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

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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.

Sponsorship: Partisan Bill (Democrat 1)

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

Download: Texas-2015-HB506-Comm_Sub.html

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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.