By Hochberg H.B. No. 2201
77R3365 ESH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the instructional facilities allotment and to state
1-3 assistance with the payment of existing debt of school districts.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 46.003(a), Education Code, is amended to
1-6 read as follows:
1-7 (a) For each year, except as provided by Sections 46.005,
1-8 46.0051, and 46.006, a school district is guaranteed a specified
1-9 amount per student in state and local funds for each cent of tax
1-10 effort, up to the maximum rate under Subsection (b), to pay the
1-11 principal of and interest on eligible bonds issued to construct,
1-12 acquire, renovate, or improve an instructional facility. The
1-13 amount of state support is determined by the formula:
1-14 FYA = (FYL X ADA X BTR X 100) - (BTR X (DPV/100))
1-15 where:
1-16 "FYA" is the guaranteed facilities yield amount of state
1-17 funds allocated to the district for the year;
1-18 "FYL" is the dollar amount guaranteed level of state and
1-19 local funds per student per cent of tax effort, which is $35 or a
1-20 greater amount for any year provided by appropriation;
1-21 "ADA" is the greater of the number of students in average
1-22 daily attendance, as determined under Section 42.005, in the
1-23 district or 400;
1-24 "BTR" is the district's bond tax rate for the current year,
2-1 which is determined by dividing the amount of taxes budgeted to be
2-2 collected by the district for payment of eligible bonds by the
2-3 quotient of the district's taxable value of property as determined
2-4 under Subchapter M, Chapter 403, Government Code, or, if
2-5 applicable, Section 42.2521, divided by 100; and
2-6 "DPV" is the district's taxable value of property as
2-7 determined under Subchapter M, Chapter 403, Government Code, or, if
2-8 applicable, Section 42.2521.
2-9 SECTION 2. Subchapter A, Chapter 46, Education Code, is
2-10 amended by adding Section 46.0051 to read as follows:
2-11 Sec. 46.0051. TWO-YEAR LIMIT ON ASSISTANCE. A school
2-12 district may not receive assistance under this subchapter for more
2-13 than two years. After that period, the district is entitled to
2-14 assistance as provided by Subchapter B.
2-15 SECTION 3. Section 46.033, Education Code, is amended to
2-16 read as follows:
2-17 Sec. 46.033. ELIGIBLE BONDS. Bonds, including bonds issued
2-18 under Section 45.006, are eligible to be paid with state and local
2-19 funds under this subchapter if:
2-20 (1) taxes levied to pay the principal of and interest
2-21 on the bonds were included in the district's audited debt service
2-22 collections for at least one [the 1998-1999] school year during the
2-23 state fiscal biennium preceding the biennium in which the district
2-24 first receives assistance under this subchapter for the payment of
2-25 principal and interest on the bonds; and
2-26 (2) the district does not receive state assistance
2-27 under Subchapter A for payment of the principal and interest on the
3-1 bonds.
3-2 SECTION 4. Sections 46.034(a) and (c), Education Code, are
3-3 amended to read as follows:
3-4 (a) The existing debt tax rate ("EDTR") under Section 46.032
3-5 may not exceed the greater of:
3-6 (1) $0.50 [$0.12] per $100 of valuation less the tax
3-7 rate for which the district receives assistance, if any, under
3-8 Subchapter A; or
3-9 (2) the [a greater] amount [for any year] provided by
3-10 appropriation for any year.
3-11 (c) If the amount required to pay the principal of and
3-12 interest on eligible bonds in a school year is less than the
3-13 district's audited debt service collections for the [1998-1999]
3-14 final school year of the state fiscal biennium preceding the
3-15 biennium in which the district first receives assistance under this
3-16 subchapter for the payment of principal and interest on the bonds,
3-17 the district may not receive aid in excess of the amount that, when
3-18 added to the district's local revenue for the school year, equals
3-19 the amount required to pay the principal of and interest on the
3-20 bonds.
3-21 SECTION 5. This Act takes effect September 1, 2001.