By Hill H.B. No. 1762
76R5979 ESH-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the issuance and sale of bonds and time warrants by
1-3 school districts and the issuance of obligations and execution of
1-4 credit agreements by certain school districts and junior college
1-5 districts.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. Section 45.001, Education Code, is amended to
1-8 read as follows:
1-9 Sec. 45.001. BONDS AND BOND TAXES. (a) The governing board
1-10 of an independent school district, including the city council or
1-11 commission that has jurisdiction over a municipally controlled
1-12 independent school district, the governing board of a rural high
1-13 school district, and the commissioners court of a county, on behalf
1-14 of each common school district under its jurisdiction, may:
1-15 (1) issue negotiable coupon bonds for:
1-16 (A) the construction, acquisition, and equipment
1-17 of school buildings in the district;
1-18 (B) the acquisition of property or the
1-19 refinancing of property financed under a contract entered under
1-20 Subchapter A, Chapter 271, Local Government Code, regardless of
1-21 whether payment obligations under the contract are due in the
1-22 current year or a future year; and
1-23 (C) the purchase of the necessary sites for
1-24 school buildings;[,] and
2-1 (2) may levy, pledge, assess, and collect annual ad
2-2 valorem taxes sufficient to pay the principal of and interest on
2-3 the bonds as the principal and interest become due, subject to
2-4 Section 45.003.
2-5 (b) The bonds must mature serially or otherwise not more
2-6 than 40 years from their date. The bonds may be made redeemable
2-7 before maturity.
2-8 (c) Bonds may be sold at public or private sale as
2-9 determined by the governing board of the district [All bonds must
2-10 be sold to the highest bidder for not less than their par value and
2-11 accrued interest].
2-12 SECTION 2. Subchapter A, Chapter 45, Education Code, is
2-13 amended by adding Section 45.0011 to read as follows:
2-14 Sec. 45.0011. CREDIT AGREEMENTS IN CERTAIN SCHOOL DISTRICTS.
2-15 (a) This section applies only to an independent school district
2-16 that, at the time of the issuance of obligations and execution of
2-17 credit agreements under this section, has:
2-18 (1) at least 2,000 students in average daily
2-19 attendance, as determined under Section 42.005; or
2-20 (2) a combined aggregate principal amount of at least
2-21 $50 million of outstanding bonds and voted but unissued bonds.
2-22 (b) A district to which this section applies may, in the
2-23 issuance of bonds as provided by Sections 45.001 and 45.003(b)(1),
2-24 exercise the powers granted to the governing body of an issuer with
2-25 regard to the issuance of obligations and execution of credit
2-26 agreements under Chapter 656, Acts of the 68th Legislature, Regular
2-27 Session, 1983 (Article 717q, Vernon's Texas Civil Statutes).
3-1 (c) A proposition to issue bonds to which this section
3-2 applies must, in addition to meeting the requirements of Section
3-3 45.003(b)(1), include the question of whether the governing board
3-4 or commissioners court may levy, pledge, assess, and collect annual
3-5 ad valorem taxes, on all taxable property in the district,
3-6 sufficient, without limit as to rate or amount, to pay the
3-7 principal of and interest on the bonds and the costs of any credit
3-8 agreements executed in connection with the bonds.
3-9 (d) Section 6, Chapter 656, Acts of the 68th Legislature,
3-10 Regular Session, 1983 (Article 717q, Vernon's Texas Civil
3-11 Statutes), governs approval by the attorney general of obligations
3-12 issued under the authority of this section.
