| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
| |
|
|
relating to the creation of a state financing program administered |
|
|
by the Texas Public Finance Authority to assist certain school |
|
|
districts with certain expenses; granting authority to issue bonds |
|
|
or other obligations. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Subchapter E, Chapter 45, Education Code, is |
|
|
amended by adding Sections 45.114 and 45.115 to read as follows: |
|
|
Sec. 45.114. ASSISTANCE FROM TEXAS PUBLIC FINANCE |
|
|
AUTHORITY. A school district may: |
|
|
(1) borrow money from the Texas Public Finance |
|
|
Authority made available in accordance with Section 1232.1031, |
|
|
Government Code; |
|
|
(2) as necessary in connection with obtaining loans or |
|
|
other financial assistance from the Texas Public Finance Authority |
|
|
in accordance with Section 1232.1031, Government Code: |
|
|
(A) issue bonds and notes, provided that the term |
|
|
of an obligation issued for this purpose may not exceed 15 years; |
|
|
and |
|
|
(B) enter into loan agreements, lease |
|
|
agreements, lease purchase agreements, or other appropriate |
|
|
financing agreements with the Texas Public Finance Authority; |
|
|
(3) make payments on an obligation or agreement issued |
|
|
or executed under this section using any available funds, including |
|
|
maintenance and operations tax revenue; and |
|
|
(4) secure the payment of an obligation or agreement |
|
|
issued or executed under this section through: |
|
|
(A) creating a lien against equipment obtained |
|
|
using the proceeds of the obligation; |
|
|
(B) creating a lien against and pledging any |
|
|
funds of the district available for that purpose, including |
|
|
maintenance and operations tax revenue; or |
|
|
(C) obtaining credit enhancement under |
|
|
Subchapter I. |
|
|
Sec. 45.115. PAYMENT PROTECTIONS FOR TEXAS PUBLIC FINANCE |
|
|
AUTHORITY. (a) In this section, "obligation" means an obligation |
|
|
issued by the Texas Public Finance Authority under Section |
|
|
1232.1031, Government Code, for the benefit of a school district. |
|
|
(b) Immediately following a determination that a school |
|
|
district will be or is unable to pay maturing or matured principal |
|
|
or interest on an obligation, but not later than the fifth day |
|
|
before maturity date, the district shall notify the commissioner. |
|
|
(c) Immediately following receipt of notice from a school |
|
|
district under Subsection (b), the commissioner shall instruct the |
|
|
comptroller to transfer to the Texas Public Finance Authority from |
|
|
the next payment of state money payable to the district from |
|
|
appropriations to the Foundation School Program the amount |
|
|
necessary to pay the maturing or matured principal or interest. |
|
|
(d) Immediately following receipt of the funds for payment |
|
|
of the principal or interest, the Texas Public Finance Authority |
|
|
shall forward the canceled obligation to the comptroller. The |
|
|
comptroller shall hold the canceled obligation on behalf of the |
|
|
Texas Public Finance Authority. |
|
|
(e) Following full reimbursement to the Texas Public |
|
|
Finance Authority with interest, the comptroller shall cancel the |
|
|
obligation and forward it to the school district. |
|
|
(f) If a school district fails to pay principal or interest |
|
|
on an obligation at maturity, other obligations not yet mature are |
|
|
not accelerated and are not due by virtue of the district's default. |
|
|
(g) If a total of two or more payments are made using state |
|
|
money otherwise payable to a school district from appropriations to |
|
|
the Foundation School Program and the commissioner determines that |
|
|
the district is acting in bad faith, the commissioner may request |
|
|
the attorney general to institute appropriate legal action to |
|
|
compel the district and the district's officers, agents, and |
|
|
employees to comply with the duties required by law in regard to the |
|
|
appropriate obligations. Jurisdiction of proceedings under this |
|
|
subsection is in district court in Travis County. |
|
|
(h) The Texas Public Finance Authority and the agency may |
|
|
enter into a memorandum of understanding governing the duties of |
|
|
the authority and the agency under this section, Section 45.114, |
|
|
and Section 1232.1031, Government Code. |
|
|
(i) The Texas Public Finance Authority may adopt rules |
|
|
necessary for the administration of obligations issued on behalf of |
|
|
school districts. |
|
|
SECTION 2. Section 45.252, Education Code, is amended by |
|
|
adding Subsection (a-1) to read as follows: |
|
|
(a-1) A school district may apply for credit enhancement |
|
|
