BILL ANALYSIS

H.B. 3130

By: Middleton

Pensions, Investments & Financial Services

Committee Report (Unamended)

BACKGROUND AND PURPOSE

It has been suggested that the practice of certain public school districts and open-enrollment charter schools to apply certain federal refundable tax credit payments received in connection with a build America bond, qualified school construction bond, or qualified zone academy bond to the credit of the district or charter school's maintenance and operations expenses improperly avoids recapture payments to the state and obfuscates the real picture of a district or charter school's finances. H.B. 3130 seeks to prohibit this practice by requiring those payments to be deposited to the credit of the interest and sinking fund established for the applicable bond.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 3130 amends the Education Code to require a public school district or open-enrollment charter school to deposit certain federal refundable tax credit payments received in connection with a build America bond, qualified school construction bond, or qualified zone academy bond issued by or on behalf of the district or charter school to the credit of the interest and sinking fund established for that bond.

EFFECTIVE DATE

September 1, 2019.