H.B. 2826 78(R)    BILL ANALYSIS


H.B. 2826
By: Eissler
Local Government Ways and Means
Committee Report (Unamended)


BACKGROUND AND PURPOSE 

The Legislature is authorized by Article VII, Section 3 of the Texas
Constitution to enact laws providing authority for school districts to
levy an ad valorem tax for maintenance and operations purposes and a
separate tax for the payment of school district bonds.  The maintenance
tax has generally been limited by various acts of the Legislature to $1.50
per $100 of assessed valuation. The debt service tax is generally
unlimited as to rate, but under current provisions of Chapter 45 of the
Education Code the levy of the debt service tax must be voted specifically
to support a particular bond issue for a specified project or projects.
House Bill 2826 would, pursuant to the authority of Article VII, Section 3
of the Texas Constitution, give school districts the authority to seek
voter approval for the levy of a continuing, limited tax of up to $0.10
per $100 of assessed valuation.  If approved by the voters of a district,
the tax could only be levied to support bonds issued for school
construction, renovation, equipment and land acquisition, or to refund
debt obligations issued or incurred for these purposes (which are the
authorized purposes for which school districts may issue unlimited
tax-supported bonds).  The distinguishing aspect of the limited tax
authorized by House Bill 2826 is that it would be continuous.  That is, if
the district were to retire debt supported by the tax, the district could
issue additional debt supported by the limited tax without seeking
additional voter authorization. This limited tax would provide some
flexibility to school districts to fund projects, much in the way that
municipalities and counties are authorized to issue various types of debt
obligations under the Constitution and existing enabling legislation,
without seeking voter approval in each instance of debt issuance. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

SECTION 1.  House Bill 2826 adds a new Section 45.0013 to the Education
Code to authorize the board of trustees of a school district to call an
election to seek voter approval to levy a continuing, limited ad valorem
tax for the purpose of paying debt service on bonds issued for a project
authorized by Section 45.001 Education Code. The ability of a school
district to seek such authorization does not restrict the right of the
board of trustees to seek voter approval for the issuance of bonds under
existing Section 45.003(b) Education Code. 

SECTION 2.   The Bill amends Section 45.001, Education Code, by adding
subsection (b-1). The new subsection sets forth the specific language to
be printed on the ballot for an election called in accordance with Section
45.0013 Education Code.  In particular, the new subsection (b-1) requires
the board of trustees to specify a tax rate, which may not exceed $.10 per
$100 of assessed valuation, in the ballot language.  

SECTION 3.  The Bill provides that an election held under Section 45.0013,
Education Code, must be held on a uniform election date, provided that one
such election in each biennium may be held on a non-uniform election date,
as is the case for other bond elections and elections pertaining to the
maintenance tax authority of school districts. 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2003.