reglab/statecodes huggingface dataset:
2023 Texas Statutes › Education Code › Title 2 - Public Education › Subtitle I - School Finance and Fiscal Management › Chapter 45 - School District Funds › Subchapter B. Revenue Bonds › Section 45.035. Refunding Bonds

Sec. 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, Sec. 1, eff. May 30, 1995.
2023 Texas Statutes › Education Code › Title 2 - Public Education › Subtitle I - School Finance and Fiscal Management › Chapter 45 - School District Funds › Subchapter B. Revenue Bonds › Section 45.036. Examination of Bonds by Attorney General

Sec. 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, Sec. 1, eff. May 30, 1995.
2023 Texas Statutes › Education Code › Title 2 - Public Education › Subtitle I - School Finance and Fiscal Management › Chapter 45 - School District Funds › Subchapter C. Guaranteed Bonds › Section 45.051. Definitions

Sec. 45.051.  DEFINITIONS.  In this subchapter:
(1)  "Board" means the State Board of Education.
(1-a)  "Charter district" means an open-enrollment charter school designated as a charter district under Section 12.135.
(2)  "Paying agent" means the financial institution that is designated by a school district or charter district as its agent for the payment of the principal of and interest on guaranteed bonds.
Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30, 1995.
Amended by:
Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 59.02, eff. September 28, 2011.
2023 Texas Statutes › Education Code › Title 2 - Public Education › Subtitle I - School Finance and Fiscal Management › Chapter 45 - School District Funds › Subchapter C. Guaranteed Bonds › Section 45.052. Guarantee

Sec. 45.052.  GUARANTEE.  (a)  On approval by the commissioner, bonds issued under Subchapter A by a school district or Chapter 53 for a charter district, including refunding and refinanced bonds, are guaranteed by the corpus and income of the permanent school fund.
(b)  Notwithstanding any amendment of this subchapter or other law, the guarantee under this subchapter of school district or charter district bonds remains in effect until the date those bonds mature or are defeased in accordance with state law.
Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30, 1995.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1328 (H.B. 3646), Sec. 68, eff. September 1, 2009.
Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 59.03, eff. September 28, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 280 (H.B. 885), Sec. 2, eff. September 1, 2013.
2023 Texas Statutes › Education Code › Title 2 - Public Education › Subtitle I - School Finance and Fiscal Management › Chapter 45 - School District Funds › Subchapter C. Guaranteed Bonds › Section 45.053. Limitation; Value Estimates

Sec. 45.053.  LIMITATION;  VALUE ESTIMATES.  (a)  Except as provided by Subsection (d), the commissioner may not approve bonds for guarantee under this subchapter if the approval would result in the total amount of outstanding guaranteed bonds under this subchapter exceeding an amount equal to 2-1/2 times the cost value 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 under this subchapter as compared to the cost value of the permanent school fund.  Based on that analysis, the state auditor shall certify whether the amount of bonds guaranteed under this subchapter 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 under this subchapter.
(d)  The board by rule may increase the limit prescribed by Subsection (a) to an amount not to exceed five times the cost value of the permanent school fund, provided that the increased limit is consistent with federal law and regulations and does not prevent the bonds to be guaranteed from receiving the highest available credit rating, as determined by the board.  The board shall at least annually consider whether to change any limit in accordance with this subsection.   This subsection may not be construed in a manner that impairs, limits, or removes the guarantee of bonds that have been approved by the commissioner.
Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30, 1995.  Amended by Acts 2003, 78th Leg., ch. 89, Sec. 1, eff. May 20, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 139 (S.B. 389), Sec. 1, eff. May 18, 2007.
Acts 2009, 81st Leg., R.S., Ch. 1328 (H.B. 3646), Sec. 68A, eff. September 1, 2009.
2023 Texas Statutes › Education Code › Title 2 - Public Education › Subtitle I - School Finance and Fiscal Management › Chapter 45 - School District Funds › Subchapter C. Guaranteed Bonds › Section 45.0531. Additional Limitation: Reservation of Percentage of Permanent School Fund Value

