By Bivins                                             S.B. No. 1766
         77R2692 ESH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the eligibility of school district bonds for payment
 1-3     with state and local funds under the existing debt tier of the
 1-4     school finance 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 read
 1-7     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.  This Act takes effect September 1, 2001.