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A BILL TO BE ENTITLED
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AN ACT
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relating to the capacity of the permanent school fund bond |
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guarantee program. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 45.053, Education Code, is amended by |
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amending Subsections (a) and (b) and adding Subsection (d) to read |
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as follows: |
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(a) Except as provided by Subsection (d), the [The] |
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commissioner may not approve bonds for guarantee if the approval |
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would result in the total amount of outstanding guaranteed bonds |
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exceeding an amount equal to 2-1/2 times the cost value [or market
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value, whichever is less,] of the permanent school fund, as |
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estimated by the board and certified by the state auditor. |
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(b) Each year, the state auditor shall analyze the status of |
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guaranteed bonds as compared to the cost value [and market value] of |
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the permanent school fund. Based on that analysis, the state |
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auditor shall certify whether the amount of bonds guaranteed is |
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within the limit prescribed by this section. |
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(d) The board by rule may increase the limit prescribed by |
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Subsection (a) to an amount not to exceed five times the cost value |
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of the permanent school fund, provided that the increased limit is |
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consistent with federal law and regulations and does not prevent |
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the bonds to be guaranteed from receiving the highest available |
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credit rating, as determined by the board. The board shall at least |
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annually consider whether to change any limit in accordance with |
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this subsection. This subsection may not be construed in a manner |
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that impairs, limits, or removes the guarantee of bonds that have |
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been approved by the commissioner. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |