By: Murr H.B. No. 38       A BILL TO BE ENTITLED   AN ACT   relating to the elimination of certain property taxes for school   district maintenance and operations and the provision of public   education funding by increasing the rates of certain state taxes.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:   ARTICLE 1. PUBLIC SCHOOL FINANCE          SECTION 1.01.  Section 11.1511(c), Education Code, is   amended to read as follows:          (c)  The board may:                (1)  issue bonds and levy, pledge, assess, and collect   an annual ad valorem tax to pay the principal and interest on the   bonds as authorized under Sections 45.001 and 45.003;                (2)  levy, assess, and collect an annual ad valorem tax   for enrichment [maintenance and operation] of the district as   authorized under Sections 45.002 and 45.003;                (3)  employ a person to assess or collect the district's   taxes as authorized under Section 45.231; and                (4)  enter into contracts as authorized under this code   or other law and delegate contractual authority to the   superintendent as appropriate.          SECTION 1.02.  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, 43, and 48;                      (N)  extracurricular activities under Section   33.081;                      (O)  health and safety under Chapter 38;                      (P)  public school accountability under   Subchapters B, C, D, and J, Chapter 39, and Chapter 39A;                      (Q)  [options for local revenue levels in excess   of entitlement under Chapter 49;                      [(R)]  a bond or other obligation or tax rate   under Chapters 43, 45, and 48; and                      (R) [(S)]  purchasing under Chapter 44.          SECTION 1.03.  Section 12.029(b), Education Code, is amended   to read as follows:          (b)  If [Except as provided by Subchapter H, Chapter 49, 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 1.04.  Section 12.106(a), Education Code, is amended   to read as follows:          (a)  A charter holder is entitled to receive for the   open-enrollment charter school funding under Chapter 48 equal to   the amount of funding per student in weighted average daily   attendance, excluding the adjustment under Section 48.052, the   funding under Sections 48.101, 48.110, 48.111, and 48.112, and   enrichment funding under Section 48.202(a), to which the charter   holder would be entitled for the school under Chapter 48 if the   school were a school district [without a tier one local share for   purposes of Section 48.266].          SECTION 1.05.  Sections 13.054(f) and (i), Education Code,   are amended to read as follows:          (f)  For five years beginning with the school year in which   the annexation occurs, a school district shall receive additional   funding as provided by Subchapter G [under this subsection or   Subsection (h). The amount of funding shall be determined by   multiplying the lesser of the enlarged district's local fund   assignment computed under Section 48.256 or the enlarged district's   total cost of tier one by a fraction, the numerator of which is the   number of students residing in the territory annexed to the   receiving district preceding the date of the annexation and the   denominator of which is the number of students residing in the   district as enlarged on the date of the annexation, and multiplying   the resulting product by the quotient of the enlarged district's   maximum compressed tax rate, as determined under Section 48.2551,   for the current school year divided by the receiving district's   maximum compressed tax rate, as determined under Section 48.2551,   for the year in which the annexation occurred].          (i)  The funding provided under Subsection (f) or[,] (g)[, or   (h)] is in addition to other funding the district receives through   other provisions of this code, including Chapter [Chapters] 48 [and   49].          SECTION 1.06.  Section 21.402(a), Education Code, is amended   to read as follows:          (a)  Except as provided by Subsection (e-1) or (f), a school   district must pay each classroom teacher, full-time librarian,   full-time school counselor certified under Subchapter B, or   full-time school nurse not less than the minimum monthly salary,   based on the employee's level of experience in addition to other   factors, as determined by commissioner rule, determined by the   following formula:   MS = SF x FS   where:          "MS" is the minimum monthly salary;          "SF" is the applicable salary factor specified by Subsection   (c); and          "FS" is the amount, as determined by the commissioner under   Subsection (b), of the basic allotment as provided by Section   48.051(a) or (b) [for a school district with a maintenance and   operations tax rate at least equal to the state maximum compressed   tax rate, as defined by Section 48.051(a)].          SECTION 1.07.  Section 25.081(f), Education Code, is amended   to read as follows:          (f)  The commissioner may proportionally reduce the amount   of funding a district receives under Chapter 46 or[,] 48[, or 49]   and the average daily attendance calculation for the district if   the district operates on a calendar that provides fewer minutes of   operation than required under Subsection (a).          SECTION 1.08.  Section 29.008(b), Education Code, is amended   to read as follows:          (b)  Except as provided by Subsection (c), costs of an   approved contract for residential placement may be paid from a   combination of federal and[,] state[, and local] funds. [The local   share of the total contract cost for each student is that portion of   the local tax effort that exceeds the district's local fund   assignment under Section 48.256, divided by the average daily   attendance in the district. If the contract involves a private   facility, the state share of the total contract cost is that amount   remaining after subtracting the local share. If the contract   involves a public facility, the state share is that amount   remaining after subtracting the local share from the portion of the   contract that involves the costs of instructional and related   services. For purposes of this subsection, "local tax effort"   means the total amount of money generated by taxes imposed for debt   service and maintenance and operation less any amounts paid into a   tax increment fund under Chapter 311, Tax Code.]          SECTION 1.09.  Section 29.087(j), Education Code, is amended   to read as follows:          (j)  For purposes of funding under Chapters 46 and[,] 48,   [and 49,] a student attending a program authorized by this section   may be counted in attendance only for the actual number of hours   each school day the student attends the program, in accordance with   Section 25.081.          SECTION 1.10.  Section 29.203(b), Education Code, is amended   to read as follows:          (b)  A school district is entitled to the allotment provided   by Section 48.107 for each eligible student using a public   education grant. A [If the district has a local revenue level   greater than the guaranteed local revenue level but less than the   level established under Section 48.257, 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 48.107 and money from the available school   fund attributable to the student.          SECTION 1.11.  Sections 30.003(b), (f-1), and (f-2),   Education Code, are amended to read as follows:          (b)  If the student is admitted to the school for a full-time   program for the equivalent of two long semesters, the district's   share of the cost is an amount equal to the sum of:                (1)  the dollar amount of enrichment [maintenance] and   debt service taxes imposed by the district for that year divided by   the district's average daily attendance for the preceding year; and                (2)  a dollar amount determined by the commissioner.          (f-1)  The commissioner shall determine the total amount   that the Texas School for the Blind and Visually Impaired and the   Texas School for the Deaf would have received from school districts   in accordance with this section if [the following provisions had   not reduced the districts' share of the cost of providing education   services:                [(1)]  H.B. No. 1, Acts of the 79th Legislature, 3rd   Called Session, 2006[;                [(2)  Section 45.0032;                [(3)  Section 48.255; and                [(4)  Section 48.2551.          [(f-2)  The amount determined under Subsection (f-1)], had   not reduced the districts' share of the cost of providing education   services. That amount, minus any amount the schools do receive from   school districts, shall be set aside as a separate account in the   foundation school fund and appropriated to those schools for   educational purposes.          SECTION 1.12.  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 local revenue level greater than the guaranteed   local revenue level but less than the level established under   Section 48.257, 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 1.13.  Section 44.004, Education Code, is amended by   amending Subsections (c), (c-1), (c-2), and (i) and adding   Subsections (c-3) and (c-4) to read as follows:          (c)  The notice of public meeting to discuss and adopt the   budget and the proposed tax rate may not be smaller than one-quarter   page of a standard-size or a tabloid-size newspaper, and the   headline on the notice must be in 18-point or larger type. Subject   to Subsection (d), the notice must:                (1)  contain a statement in the following form:   "NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE          "The (name of school district) will hold a public meeting at   (time, date, year) in (name of room, building, physical location,   city, state). The purpose of this meeting is to discuss the school   district's budget that will determine the tax rate that will be   adopted. Public participation in the discussion is invited." The   statement of the purpose of the meeting must be in bold type. In   reduced type, the notice must state: "The tax rate that is   ultimately adopted at this meeting or at a separate meeting at a   later date may not exceed the proposed rate shown below unless the   district publishes a revised notice containing the same information   and comparisons set out below and holds another public meeting to   discuss the revised notice.";                (2)  contain a section entitled "Comparison of Proposed   Budget with Last Year's Budget," which must show the difference,   expressed as a percent increase or decrease, as applicable, in the   amounts budgeted for the preceding fiscal year and the amount   budgeted for the fiscal year that begins in the current tax year for   each of the following:                      (A)  enrichment [maintenance and operations];                      (B)  debt service; and                      (C)  total expenditures;                (3)  contain a section entitled "Total Appraised Value   and Total Taxable Value," which must show the total appraised value   and the total taxable value of all property and the total appraised   value and the total taxable value of new property taxable by the   district in the preceding tax year and the current tax year as   calculated under Section 26.04, Tax Code;                (4)  contain a statement of the total amount of the   outstanding