Texas 2017 - 85th Regular

Texas House Bill HB1788 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	85R7102 GCB-F
2	2	By: Thompson of Brazoria H.B. No. 1788
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to state support for assistance with payment of existing
8	8	debt on certain bonds issued by school districts.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 46.032, Education Code, is amended by
11	11	amending Subsection (a) and adding Subsections (a-1) and (a-2) to
12	12	read as follows:
13	13	(a) Each school district is guaranteed a specified amount
14	14	per student in state and local funds for each cent of tax effort to
15	15	pay the principal of and interest on eligible bonds. The amount of
16	16	state support, subject only to the maximum amount under Section
17	17	46.034, is determined by the formula:
18	18	EDA = (EDGL X ADA X EDTR X 100) - (EDTR X (DPV/100))
19	19	where:
20	20	"EDA" is the amount of state funds to be allocated to the
21	21	district for assistance with existing debt;
22	22	"EDGL" is the dollar amount guaranteed level of state and
23	23	local funds per student per cent of tax effort provided by
24	24	Subsection (a-1)[, which is $35] or a greater amount for any year
25	25	provided by appropriation;
26	26	"ADA" is the number of students in average daily attendance,
27	27	as determined under Section 42.005, in the district;
28	28	"EDTR" is the existing debt tax rate of the district, which is
29	29	determined by dividing the amount budgeted by the district for
30	30	payment of eligible bonds by the quotient of the district's taxable
31	31	value of property as determined under Subchapter M, Chapter 403,
32	32	Government Code, or, if applicable, under Section 42.2521, divided
33	33	by 100; and
34	34	"DPV" is the district's taxable value of property as
35	35	determined under Subchapter M, Chapter 403, Government Code, or, if
36	36	applicable, under Section 42.2521.
37	37	(a-1) For purposes of Subsection (a), the dollar amount
38	38	guaranteed level of state and local funds per student per cent of
39	39	tax effort ("EDGL") is:
40	40	(1) $35 for each cent of a district's combined tax
41	41	effort that does not exceed the rate of $0.20 per $100 of valuation;
42	42	and
43	43	(2) $60 for each cent of a district's combined tax
44	44	effort that exceeds the tax effort described by Subdivision (1).
45	45	(a-2) For purposes of Subsection (a-1):
46	46	(1) "BTR" has the meaning assigned by Section 46.003;
47	47	and
48	48	(2) "Combined tax effort" means the sum of a district's
49	49	EDTR and BTR.
50	50	SECTION 2. Section 46.071(c), Education Code, is amended to
51	51	read as follows:
52	52	(c) For the purpose of determining state aid under this
53	53	section, local interest and sinking revenue for debt service is
54	54	limited to revenue required to service debt eligible under this
55	55	chapter as of September 1, 2015, including refunding of that debt,
56	56	subject to Section 46.061. [The limitation imposed by Section
57	57	46.034(a) does not apply for the purpose of determining state aid
58	58	under this section.]
59	59	SECTION 3. Section 46.034(a), Education Code, is repealed.
60	60	SECTION 4. Notwithstanding any other provision of Chapter
61	61	46, Education Code, a school district must use additional amounts
62	62	of state assistance received under Subchapter B, Chapter 46,
63	63	Education Code, as a result of changes made by this Act to Section
64	64	46.032, Education Code, to accelerate the maturity date of
65	65	previously issued bonds or to reduce the district's tax rate for
66	66	purposes of debt service.
67	67	SECTION 5. This Act takes effect September 1, 2017.