1-1     By:  Sadler (Senate Sponsor - Bivins)                 H.B. No. 2879
 1-2           (In the Senate - Received from the House May 7, 2001;
 1-3     May 7, 2001, read first time and referred to Committee on
 1-4     Education; May 11, 2001, reported adversely, with favorable
 1-5     Committee Substitute by the following vote:  Yeas 6, Nays 0;
 1-6     May 11, 2001, sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR H.B. No. 2879                  By:  Bivins
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to public school finance.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1.  Effective September 1, 2001, Section 41.002(a),
1-13     Education Code, is amended to read as follows:
1-14           (a)  A school district may not have a wealth per student that
1-15     exceeds $300,000 [$295,000].
1-16           SECTION 2.  Effective September 1, 2002, Section 41.002(a),
1-17     Education Code, is amended to read as follows:
1-18           (a)  A school district may not have a wealth per student that
1-19     exceeds $305,000 [$295,000].
1-20           SECTION 3.  Section 42.005(b), Education Code, is amended to
1-21     read as follows:
1-22           (b)  A school district that experiences a decline of two
1-23     percent or more in average daily attendance shall be funded on the
1-24     basis of:
1-25                 (1)  the actual average daily attendance of the
1-26     preceding school year, if the decline is the [as a] result of the
1-27     closing or reduction in personnel of a military base; or
1-28                 (2)  to the extent that funds are specifically
1-29     appropriated for purposes of this subdivision, an average daily
1-30     attendance equal to 98 percent of the actual average daily
1-31     attendance of the preceding school year, if the decline is not the
1-32     result of the closing or reduction in personnel of a military base
1-33     [shall be funded on the basis of the actual average daily
1-34     attendance of the preceding school year].
1-35           SECTION 4.  Section 46.033, Education Code, is amended to
1-36     read as follows:
1-37           Sec. 46.033.  ELIGIBLE BONDS. Bonds, including bonds issued
1-38     under Section 45.006, are eligible to be paid with state and local
1-39     funds under this subchapter if:
1-40                 (1)  taxes levied to pay the principal of and interest
1-41     on the bonds were included in the district's audited debt service
1-42     collections for the 2000-2001 [1998-1999] school year; and
1-43                 (2)  the district does not receive state assistance
1-44     under Subchapter A for payment of the principal and interest on the
1-45     bonds.
1-46           SECTION 5.  Section 46.034(a), Education Code, is amended to
1-47     read as follows:
1-48           (a)  The existing debt tax rate ("EDTR") under Section 46.032
1-49     may not exceed $0.29 [$0.12] per $100 of valuation, or a greater
1-50     amount for any year provided by appropriation.
1-51           SECTION 6.  Except as otherwise provided by this Act, this
1-52     Act takes effect September 1, 2001.
1-53                                  * * * * *