84R18202 KKA-F
	By: Rodriguez of Travis	H.B. No. 506
	Substitute the following for H.B. No. 506:
	By:  Aycock	C.S.H.B. No. 506

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