under this subchapter of obligations issued under Section 45.114. |
|
|
SECTION 3. Subchapter C, Chapter 1232, Government Code, is |
|
|
amended by adding Section 1232.1031 to read as follows: |
|
|
Sec. 1232.1031. ISSUANCE OF OBLIGATIONS TO ASSIST CERTAIN |
|
|
SCHOOL DISTRICTS. (a) The authority may issue and sell obligations |
|
|
to finance: |
|
|
(1) loans to school districts for eligible purposes; |
|
|
(2) the purchase by the authority of vehicles, |
|
|
equipment, or appliances for sale, lease, or lease purchase to |
|
|
school districts; |
|
|
(3) a lease or other agreement that concerns equipment |
|
|
that a school district has purchased or leased or intends to |
|
|
purchase or lease; and |
|
|
(4) costs associated with maintenance, repair, |
|
|
rehabilitation, or renovation of eligible school district |
|
|
facilities. |
|
|
(b) The amount of obligations issued by the authority under |
|
|
this section must be for the benefit of school districts with an |
|
|
average daily attendance of 1,600 students or fewer, as determined |
|
|
under Section 42.005, Education Code. Not more than two percent of |
|
|
the obligations issued under this section may be for the benefit of |
|
|
a single school district. |
|
|
(c) The authority may use proceeds of obligations issued |
|
|
under this section to pay costs of administering this section, |
|
|
including costs of issuing obligations. |
|
|
(d) In connection with a purchase or project financed with |
|
|
the proceeds of obligations issued under this section, the |
|
|
authority may: |
|
|
(1) enter into loan agreements, lease agreements, |
|
|
lease purchase agreements, or other appropriate financing |
|
|
agreements with school districts; |
|
|
(2) purchase obligations issued by school districts; |
|
|
and |
|
|
(3) enter into credit agreements and exercise other |
|
|
powers granted to issuers under Chapter 1371. |
|
|
(e) The authority may secure payment of authority |
|
|
obligations issued under this section with the pledge of money in |
|
|
the school district equipment and improvement fund established |
|
|
under Subsection (f). |
|
|
(f) The school district equipment and improvement fund is |
|
|
established outside the treasury as a trust fund and is |
|
|
administered by the comptroller on behalf of the authority as |
|
|
directed or agreed to by the board. The fund consists of proceeds |
|
|
of obligations issued by the authority under this section and |
|
|
obligations and agreements issued or executed by school districts |
|
|
and purchased or funded by the authority with proceeds of authority |
|
|
obligations. Money in the fund may be spent without appropriation |
|
|
and may be used only to fund activities under this section or to |
|
|
secure repayment of authority obligations. Interest and income |
|
|
from the assets of the fund shall be credited to and deposited in |
|
|
the fund. |
|
|
(g) The board may establish funds and accounts determined to |
|
|
be necessary or appropriate in connection with the activities of |
|
|
the authority under this section. |
|
|
(h) The aggregate amount of obligations issued by the |
|
|
authority under this section outstanding at one time may not exceed |
|
|
$100 million. |
|
|
(i) The board shall adopt rules necessary to implement this |
|
|
section, including rules prescribing requirements for school |
|
|
districts seeking assistance under this section, rules identifying |
|
|
eligible purposes for purposes of Subsection (a)(1), and rules |
|
|
identifying eligible school district facilities for purposes of |
|
|
Subsection (a)(4). Before adopting or modifying a rule under this |
|
|
subsection, the board shall consult with the commissioner of |
|
|
education. |
|
|
(j) Rules adopted under Subsection (i) may establish a |
|
|
process under which a school district must obtain approval by the |
|
|
commissioner of education before the district may receive |
|
|
assistance under this section. |
|
|
(k) The authority may not issue an obligation under this |
|
|
section on or after September 1, 2023. The prohibition imposed by |
|
|
this subsection does not apply to: |
|
|
(1) refunding bonds issued by the authority in |
|
|
accordance with Chapter 1207; or |
|
|
(2) other obligations issued by the authority to |
|
|
refinance obligations incurred under this section before September |
|
|
1, 2023. |
|
|
SECTION 4. This Act takes effect immediately if it receives |
|
|
a vote of two-thirds of all the members elected to each house, as |
|
|
provided by Section 39, Article III, Texas Constitution. If this |
|
|
Act does not receive the vote necessary for immediate effect, this |
|
|
Act takes effect on the 91st day after the last day of the |
|
|
legislative session. |
|
|
|
|
|
* * * * * |