|
Senate Bill 389 |
Senate Author: Shapiro |
|
Effective: 5-18-07 |
House Sponsor: McCall |
Bonds issued by school districts to finance capital construction or acquisitions require approval by the commissioner of education to be guaranteed by the corpus and income of the permanent school fund, but the Education Code restricts the total amount of bonds guaranteed by the fund to two-and-a-half times the fund's market value or its cost value, whichever is less. Senate Bill 389 amends the Education Code to set the maximum amount of bonds that can be approved by the commissioner for guarantee by the fund at two-and-a-half times the fund's market value and to allow the State Board of Education to increase the limit to an amount not to exceed five times the fund's cost value, provided that the increased limit is consistent with federal law and regulations and does not prevent the bonds to be guaranteed from receiving the highest available credit rating.