By: Cain S.B. No. 1729
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to uses of the guaranteed yield component of the
1-3 Foundation School Program, treatment of lease payments under the
1-4 Public Property Finance Act, payment of lease contracts under the
1-5 Local Government Code and the Education Code, and the permanent
1-6 school fund guarantee under the Education Code.
1-7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-8 SECTION 1. Section 42.301, Education Code is amended to read
1-9 as follows:
1-10 Sec. 42.301. PURPOSE. The purpose of the guaranteed yield
1-11 component of the Foundation School Program is to provide each
1-12 school district with the opportunity to provide the basic program
1-13 and to supplement that program at a level of its own choice and
1-14 with access to additional funds for facilities. An allotment under
1-15 this subchapter may be used for any legal purpose including [other
1-16 than] capital outlay and [or] debt service. A school district may
1-17 not receive an allotment under this chapter for any tax effort that
1-18 receives an allotment under Chapter 46 of this code.
1-19 SECTION 2. Section 45.001, Education Code, is amended by
1-20 adding a new Subsection (d) to read as follows:
1-21 (d) The governing board of an independent school district,
1-22 including the city council or commission that has jurisdiction over
1-23 a municipally controlled independent school district, the governing
2-1 board of a rural high school district, and the commissioners court
2-2 of a county, on behalf of each common school district under its
2-3 jurisdiction, may levy, pledge, assess, and collect annual ad
2-4 valorem taxes sufficient to pay for the acquisition of or financing
2-5 of the construction, acquisition and equipment of school buildings
2-6 in the district, including the purchase of necessary sites for the
2-7 school buildings, financed under a contract entered under
2-8 Subchapter A, Chapter 271, Local Government Code, subject to
2-9 Section 45.003 of this chapter.
2-10 SECTION 3. Section 45.003, Education Code, is amended by
2-11 adding a new Subsection (f) to read as follows:
2-12 (f) A proposition submitted to authorize the payment of
2-13 obligation for the acquisition or financing of school buildings
2-14 under Section 45.001(d) may be submitted at any time prior to or
2-15 during the contract and must include the question of whether the
2-16 governing board or commissioners court may levy, pledge, assess,
2-17 and collect annual ad valorem taxes, on all taxable property in the
2-18 district, either:
2-19 (1) sufficient, without limit as to rate or amount, to
2-20 pay the obligations of the contract; or
2-21 (2) sufficient to pay the obligations of the contract,
2-22 provided that the annual aggregate bond taxes in the district may
2-23 never be more than the rate stated in the proposition.
2-24 SECTION 4. Section 45.052, Texas Education Code, is amended
2-25 to read as follows:
2-26 Sec. 45.052. On approval by the commissioner, bonds issued
3-1 under Subchapter A, including refunding bonds, or bonds or other
3-2 evidence of indebtedness issued under Sections 45.103, 45.104 or
3-3 45.108, or obligations to pay under lease-purchase agreements
3-4 entered into under Sec. 271.004, Local Government Code, are
3-5 guaranteed by the corpus of and income of the permanent school
3-6 fund.
3-7 SECTION 5. Section 271.004(e), Local Governmental Code, is
3-8 amended to read as follows:
3-9 Section 271.004(e). If the contract provides that payments
3-10 by the school district are to be made from maintenance taxes
3-11 previously approved by the voters of the school district and are
3-12 subject to annual appropriation or are paid from a source other
3-13 than ad valorem taxes, the payments under [the contract shall not
3-14 be considered payment of indebtedness under Section 26.04(c), Tax
3-15 Code] must be treated as debt as defined in Section 26.012(7), Tax
3-16 Code.
3-17 SECTION 6. This Act takes effect immediately if it receives
3-18 a vote of two-thirds of all members elected to each house, as
3-19 provided by Section 39, Article III, Texas Constitution. If this
3-20 Act does not receive the votes necessary for immediate effect, this
3-21 Act takes effect September 1, 2001.