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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 bonds by school districts and |
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the permissible use of interest derived from the proceeds of those |
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bonds. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 45.001, Education Code, is amended by |
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amending Subsection (b) and adding Subsections (b-1) and (d) to |
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read as follows: |
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(b) The bonds must mature serially or otherwise not more |
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than 40 years from their date, except that if the expected useful |
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life of the asset acquired with bond proceeds is less than 40 years |
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the bonds must mature serially or otherwise not later than the last |
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year of the expected useful life of the acquired asset. The bonds |
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may be made redeemable before maturity. |
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(b-1) For purposes of Subsection (b), the expected useful |
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life of an asset is determined based on the depreciable life of the |
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asset under the Internal Revenue Code of 1986. |
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(d) Interest earned on bond proceeds may be used only to pay |
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the principal of and interest on the bonds. |
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SECTION 2. (a) Except as provided by Subsection (b) of this |
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section, this Act applies only to bonds authorized by voters on or |
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after the effective date of this Act. |
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(b) Section 45.001(d), Education Code, as added by this Act, |
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applies to interest that accrues on bond proceeds on or after the |
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effective date of this Act, regardless of the date on which the |
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bonds were authorized or issued. |
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SECTION 3. This Act takes effect September 1, 2015. |