under Section 39.054(e); |
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(H) high school graduation under Section 28.025; |
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(I) special education programs under Subchapter |
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A, Chapter 29; |
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(J) bilingual education under Subchapter B, |
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Chapter 29; |
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(K) prekindergarten programs under Subchapter E, |
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Chapter 29; |
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(L) safety provisions relating to the |
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transportation of students under Sections 34.002, 34.003, 34.004, |
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and 34.008; |
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(M) computation and distribution of state aid |
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under Chapters 31, 43, and 48; |
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(N) extracurricular activities under Section |
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33.081; |
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(O) health and safety under Chapter 38; |
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(P) the provisions of Subchapter A, Chapter 39; |
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(Q) public school accountability and special |
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investigations under Subchapters A, B, C, D, and J, Chapter 39, and |
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Chapter 39A; |
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(R) [options for local revenue levels in excess |
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of entitlement under Chapter 49; |
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[(S)] a bond or other obligation or tax rate |
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under Chapters 43, 45, and 48; |
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(S) [(T)] purchasing under Chapter 44; and |
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(T) parental options to retain a student under |
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Section 28.02124. |
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SECTION 2. Section 12.029(b), Education Code, is amended to |
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read as follows: |
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(b) If [Except as provided by Subchapter H, Chapter 49, if] |
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two or more school districts having different status, one of which |
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is home-rule school district status, consolidate into a single |
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district, the petition under Section 13.003 initiating the |
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consolidation must state the status for the consolidated district. |
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The ballot shall be printed to permit voting for or against the |
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proposition: "Consolidation of (names of school districts) into a |
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single school district governed as (status of school district |
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specified in the petition)." |
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SECTION 3. Section 13.054(i), Education Code, is amended to |
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read as follows: |
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(i) The funding provided under Subsection (f), (g), or (h) |
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is in addition to other funding the district receives through other |
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provisions of this code, including funding the district receives |
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under Chapter [Chapters] 48 [and 49]. |
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SECTION 4. Section 25.081(f), Education Code, is amended to |
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read as follows: |
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(f) The commissioner may proportionally reduce the amount |
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of funding a district receives under Chapter 46 or[,] 48[, or 49] |
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and the average daily attendance calculation for the district if |
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the district operates on a calendar that provides fewer minutes of |
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operation than required under Subsection (a). |
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SECTION 5. Section 29.087(j), Education Code, is amended to |
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read as follows: |
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(j) For purposes of funding under Chapters 46 and[,] 48, |
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[and 49,] a student attending a program authorized by this section |
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may be counted in attendance only for the actual number of hours |
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each school day the student attends the program, in accordance with |
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Section 25.081. |
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SECTION 6. Section 29.203(b), Education Code, is amended to |
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read as follows: |
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(b) A school district is entitled to the allotment provided |
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by Section 48.107 for each eligible student using a public |
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education grant. [If the district has a local revenue level greater |
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than the guaranteed local revenue level but less than the level |
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established under Section 48.257, a school district is entitled |
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under rules adopted by the commissioner to additional state aid in |
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an amount equal to the difference between the cost to the district |
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of providing services to a student using a public education grant |
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and the sum of the state aid received because of the allotment under |
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Section 48.107 and money from the available school fund |
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attributable to the student.] |
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SECTION 7. Section 37.0061, Education Code, is amended to |
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read as follows: |
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Sec. 37.0061. FUNDING FOR ALTERNATIVE EDUCATION SERVICES IN |
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JUVENILE RESIDENTIAL FACILITIES. A school district that provides |
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education services to pre-adjudicated and post-adjudicated |
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students who are confined by court order in a juvenile residential |
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facility operated by a juvenile board is entitled to count such |
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students in the district's average daily attendance for purposes of |
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receipt of state funds under the Foundation School Program. [If the |
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district has a local revenue level greater than the guaranteed |
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local revenue level but less than the level established under |
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Section 48.257, the district in which the student is enrolled on the |
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date a court orders the student to be confined to a juvenile |
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residential facility shall transfer to the district providing |
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education services an amount equal to the difference between the |
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average Foundation School Program costs per student of the district |
