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Texas Education Code - Section 45.0031. Limitation On Issuance Of Tax-Supported Bonds

Legal Research Home > Texas Lawyer > Education Code > Texas Education Code - Section 45.0031. Limitation On Issuance Of Tax-Supported Bonds

§ 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.

Last modified: August 10, 2007