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.