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providing education services and the sum of the state aid and the |
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money from the available school fund received by the district that |
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is attributable to the student for the portion of the school year |
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for which the district provides education services to the student.] |
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SECTION 8. Section 45.251(2), Education Code, is amended to |
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read as follows: |
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(2) "Foundation School Program" means the program |
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established under Chapters 46 and[,] 48, [and 49,] or any successor |
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program of state appropriated funding for school districts in this |
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state. |
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SECTION 9. Section 45.261(a), Education Code, is amended to |
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read as follows: |
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(a) If the commissioner orders payment from the money |
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appropriated to the Foundation School Program on behalf of a school |
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district [that is not required to reduce its local revenue level |
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under Section 48.257], the commissioner shall direct the |
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comptroller to withhold the amount paid from the first state money |
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payable to the district. If the commissioner orders payment from |
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the money appropriated to the Foundation School Program on behalf |
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of a school district that is not entitled to state assistance under |
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Chapter 48 [required to reduce its local revenue level under |
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Section 48.257], the commissioner shall order [increase amounts due |
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from] the district to remit to the commissioner an [under Chapter 49 |
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in a total] amount equal to the amount of payments made on behalf of |
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the district under this subchapter. Amounts withheld or received |
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under this subsection shall be used for the Foundation School |
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Program. |
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SECTION 10. Section 48.010(b), Education Code, is amended |
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to read as follows: |
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(b) In making the determinations regarding funding levels |
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required by Subsection (a), the commissioner shall: |
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(1) make adjustments as necessary to reflect changes |
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in a school district's maintenance and operations tax rate; and |
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(2) [for a district required to reduce its local |
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revenue level under Section 48.257, base the determinations on the |
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district's net funding levels after deducting any amounts required |
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to be expended by the district to comply with Chapter 49; and |
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[(3)] determine a district's weighted average daily |
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attendance in accordance with this chapter as it existed on January |
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1, 2011. |
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SECTION 11. Section 48.252(b), Education Code, is amended |
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to read as follows: |
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(b) Notwithstanding any other provision of this chapter [or |
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Chapter 49], a school district subject to this section is entitled |
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to receive for each student in average daily attendance at the |
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campus or program described by Subsection (a) an amount equivalent |
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to the difference, if the difference results in increased funding, |
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between: |
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(1) the amount described by Section 12.106; and |
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(2) the amount to which the district would be entitled |
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under this chapter. |
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SECTION 12. Section 48.2543(a), Education Code, is amended |
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to read as follows: |
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(a) Beginning with the 2022-2023 school year, a school |
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district is entitled to additional state aid to the extent that |
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state and local revenue under this chapter [and Chapter 49] is less |
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than the state and local revenue that would have been available to |
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the district under this chapter [and Chapter 49] as it [those |
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chapters] existed on September 1, 2021, if any increase in the |
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residence homestead exemption under Section 1-b(c), Article VIII, |
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Texas Constitution, as proposed by the 87th Legislature, 3rd Called |
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Session, 2021, had not occurred. |
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SECTION 13. Sections 48.2553(d) and (e), Education Code, |
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are amended to read as follows: |
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(d) Any additional tax effort by a school district |
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authorized under this section is not: |
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(1) eligible for funding under Subchapter B, C, or D; |
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or |
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(2) eligible for the guaranteed yield amount of state |
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funds under Section 48.202[; or |
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[(3) subject to the limit on local revenue under |
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Section 48.257]. |
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(e) The commissioner shall reduce state aid [or adjust the |
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limit on local revenue under Section 48.257] in an amount equal to |
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the amount of revenue generated by a school district's tax effort |
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that is not in compliance with this section or Section 48.2551. |
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SECTION 14. Section 48.258(a), Education Code, is amended |
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to read as follows: |
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(a) For purposes of Chapter [Chapters] 46 [and 49] and this |
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chapter, and to the extent money specifically authorized to be used |
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under this section is available, the commissioner shall adjust the |
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taxable value of property in a school district that, due to factors |
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beyond the control of the board of trustees, experiences a rapid |
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decline in the tax base used in calculating taxable values in excess |
