84R7116 KKA-F
 
  By: Farney H.B. No. 2833
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the issuance of interest-bearing time warrants by
  school districts.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         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 20
  [15] 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 were [was] incurred in carrying out any of
  those purposes.
         (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 $2 [$1]
  million under this section.
         SECTION 2.  This Act takes effect September 1, 2015.