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A BILL TO BE ENTITLED
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AN ACT
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relating to the public school finance system. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 41.002(a), Education Code, is amended to |
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read as follows: |
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(a) A school district may not have a wealth per student that |
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exceeds: |
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(1) the wealth per student that generates the amount |
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of maintenance and operations tax revenue per weighted student |
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available to a district with maintenance and operations tax revenue |
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per cent of tax effort equal to the maximum amount provided per cent |
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under Section 42.101, for the district's maintenance and operations |
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tax effort equal to or less than the rate equal to 66 percent of [the
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product of the state compression percentage, as determined under
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Section 42.2516, multiplied by] the maintenance and operations tax |
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rate adopted by the district for the 2005 tax year; |
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(2) the wealth per student that generates the amount |
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of maintenance and operations tax revenue per weighted student |
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available to the Austin Independent School District, as determined |
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by the commissioner in cooperation with the Legislative Budget |
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Board, for the first six cents by which the district's maintenance |
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and operations tax rate exceeds the rate equal to 66 percent of [the
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product of the state compression percentage, as determined under
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Section 42.2516, multiplied by] the maintenance and operations tax |
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rate adopted by the district for the 2005 tax year, subject to |
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Section 41.093(b-1); or |
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(3) $319,500, for the district's maintenance and |
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operations tax effort that exceeds the first six cents by which the |
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district's maintenance and operations tax effort exceeds the rate |
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equal to 66 percent of [the product of the state compression
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percentage, as determined under Section 42.2516, multiplied by] the |
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maintenance and operations tax rate adopted by the district for the |
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2005 tax year. |
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SECTION 2. Section 41.093(b-1), Education Code, is amended |
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to read as follows: |
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(b-1) If the guaranteed level of state and local funds per |
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weighted student per cent of tax effort under Section |
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42.302(a-1)(1) for which state funds are appropriated for a school |
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year is an amount at least equal to the amount of revenue per |
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weighted student per cent of tax effort available to the Austin |
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Independent School District, as determined by the commissioner in |
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cooperation with the Legislative Budget Board, the commissioner, in |
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computing the amounts described by Subsections (a)(1) and (2) and |
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determining the cost of an attendance credit, shall exclude |
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maintenance and operations tax revenue resulting from the first six |
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cents by which a district's maintenance and operations tax rate |
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exceeds the rate equal to 66 percent of [the product of the state
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compression percentage, as determined under Section 42.2516,
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multiplied by] the maintenance and operations tax rate adopted by |
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the district for the 2005 tax year. |
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SECTION 3. Section 42.101(a), Education Code, is amended to |
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read as follows: |
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(a) For each student in average daily attendance, not |
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including the time students spend each day in special education |
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programs in an instructional arrangement other than mainstream or |
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career and technology education programs, for which an additional |
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allotment is made under Subchapter C, a district is entitled to an |
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allotment equal to the lesser of $4,265 [$4,765] or the amount that |
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results from the following formula: |
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A = $4,265 [$4,765] X (DCR/MCR) |
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where: |
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"A" is the allotment to which a district is entitled; |
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"DCR" is the district's compressed tax rate, which is 66 |
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percent of [the product of the state compression percentage, as
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determined under Section 42.2516, multiplied by] the maintenance |
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and operations tax rate adopted by the district for the 2005 tax |
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year; and |
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"MCR" is the state maximum compressed tax rate, which is 66 |
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percent of [the product of the state compression percentage, as
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determined under Section 42.2516, multiplied by] $1.50. |
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SECTION 4. Section 42.102, Education Code, is amended by |
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adding Subsection (c) to read as follows: |
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(c) Not later than January 1, 2013, the commissioner shall |
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report to the governor, lieutenant governor, speaker of the house |
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of representatives, and presiding officer of the standing committee |
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of each house of the legislature with primary jurisdiction over |
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public education regarding the effectiveness of the cost of |
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education adjustment. |
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SECTION 5. Section 42.25161(a), Education Code, is amended |
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to read as follows: |
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(a) The commissioner shall provide South Texas Independent |
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School District with the amount of state aid necessary to ensure |
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that the district receives an amount of state and local revenue per |
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student in weighted average daily attendance that is at least $120 |
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greater than the amount the district would have received per |
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student in weighted average daily attendance during the 2009-2010 |
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school year under this chapter, as it existed on January 1, 2009, at |
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a maintenance and operations tax rate equal to 66 percent of [the
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product of the state compression percentage multiplied by] the |
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maintenance and operations tax rate adopted by the district for the |
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2005 tax year, provided that the district imposes a maintenance and |
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operations tax at that rate. |
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SECTION 6. Section 42.252(a), Education Code, is amended to |
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read as follows: |
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(a) Each school district's share of the Foundation School |
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Program is determined by the following formula: |
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LFA = TR X DPV |
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where: |
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"LFA" is the school district's local share; |
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"TR" is a tax rate which for each hundred dollars of valuation |
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is an effective tax rate of the amount equal to 66 percent of [the