and unpaid bonded indebtedness of the school district;                (5)  contain a section entitled "Comparison of Proposed   Rates with Last Year's Rates," which must:                      (A)  show in rows the tax rates described by   Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of   property, for columns entitled "Enrichment," ["Maintenance &   Operations,"] "Interest & Sinking Fund," and "Total," which is the   sum of "Enrichment" ["Maintenance & Operations"] and "Interest &   Sinking Fund":                            (i)  the school district's "Last Year's   Rate";                            (ii)  the "Rate to Maintain Same Level of   Enrichment [Maintenance & Operations] Revenue & Pay Debt Service,"   which:                                  (a)  in the case of "Enrichment,"   ["Maintenance & Operations,"] is the tax rate that, when applied to   the current taxable value for the district, as certified by the   chief appraiser under Section 26.01, Tax Code, and as adjusted to   reflect changes made by the chief appraiser as of the time the   notice is prepared, would impose taxes in an amount that, when added   to state funds to be distributed to the district under Subchapter E,   Chapter 48, would provide the same amount of enrichment   [maintenance and operations] taxes and state funds distributed   under Subchapter E, Chapter 48, per student in average daily   attendance for the applicable school year that was available to the   district in the preceding school year; and                                  (b)  in the case of "Interest & Sinking   Fund," is the tax rate that, when applied to the current taxable   value for the district, as certified by the chief appraiser under   Section 26.01, Tax Code, and as adjusted to reflect changes made by   the chief appraiser as of the time the notice is prepared, and when   multiplied by the district's anticipated collection rate, would   impose taxes in an amount that, when added to state funds to be   distributed to the district under Chapter 46 and any excess taxes   collected to service the district's debt during the preceding tax   year but not used for that purpose during that year, would provide   the amount required to service the district's debt; and                            (iii)  the "Proposed Rate";                      (B)  contain fourth and fifth columns aligned with   the columns required by Paragraph (A) that show, for each row   required by Paragraph (A):                            (i)  the "Local Revenue per Student," which   is computed by multiplying the district's total taxable value of   property, as certified by the chief appraiser for the applicable   school year under Section 26.01, Tax Code, and as adjusted to   reflect changes made by the chief appraiser as of the time the   notice is prepared, by the total tax rate, and dividing the product   by the number of students in average daily attendance in the   district for the applicable school year; and                            (ii)  the "State Revenue per Student," which   is computed by determining the amount of state aid received or to be   received by the district under Chapters 43, 46, and 48 and dividing   that amount by the number of students in average daily attendance in   the district for the applicable school year; and                      (C)  contain an asterisk after each calculation   for "Interest & Sinking Fund" and a footnote to the section that, in   reduced type, states "The Interest & Sinking Fund tax revenue is   used to pay for bonded indebtedness on construction, equipment, or   both. The bonds, and the tax rate necessary to pay those bonds,   were approved by the voters of this district.";                (6)  contain a section entitled "Comparison of Proposed   Levy with Last Year's Levy on Average Residence," which must:                      (A)  show in rows the information described by   Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns   entitled "Last Year" and "This Year":                            (i)  "Average Market Value of Residences,"   determined using the same group of residences for each year;                            (ii)  "Average Taxable Value of Residences,"   determined after taking into account the limitation on the   appraised value of residences under Section 23.23, Tax Code, and   after subtracting all homestead exemptions applicable in each year,   other than exemptions available only to disabled persons or persons   65 years of age or older or their surviving spouses, and using the   same group of residences for each year;                            (iii)  "Last Year's Rate Versus Proposed   Rate per $100 Value"; and                            (iv)  "Taxes Due on Average Residence,"   determined using the same group of residences for each year; and                      (B)  contain the following information: "Increase   (Decrease) in Taxes" expressed in dollars and cents, which is   computed by subtracting the "Taxes Due on Average Residence" for   the preceding tax year from the "Taxes Due on Average Residence" for   the current tax year;                (7)  contain the following statement in bold print:   "Under state law, the dollar amount of school taxes imposed on the   residence of a person 65 years of age or older or of the surviving   spouse of such a person, if the surviving spouse was 55 years of age   or older when the person died, may not be increased above the amount   paid in the first year after the person turned 65, regardless of   changes in tax rate or property value."; and                (8)  [contain the following statement in bold print:   "Notice of Voter-Approval Rate: The highest tax rate the district   can adopt before requiring voter approval at an election is (the   school district voter-approval rate determined under Section   26.08, Tax Code). This election will be automatically held if the   district adopts a rate in excess of the voter-approval rate of (the   school district voter-approval rate)."; and                [(9)]  contain a section entitled "Fund Balances,"   which must include the estimated amount of interest and sinking   fund balances and the estimated amount of enrichment [maintenance   and operation] or general fund balances remaining at the end of the   current fiscal year that are not encumbered with or by   corresponding debt obligation, less estimated funds necessary for   the operation of the district before the receipt of the first   payment under Chapter 48 in the succeeding school year.          (c-1)  The notice described by Subsection (c) must state in a   distinct row or on a separate or individual line for each of the   following taxes:                (1)  the proposed rate of the school district's   enrichment [maintenance] tax described by Section 45.003, under the   heading "Enrichment [Maintenance] Tax"; and                (2)  if the school district has issued ad valorem tax   bonds under Section 45.001, the proposed rate of the tax to pay for   the bonds, under the heading "School Debt Service Tax Approved by   Local Voters."          (c-2)  The notice described by Subsection (c) must include a   statement that a school district may not increase the district's   enrichment [maintenance and operations] tax rate to create a   surplus in enrichment [maintenance and operations] tax revenue for   the purpose of paying the district's debt service.          (c-3)  For the notice required by Subsection (c) for the 2025   tax year:                (1)  the rows required by Subsection (c)(5) entitled   "Last Year's Rate" and the rows required by Subsection (c)(6)(A)   entitled "Last Year's Rate Versus Proposed Rate per $100 Value" and   "Taxes Due on Average Residence" and the item required by   Subsection (c)(6)(B) entitled "Increase (Decrease) in Taxes" must   contain an asterisk and a footnote to that section that, in reduced   type, states "The 87th Legislature eliminated certain school   district maintenance and operations taxes. The tax rate shown as '   Last Year's Rate' and the 'Taxes Due on Average Residence' for last   year are based on the sum of the interest and sinking fund tax rate   adopted by the district for the 2024 tax year and the rate of any tax   the district imposed for enrichment for that tax year, not the total   tax rate."; and                (2)  the computation required by Subsection (c)(6)(B)   shall be made using:                      (A)  for the 2024 tax year, the sum of the interest   and sinking fund tax rate adopted by the district for that tax year   and the rate of any tax the district imposed for enrichment for that   tax year; and                      (B)  for the 2025 tax year, the sum of the   district's proposed interest and sinking fund tax rate for that tax   year and the district's proposed enrichment tax rate for that tax   year.          (c-4)  Subsection (c-3) and this subsection expire January   1, 2026.          (i)  A school district that uses a certified estimate, as   authorized by Subsection (h), may adopt a budget at the public   meeting designated in the notice prepared using the estimate, but   the district may not adopt a tax rate before the district receives   the certified appraisal roll for the district required by Section   26.01(a), Tax Code. After receipt of the certified appraisal roll,   the district must publish a revised notice and hold another public   meeting before the district may adopt a tax rate that exceeds[:                [(1)]  the rate proposed in the notice prepared using   the estimate[; or                [(2)  the district's voter-approval rate determined   under Section 26.08, Tax Code, using the certified appraisal roll].          SECTION 1.14.  The heading to Subchapter A, Chapter 45,   Education Code, is amended to read as follows:   SUBCHAPTER A. TAX BONDS AND ENRICHMENT [MAINTENANCE] TAXES          SECTION 1.15.  Section 45.002, Education Code, is amended to   read as follows:          Sec. 45.002.  ENRICHMENT [MAINTENANCE] TAXES. The governing   board of an independent school district, including the city council   or commission that has jurisdiction over a municipally controlled   independent school district, the governing board of a rural high   school district, and the commissioners court of a county, on behalf   of each common school district under its jurisdiction, may levy,   assess, and collect annual ad valorem taxes for the enrichment   [further maintenance] of public schools in the district, subject to   Section 45.003.          SECTION 1.16.  Section 45.003, Education Code, is amended by   adding Subsections (a-1) and (a-2) and amending Subsection (d) to   read as follows:          (a-1)  The governing board or commissioners court may levy   the tax described by Section 45.002 at a rate of $0.05 or less per   $100 of taxable value without an election.          (a-2)  A governing board or commissioners court that, for the   2024 tax year, levied an enrichment tax at a rate in excess of $0.05   per $100 of taxable value may continue to levy the tax at a rate that   does not exceed that rate without an election.          (d)  A proposition submitted to authorize the levy of   enrichment [maintenance] taxes must include the question of whether   the governing board or commissioners court may levy, assess, and   collect annual ad valorem taxes for the enrichment [further   maintenance] of public schools, at a rate not to exceed the rate   stated in the proposition. For any year, the enrichment   [maintenance] tax rate adopted by the district may not exceed $0.17   per $100 of taxable value [adopted by the district may not exceed   the rate equal to the sum of $0.17 and the district's maximum   compressed rate, as determined under Section 48.2551].          