HB4326 - Relating to reducing school district maintenance and operations ad valorem taxes through the use of certain state revenue and the allocation of certain constitutional transfers of money to the economic stabilization fund, the property tax reduction fund, and the state highway fund.

  89R15873 KJE-D     By: Noble H.B. No. 4326       A BILL TO BE ENTITLED   AN ACT   relating to reducing school district maintenance and operations ad   valorem taxes through the use of certain state revenue and the   allocation of certain constitutional transfers of money to the   economic stabilization fund, the property tax reduction fund, and   the state highway fund.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 48.255, Education Code, is amended by   amending Subsection (b) and adding Subsection (d) to read as   follows:          (b)   Subject to Subsection (d), the [ The ] state compression   percentage is the lower of:                (1)  93 percent, or a lower percentage set by   appropriation for a school year;                (2)  the percentage determined by the following   formula:   SCP = PYCP X 1.025/(1 + ECPV); or                (3)  the percentage determined under this section for   the preceding school year.           (d)     For each school year, the state compression percentage   determined under Subsection (b) shall be reduced to the lowest   percentage possible as a result of money appropriated for that   purpose under Section 3-a, Article VII, Texas Constitution.          SECTION 2.  The heading to Subchapter H, Chapter 316,   Government Code, is amended to read as follows:   SUBCHAPTER H.  ALLOCATION OF CONSTITUTIONAL TRANSFERS TO CERTAIN   FUNDS [ ECONOMIC STABILIZATION FUND AND STATE HIGHWAY FUND ]          SECTION 3.  The heading to Section 316.092, Government Code,   is amended to read as follows:          Sec. 316.092.  DETERMINATION OF THRESHOLD FOR   CONSTITUTIONAL TRANSFER TO CERTAIN FUNDS [ STATE HIGHWAY FUND ].          SECTION 4.  Section 316.093, Government Code, is amended by   amending Subsections (b), (c), and (d) and adding Subsection (e) to   read as follows:          (b)  If the sum described by Subsection (a) is less than the   amount determined under Section 316.092 for that state fiscal   biennium, the comptroller shall reduce proportionately the   allocations [ allocation ] to the property tax reduction fund and the   state highway fund as provided by Section 49-g(c-1) [ 49-g(c) ],   Article III, Texas Constitution, and increase the allocation to the   economic stabilization fund[ , ] in an [ equal ] amount equal to the   reduction of those allocations [ , ] until the amount determined under   Section 316.092 for that state fiscal biennium would be achieved by   the transfer to the fund or the total amount of the sum described by   Section 49-g(c), Article III, Texas Constitution, is allocated to   the fund, whichever occurs first.          (c)  For the purposes of Section 49-g(c-2), Article III,   Texas Constitution, the comptroller shall adjust the allocation   provided by Section 49-g(c-1) of that article of amounts to be   transferred to the fund , the property tax reduction fund, and [ to ]   the state highway fund under Section 49-g(c) of that article in a   state fiscal year beginning on or after September 1, 2043, so that   half of the total of those amounts is transferred to the economic   stabilization fund and half of the total of those amounts is   transferred to the property tax reduction fund.           (d)  The [ , except that the ] comptroller shall reduce a   transfer to the economic stabilization fund required [ made ] under   Subsection (c) of this section [ this subsection ] as necessary to   prevent the amount in the fund from exceeding the limit in effect   for the state fiscal [ that ] biennium under Section 49-g(g) , Article   III, Texas Constitution [ of that article ].           (e)  [ (d) ]  Subsections (a) and (b) and this subsection   expire December 31, 2042.          SECTION 5.  This Act takes effect September 1, 2027, but only   if the constitutional amendment proposed by the 89th Legislature,   Regular Session, 2025, establishing the property tax reduction fund   to reduce school district maintenance and operations ad valorem   taxes and dedicating certain unencumbered general revenue and   certain general revenue that would otherwise be transferred to the   economic stabilization fund to that fund is approved by the voters.     If that amendment is not approved by the voters, this Act has no   effect.