EDUCATION CODE
CHAPTER 45. SCHOOL DISTRICT FUNDS
SUBCHAPTER A. TAX BONDS AND MAINTENANCE TAXES
§ 45.001. BONDS AND BOND TAXES. (a) The governing
board of an independent school district, including the city council
or commission that has jurisdiction over a municipally controlled
independent school district, the governing board of a rural high
school district, and the commissioners court of a county, on behalf
of each common school district under its jurisdiction, may:
(1) issue bonds for:
(A) the construction, acquisition, and equipment
of school buildings in the district;
(B) the acquisition of property or the
refinancing of property financed under a contract entered under
Subchapter A, Chapter 271, Local Government Code, regardless of
whether payment obligations under the contract are due in the
current year or a future year;
(C) the purchase of the necessary sites for
school buildings; and
(D) the purchase of new school buses; and
(2) may levy, pledge, assess, and collect annual ad
valorem taxes sufficient to pay the principal of and interest on the
bonds as the principal and interest become due, subject to Section
45.003.
(b) The bonds must mature serially or otherwise not more
than 40 years from their date. The bonds may be made redeemable
before maturity.
(c) Bonds may be sold at public or private sale as
determined by the governing board of the district.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 1999, 76th Leg., ch. 1536, § 1, eff. June 19,
1999; Acts 2001, 77th Leg., ch. 1500, § 1, eff. June 17, 2001.
§ 45.0011. CREDIT AGREEMENTS IN CERTAIN SCHOOL
DISTRICTS. (a) This section applies only to an independent
school district that, at the time of the issuance of obligations and
execution of credit agreements under this section, has:
(1) at least 2,000 students in average daily
attendance; or
(2) a combined aggregate principal amount of at least
$50 million of outstanding bonds and voted but unissued bonds.
(b) A district to which this section applies may, in the
issuance of bonds as provided by Sections 45.001 and 45.003(b)(1),
exercise the powers granted to the governing body of an issuer with
regard to the issuance of obligations and execution of credit
agreements under Chapter 1371, Government Code.
(c) A proposition to issue bonds to which this section
applies must, in addition to meeting the requirements of Section
45.003(b)(1), include the question of whether the governing board
or commissioners court may levy, pledge, assess, and collect annual
ad valorem taxes, on all taxable property in the district,
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) A district may not issue bonds to which this section
applies in an amount greater than the greater of:
(1) 25 percent of the sum of:
(A) the aggregate principal amount of all
district debt payable from ad valorem taxes that is outstanding at
the time the bonds are issued; and
(B) the aggregate principal amount of all bonds
payable from ad valorem taxes that have been authorized but not
issued;
(2) $25 million, in a district that has at least 3,500
but not more than 15,000 students in average daily attendance; or
(3) $50 million, in a district that has more than
15,000 students in average daily attendance.
(e) In this section, average daily attendance is determined
in the manner provided by Section 42.005.
(f) Sections 1371.057 and 1371.059, Government Code, govern
approval by the attorney general of obligations issued under the
authority of this section.
Added by Acts 1999, 76th Leg., ch. 1536, § 2, eff. June 19, 1999.
Amended by Acts 2001, 77th Leg., ch. 1420, § 8.207, eff. Sept. 1,
2001.
§ 45.002. MAINTENANCE TAXES.
Acts 2003, 78th Leg., ch. 201, § 1(2) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
The governing board of an independent school district,
including the city council or commission that has jurisdiction over
a municipally controlled independent school district, the
governing board of a rural high school district, and the
commissioners court of a county, on behalf of each common school
district under its jurisdiction, may levy, assess, and collect
annual ad valorem taxes for the further maintenance of public
schools in the district, subject to Section 45.003.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.003. BOND AND TAX ELECTIONS. (a) Bonds described
by Section 45.001 may not be issued and taxes described by Section
45.001 or 45.002 may not be levied unless authorized by a majority
of the qualified voters of the district, voting at an election held
for that purpose, at the expense of the district, in accordance with
the Election Code, except as provided by this section. Each
election must be called by resolution or order of the governing
board or commissioners court. The resolution or order must state
the date of the election, the proposition or propositions to be
submitted and voted on, the polling place or places, and any other
matters considered necessary or advisable by the governing board or
commissioners court.
(b) A proposition submitted to authorize the issuance of
bonds must include the question of whether the governing board or
commissioners court may levy, pledge, assess, and collect annual ad
valorem taxes, on all taxable property in the district, either:
(1) sufficient, without limit as to rate or amount, to
pay the principal of and interest on the bonds; or
(2) sufficient to pay the principal of and interest on
the bonds, provided that the annual aggregate bond taxes in the
district may never be more than the rate stated in the proposition.
(c) If bonds are ever voted in a district pursuant to
Subsection (b)(1), then all bonds thereafter proposed must be
submitted pursuant to that subsection, and Subsection (b)(2) does
not apply to the district.
(d) A proposition submitted to authorize the levy of
maintenance taxes must include the question of whether the
governing board or commissioners court may levy, assess, and
collect annual ad valorem taxes for the further maintenance of
public schools, at a rate not to exceed the rate, which may be not
more than $1.50 on the $100 valuation of taxable property in the
district, stated in the proposition.
(e) Repealed by Acts 2001, 77th Leg., ch. 678, § 2, eff.
Sept. 1, 2001.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 1997, 75th Leg., ch. 1071, § 22, eff. Sept. 1,
1997; Acts 2001, 77th Leg., ch. 678, § 2, eff. Sept. 1, 2001.
§ 45.0031. LIMITATION ON ISSUANCE OF TAX-SUPPORTED
BONDS. (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 $0.50 per $100 of valuation.
(b) A district may demonstrate the ability to comply with
Subsection (a) by using the most recent taxable value of property in
the district, combined with state assistance to which the district
is entitled under Chapter 42 or 46 that may be lawfully used for the
payment of bonds.
(c) A district may demonstrate the ability to comply with
Subsection (a) by using a projected future taxable value of
property in the district anticipated for the earlier of the tax year
five years after the current tax year or the tax year in which the
final payment is due for the bonds submitted to the attorney
general, combined with state assistance to which the district is
entitled under Chapter 42 or 46 that may be lawfully used for the
payment of bonds. The district must submit to the attorney general
a certification of the district's projected taxable value of
property that is prepared by a registered professional appraiser
certified under Chapter 1151, Occupations Code, who has
demonstrated professional experience in projecting taxable values
of property or who can by contract obtain any necessary assistance
from a person who has that experience. To demonstrate the
professional experience required by this subsection, a registered
professional appraiser must provide to the district written
documentation relating to two previous projects for which the
appraiser projected taxable values of property. Until the bonds
submitted to the attorney general are approved or disapproved, the
district must maintain the documentation and on request provide the
documentation to the attorney general or comptroller. The
certification of the district's projected taxable value of property
must be signed by the district's superintendent. The attorney
general must base a determination of whether the district has
complied with Subsection (a) on a taxable value of property that is
equal to 90 percent of the value certified under this subsection.
(d) A district that demonstrates to the attorney general
that the district's ability to comply with Subsection (a) is
contingent on receiving state assistance may not adopt a tax rate
for a year for purposes of paying the principal of and interest on
the bonds unless the district credits to the account of the interest
and sinking fund of the bonds the amount of state assistance equal
to the amount needed to demonstrate compliance and received or to be
received in that year.
(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
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.
Added by Acts 2001, 77th Leg., ch. 678, § 1, eff. Sept. 1, 2001.
Amended by Acts 2003, 78th Leg., ch. 1276, § 14A.762, eff. Sept.
1, 2003.
§ 45.004. REFUNDING BONDS. (a) In this section:
(1) "Bond" includes a note or other evidence of
indebtedness.
(2) "Total debt service" means the amount of principal
and unpaid interest on a bond to final maturity.
(b) Each governing board or commissioners court described
by Section 45.001 may refund or refinance all or any part of any of
the district's outstanding bonds and matured or unmatured but
unpaid interest on those bonds payable from ad valorem taxes by
issuing refunding bonds payable from ad valorem taxes.
(c) A series or issue of refunding bonds may not be issued
unless:
(1) the total debt service on the refunding bonds will
amount to less than the total debt service on the bonds being
refunded;
(2) if a maximum interest rate was voted for the bonds
being refunded, the refunding bonds do not bear interest at a rate
higher than that maximum rate; and
(3) the refunding bonds are payable from taxes of the
same nature as those pledged to the payment of the obligations being
refunded.
(d) Refunding bonds may be made redeemable before maturity.
