By Madden                                             H.B. No. 3222
         77R9378 ESH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to school district applications for assistance under the
 1-3     instructional facilities allotment.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 46.003, Education Code, is amended by
 1-6     amending Subsection (g) and adding Subsection (h) to read as
 1-7     follows:
 1-8           (g)  To receive state assistance under this subchapter, a
 1-9     school district must apply to the commissioner in accordance with
1-10     rules adopted by the commissioner before issuing bonds that will be
1-11     paid with state assistance.  For each school year, the rules must
1-12     provide school districts with at least 180 days' notice of the
1-13     deadline by which applications for assistance must be received.
1-14           (h)  Until [the] bonds for which a district receives state
1-15     assistance under this subchapter are fully paid or the
1-16     instructional facility is sold:
1-17                 (1)  a school district is entitled to continue
1-18     receiving state assistance without reapplying to the commissioner;
1-19     and
1-20                 (2)  the guaranteed level of state and local funds per
1-21     student per cent of tax effort applicable to the bonds may not be
1-22     reduced below the level provided for the year in which the bonds
1-23     were issued.
1-24           SECTION 2. The commissioner of education shall adopt rules
 2-1     complying with Section 46.003(g), Education Code, as amended by
 2-2     this Act, not later than January 1, 2002.  The rules must apply to
 2-3     applications for assistance under Subchapter A, Chapter 46,
 2-4     Education Code, beginning with applications for assistance for the
 2-5     2002-2003 school year.
 2-6           SECTION 3. This Act takes effect September 1, 2001.