By:  Nelson                                           S.B. No. 1460
         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 state programs for assisting school districts with
 1-3     paying the costs of public school facilities.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 46.006, Education Code, is amended to
 1-6     read as follows:
 1-7           Sec. 46.006.  SHORTAGE OR EXCESS OF FUNDS APPROPRIATED FOR
 1-8     NEW PROJECTS.  (a)  If the total amount appropriated for a year for
 1-9     new projects is less than the amount of money to which school
1-10     districts applying for state assistance are entitled for that year,
1-11     the commissioner shall award state assistance for each new project
1-12     for which a district requested assistance during the 1999-2000 or
1-13     2000-2001 school year but did not receive assistance solely because
1-14     state money was not available.  To be eligible for state assistance
1-15     under this subsection, a district must:
1-16                 (1)  submit an updated application; and
1-17                 (2)  demonstrate that the district did not pursue the
1-18     project because of the lack of available assistance.
1-19           (b)  After providing assistance to all new projects described
1-20     by Subsection (a), the commissioner shall rank each remaining
1-21     school district applying by wealth per student.  For purposes of
1-22     this section, a district's wealth per student is reduced by 10
1-23     percent for each state fiscal biennium in which the district did
 2-1     not receive assistance under this subchapter.
 2-2           (c) [(b)]  A district's wealth per student is reduced for
 2-3     purposes of this section if a district has had substantial student
 2-4     enrollment growth in the preceding five-year period.  The reduction
 2-5     is in addition to any reduction under Subsection (b) [(a)] and is
 2-6     computed before the district's wealth per student is reduced under
 2-7     that subsection, if applicable.  A district's wealth per student is
 2-8     reduced:
 2-9                 (1)  by five percent, if the district has an enrollment
2-10     growth rate in that period that is 10 percent or more but less than
2-11     15 percent;
2-12                 (2)  by 10 percent, if the district has an enrollment
2-13     growth rate in that period that is 15 percent or more but less than
2-14     30 percent; or
2-15                 (3)  by 15 percent, if the district has an enrollment
2-16     growth rate in that period that is 30 percent or more.
2-17           (d) [(c)]  A district's wealth per student is reduced by 10
2-18     percent for purposes of this section if the district does not have
2-19     any outstanding debt at the time the district applies for
2-20     assistance under this subchapter.  The reduction is in addition to
2-21     any reduction under Subsection [(a) or] (b) or (c) and is computed
2-22     before the district's wealth per student is reduced under those
2-23     subsections, if applicable.
2-24           (e) [(d)]  The commissioner shall adjust the rankings after
2-25     making the reductions in wealth per student required by Subsections
2-26     [(a),] (b), [and] (c), and (d).
 3-1           (f) [(e)]  Beginning with the district with the lowest
 3-2     adjusted wealth per student that has applied for state assistance
 3-3     for the year, the commissioner shall award state assistance to
 3-4     districts that have applied for state assistance in ascending order
 3-5     of adjusted wealth per student.  The commissioner shall award the
 3-6     full amount of state assistance to which a district is entitled
 3-7     under this subchapter, except that the commissioner may award less
 3-8     than the full amount to the last district for which any funds are
 3-9     available.
3-10           (g) [(f)]  Any amount appropriated for the first year of a
3-11     fiscal biennium that is not awarded to a school district may be
3-12     used to provide assistance in the following fiscal year.
3-13           (h) [(g)]  In this section, "wealth per student" means a
3-14     school district's taxable value of property as determined under
3-15     Subchapter M, Chapter 403, Government Code, or, if applicable,
3-16     Section 42.2521, divided by the district's average daily attendance
3-17     as determined under Section 42.005.
3-18           SECTION 2.  Section 46.034(a), Education Code, is amended to
3-19     read as follows:
3-20           (a)  The existing debt tax rate ("EDTR") under Section 46.032
3-21     may not exceed $0.29[$0.12] per $100 of valuation, or a greater
3-22     amount for any year provided by appropriation.
3-23           SECTION 3.  This Act takes effect September 1, 2001.