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