SECTION 1.17.  Sections 45.006(b), (c), (d), (e), and (f),   Education Code, are amended to read as follows:          (b)  A [Notwithstanding Section 45.003, a] school district   may levy, assess, and collect maintenance taxes [at a rate that   exceeds $1.50 per $100 valuation of taxable property] if:                (1)  the [additional ad valorem] taxes are necessary to   pay a debt of the district that:                      (A)  resulted from the rendition of a judgment   against the district before May 1, 1995;                      (B)  is greater than $5 million;                      (C)  decreases a property owner's ad valorem tax   liability;                      (D)  requires the district to refund to the   property owner the difference between the amount of taxes paid by   the property owner and the amount of taxes for which the property   owner is liable; and                      (E)  is payable according to the judgment in more   than one of the district's fiscal years; and                (2)  the [additional] taxes are:                      (A)  imposed at a rate that, when added to the rate   of any ad valorem tax imposed by the district under Section 45.002   or 45.007, produces a rate that does not exceed $0.17 per $100 of   taxable value; and                      (B)  approved by the voters of the district at an   election held for that purpose.          (c)  Except as provided by Subsection (e), any [additional]   maintenance taxes that the district collects under this section may   be used only to pay the district's debt under Subsection (b)(1).          (d)  Except as provided by Subsection (e), the authority of a   school district to levy the [additional] ad valorem taxes under   this section expires when the judgment against the district is   paid.          (e)  The governing body of a school district shall pay the   district's debt under Subsection (b)(1) in a lump sum. To satisfy   the district's debt under Subsection (b)(1), the governing body may   levy and collect [additional] maintenance taxes as provided by   Subsection (b) and may issue bonds. If bonds are issued:                (1)  the district may use any [additional] maintenance   taxes collected by the district under this section to pay debt   service on the bonds; and                (2)  the authority of the district to levy the   [additional] ad valorem taxes expires when the bonds are paid in   full or the judgment is paid, whichever occurs later.          (f)  The governing body of a school district that adopts a   tax rate under this section [that exceeds $1.50 per $100 valuation   of taxable property] may set the amount of the exemption from   taxation authorized by Section 11.13(n), Tax Code, at any time   before the date the governing body adopts the district's tax rate   for the tax year in which the election approving the [additional]   taxes is held.          SECTION 1.18.  Subchapter A, Chapter 45, Education Code, is   amended by adding Section 45.007 to read as follows:          Sec. 45.007.  AD VALOREM TAX FOR JUNIOR COLLEGE PURPOSES IN   CERTAIN SCHOOL DISTRICTS. (a) This section applies only to an   independent school district in a county with a population of more   than two million.          (b)  Subject to Subsection (e), the governing body of an   independent school district that governs a junior college district   under Subchapter B, Chapter 130, may impose an ad valorem tax at a   rate not to exceed $0.05 on the $100 valuation of taxable property   in the district for the use of the junior college district for   facilities and equipment or for the maintenance and operating   expenses of the junior college district.          (c)  All real property purchased with proceeds of a tax   imposed under this section or with funds dedicated under Section   45.105(e) as that section existed January 1, 2024, is the property   of the school district but is subject to the exclusive control of   the governing body of the junior college district for as long as the   junior college district uses the property for educational purposes.          (d)  An independent school district that, under Section   45.105(e) as that section existed January 1, 2024, dedicated a   specific percentage of the school district's tax levy to the use of   a junior college district governed by the school district for   facilities and equipment or for the maintenance and operating   expenses of the junior college district is not required to hold an   election to impose a tax under this section.          (e)  The tax authorized under this section may not be imposed   at a rate that, when added to the rate of any ad valorem tax imposed   by the district under Section 45.002 or 45.006, produces a rate that   exceeds $0.17 per $100 of taxable value.          SECTION 1.19.  Section 45.104(a), Education Code, is amended   to read as follows:          (a)  The board of trustees of any school district may pledge   its delinquent taxes levied for maintenance purposes for specific   past[, current, and future] school years or levied for enrichment   purposes for specific past, current, and future school years as   security for a loan, and may evidence any such loan with negotiable   notes, and the delinquent taxes pledged shall be applied against   the principal and interest of the loan. Negotiable notes issued   under this subsection must mature not more than 20 years from their   date.          SECTION 1.20.  Section 45.108(a), Education Code, is amended   to read as follows:          (a)  Independent or consolidated school districts may borrow   money for the purpose of paying maintenance expenses and may   evidence those loans with negotiable or nonnegotiable notes, except   that the loans may not at any time exceed 75 percent of the previous   year's income. The notes may be payable from and secured by a lien   on and pledge of any available funds of the district[, including   proceeds of a maintenance tax]. The term "maintenance expenses" or   "maintenance expenditures" as used in this section means any lawful   expenditure of the school district other than payment of principal   of and interest on bonds. The term includes expenditures relating   to notes issued to refund notes previously issued under this   section if the refunding notes are coterminous with the refunded   obligation. The term also includes all costs incurred in connection   with environmental cleanup and asbestos cleanup and removal   programs implemented by school districts or in connection with the   maintenance, repair, rehabilitation, or replacement of heating,   air conditioning, water, sanitation, roofing, flooring, electric,   or other building systems of existing school properties. Notes   issued pursuant to this section may be issued to mature in not more   than 20 years from their date. Notes issued for a term longer than   one year must be treated as "debt" as defined in Section 26.012(7),   Tax Code.          SECTION 1.21.  Section 45.109(c), Education Code, is amended   to read as follows:          (c)  The consideration for a contract under this section may   be paid from any source available to the independent school   district. [If voted as provided by this section, the district may   pledge to the payment of the contract an annual maintenance tax in   an amount sufficient, without limitation, to provide all of the   consideration. If voted and pledged, the maintenance tax shall be   assessed, levied, and collected annually in the same manner as   provided by general law applicable to independent school districts   for other maintenance taxes.]          SECTION 1.22.  Section 45.156(c), Education Code, is amended   to read as follows:          (c)  The consideration payable by the district under a   contract may be paid from any source available to the district. [If   voted, the district may pledge to the payment of the contract an   annual maintenance tax in an amount sufficient, without limitation,   to provide all or part of the consideration. If voted and pledged,   the maintenance tax shall be assessed, levied, and collected   annually in the same manner as provided by general law applicable to   independent school districts for other maintenance taxes. A   maintenance tax may not be pledged to the payment of any contract or   assessed, levied, or collected unless an election is held in the   district, and the maintenance tax for that purpose is favorably   voted by a majority of the qualified voters of the district. The   election order for an election under this subsection must include   the polling place or places and any other matters considered   advisable by the board of trustees.]          SECTION 1.23.  Section 45.251(2), Education Code, is amended   to read as follows:                (2)  "Foundation School Program" means the program   established under Chapters 46 and[,] 48, [and 49,] or any successor   program of state appropriated funding for school districts in this   state.          SECTION 1.24.  Sections 45.261(a) and (e), Education Code,   are 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 local revenue level   under Section 48.257], 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 required to reduce its local revenue   level under Section 48.257, the commissioner shall increase amounts   due from the district under Chapter 49 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.          (e)  Any part of a school district's tax rate attributable to   producing revenue for purposes of Subsection (c)(1) is considered   part of the district's[:                [(1)  current debt rate for purposes of computing a   voter-approval tax rate under Section 26.08, Tax Code; and                [(2)]  interest and sinking fund tax rate.          SECTION 1.25.  Section 46.003(d), Education Code, is amended   to read as follows:          (d)  The amount budgeted by a district for payment of   eligible bonds may include:                (1)  bond taxes collected in the current school year;                (2)  bond taxes collected in a preceding school year in   excess of the amount necessary to pay the district's share of actual   debt service on bonds in that year, provided that the taxes were not   used to generate other state financial assistance for the district;   [or]                (3)  enrichment [maintenance and operations] taxes   collected in the current school year or a preceding school year in   excess of the amount eligible to be used to generate other state   financial assistance for the district; or                (4)  maintenance and operations taxes collected in a   preceding school year in excess of the amount eligible to be used to   generate other state financial assistance for the district.          SECTION 1.26.  Section 46.004(a), Education Code, is amended   to read as follows:          (a)  A district may receive state assistance in connection   with a lease-purchase agreement concerning an instructional   facility. For purposes of this subchapter:                (1)  taxes levied for purposes of enrichment   [maintenance and operations] that are necessary to pay a district's   share of the payments under a lease-purchase agreement for which   the district receives state assistance under this subchapter are   considered to be bond taxes; and                (2)  payments under a lease-purchase agreement are   considered to be payments of principal of and interest on bonds.          