By: Cain S.B. No. 1728
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to payment sources for a school district's local share of
1-3 debt service for which the district receives state assistance.
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 Subsections (d) through (g) and adding Subsection (h) to
1-7 read as follows:
1-8 (d) The amount of taxes budgeted to be collected by the
1-9 district for payment of eligible bonds under Subsection (a) may
1-10 include:
1-11 (1) bond taxes collected in the current school year;
1-12 (2) bond taxes collected in a preceding school year in
1-13 excess of the amount necessary to pay the district's share of
1-14 actual debt service on bonds in that year;
1-15 (3) maintenance and operations taxes collected in the
1-16 current school year or the preceding school year in excess of the
1-17 amount used to generate other state financial assistance for the
1-18 district; or
1-19 (4) any other local money, including donations and
1-20 grants, not obtained from a governmental source or used to generate
1-21 other state financial assistance for the district.
1-22 (e) Bonds are eligible to be paid with state and local funds
1-23 under this section if:
1-24 (1) taxes to pay the principal of and interest on the
1-25 bonds were first levied in the 1997-1998 school year or a later
2-1 school year; and
2-2 (2) the bonds do not have a weighted average maturity
2-3 of less than eight years.
2-4 (f) [(e)] A district may use state funds received under this
2-5 section only to pay the principal of and interest on the bonds for
2-6 which the district received the funds.
2-7 (g) [(f)] The board of trustees and voters of a school
2-8 district shall determine district needs concerning construction,
2-9 acquisition, renovation, or improvement of instructional
2-10 facilities.
2-11 (h) [(g)] To receive state assistance under this subchapter,
2-12 a school district must apply to the commissioner in accordance with
2-13 rules adopted by the commissioner before issuing bonds that will be
2-14 paid with state assistance. Until the bonds are fully paid or the
2-15 instructional facility is sold:
2-16 (1) a school district is entitled to continue
2-17 receiving state assistance without reapplying to the commissioner;
2-18 and
2-19 (2) the guaranteed level of state and local funds per
2-20 student per cent of tax effort applicable to the bonds may not be
2-21 reduced below the level provided for the year in which the bonds
2-22 were issued.
2-23 SECTION 2. Section 46.032, Education Code, is amended by
2-24 adding Subsection (c) to read as follows:
2-25 (c) The amount of taxes budgeted to be collected by the
2-26 district for payment of eligible bonds under Subsection (a) may
3-1 include:
3-2 (1) bond taxes collected in the current school year;
3-3 (2) bond taxes collected in a preceding school year in
3-4 excess of the amount necessary to pay the district's share of
3-5 actual debt service on bonds in that year;
3-6 (3) maintenance and operations taxes collected in the
3-7 current school year or the preceding school year in excess of the
3-8 amount used to generate other state financial assistance for the
3-9 district; or
3-10 (4) any other local money, including donations and
3-11 grants, not obtained from a governmental source or used to generate
3-12 other state financial assistance for the district.
3-13 SECTION 3. This Act takes effect September 1, 2001.