By Truitt, Sadler, Grusendorf, Brimer, H.B. No. 2888 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to limitations on the issuance of tax-supported bonds by 1-3 school districts. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter A, Chapter 45, Education Code, is 1-6 amended by adding Section 45.0031 to read as follows: 1-7 Sec. 45.0031. LIMITATION ON ISSUANCE OF TAX-SUPPORTED BONDS. 1-8 (a) Before issuing bonds described by Section 45.001, a school 1-9 district must demonstrate to the attorney general under Subsection 1-10 (b) or (c) that, with respect to the proposed issuance, the 1-11 district has a projected ability to pay the principal of and 1-12 interest on the proposed bonds and all previously issued bonds 1-13 other than bonds authorized to be issued at an election held on or 1-14 before April 1, 1991, and issued before September 1, 1992, from a 1-15 tax at a rate not to exceed $0.50 per $100 of valuation. 1-16 (b) A district may demonstrate the ability to comply with 1-17 Subsection (a) by using the most recent taxable value of property 1-18 in the district, combined with state assistance to which the 1-19 district is entitled under Chapter 42 or 46 that may be lawfully 1-20 used for the payment of bonds. 1-21 (c) A district may demonstrate the ability to comply with 1-22 Subsection (a) by using a projected future taxable value of 1-23 property in the district anticipated for the earlier of the tax 1-24 year five years after the current tax year or the tax year in which 1-25 the final payment is due for the bonds submitted to the attorney 2-1 general, combined with state assistance to which the district is 2-2 entitled under Chapter 42 or 46 that may be lawfully used for the 2-3 payment of bonds. The district must submit to the attorney general 2-4 a certification of the district's projected taxable value of 2-5 property that is prepared by a registered professional appraiser 2-6 certified under The Property Taxation Professional Certification 2-7 Act (Article 8885, Revised Statutes) who has demonstrated 2-8 professional experience in projecting taxable values of property or 2-9 who can by contract obtain any necessary assistance from a person 2-10 who has that experience. To demonstrate the professional experience 2-11 required by this subsection, a registered professional appraiser 2-12 must provide to the district written documentation relating to two 2-13 previous projects for which the appraiser projected taxable values 2-14 of property. Until the bonds submitted to the attorney general are 2-15 approved or disapproved, the district must maintain the 2-16 documentation and on request provide the documentation to the 2-17 attorney general or comptroller. The certification of the 2-18 district's projected taxable value of property must be signed by 2-19 the district's superintendent. The attorney general must base a 2-20 determination of whether the district has complied with Subsection 2-21 (a) on a taxable value of property that is equal to 90 percent of 2-22 the value certified under this subsection. 2-23 (d) A district that demonstrates to the attorney general 2-24 that the district's ability to comply with Subsection (a) is 2-25 contingent on receiving state assistance may not adopt a tax rate 2-26 for a year for purposes of paying the principal of and interest on 2-27 the bonds unless the district credits to the account of the 3-1 interest and sinking fund of the bonds the amount of state 3-2 assistance equal to the amount needed to demonstrate compliance and 3-3 received or to be received in that year. 3-4 (e) If a district demonstrates to the attorney general the 3-5 district's ability to comply with Subsection (a) using a projected 3-6 future taxable value of property under Subsection (c) and 3-7 subsequently imposes a tax to pay the principal of and interest on 3-8 bonds to which Subsection (a) applies at a rate that exceeds the 3-9 limit imposed by Subsection (a), the attorney general may not 3-10 approve a subsequent issuance of bonds unless the attorney general 3-11 finds that the district has a projected ability to pay the 3-12 principal of and interest on the proposed bonds and all previously 3-13 issued bonds to which Subsection (a) applies from a tax at a rate 3-14 not to exceed $0.45 per $100 of valuation. 3-15 SECTION 2. Section 45.003(e), Education Code, is repealed. 3-16 SECTION 3. Section 45.0031, Education Code, as added by this 3-17 Act, applies only to school district bonds submitted to the 3-18 attorney general for approval on or after the effective date of 3-19 this Act. Bonds submitted to the attorney general for approval 3-20 before the effective date of this Act are governed by the law in 3-21 effect on the date the bonds are submitted for approval, and the 3-22 former law is continued in effect for that purpose. 3-23 SECTION 4. This Act takes effect immediately if it receives a 3-24 vote of two-thirds of all the members elected to each house, as 3-25 provided by Section 39, Article III, Texas Constitution. If this 3-26 Act does not receive the vote necessary for immediate effect, this 3-27 Act takes effect September 1, 2001.