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.