79R3162 BDH-D

By:  Oliveira                                                     H.B. No. 689



A BILL TO BE ENTITLED

AN ACT

relating to funding for public education instructional facilities.            
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 46.003, Education Code, is amended by 
amending Subsections (a) and (b) and adding Subsection (i) to read 
as follows:
	(a)  For each year, except as provided by Section [Sections] 
46.005 [and 46.006], a school district is guaranteed a specified 
amount per student in state and local funds for each cent of tax 
effort, up to the maximum rate under Subsection (b), to pay the 
principal of and interest on eligible bonds issued to construct, 
acquire, renovate, or improve an instructional facility.  The 
amount of state support is determined by the formula:

FYA = (FYL X ADA X BTR X 100) - (BTR X (DPV/100))

where:                                                                        
	"FYA" is the guaranteed facilities yield amount of state 
funds allocated to the district for the year;
	"FYL" is the dollar amount guaranteed level of state and 
local funds per student per cent of tax effort, which is the amount 
of district tax revenue per cent of tax effort available to a school 
district at the 98th percentile in wealth per student, as 
determined by the commissioner [$35 or a greater amount for any year 
provided by appropriation];
	"ADA" is the greater of the number of students in average 
daily attendance, as determined under Section 42.005, in the 
district or 400;
	"BTR" is the district's bond tax rate for the current year, 
which is determined by dividing the amount budgeted by the district 
for payment of eligible bonds by the quotient of the district's 
taxable value of property as determined under Subchapter M, Chapter 
403, Government Code, or, if applicable, Section 42.2521, divided 
by 100; and
	"DPV" is the district's taxable value of property as 
determined under Subchapter M, Chapter 403, Government Code, or, if 
applicable, Section 42.2521.
	(b)  The bond tax rate under Subsection (a) may not exceed 
the lesser of:
		(1)  the rate that would be necessary for the current 
year, using state funds under Subsection (a), to make payments of 
principal and interest on the bonds for which the tax is pledged; or
		(2)  $0.15 for each $100 of taxable value of property in 
the district.
	(i)  In this section, "wealth per student" means a school 
district's taxable value of property as determined under Subchapter 
M, Chapter 403, Government Code, or, if applicable, Section 
42.2521, divided by the district's average daily attendance as 
determined under Section 42.005.
	SECTION 2.  Chapter 46, Education Code, is amended by adding 
Subchapter D to read as follows:

SUBCHAPTER D.  ASSISTANCE WITH OTHER DEBT
	Sec. 46.081.  STATE PAYMENT OF CERTAIN DEBT.  If a school 
district's total bond tax rate for the 2004 tax year exceeded $0.15 
for each $100 of taxable value of property in the district for the 
2005-2006 school year and each subsequent school year, the district 
is entitled to additional state assistance in the amount necessary 
to reduce the district's tax rate for payment of bonds outstanding 
on January 1, 2005, to $0.15 for each $100 of taxable value of 
property.
	Sec. 46.082.  PAYMENT OF ASSISTANCE.  Section 46.009 applies 
to the payment of assistance under this subchapter.
	SECTION 3.  Section 46.006, Education Code, is repealed.                       
	SECTION 4.  This Act takes effect September 1, 2005.