By:  Nelson                                                       S.B. No. 133


A BILL TO BE ENTITLED

AN ACT

relating to public school district eligibility for state assistance 
under the existing debt allotment.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 46.033, Education Code, is amended to 
read as follows:   
	Sec. 46.033.  ELIGIBLE BONDS.  Bonds, including bonds issued 
under Section 45.006, are eligible to be paid with state and local 
funds under this subchapter if:
		(1)  the district made payments on the bonds during the 
school year that began in the second year of the preceding state 
fiscal biennium [2002-2003 school year] or taxes levied to pay the 
principal of and interest on the bonds were included in the 
district's audited debt service collections for that school year; 
and
		(2)  the district does not receive state assistance 
under Subchapter A for payment of the principal and interest on the 
bonds.
	SECTION 2.  Section  46.034(c), Education Code, is amended 
to read as follows:
	(c)  If the amount required to pay the principal of and 
interest on eligible bonds in a school year is less than the amount 
of payments made by the district on the bonds during the [2002-2003] 
school year that began in the second year of the preceding state 
fiscal biennium or the district's audited debt service collections 
for that school year, the district may not receive aid in excess of 
the amount that, when added to the district's local revenue for the 
school year, equals the amount required to pay the principal of and 
interest on the bonds.
	SECTION 3.  This Act takes effect September 1, 2005.