(e) The refunding bonds may be:
(1) issued and delivered in lieu of, and on surrender
to the comptroller and cancellation of, the obligations being
refunded, and the comptroller shall register the refunding bonds
and deliver them in accordance with the resolution or order
authorizing the refunding bonds; or
(2) sold for cash in any principal amounts necessary
to provide all or any part of the money required to:
(A) pay the principal of any bonds being refunded
and the interest to accrue on the bonds to maturity; or
(B) redeem any bonds being refunded before
maturity, including principal, any required redemption premium,
and the interest to accrue on the bonds to the redemption date.
(f) The refunding may be accomplished in one or in several
installment deliveries. Refunding bonds also may be issued and
delivered in accordance with any other applicable law.
(g) To refund bonds or to pay or redeem bonds in whole or in
part without issuing refunding bonds, the governing board or
commissioners court may deposit directly with the paying agent the
proceeds from the sale of refunding bonds or any other available
funds or resources. The deposit must be in an amount sufficient,
after taking into account both the principal and interest to accrue
on the assets of any escrow account created under Subsection (h), to
provide for the payment or redemption of the bonds and assumed
obligations that are to be refunded or to be paid or redeemed. The
deposit constitutes the making of firm banking and financial
arrangements for the discharge and final payment or redemption of
the bonds being refunded.
(h) The governing board or commissioners court may enter
into an escrow or a similar agreement with the paying agent with
respect to the safekeeping, investment, reinvestment,
administration, or disposition of the deposits, but the deposits
may be invested and reinvested only in direct obligations of the
United States, including obligations the principal of and interest
on which are unconditionally guaranteed by the United States and
that mature or bear interest payable at times and in amounts
sufficient to provide for the scheduled payment or redemption of
the bonds. The governing board or commissioners court shall enter
into an appropriate escrow or a similar agreement if any of the
bonds are scheduled to be paid or redeemed on a date later than the
next succeeding scheduled interest payment date.
(i) If the governing body or commissioners court has entered
into an escrow or a similar agreement under Subsection (h), the
refunded bonds are considered to be defeased and may not be included
in or considered to be an indebtedness of the district for the
purpose of a limitation on outstanding indebtedness or taxation or
for any other purpose.
(j) Refunding bonds may be issued under this section to
refund any bonds that are scheduled to mature or that are subject to
redemption before maturity, not more than 20 years from the date of
the refunding bonds. The refunding bonds may be sold at public or
private sale under the procedures, at the price, and on the terms
determined by the governing board or commissioners court. In
addition, the bonds may be sold bearing interest at the rate
determined by the governing board or commissioners court, but not
to exceed the maximum rate prescribed by Chapter 1204, Government
Code. The governing board or commissioners court may pledge to the
payment of any refunding bonds any surplus income to be available
from the investment or reinvestment of any deposit made as
authorized by this section or any other available revenues, income,
or resources.
(k) The refunding bonds may be issued in an additional
amount sufficient to pay the costs and expenses of issuing the bonds
and sufficient to fund any debt service reserve, contingency, or
other similar fund considered necessary or advisable by the
governing board or commissioners court.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 2001, 77th Leg., ch. 1420, § 8.208, eff. Sept. 1,
2001.
§ 45.005. EXAMINATION OF BONDS BY ATTORNEY GENERAL. All
bonds issued pursuant to this subchapter, and the appropriate
proceedings authorizing their issuance, shall be submitted to the
attorney general for examination.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.006. MAINTENANCE TAX REQUIRED FOR JUDGMENT ORDERING
AD VALOREM TAX REFUND; BONDS. (a) This section applies only to a
school district that:
(1) has an average daily attendance of less than
10,000; and
(2) is located in whole or part in a municipality with
a population of less than 25,000 that is located in a county with a
population of 200,000 or more bordering another county with a
population of 2.8 million or more.
(b) Notwithstanding Section 45.003, a school district may
levy, assess, and collect maintenance taxes at a rate that exceeds
$1.50 per $100 valuation of taxable property if:
(1) additional ad valorem taxes are necessary to pay a
debt of the district that:
(A) resulted from the rendition of a judgment
against the district before May 1, 1995;
(B) is greater than $5 million;
(C) decreases a property owner's ad valorem tax
liability;
(D) requires the district to refund to the
property owner the difference between the amount of taxes paid by
the property owner and the amount of taxes for which the property
owner is liable; and
(E) is payable according to the judgment in more
than one of the district's fiscal years; and
(2) the additional taxes are approved by the voters of
the district at an election held for that purpose.
(c) Except as provided by Subsection (e), any additional
maintenance taxes that the district collects under this section may
be used only to pay the district's debt under Subsection (b)(1).
(d) Except as provided by Subsection (e), the authority of a
school district to levy the additional ad valorem taxes under this
section expires when the judgment against the district is paid.
(e) The governing body of a school district shall pay the
district's debt under Subsection (b)(1) in a lump sum. To satisfy
the district's debt under Subsection (b)(1), the governing body may
levy and collect additional maintenance taxes as provided by
Subsection (b) and may issue bonds. If bonds are issued:
(1) the district may use any additional maintenance
taxes collected by the district under this section to pay debt
service on the bonds; and
(2) the authority of the district to levy the
additional ad valorem taxes expires when the bonds are paid in full
or the judgment is paid, whichever occurs later.
(f) The governing body of a school district that adopts a
tax rate that exceeds $1.50 per $100 valuation of taxable property
may set the amount of the exemption from taxation authorized by
Section 11.13(n), Tax Code, at any time before the date the
governing body adopts the district's tax rate for the tax year in
which the election approving the additional taxes is held.
(g) The authority to issue bonds granted by this section
expires June 1, 1996.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
SUBCHAPTER B. REVENUE BONDS
§ 45.031. GYMNASIA, STADIA, AND OTHER RECREATIONAL
FACILITIES. The governing board of an independent school
district, including the city council or commission that has
jurisdiction over a municipally controlled independent school
district, the governing board of a rural high school district, and
the commissioners court of a county, on behalf of each common school
district under its jurisdiction, may acquire, construct, improve,
equip, operate, and maintain gymnasia, stadia, or other
recreational facilities for and on behalf of its district. The
facilities may be located inside or outside of the district.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.032. REVENUE BONDS. To provide funds to acquire,
construct, improve, or equip gymnasia, stadia, or other
recreational facilities, the board, city council or commission, or
commissioners court may issue revenue bonds payable from and
secured by liens on and pledges of all or any part of any of the
revenues from any rentals, rates, charges, or other revenues from
any or all of the facilities, in the manner provided by this
subchapter. The bonds may be additionally secured by mortgages and
deeds of trust on any real property on which any of the facilities
are or will be located, or any real or personal property incident or
appurtenant to the facilities, and the board, city council or
commission, or commissioners court may authorize the execution and
delivery of trust indentures, mortgages, deeds of trust, or other
forms of encumbrances to evidence those liens. The bonds may be
issued to mature serially or otherwise not to exceed 50 years from
their date. In the authorization of any of those bonds, the board,
city council or commission, or commissioners court may provide for
the subsequent issuance of additional parity bonds, or subordinate
lien bonds, or other types of bonds, under the terms set forth in
the resolution or order authorizing the issuance of the bonds, all
within the discretion of the board, city council or commission, or
commissioners court. The bonds may be made redeemable before
maturity. The bonds may be sold in the manner, at the price, and
under the terms provided by the board, city council or commission,
or commissioners court in the resolution or order authorizing the
issuance of the bonds. If permitted by the bond resolution or
order, any required part of the proceeds from the sale of the bonds
may be:
(1) used for paying interest on the bonds during the
period of the construction of any facilities to be provided through
the issuance of the bonds;
(2) used for paying the operation and maintenance
expenses of facilities to the extent and for the period specified in
the bond resolution;
(3) used for creating reserves for the payment of the
principal of and interest on the bonds; or
(4) invested, until needed, to the extent and in the
manner provided in the bond resolution or order.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.033. RENTALS, RATES, AND CHARGES. The board, city
council or commission, or commissioners court may set and collect
rentals, rates, and charges from students and others for the
occupancy or use of any of the facilities, in the amounts and manner
determined by the board, city council or commission, or
commissioners court.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.034. PLEDGE OF REVENUES. The board, city council
or commission, or commissioners court may pledge all or any part of
any of its revenues from the facilities to the payment of any bonds
issued under this subchapter, including the payment of principal,
interest, and any other amounts required or permitted in connection
with the bonds. If revenues from the facilities are pledged to the
payment of bonds, the rentals, rates and charges for the occupancy
or use of the facilities must be fixed and collected in amounts at
least sufficient to provide for all payments of principal,
interest, and any other amounts required in connection with the
bonds, and, to the extent required by the resolution or order
authorizing the issuance of the bonds, to provide for the payment of
operation, maintenance, and other expenses.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.035. REFUNDING BONDS. Revenue bonds issued by a
board, city council or commission, or commissioners court under
this subchapter and revenue bonds issued by a board, city council or
commission, or commissioners court under other law and payable from
revenues from facilities described by Section 45.031 may be
refunded or otherwise refinanced by the board, city council or
commission, or commissioners court, and in that case all
appropriate provisions of this subchapter apply to the refunding
bonds. In refunding or otherwise refinancing any such bonds, the
board, city council or commission, or commissioners court may, in
the same authorizing proceedings, refund or refinance bonds issued
pursuant to this code and bonds issued pursuant to any other law,
may combine all refunding bonds and any other additional new bonds
to be issued under this chapter into one or more issues or series of
bonds, and may provide for the subsequent issuance of additional
parity bonds, or subordinate lien bonds, or other type of bonds.
