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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