By Grusendorf H.B. No. 3417
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
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;
2-1 "BTR" is the district's bond tax rate for the current year,
2-2 which is determined by dividing the amount of qualified local funds
2-3 budgeted for payment of eligible bonds, where qualified local funds
2-4 means the total amount of maintenance and bond taxes and other
2-5 local revenue lawfully expendable for school facilities debt
2-6 payments in the current school year or prior school years that has
2-7 not been used to meet the local share of any other allotment under
2-8 Chapter 42 or this chapter in the current school year or prior
2-9 school years, [of taxes budgeted to be collected by the district
2-10 for payment of eligible bonds] by the quotient of the district's
2-11 taxable value of property as determined under Subchapter M, Chapter
2-12 403, Government Code, or, if applicable, Section 42.2521, divided
2-13 by 100; and
2-14 "DPV" is the district's taxable value of property as
2-15 determined under Subchapter M, Chapter 403, Government Code, or, if
2-16 applicable, Section 42.2521.
2-17 SECTION 2. Subchapter A, Chapter 46, Education Code, is
2-18 amended by adding Section 46.0051 to read as follows:
2-19 Sec. 46.0051. TWO-YEAR LIMIT ON ASSISTANCE. A school
2-20 district may not receive assistance under this subchapter for more
2-21 than two years. After that period, the district is entitled to
2-22 assistance as provided by Subchapter B.
2-23 SECTION 3. Section 46.032(a) is amended to read as follows:
2-24 (a) Each school district is guaranteed a specified amount
2-25 per student in state and local funds for each cent of tax effort to
2-26 pay the principal of and interest on eligible bonds. The amount of
3-1 state support, subject only to the maximum amount under Section
3-2 46.034, is determined by the formula:
3-3 EDA = (EDGL X ADA X EDTR X 100) - (EDTR X (DPV/100))
3-4 where:
3-5 "EDA" is the amount of state funds to be allocated to the
3-6 district for assistance with existing debt;
3-7 "EDGL" is the dollar amount guaranteed level of state and
3-8 local funds per student per cent of tax effort, which is $35 or a
3-9 greater amount for any year provided by appropriation;
3-10 "ADA" is the number of students in average daily attendance,
3-11 as determined under Section 42.005, in the district;
3-12 "EDTR" is the existing debt tax rate of the district, which
3-13 is determined by dividing [the amount] of qualified local funds
3-14 budgeted for payment of eligible bonds, where qualified local funds
3-15 means the total amount of maintenance and bond taxes and other
3-16 local revenue lawfully expendable for school facilities debt
3-17 payments in the current school year or prior school years that has
3-18 not been used to meet the local share of any other allotment under
3-19 Chapter 42 or this chapter in the current school year or prior
3-20 school years, [of taxes budgeted to be collected by the district
3-21 for payment of eligible bonds] by the quotient of the district's
3-22 taxable value of property as determined under Subchapter M, Chapter
3-23 403, or, if applicable, Section 42.2521; and
3-24 "DPV" is the district's taxable value of property as
3-25 determined under Subchapter M, Chapter 403, or, Government Code,
3-26 or, if applicable, Section 42.2521.
4-1 SECTION 4. Section 46.033, Education Code, is amended to read
4-2 as follows:
4-3 Sec. 46.033. ELIGIBLE BONDS. Bonds, including bonds issued
4-4 under Section 45.006, are eligible to be paid with state and local
4-5 funds under this subchapter if:
4-6 (1) the district certifies to the commissioner prior
4-7 to January 1 of the second year of the state fiscal biennium the
4-8 amount of payments due on the bonds in each year of the state's
4-9 next fiscal biennium; and [taxes levied to pay the principal of and
4-10 interest on the bonds were included in the district's audited debt
4-11 service collections for the 1998-1999 school year; and]
4-12 (2) the district does not receive state assistance
4-13 under Subchapter A for payment of the principal and interest on the
4-14 bonds.
4-15 SECTION 5. Sections 46.034(a) and (c), Education Code, are
4-16 amended to read as follows:
4-17 (a) The existing debt tax rate ("EDTR") under Section 46.032
4-18 may not exceed the greater of:
4-19 (1) $0.50 [$0.12] per $100 of valuation less the tax
4-20 rate for which the district receives assistance, if any, under
4-21 Subchapter A; or
4-22 (2) the [a greater] amount [for any year] provided by
4-23 appropriation for any year.
4-24 (c) If the amount required to pay the principal of and
4-25 interest on eligible bonds in a school year is less than the amount
4-26 certified under subsection 46.033(1), [district's audited debt
5-1 service collections for the 1998-1999 school year], the district
5-2 may not receive aid in excess of the amount that, when added to the
5-3 district's local revenue for the school year, equals the amount
5-4 required to pay the principal of and interest on the bonds.
5-5 SECTION 6. This Act takes effect September 1, 2001.