By Tillery                                            H.B. No. 1346
         77R3324 KKA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to state assistance with the payment of school district
 1-3     debt.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 46.034, Education Code, is amended to read
 1-6     as follows:
 1-7           Sec. 46.034.  LIMITS ON ASSISTANCE. (a)  [The existing debt
 1-8     tax rate ("EDTR") under Section 46.032 may not exceed $0.12 per
 1-9     $100 of valuation, or a greater amount for any year provided by
1-10     appropriation.]
1-11           [(b)]  The amount of state assistance to which a district is
1-12     entitled under this subchapter may not exceed the amount to which
1-13     the district would be entitled at the district's tax rate for the
1-14     payment of eligible bonds for the final year of the preceding state
1-15     fiscal biennium.
1-16           (b) [(c)]  If the amount required to pay the principal of and
1-17     interest on eligible bonds in a school year is less than the
1-18     district's audited debt service collections for the 1998-1999
1-19     school year, the district may not receive aid in excess of the
1-20     amount that, when added to the district's local revenue for the
1-21     school year, equals the amount required to pay the principal of and
1-22     interest on the bonds.
1-23           [(d)  To the extent funds are available under Chapter 42 or
1-24     this chapter in excess of the amount to which school districts are
 2-1     entitled for a school year, the commissioner, before providing
 2-2     additional assistance under Section 42.2522, may provide assistance
 2-3     under this subchapter to a district that would be entitled to the
 2-4     assistance but for the limit on the existing debt tax rate under
 2-5     Subsection (a).]
 2-6           SECTION 2. This Act takes effect September 1, 2001.