By: Shapiro S.B. No. 389
 
 
 
   
 
 
A BILL TO BE ENTITLED
AN ACT
relating to the capacity of the permanent school fund bond
guarantee program.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Section 45.053, Education Code, is amended by
amending Subsections (a) and (b) and adding Subsection (d) to read
as follows:
       (a)  Except as provided by Subsection (d), the [The]
commissioner may not approve bonds for guarantee if the approval
would result in the total amount of outstanding guaranteed bonds
exceeding an amount equal to 2-1/2 times the cost value [or market
value, whichever is less,] of the permanent school fund, as
estimated by the board and certified by the state auditor.
       (b)  Each year, the state auditor shall analyze the status of
guaranteed bonds as compared to the cost value [and market value] of
the permanent school fund. Based on that analysis, the state
auditor shall certify whether the amount of bonds guaranteed is
within the limit prescribed by this section.
       (d)  The board by rule may increase the limit prescribed by
Subsection (a) to an amount not to exceed five times the cost value
of the permanent school fund, provided that the increased limit is
consistent with federal law and regulations and does not prevent
the bonds to be guaranteed from receiving the highest available
credit rating, as determined by the board. The board shall at least
annually consider whether to change any limit in accordance with
this subsection. This subsection may not be construed in a manner
that impairs, limits, or removes the guarantee of bonds that have
been approved by the commissioner.
       SECTION 2.  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, 2007.