88(3) HB 110 - Introduced version - Bill Text

	88S30311 MEW-F
	By:  Isaac	H.B.  No.  110

	A BILL TO BE ENTITLED
	AN ACT
	relating to the state compression percentage and a school
	district's maximum compressed tax rate under the public school
	finance system.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION  1.    Section 48.255(b), Education Code, is amended to
	read as follows:
	(b)    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 1.0 [1.025]/(1 + ECPV); or
	(3)    the percentage determined under this section for
	the preceding school year.
	SECTION  2.    Section 48.2551(b), Education Code, is amended
	to read as follows:
	(b)    A  [Except as provided by Subsection (c), a] district's
	maximum compressed rate ("MCR") is the lesser of:
	(1)    the rate determined by the following [applicable]
	formula:
	[(A)    if "DPV" exceeds "PYDPV" by an amount equal
	to or greater than 2.5 percent:]
	MCR = [(1.025]((PYDPV+E) X PYMCR)[)]/DPV; or
	[(B)    if Paragraph (A) does not apply:
	[MCR = PYMCR; or]
	(2)    the product of the state compression percentage,
	as determined under Section 48.255, for the current tax year,
	multiplied by $1.00.
	SECTION  3.    (a) This section takes effect only if the
	constitutional amendment proposed by H.J.R. 2, 88th Legislature,
	2nd Called Session, 2023, is approved by the voters.
	(b)    Section 48.2555(a), Education Code, as effective on
	approval by the voters of H.J.R. 2, 88th Legislature, 2nd Called
	Session, 2023, is amended to read as follows:
	(a)    Notwithstanding any other provision of this title or
	Chapter 26, Tax Code, for the 2023-2024 school year, the
	commissioner shall calculate the value of a school district's
	maximum compressed tax rate by determining the district's maximum
	compressed rate under Section 48.2551 [or 48.2552(b), if
	applicable,] and reducing the tax rate determined under the
	applicable section by $0.107.
	SECTION  4.    Sections 48.2551(c) and 48.2552, Education Code,
	are repealed.
	SECTION  5.    Except as otherwise provided by this Act, this
	Act takes effect September 1, 2024.