All refunding bonds must be issued and delivered under the terms set
forth in the authorizing proceedings.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.036. EXAMINATION OF BONDS BY ATTORNEY GENERAL. All
bonds issued pursuant to this subchapter, and the appropriate
proceedings authorizing their issuance, shall be submitted to the
attorney general for examination.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
SUBCHAPTER C. GUARANTEED BONDS
§ 45.051. DEFINITIONS. In this subchapter:
(1) "Board" means the State Board of Education.
(2) "Paying agent" means the financial institution
that is designated by a school district as its agent for the payment
of the principal of and interest on guaranteed bonds.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.052. GUARANTEE. On approval by the commissioner,
bonds issued under Subchapter A, including refunding bonds, are
guaranteed by the corpus and income of the permanent school fund.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.053. LIMITATION; VALUE ESTIMATES. (a) The
commissioner may not approve bonds for guarantee if the approval
would result in the total amount of outstanding guaranteed bonds
exceeding an amount equal to 2-1/2 times the cost value or market
value, whichever is less, of the permanent school fund, as
estimated by the board and certified by the state auditor.
(b) Each year, the state auditor shall analyze the status of
guaranteed bonds as compared to the cost value and market value of
the permanent school fund. Based on that analysis, the state
auditor shall certify whether the amount of bonds guaranteed is
within the limit prescribed by this section.
(c) The commissioner shall prepare and the board shall adopt
an annual report on the status of the guaranteed bond program.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 2003, 78th Leg., ch. 89, § 1, eff. May 20, 2003.
§ 45.054. ELIGIBILITY. To be eligible for approval by
the commissioner, bonds must be issued under Subchapter A of this
chapter or under Subchapter A, Chapter 1207, Government Code, to
make a deposit under Subchapter B or C of that chapter, by an
accredited school district.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 2001, 77th Leg., ch. 1420, § 8.209, eff. Sept. 1,
2001.
§ 45.055. APPLICATION FOR GUARANTEE. (a) A school
district seeking the guarantee of eligible bonds shall apply to the
commissioner.
(b) The application must include:
(1) the name of the school district and the principal
amount of the bonds to be issued;
(2) the name and address of the district's paying agent
for those bonds; and
(3) the maturity schedule, estimated interest rate,
and date of the bonds.
(c) The application must be accompanied by a fee set by rule
of the board in an amount designed to cover the costs of
administering the guarantee program.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.056. INVESTIGATION. (a) Following receipt of an
application for the guarantee of bonds, the commissioner shall
conduct an investigation of the applicant school district in regard
to:
(1) the status of the district's accreditation; and
(2) the total amount of outstanding guaranteed bonds.
(b) If following the investigation the commissioner is
satisfied that the school district's bonds should be guaranteed
under this subchapter, the commissioner shall endorse the bonds.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.057. GUARANTEE ENDORSEMENT. (a) The commissioner
shall endorse bonds approved for guarantee with:
(1) the commissioner's signature or a facsimile of the
commissioner's signature; and
(2) a statement relating the constitutional and
statutory authority for the guarantee.
(b) The guarantee is not effective unless the attorney
general approves the bonds under Section 45.005.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.058. NOTICE OF DEFAULT. Immediately following a
determination that a school district will be or is unable to pay
maturing or matured principal or interest on a guaranteed bond, but
not later than the fifth day before maturity date, the school
district shall notify the commissioner.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.059. PAYMENT FROM PERMANENT SCHOOL
FUND. (a) Immediately following receipt of notice under Section
45.058, the commissioner shall instruct the comptroller to transfer
from the appropriate account in the permanent school fund to the
district's paying agent the amount necessary to pay the maturing or
matured principal or interest.
(b) Immediately following receipt of the funds for payment
of the principal or interest, the paying agent shall pay the amount
due and forward the canceled bond or coupon to the comptroller. The
comptroller shall hold the canceled bond or coupon on behalf of the
permanent school fund.
(c) Following full reimbursement to the permanent school
fund with interest, the comptroller shall further cancel the bond
or coupon and forward it to the school district for which payment
was made.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 1997, 75th Leg., ch. 1423, § 5.07, eff. Sept. 1,
1997.
§ 45.060. BONDS NOT ACCELERATED ON DEFAULT. If a school
district fails to pay principal or interest on a guaranteed bond
when it matures, other amounts not yet mature are not accelerated
and do not become due by virtue of the school district's default.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.061. REIMBURSEMENT OF PERMANENT SCHOOL
FUND. (a) If the commissioner orders payment from the permanent
school fund on behalf of a school district, the commissioner shall
direct the comptroller to withhold the amount paid, plus interest,
from the first state money payable to the school district. The
amount withheld shall be deposited to the credit of the permanent
school fund.
(b) In accordance with the rules of the board, the
commissioner may authorize reimbursement to the permanent school
fund with interest in a manner other than that provided by this
section.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.062. REPEATED DEFAULTS. (a) If two or more
payments from the permanent school fund are made on the guaranteed
bonds of a school district and the commissioner determines that the
school district is acting in bad faith under the guarantee, the
commissioner may request the attorney general to institute
appropriate legal action to compel the school district and its
officers, agents, and employees to comply with the duties required
of them by law in regard to the bonds.
(b) Jurisdiction of proceedings under this section is in
district court in Travis County.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.063. RULES. The board may adopt rules necessary
for the administration of the bond guarantee program.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
SUBCHAPTER D. SALE OF SURPLUS REAL PROPERTY; REVENUE BONDS
§ 45.081. DEFINITIONS. In this subchapter:
(a) "District" means an independent school district.
(b) "Board" means the governing body of a district.
(c) "Real property" means any interest in land, buildings,
or fixtures permanently attached to buildings or land.
(d) "Bonds" includes notes, contracts, and any other
evidences of an obligation to pay a sum of money.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.082. SALE OF PROPERTY; REVENUE BONDS. (a) The
board of a district may sell real property owned by the district and
issue revenue bonds payable from the proceeds of the sale subject to
this section.
(b) The board must determine by order that the real property
is not required for the current needs of the district for
educational purposes, and the proceeds from the sale are required
and will be used for:
(1) constructing or equipping school buildings in the
district or purchasing necessary sites for school buildings; or
(2) paying the principal of and interest and premium
on any bonds issued pursuant to this subchapter.
(c) The board is not required to comply with this section if
the sale is:
(1) to a corporation established by the district under
Chapter 303, Local Government Code; and
(2) subject to a lease-purchase agreement under which
the district will acquire the real property.
(d) The real property may be sold for the price and on the
terms determined by order of the board to be most advantageous to
the district. The sale may be made pursuant to an installment sale
agreement or contract or any other method. The sale must be for
cash and all payments for the real property must be scheduled to be
paid not more than 10 years after the date of execution of the
agreement or contract of sale. Real property may not be sold for
less than an aggregate price equal to its fair market value as
determined by an appraisal obtained by the district not more than
180 days before the publication of the notice required by
Subsection (e)(3). The appraisal is conclusive of the fair market
value of the property for purposes of this subchapter.
