Texas 2015 - 84th Regular

Texas House Bill HB506 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	84R18202 KKA-F
2	2	By: Rodriguez of Travis H.B. No. 506
3	3	Substitute the following for H.B. No. 506:
4	4	By: Aycock C.S.H.B. No. 506
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the issuance of tax-supported bonds by certain school
10	10	districts and increasing the tax rate limitation on the issuance of
11	11	those bonds.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Section 45.0031, Education Code, is amended by
14	14	amending Subsections (a) and (e) and adding Subsection (a-1) to
15	15	read as follows:
16	16	(a) Before issuing bonds described by Section 45.001, a
17	17	school district must demonstrate to the attorney general under
18	18	Subsection (b) or (c) that, with respect to the proposed issuance,
19	19	the district has a projected ability to pay the principal of and
20	20	interest on the proposed bonds and all previously issued bonds
21	21	other than bonds authorized to be issued at an election held on or
22	22	before April 1, 1991, and issued before September 1, 1992, from a
23	23	tax at a rate not to exceed:
24	24	(1) $0.50 per $100 of valuation; or
25	25	(2) if the district satisfies the requirements
26	26	prescribed by Subsection (a-1), an amount per $100 of valuation
27	27	that is 20 percent greater than the limitation imposed by
28	28	Subdivision (1).
29	29	(a-1) The limitation imposed by Subsection (a)(2) applies
30	30	to a school district that:
31	31	(1) has an interest and sinking fund tax rate of $0.45
32	32	or greater per $100 of valuation;
33	33	(2) is a high enrollment growth district, as
34	34	determined in accordance with rules of the commissioner adopted
35	35	under Section 31.0214;
36	36	(3) has a current Financial Allocation Study for Texas
37	37	(FAST) rating from the comptroller of at least three stars on a
38	38	five-star scale, or the equivalent of that rating under any
39	39	subsequent system developed by the comptroller;
40	40	(4) has adopted a capital improvement plan in
41	41	accordance with Section 45.114; and
42	42	(5) demonstrates to the attorney general that the
43	43	terms of the proposed issuance will result in total interest costs
44	44	to the district that are at least five percent less than the total
45	45	interest costs that would result if the district were to issue an
46	46	alternate debt instrument that defers interest costs, such as a
47	47	capital appreciation bond.
48	48	(e) If a district demonstrates to the attorney general the
49	49	district's ability to comply with Subsection (a) using a projected
50	50	future taxable value of property under Subsection (c) and
51	51	subsequently imposes a tax to pay the principal of and interest on
52	52	bonds to which Subsection (a) applies at a rate that exceeds the
53	53	applicable limitation [limit] imposed by Subsection (a), the
54	54	attorney general may not approve a subsequent issuance of bonds
55	55	unless the attorney general finds that the district has a projected
56	56	ability to pay the principal of and interest on the proposed bonds
57	57	and all previously issued bonds to which Subsection (a) applies
58	58	from a tax at a rate not to exceed $0.45 per $100 of valuation or the
59	59	rate equal to 90 percent of the limitation imposed by Subsection
60	60	(a)(2), as applicable.
61	61	SECTION 2. Subchapter E, Chapter 45, Education Code, is
62	62	amended by adding Section 45.114 to read as follows:
63	63	Sec. 45.114. CAPITAL IMPROVEMENT PLAN. (a) The board of
64	64	trustees of an independent school district with an interest and
65	65	sinking fund tax rate of $0.45 or greater per $100 of valuation
66	66	shall adopt a capital improvement plan that addresses the
67	67	district's needs for additional or renovated facilities.
68	68	(b) The capital improvement plan must include:
69	69	(1) an inventory of the district's existing
70	70	facilities;
71	71	(2) a list of each proposed project for additional or
72	72	renovated facilities, ranked in order of priority and accompanied
73	73	by the following information for each project:
74	74	(A) details explaining the need for the
75	75	additional or renovated facilities;
76	76	(B) a proposed timeline for completion; and
77	77	(C) an estimate of anticipated expenses;
78	78	(3) an assessment of the district's capacity to fund
79	79	the proposed projects; and
80	80	(4) identification of the district's options for
81	81	financing the proposed projects.
82	82	(c) The board shall hold a public meeting on a proposed
83	83	capital improvement plan before adopting the plan and must make the
84	84	proposed plan available to the public for review and comment.
85	85	(d) The board shall adopt the initial capital improvement
86	86	plan not later than the first anniversary of the date on which the
87	87	board adopts an interest and sinking fund tax rate of $0.45 or
88	88	greater per $100 of valuation.
89	89	(e) Until the date on which the district's interest and
90	90	sinking fund tax rate is less than $0.45 per $100 of valuation, the
91	91	board shall annually reevaluate and, if necessary, amend the
92	92	capital improvement plan.
93	93	SECTION 3. Notwithstanding Section 45.114(d), Education
94	94	Code, as added by this Act, the board of trustees of an independent
95	95	school district with an interest and sinking fund tax rate of $0.45
96	96	or greater per $100 of valuation on the effective date of this Act
97	97	shall adopt an initial capital improvement plan not later than the
98	98	first anniversary of the effective date of this Act.
99	99	SECTION 4. This Act takes effect immediately if it receives
100	100	a vote of two-thirds of all the members elected to each house, as
101	101	provided by Section 39, Article III, Texas Constitution. If this
102	102	Act does not receive the vote necessary for immediate effect, this
103	103	Act takes effect September 1, 2015.