| 7 | 2 | | |
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| 8 | 3 | | |
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| 9 | 4 | | A BILL TO BE ENTITLED |
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| 10 | 5 | | AN ACT |
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| 11 | 6 | | relating to the issuance of interest-bearing time warrants by |
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| 12 | 7 | | school districts. |
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| 13 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 14 | 9 | | SECTION 1. Sections 45.103(a) and (c), Education Code, are |
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| 15 | 10 | | amended to read as follows: |
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| 16 | 11 | | (a) Any school district in need of funds to construct, |
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| 17 | 12 | | repair, or renovate school buildings, purchase school buildings and |
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| 18 | 13 | | school equipment, or equip school properties with necessary |
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| 19 | 14 | | heating, water, sanitation, lunchroom, or electric facilities or in |
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| 20 | 15 | | need of funds with which to employ a person who has special skill |
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| 21 | 16 | | and experience to compile taxation data and that is financially |
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| 22 | 17 | | unable out of available funds to construct, repair, renovate, or |
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| 23 | 18 | | purchase school buildings, purchase school equipment, or equip |
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| 24 | 19 | | school properties with necessary heating, water, sanitation, |
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| 25 | 20 | | lunchroom, or electric facilities or is unable to pay the person for |
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| 26 | 21 | | compiling taxation data, may, subject to this section, issue |
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| 27 | 22 | | interest-bearing time warrants, in amounts sufficient to |
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| 28 | 23 | | construct, purchase, equip, or improve school buildings and |
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| 29 | 24 | | facilities or to pay all or part of the compensation of the person |
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| 30 | 25 | | to compile taxation data, any law to the contrary notwithstanding. |
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| 31 | 26 | | The warrants shall mature in serial installments of not more than 20 |
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| 32 | 27 | | [15] years from their date of issue. The warrants on maturity may |
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| 33 | 28 | | be payable out of any available funds of the school district in the |
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| 34 | 29 | | order of their maturity dates. Any interest-bearing time warrants |
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| 35 | 30 | | may be issued and sold by the district for not less than their face |
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| 36 | 31 | | value, and the proceeds used to provide funds required for the |
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| 37 | 32 | | purpose for which they are issued. The warrants shall be entitled |
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| 38 | 33 | | to first payment out of any available funds of the district as they |
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| 39 | 34 | | become due. Included in the purposes for which interest-bearing |
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| 40 | 35 | | time warrants may be issued is the payment of any amounts owed by |
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| 41 | 36 | | the school district that were [was] incurred in carrying out any of |
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| 42 | 37 | | those purposes. |
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| 43 | 38 | | (c) A school district may not issue interest-bearing time |
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| 44 | 39 | | warrants in excess of five percent of the assessed valuation of the |
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| 45 | 40 | | district for the year in which the warrants are issued. The payment |
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| 46 | 41 | | of interest-bearing time warrants in any one year may not exceed the |
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| 47 | 42 | | anticipated surplus income of the district for the year in which the |
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| 48 | 43 | | warrants are issued, based on the budget of the district for that |
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| 49 | 44 | | year. The anticipated income computed under this section is |
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| 50 | 45 | | exclusive of all bond taxes. A school district may not have |
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| 51 | 46 | | outstanding at any one time warrants totaling in excess of $2 [$1] |
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| 52 | 47 | | million under this section. |
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| 53 | 48 | | SECTION 2. This Act takes effect September 1, 2015. |
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