84R18525 KKA-D
 
  By: Goldman H.B. No. 1752
 
  Substitute the following for H.B. No. 1752:
 
  By:  Stephenson C.S.H.B. No. 1752
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the issuance of certain bonds by school districts and
  the permissible use of interest derived from the proceeds of those
  bonds.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 45.001, Education Code, is amended by
  amending Subsection (b) and adding Subsections (b-1) and (d) to
  read as follows:
         (b)  The bonds must mature serially or otherwise not more
  than 40 years from their date, except that if the expected useful
  life of the asset acquired with bond proceeds is less than 40 years
  the bonds must mature serially or otherwise not later than the last
  year of the expected useful life of the acquired asset. The bonds
  may be made redeemable before maturity.
         (b-1)  For purposes of Subsection (b), the expected useful
  life of an asset is determined based on the depreciable life of the
  asset under the Internal Revenue Code of 1986.
         (d)  Interest earned on bond proceeds may be used only to pay
  the principal of and interest on the bonds. 
         SECTION 2.  (a) Except as provided by Subsection (b) of this
  section, this Act applies only to bonds authorized by voters on or
  after the effective date of this Act.
         (b)  Section 45.001(d), Education Code, as added by this Act,
  applies to interest that accrues on bond proceeds on or after the
  effective date of this Act, regardless of the date on which the
  bonds were authorized or issued.
         SECTION 3.  This Act takes effect September 1, 2015.