By: Shapiro S.B. No. 881

(In the Senate - Filed February 26, 2007; March 7, 2007, read first time and referred to Committee on Education; April 2, 2007, reported adversely, with favorable Committee Substitute by the following vote: Yeas 7, Nays 0, 1 present not voting; April 2, 2007, sent to printer.)

COMMITTEE SUBSTITUTE FOR S.B. No. 881 By: Shapiro

A BILL TO BE ENTITLED

AN ACT

relating to the limitation on the issuance of tax-supported bonds by a school district.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 45.0031, Education Code, is amended by adding Subsection (f) to read as follows:

(f) Before issuing bonds described by Section 45.001, in lieu of demonstrating to the attorney general the ability to comply with Subsection (a), a school district may demonstrate to the attorney general that:

(1) the district's current tax rate for all previously issued bonds, other than bonds authorized to be issued at an election held on or before April 1, 1991, and issued before September 1, 1992, is less than $0.50 per $100 of valuation; and

(2) the aggregate principal amount of tax bond indebtedness of the district after the proposed issuance would not exceed 10 percent of the assessed valuation of taxable property in the district according to the most recent certified ad valorem tax rolls of the district.

SECTION 2. Subsection (f), Section 45.0031, Education Code, as added by this Act, applies only to bonds that are submitted to the attorney general for approval on or after the effective date of this Act. Bonds that are submitted to the attorney general for approval before the effective date of this Act are governed by the law in effect on the date the bonds are submitted to the attorney general, and the former law is continued in effect for that purpose.

SECTION 3. 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.

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