18_04 Proposed Amendment to 19 TAC §61.1032
Commissioner's Rules
Proposed Amendment to 19 TAC Chapter 61, School Districts, Subchapter CC, Commissioner's Rules Concerning School Facilities, §61.1032, Instructional Facilities Allotment
Attachments:
I. Statutory Citations (PDF)
II. Text of Proposed Amendment to 19 TAC Chapter 61, School Districts, Subchapter CC, Commissioner's Rules Concerning School Facilities, §61.1032, Instructional Facilities Allotment (PDF)
SUMMARY: The rule action presented in this item was filed as proposed with the Texas Register under the commissioner's rulemaking authority. This item proposes an amendment to 19 TAC Chapter 61, School Districts, Subchapter CC, Commissioner's Rules Concerning School Facilities, §61.1032, Instructional Facilities Allotment. The proposed amendment would update the rule to align with current practice for administering the Instructional Facilities Allotment (IFA) program.
STATUTORY AUTHORITY: Texas Education Code (TEC), §§46.002-46.007, 46.009, 46.013, and 46.061.
TEC, §46.002, permits the commissioner of education to adopt rules for the implementation of the TEC, Chapter 46, Subchapter A.
TEC, §46.003, provides for an allotment of state funds to certain school districts to pay the principal and interest on eligible bonds issued to construct, acquire, renovate, or improve an instructional facility.
TEC, §46.004, permits a district to receive assistance in connection with a lease-purchase agreement concerning an instructional facility.
TEC, §46.005, provides for certain limits on the amount of state and local funds that a district may be awarded under TEC, §46.003.
TEC, §46.006, defines the process for allocating funding for new projects if the amount appropriated is less than the amount of money to which school districts applying for state assistance are entitled for that year.
TEC, §46.007, outlines the requirements for refunding bonds to be eligible for state assistance.
TEC, §46.009, provides for the amounts and timing of payments of state assistance to school districts.
TEC, §46.013, clarifies that school districts are not eligible for state assistance under TEC, Chapter 46, Subchapter A, for any taxes for which a district receives assistance under TEC, Chapter 42, Subchapter F.
TEC, §46.061, permits the commissioner of education to adopt rules governing state assistance for refinancing school district debt. The commissioner may allocate state assistance for a refinancing to TEC, Chapter 46, Subchapter A.
EARLIEST POSSIBLE DATE OF ADOPTION: May 21, 2018.
PROPOSED EFFECTIVE DATE: July 8, 2018.
BACKGROUND INFORMATION AND JUSTIFICATION: The proposed amendment to 19 TAC §61.1032 exercises the commissioner's authority to adopt rules to implement the IFA program under TEC, Chapter 46, Subchapter A, which provides assistance to school districts in making debt service payments on qualifying bond or lease-purchase agreements. Bond or lease-purchase proceeds must be used for the construction or renovation of an instructional facility. The proposed amendment would reflect changes in how the Texas Education Agency (TEA) administers this program. Specifically, the following changes would be made.
The proposed amendment would simplify the requirements for school districts by removing obsolete requirements to send to the TEA paper copies of documents that are already on file with the state information repository, the Municipal Advisory Council of Texas (MAC), in subsections (b)(4) and (t)(2)(D) and (E) and to send debt service schedules for interest rate management agreements that are updated with the state information repository (MAC) in subsection (d)(13). In addition, the proposed amendment would remove the requirement in current subsection (d)(9)(C)(iv) for financial advisors to certify net present value savings for refinancing to school districts separate from the IFA program amendment process prior to school districts submitting to the TEA. Instead, school districts would be required to submit those certifications directly to the TEA through the IFA program amendment process.
Rule text that re-states statutory requirements would be removed from current subsection (d)(9)(A)-(C) and (11)(A) and (B) and subsection (e).
Current subsection (d)(11)(C) and (D), (14), and (15) would be rearranged and rule text would be added or removed to clarify the TEA's practice for calculating the amount of excess collections, if any, to be applied to satisfy the IFA local share requirement.
Rule text that has expired would be removed from subsections (d)(9)(F) and (m)(2)(D).
Rule text would be modified in subsection (d)(2) to clarify requirements for timely submission of an application for funding of bonded debt service in accordance with the TEC, §46.003(h). New definitions would be added as subsection (a)(6) for the state information repository (MAC) referenced throughout §61.1032 and as subsection (a)(7) to define sale date referenced in subsection (d)(2).
FISCAL IMPACT: The TEA has determined that there are no additional costs to persons required to comply with the proposed amendment. There are no fiscal implications for state and local government beyond what the authorizing statute requires.
The TEA has determined that there is no direct adverse economic impact for small businesses, microbusinesses, and rural communities; therefore, no regulatory flexibility analysis, specified in Texas Government Code, §2006.002, is required. There is no effect on local economy; therefore, no local employment impact statement is required under Texas Government Code, §2001.022. The proposed amendment does not impose a cost on regulated persons and, therefore, is not subject to Texas Government Code, §2001.0045.
GOVERNMENT GROWTH IMPACT: TEA staff has determined that the proposed amendment to §61.1032 would have a government growth impact pursuant to Texas Government Code, §2001.0221. The proposed amendment would repeal certain requirements for school districts to send paper copies of documents that are already on file with the state information repository (MAC) to the TEA.
PUBLIC AND STUDENT BENEFIT: The proposed amendment would simplify the administration of the IFA program for the TEA and school districts. State assistance for this program will be more timely and will generate less administrative burden for school districts.
PROCEDURAL AND REPORTING IMPLICATIONS: The proposed amendment would reduce reporting requirements for school districts by removing obsolete requirements to send documentation to the TEA that are already on file with the state information repository (MAC).
LOCALLY MAINTAINED PAPERWORK REQUIREMENTS: The proposed amendment would reduce locally maintained records as reporting obligations to the TEA are decreased.
PUBLIC COMMENTS: The public comment period on the proposal begins April 20, 2018, and ends May 21, 2018.
ALTERNATIVES: None.
OTHER COMMENTS AND RELATED ISSUES: A request for a public hearing on the proposal submitted under the Administrative Procedure Act must be received by the commissioner of education not more than 14 calendar days after notice of the proposal has been published in the Texas Register on April 20, 2018.
Staff Members Responsible:
Leo Lopez, Associate Commissioner, School Finance / Chief School Finance Officer
Al McKenzie, Director, State Funding