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product of the state compression percentage, as determined under
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Section 42.2516, multiplied by] the lesser of: |
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(1) $1.50; or |
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(2) the maintenance and operations tax rate adopted by |
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the district for the 2005 tax year; and |
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"DPV" is the taxable value of property in the school district |
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for the preceding tax year determined under Subchapter M, Chapter |
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403, Government Code. |
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SECTION 7. Section 42.302(a-1), Education Code, is amended |
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to read as follows: |
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(a-1) [In this section, "wealth per student" has the meaning
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assigned by Section 41.001.] For purposes of Subsection (a), the |
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dollar amount guaranteed level of state and local funds per |
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weighted student per cent of tax effort ("GL") for a school district |
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is: |
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(1) the greater of the amount of district tax revenue |
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per weighted student per cent of tax effort that would be available |
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to the Austin Independent School District, as determined by the |
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commissioner in cooperation with the Legislative Budget Board, if |
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the reduction of the limitation on tax increases as provided by |
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Section 11.26(a-1), (a-2), or (a-3), Tax Code, did not apply, or the |
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amount of district tax revenue per weighted student per cent of tax |
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effort used for purposes of this subdivision in the preceding |
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school year, for the first six cents by which the district's |
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maintenance and operations tax rate exceeds 66 percent of [the rate
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equal to the product of the state compression percentage, as
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determined under Section 42.2516, multiplied by] the maintenance |
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and operations tax rate adopted by the district for the 2005 tax |
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year; and |
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(2) $31.95, for the district's maintenance and |
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operations tax effort that exceeds the amount of tax effort |
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described by Subdivision (1). |
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SECTION 8. Sections 45.003(d) and (f), Education Code, are |
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amended to read as follows: |
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(d) A proposition submitted to authorize the levy of |
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maintenance taxes must include the question of whether the |
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governing board or commissioners court may levy, assess, and |
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collect annual ad valorem taxes for the further maintenance of |
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public schools, at a rate not to exceed the rate stated in the |
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proposition. For any year, the maintenance tax rate per $100 of |
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taxable value adopted by the district may not exceed $1.17 [the rate
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equal to the sum of $0.17 and the product of the state compression
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percentage, as
determined
under Section 42.2516, multiplied by
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$1.50]. |
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(f) Notwithstanding any other law, a district that levied a |
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maintenance tax for the 2005 tax year at a rate greater than $1.50 |
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per $100 of taxable value in the district as permitted by special |
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law may not levy a maintenance tax at a rate that exceeds the rate |
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per $100 of taxable value that is equal to the sum of $0.17 and 66 |
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percent of [the product of the state compression percentage, as
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determined under Section 42.2516, multiplied by] the rate of the |
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maintenance tax levied by the district for the 2005 tax year. |
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SECTION 9. Section 46.006(b), Education Code, is amended to |
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read as follows: |
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(b) A district's wealth per student is reduced for purposes |
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of this section if a district has had substantial student |
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enrollment growth in the preceding five-year period. The reduction |
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is in addition to any reduction under Subsection (a) and is computed |
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before the district's wealth per student is reduced under that |
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subsection, if applicable. A district's wealth per student is |
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reduced: |
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(1) by five percent, if the district has an enrollment |
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growth rate in that period that is 15 [10] percent or more but less |
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than 20 [15] percent; |
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(2) by 10 percent, if the district has an enrollment |
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growth rate in that period that is 20 [15] percent or more but less |
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than 35 [30] percent; or |
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(3) by 15 percent, if the district has an enrollment |
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growth rate in that period that is 35 [30] percent or more. |
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SECTION 10. Section 46.033, Education Code, is amended to |
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read as follows: |
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Sec. 46.033. ELIGIBLE BONDS. Bonds, including bonds issued |
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under Section 45.006, are eligible to be paid with state and local |
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funds under this subchapter if: |
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(1) the district made payments on the bonds during the |
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2010-2011 [final] school year [of the preceding state fiscal
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biennium] or taxes levied to pay the principal of and interest on |
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the bonds were included in the district's audited debt service |
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collections for that school year; and |
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(2) the district does not receive state assistance |
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under Subchapter A for payment of the principal and interest on the |
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bonds. |
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SECTION 11. Section 46.034(c), Education Code, is amended |
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to read as follows: |
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(c) If the amount required to pay the principal of and |
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interest on eligible bonds in a school year is less than the amount |
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of payments made by the district on the bonds during the 2010-2011 |
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school year [final school year of the preceding state fiscal
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biennium] or the district's audited debt service collections for |
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that school year, the district may not receive aid in excess of the |
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amount that, when added to the district's local revenue for the |
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school year, equals the amount required to pay the principal of and |
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interest on the bonds. |
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SECTION 12. The following provisions of the Education Code |
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are repealed: |
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(1) Section 41.0041; |
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(2) Section 42.2516; |
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(3) Section 42.2523(c); |
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(4) Section 42.2524(g); |
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(5) Section 42.253(c-1); |
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(6) Section 42.261; and |
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(7) Section 42.302(f). |
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SECTION 13. This Act takes effect September 1, 2011. |