By Lucio                                              S.B. No. 1424
       74R6063(1) ESH
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to state assistance for public school facilities.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Subchapter D, Chapter 16, Education Code, is
    1-5  amended by adding Section 16.161 to read as follows:
    1-6        Sec. 16.161.  SCHOOL FACILITIES ALLOTMENT.  (a)  For each
    1-7  student in average daily attendance, a district is entitled to a
    1-8  school facilities allotment of $300 or more as provided by this
    1-9  section.
   1-10        (b)  The school facilities allotment of a district that has
   1-11  had a high rate of growth in average daily attendance for the
   1-12  preceding five years, as determined by the commissioner of
   1-13  education in accordance with State Board of Education rule, may be
   1-14  increased by not more than 15 percent.  An adjustment under this
   1-15  subsection must be computed so that the higher the rate of a
   1-16  district's growth in average daily attendance, the greater the
   1-17  increase.
   1-18        (c)  The school facilities allotment of a district that has
   1-19  facilities that are in poor condition, as determined by the
   1-20  commissioner of education in accordance with State Board of
   1-21  Education rule, may be increased by not more than 15 percent.
   1-22        (d)  Funds allotted under this section must be used to
   1-23  acquire, maintain, or improve school facilities.  A district may:
   1-24              (1)  use funds allotted under this section to pay
    2-1  principal and interest on bonds issued before the funds were
    2-2  allotted; or
    2-3              (2)  invest or deposit funds allotted under this
    2-4  section for use in a school year other than the school year in
    2-5  which the funds were allotted.
    2-6        SECTION 2.  Section 16.401(a), Education Code, is amended to
    2-7  read as follows:
    2-8        (a)  The State Board of Education shall establish a statewide
    2-9  inventory of school facilities and shall update the inventory not
   2-10  later than December 1 of each even-numbered year.  The State Board
   2-11  of Education shall provide a copy of the updated inventory to the
   2-12  governor and the Legislative Budget Board.  The State Board of
   2-13  Education shall provide a copy of the updated inventory to each
   2-14  member of the legislature who requests a copy <on a periodic
   2-15  basis>.
   2-16        SECTION 3.  Subchapter I, Chapter 16, Education Code, is
   2-17  amended by adding Section 16.403 to read as follows:
   2-18        Sec. 16.403.  FACILITIES GRANTS.  (a)  Out of the proceeds of
   2-19  general obligation bonds issued for the purpose, the commissioner
   2-20  of education, as directed by the State Board of Education, may make
   2-21  a grant to a school district that has:
   2-22              (1)  a critical need for school facilities, as
   2-23  determined under State Board of Education rules and as shown by the
   2-24  inventory conducted under Section 16.401; or
   2-25              (2)  a total tax rate exceeding $1.50 on the $100
   2-26  valuation of taxable property.
   2-27        (b)  The State Board of Education shall adopt rules
    3-1  prescribing:
    3-2              (1)  the maximum amount of a grant under this section;
    3-3              (2)  a method of giving priority for a grant under this
    3-4  section from among eligible districts to a district that has a low
    3-5  value of taxable property, as determined under Section 11.86, per
    3-6  weighted student in average daily attendance; and
    3-7              (3)  the manner in which a school district must apply
    3-8  for a grant.
    3-9        (c)  A school district that receives funds under Subsection
   3-10  (a)(1) must use the funds to acquire, construct, repair, or
   3-11  renovate the critically needed facilities for which the grant was
   3-12  made.
   3-13        (d)  A school district that receives funds under Subsection
   3-14  (a)(2) must:
   3-15              (1)  use the funds to pay the principal and interest on
   3-16  bonds issued for school facilities; and
   3-17              (2)  reduce the district's bond tax rate to the rate
   3-18  necessary to pay any remaining bonds.
   3-19        SECTION 4.  (a)  Except as provided by Subsection (b) of this
   3-20  section, this Act takes effect September 1, 1995.
   3-21        (b)  Section 16.403, Education Code, as added by this Act,
   3-22  takes effect only if the state bond proposition proposed by
   3-23  _____J.R. No. ____, 74th Legislature, Regular Session, 1995,
   3-24  proposing the issuance of general revenue bonds for grants to
   3-25  public school districts for school facilities needs or tax relief,
   3-26  is approved by the voters.  If the state bond proposition is not
   3-27  approved by the voters, Section 16.403, Education Code, as added by
    4-1  this Act has no effect.
    4-2        SECTION 5.  The importance of this legislation and the
    4-3  crowded condition of the calendars in both houses create an
    4-4  emergency and an imperative public necessity that the
    4-5  constitutional rule requiring bills to be read on three several
    4-6  days in each house be suspended, and this rule is hereby suspended.