By: Villarreal H.B. No. 4200
A BILL TO BE ENTITLED
AN ACT
relating to state assistance to fund public school instructional
facilities in fast-growing school districts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 46.003(a), Education Code, is amended to
read as follows:
(a) For each year, except as provided by 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 $35 or a
greater amount for any year provided by appropriation or provided
for under Section 46.0031;
"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.
SECTION 2. Subchapter A, Chapter 46, Education Code, is
amended by adding Section 46.0031 to read as follows:
Sec. 46.0031. INCREASED ALLOTMENT AMOUNT FOR INSTRUCTIONAL
FACILITIES IN FAST-GROWING SCHOOL DISTRICTS. (a) This section
applies to state support to pay the principal and interest only on
eligible bonds as provided by Section 46.0031(d) that are issued by
fast-growing school districts.
(b) For the purposes of this section, a fast-growing school
district is a school district that has enrollment growth of 10
percent or more over the preceding five-year period.
(c) For a bond issue to which this section applies, the
dollar amount guaranteed level of state and local funds per student
per cent of tax effort ("FYL") is an amount equal to $50 or a greater
amount for any year provided by appropriation.
(d) Bonds are eligible to be paid with state and local funds
under this subchapter if:
(1) a school district is classified as fast-growing
under Subsection (b); and
(2) a school district applies in the 2008-09 school
year or subsequent school years to the commissioner in accordance
with rules adopted by the commissioner before issuing bonds that
will be paid with state assistance; and
(3) the district does not receive state assistance
under Subchapter B for payment of the principal and interest on the
bonds.
(e) A school district may use state funds received under
this section to pay the principal of and interest on refunding bonds
that were issued under the provisions of this section.
(f) Once bonds are determined to be eligible under this
section, a school district receives funding under Section remains
eligible for that funding level regardless of whether the school
district continues to meet the requirements of subsection (b).
SECTION 3. Section 46.032(a), Education Code, is amended to
read as follows:
(a) Each school district is guaranteed a specified amount
per student in state and local funds for each cent of tax effort to
pay the principal of and interest on eligible bonds. The amount of
state support, subject only to the maximum amount under Section
46.034, is determined by the formula:
EDA = (EDGL X ADA X EDTR X 100) - (EDTR X (DPV/100))
where:
"EDA" is the amount of state funds to be allocated to the
district for assistance with existing debt;
"EDGL" is the dollar amount guaranteed level of state and
local funds per student per cent of tax effort, which is $35 or a
greater amount for any year provided by appropriation or provided
for under Section 46.0321;
"ADA" is the number of students in average daily attendance,
as determined under Section 42.005, in the district;
"EDTR" is the existing debt tax rate of the district, 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, under 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, under Section 42.2521.
SECTION 4. Subchapter B, Chapter 46, Education Code, is
amended by adding Section 46.0321 to read as follows:
Sec. 46.0321. INCREASED ASSISTANCE FOR EXISTING DEBT IN
FAST-GROWING SCHOOL DISTRICTS. (a) This section applies to state
support to pay the principal and interest only on eligible bonds as
provided by Section 46.0031(d) issued by fast-growing school
districts.
(b) For the purposes of this section, a fast-growing school
district is a school district that has enrollment growth of 10
percent or more over the preceding five-year period.
(c) For eligible debt to which this section applies, the
dollar amount guaranteed level of state and local funds per student
per cent of tax effort ("FYL") under Section 46.032(a) is an amount
equal to $50 or a greater amount for any year provided by
appropriation.
(d) Bonds are eligible to be paid with state and local funds
under this subchapter if:
(1) the district made payments on the bonds during the
2008-09 school year or subsequent school years 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 or
subsequent school years; and
(2) the district does not receive state assistance
under Subchapter A for payment of the principal and interest on the
bonds.
(e) A school district may use state funds received under
this section to pay the principal of and interest on refunding bonds
for bonds that were initially eligible under the provisions of this
section.
(f) Once bonds are determined to be eligible under this
section, a school district receives funding under this section
remains eligible for that funding level regardless of whether the
school district continues to meet the requirements of subsection
(b).
SECTION 5. 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
[2006-2007] second school year of the previous state biennium 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 6. Section 46.034(a), Education Code, is amended to
read as follows:
Sec. 46.034. LIMITS ON ASSISTANCE. (a) The existing debt
tax rate ("EDTR") under Section 46.032 may not exceed [$0.29] $0.50
per $100 of valuation, or a greater amount for any year provided by
appropriation.
SECTION 7. This Act takes effect September 1, 2009.