HBA-LCA H.B. 1762 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1762 By: Hill Public Education 4/21/1999 Introduced BACKGROUND AND PURPOSE Current law authorizes the governing board of an independent school district or rural high school, and the commissioners court of a county, to issue negotiable coupon bonds for the construction and equipping of school buildings. H.B. 1762 extends that authorization to the acquisition of school buildings or property and the refinancing of property financed under the Public Property Finance Act. This bill also provides that certain independent school districts and junior college districts must consider, when issuing such bonds, whether the governing board may assess taxes sufficient to pay the principal of and interest on the bonds and costs of any credit agreements executed in connection with the bonds. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 45.001, Education Code, as follows: Sec. 45.001. BONDS AND BOND TAXES. (a) Authorizes the governing board of an independent school district or rural high school, and the commissioners court of a county, to issue negotiable coupon bonds to acquire school buildings in the district, and to acquire or refinance property financed under Subchapter A, Chapter 271, Local Government Code (Public Property Finance Act), regardless of whether payment obligations are due in the current year or a future year. Makes conforming changes. Redesignates Subdivision (B) as Subdivision (C). (b) Creates this subsection from existing text. (c) Authorizes the sale of bonds at public or private sale as determined by the governing board, rather than providing that bonds must be sold at auction. SECTION 2. Amends Subchapter A, Chapter 45, Education Code, by adding Section 45.0011, as follows: Sec. 45.0011. CREDIT AGREEMENTS IN CERTAIN SCHOOL DISTRICTS. (a) Provides that this section applies only to an independent school district that has at least 2,000 students in average daily attendance or a combined aggregate principal of at least $50 million in outstanding and voted but unissued bonds. (b) Authorizes a district, when issuing bonds as provided by Sections 45.001 (Bonds and Bond Taxes) and 45.003(b)(1) (Bond and Tax Elections), Education Code, to exercise the powers granted to the governing body of an issuer under Article 717q, V.T.C.S. Article 717q relates to the issuance of short term obligations. (c) Provides that a proposition to issue bonds under this section must include the question of whether the governing board or commissioners court may assess taxes sufficient, without limit as to rate or amount, to pay the principal of and interest on the bonds, and the costs of any credit agreements executed in connection with the bonds. (d) Provides that Section 6 (Execution of Credit Agreements; Contracts Providing Revenues or Security to Pay Obligations; Review and Approval by Attorney General), Article 717q, V.T.C.S., governs approval by the attorney general of obligations issued under the authority of this section. SECTION 3. Amends Sections 45.103(a) and (b), Education Code, as follows: (a) Authorizes a school district to issue interest-bearing time warrants in the amount necessary to construct school buildings or facilities, in addition to the district's existing authority to issue such warrants to repair, renovate, or equip facilities. Makes conforming changes. (b) Authorizes the issuance of interest-bearing time warrants, under certain conditions, by a common school district or rural high school district for the construction or purchase of school facilities, in addition to the repair, renovation, and equipping of such facilities. SECTION 4. Amends Subchapter G, Chapter 130, Education Code, by adding Section 130.1221, as follows: Sec. 130.1221. CREDIT AGREEMENTS IN CERTAIN JUNIOR COLLEGE DISTRICTS. (a) Provides that this section applies only to a junior college district (district) that has at least 2,000 full-time students or a combined aggregate principal of at least $50 million in outstanding and voted but unissued bonds. (b) Authorizes a district, when issuing bonds as provided by Section 130.122 (Tax Bonds and Maintenance Tax), Education Code, to exercise the powers granted to the governing body of an issuer under Article 717q, V.T.C.S. (c) Provides that a proposition to issue bonds under this section must include the question of whether the governing board may assess taxes sufficient to pay the principal of and interest on the bonds and the costs of any credit agreements executed in connection with the bonds. (d) Provides that Section 6 (Execution of Credit Agreements; Contracts Providing Revenues or Security to Pay Obligations; Review and Approval by Attorney General), Article 717q, V.T.C.S., governs approval by the attorney general of obligations issued under the authority of this section. SECTION 5. Emergency clause. Effective date: upon passage.