Texas 2017 - 85th Regular

Texas House Bill HB3438 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		85R23386 KKA-D
2	2		By: Koop, Ashby, VanDeaver H.B. No. 3438
	3	+	Substitute the following for H.B. No. 3438:
	4	+	By: Meyer C.S.H.B. No. 3438
3	5
4	6
5	7		A BILL TO BE ENTITLED
6	8		AN ACT
7	9		relating to the creation of a state financing program administered
8	10		by the Texas Public Finance Authority to assist school districts
9	11		with certain expenses; granting authority to issue bonds or other
10	12		obligations.
11	13		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	14		SECTION 1. Section 45.051, Education Code, is amended to
13	15		read as follows:
14	16		Sec. 45.051. DEFINITIONS. In this subchapter:
15	17		(1) "Authority" means the Texas Public Finance
16	18		Authority.
17	19		(2) "Board" means the State Board of Education.
18	20		(3) [(1-a)] "Charter district" means an
19	21		open-enrollment charter school designated as a charter district
20	22		under Section 12.135.
21	23		(4) [(2)] "Paying agent" means the financial
22	24		institution that is designated by a school district, a [or] charter
23	25		district, or the authority as its agent for the payment of the
24	26		principal of and interest on guaranteed bonds.
25	27		SECTION 2. Section 45.052, Education Code, is amended to
26	28		read as follows:
27	29		Sec. 45.052. GUARANTEE. (a) On approval by the
28	30		commissioner, bonds issued under Subchapter A by a school district,
29	31		[or] Chapter 53 for a charter district, or Section 1232.1031,
30	32		Government Code, by the Texas Public Finance Authority, including
31	33		refunding and refinanced bonds, are guaranteed by the corpus and
32	34		income of the permanent school fund.
33	35		(b) Notwithstanding any amendment of this subchapter or
34	36		other law, the guarantee under this subchapter of school district,
35	37		[or] charter district, or authority bonds remains in effect until
36	38		the date those bonds mature or are defeased in accordance with state
37	39		law.
38	40		(c) In seeking the guarantee of bonds under this subchapter,
39	41		the authority is subject to each provision of this subchapter that
40	42		applies to a school district seeking guarantee of school district
41	43		bonds, except as provided by board rules adopted under Section
42	44		45.063.
43	45		(d) A reference in this subchapter to bonds issued by the
44	46		Texas Public Finance Authority includes short-term debt
45	47		obligations and any other obligations the authority is authorized
46	48		to issue under Section 1232.1031, Government Code.
47	49		SECTION 3. Section 45.063, Education Code, is amended to
48	50		read as follows:
49	51		Sec. 45.063. RULES. The board may adopt rules necessary for
50	52		the administration of the bond guarantee program, including rules
51	53		modifying requirements imposed under this subchapter as necessary
52	54		to facilitate the guarantee of bonds issued by the authority. The
53	55		rules must provide for the application of Sections 45.058, 45.059,
54	56		45.060, 45.061, and 45.062 to a default in the payment of bonds
55	57		issued by the authority and guaranteed under this subchapter in a
56	58		manner that provides for the withholding of state aid under Section
57	59		45.061 that would otherwise be paid to the school district on whose
58	60		behalf the authority issued its bonds.
59	61		SECTION 4. Subchapter E, Chapter 45, Education Code, is
60	62		amended by adding Section 45.116 to read as follows:
61	63		Sec. 45.116. ASSISTANCE FROM TEXAS PUBLIC FINANCE
62	64		AUTHORITY. (a) A school district may:
63	65		(1) borrow money from the Texas Public Finance
64	66		Authority made available in accordance with Section 1232.1031,
65	67		Government Code; and
66	68		(2) as necessary in connection with obtaining loans or
67	69		other financial assistance from the Texas Public Finance Authority
68	70		in accordance with Section 1232.1031, Government Code:
69	71		(A) issue bonds and notes, provided that the term
70	72		of an obligation issued for this purpose may not exceed 15 years;
71	73		and
72	74		(B) enter into loan agreements, lease
73	75		agreements, lease purchase agreements, or other appropriate
74	76		financing agreements with the Texas Public Finance Authority.
