Bill Text: TX HB506 | 2015-2016 | 84th Legislature | Comm Sub


Bill Title: Relating to the issuance of tax-supported bonds by certain school districts and increasing the tax rate limitation on the issuance of those bonds.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2015-05-13 - Statement(s) of vote recorded in Journal [HB506 Detail]

Download: Texas-2015-HB506-Comm_Sub.html
  84R18202 KKA-F
 
  By: Rodriguez of Travis H.B. No. 506
 
  Substitute the following for H.B. No. 506:
 
  By:  Aycock C.S.H.B. No. 506
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the issuance of tax-supported bonds by certain school
  districts and increasing the tax rate limitation on the issuance of
  those bonds.
         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 satisfies the requirements
  prescribed by Subsection (a-1), an amount per $100 of valuation
  that is 20 percent greater than the limitation imposed by
  Subdivision (1).
         (a-1)  The limitation imposed by Subsection (a)(2) applies
  to a school district that:
               (1)  has an interest and sinking fund tax rate of $0.45
  or greater per $100 of valuation;
               (2)  is a high enrollment growth district, as
  determined in accordance with rules of the commissioner adopted
  under Section 31.0214;
               (3)  has a current Financial Allocation Study for Texas
  (FAST) rating from the comptroller of at least three stars on a
  five-star scale, or the equivalent of that rating under any
  subsequent system developed by the comptroller; 
               (4)  has adopted a capital improvement plan in
  accordance with Section 45.114; and
               (5)  demonstrates to the attorney general that the
  terms of the proposed issuance will result in total interest costs
  to the district that are at least five percent less than the total
  interest costs that would result if the district were to issue an
  alternate debt instrument that defers interest costs, such as a
  capital appreciation bond.
         (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.  Subchapter E, Chapter 45, Education Code, is
  amended by adding Section 45.114 to read as follows:
         Sec. 45.114.  CAPITAL IMPROVEMENT PLAN. (a) The board of
  trustees of an independent school district with an interest and
  sinking fund tax rate of $0.45 or greater per $100 of valuation
  shall adopt a capital improvement plan that addresses the
  district's needs for additional or renovated facilities.
         (b)  The capital improvement plan must include:
               (1)  an inventory of the district's existing
  facilities;
               (2)  a list of each proposed project for additional or
  renovated facilities, ranked in order of priority and accompanied
  by the following information for each project:
                     (A)  details explaining the need for the
  additional or renovated facilities;
                     (B)  a proposed timeline for completion; and
                     (C)  an estimate of anticipated expenses;
               (3)  an assessment of the district's capacity to fund
  the proposed projects; and
               (4)  identification of the district's options for
  financing the proposed projects.
         (c)  The board shall hold a public meeting on a proposed
  capital improvement plan before adopting the plan and must make the
  proposed plan available to the public for review and comment.
         (d)  The board shall adopt the initial capital improvement
  plan not later than the first anniversary of the date on which the
  board adopts an interest and sinking fund tax rate of $0.45 or
  greater per $100 of valuation.
         (e)  Until the date on which the district's interest and
  sinking fund tax rate is less than $0.45 per $100 of valuation, the
  board shall annually reevaluate and, if necessary, amend the
  capital improvement plan.
         SECTION 3.  Notwithstanding Section 45.114(d), Education
  Code, as added by this Act, the board of trustees of an independent
  school district with an interest and sinking fund tax rate of $0.45
  or greater per $100 of valuation on the effective date of this Act
  shall adopt an initial capital improvement plan not later than the
  first anniversary of the effective date of this Act.
         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 September 1, 2015.
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