77R12065 ESH-F By Truitt, Sadler, Grusendorf H.B. No. 2888 Substitute the following for H.B. No. 2888: By Oliveira C.S.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 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 September 1, 2001. Bonds 3-20 submitted to the attorney general for approval before September 1, 3-21 2001, are governed by the law in effect on the date the bonds are 3-22 submitted for approval, and the former law is continued in effect 3-23 for that purpose. 3-24 SECTION 4. This Act takes effect September 1, 2001.