Texas 2013 - 83rd Regular

Texas Senate Bill SB1243 Compare Versions

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1	1	By: Hegar S.B. No. 1243
2	2	(In the Senate - Filed March 6, 2013; March 13, 2013, read
3	3	first time and referred to Committee on Education; April 18, 2013,
4	4	reported adversely, with favorable Committee Substitute by the
5	5	following vote: Yeas 9, Nays 0; April 18, 2013, sent to printer.)
6	6	COMMITTEE SUBSTITUTE FOR S.B. No. 1243 By: Patrick
7	7
8	8
9	9	A BILL TO BE ENTITLED
10	10	AN ACT
11	11	relating to the issuance of interest-bearing time warrants and
12	12	certain notes by school districts.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. Section 45.103, Education Code, is amended by
15	15	amending Subsections (a) and (c) and adding Subsection (a-1) to
16	16	read as follows:
17	17	(a) Any school district in need of funds to construct,
18	18	repair, or renovate school buildings, purchase school buildings and
19	19	school equipment, or equip school properties with necessary
20	20	heating, water, sanitation, lunchroom, or electric facilities or in
21	21	need of funds with which to employ a person who has special skill
22	22	and experience to compile taxation data and that is financially
23	23	unable out of available funds to construct, repair, renovate, or
24	24	purchase school buildings, purchase school equipment, or equip
25	25	school properties with necessary heating, water, sanitation,
26	26	lunchroom, or electric facilities or is unable to pay the person for
27	27	compiling taxation data, may, subject to this section, issue
28	28	interest-bearing time warrants, in amounts sufficient to
29	29	construct, purchase, equip, or improve school buildings and
30	30	facilities or to pay all or part of the compensation of the person
31	31	to compile taxation data, any law to the contrary notwithstanding.
32	32	The warrants shall mature in serial installments of not more than 10
33	33	[five] years from their date of issue. The warrants on maturity may
34	34	be payable out of any available funds of the school district in the
35	35	order of their maturity dates. Any interest-bearing time warrants
36	36	may be issued and sold by the district for not less than their face
37	37	value, and the proceeds used to provide funds required for the
38	38	purpose for which they are issued. The warrants shall be entitled
39	39	to first payment out of any available funds of the district as they
40	40	become due. Included in the purposes for which interest-bearing
41	41	time warrants may be issued is the payment of any amounts owed by
42	42	the school district that was incurred in carrying out any of those
43	43	purposes.
44	44	(a-1) A school district may also issue interest-bearing
45	45	time warrants to refund warrants previously issued under this
46	46	section if the refunding warrants are coterminous with the refunded
47	47	obligations.
48	48	(c) A school district may not issue interest-bearing time
49	49	warrants in excess of five percent of the assessed valuation of the
50	50	district for the year in which the warrants are issued. The payment
51	51	of interest-bearing time warrants in any one year may not exceed the
52	52	anticipated surplus income of the district for the year in which the
53	53	warrants are issued, based on the budget of the district for that
54	54	year. The anticipated income computed under this section is
55	55	exclusive of all bond taxes. A school district may not have
56	56	outstanding at any one time warrants totaling in excess of $1
57	57	million [$500,000] under this section.
58	58	SECTION 2. Subsection (a), Section 45.108, Education Code,
59	59	is amended to read as follows:
60	60	(a) Independent or consolidated school districts may borrow
61	61	money for the purpose of paying maintenance expenses and may
62	62	evidence those loans with negotiable or nonnegotiable notes, except
63	63	that the loans may not at any time exceed 75 percent of the previous
64	64	year's income. The notes may be payable from and secured by a lien
65	65	on and pledge of any available funds of the district, including
66	66	proceeds of a maintenance tax. The term "maintenance expenses" or
67	67	"maintenance expenditures" as used in this section means any lawful
68	68	expenditure of the school district other than payment of principal
69	69	of and interest on bonds. The term includes expenditures relating
70	70	to notes issued to refund notes previously issued under this
71	71	section if the refunding notes are coterminous with the refunded
72	72	obligation. The term also includes all costs incurred in
73	73	connection with environmental cleanup and asbestos cleanup and
74	74	removal programs implemented by school districts or in connection
75	75	with the maintenance, repair, rehabilitation, or replacement of
76	76	heating, air conditioning, water, sanitation, roofing, flooring,
77	77	electric, or other building systems of existing school properties.
78	78	Notes issued pursuant to this section may be issued to mature in not
79	79	more than 20 years from their date. Notes issued for a term longer
80	80	than one year must be treated as "debt" as defined in Section
81	81	26.012(7), Tax Code.
82	82	SECTION 3. Subsection (a), Section 1202.007, Government
83	83	Code, is amended to read as follows:
84	84	(a) The following are exempt from the approval and
85	85	registration requirements of this chapter:
86	86	(1) a public security that is:
87	87	(A) not subject to mandatory renewal or renewal
88	88	at the option of any person, including the issuer, a holder, or a
89	89	bearer; and
90	90	(B) payable only out of:
91	91	(i) current revenues or taxes collected in
92	92	the year the public security is issued; or
93	93	(ii) the proceeds of other public
94	94	securities;
95	95	(2) a certificate in evidence of benefit assessments;
96	96	(3) a certificate of obligation, including a claim or
97	97	account that represents an undivided interest in a certificate of
98	98	obligation, that under Subchapter C, Chapter 271, Local Government
99	99	Code, an issuer is authorized to deliver to a contractor;
100	100	(4) a time warrant issued under Chapter 252 or 262,
101	101	Local Government Code;
102	102	(5) a public security authorized by Chapter 1371;
103	103	(6) a lease, lease-purchase, or installment sale
104	104	obligation, except as provided by other law; [and]
105	105	(7) a public security that by rule the attorney
106	106	general exempts because it is not practical to require approval
107	107	before the public security's issuance; and
108	108	(8) a nonnegotiable note issued under Section 45.108,
109	109	Education Code, in a principal amount that does not exceed $1
110	110	million.
111	111	SECTION 4. This Act takes effect September 1, 2013.
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