Sec. 45.0531.  ADDITIONAL LIMITATION:  RESERVATION OF PERCENTAGE OF PERMANENT SCHOOL FUND VALUE.  (a)  In addition to the limitation on the approval of bonds for guarantee under Section 45.053, the board by rule may establish a percentage of the cost value of the permanent school fund to be reserved from use in guaranteeing bonds under this subchapter.
(b)  If the board has reserved a portion of the permanent school fund under Subsection (a), each year, the state auditor shall analyze the status of the reserved portion compared to the cost value of the permanent school fund.  Based on that analysis, the state auditor shall certify whether the portion of the permanent school fund reserved from use in guaranteeing bonds under this subchapter satisfies the reserve percentage established.
(c)  If the board has reserved a portion of the permanent school fund under Subsection (a), the board shall at least annually consider whether to change the reserve percentage established to ensure that the reserve percentage allows compliance with federal law and regulations and serves to enable bonds guaranteed under this subchapter to receive the highest available credit rating, as determined by the board.
(d)  This section may not be construed in a manner that impairs, limits, or removes the guarantee of bonds that have been approved by the commissioner.
Added by Acts 2009, 81st Leg., R.S., Ch. 1328 (H.B. 3646), Sec. 69, eff. September 1, 2009.
2023 Texas Statutes › Education Code › Title 2 - Public Education › Subtitle I - School Finance and Fiscal Management › Chapter 45 - School District Funds › Subchapter C. Guaranteed Bonds › Section 45.0532. Limitation on Guarantee of Charter District Bonds

Sec. 45.0532.  LIMITATION ON GUARANTEE OF CHARTER DISTRICT BONDS.  (a)  In addition to the general limitation under Section 45.053, the commissioner may not approve charter district bonds for guarantee under this subchapter in a total amount that exceeds the charter capacity of the guaranteed bond program.
(a-1)  The commissioner may not approve charter district refunding or refinanced bonds for guarantee under this subchapter in a total amount that exceeds one-half of the charter capacity.
(b)  For purposes of this section, the charter capacity of the guaranteed bond program is the percentage of the total capacity of the guaranteed bond program established by the board under Sections 45.053(d) and 45.0531 that is equal to the percentage of the number of students enrolled in open-enrollment charter schools in this state compared to the total number of students enrolled in all public schools in this state, as determined by the commissioner.  Each time the board increases the limit under Section 45.053(d), the total amount of charter district bonds that may be guaranteed increases accordingly under Subsection (a).
(c)  Notwithstanding Subsections (a) and (b), the commissioner may not approve charter district bonds for guarantee under this subchapter if the guarantee will result in lower bond ratings for school district bonds for which a guarantee is requested under this subchapter.
(d)  The commissioner may request that the comptroller place the portion of the permanent school fund committed to the guarantee of charter district bonds in a segregated account if the commissioner determines that a separate account is needed to avoid any negative impact on the bond ratings of school district bonds for which a guarantee is requested under this subchapter.
(e)  A guarantee of charter district bonds must be made in accordance with this chapter and any applicable federal law.
Added by Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 59.04, eff. September 28, 2011.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 280 (H.B. 885), Sec. 3, eff. September 1, 2013.
Acts 2017, 85th Leg., R.S., Ch. 402 (S.B. 1480), Sec. 1, eff. September 1, 2017.
2023 Texas Statutes › Education Code › Title 2 - Public Education › Subtitle I - School Finance and Fiscal Management › Chapter 45 - School District Funds › Subchapter C. Guaranteed Bonds › Section 45.0533. Communication With Nationally Recognized Investment Rating Firm

Sec. 45.0533.  COMMUNICATION WITH NATIONALLY RECOGNIZED INVESTMENT RATING FIRM.  Information obtained from a nationally recognized investment rating firm relating to Section 45.053, 45.0531, or 45.0532 that concerns a hypothetical or actual scenario relating to the credit rating of the permanent school fund or the bond guarantee program of the permanent school fund, and any communications from, or information generated by, the agency, the board, the commissioner, or their employees relating to that information, is confidential and not subject to disclosure under Chapter 552, Government Code.
Added by Acts 2017, 85th Leg., R.S., Ch. 402 (S.B. 1480), Sec. 2, eff. September 1, 2017.
2023 Texas Statutes › Education Code › Title 2 - Public Education › Subtitle I - School Finance and Fiscal Management › Chapter 45 - School District Funds › Subchapter C. Guaranteed Bonds › Section 45.054. Eligibility of School District Bonds

