By: Duncan S.B. No. 1091
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the issuance and sale of bonds and time warrants by
1-2 school districts and the issuance of obligations and execution of
1-3 credit agreements by certain school districts and junior college
1-4 districts.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 45.001, Education Code, is amended to
1-7 read as follows:
1-8 Sec. 45.001. BONDS AND BOND TAXES. (a) The governing board
1-9 of an independent school district, including the city council or
1-10 commission that has jurisdiction over a municipally controlled
1-11 independent school district, the governing board of a rural high
1-12 school district, and the commissioners court of a county, on behalf
1-13 of each common school district under its jurisdiction, may:
1-14 (1) issue negotiable coupon bonds for:
1-15 (A) the construction, acquisition, and equipment
1-16 of school buildings in the district;
1-17 (B) the acquisition of property or the
1-18 refinancing of property financed under a contract entered under
1-19 Subchapter A, Chapter 271, Local Government Code, regardless of
1-20 whether payment obligations under the contract are due in the
1-21 current year or a future year; and
1-22 (C) the purchase of the necessary sites for
1-23 school buildings;[,] and
1-24 (2) may levy, pledge, assess, and collect annual ad
2-1 valorem taxes sufficient to pay the principal of and interest on
2-2 the bonds as the principal and interest become due, subject to
2-3 Section 45.003.
2-4 (b) The bonds must mature serially or otherwise not more
2-5 than 40 years from their date. The bonds may be made redeemable
2-6 before maturity.
2-7 (c) Bonds may be sold at public or private sale as
2-8 determined by the governing board of the district [All bonds must
2-9 be sold to the highest bidder for not less than their par value and
2-10 accrued interest].
2-11 SECTION 2. Subchapter A, Chapter 45, Education Code, is
2-12 amended by adding Section 45.0011 to read as follows:
2-13 Sec. 45.0011. CREDIT AGREEMENTS IN CERTAIN SCHOOL DISTRICTS.
2-14 (a) This section applies only to an independent school district
2-15 that, at the time of the issuance of obligations and execution of
2-16 credit agreements under this section, has:
2-17 (1) at least 2,000 students in average daily
2-18 attendance; or
2-19 (2) a combined aggregate principal amount of at least
2-20 $50 million of outstanding bonds and voted but unissued bonds.
2-21 (b) A district to which this section applies may, in the
2-22 issuance of bonds as provided by Sections 45.001 and 45.003(b)(1),
2-23 exercise the powers granted to the governing body of an issuer with
2-24 regard to the issuance of obligations and execution of credit
2-25 agreements under Chapter 656, Acts of the 68th Legislature, Regular
2-26 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) A district may not issue bonds to which this section
3-10 applies in an amount greater than the greater of:
3-11 (1) 25 percent of the sum of:
3-12 (A) the aggregate principal amount of all
3-13 district debt payable from ad valorem taxes that is outstanding at
3-14 the time the bonds are issued; and
3-15 (B) the aggregate principal amount of all bonds
3-16 payable from ad valorem taxes that have been authorized but not
3-17 issued;
3-18 (2) $25 million, in a district that has at least 3,500
3-19 but not more than 15,000 students in average daily attendance; or
3-20 (3) $50 million, in a district that has more than
3-21 15,000 students in average daily attendance.
3-22 (e) In this section, average daily attendance is determined
3-23 in the manner provided by Section 42.005.
3-24 (f) Section 6, Chapter 656, Acts of the 68th Legislature,
3-25 Regular Session, 1983 (Article 717q, Vernon's Texas Civil
3-26 Statutes), governs approval by the attorney general of obligations
4-1 issued under the authority of this section.
