Texas 2015 - 84th Regular

Texas Senate Bill SB315 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	84R2995 GCB-D
2	2	By: Hinojosa S.B. No. 315
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the issuance of tax-supported bonds by certain school
8	8	districts and increasing the tax rate limitation on the issuance of
9	9	those bonds.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 45.0031, Education Code, is amended by
12	12	amending Subsections (a) and (e) and adding Subsection (a-1) to
13	13	read as follows:
14	14	(a) Before issuing bonds described by Section 45.001, a
15	15	school district must demonstrate to the attorney general under
16	16	Subsection (b) or (c) that, with respect to the proposed issuance,
17	17	the district has a projected ability to pay the principal of and
18	18	interest on the proposed bonds and all previously issued bonds
19	19	other than bonds authorized to be issued at an election held on or
20	20	before April 1, 1991, and issued before September 1, 1992:
21	21	(1) for a school district described by Subsection
22	22	(a-1), from a tax at a rate not to exceed an amount per $100 of
23	23	valuation that is 20 percent greater than the limitation imposed by
24	24	Subdivision (2); or
25	25	(2) for any other school district, from a tax at a rate
26	26	not to exceed $0.50 per $100 of valuation.
27	27	(a-1) Subsection (a)(1) applies to a school district that:
28	28	(1) has an interest and sinking fund tax rate of $0.45
29	29	or greater per $100 of valuation;
30	30	(2) has adopted a capital improvement plan in
31	31	accordance with Section 45.114;
32	32	(3) is a high enrollment growth district, as
33	33	determined by the commissioner in accordance with Section 31.0214;
34	34	(4) has a current Financial Allocation Study for Texas
35	35	(FAST) rating from the comptroller of at least three stars on a
36	36	five-star scale, or the equivalent of that rating under any
37	37	subsequent system developed by the comptroller; and
38	38	(5) demonstrates to the attorney general that the
39	39	terms of the proposed issuance will result in total savings of at
40	40	least five percent of the tax proceeds required to pay the principal
41	41	and interest in comparison to the tax proceeds that would be
42	42	required to pay the principal and interest if the district were to
43	43	issue an alternate debt instrument that defers interest costs, such
44	44	as a capital appreciation bond.
45	45	(e) If a district demonstrates to the attorney general the
46	46	district's ability to comply with Subsection (a) using a projected
47	47	future taxable value of property under Subsection (c) and
48	48	subsequently imposes a tax to pay the principal of and interest on
49	49	bonds to which Subsection (a) applies at a rate that exceeds the
50	50	applicable limitation [limit] imposed by Subsection (a), the
51	51	attorney general may not approve a subsequent issuance of bonds
52	52	unless the attorney general finds that the district has a projected
53	53	ability to pay the principal of and interest on the proposed bonds
54	54	and all previously issued bonds to which Subsection (a) applies
55	55	from a tax at a rate not to exceed $0.45 per $100 of valuation or the
56	56	rate equal to 90 percent of the limitation imposed by Subsection
57	57	(a)(1), as applicable.
58	58	SECTION 2. Subchapter E, Chapter 45, Education Code, is
59	59	amended by adding Section 45.114 to read as follows:
60	60	Sec. 45.114. CAPITAL IMPROVEMENT PLAN. (a) The board of
61	61	trustees of an independent school district with an interest and
62	62	sinking fund tax rate of $0.45 or greater per $100 of valuation
63	63	shall adopt a capital improvement plan that addresses the
64	64	district's needs for additional or renovated facilities.
65	65	(b) The capital improvement plan must include:
66	66	(1) an inventory of the district's existing
67	67	facilities;
68	68	(2) a list of each proposed project for additional or
69	69	renovated facilities, ranked in order of priority and accompanied
70	70	by the following information for each project:
71	71	(A) details explaining the need for the
72	72	additional or renovated facilities;
73	73	(B) a proposed timeline for completion; and
74	74	(C) an estimate of anticipated expenses;
75	75	(3) an assessment of the district's capacity to fund
76	76	the proposed projects; and
77	77	(4) identification of the district's options for
78	78	financing the proposed projects.
79	79	(c) The board shall hold a public meeting on a proposed
80	80	capital improvement plan before adopting the plan and must make the
81	81	proposed plan available to the public for review and comment.
82	82	(d) The board shall adopt the initial capital improvement
83	83	plan not later than the first anniversary of the date on which the
84	84	board adopts an interest and sinking fund tax rate of $0.45 or
85	85	greater per $100 of valuation.
86	86	(e) Until the date on which the district's interest and
87	87	sinking fund tax rate is less than $0.45 per $100 of valuation, the
88	88	board shall annually reevaluate and, if necessary, amend the
89	89	capital improvement plan.
90	90	SECTION 3. Notwithstanding Section 45.114(d), Education
91	91	Code, as added by this Act, the board of trustees of an independent
92	92	school district with an interest and sinking fund tax rate of $0.45
93	93	or greater per $100 of valuation on the effective date of this Act
94	94	shall adopt an initial capital improvement plan not later than the
95	95	first anniversary of the effective date of this Act.
96	96	SECTION 4. This Act takes effect immediately if it receives
97	97	a vote of two-thirds of all the members elected to each house, as
98	98	provided by Section 39, Article III, Texas Constitution. If this
99	99	Act does not receive the vote necessary for immediate effect, this
100	100	Act takes effect September 1, 2015.