By: Lucio S.B. No. 1568
A BILL TO BE ENTITLED
AN ACT
relating to the issuance of interest-bearing time warrants by
school districts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 45.103(a) and (c), Education Code, are
amended to read as follows:
(a) Any school district in need of funds to construct,
repair, or renovate school buildings, purchase school buildings and
school equipment, or equip school properties with necessary
heating, water, sanitation, lunchroom, or electric facilities or in
need of funds with which to employ a person who has special skill
and experience to compile taxation data and that is financially
unable out of available funds to construct, repair, renovate, or
purchase school buildings, purchase school equipment, or equip
school properties with necessary heating, water, sanitation,
lunchroom, or electric facilities or is unable to pay the person for
compiling taxation data, may, subject to this section, issue
interest-bearing time warrants, in amounts sufficient to
construct, purchase, equip, or improve school buildings and
facilities or to pay all or part of the compensation of the person
to compile taxation data, any law to the contrary notwithstanding.
The warrants shall mature in serial installments of not more than 20
[15] years from their date of issue. The warrants on maturity may
be payable out of any available funds of the school district in the
order of their maturity dates. Any interest-bearing time warrants
may be issued and sold by the district for not less than their face
value, and the proceeds used to provide funds required for the
purpose for which they are issued. The warrants shall be entitled
to first payment out of any available funds of the district as they
become due. Included in the purposes for which interest-bearing
time warrants may be issued is the payment of any amounts owed by
the school district that were [was] incurred in carrying out any of
those purposes.
(c) A school district may not issue interest-bearing time
warrants in excess of five percent of the assessed valuation of the
district for the year in which the warrants are issued. The payment
of interest-bearing time warrants in any one year may not exceed the
anticipated surplus income of the district for the year in which the
warrants are issued, based on the budget of the district for that
year. The anticipated income computed under this section is
exclusive of all bond taxes. A school district may not have
outstanding at any one time warrants totaling in excess of $2 [$1]
million under this section.
SECTION 2. This Act takes effect September 1, 2015.