1-1 By: Cain S.B. No. 1728
1-2 (In the Senate - Filed March 9, 2001; March 14, 2001, read
1-3 first time and referred to Committee on Education; April 20, 2001,
1-4 reported adversely, with favorable Committee Substitute by the
1-5 following vote: Yeas 8, Nays 0; April 20, 2001, sent to printer.)
1-6 COMMITTEE SUBSTITUTE FOR S.B. No. 1728 By: Cain
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to payment sources for a school district's local share of
1-10 debt service for which the district receives state assistance.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Section 46.003, Education Code, is amended by
1-13 amending Subsections (d) through (g) and adding Subsection (h) to
1-14 read as follows:
1-15 (d) The amount of taxes budgeted to be collected by the
1-16 district for payment of eligible bonds under Subsection (a) may
1-17 include:
1-18 (1) bond taxes collected in the current school year;
1-19 (2) bond taxes collected in a preceding school year in
1-20 excess of the amount necessary to pay the district's share of
1-21 actual debt service on bonds in that year;
1-22 (3) maintenance and operations taxes collected in the
1-23 current school year or the preceding school year in excess of the
1-24 amount used to generate other state financial assistance for the
1-25 district; or
1-26 (4) any other local money, including donations and
1-27 grants, not obtained from a governmental source or used to generate
1-28 other state financial assistance for the district.
1-29 (e) Bonds are eligible to be paid with state and local funds
1-30 under this section if:
1-31 (1) taxes to pay the principal of and interest on the
1-32 bonds were first levied in the 1997-1998 school year or a later
1-33 school year; and
1-34 (2) the bonds do not have a weighted average maturity
1-35 of less than eight years.
1-36 (f) [(e)] A district may use state funds received under this
1-37 section only to pay the principal of and interest on the bonds for
1-38 which the district received the funds.
1-39 (g) [(f)] The board of trustees and voters of a school
1-40 district shall determine district needs concerning construction,
1-41 acquisition, renovation, or improvement of instructional
1-42 facilities.
1-43 (h) [(g)] To receive state assistance under this subchapter,
1-44 a school district must apply to the commissioner in accordance with
1-45 rules adopted by the commissioner before issuing bonds that will be
1-46 paid with state assistance. Until the bonds are fully paid or the
1-47 instructional facility is sold:
1-48 (1) a school district is entitled to continue
1-49 receiving state assistance without reapplying to the commissioner;
1-50 and
1-51 (2) the guaranteed level of state and local funds per
1-52 student per cent of tax effort applicable to the bonds may not be
1-53 reduced below the level provided for the year in which the bonds
1-54 were issued.
1-55 SECTION 2. Section 46.032, Education Code, is amended by
1-56 adding Subsection (c) to read as follows:
1-57 (c) The amount of taxes budgeted to be collected by the
1-58 district for payment of eligible bonds under Subsection (a) may
1-59 include:
1-60 (1) bond taxes collected in the current school year;
1-61 (2) bond taxes collected in a preceding school year in
1-62 excess of the amount necessary to pay the district's share of
1-63 actual debt service on bonds in that year;
1-64 (3) maintenance and operations taxes collected in the
2-1 current school year or the preceding school year in excess of the
2-2 amount used to generate other state financial assistance for the
2-3 district; or
2-4 (4) any other local money, including donations and
2-5 grants, not obtained from a governmental source or used to generate
2-6 other state financial assistance for the district.
2-7 SECTION 3. This Act takes effect September 1, 2001.
2-8 * * * * *