| 1 | 1 | | By: Shapiro S.B. No. 587 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the eligibility of school districts for state |
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| 7 | 7 | | assistance with payment of existing debt. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Section 46.033, Education Code, is amended to |
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| 10 | 10 | | read as follows: |
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| 11 | 11 | | Sec. 46.033. ELIGIBLE BONDS. Bonds, including bonds issued |
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| 12 | 12 | | under Section 45.006, are eligible to be paid with state and local |
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| 13 | 13 | | funds under this subchapter if: |
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| 14 | 14 | | (1) the district made payments on the bonds during the |
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| 15 | 15 | | 2008-2009 [2006-2007] school year or taxes levied to pay the |
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| 16 | 16 | | principal of and interest on the bonds were included in the |
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| 17 | 17 | | district's audited debt service collections for that school year; |
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| 18 | 18 | | and |
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| 19 | 19 | | (2) the district does not receive state assistance |
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| 20 | 20 | | under Subchapter A for payment of the principal and interest on the |
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| 21 | 21 | | bonds. |
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| 22 | 22 | | SECTION 2. Subsection (c), Section 46.034, Education Code, |
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| 23 | 23 | | is amended to read as follows: |
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| 24 | 24 | | (c) If the amount required to pay the principal of and |
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| 25 | 25 | | interest on eligible bonds in a school year is less than the amount |
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| 26 | 26 | | of payments made by the district on the bonds during the 2008-2009 |
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| 27 | 27 | | [2006-2007] school year or the district's audited debt service |
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| 28 | 28 | | collections for that school year, the district may not receive aid |
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| 29 | 29 | | in excess of the amount that, when added to the district's local |
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| 30 | 30 | | revenue for the school year, equals the amount required to pay the |
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| 31 | 31 | | principal of and interest on the bonds. |
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| 32 | 32 | | SECTION 3. This Act takes effect September 1, 2009. |
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