83R8704 KKA-F
  By: Hegar S.B. No. 1243
  relating to the issuance of interest-bearing time warrants and
  certain notes by school districts.
         SECTION 1.  Sections 45.103(a) and (c), Education Code, are
  amended to read as follows:
         (a)  Any school district in need of funds to construct,
  repair, or renovate school buildings, purchase school buildings and
  school equipment, or equip school properties with necessary
  heating, water, sanitation, lunchroom, or electric facilities or in
  need of funds with which to employ a person who has special skill
  and experience to compile taxation data and that is financially
  unable out of available funds to construct, repair, renovate, or
  purchase school buildings, purchase school equipment, or equip
  school properties with necessary heating, water, sanitation,
  lunchroom, or electric facilities or is unable to pay the person for
  compiling taxation data, may, subject to this section, issue
  interest-bearing time warrants, in amounts sufficient to
  construct, purchase, equip, or improve school buildings and
  facilities or to pay all or part of the compensation of the person
  to compile taxation data, any law to the contrary notwithstanding.
  The warrants shall mature in serial installments of not more than 15
  [five] years from their date of issue. The warrants on maturity may
  be payable out of any available funds of the school district in the
  order of their maturity dates. Any interest-bearing time warrants
  may be issued and sold by the district for not less than their face
  value, and the proceeds used to provide funds required for the
  purpose for which they are issued. The warrants shall be entitled
  to first payment out of any available funds of the district as they
  become due. Included in the purposes for which interest-bearing
  time warrants may be issued is the payment of any amounts owed by
  the school district that was incurred in carrying out any of those
         (c)  A school district may not issue interest-bearing time
  warrants in excess of five percent of the assessed valuation of the
  district for the year in which the warrants are issued. The payment
  of interest-bearing time warrants in any one year may not exceed the
  anticipated surplus income of the district for the year in which the
  warrants are issued, based on the budget of the district for that
  year. The anticipated income computed under this section is
  exclusive of all bond taxes. A school district may not have
  outstanding at any one time warrants totaling in excess of $1
  million [$500,000] under this section.
         SECTION 2.  Section 45.108(a), Education Code, is amended to
  read as follows:
         (a)  Independent or consolidated school districts may borrow
  money for the purpose of paying maintenance expenses and may
  evidence those loans with negotiable or nonnegotiable notes, except
  that the loans may not at any time exceed 75 percent of the previous
  year's income. The notes may be payable from and secured by a lien
  on and pledge of any available funds of the district, including
  proceeds of a maintenance tax. The term "maintenance expenses" or
  "maintenance expenditures" as used in this section means any lawful
  expenditure of the school district other than payment of principal
  of and interest on bonds. The term includes expenditures relating
  to notes issued to refund notes previously issued under this
  section if the refunding notes are coterminous with the refunded
  obligation. The term also includes all costs incurred in
  connection with environmental cleanup and asbestos cleanup and
  removal programs implemented by school districts or in connection
  with the maintenance, repair, rehabilitation, or replacement of
  heating, air conditioning, water, sanitation, roofing, flooring,
  electric, or other building systems of existing school properties.
  Notes issued pursuant to this section may be issued to mature in not
  more than 20 years from their date. Notes issued for a term longer
  than one year must be treated as "debt" as defined in Section
  26.012(7), Tax Code.
         SECTION 3.  Section 1202.007(a), Government Code, is amended
  to read as follows:
         (a)  The following are exempt from the approval and
  registration requirements of this chapter:
               (1)  a public security that is:
                     (A)  not subject to mandatory renewal or renewal
  at the option of any person, including the issuer, a holder, or a
  bearer; and
                     (B)  payable only out of:
                           (i)  current revenues or taxes collected in
  the year the public security is issued; or
                           (ii)  the proceeds of other public
               (2)  a certificate in evidence of benefit assessments;
               (3)  a certificate of obligation, including a claim or
  account that represents an undivided interest in a certificate of
  obligation, that under Subchapter C, Chapter 271, Local Government
  Code, an issuer is authorized to deliver to a contractor;
               (4)  a time warrant issued under Chapter 252 or 262,
  Local Government Code;
               (5)  a public security authorized by Chapter 1371;
               (6)  a lease, lease-purchase, or installment sale
  obligation, except as provided by other law; [and]
               (7)  a public security that by rule the attorney
  general exempts because it is not practical to require approval
  before the public security's issuance; and
               (8)  a nonnegotiable note issued under Section 45.108,
  Education Code, in a principal amount that does not exceed $1
         SECTION 4.  This Act takes effect September 1, 2013.