1-1     By:  Truitt, et al. (Senate Sponsor - Shapiro)        H.B. No. 2888
 1-2           (In the Senate - Received from the House May 3, 2001;
 1-3     May 4, 2001, read first time and referred to Committee on
 1-4     Education; May 8, 2001, reported favorably by the following vote:
 1-5     Yeas 7, Nays 0; May 8, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to limitations on the issuance of tax-supported bonds by
 1-9     school districts.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1. Subchapter A, Chapter 45, Education Code, is
1-12     amended by adding Section 45.0031 to read as follows:
1-13           Sec. 45.0031.  LIMITATION ON ISSUANCE OF TAX-SUPPORTED BONDS.
1-14     (a)  Before issuing bonds described by Section 45.001, a school
1-15     district must demonstrate to the attorney general under Subsection
1-16     (b) or (c) that, with respect to the proposed issuance, the
1-17     district has a projected ability to pay the principal of and
1-18     interest on the proposed bonds and all previously issued bonds
1-19     other than bonds authorized to be issued at an election held on or
1-20     before April 1, 1991, and issued before September 1, 1992, from a
1-21     tax at a rate not to exceed $0.50 per $100 of valuation.
1-22           (b)  A district may demonstrate the ability to comply with
1-23     Subsection (a)  by using the most recent taxable value of property
1-24     in the district, combined with state assistance to which the
1-25     district is entitled under Chapter 42 or 46 that may be lawfully
1-26     used for the payment of bonds.
1-27           (c)  A district may demonstrate the ability to comply with
1-28     Subsection (a)  by using a projected future taxable value of
1-29     property in the district anticipated for the earlier of the tax
1-30     year five years after the current tax year or the tax year in which
1-31     the final payment is due for the bonds submitted to the attorney
1-32     general, combined with state assistance to which the district is
1-33     entitled under Chapter 42 or 46 that may be lawfully used for the
1-34     payment of bonds.  The district must submit to the attorney general
1-35     a certification of the district's projected taxable value of
1-36     property that is prepared by a registered professional appraiser
1-37     certified under The Property Taxation Professional Certification
1-38     Act (Article 8885, Revised Statutes) who has demonstrated
1-39     professional experience in projecting taxable values of property or
1-40     who can by contract obtain any necessary assistance from a person
1-41     who has that experience. To demonstrate the professional experience
1-42     required by this subsection, a registered professional appraiser
1-43     must provide to the district written documentation relating to two
1-44     previous projects for which the appraiser projected taxable values
1-45     of property.  Until the bonds submitted to the attorney general are
1-46     approved or disapproved, the district must maintain the
1-47     documentation and on request provide the documentation to the
1-48     attorney general or comptroller. The certification of the
1-49     district's projected taxable value of property must be signed by
1-50     the district's superintendent.  The attorney general must base a
1-51     determination of whether the district has complied with Subsection
1-52     (a)  on a taxable value of property that is equal to 90 percent of
1-53     the value certified under this subsection.
1-54           (d)  A district that demonstrates to the attorney general
1-55     that the district's ability to comply with Subsection (a)  is
1-56     contingent on receiving state assistance may not adopt a tax rate
1-57     for a year for purposes of paying the principal of and interest on
1-58     the bonds unless the district credits to the account of the
1-59     interest and sinking fund of the bonds the amount of state
1-60     assistance equal to the amount needed to demonstrate compliance and
1-61     received or to be received in that year.
1-62           (e)  If a district demonstrates to the attorney general the
1-63     district's ability to comply with Subsection (a)  using a projected
1-64     future taxable value of property under Subsection (c) and
 2-1     subsequently imposes a tax to pay the principal of and interest on
 2-2     bonds to which Subsection (a) applies at a rate that exceeds the
 2-3     limit imposed by Subsection (a), the attorney general may not
 2-4     approve a subsequent issuance of bonds unless the attorney general
 2-5     finds that the district has a projected ability to pay the
 2-6     principal of and interest on the proposed bonds and all previously
 2-7     issued bonds to which Subsection (a)  applies from a tax at a rate
 2-8     not to exceed $0.45 per $100 of valuation.
 2-9           SECTION 2.  Section 45.003(e), Education Code, is repealed.
2-10           SECTION 3. Section 45.0031, Education Code, as added by this
2-11     Act, applies only to school district bonds submitted to the
2-12     attorney general for approval on or after the effective date of
2-13     this Act.  Bonds submitted to the attorney general for approval
2-14     before the effective date of this Act are governed by the law in
2-15     effect on the date the bonds are submitted for approval, and the
2-16     former law is continued in effect for that purpose.
2-17           SECTION 4. This Act takes effect immediately if it receives a
2-18     vote of two-thirds of all the members elected to each house, as
2-19     provided by Section 39, Article III, Texas Constitution.  If this
2-20     Act does not receive the vote necessary for immediate effect, this
2-21     Act takes effect September 1, 2001.
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