4-2 SECTION 3. Subsections (a) and (b), Section 45.103,
4-3 Education Code, are amended to read as follows:
4-4 (a) Any school district in need of funds to construct,
4-5 repair, or renovate school buildings, purchase school buildings and
4-6 school equipment, or equip school properties with necessary
4-7 heating, water, sanitation, lunchroom, or electric facilities or in
4-8 need of funds with which to employ a person who has special skill
4-9 and experience to compile taxation data and that is financially
4-10 unable out of available funds to construct, repair, renovate, or
4-11 [make the repairs or renovations of school buildings,] purchase
4-12 school buildings, purchase school equipment, or equip school
4-13 properties with necessary heating, water, sanitation, lunchroom, or
4-14 electric facilities or is unable to pay the person for compiling
4-15 taxation data, may, subject to this section, issue interest-bearing
4-16 time warrants, in amounts sufficient to construct, [make the]
4-17 purchase, equip, or improve school buildings and facilities
4-18 [improvements] or to pay all or part of the compensation of the
4-19 person to compile taxation data, any law to the contrary
4-20 notwithstanding. The warrants shall mature in serial installments
4-21 of not more than five years from their date of issue. The warrants
4-22 on maturity may be payable out of any available funds of the school
4-23 district in the order of their maturity dates. Any
4-24 interest-bearing time warrants may be issued and sold by the
4-25 district for not less than their face value, and the proceeds used
4-26 to provide funds required for the purpose for which they are
5-1 issued. The warrants shall be entitled to first payment out of any
5-2 available funds of the district as they become due. Included in
5-3 the purposes for which interest-bearing time warrants may be issued
5-4 is the payment of any amounts owed by the school district that was
5-5 incurred in carrying out any of those purposes.
5-6 (b) Interest-bearing time warrants may not be issued or sold
5-7 by a common school district or rural high school district until
5-8 they are approved by the county board of school trustees. The
5-9 board shall, on application of the school district, inquire into
5-10 the financial conditions and needs of the district, and may not
5-11 approve the issuance of interest-bearing time warrants unless in
5-12 its opinion the district:
5-13 (1) is in need of constructing, purchasing, repairing,
5-14 or renovating a school building, obtaining the school equipment, or
5-15 equipping school properties with necessary heating, water,
5-16 sanitation, lunchroom, or electric facilities; and
5-17 (2) will be able with the resources in prospect to
5-18 liquidate the warrants at their maturity.
5-19 SECTION 4. Subchapter G, Chapter 130, Education Code, is
5-20 amended by adding Section 130.1221 to read as follows:
5-21 Sec. 130.1221. CREDIT AGREEMENTS IN CERTAIN JUNIOR COLLEGE
5-22 DISTRICTS. (a) This section applies only to a junior college
5-23 district that, at the time of the issuance of obligations and
5-24 execution of credit agreements under this section, has:
5-25 (1) at least 2,000 full-time students or the
5-26 equivalent; or
6-1 (2) a combined aggregate principal amount of at least
6-2 $50 million of outstanding bonds and voted but unissued bonds.
6-3 (b) A district to which this section applies may, in the
6-4 issuance of bonds as provided by Section 130.122, exercise the
6-5 powers granted to the governing body of an issuer with regard to
6-6 the issuance of obligations and execution of credit agreements
6-7 under Chapter 656, Acts of the 68th Legislature, Regular Session,
6-8 1983 (Article 717q, Vernon's Texas Civil Statutes).
6-9 (c) A proposition to issue bonds to which this section
6-10 applies must include the question of whether the governing board
6-11 may levy, pledge, assess, and collect annual ad valorem taxes
6-12 sufficient to pay the principal of and interest on the bonds and
6-13 the costs of any credit agreements executed in connection with the
6-14 bonds.
6-15 (d) A district may not issue bonds to which this section
6-16 applies in an amount greater than the greater of:
6-17 (1) 25 percent of the sum of:
6-18 (A) the aggregate principal amount of all
6-19 district debt payable from ad valorem taxes that is outstanding at
6-20 the time the bonds are issued; and
6-21 (B) the aggregate principal amount of all bonds
6-22 payable from ad valorem taxes that have been authorized but not
6-23 issued;
6-24 (2) $25 million, in a district that has at least 3,500
6-25 but not more than 15,000 full-time students or the equivalent; or
6-26 (3) $50 million, in a district that has more than
7-1 15,000 full-time students or the equivalent.
7-2 (e) Section 6, Chapter 656, Acts of the 68th Legislature,
7-3 Regular Session, 1983 (Article 717q, Vernon's Texas Civil
7-4 Statutes), governs approval by the attorney general of obligations
7-5 issued under the authority of this section.
7-6 SECTION 5. The importance of this legislation and the
7-7 crowded condition of the calendars in both houses create an
7-8 emergency and an imperative public necessity that the
7-9 constitutional rule requiring bills to be read on three several
7-10 days in each house be suspended, and this rule is hereby suspended,
7-11 and that this Act take effect and be in force from and after its
7-12 passage, and it is so enacted.