Bill Text: TX HB2168 | 2011-2012 | 82nd Legislature | Introduced


Bill Title: Relating to limitations on issuance by school districts of tax-supported bonds.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2011-03-08 - Referred to Public Education [HB2168 Detail]

Download: Texas-2011-HB2168-Introduced.html
  82R6480 CAS-F
 
  By: Aycock H.B. No. 2168
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to limitations on issuance by school districts of
  tax-supported bonds.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter A, Chapter 45, Education Code, is
  amended by adding Section 45.0035 to read as follows:
         Sec. 45.0035.  LIMITATIONS ON ISSUANCE OF TAX-SUPPORTED
  BONDS.  (a) Except as otherwise provided by this subsection, a
  school district's local bonded indebtedness limit is an amount
  equal to 10 percent of the assessed valuation of taxable property in
  the district according to the most recent certified ad valorem tax
  rolls of the district. For a district with a student enrollment of
  less than 4,000, the district's local bonded indebtedness limit is
  an amount equal to 12 percent of the assessed valuation of taxable
  property in the district according to the most recent certified ad
  valorem tax rolls of the district. For a district that has had a
  student enrollment growth of at least 15 percent over the
  three-year period preceding the year in which bonds are issued, the
  district's local bonded indebtedness limit is the otherwise
  applicable limit computed under this subsection plus an amount
  equal to the product of 10 percent of the student enrollment growth
  rate for that three-year period multiplied by the assessed
  valuation of taxable property in the district.
         (b)  A school district's state funding percentage is the
  quotient of the amount of state assistance received by the district
  under Chapter 46 for the payment of debt service for the preceding
  school year divided by the aggregate amount of debt service paid on
  the district's bonded indebtedness for the preceding school year,
  expressed as a percentage.
         (c)  A school district's adjusted local bonded indebtedness
  limit is an amount equal to the sum of:
               (1)  the district's applicable local bonded
  indebtedness limit as computed under Subsection (a); and
               (2)  an amount equal to the product of 20 percent of the
  district's state funding percentage as computed under Subsection
  (b) multiplied by the assessed valuation of taxable property in the
  district.
         (d)  A school district may issue bonds described by Section
  45.001 only if:
               (1)  after the issuance of those bonds, the aggregate
  principal amount of the district's outstanding bonded indebtedness
  would not exceed the district's adjusted local bonded indebtedness
  limit as determined under Subsection (c); and
               (2)  the district has adopted:
                     (A)  a debt management policy as provided by
  Subsection (e); and
                     (B)  a capital improvement plan as provided by
  Subsection (f).
         (e)  A school district's debt management policy as required
  by Subsection (d)(2)(A) must:
               (1)  address the district's ability to:
                     (A)  maintain financial stability;
                     (B)  provide debt management flexibility;
                     (C)  meet future facility needs;
                     (D)  maintain public trust;
                     (E)  minimize costs to taxpayers;
                     (F)  maintain access to capital markets; and
                     (G)  receive the highest ratings on district bonds
  from independent credit rating agencies; and
               (2)  demonstrate to taxpayers administrative oversight
  of bond programs.
         (f)  A school district's capital improvement plan as
  required under Subsection (d)(2)(B) must:
               (1)  address the location, timing, and financing of
  district capital improvements over a multiyear period of not less
  than five years;
               (2)  describe:
                     (A)  significant, nonrecurring expenditures for
  real property, improvements to real property, and equipment for the
  improvements; and
                     (B)  intended financing sources and development
  schedules for capital improvement projects; and
               (3)  be reviewed at an annual public hearing provided
  by the district.
         (g)  In addition to the limitation imposed by Subsection (d),
  a school district may not issue bonds described by Section 45.001
  for the construction, acquisition, or equipping of an athletic
  facility designed to be used primarily for a purpose other than for
  teaching the curriculum required under Section 28.002 if, after the
  issuance of those bonds, the aggregate principal amount of
  outstanding bonds issued after September 1, 2011, for such a
  purpose would exceed an amount equal to 10 percent of the district's
  adjusted local bonded indebtedness limit as computed under
  Subsection (c).
         (h)  For purposes of this section, the amount of a school
  district's bonded indebtedness does not include the amount of any
  bonded indebtedness resulting from the issuance of bonds for the
  construction, acquisition, or equipping of a school building to
  replace a school building lost due to fire or a natural disaster,
  less any amount paid by insurance covering the loss.
         SECTION 2.  Section 45.0031, Education Code, is repealed.
         SECTION 3.  Section 45.0035, Education Code, as added by
  this Act, applies to school district bonds issued on or after the
  effective date of this Act, regardless of whether the bonds were
  approved by voters before, on, or after the effective date of this
  Act. School district bonds approved by voters and issued before the
  effective date of this Act are governed by the law in effect on the
  date the bonds were issued, and that law is continued in effect for
  that purpose.
         SECTION 4.  This Act takes effect September 1, 2011.
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