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A BILL TO BE ENTITLED
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AN ACT
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relating to the issuance of tax-supported bonds by certain school |
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districts and increasing the tax rate limitation on the issuance of |
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those bonds. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 45.0031, Education Code, is amended by |
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amending Subsections (a) and (e) and adding Subsection (a-1) to |
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read as follows: |
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(a) Before issuing bonds described by Section 45.001, a |
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school district must demonstrate to the attorney general under |
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Subsection (b) or (c) that, with respect to the proposed issuance, |
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the district has a projected ability to pay the principal of and |
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interest on the proposed bonds and all previously issued bonds |
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other than bonds authorized to be issued at an election held on or |
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before April 1, 1991, and issued before September 1, 1992, from a |
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tax at a rate not to exceed: |
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(1) $0.50 per $100 of valuation; or |
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(2) if the district satisfies the requirements |
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prescribed by Subsection (a-1), an amount per $100 of valuation |
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that is 20 percent greater than the limitation imposed by |
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Subdivision (1). |
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(a-1) The limitation imposed by Subsection (a)(2) applies |
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to a school district that: |
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(1) has an interest and sinking fund tax rate of $0.45 |
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or greater per $100 of valuation; |
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(2) is a high enrollment growth district, as |
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determined in accordance with rules of the commissioner adopted |
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under Section 31.0214; |
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(3) has a current Financial Allocation Study for Texas |
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(FAST) rating from the comptroller of at least three stars on a |
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five-star scale, or the equivalent of that rating under any |
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subsequent system developed by the comptroller; |
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(4) has adopted a capital improvement plan in |
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accordance with Section 45.114; and |
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(5) demonstrates to the attorney general that the |
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terms of the proposed issuance will result in total interest costs |
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to the district that are at least five percent less than the total |
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interest costs that would result if the district were to issue an |
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alternate debt instrument that defers interest costs, such as a |
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capital appreciation bond. |
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(e) If a district demonstrates to the attorney general the |
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district's ability to comply with Subsection (a) using a projected |
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future taxable value of property under Subsection (c) and |
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subsequently imposes a tax to pay the principal of and interest on |
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bonds to which Subsection (a) applies at a rate that exceeds the |
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applicable limitation [limit] imposed by Subsection (a), the |
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attorney general may not approve a subsequent issuance of bonds |
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unless the attorney general finds that the district has a projected |
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ability to pay the principal of and interest on the proposed bonds |
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and all previously issued bonds to which Subsection (a) applies |
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from a tax at a rate not to exceed $0.45 per $100 of valuation or the |
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rate equal to 90 percent of the limitation imposed by Subsection |
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(a)(2), as applicable. |
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SECTION 2. Subchapter E, Chapter 45, Education Code, is |
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amended by adding Section 45.114 to read as follows: |
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Sec. 45.114. CAPITAL IMPROVEMENT PLAN. (a) The board of |
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trustees of an independent school district with an interest and |
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sinking fund tax rate of $0.45 or greater per $100 of valuation |
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shall adopt a capital improvement plan that addresses the |
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district's needs for additional or renovated facilities. |
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(b) The capital improvement plan must include: |
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(1) an inventory of the district's existing |
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facilities; |
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(2) a list of each proposed project for additional or |
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renovated facilities, ranked in order of priority and accompanied |
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by the following information for each project: |
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(A) details explaining the need for the |
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additional or renovated facilities; |
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(B) a proposed timeline for completion; and |
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(C) an estimate of anticipated expenses; |
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(3) an assessment of the district's capacity to fund |
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the proposed projects; and |
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(4) identification of the district's options for |
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financing the proposed projects. |
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(c) The board shall hold a public meeting on a proposed |
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capital improvement plan before adopting the plan and must make the |
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proposed plan available to the public for review and comment. |
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(d) The board shall adopt the initial capital improvement |
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plan not later than the first anniversary of the date on which the |
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board adopts an interest and sinking fund tax rate of $0.45 or |
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greater per $100 of valuation. |
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(e) Until the date on which the district's interest and |
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sinking fund tax rate is less than $0.45 per $100 of valuation, the |
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board shall annually reevaluate and, if necessary, amend the |
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capital improvement plan. |
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SECTION 3. Notwithstanding Section 45.114(d), Education |
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Code, as added by this Act, the board of trustees of an independent |
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school district with an interest and sinking fund tax rate of $0.45 |
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or greater per $100 of valuation on the effective date of this Act |
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shall adopt an initial capital improvement plan not later than the |
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first anniversary of the effective date of this Act. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2015. |