| 1 | 1 | | 84R18525 KKA-D |
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| 2 | 2 | | By: Goldman H.B. No. 1752 |
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| 3 | 3 | | Substitute the following for H.B. No. 1752: |
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| 4 | 4 | | By: Stephenson C.S.H.B. No. 1752 |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the issuance of certain bonds by school districts and |
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| 10 | 10 | | the permissible use of interest derived from the proceeds of those |
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| 11 | 11 | | bonds. |
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| 12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 13 | | SECTION 1. Section 45.001, Education Code, is amended by |
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| 14 | 14 | | amending Subsection (b) and adding Subsections (b-1) and (d) to |
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| 15 | 15 | | read as follows: |
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| 16 | 16 | | (b) The bonds must mature serially or otherwise not more |
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| 17 | 17 | | than 40 years from their date, except that if the expected useful |
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| 18 | 18 | | life of the asset acquired with bond proceeds is less than 40 years |
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| 19 | 19 | | the bonds must mature serially or otherwise not later than the last |
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| 20 | 20 | | year of the expected useful life of the acquired asset. The bonds |
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| 21 | 21 | | may be made redeemable before maturity. |
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| 22 | 22 | | (b-1) For purposes of Subsection (b), the expected useful |
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| 23 | 23 | | life of an asset is determined based on the depreciable life of the |
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| 24 | 24 | | asset under the Internal Revenue Code of 1986. |
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| 25 | 25 | | (d) Interest earned on bond proceeds may be used only to pay |
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| 26 | 26 | | the principal of and interest on the bonds. |
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| 27 | 27 | | SECTION 2. (a) Except as provided by Subsection (b) of this |
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| 28 | 28 | | section, this Act applies only to bonds authorized by voters on or |
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| 29 | 29 | | after the effective date of this Act. |
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| 30 | 30 | | (b) Section 45.001(d), Education Code, as added by this Act, |
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| 31 | 31 | | applies to interest that accrues on bond proceeds on or after the |
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| 32 | 32 | | effective date of this Act, regardless of the date on which the |
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| 33 | 33 | | bonds were authorized or issued. |
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| 34 | 34 | | SECTION 3. This Act takes effect September 1, 2015. |
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