By Shapleigh                                          S.B. No. 1492
         77R5538 ESH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the tax rate for which a school district may receive
 1-3     assistance under the Foundation School Program.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter F, Chapter 42, Education Code, is
 1-6     amended by adding Section 42.3031 to read as follows:
 1-7           Sec. 42.3031.  INCREASE IN GUARANTEED YIELD AMOUNT.  (a)
 1-8     Notwithstanding Section 42.253(e) and subject to Section 42.303,
 1-9     the commissioner may, as provided by this section, provide
1-10     assistance under this subchapter to a school district for a
1-11     district enrichment tax rate ("DTR") that is greater than the tax
1-12     rate limit under Section 42.253(e).
1-13           (b)  A tax rate for which a district receives assistance
1-14     under this section may not exceed $0.03.
1-15           (c)  The guaranteed yield amount of state funds ("GYA") to be
1-16     allocated to a school district for assistance under this section
1-17     may be paid only from funds that the commissioner finds are
1-18     available under this chapter because the amount appropriated for a
1-19     year for purposes of this chapter exceeds the amount to which
1-20     school districts are entitled for that year.
1-21           (d)  If the total amount available for a year for assistance
1-22     to districts under this section is less than the amount of money to
1-23     which school districts are entitled under this section for that
1-24     year, the commissioner shall rank each school district by wealth
 2-1     per student.
 2-2           (e)  Beginning with the district with the lowest wealth per
 2-3     student that is eligible for assistance under this section for the
 2-4     year, the commissioner shall award state assistance to eligible
 2-5     districts in ascending order of wealth per student.  The
 2-6     commissioner shall award the full amount of state assistance to
 2-7     which a district is entitled under this section, except that the
 2-8     commissioner may award less than the full amount to the last
 2-9     district for which any funds are available.
2-10           (f)  In this section, "wealth per student" means a school
2-11     district's taxable value of property as determined under Subchapter
2-12     M, Chapter 403, Government Code, or, if applicable, Section
2-13     42.2521, divided by the district's weighted average daily
2-14     attendance as determined under Section 42.302.
2-15           SECTION 2.  This Act takes effect September 1, 2001.