By Shapiro                                             S.B. No. 593
         76R6202 ESH-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to additional state assistance for certain school
 1-3     districts with high tax rates.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 42.303, Education Code, is amended to
 1-6     read as follows:
 1-7           Sec. 42.303.  LIMITATION ON ENRICHMENT AND FACILITIES TAX
 1-8     RATE.  (a)  Except as otherwise provided by this section, the [The]
 1-9     district enrichment and facilities tax rate ("DTR") under Section
1-10     42.302  may not exceed $0.64 per $100 of valuation, or a greater
1-11     amount for any year provided by appropriation.
1-12           (b)  A district may receive state assistance under this
1-13     subchapter based on taxes imposed to pay the principal of and
1-14     interest on bonds other than bonds for which the district receives
1-15     state assistance under Chapter 46 if:
1-16                 (1)  the district's total tax rate exceeds a rate equal
1-17     to the sum of the local fund assignment rate under Section 42.252
1-18     and the  rate prescribed by Subsection (a); and
1-19                 (2)  all or part of the excess described by Subdivision
1-20     (1) is attributable to taxes imposed to pay the principal of and
1-21     interest  on bonds other than bonds for which the district receives
1-22     state assistance under Chapter 46.
1-23           (c)  A district may not receive state assistance for any
1-24     portion of a tax rate that exceeds the limit prescribed by
 2-1     Subsection (a)  that is attributable to maintenance and operations
 2-2     taxes.
 2-3           (d)  The tax rate for which a district may receive state
 2-4     assistance as provided by Subsection (b) may not exceed the rate
 2-5     that would  be necessary for the current year, using state funds
 2-6     under Section 42.302, to make payments of principal and interest on
 2-7     the bonds for which the tax is pledged.
 2-8           (e)  For purposes of this section, a district's total tax
 2-9     rate is determined by subtracting the amounts specified by
2-10     Subsection (f)  from the total amount of taxes collected by the
2-11     school district for the applicable school year and dividing the
2-12     difference by the quotient of the district's taxable value of
2-13     property as determined under Subchapter M, Chapter 403, Government
2-14     Code, divided by 100.
2-15           (f)  In computing the total tax rate of a school district,
2-16     the total amount of taxes collected by the school  district does
2-17     not include the amount of:
2-18                 (1)  taxes collected to pay the local share of the cost
2-19     of an instructional facility for which the district receives state
2-20     assistance under Chapter 46; or
2-21                 (2)  taxes paid into a tax increment fund under Chapter
2-22     311, Tax Code.
2-23           SECTION 2.  This Act takes effect September 1, 1999.
2-24           SECTION 3.  The importance of this legislation and the
2-25     crowded condition of the calendars in both houses create an
2-26     emergency and an imperative public necessity that the
2-27     constitutional rule requiring bills to be read on three several
 3-1     days in each house be suspended, and this rule is hereby suspended.