84R9860 KKA-D
 
  By: Goldman 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 Subsections (a) and (b) and adding Subsections (a-1),
  (b-1), and (d) to read as follows:
         (a)  Subject to Subsection (a-1), the [The] governing board
  of an independent school district, including the city council or
  commission that has jurisdiction over a municipally controlled
  independent school district, the governing board of a rural high
  school district, and the commissioners court of a county, on behalf
  of each common school district under its jurisdiction, may:
               (1)  issue bonds for:
                     (A)  the construction, acquisition, and equipment
  of school buildings in the district;
                     (B)  the acquisition of property or the
  refinancing of property financed under a contract entered under
  Subchapter A, Chapter 271, Local Government Code, regardless of
  whether payment obligations under the contract are due in the
  current year or a future year;
                     (C)  the purchase of the necessary sites for
  school buildings; and
                     (D)  the purchase of new school buses; and
               (2)  [may] levy, pledge, assess, and collect annual ad
  valorem taxes sufficient to pay the principal of and interest on the
  bonds as or before the principal and interest become due, subject to
  Section 45.003.
         (a-1)  This section does not authorize bonds to be issued to
  pay costs associated with the initial purchase, subsequent
  replacement, or lease of technological equipment that is not a
  permanently attached fixture necessary in the initial construction
  of a public education facility.
         (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.