HBA-MPM H.B. 2976 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2976 By: Hamric Public Education 4/20/1999 Introduced BACKGROUND AND PURPOSE H.B. 2976 authorizes the board of trustees of an independent school district to contract with a public or private entity for that entity to provide a facility in which the district operates a school. This bill provides that a charter for an open-enrollment charter school program serving only or primarily the children of employees of one or more public or private entities is not required to describe the area the program serves. This bill provides a tax credit for a corporation which sponsors or operates early childhood or kindergarten through grade 12 programs for the children of its employees. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Texas Education Agency and the comptroller of public accounts in SECTION 4 (Section 171.730, Tax Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 11.157, Education Code, as follows: Sec. 11.157. New title: CONTRACTS FOR EDUCATIONAL SERVICES AND FACILITIES. (a) Authorizes the board of trustees (board) of an independent school district (district) to contract with a public or private entity for that entity to provide a facility in which the district operates a school, in addition to providing educational services for the district. (b) Authorizes a district to lease a facility under Subsection (a)(2) or to accept use of the facility as a donation. (c) Authorizes the district to establish geographic attendance boundaries for a school operated in a facility under Subsection (a), or to permit the school to serve only or primarily the children of employees of the entity providing the facility. Authorizes the State Board of Education, by rule, to adopt guidelines for a contract under Subsection (a) which must address the responsibilities of the entity concerning maintenance issues and the responsibilities of the district to provide an educational program, personnel, and textbooks in accordance with Title 1 and this title. Requires the guidelines to also address the use and distribution of state funds in accordance with this title and admissions policies. SECTION 2. Amends Section 12.111, Education Code, as follows: Sec. 12.111. CONTENT. (a) Provides that each charter granted under this subchapter must describe the geographical area served by the program, except as proposed Subsection (b), in addition to addressing other issues. (b) Provides that a charter for an open-enrollment charter school (charter school) program serving only or primarily the children of employees of one or more public or private entities is not required to describe the area the program serves under Subsection (a). Provides that the charter is required to specify the type of enrollment criteria to be used in accordance with Subsection (a), including the name of the public or private entity whose employees' children are served by the program. SECTION 3. Amends Subchapter F, Chapter 39, Education Code, by adding Section 39.113, as follows: Sec. 39.113. AWARD FOR EMPLOYERS. (a) Requires the governor to present the Governor's Award of Excellence for Employer Incentives (award) annually to the public or private employer that makes the most significant contribution to early childhood or public primary or secondary education. (b) Requires the governor to appoint five persons to serve as members of the award committee. Requires the committee to evaluate the contribution of employers in supporting or providing certain educational programs and facilities. (c) Requires the committee to recommend to the governor one or more employers to receive the award. (d) Provides that an employer must apply to the committee on a form within the period prescribed by the committee in order to be considered for an award. SECTION 4. Amends Chapter 171, Tax Code, by adding Subchapter O, as follows: SUBCHAPTER O. TAX REFUND FOR ASSISTANCE IN EDUCATION Sec. 171.721. ENTITLEMENT. Entitles a corporation to a refund in the amount and under the conditions and limitations provided by this subchapter against the tax imposed under this chapter. Sec. 171.722. SPONSORING OR OPERATING EMPLOYEE EARLY CHILDHOOD OR KINDERGARTEN-GRADE 12 PROGRAMS. Entitles a corporation, subject to readjustment under Section 171.728, Tax Code, to a 50 percent refund of the amount spent for a privilege period in sponsoring or operating early childhood or kindergarten through grade 12 programs for the children of its employees. Sec. 171.723. PROVISION OF FACILITIES FOR SCHOOLS. Entitles a corporation, subject to readjustment under Section 171.728, Tax Code, that provides a privilege period or free or low-cost facility for the benefit of a nonprofit or public school, including an openenrollment charter school, in this state to a refund for that privilege period of a portion of the value of providing the facility. Provides that this refund is the lesser of 30 percent of the value of providing the facility or an amount described by guidelines established by the Texas Education Agency (agency) and rules adopted by the comptroller. Sec. 171.724. ADULT EDUCATION. Provides that a corporation qualifies for a refund for a privilege period if it provides during that period educational training for an employee in certain programs. Provides that these programs must be approved by the agency. Provides that the refund amount is the lesser of 25 percent of the actual cost of the training per fulltime equivalent student or $85 for each employee who successfully completes such a program. Sec. 171.725. ACCOUNTING YEAR. Requires the base amount and any other amount used to calculate a refund to be multiplied by a ratio the numerator of which is the number of days in the corporation's accounting year that are also in the privilege period and the denominator of which is the number of days in that period, if the corporation's accounting year does not correspond to the period. Sec. 171.726. APPLICATION. Provides that a corporation must apply for a refund under this subchapter on or with the tax report for the period or which the refund is claimed. Requires the comptroller to promulgate a form for the application of the refund on which a corporation must use in applying for a refund. Sec. 171.727. DETERMINATION OF TOTAL AMOUNT OF REFUNDS. Requires the comptroller to determine the total amount of refunds claimed under Sections 171.722 and 177.723, Tax Code, for a tax year on all reports filed on or before November 15. Sec. 171.728. ADJUSTMENT AND PAYMENT OF REFUND. (a) Requires the comptroller to send to a corporation entitled to a refund under this subchapter, on or before December 31 of the tax year: _the full refund amount determined under Section 171.722 if the amount under Section 171.727 for Section 171.722 is less than or equal to $2 million; or _a portion of the refund determined under Section 171.722 in accordance with Subsection (b) if the amount under Section 171.727 is greater than $2 million. (b) Requires the comptroller, if the amount under Section 171.727 for Section 171.722 is more than $2 million, to determine the amount of a corporation's refund by multiplying the amount of the refund determined under Section 171.722 by a fraction, the numerator of which is $2 million and the denominator of which is the amount under Section 171.727 for Section 171.722. (c) Requires the comptroller to send a corporation entitled to a refund under this chapter the appropriate refund on or before December 31 of a tax year. (d) Requires the comptroller, if the amount under Section 171.727 for Section 171.723 is more than $4 million, to determine the amount of the corporations' refund by multiplying the amount of the refund determined under Section 171.723 by a fraction, the numerator of which is $4 million and the denominator of which is the amount under Section 171.727 for Section 171.723. Sec. 171.729. NO CARRYOVER. Prohibits a refund claim from being carried forward to a subsequent reporting period. Sec. 171.730. RULES. (a) Requires the agency to adopt rules relating to eligibility for refunds under this subchapter. Requires the comptroller to adopt rules relating to the submission of refund claims and payment of the claims under this subchapter. SECTION 5. Requires the committee to adopt an application form for purposes of Section 39.113, Education Code, as added by this Act, no later than August 30, 2000. SECTION 6. Effective date: upon passage, except that SECTION 3 takes effect January 1, 2001 and is applicable only to a report originally due on or after January 1, 2001 and an expense or payment made on or after that date. SECTION 7.Emergency clause. Effective date: upon passage.