By George                                              H.B. No. 603
         77R741 ESH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the treatment for school finance purposes of school
 1-3     district optional homestead exemptions.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 42.2522, Education Code, and Section
 1-6     403.302(j), Government Code, are repealed.
 1-7           SECTION 2.  Section 46.034(d), Education Code, is amended to
 1-8     read as follows:
 1-9           (d)  To the extent funds are available under Chapter 42 or
1-10     this chapter in excess of the amount to which school districts are
1-11     entitled for a school year, the commissioner[, before providing
1-12     additional assistance under Section 42.2522,] may provide
1-13     assistance under this subchapter to a district that would be
1-14     entitled to the assistance but for the limit on the existing debt
1-15     tax rate under Subsection (a).
1-16           SECTION 3.  This Act takes effect September 1, 2001.