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.