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.