By:  Bivins, Bernsen                                  S.B. No. 1766
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to payment of eligible school district bonds with state
 1-3     and local funds under the existing debt tier of the school finance
 1-4     system.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 46.033, Education Code, is amended to
 1-7     read as follows:
 1-8           Sec. 46.033.  ELIGIBLE BONDS.  Bonds, including bonds issued
 1-9     under Section 45.006, are eligible to be paid with state and local
1-10     funds under this subchapter if:
1-11                 (1)  taxes levied to pay the principal of and interest
1-12     on the bonds were included in the district's audited debt service
1-13     collections for the 2000-2001 [1998-1999] school year; and
1-14                 (2)  the district does not receive state assistance
1-15     under Subchapter A for payment of the principal and interest on the
1-16     bonds.
1-17           SECTION 2.  Subsection (c), Section 46.034, Education Code,
1-18     is amended to read as follows:
1-19           (c)  If the amount required to pay the principal of and
1-20     interest on eligible bonds in a school year is less than the
1-21     district's audited debt service collections for the 2000-2001
1-22     [1998-1999] school year, the district may not receive aid in excess
1-23     of the amount that, when added to the district's local revenue for
1-24     the school year, equals the amount required to pay the principal of
1-25     and interest on the bonds.
 2-1           SECTION 3.  This Act takes effect September 1, 2001.