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of four percent of the tax base used in the preceding year. |
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SECTION 15. Section 48.260(a), Education Code, is amended |
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to read as follows: |
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(a) For purposes of Chapter [Chapters] 46 [and 49] and this |
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chapter, the commissioner shall adjust the taxable value of |
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property of a school district all or part of which is located in an |
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area declared a disaster area by the governor under Chapter 418, |
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Government Code, as necessary to ensure that the district receives |
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funding based as soon as possible on property values as affected by |
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the disaster. |
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SECTION 16. Section 48.266(f), Education Code, is amended |
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to read as follows: |
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(f) If the amount appropriated for the Foundation School |
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Program for the second year of a state fiscal biennium is less than |
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the amount to which school districts and open-enrollment charter |
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schools are entitled for that year, the commissioner shall certify |
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the amount of the difference to the Legislative Budget Board not |
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later than January 1 of the second year of the state fiscal |
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biennium. The Legislative Budget Board shall propose to the |
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legislature that the certified amount be transferred to the |
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foundation school fund from the economic stabilization fund and |
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appropriated for the purpose of increases in allocations under this |
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subsection. If the legislature fails during the regular session to |
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enact the proposed transfer and appropriation and there are not |
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funds available under Subsection (h), the commissioner shall adjust |
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the total amounts due to each school district and open-enrollment |
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charter school under this chapter [and the total amounts necessary |
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for each school district to comply with the requirements of Chapter |
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49] by an amount determined by applying to each district and school |
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the same percentage adjustment to the total amount of state and |
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local revenue due to the district or school under this chapter [and |
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Chapter 49] so that the total amount of the adjustment to all |
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districts and schools results in an amount equal to the total |
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adjustment necessary. The following fiscal year[: |
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[(1)] a district's or school's entitlement under this |
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section is increased by an amount equal to the adjustment made under |
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this subsection[; and |
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[(2) the amount necessary for a district to comply |
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with the requirements of Chapter 49 is reduced by an amount |
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necessary to ensure a district's full recovery of the adjustment |
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made under this subsection]. |
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SECTION 17. Sections 48.267(a), (b), and (c), Education |
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Code, are amended to read as follows: |
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(a) The commissioner may make adjustments to amounts due to |
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a school district under this chapter or Chapter 46[, or to amounts |
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necessary for a district to comply with the requirements of Chapter |
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49,] as provided by this section. |
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(b) A school district that has a major taxpayer, as |
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determined by the commissioner, that because of a protest of the |
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valuation of the taxpayer's property fails to pay all or a portion |
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of the ad valorem taxes due to the district may apply to the |
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commissioner to have the district's taxable value of property or ad |
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valorem tax collections adjusted for purposes of this chapter or |
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Chapter 46 [or 49]. The commissioner may make the adjustment only |
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to the extent the commissioner determines that making the |
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adjustment will not: |
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(1) in the fiscal year in which the adjustment is made, |
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cause the amount to which school districts are entitled under this |
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chapter to exceed the amount appropriated for purposes of the |
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Foundation School Program for that year; and |
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(2) if the adjustment is made in the first year of a |
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state fiscal biennium, cause the amount to which school districts |
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are entitled under this chapter for the second year of the biennium |
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to exceed the amount appropriated for purposes of the Foundation |
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School Program for that year. |
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(c) The commissioner shall recover the benefit of any |
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adjustment made under this section by making offsetting adjustments |
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in the school district's taxable value of property or ad valorem tax |
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collections for purposes of this chapter or Chapter 46 [or 49] on a |
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final determination of the taxable value of property that was the |
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basis of the original adjustment, or in the second school year |
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following the year in which the adjustment is made, whichever is |
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earlier. |
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SECTION 18. Section 48.272(b), Education Code, is amended |
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to read as follows: |
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(b) Notwithstanding Subsection (a), the agency may recover |
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an overallocation of state funds over a period not to exceed the |
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subsequent five school years if the commissioner determines that |
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the overallocation was the result of exceptional circumstances |
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reasonably caused by statutory changes to Chapter 46, [or 49 or] |
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this chapter, or former Chapter 49 and related reporting |
