S.J.R. No. 7
                                SENATE JOINT RESOLUTION
    1-1  proposing constitutional amendments relating to the support and
    1-2  maintenance of public schools.
    1-3        BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Article VII of the Texas Constitution is amended
    1-5  by adding Section 3-c to read as follows:
    1-6        Sec. 3-c.  (a)  The legislature may redistribute among other
    1-7  school districts ad valorem taxes levied and collected by a school
    1-8  district, as determined by general law.
    1-9        (b)  The legislature may create county education districts
   1-10  with the taxable property of existing school districts in one or
   1-11  more counties combined.  A county education district may levy,
   1-12  collect, and distribute ad valorem taxes as authorized by general
   1-13  law.  The legislature may set the rate of the tax, as determined by
   1-14  general law, to be imposed in a school district or county education
   1-15  district or may authorize the board of trustees of each school
   1-16  district or county education district to set the rate, provided
   1-17  that the rate of county education district ad valorem taxes may not
   1-18  exceed $1.00 per $100 valuation of taxable property, as determined
   1-19  by law, unless a higher rate is approved by the voters of the
   1-20  district.
   1-21        (c)  The amount redistributed among school districts by the
   1-22  legislature under Subsection (a) of this section and effectively
   1-23  redistributed within a county through county education districts
   1-24  under Subsection (b) of this section may not exceed 2.75 percent of
    2-1  the sum of the state revenue appropriated for public schools and
    2-2  the revenue from local ad valorem taxes levied and collected for
    2-3  public schools.  For purposes of this section, state revenue does
    2-4  not include revenue from ad valorem taxes, revenue for the
    2-5  provision of free textbooks, or contributions to a retirement
    2-6  system.
    2-7        (d)  This section does not affect the distribution of the
    2-8  available school fund under Article VII, Section 5, of this
    2-9  constitution.
   2-10        SECTION 2.  Article VII of the Texas Constitution is amended
   2-11  by adding Section 8a to read as follows:
   2-12        Sec. 8a.  (a)  Except for state educational mandates imposed
   2-13  in compliance with this constitution or federal law, or unless
   2-14  enacted by a vote of at least two-thirds of the members elected to
   2-15  each house, a school district may not be required to comply with an
   2-16  obligation requiring expenditure of school district funds unless
   2-17  the obligation is fully funded.
   2-18        (b)  The legislature shall provide by law a procedure for
   2-19  determining whether an obligation is fully funded for purposes of
   2-20  Subsection (a) of this section.  In the absence of such a
   2-21  procedure, at the request of the board of trustees of a school
   2-22  district the comptroller of public accounts shall determine whether
   2-23  or not an obligation is fully funded for purposes of Subsection (a)
   2-24  of this section.
   2-25        (c)  This section applies only to state educational mandates
   2-26  enacted after December 31, 1993.
   2-27        SECTION 3.  The constitutional amendment proposed by Section
    3-1  1 of this joint resolution shall be submitted to the voters at an
    3-2  election to be held May 1, 1993.  The ballot shall be printed to
    3-3  provide for voting for or against the proposition:  "The
    3-4  constitutional amendment allowing limited redistribution of ad
    3-5  valorem taxes for schools, authorizing the legislature or local
    3-6  districts to set a minimum tax rate in county education districts,
    3-7  and placing a cap on the ad valorem tax levied by county education
    3-8  districts."
    3-9        SECTION 4.  The constitutional amendment proposed by Section
   3-10  2 of this joint resolution shall be submitted to the voters at an
   3-11  election to be held May 1, 1993.  The ballot shall be printed to
   3-12  provide for voting for or against the proposition:  "The
   3-13  constitutional amendment exempting a school district from the
   3-14  obligation to comply with unfunded state educational mandates."