78R4591 ESH-D


By:  Grusendorf, Marchant, Hill, Wilson,                          H.B. No. 604
 
    Heflin, et al.                                                           

Substitute the following for H.B. No. 604:                                    

By:  Madden                                                   C.S.H.B. No. 604



A BILL TO BE ENTITLED

AN ACT

relating to public school finance.                                            
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapters 41, 42, 45, and 46, Education Code, are 
repealed.       
	SECTION 2.  (a)  Except as otherwise provided by this 
section, an independent school district may not adopt a tax rate for 
the 2005 tax year.  Notwithstanding the repeal by this Act of 
Chapter 45, Education Code, an independent school district may, 
after September 1, 2005, collect and use delinquent ad valorem 
taxes imposed for the 2004 or an earlier tax year.
	(b)  The repeal by this Act of Chapters 42, 45, and 46, 
Education Code, does not impair any obligation created by the 
issuance of bonds, notes, lease-purchase agreements, or other 
evidences of indebtedness issued before September 1, 2005, in 
accordance with prior law, and all such evidences of indebtedness 
validly issued before that date remain valid, enforceable, and 
binding according to their terms and shall be paid from the sources 
pledged.
	(c)  Notwithstanding the repeal by this Act of Chapters 42, 
45, and 46, Education Code, a school district may levy and collect  
ad valorem taxes, rentals, rates, and charges to the extent 
necessary to pay the principal and interest of bonds, notes, 
lease-purchase agreements, or other evidences of indebtedness 
described by Subsection (b) of this section and may receive state 
assistance with such payments to the extent the district would have 
been entitled to receive the assistance under Chapter 42 or 46, 
Education Code, as those chapters existed before repeal by this 
Act, and the former law is continued in effect for that purpose.  
The commissioner of education may adopt rules to implement this 
section.
	(d)  Before September 1, 2005, the attorney general may not 
refuse to approve the issuance by a school district of a public 
security, as defined by Section 1202.001, Government Code, on the 
basis that the district's authority to levy ad valorem taxes or 
impose rentals, rates, and charges is repealed effective September 
1, 2005.
	SECTION 3.  This Act takes effect September 1, 2005.