HBA-MSH S.B. 1785 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1785
By: Nelson
Public Education
5/6/2001
Engrossed



BACKGROUND AND PURPOSE 

Currently, the commissioner of education is authorized to increase the
existing debt tax rate on an annual basis if the commissioner finds that
there are excess appropriated Foundation School Program funds. Accordingly,
the rate limit for the 2000-2001 school year has been set at 29 cents.
However, without a change in the statutory rate limit, the rate will
automatically revert to 12 cents after the current school year, resulting
in an increase in local debt service costs and higher property taxes in
2001-2002 and thereafter, which may contribute to school district planning
difficulties. Senate Bill 1785 raises the limit on the existing debt tax
rate from $0.12 to $0.29. 

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 1785 amends the Education Code to increase the limit on the
existing debt tax rate under the existing debt allotment from $0.12 to
$0.29 per $100 valuation or a greater amount for any year provided by
appropriation. 

EFFECTIVE DATE

September 1, 2001.