84R1003 GCB-D
	By: Rinaldi	H.B. No. 945

	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.  Sections 42.2516(e) and (f-2), Education Code,
	are amended to read as follows:
	(e)  For purposes of determining the total amount of state
	and local revenue to which a district is entitled under Subsection
	(b)(1), the commissioner shall determine the amount of state and
	local revenue per student in weighted average daily attendance to
	which the district would have been entitled during the 2009-2010
	school year under Chapter 41 and this chapter, as they existed on
	January 1, 2009, and multiply that amount by the number of students
	in weighted average daily attendance as determined in accordance
	with the changes to [Chapter 41 and] this chapter, including the
	repeal of former Section 42.103(e), made by H.B. No. 3646, Acts of
	the 81st Legislature, Regular Session, 2009.
	(f-2)  The rules adopted by the commissioner under
	Subsection (f-1) must:
	(1)  require the commissioner to determine, as if this
	section did not exist, the effect under [Chapter 41 and] this
	chapter of a school district's action described by Subsection
	(f-1)(1), (2), (3), or (4) on the total state revenue to which the
	district would be entitled [or the cost to the district of
	purchasing sufficient attendance credits to reduce the district's
	wealth per student to the equalized wealth level]; and
	(2)  require an increase or reduction in the amount of
	state revenue to which a school district is entitled under
	Subsection (b)(1) that is substantially equivalent to any change in
	total state revenue [or the cost of purchasing attendance credits]
	that would apply to the district if this section did not exist.
	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
	until 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,
	including a district receiving funds under Section 42.2516, 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 the district's full recovery of the adjustment
	made under this subsection].
	SECTION 17.  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 18.  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 19.  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 20.  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 21.  Section 42.302(a-1), Education Code, is amended
	to read as follows:
	(a-1)  [In this section, "wealth per student" has the meaning
	assigned by Section 41.001.] For purposes of Subsection (a), the
	dollar amount guaranteed level of state and local funds per
	weighted student per cent of tax effort ("GL") for a school district
	is:
	(1)  the greater of the amount of district tax revenue
	per weighted student per cent of tax effort that would be available
	to the Austin Independent School District, as determined by the
	commissioner in cooperation with the Legislative Budget Board, if
	the reduction of the limitation on tax increases as provided by
	Section 11.26(a-1), (a-2), or (a-3), Tax Code, did not apply, or the
	amount of district tax revenue per weighted student per cent of tax
	effort used for purposes of this subdivision in the preceding
	school year, for the first six cents by which the district's
	maintenance and operations tax rate exceeds the rate equal to the
	product of the state compression percentage, as determined under
	Section 42.2516, multiplied by the maintenance and operations tax
	rate adopted by the district for the 2005 tax year; and
	(2)  $31.95, for the district's maintenance and
	operations tax effort that exceeds the amount of tax effort
	described by Subdivision (1).
	SECTION 22.  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 23.  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 24.  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 25.  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 26.  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 27.  Section 26.08(i), Tax Code, as effective until
	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, including state funds that will be distributed to the
	district in that school year under Section 42.2516, Education Code,
	would provide the same amount of state funds distributed under
	Chapter 42, Education Code, including state funds distributed under
	Section 42.2516, 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 28.  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 29.  Section 26.08(i-1), Tax Code, as effective
	until September 1, 2017, is amended to read as follows:
	(i-1)  For purposes of Subsection [Subsections] (i) [and
	(k)], any change from the preceding school year to the current
	school year in the amount of state funds distributed to a school
	district under Section 42.2516, Education Code, is not considered
	to be a change in a funding element for Chapter 42, Education Code.
	The 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
	is computed on the basis of the amount actually distributed to the
	district under Section 42.2516, Education Code, in the preceding
	school year.
	SECTION 30.  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 31.  The following laws are repealed:
	(1)  Chapter 41, Education Code;
	(2)  Sections 7.055(b)(34), 8.056, 29.203(g),
	42.2516(f), and 42.2524(f), Education Code; and
	(3)  Sections 21.02(b) and (c), 25.25(k), and
	312.210(c), Tax Code.
	SECTION 32.  This Act takes effect September 1, 2015.