By: Aycock H.B. No. 3697
A BILL TO BE ENTITLED
AN ACT
relating to the issuance of certain tax-supported bonds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 45.0031, Education Code, is amended by
amending Subsection (a) and adding Subsections (c-1) and (f) 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), or (c-1) 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 $0.50 per $100 of valuation.
(c-1) A district may demonstrate the ability to comply with
Subsection (a) by using pro forma debt service projections on the
proposed bonds and all previously issued bonds described in
Subsection (a) based on current market interest rates and yields,
as determined by the district and certified by a financial advisor
or consultant to the district. For the purposes of determining pro
forma debt service on the proposed bonds and all previously issued
bonds described in Subsection (a), the district shall amortize the
proposed bonds and the previously issued bonds over the maximum
term for such bonds permitted by law.
(f) A district that demonstrates to the attorney general
that the district has the ability to comply with Subsection (a) may
issue the proposed bonds in any manner that will produce actual debt
service savings of at least 10 percent, as determined by the
district, when compared to the pro forma debt service payments on
the proposed bonds used to demonstrate that the district has the
projected ability to comply with Subsection (a). Actual debt
service savings shall be determined using the difference between
the total amount of the pro forma debt service payments on the
proposed bonds and the actual debt service on the proposed bonds, as
a percentage of the total amount of the pro forma debt service
payments on the proposed bonds.
SECTION 2. This Act takes effect September 1, 2009.