HBA-KDB H.B. 2637 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2637
By: George
Ways & Means
4/19/2001
Introduced



BACKGROUND AND PURPOSE 

Under current law, the public school finance system in this state has an ad
valorem tax rate ceiling of $1.50 on the $100 valuation of taxable property
in school districts.  The rate was set when there were only a few school
districts close to setting that maximum rate.  There is concern that the
majority of school districts will reach this ceiling in the near future,
leaving districts with little room for growth.  House Bill 2637 requires
the comptroller of public accounts, in cooperation with the Texas Education
Agency, to conduct an interim study that examines the ad valorem tax rate
ceiling. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 2637 requires the comptroller of public accounts (comptroller),
in cooperation with the Texas Education Agency, to conduct a study of the
ad valorem tax rate limit imposed on school districts.  The bill sets forth
the requirements of such a study.  The bill requires the comptroller, not
later than December 1, 2002, to deliver to the governor, the lieutenant
governor, the speaker of the house of representatives, and the clerks of
the standing committees of the senate and house of representatives with
primary jurisdiction over the public school system a report containing the
findings of the study. 

EFFECTIVE DATE

September 1, 2001.