75	77		(b) A school district may:
76	78		(1) make payments on an obligation or agreement issued
77	79		or executed under Subsection (a) using any available funds,
78	80		including maintenance and operations tax revenue; and
79	81		(2) secure the payment of an obligation or agreement
80	82		issued or executed under Subsection (a) through:
81	83		(A) creating a lien against equipment obtained
82	84		using the proceeds of the obligation;
83	85		(B) imposing an ad valorem tax otherwise
84	86		authorized by law; or
85	87		(C) obtaining credit enhancement under
86	88		Subchapter I.
87	89		SECTION 5. Section 45.252, Education Code, is amended by
88	90		adding Subsection (a-1) to read as follows:
89	91		(a-1) A school district may apply for credit enhancement
90	92		under this subchapter of obligations issued under Section 45.116.
91	93		SECTION 6. Subchapter C, Chapter 1232, Government Code, is
92	94		amended by adding Section 1232.1031 to read as follows:
93	95		Sec. 1232.1031. ISSUANCE OF OBLIGATIONS TO ASSIST SCHOOL
94	96		DISTRICTS. (a) The authority may issue and sell obligations to
95	97		finance:
96	98		(1) loans to eligible school districts for eligible
97	99		purposes;
98	100		(2) the purchase by the authority of vehicles,
99	101		equipment, or appliances for sale, lease, or lease purchase to
100	102		eligible school districts;
101	103		(3) a lease or other agreement that concerns equipment
102	104		that an eligible school district has purchased or leased or intends
103	105		to purchase or lease; and
104	106		(4) costs associated with maintenance, repair,
105	107		rehabilitation, or renovation of eligible school district
106	108		facilities.
107	109		(b) The authority may use proceeds of obligations issued
108	110		under this section to pay costs of administering this section,
109	111		including costs of issuing obligations.
110	112		(c) In connection with a purchase or project financed with
111	113		the proceeds of obligations issued under this section, the
112	114		authority may:
113	115		(1) enter into loan agreements, lease agreements,
114	116		lease purchase agreements, or other appropriate financing
115	117		agreements with eligible school districts;
116	118		(2) purchase obligations issued by eligible school
117	119		districts; and
118	120		(3) enter into credit agreements and exercise other
119	121		powers granted to issuers under Chapter 1371.
120	122		(d) The authority may secure payment of authority
121	123		obligations issued under this section with the pledge of money in
122	124		the school district equipment and improvement fund established
123	125		under Subsection (e).
124	126		(e) The school district equipment and improvement fund is
125	127		established outside the treasury as a trust fund and is
126	128		administered by the comptroller on behalf of the authority as
127	129		directed or agreed to by the board. The fund consists of proceeds
128	130		of obligations issued by the authority under this section and
129	131		obligations and agreements issued or executed by school districts
130	132		and purchased or funded by the authority with proceeds of authority
131	133		obligations. Money in the fund may be spent without appropriation
132	134		and may be used only to fund activities under this section or to
133	135		secure repayment of authority obligations. Interest and income
134	136		from the assets of the fund shall be credited to and deposited in
135	137		the fund.
136	138		(f) The board may establish funds and accounts determined to
137	139		be necessary or appropriate in connection with the activities of
138	140		the authority under this section.
139	141		(g) The aggregate amount of obligations issued by the
140	142		authority under this section outstanding at one time may not exceed
141	143		$100 million.
142	144		(h) The board shall adopt rules necessary to implement this
143	145		section, including rules prescribing eligibility requirements for
144	146		school districts seeking assistance under this section, rules
145	147		identifying eligible purposes for purposes of Subsection (a)(1),
146	148		and rules identifying eligible school district facilities for
147	149		purposes of Subsection (a)(4). Before adopting or modifying a rule
148	150		under this subsection, the board shall consult with the
149	151		commissioner of education.
150	152		(i) Rules adopted under Subsection (h) may establish a
151	153		process under which a school district must obtain approval by the
152	154		commissioner of education in order to be eligible for assistance
153	155		under this section.
154	156		(j) The authority may not issue an obligation under this
155	157		section on or after September 1, 2021. The prohibition imposed by
156	158		this subsection does not apply to:
157	159		(1) refunding bonds issued by the authority in
158	160		accordance with Chapter 1207; or
159	161		(2) other obligations issued by the authority to
160	162		refinance obligations incurred under this section before September
161	163		1, 2021.
162	164		SECTION 7. This Act takes effect September 1, 2017.