Texas 2013 - 83rd Regular

Texas House Bill HB2610 Compare Versions

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1	1	By: Pitts (Senate Sponsor - Hegar) H.B. No. 2610
2	2	(In the Senate - Received from the House May 6, 2013;
3	3	May 8, 2013, read first time and referred to Committee on
4	4	Education; May 14, 2013, reported favorably by the following vote:
5	5	Yeas 9, Nays 0; May 14, 2013, sent to printer.)
6	6
7	7
8	8	A BILL TO BE ENTITLED
9	9	AN ACT
10	10	relating to the issuance of interest-bearing time warrants and
11	11	certain notes by school districts.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Section 45.103, Education Code, is amended by
14	14	amending Subsections (a) and (c) and adding Subsection (a-1) to
15	15	read as follows:
16	16	(a) Any school district in need of funds to construct,
17	17	repair, or renovate school buildings, purchase school buildings and
18	18	school equipment, or equip school properties with necessary
19	19	heating, water, sanitation, lunchroom, or electric facilities or in
20	20	need of funds with which to employ a person who has special skill
21	21	and experience to compile taxation data and that is financially
22	22	unable out of available funds to construct, repair, renovate, or
23	23	purchase school buildings, purchase school equipment, or equip
24	24	school properties with necessary heating, water, sanitation,
25	25	lunchroom, or electric facilities or is unable to pay the person for
26	26	compiling taxation data, may, subject to this section, issue
27	27	interest-bearing time warrants, in amounts sufficient to
28	28	construct, purchase, equip, or improve school buildings and
29	29	facilities or to pay all or part of the compensation of the person
30	30	to compile taxation data, any law to the contrary notwithstanding.
31	31	The warrants shall mature in serial installments of not more than 15
32	32	[five] years from their date of issue. The warrants on maturity may
33	33	be payable out of any available funds of the school district in the
34	34	order of their maturity dates. Any interest-bearing time warrants
35	35	may be issued and sold by the district for not less than their face
36	36	value, and the proceeds used to provide funds required for the
37	37	purpose for which they are issued. The warrants shall be entitled
38	38	to first payment out of any available funds of the district as they
39	39	become due. Included in the purposes for which interest-bearing
40	40	time warrants may be issued is the payment of any amounts owed by
41	41	the school district that was incurred in carrying out any of those
42	42	purposes.
43	43	(a-1) A school district may also issue interest-bearing
44	44	time warrants to refund warrants previously issued under this
45	45	section if the refunding warrants are coterminous with the refunded
46	46	obligations.
47	47	(c) A school district may not issue interest-bearing time
48	48	warrants in excess of five percent of the assessed valuation of the
49	49	district for the year in which the warrants are issued. The payment
50	50	of interest-bearing time warrants in any one year may not exceed the
51	51	anticipated surplus income of the district for the year in which the
52	52	warrants are issued, based on the budget of the district for that
53	53	year. The anticipated income computed under this section is
54	54	exclusive of all bond taxes. A school district may not have
55	55	outstanding at any one time warrants totaling in excess of $1
56	56	million [$500,000] under this section.
57	57	SECTION 2. Section 45.108(a), Education Code, is amended to
58	58	read as follows:
59	59	(a) Independent or consolidated school districts may borrow
60	60	money for the purpose of paying maintenance expenses and may
61	61	evidence those loans with negotiable or nonnegotiable notes, except
62	62	that the loans may not at any time exceed 75 percent of the previous
63	63	year's income. The notes may be payable from and secured by a lien
64	64	on and pledge of any available funds of the district, including
65	65	proceeds of a maintenance tax. The term "maintenance expenses" or
66	66	"maintenance expenditures" as used in this section means any lawful
67	67	expenditure of the school district other than payment of principal
68	68	of and interest on bonds. The term includes expenditures relating
69	69	to notes issued to refund notes previously issued under this
70	70	section if the refunding notes are coterminous with the refunded
71	71	obligation. The term also includes all costs incurred in
72	72	connection with environmental cleanup and asbestos cleanup and
73	73	removal programs implemented by school districts or in connection
74	74	with the maintenance, repair, rehabilitation, or replacement of
75	75	heating, air conditioning, water, sanitation, roofing, flooring,
76	76	electric, or other building systems of existing school properties.
77	77	Notes issued pursuant to this section may be issued to mature in not
78	78	more than 20 years from their date. Notes issued for a term longer
79	79	than one year must be treated as "debt" as defined in Section
80	80	26.012(7), Tax Code.
81	81	SECTION 3. Section 1202.007(a), Government Code, is amended
82	82	to read as follows:
83	83	(a) The following are exempt from the approval and
84	84	registration requirements of this chapter:
85	85	(1) a public security that is:
86	86	(A) not subject to mandatory renewal or renewal
87	87	at the option of any person, including the issuer, a holder, or a
88	88	bearer; and
89	89	(B) payable only out of:
90	90	(i) current revenues or taxes collected in
91	91	the year the public security is issued; or
92	92	(ii) the proceeds of other public
93	93	securities;
94	94	(2) a certificate in evidence of benefit assessments;
95	95	(3) a certificate of obligation, including a claim or
96	96	account that represents an undivided interest in a certificate of
97	97	obligation, that under Subchapter C, Chapter 271, Local Government
98	98	Code, an issuer is authorized to deliver to a contractor;
99	99	(4) a time warrant issued under Chapter 252 or 262,
100	100	Local Government Code;
101	101	(5) a public security authorized by Chapter 1371;
102	102	(6) a lease, lease-purchase, or installment sale
103	103	obligation, except as provided by other law; [and]
104	104	(7) a public security that by rule the attorney
105	105	general exempts because it is not practical to require approval
106	106	before the public security's issuance; and
107	107	(8) a nonnegotiable note issued under Section 45.108,
108	108	Education Code, in a principal amount that does not exceed $1
109	109	million.
110	110	SECTION 4. This Act takes effect September 1, 2013.
111	111	* * * * *