HBA-NRS S.B. 1766 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1766
By: Bivins
Public Education
4/26/2001
Engrossed



BACKGROUND AND PURPOSE 

The 76th Legislature created a guaranteed yield through the existing debt
allotment (EDA) for existing school district debt at $35 per unweighted
student yield. Due to budgetary concerns, only debt for which taxes were
collected through the 1998-1999 school year were eligible for the EDA.
During the interim, school districts continued to pass bond issues and
construct facilities, with a number of those districts receiving state aid
through the instructional facilities allotment (IFA). However, the IFA was
never intended to cover all new debt. Senate Bill 1766 updates the
eligibility for EDA to the 2000-2001 school year so that school districts
with new debt are eligible for the state guaranteed yield. 

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

Senate Bill 1766 amends the Education Code to provide that school bonds are
eligible to be paid with state and local funds under the existing debt
allotment if taxes levied to pay the principal of an interest on the bonds
were included in the district's audited debt service collections for the
2000-2001 school year rather than the 1998-1999 school year, and the
district does not receive state assistance under tax bonds and maintenance
taxes for payment of the principal and interest on the bonds. 

EFFECTIVE DATE

September 1, 2001.