SRC-TJG S.B. 1497 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1497
78R6815 MTB-DBy: Madla
Finance
4/7/2003
As Filed


DIGEST AND PURPOSE 

Under current law, in order for a school district to build a facility by
way of bonds, the school district must first go receive voter approval in
order to issue bonds.  As proposed, S.B. 1497 allows the Texas Public
Finance Authority to create a bond pool from which it would issue bonds
for participating school districts.  This bill also allows the Texas
Building and Procurement Commission to enter into an agreement to
construct a school facility from pre-approved blueprints for instructional
facilities. 

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Texas Building and
Procurement Commission in SECTION 3 (Section 2166.554, Government Code) of
this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 1232.066(a), Government Code, to add a school
district instructional facility to the authority of the board of directors
of the Texas Public Finance Authority (board). 

SECTION 2.  Amends Chapter 1232C, Government Code, by adding Section
1232.1025, as follows: 

Sec. 1232.1025.  ISSUANCE OF BONDS FOR SCHOOL DISTRICT INSTRUCTIONAL
FACILITIES.  (a) Requires the board to promptly issue and sell bonds in
the name of the Texas Public Finance Authority (TPFA) under this chapter
to finance the construction of a school district instructional facility
that has been authorized under Section 2166.554. 

(b) Requires the Texas Building and Procurement Commission (TBPC) to
accomplish its statutory authority as if the facility were a state office
building financed by legislative appropriation.  Requires the board and
TBPC to adopt a memorandum of understanding that defines the division of
authority between the board, TBPC, and the school district. 

(c) Provides that a school district, with respect to an instructional
facility financed under this section, is considered to be a state agency
leasing a state office building from TBPC for the purposes of this
chapter, including Subchapter D, except in circumstances under which this
chapter states that a building is considered to be state-owned space.
Requires the board to convey title to the school district in accordance
with Section 1232.006, when the school district has paid a sufficient
amount in rentals so that the principal of and interest on obligations
issued by TPFA relating to the instructional facility are fully paid and
the facility is free of all liens. 

SECTION 3.  Amends Chapter 2166L, Government Code, by adding Section
2166.554, as follows: 

Sec. 2166.554.  CONSTRUCTION OF FACILITIES FOR SCHOOL DISTRICTS.  (a)
Provides that this section applies only to a school district that does not
qualify for aid under Section 1402.124. 

(b) Authorizes TBPC to provide for the construction of the facility under
the procedures of this chapter if TBPC determines the request is feasible,
at the request of a school district for construction of an instructional
facility.  Requires the construction of the facility to be financed
through revenue bonds issued by the TPFC under Section 1232.1025.   

(c) Requires TBPC to offer the school district a choice of pre-approved
blueprints for instructional facilities from a list of choices created by
TBPC. 

(d) Requires TBPC to adopt rules to implement this section.

SECTION 4.  Effective date: September 1, 2003.