SRC-MKV S.B. 1753 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1753
By: Cain
Education
4/20/2001
As Filed


DIGEST AND PURPOSE 

Under current law, payment of facilities debt under a lease-purchase
agreement cannot be considered as payment of debt for the purpose of
calculating a school district's rollback rate, even though the payments for
a district's Maintenance and Operations (M&O) debt and General Obligation
(GO) bonds are considered debt in rollback calculations.  As proposed, S.B.
1753 requires a school district's lease-purchase bonds to be treated like
other M&O debt and GO bonds for tax rollback purposes.   

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 271.004(e), Local Government Code, to delete
language prohibiting the contract from being considered payment of
indebtedness under Section 26.04(c), Tax Code, and adds language requiring
it to be treated as debt as defined by Section 26.012(7), Tax Code. 

SECTION 2.  Effective date: upon passage or September 1, 2001.