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A BILL TO BE ENTITLED
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AN ACT
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relating to the issuance of interest-bearing time warrants by |
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school districts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 45.103(a) and (c), Education Code, are |
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amended to read as follows: |
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(a) Any school district in need of funds to construct, |
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repair, or renovate school buildings, purchase school buildings and |
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school equipment, or equip school properties with necessary |
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heating, water, sanitation, lunchroom, or electric facilities or in |
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need of funds with which to employ a person who has special skill |
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and experience to compile taxation data and that is financially |
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unable out of available funds to construct, repair, renovate, or |
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purchase school buildings, purchase school equipment, or equip |
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school properties with necessary heating, water, sanitation, |
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lunchroom, or electric facilities or is unable to pay the person for |
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compiling taxation data, may, subject to this section, issue |
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interest-bearing time warrants, in amounts sufficient to |
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construct, purchase, equip, or improve school buildings and |
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facilities or to pay all or part of the compensation of the person |
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to compile taxation data, any law to the contrary notwithstanding. |
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The warrants shall mature in serial installments of not more than 20 |
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[15] years from their date of issue. The warrants on maturity may |
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be payable out of any available funds of the school district in the |
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order of their maturity dates. Any interest-bearing time warrants |
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may be issued and sold by the district for not less than their face |
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value, and the proceeds used to provide funds required for the |
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purpose for which they are issued. The warrants shall be entitled |
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to first payment out of any available funds of the district as they |
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become due. Included in the purposes for which interest-bearing |
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time warrants may be issued is the payment of any amounts owed by |
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the school district that were [was] incurred in carrying out any of |
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those purposes. |
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(c) A school district may not issue interest-bearing time |
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warrants in excess of five percent of the assessed valuation of the |
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district for the year in which the warrants are issued. The payment |
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of interest-bearing time warrants in any one year may not exceed the |
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anticipated surplus income of the district for the year in which the |
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warrants are issued, based on the budget of the district for that |
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year. The anticipated income computed under this section is |
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exclusive of all bond taxes. A school district may not have |
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outstanding at any one time warrants totaling in excess of $2 [$1] |
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million under this section. |
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SECTION 2. This Act takes effect September 1, 2015. |