HBA-TBM, CCH H.B. 1346 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1346
By: Tillery
Public Education
4/9/2001
Introduced



BACKGROUND AND PURPOSE 

Under current law, the existing debt tax rate (EDTR) for school districts
is prohibited from exceeding 12 cents per $100 valuation.  This cap has
left many districts of average or below average wealth with millions of
dollars in unequalized debt.  Removing the cap would allow school districts
the maximum credit for the amount of debt financed locally.  House Bill
1346 removes the cap on EDTR. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 1346 amends the Education Code to remove the provision that
prohibits the existing debt tax rate of a school district from exceeding 12
cents per $100 of valuation or a greater amount for any year provided by
appropriation.  The bill removes the provision that authorizes the
commissioner to provide assistance to school districts from funds available
in excess of the amount to which school districts are entitled for a school
year.   

EFFECTIVE DATE

September 1, 2001.