78R5475 ESH-D


By:  Eissler                                                      H.B. No. 2826


A BILL TO BE ENTITLED
AN ACT
relating to a continuing ad valorem tax for the payment of bonds issued by a school district. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter A, Chapter 45, Education Code, is amended by adding Section 45.0013 to read as follows: Sec. 45.0013. CONTINUING TAX FOR PAYMENT OF BONDS. (a) The governing body of a school district may submit a proposition to the voters in the district to approve the levy of a continuing, annual ad valorem tax in the district to secure the payment of principal and interest on bonds issued for a purpose authorized by Section 45.001. (b) If a tax authorized by this section is approved by the voters, the school district may issue bonds payable from the tax and levy the tax without any additional election. The authority to levy a tax authorized by this section does not terminate when bonds secured by the tax finally mature or are discharged. (c) A tax authorized by this section may secure multiple bond issues, but the tax rate for all bonds secured by the tax and outstanding at any time may not exceed the rate approved by the voters. (d) The rate of a tax levied under this section may not exceed the rate necessary for the year in which the tax is levied to pay the principal and interest on outstanding bonds secured by the tax. (e) The approval of a tax authorized by this section does not restrict the authority of a school district to issue bonds in accordance with Section 45.003(b). SECTION 2. Section 45.003, Education Code, is amended by amending Subsections (b) and (c) and adding Subsection (b-1) to read as follows: (b) A proposition submitted to authorize the issuance of bonds under Section 45.001 must include the question of whether the governing board or commissioners court may levy, pledge, assess, and collect annual ad valorem taxes, on all taxable property in the district, either: (1) sufficient, without limit as to rate or amount, to pay the principal of and interest on the bonds; or (2) sufficient to pay the principal of and interest on the bonds, provided that the annual aggregate bond taxes in the district may never be more than the rate stated in the proposition. (b-1) The ballot for the approval of a tax authorized by Section 45.0013 shall permit voting for or against the proposition: "The levy of a continuing, annual debt service tax at an initial rate not to exceed (the rate stated in the proposition, which may not exceed $0.10 on the $100 valuation of taxable property) on the $100 valuation of taxable property in the district to secure the payment of bonds." (c) If bonds are ever voted in a district pursuant to Subsection (b)(1), then all bonds thereafter proposed pursuant to Subsection (b) must be submitted pursuant to Subsection (b)(1) [that subsection], and Subsection (b)(2) does not apply to the district. SECTION 3. Section 41.001(b), Election Code, is amended to read as follows: (b) Subsection (a) does not apply to: (1) a runoff election; (2) an election for the issuance or assumption of bonds for any purpose authorized by law relating to public schools or colleges, the levy of a continuing bond tax as provided under Section 45.0013, Education Code, or the levy of a tax for the maintenance of a public school or college, if the governing body of the political subdivision having jurisdiction of the public school or college issuing or assuming the bonds or levying the tax: (A) by resolution, order, or ordinance, finds that holding the election on a date other than a uniform election date is in the public interest, which finding is conclusive and incontestable; and (B) the election is the only election of the type described by this subdivision held by that political subdivision on a date other than a uniform election date during the state fiscal biennium; (3) an election to resolve a tie vote; (4) an election held under an order of a court or other tribunal; (5) an emergency election ordered under Section 41.0011; (6) an expedited election to fill a vacancy in the legislature held under Section 203.013; or (7) an election held under a statute that expressly provides that the requirement of Subsection (a) does not apply to the election. SECTION 4. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2003.