Bill Text: TX HB3445 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to requiring the use of a public school's excess funds for certain purposes.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-04-06 - Left pending in committee [HB3445 Detail]
Download: Texas-2021-HB3445-Introduced.html
87R8150 KJE-D | ||
By: Huberty | H.B. No. 3445 |
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relating to requiring the use of a public school's excess funds for | ||
certain purposes. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter A, Chapter 44, Education Code, is | ||
amended by adding Section 44.013 to read as follows: | ||
Sec. 44.013. USE OF EXCESS FUNDS REQUIRED. (a) In this | ||
section: | ||
(1) "Cash on hand" includes cash equivalents and money | ||
invested in short-term investments. | ||
(2) "Operating expenses" means total general fund | ||
expenditures less any capital outlay. | ||
(b) Each school district and open-enrollment charter school | ||
shall annually review the district's or school's fund balances to | ||
determine the amount of excess funds held by the district or school | ||
as described by Subsection (c). | ||
(c) For purposes of this section, a school district or | ||
open-enrollment charter school has excess funds if: | ||
(1) for a district, the total amount of the district's | ||
cash on hand or unobligated funds exceeds the district's operating | ||
expenses for a period of 110 days; or | ||
(2) for a school, the total amount of the school's cash | ||
on hand or net assets exceeds the school's operating expenses for a | ||
period of 80 days. | ||
(d) Not later than the end of the fiscal year following a | ||
determination made under Subsection (b), each school district or | ||
open-enrollment charter school shall use the amount of excess funds | ||
identified under that subsection, if any, to, as applicable: | ||
(1) pay down debt obligations; | ||
(2) lower the district's maintenance and operations | ||
tax rate; | ||
(3) provide employee compensation, subject to | ||
Subsection (e); or | ||
(4) pay costs of deferred maintenance. | ||
(e) Funding provided for employee compensation under | ||
Subsection (d)(3) must be used to implement a new compensation | ||
program or supplement an existing compensation program and may not | ||
be used to supplant funding for an existing compensation program. | ||
(f) Subject to Subsection (g), for any period of the fiscal | ||
year following a determination made under Subsection (b) in which | ||
the school district or open-enrollment charter school has excess | ||
funds, the district or school may not: | ||
(1) for a district, issue a bond or hold an election | ||
seeking voter approval to issue a bond under Subchapter A, Chapter | ||
45; or | ||
(2) for a school: | ||
(A) receive funding under Section 12.106(d); or | ||
(B) apply for bonds issued under Chapter 53 for | ||
the school to be guaranteed by the permanent school fund under | ||
Chapter 45, as provided by Section 12.135. | ||
(g) The restrictions under Subsection (f) do not apply to a | ||
school district or open-enrollment charter school that posts on the | ||
district's or school's Internet website an explanation of how the | ||
district's or school's excess funds identified under Subsection (b) | ||
will be spent in accordance with Subsection (d). | ||
(h) If the commissioner determines that a school district or | ||
open-enrollment charter school has failed to comply with this | ||
section, the commissioner shall, as applicable, increase the | ||
district's local share under Section 48.256 or reduce the school's | ||
entitlement under Section 12.106 by an amount equal to the amount of | ||
the district's or school's excess funds not spent as required under | ||
Subsection (d). | ||
(i) This section does not apply to: | ||
(1) a special-purpose school district established | ||
under Section 11.351 that is operated by an institution of higher | ||
education, as that term is defined by Section 61.003; | ||
(2) an open-enrollment charter school operated under a | ||
charter granted to a governmental entity; or | ||
(3) a charter school granted a charter under | ||
Subchapter E, Chapter 12. | ||
(j) The commissioner may adopt rules as necessary to | ||
implement this section. | ||
SECTION 2. Section 12.106, Education Code, is amended by | ||
adding Subsection (k) to read as follows: | ||
(k) The commissioner shall reduce the amount of funding to | ||
which a charter holder is entitled for an open-enrollment charter | ||
school under this section as provided by Section 44.013(h). | ||
SECTION 3. Section 48.256, Education Code, is amended by | ||
adding Subsection (f) to read as follows: | ||
(f) The commissioner shall increase a school district's | ||
local share under this section as provided by Section 44.013(h). | ||
SECTION 4. Section 48.277, Education Code, is amended by | ||
amending Subsection (e) and adding Subsection (f) to read as | ||
follows: | ||
(e) The commissioner shall reduce a school district's or | ||
open-enrollment charter school's allotment under this section as | ||
necessary to comply with Section 44.013(h). | ||
(f) This section expires September 1, 2025. | ||
SECTION 5. Section 48.278, Education Code, is amended by | ||
adding Subsection (b-1) to read as follows: | ||
(b-1) The commissioner shall reduce a school district's | ||
allotment under this section as necessary to comply with Section | ||
44.013(h). | ||
SECTION 6. This Act takes effect September 1, 2021. |