SECTION 1.27.  Section 46.032(c), Education Code, is amended   to read as follows:          (c)  The amount budgeted by a district for payment of   eligible bonds may include:                (1)  bond taxes collected in the current school year;                (2)  bond taxes collected in a preceding school year in   excess of the amount necessary to pay the district's share of actual   debt service on bonds in that year, provided that the taxes were not   used to generate other state financial assistance for the district;   [or]                (3)  enrichment [maintenance and operations] taxes   collected in the current school year or a preceding school year in   excess of the amount eligible to be used to generate other state   financial assistance for the district; or                (4)  maintenance and operations taxes collected in a   preceding school year in excess of the amount eligible to be used to   generate other state financial assistance for the district.          SECTION 1.28.  Section 47.003, Education Code, is amended to   read as follows:          Sec. 47.003.  USES OF FUND. Except as otherwise provided by   this chapter, money in the fund may be appropriated only[:                [(1)]  to pay the cost of tier one allotments under   Chapter 48[; or                [(2)  for the purpose of reducing school district   maintenance and operations ad valorem tax rates].          SECTION 1.29.  Section 48.010(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 enrichment [maintenance and operations] tax   rate; and                (2)  [for a district required to reduce its local   revenue level under Section 48.257, 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 49; and                [(3)]  determine a district's weighted average daily   attendance in accordance with this chapter as it existed on January   1, 2011.          SECTION 1.30.  Section 48.051(a), Education Code, is amended   to read as follows:          (a)  For each student in average daily attendance, not   including the time students spend each day in special education   programs in an instructional arrangement other than mainstream or   career and technology education programs, for which an additional   allotment is made under Subchapter C, a district is entitled to an   allotment equal to [the lesser of] $6,160 [or the amount that   results from the following formula:   [A = $6,160 X TR/MCR   [where:          ["A" is the allotment to which a district is entitled;          ["TR" is the district's tier one maintenance and operations   tax rate, as provided by Section 45.0032; and          ["MCR" is the district's maximum compressed tax rate, as   determined under Section 48.2551].          SECTION 1.31.  Section 48.053(b), Education Code, is amended   to read as follows:          (b)  For each student who resides in this state and is   enrolled in the district, a school district to which this section   applies is entitled to funding under this chapter [as if the   district had no tier one local share for purposes of Section   48.256].          SECTION 1.32.  Section 42.168, Education Code, as added by   Chapter 464 (S.B. 11), Acts of the 86th Legislature, Regular   Session, 2019, is transferred to Subchapter C, Chapter 48,   Education Code, redesignated as Section 48.115, Education Code, and   amended to read as follows:          Sec. 48.115 [42.168].  SCHOOL SAFETY ALLOTMENT. (a) From   funds appropriated for that purpose, the commissioner shall provide   to a school district an annual allotment in the amount provided by   appropriation for each student in average daily attendance.          (b)  Funds allocated under this section must be used to   improve school safety and security, including costs associated   with:                (1)  securing school facilities, including:                      (A)  improvements to school infrastructure;                      (B)  the use or installation of physical barriers;   and                      (C)  the purchase and maintenance of:                            (i)  security cameras or other security   equipment; and                            (ii)  technology, including communications   systems or devices, that facilitates communication and information   sharing between students, school personnel, and first responders in   an emergency;                (2)  providing security for the district, including:                      (A)  employing school district peace officers,   private security officers, and school marshals; and                      (B)  collaborating with local law enforcement   agencies, such as entering into a memorandum of understanding for   the assignment of school resource officers to schools in the   district;                (3)  school safety and security training and planning,   including:                      (A)  active shooter and emergency response   training;                      (B)  prevention and treatment programs relating   to addressing adverse childhood experiences; and                      (C)  the prevention, identification, and   management of emergencies and threats, including:                            (i)  providing mental health personnel and   support;                            (ii)  providing behavioral health services;   and                            (iii)  establishing threat reporting   systems; and                (4)  providing programs related to suicide prevention,   intervention, and postvention.          (c)  A school district may use funds allocated under this   section for equipment or software that is used for a school safety   and security purpose and an instructional purpose, provided that   the instructional use does not compromise the safety and security   purpose of the equipment or software.          (d)  [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 to receive as provided by appropriation,   against the total amount required under Section 41.093 for the   district to purchase attendance credits.          [(e)]  The commissioner may adopt rules to implement this   section.          SECTION 1.33.  Section 48.202, Education Code, is amended by   amending Subsections (a), (a-1), (b), and (d) and adding Subsection   (b-1) to read as follows:          (a)  Each school district is guaranteed a specified amount   per weighted student in state and local funds for each cent of tax   effort [over that required for the district's local fund   assignment] up to the maximum level specified in this subchapter.     The amount of state support, subject only to the maximum amount   under Section 48.203, is determined by the formula:   GYA = (GL X WADA X DTR X 100) - LR   where:          "GYA" is the guaranteed yield amount of state funds to be   allocated to the district;          "GL" is the dollar amount guaranteed level of state and local   funds per weighted student per cent of tax effort, which is an   amount described by Subsection (a-1) or a greater amount for any   year provided by appropriation;          "WADA" is the number of students in weighted average daily   attendance, which is calculated by dividing the sum of the school   district's allotments under Subchapters B and C by the basic   allotment for the applicable year;          "DTR" is the district enrichment tax rate of the school   district, which is determined by subtracting the amounts specified   by Subsection (b) from the total amount of enrichment [maintenance   and operations] taxes collected by the school district for the   applicable school year and dividing the difference by the quotient   of the district's taxable value of property as determined under   Subchapter M, Chapter 403, Government Code, or, if applicable,   under Section 48.258 or by the quotient of the value [of "DPV" as]   determined under Subsection (b-1) [Section 48.256(d)] if that   subsection applies to the district, divided by 100; and          "LR" is the local revenue, which is determined by multiplying   "DTR" by the quotient of the district's taxable value of property as   determined under Subchapter M, Chapter 403, Government Code, or, if   applicable, under Section 48.258 or by the quotient of the value [of   "DPV" as] determined under Subsection (b-1) [Section 48.256(d)] if   that subsection applies to the district, divided by 100.          (a-1)  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 available to a school   district at the 96th percentile of wealth per weighted student or   the amount that results from multiplying $6,160, or the greater   amount provided under Section 48.051(b), if applicable, by 0.016,   for the first eight cents of [by which] the district's enrichment   [maintenance and operations] tax rate [exceeds the district's tier   one tax rate]; and                (2)  [subject to Subsection (f),] the amount that   results from multiplying $6,160, or the greater amount provided   under Section 48.051(b), if applicable, by 0.008, for the   district's enrichment [maintenance and operations] tax effort that   exceeds the amount of tax effort described by Subdivision (1).          (b)  In computing the district enrichment tax rate of a   school district, the total amount of enrichment [maintenance and   operations] taxes collected by the school district does not include   the amount of[:                [(1)  the district's local fund assignment under   Section 48.256; or                [(2)]  taxes paid into a tax increment fund under   Chapter 311, Tax Code.          (b-1)  This subsection applies to a school district in which   the board of trustees entered into a written agreement with a   property owner under Section 313.027, Tax Code, for the   implementation of a limitation on appraised value under Subchapter   B or C, Chapter 313, Tax Code.  For purposes of determining "DTR" or   "LR" under Subsection (a) for a school district to which this   subsection applies, the commissioner shall exclude from the   district's taxable value of property as determined under Subchapter   M, Chapter 403, Government Code, or, if applicable, under Section   48.258 a portion of the market value of property not otherwise fully   taxable by the district under Subchapter B or C, Chapter 313, Tax   Code, before the expiration of the subchapter. The comptroller   shall provide information to the agency necessary for this   subsection.  A revenue protection payment required as part of an   agreement for a limitation on appraised value shall be based on the   district's taxable value of property for the preceding tax year.          (d)  For purposes of this section, the total amount of   enrichment [maintenance and operations] taxes collected for an   applicable school year by a school district with alternate tax   dates, as authorized by Section 26.135, Tax Code, is the amount of   enrichment taxes collected on or after January 1 of the year in   which the school year begins and not later than December 31 of the   same year.          SECTION 1.34.  Section 48.203, Education Code, is amended to   read as follows:          Sec. 48.203.  