Bill Text: TX HB711 | 2019-2020 | 86th Legislature | Introduced
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) 2019-02-21 - Referred to Public Education [HB711 Detail]
Download: Texas-2019-HB711-Introduced.html
86R2419 GCB-F | ||
By: Landgraf | H.B. No. 711 |
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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 41.002, Education Code, is amended by | ||
adding Subsections (c) and (d) to read as follows: | ||
(c) For purposes of this chapter, the commissioner shall | ||
adjust, in accordance with Section 42.25271, the taxable values of | ||
a school district that meets the criteria for adjustment under that | ||
section. | ||
(d) For purposes of this chapter, the commissioner shall | ||
adjust, in accordance with Section 42.25272, the taxable values of | ||
a school district that meets the criteria for adjustment under that | ||
section. | ||
SECTION 2. Subchapter A, Chapter 42, Education Code, is | ||
amended by adding Section 42.012 to read as follows: | ||
Sec. 42.012. 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 by school districts as a result of | ||
attendance credits purchased under Subchapter D, Chapter 41. | ||
(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 3. Subchapter E, Chapter 42, Education Code, is | ||
amended by adding Sections 42.25271, 42.25272, and 42.25273 to read | ||
as follows: | ||
Sec. 42.25271. ADJUSTMENT FOR DISTRICT ENTITLED TO CERTAIN | ||
FEDERAL FUNDING. For purposes of Chapters 41 and 46 and this | ||
chapter, the commissioner shall adjust the taxable value of | ||
property of a district for a school year as necessary to ensure the | ||
district's wealth per student does not exceed the equalized wealth | ||
level provided by Section 41.002, 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 wealth per student that | ||
exceeds the equalized wealth level provided by Section 41.002. | ||
Sec. 42.25272. ADJUSTMENT FOR DISTRICT WITH TAXABLE VALUE | ||
OF PROPERTY INCREASED BY ASSOCIATED MINERAL RIGHTS. For purposes | ||
of Chapters 41 and 46 and this chapter, the commissioner shall | ||
adjust the taxable value of property of a district for a school year | ||
as necessary to ensure the district's wealth per student does not | ||
exceed the equalized wealth level provided by Section 41.002, if | ||
for that school year the district: | ||
(1) is identified by the select committee under | ||
Section 42.25273 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 wealth per student that | ||
exceeds the equalized wealth level provided by Section 41.002. | ||
Sec. 42.25273. 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 42.25272, 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 4. Section 42.302(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 | ||
42.303, 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, less any allotment | ||
to the district for transportation, any allotment under Section | ||
42.158 or 42.160, and 50 percent of the adjustment under Section | ||
42.102, 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 42.2521, 42.25271, or 42.25272, 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 42.2521, 42.25271, or 42.25272, divided | ||
by 100. | ||
SECTION 5. 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 42.005, 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 42.2521, 42.25271, | ||
or 42.25272, 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 42.2521, 42.25271, or 42.25272. | ||
SECTION 6. 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 | ||
42.2521, 42.25271, or 42.25272, divided by the district's average | ||
daily attendance as determined under Section 42.005. | ||
SECTION 7. 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 42.005, 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 42.2521, 42.2571, | ||
or 42.25272, 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 42.2521, 42.25271, or 42.25272. | ||
SECTION 8. This Act takes effect September 1, 2019. |