SRC-CTC S.B. 1766 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1766
77R2692 ESH-DBy: Bivins
Education
3/26/2001
As Filed


DIGEST AND PURPOSE 

In 1999, the 76th Legislature created a guaranteed yield for existing
school district debt at $35 per unweighted student yield.  Due to budgetary
concerns, only debt for which taxes were collected up through the 1998-1999
school year were eligible for the yield.  During the interim, school
districts have continued to pass bond issues and construct facilities, with
a number of those districts receiving state aid through the Instructional
Facilities Allotment.  However, this allotment was never intended to cover
all new debt.  As proposed, S.B. 1766 updates the eligibility for the
Existing Debt Allotment to the 20002001 school year so that certain school
districts with new debt are eligible for the state guaranteed yield. 

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 46.033, Education Code, to provide that bonds,
including bonds issued under Section 45.006, are eligible to be paid with
state and local funds under this subchapter if taxes levied to pay the
principal of and interest on the bonds were included in the district's
audited debt service collections for the 2000-2001, rather than the
1998-1999, school year. 

SECTION 2.  Effective date: September 1, 2001.