(e) Before selling or executing any agreement or contract
for the sale of the real property, the board shall:
(1) determine which real estate is proposed to be
sold;
(2) determine the scope of the terms on which it will
consider selling the real property, and, if the sale price is to be
paid in installments, require the purchasers of the real property
to secure the payment of the sale price by escrowing collateral
acceptable to the board such as a letter of credit, United States
government bonds, or any other generally recognized form of
guarantee or security;
(3) publish a notice to prospective purchasers at
least two weeks before the date set for receiving proposals in a
real estate journal and in at least two newspapers of general
circulation in the district, requesting sealed written proposals
from prospective purchasers to purchase the real property and
including the scope of the terms of sale that will be considered,
and the time, date, and place where the proposals will be received;
and
(4) determine by order of the board which sealed
written proposal is most advantageous to the district, and accept
that proposal, or reject all proposals if considered advisable.
(f) Except as provided by this subsection, the sale must
have been previously approved by a majority of the qualified voters
of the district voting at an election held in the district at which
a proposition to ascertain approval is submitted. An election is
not required if the board determines by order that the proceeds from
the sale of the real property are required and will be used for
constructing or equipping or for paying the principal of, and
interest and premium, if any, on bonds issued pursuant to this
subchapter for the purpose of constructing or equipping a school
building that is to be constructed pursuant to an order or judgment
entered by a United States District Judge in any action or cause in
which the district is a party.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 2001, 77th Leg., ch. 1420, § 8.210, eff. Sept. 1,
2001.
§ 45.083. OTHER LAWS NOT APPLICABLE. Section 272.001,
Local Government Code, Chapter 26, Parks and Wildlife Code, and all
other general laws pertaining to the sale of public property do not
apply to sales of real property pursuant to this subchapter.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.084. CONTRACTS. The district may execute
contracts for constructing or equipping school buildings in the
district or for purchasing any necessary sites for school buildings
in the manner provided by law. If any contract recites that
payments under the contract are to be made either from the proceeds
from the sale of real property under an installment sale agreement
or any similar method pursuant to this subchapter or from proceeds
from the sale of bonds issued pursuant to this subchapter, then the
contract may be made payable in installments to correspond with the
receipt by the district either of proceeds under the sale agreement
or proceeds from the sale of any bonds to be issued and delivered in
more than one issue, series, or installment, and the contract is not
a prohibited debt or indebtedness of the district if the payments
under the contract are required to be made solely from the proceeds
from the sale of real property or the bonds.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.085. BOND REQUIREMENTS. (a) In addition to the
powers granted by this subchapter, any board, for and on behalf of
its district, may issue, sell, and deliver revenue bonds of its
district from time to time and in one or more issues, series, or
installments, with the principal of and interest and premium, if
any, on the bonds to be payable from and secured by liens on and
pledges of all or any part of any of the revenue, income, payments,
or receipts derived by the district from the sale of real property
pursuant to this subchapter, and those amounts may be pledged by the
district to the payment of the principal of and interest and
premium, if any, on such bonds, subject to this section.
(b) Bonds must be issued by an order of the board.
(c) The bonds must be issued for the purpose of constructing
or equipping school buildings in the district or purchasing
necessary sites for school buildings.
(d) The bonds shall mature, come due, or be payable
serially, in installments, or otherwise, within not to exceed 90
days after the last date on which the final payment is due to the
district from the sale of the real property. The bond order may
provide for the subsequent issuance of additional parity bonds, or
subordinate lien bonds, under any terms set forth in the bond order.
(e) The bonds may be executed, made redeemable before
maturity or due date, and be issued in the form, denominations, and
manner and under the terms provided in the bond order. The bonds
may be sold in the manner, at the price, and under the terms and may
bear interest at the rates provided in the bond order.
(f) If so provided in any bond order, the proceeds from the
sale of the bonds may be used for paying interest on the bonds
during the period of constructing or equipping any school buildings
to be provided through the issuance of the bonds or for creating a
reserve fund for the payment of principal and interest on the bonds.
The proceeds may be placed on time deposit, in certificates of
deposit, or invested, until needed, to the extent and in the manner
provided in any bond order. The proceeds also may be used for
paying the costs and expenses of issuing the bonds and selling the
real property.
(g) The bonds may be payable only from the revenues
described by Subsection (a) and may not be payable or paid from any
taxes levied and collected in the district.
(h) Chapter 1201, Chapter 1204, and Subchapters A-C,
Chapter 1207, Government Code, apply to bonds issued pursuant to
this subchapter.
(i) If bonds are issued pursuant to this subchapter, the
bonds, along with the appropriate proceedings authorizing their
issuance, and the sale agreement the proceeds from which they are
payable shall be submitted to the attorney general for examination.
If after the initial issuance of any bonds under this subchapter
payable from the proceeds of a particular sale agreement, one or
more subsequent issues, series, or installments of bonds are issued
as additional parity bonds, on a parity with the initial bonds and
payable from the proceeds of that sale agreement, then, at the
option of the board, the subsequent issues, series, or installments
of bonds need not be submitted to the attorney general or approved
by the attorney general or registered by the comptroller, and the
subsequent bonds are, on delivery of and payment for the bonds,
valid and incontestable in the same manner and with the same effect
as if they had been approved by the attorney general and registered
by the comptroller as were the initial bonds.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 2001, 77th Leg., ch. 1420, § 8.211, eff. Sept. 1,
2001.
§ 45.086. LIBERAL CONSTRUCTION. This subchapter shall
be construed liberally to accomplish the legislative intent and the
purposes of the subchapter, and all powers granted by this
subchapter shall be broadly interpreted to accomplish that intent
and those purposes and not as a limitation of powers.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.087. OTHER POWERS UNRESTRICTED. This subchapter
does not restrict the power of a school district to sell property or
issue bonds as provided by other law.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
SUBCHAPTER E. MISCELLANEOUS PROVISIONS
§ 45.101. USE OF BOND PROCEEDS FOR UTILITY
CONNECTIONS. The proceeds of bonds issued by school districts for
the construction and equipment of school buildings in the district
and the purchase of the necessary sites for school buildings may be
used, among other things, to pay the cost of acquiring, laying, and
installing pipes or lines to connect with the water, sewer, or gas
lines of a municipality or private utility company, whether or not
the water, sewer, or gas lines adjoin the school, so that the school
district may provide its public school buildings the water, sewer,
or gas services.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.102. INVESTMENT OF BOND PROCEEDS IN OBLIGATIONS OF
UNITED STATES OR INTEREST-BEARING SECURED TIME BANK
DEPOSITS. (a) A school district that has on hand proceeds
received from the issuance and sale of bonds or certificates of
indebtedness of the district that are not immediately needed for
the purposes for which the bonds or certificates of indebtedness
were issued and sold, may, on order of the board of trustees:
(1) place the proceeds on interest-bearing time
deposit, secured in the manner provided by Section 45.208, with a
state or national banking corporation in this state the deposits of
which are insured by the Federal Deposit Insurance Corporation; or
(2) invest the proceeds in bonds or other obligations
of the United States.
(b) Interest-bearing secured time deposits or bonds or
other obligations of the United States in which proceeds of bonds or
certificates of indebtedness are placed or invested must be of a
type that cannot be cashed, sold, or redeemed for an amount less
than the sum deposited or invested by the school district.
(c) When the sums placed or invested by a school district
are needed for the purposes for which the bonds or certificates of
indebtedness of the school district were originally authorized,
issued, and sold:
(1) the time deposits or bonds or other obligations of
the United States in which the sums have been placed or invested
shall be cashed, sold, or redeemed; and
(2) the proceeds shall be used for the purposes for
which the bonds or certificates of indebtedness of the school
district were originally authorized, issued, and sold.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.103. INTEREST-BEARING TIME WARRANTS. (a) Any
school district in need of funds to construct, repair, or renovate
school buildings, purchase school buildings and school equipment,
or equip school properties with necessary heating, water,
sanitation, lunchroom, or electric facilities or in need of funds
with which to employ a person who has special skill and experience
to compile taxation data and that is financially unable out of
available funds to construct, repair, renovate, or purchase school
buildings, purchase school equipment, or equip school properties
with necessary heating, water, sanitation, lunchroom, or electric
facilities or is unable to pay the person for compiling taxation
data, may, subject to this section, issue interest-bearing time
warrants, in amounts sufficient to construct, purchase, equip, or
improve school buildings and facilities or to pay all or part of the
compensation of the person to compile taxation data, any law to the
contrary notwithstanding. The warrants shall mature in serial
installments of not more than five years from their date of issue.
The warrants on maturity may be payable out of any available funds
of the school district in the order of their maturity dates. Any
interest-bearing time warrants may be issued and sold by the
district for not less than their face value, and the proceeds used
to provide funds required for the purpose for which they are issued.
The warrants shall be entitled to first payment out of any available
funds of the district as they become due. Included in the purposes
for which interest-bearing time warrants may be issued is the
payment of any amounts owed by the school district that was incurred
in carrying out any of those purposes.
