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A BILL TO BE ENTITLED
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AN ACT
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relating to an increase in the tax rate limitation on the issuance |
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of tax-supported bonds for certain school districts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 45.0031, Education Code, is amended by |
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amending Subsections (a) and (e) and adding Subsection (a-1) to |
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read as follows: |
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(a) Before issuing bonds described by Section 45.001, a |
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school district must demonstrate to the attorney general under |
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Subsection (b) or (c) that, with respect to the proposed issuance, |
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the district has a projected ability to pay the principal of and |
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interest on the proposed bonds and all previously issued bonds |
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other than bonds authorized to be issued at an election held on or |
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before April 1, 1991, and issued before September 1, 1992, from a |
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tax at a rate not to exceed: |
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(1) $0.50 per $100 of valuation; or |
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(2) if the district is eligible under Subsection |
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(a-1), an amount per $100 of valuation that equals the sum of $0.50 |
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and the maximum number of cents by which the district could, with |
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voter approval, increase the rate of the tax imposed by the district |
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for maintenance and remain in compliance with the maintenance tax |
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rate limitation prescribed by Section 45.003. |
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(a-1) A school district may issue bonds after demonstrating |
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the ability to comply with the rate limitation specified by |
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Subsection (a)(2) if the school district: |
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(1) does not have the capacity to issue proposed bonds |
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described by Section 45.001 as a result of the rate limitation |
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specified by Subsection (a)(1); and |
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(2) does not impose a maintenance tax at the maximum |
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rate permitted under Section 45.003. |
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(e) If a district demonstrates to the attorney general the |
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district's ability to comply with Subsection (a) using a projected |
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future taxable value of property under Subsection (c) and |
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subsequently imposes a tax to pay the principal of and interest on |
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bonds to which Subsection (a) applies at a rate that exceeds the |
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applicable limitation [limit] imposed by Subsection (a), the |
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attorney general may not approve a subsequent issuance of bonds |
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unless the attorney general finds that the district has a projected |
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ability to pay the principal of and interest on the proposed bonds |
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and all previously issued bonds to which Subsection (a) applies |
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from a tax at a rate not to exceed $0.45 per $100 of valuation or the |
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rate equal to 90 percent of the limitation imposed by Subsection |
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(a)(2), as applicable. |
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SECTION 2. Section 45.003, Education Code, is amended by |
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adding Subsection (d-1) and amending Subsection (e) to read as |
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follows: |
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(d-1) Notwithstanding Subsection (d), for a district |
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described by Section 45.0031(a-1) that imposes an interest and |
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sinking fund tax rate that exceeds the rate specified by Section |
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45.0031(a)(1), the maximum maintenance tax rate prescribed by |
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Subsection (d) is reduced by the number of cents that the district's |
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interest and sinking fund tax rate exceeds the rate specified by |
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Section 45.0031(a)(1). |
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(e) A rate that exceeds the maximum rate specified by |
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Subsection (d) or (d-1), as applicable, for the year in which the |
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tax is to be imposed is void. A school district with a tax rate |
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that is void under this subsection may, subject to requirements |
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imposed by other law, adopt a rate for that year that does not |
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exceed the maximum rate specified by Subsection (d) or (d-1), as |
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applicable, for that year. |
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SECTION 3. This Act applies beginning with the 2018 tax |
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year. |
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SECTION 4. This Act takes effect September 1, 2017. |