Texas 2013 - 83rd Regular

Texas Senate Bill SB1384

Filed
 
Out of Senate Committee
 
Voted on by House
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to the authority of an independent school district to invest in local water projects.

Impact

The introduction of SB1384 is anticipated to enhance the financial strategy of independent school districts by diversifying their investment portfolios. This could serve both financial and community interests, as school districts can support vital local water infrastructure projects that are essential for sustainable development. Additionally, this legislative change aligns with broader state objectives to enhance water management and conservation, especially in arid regions where water resources are critical for public health and development.

Summary

SB1384 empowers independent school districts (ISDs) in Texas to invest in local water projects by allowing them to purchase local water bonds. These bonds are secured debt obligations issued by municipalities or counties that finance water development projects. This bill effectively broadens the investment options available to school districts, enabling them to participate in addressing local water needs while potentially earning interest on such investments. The benchmarks for eligible local water bonds include a minimum rating of 'AA-' by recognized investment rating firms and a maturity date not exceeding ten years from the purchase date.

Contention

While proponents of SB1384 argue that it enables school districts to invest in much-needed infrastructure and responsibly manage their financial resources, there are potential concerns about the financial risks associated with such investments. Critics may question whether school districts have the appropriate expertise to navigate investments in municipal bonds and the complexities of local water projects. Moreover, the possibility of diverting funds from educational purposes into infrastructure investments may spark debate regarding priority allocations within the districts.

Companion Bills

No companion bills found.

Previously Filed As

TX SB1246

Relating to authorized investments of public money by certain governmental entities and the confidentiality of certain information related to those investments.

TX SB2

Relating to a local optional teacher designation system implemented by a school district, a security officer employed by a school district, the basic allotment and guaranteed yield under the public school finance system, and certain allotments under the Foundation School Program; making an appropriation.

TX HB3495

Relating to the investment authority of certain state agencies and the confidentiality of certain information related to those investments.

TX HB5359

Relating to the creation of the Williamson County Development District No. 1; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

TX SB1056

Relating to the directors and administration of the Hidalgo County Water Improvement District No. 3.

TX HB5338

Relating to the Harris County Flood Control District and the transfer to it of the assets, programs, and facilities of the Harris County Toll Road Authority; providing for the appointment of the governing body.

TX HB5400

Relating to the creation of the Presidio International Port Authority District; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

TX SB2614

Relating to the creation of the Presidio International Port Authority District; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

TX HB2815

Relating to the powers, authorities, duties, and responsibilities of certain conservation and reclamation districts and to notice a person who proposes to sell or convey real property located in any of certain conservation and reclamation districts must provide to a prospective purchaser of that property.

TX HB5352

Relating to the approval and creation of the Williamson County Development District No. 1; and to the administration, powers, duties, operation, and financing of the district, including the authority to impose an assessment, a tax, and issue bonds.

Similar Bills

No similar bills found.