LIMITATION ON ENRICHMENT TAX RATE. The   district enrichment tax rate ("DTR") under Section 48.202 may not   exceed $0.17 [the amount] per $100 of valuation [by which the   maximum rate permitted under Section 45.003 exceeds the rate used   to determine the district's local share under Section 48.256, or a   greater amount for any year provided by appropriation].          SECTION 1.35.  Section 48.251(c), Education Code, is amended   to read as follows:          (c)  The program shall be financed by:                (1)  state available school funds distributed in   accordance with the law;                (2)  ad valorem tax revenue generated by local school   district effort as provided by Subchapter E; and                (3)  state funds appropriated for the purposes of   public school education and allocated to each district in an amount   sufficient to finance the cost of each district's Foundation School   Program not covered by other funds specified in this subsection.          SECTION 1.36.  Section 48.252(b), Education Code, is amended   to read as follows:          (b)  Notwithstanding any other provision of this chapter [or   Chapter 49], a school district subject to this section is entitled   to receive for each student in average daily attendance at the   campus or program described by Subsection (a) an amount equivalent   to the difference, if the difference results in increased funding,   between:                (1)  the amount described by Section 12.106; and                (2)  the amount to which the district would be entitled   under this chapter.          SECTION 1.37.  Section 48.254, Education Code, is amended to   read as follows:          Sec. 48.254.  ADDITIONAL STATE AID FOR AD VALOREM TAX   CREDITS UNDER TEXAS ECONOMIC DEVELOPMENT ACT. For each school   year, a school district[, including a school district that is   otherwise ineligible for state aid under this chapter,] is entitled   to state aid in an amount equal to the amount of all tax credits   credited against ad valorem taxes of the district in that year under   former Subchapter D, Chapter 313, Tax Code.          SECTION 1.38.  Section 48.258(a), Education Code, is amended   to read as follows:          (a)  For purposes of Chapter [Chapters] 46 [and 49] 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 1.39.  Section 48.259(e), Education Code, is amended   to read as follows:          (e)  The commissioner shall notify school districts as soon   as practicable as to the availability of funds under this section.     [For purposes of computing a voter-approval tax rate under Section   26.08, Tax Code, a district shall adjust the district's tax rate   limit to reflect assistance received under this section.]          SECTION 1.40.  Section 48.260(a), Education Code, is amended   to read as follows:          (a)  For purposes of Chapter [Chapters] 46 [and 49] 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 1.41.  Sections 48.266(a), (c), and (f), Education   Code, are amended to read as follows:          (a)  For each school year the commissioner shall determine:                (1)  the amount of money to which a school district is   entitled under Subchapters B, C, and D;                (2)  the amount of money to which a school district is   entitled under Subchapter E;                (3)  the amount of money allocated to the district from   the available school fund; and                (4)  [the amount of each district's tier one local share   under Section 48.256; and                [(5)]  the amount of each district's tier two local   share under Section 48.202 for:                      (A)  the district's enrichment [maintenance and   operations] tax effort described by Section 48.202(a-1)(1); and                      (B)  the district's enrichment [maintenance and   operations] tax effort described by Section 48.202(a-1)(2).          (c)  Each school district is entitled to an amount equal to   the difference for that district between the sum of Subsections   (a)(1) and (a)(2) and the sum of Subsections (a)(3) and[,] (a)(4)[,   and (a)(5)].          (f)  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 (h), 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   49] 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 49] 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 49 is reduced by an amount   necessary to ensure a district's full recovery of the adjustment   made under this subsection].          SECTION 1.42.  Sections 48.267(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   49,] 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 46 [or 49].  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 46 [or 49] 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 1.43.  Section 48.271(b), Education Code, is amended   to read as follows:          (b)  If the district would have received a greater amount   from the foundation school fund for the applicable school year   using the adjusted value, the commissioner shall add the difference   to subsequent distributions to the district from the foundation   school fund.  [An adjustment does not affect the local fund   assignment of any other district.]          SECTION 1.44.  Section 48.272(b), Education Code, is amended   to read as follows:          (b)  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 Chapter 46, former   Chapter [or] 49, or this chapter and related reporting   requirements.          SECTION 1.45.  Section 48.273(a)(4), Education Code, is   amended to read as follows:                (4)  "Wealth per student" means the taxable property   value as determined [values reported by the comptroller to the   commissioner] under Subchapter M, Chapter 403, Government Code,   [Section 48.256] divided by the number of students in average daily   attendance.          SECTION 1.46.  Section 48.275(b), Education Code, is amended   to read as follows:          (b)  The amount of additional funds to which each school   district or participating charter school is entitled due to the   increases in formula funding made by H.B. No. 3343, Acts of the 77th   Legislature, Regular Session, 2001, and any subsequent legislation   amending the provisions amended by that Act that increase formula   funding under [Chapter 49 and] this chapter to school districts and   charter schools is available for purposes of Subsection (c).          SECTION 1.47.  Section 79.10(f), Education Code, is amended   to read as follows:          (f)  For each student enrolled in the academy, the academy is   entitled to allotments from the foundation school fund under   Chapter 48 as if the academy were a school district [without a tier   one local share for purposes of Section 48.266]. If in any academic   year the amount of the allotments under this subsection exceeds the   amount of state funds paid to the academy in the first fiscal year   of the academy's operation, the commissioner of education shall set   aside from the total amount of funds to which school districts are   entitled under Section 48.266(c) an amount equal to the excess   amount and shall distribute that amount to the academy. After   deducting the amount set aside and paid to the academy by the   commissioner of education under this subsection, the commissioner   of education shall reduce the amount to which each district is   entitled under Section 48.266(c) in the manner described by Section   48.266(f). A determination of the commissioner of education under   this subsection is final and may not be appealed.          SECTION 1.48.  Section 87.208, Education Code, is amended to   read as follows:          Sec. 87.208.  SEABORNE CONSERVATION CORPS. If the board of   regents of The Texas A&M University System administers a program   that is substantially similar to the Seaborne Conservation Corps as   it was administered by the board during the 1998-1999 school year,   the program is entitled, for each student enrolled, to allotments   from the Foundation School Program under Chapter 48 as if the   program were a school district[, except that the program has a local   share applied that is equivalent to the local fund assignment of the   school district in which the principal facilities of the program   are located].          SECTION 1.49.  Section 87.505(g), Education Code, is amended   to read as follows:          (g)  For each student enrolled in the academy, the academy is   entitled to allotments from the foundation school fund under   Chapter 48 as if the academy were a school district [without a tier   one local share for purposes of Section 48.266]. If in any academic   year the amount of the allotments under this subsection exceeds the   amount of state funds paid to the academy in the first fiscal year   of the academy's operation, the commissioner of education shall set   aside from the total amount of funds to which school districts are   entitled under Section 48.266(c) an amount equal to the excess   amount and shall distribute that amount to the academy. After   deducting the amount set aside and paid to the academy by the   commissioner of education under this subsection, the commissioner   of education shall reduce the amount to which each district is   entitled under Section 48.266(c) in the manner described by Section   48.266(f). A determination of the commissioner of education under   this subsection is final and may not be appealed.          SECTION 1.50.  Section 96.707(k), Education Code, is amended   to read as follows:          (k)  For each student enrolled in the academy, the academy is   entitled to allotments from the Foundation School Program under   Chapter 48 as if the academy were a school district [without a tier   one local share for purposes of Section 48.266].          SECTION 1.51.  Section 105.301(e), Education Code, is   amended to read as follows:          (e)  The academy is not subject to the provisions of this   code, or to the rules of the Texas Education Agency, regulating   public schools, except that:                (1)  professional employees of the academy are entitled   to the limited liability of an employee under Section 22.0511,   22.0512, or 22.052;                (2)  a student's attendance at the academy satisfies   compulsory school attendance requirements; and                (3)  for each student enrolled, the academy is entitled   to allotments from the foundation school program under Chapter 48   as if the academy were a school district [without a tier one local   share for purposes of Section 48.266].          SECTION 1.52.  Section 3.005(a), Election Code, is amended   to read as follows:          (a)  Except as provided by Subsection [Subsections] (c) [and   (d)], an election ordered by an authority of a political   subdivision shall be ordered not later than the 62nd day before   election day.          SECTION 1.53.  Section 4.008(a), Election Code, is amended   to read as follows:          (a)  The [Except as provided by Subsection (b), the]   governing body of a political subdivision, other than a county,   that orders an election shall deliver notice of the election,   including the location of each polling place, to the county clerk   and voter registrar of each county in which the political   subdivision is located not later than the 60th day before election   day. The county clerk shall post notice of the election, including   the location of each polling place, on the county's Internet   website, if the county maintains a website, as provided by Section   4.003(b).          SECTION 1.54.  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 49, Education Code.]          