(b) Interest-bearing time warrants may not be issued or sold
by a common school district or rural high school district until they
are approved by the county board of school trustees. The board
shall, on application of the school district, inquire into the
financial conditions and needs of the district, and may not approve
the issuance of interest-bearing time warrants unless in its
opinion the district:
(1) is in need of constructing, purchasing, repairing,
or renovating a school building, obtaining the school equipment, or
equipping school properties with necessary heating, water,
sanitation, lunchroom, or electric facilities; and
(2) will be able with the resources in prospect to
liquidate the warrants at their maturity.
(c) A school district may not issue interest-bearing time
warrants in excess of five percent of the assessed valuation of the
district for the year in which the warrants are issued. The payment
of interest-bearing time warrants in any one year may not exceed the
anticipated surplus income of the district for the year in which the
warrants are issued, based on the budget of the district for that
year. The anticipated income computed under this section is
exclusive of all bond taxes. A school district may not have
outstanding at any one time warrants totaling in excess of $500,000
under this section.
(d) If interest-bearing time warrants issued under this
section are outstanding, the officer in charge of the collection of
delinquent taxes shall pay those collections to the legal
depository of the district, to be deposited and held in a special
fund for the payment of the interest-bearing time warrants, and
except as otherwise provided by this section, collections of
delinquent taxes may not be applied or used for any other purpose.
(e) Interest and penalties on delinquent taxes are
considered a part of those taxes for purposes of this section. If
any delinquent taxes, including interest and penalties, are
canceled, waived, released, or reduced either by the school
district or in any other way, with or without its consent, the
amount of the loss sustained shall be paid by the district to the
special fund provided for by Subsection (d) out of funds not
otherwise pledged to that special fund.
(f) All school districts issuing interest-bearing time
warrants may encumber and mortgage any property purchased with the
proceeds of the warrants or any property, including teachers'
residences, owned by the district to secure the payment of legally
incurred obligations, except that a lien may not be placed on any
school building in which actual classroom instruction of students
is conducted.
(g) In this section, "interest-bearing time warrant"
includes a promissory note or other evidence of indebtedness issued
under this section.
(h) Taxes levied to pay principal and interest of bonds that
are delinquent are not included in the term "delinquent taxes" as
used in this section.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 1999, 76th Leg., ch. 1536, § 3, eff. June 19,
1999.
§ 45.104. PLEDGE OF DELINQUENT TAXES AS SECURITY FOR
LOAN. (a) The board of trustees of any school district may pledge
its delinquent taxes levied for maintenance purposes for specific
past, current, and future school years as security for a loan, and
may evidence any such loan with negotiable notes, and the
delinquent taxes pledged shall be applied against the principal and
interest of the loan. Negotiable notes issued under this subsection
must mature not more than 20 years from their date.
(b) A school district may not pledge delinquent taxes levied
for school bonds as security for a loan.
(c) Funds secured through loans secured by delinquent taxes
may be employed for any legal maintenance expenditure or purpose of
the school district, including all costs incurred in connection
with:
(1) environmental cleanup and asbestos removal
programs implemented by school districts; or
(2) maintenance, repair, rehabilitation, or
replacement of heating, air conditioning, water, sanitation,
roofing, flooring, electric, or other building systems of existing
school properties.
(d) A loan secured by delinquent taxes may bear interest at
a rate not to exceed the maximum rate provided by Section 1204.006,
Government Code.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 1999, 76th Leg., ch. 396, § 1.34, eff. Sept. 1,
1999; Acts 2001, 77th Leg., ch. 1420, § 8.212, eff. Sept. 1,
2001.
§ 45.105. AUTHORIZED EXPENDITURES. (a) The public
school funds may not be spent except as provided by this section.
(b) The state and county available funds may be used only
for the payment of teachers' and superintendents' salaries and
interest on money borrowed on short time to pay those salaries that
become due before the school funds for the current year become
available. Loans for the purpose of payment of teachers may not be
paid out of funds other than those for the current year.
(c) Local school funds from district taxes, tuition fees of
students not entitled to a free education, other local sources, and
state funds not designated for a specific purpose may be used for
the purposes listed for state and county available funds and for
purchasing appliances and supplies, paying insurance premiums,
paying janitors and other employees, buying school sites, buying,
building, repairing, and renting school buildings, including
acquiring school buildings and sites by leasing through annual
payments with an ultimate option to purchase, and for other
purposes necessary in the conduct of the public schools determined
by the board of trustees. The accounts and vouchers for county
districts must be approved by the county superintendent. If the
state available school fund in any municipality or district is
sufficient to maintain the schools in any year for at least eight
months and leave a surplus, the surplus may be spent for the
purposes listed in this subsection.
(d) An independent school district that has in its limits a
municipality with a population of 150,000 or more or that contains
at least 170 square miles, has $850 million or more assessed value
of taxable property on the most recent approved tax roll and has a
growth in average daily attendance of 11 percent or more for each of
the preceding five years as determined by the agency may, in buying
school sites or additions to school sites and in building school
buildings, issue and deliver negotiable or nonnegotiable notes
representing all or part of the cost to the school district of the
land or building. The district may secure the notes by a vendor's
lien or deed of trust lien against the land or building. By
resolution or order of the governing body made at or before the
delivery of the notes, the district may set aside and appropriate as
a trust fund, and the sole and only fund, for the payment of the
principal of and interest on the notes that part of the local school
funds, levied and collected by the school district in that year or
subsequent years, as the governing body determines. The aggregate
amount of local school funds set aside in or for any subsequent year
for the retirement of the notes may not exceed, in any one
subsequent year, 10 percent of the local school funds collected
during that year. The district may issue the notes only if approved
by majority vote of the qualified voters voting in an election
conducted in the manner provided by Section 45.003 for approval of
bonds.
(e) The governing body of an independent school district
that governs a junior college district under Subchapter B, Chapter
130, in a county with a population of more than 1.5 million may
dedicate a specific percentage of the local tax levy to the use of
the junior college district for facilities and equipment or for the
maintenance and operating expenses of the junior college district.
To be effective, the dedication must be made by the governing body
on or before the date on which the governing body adopts its tax
rate for a year. The amount of local tax funds derived from the
percentage of the local tax levy dedicated to a junior college
district from a tax levy may not exceed the amount that would be
levied by five percent of the effective tax rate for the tax year
calculated as provided by Section 26.04, Tax Code, on all property
taxable by the school district. All real property purchased with
these funds is the property of the school district, but is subject
to the exclusive control of the governing body of the junior college
district for as long as the junior college district uses the
property for educational purposes.
(f) Funds from a junior college district branch campus
maintenance tax levied by a school district board of trustees under
Section 130.087 may be used as provided by that section.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 1997, 75th Leg., ch. 1071, § 23, eff. Sept. 1,
1997.
§ 45.106. USE OF COUNTY AVAILABLE FUND APPORTIONMENT FOR
AREA SCHOOLS CAREER AND TECHNOLOGY EDUCATION. (a) A school
district or accumulation of districts that operates a school
designated as an area school for career and technology education
purposes or that participates in a designated area career and
technology education program shall use its annual county available
school fund apportionment, if any, in the operation of the area
school or program or in financing facilities for the school,
notwithstanding any laws to the contrary.
(b) A school district complying with Subsection (a) may not
be held accountable for or charged with county available school
funds in determining the district's eligibility for minimum
foundation school program funds.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.107. INVESTMENT OF GIFTS, DEVISES, AND BEQUESTS. A
gift, devise, or bequest made to a school district to provide
college scholarships for graduates of the district may be invested
by the board of trustees of the district as provided by Section
117.004, Property Code, unless otherwise specifically provided by
the terms of the gift, devise, or bequest.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 2003, 78th Leg., ch. 1103, § 9, eff. Jan. 1,
2004.
§ 45.108. BORROWING MONEY FOR CURRENT MAINTENANCE
EXPENSES. (a) Independent or consolidated school districts may
borrow money for the purpose of paying maintenance expenses and may
evidence those loans with negotiable notes, except that the loans
may not at any time exceed 75 percent of the previous year's income.
The notes may be payable from and secured by a lien on and pledge of
any available funds of the district, including proceeds of a
maintenance tax. The term "maintenance expenses" or "maintenance
expenditures" as used in this section means any lawful expenditure
of the school district other than payment of principal of and
interest on bonds. The term includes all costs incurred in
connection with environmental cleanup and asbestos cleanup and
removal programs implemented by school districts or in connection
with the maintenance, repair, rehabilitation, or replacement of
heating, air conditioning, water, sanitation, roofing, flooring,
electric, or other building systems of existing school properties.
