85R7102 GCB-F     By: Thompson of Brazoria H.B. No. 1788       A BILL TO BE ENTITLED   AN ACT   relating to state support for assistance with payment of existing   debt on certain bonds issued by school districts.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 46.032, Education Code, is amended by   amending Subsection (a) and adding Subsections (a-1) and (a-2) 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 provided by   Subsection (a-1)[, which is $35] or a greater amount for any year   provided by appropriation;          "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.          (a-1)  For purposes of Subsection (a), the dollar amount   guaranteed level of state and local funds per student per cent of   tax effort ("EDGL") is:                (1)  $35 for each cent of a district's combined tax   effort that does not exceed the rate of $0.20 per $100 of valuation;   and                (2)  $60 for each cent of a district's combined tax   effort that exceeds the tax effort described by Subdivision (1).          (a-2)  For purposes of Subsection (a-1):                (1)  "BTR" has the meaning assigned by Section 46.003;   and                (2)  "Combined tax effort" means the sum of a district's   EDTR and BTR.          SECTION 2.  Section 46.071(c), Education Code, is amended to   read as follows:          (c)  For the purpose of determining state aid under this   section, local interest and sinking revenue for debt service is   limited to revenue required to service debt eligible under this   chapter as of September 1, 2015, including refunding of that debt,   subject to Section 46.061.  [The limitation imposed by Section   46.034(a) does not apply for the purpose of determining state aid   under this section.]          SECTION 3.  Section 46.034(a), Education Code, is repealed.          SECTION 4.  Notwithstanding any other provision of Chapter   46, Education Code, a school district must use additional amounts   of state assistance received under Subchapter B, Chapter 46,   Education Code, as a result of changes made by this Act to Section   46.032, Education Code, to accelerate the maturity date of   previously issued bonds or to reduce the district's tax rate for   purposes of debt service.          SECTION 5.  This Act takes effect September 1, 2017.