Texas 2025 - 89th Regular

Texas Senate Bill SB2842 Compare Versions

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

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1	1	By: Hinojosa of Nueces S.B. No. 2842
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6	6	A BILL TO BE ENTITLED
7	7	AN ACT
8	8	relating to prohibiting a school district from using interest and
9	9	sinking tax revenue to pay for deferred maintenance.
10	10	SECTION 1. Section 45.001, Education Code, is amended by
11	11	amending Subsection (a) to read as follows:
12	12	Sec. 45.001. BONDS AND BOND TAXES. (a) The governing board
13	13	of an independent school district, including the city council or
14	14	commission that has jurisdiction over a municipally controlled
15	15	independent school district, the governing board of a rural high
16	16	school district, and the commissioners court of a county, on behalf
17	17	of each common school district under its jurisdiction, may:
18	18	(1) issue bonds for:
19	19	(A) the construction, acquisition, and equipment
20	20	of school buildings in the district;
21	21	(B) the acquisition of property or the
22	22	refinancing of property financed under a contract entered under
23	23	Subchapter A, Chapter 271, Local Government Code, regardless of
24	24	whether payment obligations under the contract are due in the
25	25	current year or a future year;
26	26	(C) the purchase of the necessary sites for
27	27	school buildings;
28	28	(D) the purchase of new school buses;
29	29	(E) the retrofitting of school buses with
30	30	emergency, safety, or security equipment; and
31	31	(F) the purchase or retrofitting of vehicles to
32	32	be used for emergency, safety, or security purposes; and
33	33	(2) levy, pledge, assess, and collect annual ad
34	34	valorem taxes sufficient to pay the principal of and interest on the
35	35	bonds as or before the principal and interest become due, subject to
36	36	Section 45.003.
37	37	(b) The bonds must mature serially or otherwise not more
38	38	than 40 years from their date. The bonds may be made redeemable
39	39	before maturity.
40	40	(c) Bonds may be sold at public or private sale as
41	41	determined by the governing board of the district.
42	42	(d) Bonds may not be issued to pay for:
43	43	(1) any item or asset with less than a 10-year useful
44	44	life span; or
45	45	(2) the maintenance of school facilities including
46	46	preventive maintenance; replacement of parts, systems, or
47	47	components; and other activities needed to preserve or maintain the
48	48	asset.
49	49	SECTION 2. Section 45.0031, Education Code, is amended by
50	50	adding Subsection (a-1) to read as follows:
51	51	Sec. 45.0031. LIMITATION ON ISSUANCE OF TAX-SUPPORTED
52	52	BONDS. (a) Before issuing bonds described by Section 45.001, a
53	53	school district must demonstrate to the attorney general under
54	54	Subsection (b) or (c) that, with respect to the proposed issuance,
55	55	the district has a projected ability to pay the principal of and
56	56	interest on the proposed bonds and all previously issued bonds
57	57	other than bonds authorized to be issued at an election held on or
58	58	before April 1, 1991, and issued before September 1, 1992, from a
59	59	tax at a rate not to exceed $0.50 per $100 of valuation.
60	60	(a-1) In addition to Subsection (a), a school district must
61	61	demonstrate the bonds are not in violation of Section 45.001(d).
62	62	(b) A district may demonstrate the ability to comply with
63	63	Subsection (a) by using the most recent taxable value of property in
64	64	the district, combined with state assistance to which the district
65	65	is entitled under Chapter 46 or 48 that may be lawfully used for the
66	66	payment of bonds.
67	67	(c) A district may demonstrate the ability to comply with
68	68	Subsection (a) by using a projected future taxable value of
69	69	property in the district anticipated for the earlier of the tax year
70	70	five years after the current tax year or the tax year in which the
71	71	final payment is due for the bonds submitted to the attorney
72	72	general, combined with state assistance to which the district is
73	73	entitled under Chapter 46 or 48 that may be lawfully used for the
74	74	payment of bonds. The district must submit to the attorney general
75	75	a certification of the district's projected taxable value of
76	76	property that is prepared by a registered professional appraiser
77	77	certified under Chapter 1151, Occupations Code, who has
78	78	demonstrated professional experience in projecting taxable values
79	79	of property or who can by contract obtain any necessary assistance
80	80	from a person who has that experience. To demonstrate the
81	81	professional experience required by this subsection, a registered
82	82	professional appraiser must provide to the district written
83	83	documentation relating to two previous projects for which the
84	84	appraiser projected taxable values of property. Until the bonds
85	85	submitted to the attorney general are approved or disapproved, the
86	86	district must maintain the documentation and on request provide the
87	87	documentation to the attorney general or comptroller. The
88	88	certification of the district's projected taxable value of property
89	89	must be signed by the district's superintendent. The attorney
90	90	general must base a determination of whether the district has
91	91	complied with Subsection (a) on a taxable value of property that is
92	92	equal to 90 percent of the value certified under this subsection.
93	93	(d) A district that demonstrates to the attorney general
94	94	that the district's ability to comply with Subsection (a) is
95	95	contingent on receiving state assistance may not adopt a tax rate
96	96	for a year for purposes of paying the principal of and interest on
97	97	the bonds unless the district credits to the account of the interest
98	98	and sinking fund of the bonds the amount of state assistance equal
99	99	to the amount needed to demonstrate compliance and received or to be
100	100	received in that year.
101	101	(e) If a district demonstrates to the attorney general the
102	102	district's ability to comply with Subsection (a) using a projected
103	103	future taxable value of property under Subsection (c) and
104	104	subsequently imposes a tax to pay the principal of and interest on
105	105	bonds to which Subsection (a) applies at a rate that exceeds the
106	106	limit imposed by Subsection (a), the attorney general may not
107	107	approve a subsequent issuance of bonds unless the attorney general
108	108	finds that the district has a projected ability to pay the principal
109	109	of and interest on the proposed bonds and all previously issued
110	110	bonds to which Subsection (a) applies from a tax at a rate not to
111	111	exceed $0.45 per $100 of valuation.
112	112	SECTION 3. This Act takes effect September 1, 2025.