Notes issued pursuant to this section may be issued to mature in not
more than 20 years from their date. Notes issued for a term longer
than one year must be treated as "debt" as defined in Section
26.012(7), Tax Code.
(b) Notes may be issued under this section only after a
budget has been adopted for the current school year.
(c) Notes issued under this section must be authorized by
resolution adopted by a majority vote of the board of trustees,
signed by the president or vice president and attested by the
secretary of the board.
(d) A note issued under this section may contain a
certification that it is issued pursuant to and in compliance with
this section and pursuant to a resolution adopted by the board of
trustees. The certification is sufficient evidence that the note
is a valid obligation of the district.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 1999, 76th Leg., ch. 396, § 1.35, eff. Sept. 1,
1999.
§ 45.109. CONTRACTS FOR ATHLETIC FACILITIES. (a) Any
independent school district, acting by and through its board of
trustees, may contract with any corporation, municipality, or
institution of higher education, as defined by Section 61.003,
located wholly or partially in its boundaries, for the use of any
stadium and other athletic facilities owned by or under the control
of the other entity. The contract may be for any period not
exceeding 75 years and may contain terms agreed on by the parties.
(b) The district may enter into a contract for the use of
athletic facilities for any purpose related to sports activities
and other physical education programs for the students at the
public schools of the district.
(c) The consideration for a contract under this section may
be paid from any source available to the independent school
district. If voted as provided by this section, the district may
pledge to the payment of the contract an annual maintenance tax in
an amount sufficient, without limitation, to provide all of the
consideration. If voted and pledged, the maintenance tax shall be
assessed, levied, and collected annually in the same manner as
provided by general law applicable to independent school districts
for other maintenance taxes.
(d) A maintenance tax may not be pledged to the payment of
any contract under this section or assessed, levied, or collected
unless an election is held in the district and the maintenance tax
is favorably voted by a majority of the qualified voters of the
district voting at the election. The election order for an election
under this subsection must include the polling place or places and
any other matters considered advisable by the board of trustees.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.110. AUTHORIZED BUT UNISSUED BONDS. (a) This
section applies to any independent school district that has
previously voted or authorized school bonds for a specific purpose
or purposes and the purpose or purposes have been accomplished by
other means or have been abandoned and all or a portion of the bonds
authorized remain unissued.
(b) The board of trustees of the district may, on its own
motion, order an election to submit to the qualified voters of the
district the proposition of whether or not the authorized but
unissued bonds may be issued, sold, and delivered for other and
different purposes specified in the election order and the election
notice. The election shall be ordered, held, and conducted in the
same form and manner as that at which the bonds were originally
authorized.
(c) If a majority of those voting at the election vote in
favor of the sale and delivery of the unissued bonds and the use of
the proceeds of the bonds for the purpose or purposes specified in
the election order and the election notice, the board of trustees
may issue, sell, and deliver the bonds and use the proceeds of the
bonds for the purpose or purposes authorized at the election.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.111. CERTIFICATES OF INDEBTEDNESS; ISSUANCE BY
CERTAIN SCHOOL AND JUNIOR COLLEGE DISTRICTS. (a) Any school
district, including a junior college district, situated in a county
with a population of 200,000 or more may issue interest-bearing
certificates of indebtedness to provide funds for erecting or
equipping school buildings in the boundaries of the district or
refinancing outstanding certificates as provided by this section.
The term "certificates," as used in this section, includes all
obligations authorized to be issued under this section and the
interest on those obligations.
(b) The governing body of the district shall provide for the
payment of the certificates issued under this section by
appropriating and pledging local school funds derived from
maintenance taxes levied and assessed under Sections 45.002 and
130.122; Chapter 273, Acts of the 53rd Legislature, Regular
Session, 1953 (Article 2784g, Vernon's Texas Civil Statutes); or
other similar law that limits the amount of tax that may be levied
for maintenance purposes, as distinguished from bond requirements.
The appropriation and pledge may be in the nature of a continuing
irrevocable pledge to apply the first moneys collected annually
from the tax levy to the payment of the obligations or by the
irrevocable present levy and appropriation of the amount of the
maintenance tax required to meet the annual debt service
requirements of the obligations, in which event the governing body
shall covenant to annually set aside the amount in the annual tax
levy, showing the same is a portion of the maintenance tax. The
governing body shall annually budget the amount required to pay the
principal and interest of the obligations that may be scheduled to
become due in any fiscal year. This section may not be construed as
permitting the levy of a maintenance tax in excess of the amount
approved by the qualified voters of the district.
(c) A district may not at any one time have certificates
outstanding and unpaid in principal amount in excess of $250,000,
unless the excessive amount becomes the obligation of the district
by assumption under Subsection (k) or the new certificates are
being issued to refund or refinance outstanding obligations under
Subsection (i).
(d) The principal amount of certificates that may be
authorized at any one time and the scheduling of their principal
maturity are further restricted as follows:
(1) if the assessed valuation is more than $1 million
and less than $15 million, the limiting factor is 25 cents;
(2) if the assessed valuation is $15 million or more
but less than $35 million, the limiting factor is 15 cents; and
(3) if the assessed valuation is $35 million or more,
the limiting factor is 5 cents.
(e) Assessed valuation means the valuation for school
district purposes on the tax rolls of the district most recently
approved before the authorization of the certificates. The
limiting factor for a particular district, as prescribed by
Subsection (d), is multiplied by the assessed valuation of the
district, and the product is the maximum amount of debt service
requirements on the certificates that may be scheduled to become
due in any fiscal year on a cumulative basis. A district that has an
assessed valuation less than $1 million may not issue certificates
under this section.
(f) Certificates authorized to be issued under this section
shall be payable at the times and be in such form and denomination
or denominations either in coupon form or registered as to
principal, interest, or both. The certificates may contain options
for redemption before the scheduled maturity and may be payable at
the place and may contain other provisions as the governing body of
the district determines. A certificate may not mature over a period
in excess of 25 years from the date of the certificate or bear
interest at a rate in excess of seven percent per annum.
(g) Except if issued in exchange for certificates
outstanding as provided by Subsection (i), the certificates shall
be sold for cash at not less than the face or par value plus accrued
interest. The proceeds shall be applied for the purpose for which
the certificates were issued, except that all accrued interest and
premium received, if any, shall be deposited in the interest and
sinking fund established for the payment of the obligations. The
cost of issuing the obligations, including attorneys', printing,
and fiscal fees, may be paid from the proceeds, except if
certificates are sold under Subsection (i).
(h) The certificates, including interest whether issued in
coupon or registered form, are securities within the meaning of
Chapter 8, Business & Commerce Code, and that chapter applies to the
certificates after their approval by the attorney general and
registration by the comptroller.
(i) Each governing body may refund or refinance outstanding
certificates by issuing new interest-bearing certificates within
the limitations and conditions provided in this section. The new
certificates shall be issued and delivered in lieu of and on
surrender to the comptroller and the cancellation of the
obligations being refunded, and the comptroller shall register the
new certificates and deliver them in accordance with the order
authorizing their issuance. The new certificates may be issued in
accordance with Subchapter A, Chapter 1207, Government Code, and
delivered in accordance with Subchapter B or C of that chapter.
(j) A certified copy of all proceedings relating to the
authorization of the certificates shall be submitted to the
attorney general.
(k) Certificates issued under this section are an
indebtedness of the school district issuing them, but the holder of
a certificate does not have the right to demand payment out of any
fund other than those pledged to its payment. If the boundary lines
of any issuing district are changed while the certificates remain
outstanding, the indebtedness shall be adjusted or assumed as
provided under general law for the adjustment of bond indebtedness
payable from taxation.
(l) For purposes of this section, the governing body of a
common school district is the commissioners court of the county
having administrative jurisdiction. The governing body of an
independent school district, a rural high school district, or a
junior college district is its board of trustees, and the governing
body of a municipally controlled school district is the city or town
council or commission. Certificates shall be authorized by order
of the governing body of the district.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 2001, 77th Leg., ch. 1420, § 8.213, eff. Sept. 1,
2001.
§ 45.112. CONTRACTS FOR INVESTMENT OF DEBT SERVICE
FUNDS. (a) A school district, including a junior college
district or community college district, may enter into a contract
with a term not to exceed seven years to purchase investments with
the proceeds of taxes levied or to be levied by the district for the
purpose of paying debt service on bonds issued by the district.
(b) A contract under this section may provide for the
purchase of investments at a stated yield or yields.