SECTION 1.55.  Section 437.117(a), Government Code, is   amended to read as follows:          (a)  For each student enrolled in the Texas ChalleNGe   Academy, the department is entitled to allotments from the   Foundation School Program under Chapter 48, Education Code, as if   the academy were a school district [without a tier one local share   for purposes of Section 48.266, Education Code].          SECTION 1.56.  Section 1579.251(a), Insurance Code, is   amended to read as follows:          (a)  The state shall assist employees of participating   school districts and charter schools in the purchase of group   health coverage under this chapter by providing for each covered   employee the amount of $900 each state fiscal year or a greater   amount as provided by the General Appropriations Act. The state   contribution shall be distributed through the school finance   formulas under Chapter [Chapters] 48 [and 49], Education Code, and   used by school districts and charter schools as provided by Section   48.275, Education Code.          SECTION 1.57.  Section 5.07(f), Tax Code, is amended to read   as follows:          (f)  The comptroller shall prescribe tax rate calculation   forms to be used by the designated officer or employee of each:                (1)  taxing unit other than a school district to   calculate and submit the no-new-revenue tax rate and the   voter-approval tax rate for the taxing unit as required by Chapter   26; and                (2)  school district to:                      (A)  calculate and submit the no-new-revenue tax   rate [and the voter-approval tax rate] for the district as required   by Chapter 26; and                      (B)  submit the rate to maintain the same amount   of state and local revenue per weighted student that the district   received in the school year beginning in the preceding tax year as   required by Chapter 26.          SECTION 1.58.  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 taxing unit on January 1[, except as   provided by Chapter 49, Education Code].          SECTION 1.59.  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 taxing unit on January 1 for   more than a temporary period;                (2)  it normally is located in the taxing unit, even   though it is outside the taxing unit on January 1, if it is outside   the taxing unit only temporarily;                (3)  it normally is returned to the taxing 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 taxing 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 1.60.  Section 26.012, Tax Code, is amended by   amending Subdivisions (4) and (18) and adding Subdivision (17-a) to   read as follows:                (4)  "Current debt rate" means a rate expressed in   dollars per $100 of taxable value and calculated according to the   following formula:   CURRENT DEBT RATE = [[](CURRENT DEBT SERVICE - EXCESS COLLECTIONS)   / (CURRENT TOTAL VALUE X COLLECTION RATE)[] + CURRENT JUNIOR   COLLEGE LEVY / CURRENT TOTAL VALUE]                (17-a)  "No-new-revenue enrichment rate" means, for a   school district, a rate expressed in dollars per $100 of taxable   value and calculated according to the following formula:   NO-NEW-REVENUE ENRICHMENT RATE = (LAST YEAR'S LEVY - LAST YEAR'S   DEBT LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)                (18)  "No-new-revenue maintenance and operations rate"   means, for a taxing unit other than a school district, a rate   expressed in dollars per $100 of taxable value and calculated   according to the following formula:   NO-NEW-REVENUE MAINTENANCE AND OPERATIONS RATE = (LAST YEAR'S LEVY   - LAST YEAR'S DEBT LEVY [- LAST YEAR'S JUNIOR COLLEGE LEVY]) /   (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)          SECTION 1.61.  Sections 26.04(c) and (e-1), Tax Code, are   amended to read as follows:          (c)  After the assessor for the taxing unit submits the   appraisal roll for the taxing unit to the governing body of the   taxing unit as required by Subsection (b), an officer or employee   designated by the governing body of a taxing unit other than a   school district shall calculate the no-new-revenue tax rate and the   voter-approval tax rate for the taxing unit and an officer or   employee designated by the governing body of a school district   shall calculate the no-new-revenue tax rate for the school district   according to the following formulas[, where]:                (1)  "No-new-revenue tax rate" means a rate expressed   in dollars per $100 of taxable value calculated according to the   following formula:   NO-NEW-REVENUE TAX RATE = (LAST YEAR'S LEVY - LOST PROPERTY LEVY) /   (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)          ; and                (2)  "Voter-approval tax rate" means a rate expressed   in dollars per $100 of taxable value calculated according to the   following applicable formula:                      (A)  for a special taxing unit:   VOTER-APPROVAL TAX RATE = (NO-NEW-REVENUE MAINTENANCE AND   OPERATIONS RATE x 1.08) + CURRENT DEBT RATE          ; or                      (B)  for a taxing unit other than a special taxing   unit or a school district:   VOTER-APPROVAL TAX RATE = (NO-NEW-REVENUE MAINTENANCE AND   OPERATIONS RATE x 1.035) + (CURRENT DEBT RATE + UNUSED INCREMENT   RATE)          (e-1)  Subsections [The tax rate certification requirements   imposed by Subsection] (d-2), (e), (i), and (j) [and the notice   requirements imposed by Subsections (e)(1)-(3)] do not apply to a   school district. Notwithstanding any other provision of this   section, a requirement under this section that relates to the   calculation of the voter-approval tax rate or the submission of a   form used to calculate the voter-approval tax rate does not apply to   a school district.          SECTION 1.62.  Section 26.05, Tax Code, is amended by   amending Subsections (a), (b), and (g) and adding Subsection (b-1)   to read as follows:          (a)  The governing body of each taxing unit shall adopt a tax   rate for the current tax year and shall notify the assessor for the   taxing unit of the rate adopted. The governing body must adopt a   tax rate before the later of September 30 or the 60th day after the   date the certified appraisal roll is received by the taxing unit,   except that the governing body of a taxing unit other than a school   district must adopt a tax rate that exceeds the voter-approval tax   rate not later than the 71st day before the next uniform election   date prescribed by Section 41.001, Election Code, that occurs in   November of that year. The tax rate consists of two components,   each of which must be approved separately. The components are:                (1)  for a taxing unit other than a school district, the   rate that, if applied to the total taxable value, will impose the   total amount described by Section 26.04(e)(3)(C), less any amount   of additional sales and use tax revenue that will be used to pay   debt service, or, for a school district, the rate calculated under   Section 44.004(c)(5)(A)(ii)(b), Education Code; and                (2)  for a taxing unit other than a school district, the   rate that, if applied to the total taxable value, will impose the   amount of taxes needed to fund maintenance and operation   expenditures of the taxing unit for the next year, or, for a school   district, the rate that, if applied to total taxable value, will   impose the amount of taxes needed to fund the enrichment   expenditures of the school district for the next year.          (b)  A taxing unit may not impose property taxes in any year   until the governing body has adopted a tax rate for that year, and   the annual tax rate must be set by ordinance, resolution, or order,   depending on the method prescribed by law for adoption of a law by   the governing body. The vote on the ordinance, resolution, or order   setting the tax rate must be separate from the vote adopting the   budget. For a taxing unit other than a school district, the vote on   the ordinance, resolution, or order setting a tax rate that exceeds   the no-new-revenue tax rate must be a record vote, and at least 60   percent of the members of the governing body must vote in favor of   the ordinance, resolution, or order. For a school district, the   vote on the ordinance, resolution, or order setting a tax rate that   exceeds the sum of the no-new-revenue enrichment [maintenance and   operations tax] rate of the district [as determined under Section   26.08(i)] and the district's current debt rate must be a record   vote, and at least 60 percent of the members of the governing body   must vote in favor of the ordinance, resolution, or order. A motion   to adopt an ordinance, resolution, or order setting a tax rate that   exceeds the no-new-revenue tax rate must be made in the following   form: "I move that the property tax rate be increased by the   adoption of a tax rate of (specify tax rate), which is effectively a   (insert percentage by which the proposed tax rate exceeds the   no-new-revenue tax rate) percent increase in the tax rate."          (b-1)  If the ordinance, resolution, or order adopted under   Subsection (b) sets a tax rate that, if applied to the total taxable   value, will impose an amount of taxes to fund the maintenance and   operation expenditures or, in the case of a school district, the   enrichment expenditures of the taxing unit that exceeds the amount   of taxes imposed for that purpose in the preceding year, the taxing   unit must:                (1)  include in the ordinance, resolution, or order in   type larger than the type used in any other portion of the document:                      (A)  the following statement: "THIS TAX RATE WILL   RAISE MORE TAXES FOR (INSERT MAINTENANCE AND OPERATIONS OR   ENRICHMENT, AS APPLICABLE) THAN LAST YEAR'S TAX RATE."; and                      (B)  if the tax rate exceeds the no-new-revenue   maintenance and operations rate or the no-new-revenue enrichment   rate, as applicable, the following statement: "THE TAX RATE WILL   EFFECTIVELY BE RAISED BY (INSERT PERCENTAGE BY WHICH THE TAX RATE   EXCEEDS THE NO-NEW-REVENUE MAINTENANCE AND OPERATIONS RATE OR   NO-NEW-REVENUE ENRICHMENT RATE, AS APPLICABLE) PERCENT AND WILL   RAISE TAXES [FOR MAINTENANCE AND OPERATIONS] ON A $100,000 HOME BY   APPROXIMATELY $(Insert amount)."; and                (2)  include on the home page of the Internet website of   the taxing unit:                      (A)  the following statement: "(Insert name of   taxing unit) ADOPTED A TAX RATE THAT WILL RAISE MORE TAXES FOR   (INSERT MAINTENANCE AND OPERATIONS OR ENRICHMENT, AS APPLICABLE)   THAN LAST YEAR'S TAX RATE"; and                      (B)  if the tax rate exceeds the no-new-revenue   maintenance and operations rate or the no-new-revenue enrichment   rate, as applicable, the following statement: "THE TAX RATE WILL   EFFECTIVELY BE RAISED BY (INSERT PERCENTAGE BY WHICH THE TAX RATE   EXCEEDS THE NO-NEW-REVENUE MAINTENANCE AND OPERATIONS RATE OR   NO-NEW-REVENUE ENRICHMENT RATE, AS APPLICABLE) PERCENT AND WILL   RAISE TAXES [FOR MAINTENANCE AND OPERATIONS] ON A $100,000 HOME BY   APPROXIMATELY $(Insert amount)."          (g)  Notwithstanding Subsection (a), the governing body of a   school district that elects to adopt a tax rate before the adoption   of a budget for the fiscal year that begins in the current tax year   may adopt a tax rate for the current tax year before receipt of the   certified appraisal roll for the school district if the chief   appraiser of the appraisal district in which the school district   participates has certified to the assessor for the school district   an estimate of the taxable value of property in the school district   as provided by Section 26.01(e). If a school district adopts a tax   rate under this subsection, the no-new-revenue tax rate [and the   voter-approval tax rate] of the district shall be calculated based   on the certified estimate of taxable value.          SECTION 1.63.  Sections 26.16(a) and (d), Tax Code, are   amended to read as follows:          (a)  Each county shall maintain an Internet website. The   county assessor-collector for each county shall post on the   Internet website maintained by the county the following applicable   information for the most recent five tax years for each taxing unit   all or part of the territory of which is located in the county:                (1)  the adopted tax rate;                (2)  the maintenance and operations rate;                (3)  the enrichment rate;                (4)  the debt rate;                (5) [(4)]  the no-new-revenue tax rate;                (6) [(5)]  the no-new-revenue maintenance and   operations rate;                (7)  the no-new-revenue enrichment rate; and                (8) [(6)]  the voter-approval tax rate.          (d)  The county assessor-collector shall post immediately   below the table prescribed by Subsection (c) the following   statement:          "The county is providing this table of property tax rate   information as a service to the residents of the county. Each   individual taxing unit is responsible for calculating the property   tax rates listed in this table pertaining to that taxing unit and   providing that information to the county.          "The adopted tax rate is the tax rate adopted by the governing   body of a taxing unit.          "The maintenance and operations rate is the component of the   adopted tax rate of a taxing unit other than a school district that   will impose the amount of taxes needed to fund maintenance and   operation expenditures of the taxing unit for the following year.          "The enrichment rate is the component of the adopted tax rate   of a school district that will impose the amount of taxes needed to   fund enrichment expenditures of the school district for the   following year.          "The debt rate is the component of the adopted tax rate of a   taxing unit that will impose the amount of taxes needed to fund the   taxing unit's debt service for the following year.          "The no-new-revenue tax rate is the tax rate that would   generate the same amount of revenue in the current tax year as was   generated by a taxing unit's adopted tax rate in the preceding tax   year from property that is taxable in both the current tax year and   the preceding tax year.          "The no-new-revenue maintenance and operations rate is the   tax rate that, if adopted by a taxing unit other than a school   district in the current tax year, would generate the same amount of   revenue for maintenance and operations in the current tax year as   was generated by the [a] taxing unit's maintenance and operations   rate in the preceding tax year from property that is taxable in both   the current tax year and the preceding tax year.          "The no-new-revenue enrichment rate is the tax rate that, if   adopted by a school district in the current tax year, would generate   the same amount of revenue for enrichment expenditures in the   current tax year as was generated by the school district's   enrichment rate in the preceding tax year from property that is   taxable in both the current tax year and the preceding tax year.          "The voter-approval tax rate is the highest tax rate a taxing   unit other than a school district may adopt before requiring voter   approval at an election. An election will automatically be held if   a taxing unit other than a school district wishes to adopt a tax   rate in excess of the taxing unit's voter-approval tax rate."          SECTION 1.64.  Section 26.17(b), Tax Code, is amended to   read as follows:          (b)  The database must include, with respect to each property   listed on the appraisal roll for the appraisal district:                (1)  the property's identification number;                (2)  the property's market value;                (3)  the property's taxable value;                (4)  the name of each taxing unit in which the property   is located;                (5)  for each taxing unit other than a school district   in which the property is located:                      (A)  the no-new-revenue tax rate; and                      (B)  the voter-approval tax rate;                (6)  for each school district in which the property is   located,[:                            [(A)]  the tax rate that would maintain the   same amount of state and local revenue per weighted student that the   district received in the school year beginning in the preceding tax   year; [and                            [(B)  the voter-approval tax rate;]                (7)  the tax rate proposed by the governing body of each   taxing unit in which the property is located;                (8)  for each taxing unit other than a school district   in which the property is located, the taxes that would be imposed on   the property if the taxing unit adopted a tax rate equal to:                      (A)  the no-new-revenue tax rate; and                      (B)  the proposed tax rate;                (9)  for each school district in which the property is   located, the taxes that would be imposed on the property if the   district adopted a tax rate equal to:                      (A)  the tax rate that would maintain the same   amount of state and local revenue per weighted student that the   district received in the school year beginning in the preceding tax   year; and                      (B)  the proposed tax rate;                (10)  for each taxing unit other than a school district   in which the property is located, the difference between the amount   calculated under Subdivision (8)(A) and the amount calculated under   Subdivision (8)(B);                (11)  for each school district in which the property is   located, the difference between the amount calculated under   Subdivision (9)(A) and the amount calculated under Subdivision   (9)(B);                (12)  the date, time, and location of the public   hearing, if applicable, on the proposed tax rate to be held by the   governing body of each taxing unit in which the property is located;                (13)  the date, time, and location of the public   meeting, if applicable, at which the tax rate will be adopted to be   held by the governing body of each taxing unit in which the property   is located; and                (14)  for each taxing unit in which the property is   located, an e-mail address at which the taxing unit is capable of   receiving written comments regarding the proposed tax rate of the   taxing unit.          SECTION 1.65.  Section 26.18, Tax Code, is amended to read as   follows:          Sec. 26.18.  POSTING OF TAX RATE AND BUDGET INFORMATION BY   TAXING UNIT ON WEBSITE. Each taxing unit shall maintain an Internet   website or have access to a generally accessible Internet website   that may be used for the purposes of this section. Each taxing unit   shall post or cause to be posted on the Internet website the   following information in a format prescribed by the comptroller:                (1)  the name of each member of the governing body of   the taxing unit;                (2)  the mailing address, e-mail address, and telephone   number of the taxing unit;                (3)  the official contact information for each member   of the governing body of the taxing unit, if that information is   different from the information described by Subdivision (2);                (4)  the taxing unit's budget for the preceding two   years;                (5)  the taxing unit's proposed or adopted budget for   the current year;                (6)  the change in the amount of the taxing unit's   budget from the preceding year to the current year, by dollar amount   and percentage;                (7)  in the case of a taxing unit other than a school   district, the amount of property tax revenue budgeted for   maintenance and operations for:                      (A)  the preceding two years; and                      (B)  the current year;                (8)  in the case of a taxing unit other than a school   district, the amount of property tax revenue budgeted for debt   service for:                      (A)  the preceding two years; and                      (B)  the current year;                (9)  in the case of a taxing unit other than a school   district, the tax rate for maintenance and operations adopted by   the taxing unit for the preceding two years;                (9-a)  in the case of a school district, the tax rate   for enrichment adopted by the district for the preceding two years;                (10)  in the case of a taxing unit other than a school   district, the tax rate for debt service adopted by the taxing unit   for the preceding two years;                (11)  in the case of a school district, the interest and   sinking fund tax rate adopted by the district for the preceding two   years;                (12)  in the case of a taxing unit other than a school   district, the tax rate for maintenance and operations proposed by   the taxing unit for the current year;                (12-a)  in the case of a school district, the tax rate   for enrichment proposed by the school district for the current   year;                (13)  in the case of a taxing unit other than a school   district, the tax rate for debt service proposed by the taxing unit   for the current year;                (14)  in the case of a school district, the interest and   sinking fund tax rate proposed by the district for the current year;   and                (15)  the most recent financial audit of the taxing   unit.          SECTION 1.66.  Section 31.01, Tax Code, is amended by   amending Subsection (d-1) and adding Subsection (d-2) to read as   follows:          (d-1)  This subsection applies only to a school district. In   addition to stating the total tax rate for the school district, the   tax bill or the separate statement shall separately state:                (1)  the enrichment [maintenance and operations] rate   of the school district;                (2)  if the school district has outstanding debt, as   defined by Section 26.012, the debt rate of the district;                (3)  the enrichment [maintenance and operations] rate   of the school district for the preceding tax year;                (4)  if for the current tax year the school district   imposed taxes for debt, as defined by Section 26.012, the debt rate   of the district for the current tax year;                (5)  if for the preceding tax year the school district   imposed taxes for debt, as defined by Section 26.012, the debt rate   of the district for that year; and                (6)  the total tax rate of the district for the   preceding tax year.          (d-2)  For the 2025 tax year, the "total tax rate of the   district for the preceding tax year" as required by Subsection   (d-1)(6) shall be computed by adding the district's debt rate for   the 2024 tax year and the rate of any tax the district imposed for   enrichment in the 2024 tax year. This subsection expires January 1,   2026.          