|
Senate Bill 1480 |
Senate Author: Hughes |
|
Effective: 9-1-17 |
House Sponsor: Murphy et al. |
Senate Bill 1480 amends the Education Code to replace the cap on the total amount of charter district bonds the commissioner of education may approve for guarantee based on total available capacity of the guaranteed bond program with a cap based on the program's charter capacity. The bill provides for the transition to the capacity-based cap by setting out a schedule by which the total limitation on the amount of charter district bonds that could be guaranteed under the law is increased annually until that transition is completed. The bill authorizes the commissioner to consider certain additional factors when determining whether to approve charter district bonds for guarantee that are in addition to all applicable requirements prescribed by law. The bill specifies that the charter district bond guarantee reserve fund is managed by the State Board of Education (SBOE) in the same manner as the permanent school fund and authorizes the SBOE to invest money in that reserve fund subject to certain requirements. The bill increases from 10 percent to 20 percent the amount of the savings a charter district realizes as a result of the lower interest rate on the district's bonds due to the guarantee of the bonds by the permanent school fund that the district is required to remit to the commissioner; provides an exception to the remittance requirement; and removes the requirement that such a remittance be made annually.