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A BILL TO BE ENTITLED
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AN ACT
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relating to the issuance of certain tax-supported bonds. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 45.0031, Education Code, is amended by |
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amending Subsection (a) and adding Subsections (c-1) and (f) to |
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read as follows: |
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(a) Before issuing bonds described by Section 45.001, a |
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school district must demonstrate to the attorney general under |
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Subsection (b), [or] (c), or (c-1) that, with respect to the |
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proposed issuance, the district has a projected ability to pay the |
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principal of and interest on the proposed bonds and all previously |
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issued bonds other than bonds authorized to be issued at an election |
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held on or before April 1, 1991, and issued before September 1, |
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1992, from a tax at a rate not to exceed $0.50 per $100 of valuation. |
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(c-1) A district may demonstrate the ability to comply with |
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Subsection (a) by using pro forma debt service projections on the |
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proposed bonds and all previously issued bonds described in |
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Subsection (a) based on current market interest rates and yields, |
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as determined by the district and certified by a financial advisor |
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or consultant to the district. For the purposes of determining pro |
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forma debt service on the proposed bonds and all previously issued |
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bonds described in Subsection (a), the district shall amortize the |
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proposed bonds and the previously issued bonds over the maximum |
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term for such bonds permitted by law. |
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(f) A district that demonstrates to the attorney general |
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that the district has the ability to comply with Subsection (a) may |
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issue the proposed bonds in any manner that will produce actual debt |
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service savings of at least 10 percent, as determined by the |
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district, when compared to the pro forma debt service payments on |
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the proposed bonds used to demonstrate that the district has the |
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projected ability to comply with Subsection (a). Actual debt |
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service savings shall be determined using the difference between |
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the total amount of the pro forma debt service payments on the |
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proposed bonds and the actual debt service on the proposed bonds, as |
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a percentage of the total amount of the pro forma debt service |
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payments on the proposed bonds. |
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SECTION 2. This Act takes effect September 1, 2009. |