Enrolled Bill Summary

            Senate Bill 1091 amends the Education Code to allow school district governing boards to issue negotiable coupon bonds to finance acquisition of school buildings and property and to sell such bonds at a public or private sale, and it allows school districts to issue interest-bearing time warrants to finance construction or equipment of school buildings and facilities.

            Senate Bill 1091 also allows a school district or a junior college district that either has an average daily attendance or full-time equivalent enrollment of at least 2,000 students or has a total of $50 million in outstanding bonds and approved but unissued bonds to issue and sell short term obligations and execute credit agreements, subject to approval by the district's voters in an election held for that purpose and provided that the ballot proposition also asks voters whether the governing body may pledge and collect property taxes to service the debt incurred by the bond issue and any applicable credit agreement. The act places varying limits on the amount of short term debt a district may issue, based on the district's level of indebtedness and remaining bonding authority or its size.