By Johnson H.B. No. 1797
74R4239 KKA-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to limitations on the issuance of interest-bearing time
1-3 warrants by a school district.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 20.43(c), Education Code, is amended to
1-6 read as follows:
1-7 (c) No school district in the State of Texas shall issue
1-8 such interest-bearing time warrants in excess of five percent of
1-9 the assessed valuation of the district, for the year in which such
1-10 interest-bearing time warrants are issued; nor shall the payment of
1-11 such interest-bearing time warrants in any one year exceed the
1-12 anticipated surplus income of the district for the year in which
1-13 the warrants are issued, based<. Based> on the budget of the
1-14 district for said year<, such anticipated income to be computed by
1-15 taking the entire expected income of such school district from
1-16 every source for the year in which such interest-bearing time
1-17 warrants are issued, less teachers' salaries, bus aid included in
1-18 the foundation fund, and that part of the local maintenance tax
1-19 earmarked for salaries and known in the Gilmer-Aiken Law as the
1-20 economic index or fund assignment>. The anticipated income
1-21 computation as herein defined shall be exclusive of all bond taxes.
1-22 No school district shall have outstanding at any one time warrants
1-23 totaling in excess of $500,000 <$120,000> under the provisions of
1-24 this section.
2-1 SECTION 2. The importance of this legislation and the
2-2 crowded condition of the calendars in both houses create an
2-3 emergency and an imperative public necessity that the
2-4 constitutional rule requiring bills to be read on three several
2-5 days in each house be suspended, and this rule is hereby suspended,
2-6 and that this Act take effect and be in force from and after its
2-7 passage, and it is so enacted.