(c) Before entering a contract under this section, a school
district must solicit and receive bids from at least three separate
providers. The district must accept the qualifying bid that
provides for the highest yield investments over the term of the
contract.
(d) A contract under this section may provide only for the
purchase of an obligation described by Section 2256.009(a)(1),
Government Code, other than an obligation described by Section
2256.009(b) of that code.
Added by Acts 1999, 76th Leg., ch. 1535, § 1, eff. June 19, 1999.
SUBCHAPTER F. ATHLETIC STADIUM AUTHORITIES
§ 45.151. DEFINITIONS. In this subchapter:
(1) "District" means any independent school district.
(2) "Stadium" means the structural and associated
facilities designed for staging and holding athletic contests and
other events.
(3) "Authority" means an athletic stadium authority
created under this subchapter.
(4) "Board of directors" means the board of directors
of the authority.
(5) "Bond resolution" means the resolution
authorizing the issuance of revenue bonds.
(6) "Trust indenture" means the mortgage, deed of
trust, or other instrument pledging revenues of or creating a
mortgage lien on properties, or both, to secure the revenue bonds
issued by the authority.
(7) "Trustee" means the trustee under the trust
indenture.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.152. CREATION OF AUTHORITY. (a) If the boards of
trustees of two districts find that it is to the best interest of
the districts to create an athletic stadium authority to include
the districts, each board of trustees shall adopt a resolution
creating an authority and designating the name by which it shall be
known.
(b) An authority is a body politic and corporate. It must
have a seal, may sue and be sued, and may make, amend, and repeal its
bylaws.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.153. BOARD OF DIRECTORS. (a) An authority is
governed by a board of directors consisting of seven members. The
members of the board serve terms ending May 1. A member's term may
not exceed two years. The board of trustees of each district shall
each appoint three directors, and the appointees shall by majority
vote appoint a seventh director.
(b) The board of directors shall elect from among the
directors a president and vice president. The board shall elect a
secretary and a treasurer who may or may not be directors and may
elect other officers as authorized by the authority's bylaws. The
offices of secretary and treasurer may be combined. The president
has the same right to vote on all matters as other members of the
board.
(c) A majority of the members of the board constitutes a
quorum, and when a quorum is present, action may be taken by a
majority vote of directors present.
(d) The board may employ a manager and other employees,
experts, and agents or may delegate to the manager the power to
employ and discharge employees. The board may employ legal
counsel.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.154. CONSTRUCTION, ACQUISITION, AND OPERATION OF
STADIUM. An authority may construct, enlarge, furnish, and equip
stadia, purchase existing stadia, furnishings, and equipment for
its stadia, and operate and maintain stadia. A stadium need not be
located inside a district creating the authority.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.155. BONDS. (a) An authority may issue revenue
bonds to provide funds for any of its purposes. The bonds shall be
payable from and secured by a pledge of all or any part of the
revenue to be derived from the operation of the stadium or stadia
and any other revenues resulting from the ownership of stadium
properties. The bonds may be additionally secured by a mortgage or
deed of trust on property of the authority.
(b) The bonds must be authorized by resolution adopted by a
majority vote of a quorum of the board of directors. The bonds
shall be signed by the president or vice president and
countersigned by the secretary, or either or both of their
facsimile signatures may be printed on the bonds. The seal of the
authority shall be impressed or printed on the bonds.
(c) The bonds shall mature serially or otherwise in not to
exceed 40 years. Appropriate provisions may be inserted in the
resolution authorizing the execution and delivery of bonds for the
conversion of registered bonds into bearer bonds and vice versa.
(d) Provisions may be made in the bond resolution or trust
indenture for the substitution of new bonds for those lost or
mutilated. When bonds are approved by the attorney general and
registered by the comptroller, it is not necessary to obtain the
approval of the attorney general or registration by the comptroller
as to converted or substituted bonds.
(e) Bonds constituting a junior lien on the revenue or
properties may be issued unless prohibited by the bond resolution
or trust indenture. Parity bonds may be issued under conditions
specified in the bond resolution or trust indenture.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.156. CONTRACTS WITH SCHOOL DISTRICTS. (a) Any
district, acting by and through its board of trustees, may contract
with any athletic stadium authority organized under this subchapter
for the use of any stadium owned by the authority. The contract may
be for any period not exceeding 75 years and may contain terms
agreed on by the parties.
(b) The district may enter into a contract for the use of the
stadium for any purpose related to sports activities and other
physical education programs for the students at the public schools
operated and maintained by the district.
(c) The consideration payable by the district under a
contract may be paid from any source available to the district. If
voted, the district may pledge to the payment of the contract an
annual maintenance tax in an amount sufficient, without limitation,
to provide all or part of the consideration. If voted and pledged,
the maintenance tax shall be assessed, levied, and collected
annually in the same manner as provided by general law applicable to
independent school districts for other maintenance taxes. A
maintenance tax may not be pledged to the payment of any contract or
assessed, levied, or collected unless an election is held in the
district, and the maintenance tax for that purpose is favorably
voted by a majority of the qualified voters of the district. The
election order for an election under this subsection must include
the polling place or places and any other matters considered
advisable by the board of trustees.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.157. EXAMINATION OF BONDS BY ATTORNEY
GENERAL. Bonds issued under this subchapter and the record
relating to their issuance shall be submitted to the attorney
general.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.158. CHARGES FOR USE OF STADIUM. (a) The board of
directors shall charge sufficient rates for services rendered by
the stadium and shall use other sources of its revenues so that
revenues will be produced sufficient to:
(1) pay all expenses in connection with the ownership,
operation, and upkeep of the stadium;
(2) pay the interest on the bonds as it becomes due;
(3) create a sinking fund to pay the bonds as they
become due; and
(4) create and maintain a bond reserve fund and other
funds as provided in the bond resolution or trust indenture.
(b) The bond resolution or trust indenture may prescribe
systems, methods, routines, and procedures under which the stadium
shall be operated.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.159. DEPOSITORY. An authority may select a
depository according to the procedures provided by law for the
selection of independent school district depositories.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.160. TAX EXEMPTION. Recognizing the fact that the
property owned by an authority will be held for public purposes only
and will be devoted exclusively to the use and benefit of the
public, it is exempt from taxation of every character.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.161. EMINENT DOMAIN. For the purpose of carrying
out any power conferred by this subchapter, an authority may
acquire the fee simple title to land and other property and
easements by condemnation in the manner provided by Chapter 21,
Property Code. An authority is a municipal corporation within the
meaning of Section 21.021(c), Property Code. The amount of and
character or interest in land, other property, and easements to be
acquired shall be determined by the board of directors.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.162. INVESTMENT OF BOND PROCEEDS. In addition to
other powers, an authority may invest the proceeds of its bonds,
until that money is needed, in the direct obligations of or
obligations unconditionally guaranteed by the United States, to the
extent authorized in the bond resolution or trust indenture or in
both.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.163. ACCEPTANCE OF GIFTS. The board of directors
may accept donations, gifts, and endowments to be held and
administered as may be required by the respective donors, to the
extent that those requirements do not contravene law.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
SUBCHAPTER G. SCHOOL DISTRICT DEPOSITORIES
§ 45.201. DEFINITIONS. In this subchapter:
(1) "School district" means any independent school
district.
Text of subsec. (2) as amended by Acts 1999, 76th Leg., ch. 62, §
7.49
(2) "Bank" means a state bank authorized and regulated
under the laws of this state pertaining to banking, in particular
Subtitle A, Title 3, Finance Code, a national bank, a savings and
loan association or savings bank authorized and regulated by
federal law, or a savings and loan association or savings bank
organized under the laws of this state. The term does not include
any bank the deposits of which are not insured by the Federal
Deposit Insurance Corporation.
Text of subsec. (2) as amended by Acts 1999, 76th Leg., ch. 344,
§ 5.002
(2) "Bank" means a bank, a savings and loan
association, or a savings bank organized under the laws of this
state, another state, or federal law that has its main office or a
branch office in this state. The term does not include any bank the
deposits of which are not insured by the Federal Deposit Insurance
Corporation.
(3) "Time deposit," "time certificate," "certificate
of deposit," and "time deposit-open account" have the definitions
adopted for those terms by the Board of Governors of the Federal
Reserve System.