SECTION 1.67.  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 local revenue level that does not exceed the   level established under Section 48.257] 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 1.68.  The following provisions are repealed:                (1)  Section 7.055(b)(34), Education Code;                (2)  Section 8.056, Education Code;                (3)  Section 11.184, Education Code;                (4)  Section 13.054(h), Education Code;                (5)  Section 29.203(g), Education Code;                (6)  Section 45.0021, Education Code;                (7)  Section 45.003(f), Education Code;                (8)  Section 45.0032, Education Code;                (9)  Section 45.105(e), Education Code;                (10)  Section 45.109(d), Education Code;                (11)  Section 45.111(b), Education Code;                (12)  Section 47.004, Education Code;                (13)  Sections 48.202(a-2) and (f), Education Code;                (14)  Sections 48.255, 48.2551, 48.2552, 48.2553,   48.256, and 48.257, Education Code;                (15)  Section 48.265(b), Education Code;                (16)  Chapter 49, Education Code;                (17)  Section 3.005(d), Election Code;                (18)  Section 4.008(b), Election Code;                (19)  Sections 825.405(h) and (i), Government Code;                (20)  Sections 21.02(b) and (c), Tax Code;                (21)  Section 25.25(k), Tax Code;                (22)  Sections 26.012(5) and (12), Tax Code; and                (23)  Sections 26.08 and 26.085, Tax Code.          SECTION 1.69.  (a) This article takes effect January 1,   2025.          (b)  Chapter 48, Education Code, as amended by this article,   applies beginning with the 2025-2026 school year.          (c)  The repeal by this article of Chapter 49, Education   Code, does not affect the obligations of a school district under   that chapter, as it existed before repeal by this article, for the   2023-2024 school year.          (d)  This article does not affect ad valorem taxes imposed   before the effective date of this article, and the law in effect   before the effective date of this article is continued in effect for   purposes of the liability for and collection of those taxes and   penalties and interest on those taxes.          (e)  To the extent of any conflict, this article prevails   over another Act of the 88th Legislature, Regular Session, 2023,   relating to nonsubstantive additions to and corrections in enacted   codes.   ARTICLE 2. STATE FUNDING FOR PUBLIC EDUCATION          SECTION 2.01.  Section 151.051(b), Tax Code, is amended to   read as follows:          (b)  The sales tax rate is 12 [6-1/4] percent of the sales   price of the taxable item sold.          SECTION 2.02.  Section 151.801, Tax Code, is amended by   amending Subsection (a) and adding Subsection (b-1) to read as   follows:          (a)  Except for the amounts allocated under Subsections (b),   (b-1), (c), (c-2), and (c-3), all proceeds from the collection of   the taxes imposed by this chapter shall be deposited to the credit   of the general revenue fund.          (b-1)  Notwithstanding any other provision of this section,   an amount of revenue under this chapter equal to the proceeds, other   than the proceeds allocated under Subsection (b), derived from the   collection of taxes imposed by this chapter attributable to the   portion of the tax rate in excess of 6.25 percent of the sales price   of the taxable item sold shall be deposited to the credit of the   foundation school fund.          SECTION 2.03.  Section 152.021(b), Tax Code, is amended to   read as follows:          (b)  The tax rate is 12 [6-1/4] percent of the total   consideration.          SECTION 2.04.  Section 152.022(b), Tax Code, is amended to   read as follows:          (b)  The tax rate is 12 [6-1/4] percent of the total   consideration.          SECTION 2.05.  Section 152.023(b-1), Tax Code, is amended to   read as follows:          (b-1)  The tax on a motor vehicle eligible to be issued   exhibition vehicle specialty license plates under Section 504.502,   Transportation Code, is equal to the lesser of $90 or 12 [6.25]   percent of the total consideration.          SECTION 2.06.  Section 152.026(b), Tax Code, is amended to   read as follows:          (b)  The tax rate is 19 [10] percent of the gross rental   receipts from the rental of a rented motor vehicle for 30 days or   less and 12 [6-1/4] percent of the gross rental receipts from the   rental of a rented motor vehicle for longer than 30 days.          SECTION 2.07.  Section 152.028(b), Tax Code, is amended to   read as follows:          (b)  The tax rate is 12 [6-1/4] percent of the total   consideration.          SECTION 2.08.  Section 152.122, Tax Code, is amended to read   as follows:          Sec. 152.122.  ALLOCATION OF TAX. (a) The comptroller shall   deposit the funds received under Section 152.121 [of this code as   follows:                      [(1)  1/4 to the credit of the foundation school   fund; and                      [(2)  the remaining funds] to the credit of the   general revenue fund.          (b)  Notwithstanding Subsection (a), the comptroller shall   deposit to the credit of the foundation school fund an amount equal   to the amount of money that is:                (1)  received by the comptroller under Sections   152.043, 152.044, 152.045, 152.046, 152.047, and 152.121;                (2)  derived from the taxes imposed under Sections   152.021, 152.022, 152.023, 152.026, and 152.028; and                (3)  attributable to an increase in the rate of a tax   described by Subdivision (2) effective October 1, 2024.          SECTION 2.09.  The heading to Section 152.1222, Tax Code, is   amended to read as follows:          Sec. 152.1222.  ALLOCATION OF CERTAIN TAX REVENUE TO   FOUNDATION SCHOOL [PROPERTY TAX RELIEF] FUND.          SECTION 2.10.  Section 152.1222(a), Tax Code, is amended to   read as follows:          (a)  Notwithstanding Section 152.122, the comptroller shall   deposit to the credit of the foundation school fund [property tax   relief fund under Section 403.109, Government Code,] the amount of   money received under Section 152.121 that is estimated to have been   derived from the computation of the tax imposed by this chapter on   the standard presumptive values of motor vehicles or on percentages   of those values as provided by Section 152.0412.          SECTION 2.11.  Section 154.6035, Tax Code, is amended to   read as follows:          Sec. 154.6035.  ALLOCATION OF CERTAIN REVENUE TO FOUNDATION   SCHOOL [PROPERTY TAX RELIEF] FUND. Notwithstanding Section   154.603, all proceeds from the collection of taxes imposed by this   chapter attributable to the portion of the tax rate in excess of   $20.50 per thousand on cigarettes, regardless of weight, shall be   deposited to the credit of the foundation school fund [property tax   relief fund under Section 403.109, Government Code].          SECTION 2.12.  The heading to Section 155.2415, Tax Code, is   amended to read as follows:          Sec. 155.2415.  ALLOCATION OF CERTAIN REVENUE TO FOUNDATION   SCHOOL [PROPERTY TAX RELIEF] FUND AND CERTAIN OTHER FUNDS.          SECTION 2.13.  Section 155.2415(a), Tax Code, is amended to   read as follows:          (a)  Notwithstanding Section 155.241, the proceeds from the   collection of taxes imposed by Section 155.0211 shall be allocated   as follows:                (1)  the amount of the proceeds that is equal to the   amount that, if the taxes imposed by Section 155.0211 were imposed   at a rate of 40 percent of the manufacturer's list price, exclusive   of any trade discount, special discount, or deal, would be   attributable to the portion of that tax rate in excess of 35.213   percent, shall be deposited to the credit of the foundation school   fund [property tax relief fund under Section 403.109, Government   Code];                (2)  the amount of the proceeds that is equal to the   amount that would be attributable to a tax rate of 35.213 percent of   the manufacturer's list price, exclusive of any trade discount,   special discount, or deal, if the taxes were imposed by Section   155.0211 at that rate, shall be deposited to the credit of the   general revenue fund; and                (3)  [100 percent of] the remaining proceeds shall be   deposited to the credit of:                      (A)  the physician education loan repayment   program account established under Subchapter J, Chapter 61,   Education Code; or                      (B)  the general revenue fund, if the comptroller   determines that the unencumbered beginning balance of the physician   education loan repayment account established under Subchapter J,   Chapter 61, Education Code, is sufficient to fund appropriations   and other direct and indirect costs from that account for the   fulfillment of existing and expected physician loan repayment   commitments during the current state fiscal biennium.          SECTION 2.14.  The heading to Section 171.4011, Tax Code, is   amended to read as follows:          Sec. 171.4011.  ALLOCATION OF CERTAIN REVENUE TO FOUNDATION   SCHOOL [PROPERTY TAX RELIEF] FUND.          SECTION 2.15.  Section 171.4011(a), Tax Code, is amended to   read as follows:          (a)  Notwithstanding Section 171.401, [beginning with the   state fiscal year that begins September 1, 2007,] the comptroller   shall, for each state fiscal year, deposit to the credit of the   foundation school fund [property tax relief fund under Section   403.109, Government Code,] an amount of revenue calculated by:                (1)  determining the revenue derived from the tax   imposed by this chapter as it applied during that [applicable]   state fiscal year; and                (2)  subtracting the revenue the comptroller estimates   that the tax imposed by this chapter, as it existed on August 31,   2007, would have generated if it had been in effect for that   [applicable] state fiscal year.          SECTION 2.16.  The following provisions are repealed:                (1)  Section 403.109, Government Code; and                (2)  Section 171.664, Tax Code.          SECTION 2.17.  (a) This article takes effect October 1,   2024.          (b)  On October 1, 2024, the property tax relief fund is   abolished and the unencumbered balance of that fund is transferred   to the foundation school fund.          (c)  In addition to the substantive changes made by this   article, this article conforms Section 152.122, Tax Code, to the   method of allocating motor vehicle sales and use taxes in effect   before the effective date of this article. Section 11.04, Chapter 4   (S.B. 3), Acts of the 72nd Legislature, 1st Called Session, 1991,   enacted former Section 403.094(h), Government Code, which   abolished certain state fund dedications and resulted in the   abolition of the allocation to the foundation school fund effective   August 31, 1995.          (d)  The changes in law made by this article do not affect tax   liability accruing before the effective date of this article. That   liability continues in effect as if this article had not been   enacted, and the former law is continued in effect for the   collection of taxes due and for civil and criminal enforcement of   the liability for those taxes.