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
2-1 the final payment is due for the bonds submitted to the attorney
2-2 general, combined with state assistance to which the district is
2-3 entitled under Chapter 42 or 46 that may be lawfully used for the
2-4 payment of bonds. The district must submit to the attorney general
2-5 a certification of the district's projected taxable value of
2-6 property that is prepared by a registered professional appraiser
2-7 certified under The Property Taxation Professional Certification
2-8 Act (Article 8885, Revised Statutes) who has demonstrated
2-9 professional experience in projecting taxable values of property or
2-10 who can by contract obtain any necessary assistance from a person
2-11 who has that experience. To demonstrate the professional experience
2-12 required by this subsection, a registered professional appraiser
2-13 must provide to the district written documentation relating to two
2-14 previous projects for which the appraiser projected taxable values
2-15 of property. Until the bonds submitted to the attorney general are
2-16 approved or disapproved, the district must maintain the
2-17 documentation and on request provide the documentation to the
2-18 attorney general or comptroller. The certification of the
2-19 district's projected taxable value of property must be signed by
2-20 the district's superintendent. The attorney general must base a
2-21 determination of whether the district has complied with Subsection
2-22 (a) on a taxable value of property that is equal to 90 percent of
2-23 the value certified under this subsection.
2-24 (d) A district that demonstrates to the attorney general
2-25 that the district's ability to comply with Subsection (a) is
2-26 contingent on receiving state assistance may not adopt a tax rate
2-27 for a year for purposes of paying the principal of and interest on
3-1 the bonds unless the district credits to the account of the
3-2 interest and sinking fund of the bonds the amount of state
3-3 assistance equal to the amount needed to demonstrate compliance and
3-4 received or to be received in that year.
3-5 (e) If a district demonstrates to the attorney general the
3-6 district's ability to comply with Subsection (a) using a projected
3-7 future taxable value of property under Subsection (c) and
3-8 subsequently imposes a tax to pay the principal of and interest on
3-9 bonds to which Subsection (a) applies at a rate that exceeds the
3-10 limit imposed by Subsection (a), the attorney general may not
3-11 approve a subsequent issuance of bonds unless the attorney general
3-12 finds that the district has a projected ability to pay the
3-13 principal of and interest on the proposed bonds and all previously
3-14 issued bonds to which Subsection (a) applies from a tax at a rate
3-15 not to exceed $0.45 per $100 of valuation.
3-16 SECTION 2. Section 45.003(e), Education Code, is repealed.
3-17 SECTION 3. Section 45.0031, Education Code, as added by this
3-18 Act, applies only to school district bonds submitted to the
3-19 attorney general for approval on or after the effective date of
3-20 this Act. Bonds submitted to the attorney general for approval
3-21 before the effective date of this Act are governed by the law in
3-22 effect on the date the bonds are submitted for approval, and the
3-23 former law is continued in effect for that purpose.
3-24 SECTION 4. This Act takes effect immediately if it receives a
3-25 vote of two-thirds of all the members elected to each house, as
3-26 provided by Section 39, Article III, Texas Constitution. If this
3-27 Act does not receive the vote necessary for immediate effect, this
4-1 Act takes effect September 1, 2001.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2888 was passed by the House on May
2, 2001, by the following vote: Yeas 142, Nays 0, 2 present, not
voting.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 2888 was passed by the Senate on May
22, 2001, by a viva-voce vote.
_______________________________
Secretary of the Senate
APPROVED: __________________________
Date
__________________________
Governor