(4) "Approved securities" means:
(A) bonds of this state or any agency or
political subdivision of this state;
(B) all evidences of indebtedness legally issued
by the board of trustees of the depositing school district;
(C) all debt securities that are a direct
obligation of the treasury of the United States;
(D) other obligations, including reducing
principal balance securities, the principal and interest of which
are unconditionally guaranteed or insured by, or backed by the full
faith and credit of, this state or the United States or their
respective agencies and instrumentalities; and
(E) those securities provided for by Article 842,
Revised Statutes, and Section 1, Chapter 160, General Laws, Acts of
the 43rd Legislature, 1933 (Article 842a, Vernon's Texas Civil
Statutes).
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 1999, 76th Leg., ch. 62, § 7.49, eff. Sept. 1,
1999; Acts 1999, 76th Leg., ch. 344, § 5.002, eff. Sept. 1,
1999; Acts 2003, 78th Leg., ch. 201, § 39, eff. Sept. 1, 2003.
§ 45.202. SELECTION OF DEPOSITORY. The school
depository or depositories of every independent school district may
be selected only as provided by this subchapter.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.203. DEPOSITORY MUST BE A BANK. A school
depository must be a bank located in this state.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.204. CONFLICT OF INTEREST. (a) If a member of the
board of trustees of a school district is a stockholder, officer,
director, or employee of a bank, the bank is not disqualified from
bidding and becoming the school depository of the school district
if the bank is selected by a majority vote of the board of trustees
of the district or a majority vote of a quorum when only a quorum is
present.
(b) If a member of the board of trustees of a school district
is a stockholder, officer, director, or employee of a bank that has
bid to become a depository for the school district, the member may
not vote on awarding a depository contract to the bank, and the
contract must be awarded by a majority vote of the trustees as
provided by Subsection (a) who are not either a stockholder,
officer, director, or employee of a bank receiving a school
district depository contract.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.205. TERM OF CONTRACT. (a) Except as provided by
Subsection (b), the depository bank when selected shall serve for a
term of two years and until its successor is selected and has
qualified.
(b) A school district and the district's depository bank may
agree to extend a depository contract for one additional two-year
term. An extension under this subsection is not subject to the
requirements of Section 45.206.
(c) The contract term and any extension must coincide with
the school district's fiscal year.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 1997, 75th Leg., ch. 1308, § 1, eff. June 20,
1997.
§ 45.206. BID NOTICES; BID FORM. (a) The board of
trustees of each school district shall, at least 30 days before the
termination of the current depository contract, mail to each bank
located in the district and, if desired, to other banks, a notice
stating the time and place in which bid applications will be
received for selecting a school depository or depositories. The
notice must include a uniform bid blank in the form prescribed by
State Board of Education rule.
(b) The school district may add to the uniform bid blank
other terms that do not unfairly restrict competition between banks
in or near the territory of the school district.
(c) Interest rates may be stated in the bid either as a fixed
rate, as a percentage of a stated base rate, in relation to a stated
prevailing rate varying from time to time, or in any other manner,
but in every case in a uniform manner, that will permit comparison
with other bids received.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.207. AWARD OF CONTRACT. (a) If tie bids are
received for a school depository contract and each of the tie
bidders has bid to pay the school district the maximum interest
rates allowed by law by the Board of Governors of the Federal
Reserve System and the Board of Directors of the Federal Deposit
Insurance Corporation, if the tie bids are otherwise equal in the
judgment and discretion of the board of trustees of the school
district, and if two or more of the tie bidders in the judgment and
discretion of the school district have the facilities and ability
to provide the necessary services of school depository for the
school district, the board of trustees may award the depository
contract by any one of the following methods:
(1) awarding the contract, at the discretion of the
board of trustees, to any one of the tie bidders;
(2) determining by lot which of the tie bidders will
receive the contract; or
(3) awarding a contract to each of the tie bidders or
to as many of the tie bidders as the board of trustees selects.
(b) The board of trustees may, during the period of the
contract, determine the amount of funds to be deposited in each
depository bank and determine the account services offered in the
bid form that are to be provided by each bank in its capacity as
school depository. All funds received by the district from or
through the agency shall be deposited, at the district's option, in
one depository bank or invested in a public funds investment pool
created under Chapter 791, Government Code, to be designated by the
district.
(c) The board of trustees of the school district shall at a
regular or special meeting consider all bids received in accordance
with this section. In determining the highest and best bid, or in
case of tie bids the highest and best tie bids, the board of
trustees shall consider the interest rate bid on time deposits,
charges for keeping district accounts, records, and reports and
furnishing checks, and the ability of the bidder to provide the
necessary services and perform the duties as school depository,
together with all other matters that in the judgment of the board of
trustees would be to the best interest of the school district. The
board of trustees of the school district has the right to reject any
and all bids.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.208. DEPOSITORY CONTRACT; BOND. (a) The bank or
banks selected as school depository or depositories and the school
district shall enter into a depository contract or contracts, bond
or bonds, or other necessary instruments setting forth the duties
and agreements pertaining to the depository, in a form and with the
content prescribed by the State Board of Education. The parties
shall attach to the contract and incorporate by reference the bid of
the depository.
(b) The depository bank shall attach to the contract and
file with the school district a bond in an initial amount equal to
the estimated highest daily balance, determined by the board of
trustees of the district, of all deposits that the school district
will have in the depository during the term of the contract, less
any applicable Federal Deposit Insurance Corporation insurance.
The bond must be payable to the school district and must be signed
by the depository bank and by some surety company authorized to do
business in this state. The depository bank shall increase the
amount of the bond if the board of trustees determines it to be
necessary to adequately protect the funds of the school district
deposited with the depository bank.
(c) The bond shall be conditioned on:
(1) the faithful performance of all duties and
obligations devolving by law on the depository;
(2) the payment on presentation of all checks or
drafts on order of the board of trustees of the school district, in
accordance with its orders entered by the board of trustees
according to law;
(3) the payment on demand of any demand deposit in the
depository;
(4) the payment, after the expiration of the period of
notice required, of any time deposit in the depository;
(5) the faithful keeping of school funds by the
depository and the accounting for the funds according to law; and
(6) the faithful paying over to the successor
depository all balances remaining in the accounts.
(d) The bond and the surety on the bond must be approved by
the board of trustees of the school district. A premium on the
depository bond may not be paid out of school district funds.
(e) A copy of the depository contract and bond shall be
filed with the agency.
(f) In lieu of the bond required under Subsection (b), the
depository bank may deposit or pledge, with the school district or
with a trustee designated by the school district, approved
securities in an amount sufficient to adequately protect the funds
of the school district deposited with depository bank. A
depository bank may give a bond and deposit or pledge approved
securities in an aggregate amount sufficient to adequately protect
the funds of the school district deposited with the depository
bank. The school district shall designate from time to time the
amount of approved securities or the aggregate amount of the bond
and approved securities to adequately protect the district. The
district may not designate an amount less than the balance of school
district funds on deposit with the depository bank from day to day,
less any applicable Federal Deposit Insurance Corporation
insurance. The depository bank may substitute approved securities
on obtaining the approval of the school district. For purposes of
this subsection, the approved securities are valued at their market
value.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.209. INVESTMENT OF DISTRICT FUNDS. The school
district may provide in its bid blank for the right to place on time
deposits with savings and loan institutions located in this state
only funds that are fully insured by the Federal Deposit Insurance
Corporation. A district may not place on deposit with any savings
and loan institution any bond or certificate of indebtedness
proceeds as provided by Section 45.102. A depository bank may not
be compelled without its consent to accept on time deposit any bond
proceeds under Section 45.102, but a depository may offer a bid of
interest equaling the highest bid of interest for the time deposit
of the bond proceeds tendered by another bank. If the depository
bank equals the bid, it is entitled to receive the bond proceeds on
time deposit.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
SUBCHAPTER H. ASSESSMENT AND COLLECTION OF TAXES
§ 45.231. EMPLOYMENT OF ASSESSOR AND
COLLECTOR. (a) The board of trustees of an independent school
district may employ a person to assess or collect the school
district's taxes and may compensate the person as the board of
trustees considers appropriate.
(b) This section does not prohibit an independent school
district from providing for the assessment or collection of the
school district's taxes under a method authorized by Subchapter B,
Chapter 6, Tax Code.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 45.232. ALTERNATE METHODS OF SELECTION UNDER FORMER
LAW. An independent school district that used a method of
selecting the assessor or collector of the school district's taxes
for the 1994 tax year that was authorized by former Subchapter F,
Chapter 23, as that subchapter existed on January 1, 1994, but that
is not authorized by Section 45.231 or by Subchapter B, Chapter 6,
Tax Code, may continue to use that method of selection until the
school district uses another method authorized by Section 45.231 or
by Subchapter B, Chapter 6, Tax Code, to determine how the
assessment or collection is performed.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
