85R2647 KKA-D
 
  By: Huberty H.B. No. 2108
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to an increase in the tax rate limitation on the issuance
  of tax-supported bonds for certain school districts.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 45.0031, Education Code, is amended by
  amending Subsections (a) and (e) and adding Subsection (a-1) to
  read as follows:
         (a)  Before issuing bonds described by Section 45.001, a
  school district must demonstrate to the attorney general under
  Subsection (b) or (c) that, with respect to the proposed issuance,
  the district has a projected ability to pay the principal of and
  interest on the proposed bonds and all previously issued bonds
  other than bonds authorized to be issued at an election held on or
  before April 1, 1991, and issued before September 1, 1992, from a
  tax at a rate not to exceed:
               (1)  $0.50 per $100 of valuation; or
               (2)  if the district is eligible under Subsection
  (a-1), an amount per $100 of valuation that equals the sum of $0.50
  and the maximum number of cents by which the district could, with
  voter approval, increase the rate of the tax imposed by the district
  for maintenance and remain in compliance with the maintenance tax
  rate limitation prescribed by Section 45.003.
         (a-1)  A school district may issue bonds after demonstrating
  the ability to comply with the rate limitation specified by
  Subsection (a)(2) if the school district:
               (1)  does not have the capacity to issue proposed bonds
  described by Section 45.001 as a result of the rate limitation
  specified by Subsection (a)(1); and 
               (2)  does not impose a maintenance tax at the maximum
  rate permitted under Section 45.003.
         (e)  If a district demonstrates to the attorney general the
  district's ability to comply with Subsection (a) using a projected
  future taxable value of property under Subsection (c) and
  subsequently imposes a tax to pay the principal of and interest on
  bonds to which Subsection (a) applies at a rate that exceeds the
  applicable limitation [limit] imposed by Subsection (a), the
  attorney general may not approve a subsequent issuance of bonds
  unless the attorney general finds that the district has a projected
  ability to pay the principal of and interest on the proposed bonds
  and all previously issued bonds to which Subsection (a) applies
  from a tax at a rate not to exceed $0.45 per $100 of valuation or the
  rate equal to 90 percent of the limitation imposed by Subsection
  (a)(2), as applicable.
         SECTION 2.  Section 45.003, Education Code, is amended by
  adding Subsection (d-1) and amending Subsection (e) to read as
  follows:
         (d-1)  Notwithstanding Subsection (d), for a district
  described by Section 45.0031(a-1) that imposes an interest and
  sinking fund tax rate that exceeds the rate specified by Section
  45.0031(a)(1), the maximum maintenance tax rate prescribed by
  Subsection (d) is reduced by the number of cents that the district's
  interest and sinking fund tax rate exceeds the rate specified by
  Section 45.0031(a)(1).
         (e)  A rate that exceeds the maximum rate specified by
  Subsection (d) or (d-1), as applicable, for the year in which the
  tax is to be imposed is void.  A school district with a tax rate
  that is void under this subsection may, subject to requirements
  imposed by other law, adopt a rate for that year that does not
  exceed the maximum rate specified by Subsection (d) or (d-1), as
  applicable, for that year.
         SECTION 3.  This Act applies beginning with the 2018 tax
  year.
         SECTION 4.  This Act takes effect September 1, 2017.