3-13 SECTION 3. Sections 45.103(a) and (b), Education Code, are
3-14 amended to read as follows:
3-15 (a) Any school district in need of funds to construct,
3-16 repair, or renovate school buildings, purchase school buildings and
3-17 school equipment, or equip school properties with necessary
3-18 heating, water, sanitation, lunchroom, or electric facilities or in
3-19 need of funds with which to employ a person who has special skill
3-20 and experience to compile taxation data and that is financially
3-21 unable out of available funds to construct, repair, renovate, or
3-22 [make the repairs or renovations of school buildings,] purchase
3-23 school buildings, purchase school equipment, or equip school
3-24 properties with necessary heating, water, sanitation, lunchroom, or
3-25 electric facilities or is unable to pay the person for compiling
3-26 taxation data, may, subject to this section, issue interest-bearing
3-27 time warrants, in amounts sufficient to construct, [make the]
4-1 purchase, equip, or improve school buildings and facilities
4-2 [improvements] or to pay all or part of the compensation of the
4-3 person to compile taxation data, any law to the contrary
4-4 notwithstanding. The warrants shall mature in serial installments
4-5 of not more than five years from their date of issue. The warrants
4-6 on maturity may be payable out of any available funds of the school
4-7 district in the order of their maturity dates. Any
4-8 interest-bearing time warrants may be issued and sold by the
4-9 district for not less than their face value, and the proceeds used
4-10 to provide funds required for the purpose for which they are
4-11 issued. The warrants shall be entitled to first payment out of any
4-12 available funds of the district as they become due. Included in
4-13 the purposes for which interest-bearing time warrants may be issued
4-14 is the payment of any amounts owed by the school district that was
4-15 incurred in carrying out any of those purposes.
4-16 (b) Interest-bearing time warrants may not be issued or sold
4-17 by a common school district or rural high school district until
4-18 they are approved by the county board of school trustees. The
4-19 board shall, on application of the school district, inquire into
4-20 the financial conditions and needs of the district, and may not
4-21 approve the issuance of interest-bearing time warrants unless in
4-22 its opinion the district:
4-23 (1) is in need of constructing, purchasing, repairing,
4-24 or renovating a school building, obtaining the school equipment, or
4-25 equipping school properties with necessary heating, water,
4-26 sanitation, lunchroom, or electric facilities; and
4-27 (2) will be able with the resources in prospect to
5-1 liquidate the warrants at their maturity.
5-2 SECTION 4. Subchapter G, Chapter 130, Education Code, is
5-3 amended by adding Section 130.1221 to read as follows:
5-4 Sec. 130.1221. CREDIT AGREEMENTS IN CERTAIN JUNIOR COLLEGE
5-5 DISTRICTS. (a) This section applies only to a junior college
5-6 district that, at the time of the issuance of obligations and
5-7 execution of credit agreements under this section, has:
5-8 (1) at least 2,000 full-time students or the
5-9 equivalent; or
5-10 (2) a combined aggregate principal amount of at least
5-11 $50 million of outstanding bonds and voted but unissued bonds.
5-12 (b) A district to which this section applies may, in the
5-13 issuance of bonds as provided by Section 130.122, exercise the
5-14 powers granted to the governing body of an issuer with regard to
5-15 the issuance of obligations and execution of credit agreements
5-16 under Chapter 656, Acts of the 68th Legislature, Regular Session,
5-17 1983 (Article 717q, Vernon's Texas Civil Statutes).
5-18 (c) A proposition to issue bonds to which this section
5-19 applies must include the question of whether the governing board
5-20 may levy, pledge, assess, and collect annual ad valorem taxes
5-21 sufficient to pay the principal of and interest on the bonds and
5-22 the costs of any credit agreements executed in connection with the
5-23 bonds.
5-24 (d) Section 6, Chapter 656, Acts of the 68th Legislature,
5-25 Regular Session, 1983 (Article 717q, Vernon's Texas Civil
5-26 Statutes), governs approval by the attorney general of obligations
5-27 issued under the authority of this section.
6-1 SECTION 5. The importance of this legislation and the
6-2 crowded condition of the calendars in both houses create an
6-3 emergency and an imperative public necessity that the
6-4 constitutional rule requiring bills to be read on three several
6-5 days in each house be suspended, and this rule is hereby suspended,
6-6 and that this Act take effect and be in force from and after its
6-7 passage, and it is so enacted.