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requirements. |
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SECTION 19. Section 48.2721, Education Code, is amended to |
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read as follows: |
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Sec. 48.2721. RECOVERY OF FUNDS FROM EXCESSIVE |
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TAXATION. The commissioner shall reduce state aid [or adjust the |
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limit on local revenue under Section 48.257] in an amount equal to |
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the amount of revenue generated by a school district's tax effort |
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that is not in compliance with Section 45.003 or this chapter. |
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SECTION 20. Section 48.275(b), Education Code, is amended |
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to read as follows: |
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(b) The amount of additional funds to which each school |
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district or participating charter school is entitled due to the |
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increases in formula funding made by Chapter 1187 (H.B. [No.] |
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3343), Acts of the 77th Legislature, Regular Session, 2001, and any |
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subsequent legislation amending the provisions amended by that Act |
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that increase formula funding under [Chapter 49 and] this chapter |
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to school districts and charter schools is available for purposes |
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of Subsection (c). |
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SECTION 21. Section 403.302(a), Government Code, is amended |
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to read as follows: |
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(a) The comptroller shall conduct a study using comparable |
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sales and generally accepted auditing and sampling techniques to |
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determine the total taxable value of all property in each school |
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district. The study shall determine the taxable value of all |
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property and of each category of property in the district and the |
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productivity value of all land that qualifies for appraisal on the |
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basis of its productive capacity and for which the owner has applied |
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for and received a productivity appraisal. [The comptroller shall |
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make appropriate adjustments in the study to account for actions |
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taken under Chapter 49, Education Code.] |
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SECTION 22. Section 1579.251(a), Insurance Code, is amended |
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to read as follows: |
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(a) The state shall assist employees of participating |
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school districts and charter schools in the purchase of group |
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health coverage under this chapter by providing for each covered |
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employee the amount of $900 each state fiscal year or a greater |
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amount as provided by the General Appropriations Act. The state |
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contribution shall be distributed through the school finance |
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formulas under Chapter [Chapters] 48 [and 49], Education Code, and |
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used by school districts and charter schools as provided by Section |
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48.275, Education Code. |
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SECTION 23. Section 21.01, Tax Code, is amended to read as |
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follows: |
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Sec. 21.01. REAL PROPERTY. Real property is taxable by a |
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taxing unit if located in the unit on January 1[, except as provided |
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by Chapter 49, Education Code]. |
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SECTION 24. Section 21.02(a), Tax Code, is amended to read |
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as follows: |
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(a) Except as provided by Subsection [Subsections (b) and] |
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(e) and by Sections 21.021, 21.04, and 21.05, tangible personal |
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property is taxable by a taxing unit if: |
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(1) it is located in the unit on January 1 for more |
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than a temporary period; |
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(2) it normally is located in the unit, even though it |
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is outside the unit on January 1, if it is outside the unit only |
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temporarily; |
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(3) it normally is returned to the unit between uses |
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elsewhere and is not located in any one place for more than a |
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temporary period; or |
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(4) the owner resides (for property not used for |
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business purposes) or maintains the owner's principal place of |
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business in this state (for property used for business purposes) in |
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the unit and the property is taxable in this state but does not have |
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a taxable situs pursuant to Subdivisions (1) through (3) of this |
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subsection. |
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SECTION 25. Section 312.210(b), Tax Code, is amended to |
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read as follows: |
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(b) A tax abatement agreement with the owner of real |
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property or tangible personal property that is located in the |
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reinvestment zone described by Subsection (a) [and in a school |
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district that has a local revenue level that does not exceed the |
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level established under Section 48.257, Education Code,] must |
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exempt from taxation: |
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(1) the portion of the value of the property in the |
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amount specified in the joint agreement among the municipality, |
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county, and junior college district; and |
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(2) an amount equal to 10 percent of the maximum |
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portion of the value of the property that may under Section |
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312.204(a) be otherwise exempted from taxation. |
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SECTION 26. The following laws are repealed: |
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(1) Sections 7.055(b)(34), 8.056, 29.203(g), and |
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48.257, Education Code; |
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(2) Chapter 49, Education Code; and |
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(3) Sections 21.02(b) and (c) and 25.25(k), Tax Code. |
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SECTION 27. This Act takes effect September 1, 2023. |