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.