Sec. 45.054.  ELIGIBILITY OF SCHOOL DISTRICT BONDS.  To be eligible for approval by the commissioner, school district 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, Sec. 1, eff. May 30, 1995.  Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.209, eff. Sept. 1, 2001.
Amended by:
Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 59.05, eff. September 28, 2011.
2023 Texas Statutes › Education Code › Title 2 - Public Education › Subtitle I - School Finance and Fiscal Management › Chapter 45 - School District Funds › Subchapter C. Guaranteed Bonds › Section 45.0541. Eligibility of Charter District Bonds

Sec. 45.0541.  ELIGIBILITY OF CHARTER DISTRICT BONDS.  To be eligible for approval by the commissioner, charter district bonds must:
(1)  without the guarantee, be rated as investment grade by a nationally recognized investment rating firm; and
(2)  be issued under Chapter 53.
Added by Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 59.06, eff. September 28, 2011.
2023 Texas Statutes › Education Code › Title 2 - Public Education › Subtitle I - School Finance and Fiscal Management › Chapter 45 - School District Funds › Subchapter C. Guaranteed Bonds › Section 45.055. Application for Guarantee

Sec. 45.055.  APPLICATION FOR GUARANTEE.  (a)  A school district or charter district seeking guarantee of eligible bonds under this subchapter shall apply to the commissioner using a form adopted by the commissioner for the purpose.  The commissioner may adopt a single form on which a school district seeking guarantee or credit enhancement of eligible bonds may apply simultaneously first for guarantee under this subchapter and then, if that guarantee is rejected, for credit enhancement under Subchapter I.
(b)  An application under Subsection (a) must include:
(1)  the name of the school district or charter 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)  An application under Subsection (a) must be accompanied by a fee set by rule of the board in an amount designed to cover the costs of administering the programs to provide the guarantee or credit enhancement of eligible bonds.
Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30, 1995.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1328 (H.B. 3646), Sec. 70, eff. September 1, 2009.
Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 59.07, eff. September 28, 2011.
2023 Texas Statutes › Education Code › Title 2 - Public Education › Subtitle I - School Finance and Fiscal Management › Chapter 45 - School District Funds › Subchapter C. Guaranteed Bonds › Section 45.056. Investigation

Sec. 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 or charter district in regard to:
(1)  the status of the district's accreditation; and
(2)  the total amount of outstanding guaranteed bonds.
(a-1)  For purposes of this subsection, "bond security documents" include the resolution, trust agreement, indenture, ordinance, loan agreement, deed of trust, bond, note, and any additional document executed in connection with the issuance of a charter district bond for which a guarantee is requested under this subchapter.  The commissioner's investigation of an application submitted by a charter district may include evaluation of whether the charter district bond security documents provide a security interest in real property pledged as collateral for the bond and the repayment obligation under the proposed guarantee.  The commissioner may decline to approve the application if the commissioner determines that sufficient security is not provided.
(b)  If following the investigation the commissioner is satisfied that the school district's bonds should be guaranteed under this subchapter or provided credit enhancement under Subchapter I, as applicable, or the charter district's bonds should be guaranteed under this subchapter, the commissioner shall endorse the bonds.
Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30, 1995.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1328 (H.B. 3646), Sec. 71, eff. September 1, 2009.
Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 59.08, eff. September 28, 2011.
Acts 2017, 85th Leg., R.S., Ch. 402 (S.B. 1480), Sec. 3, eff. September 1, 2017.
2023 Texas Statutes › Education Code › Title 2 - Public Education › Subtitle I - School Finance and Fiscal Management › Chapter 45 - School District Funds › Subchapter C. Guaranteed Bonds › Section 45.057. Guarantee Endorsement

Sec. 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 or 53.40, as applicable.
Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30, 1995.
Amended by:
Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 59.09, eff. September 28, 2011.
2023 Texas Statutes › Education Code › Title 2 - Public Education › Subtitle I - School Finance and Fiscal Management › Chapter 45 - School District Funds › Subchapter C. Guaranteed Bonds › Section 45.0571. Charter District Bond Guarantee Reserve Fund

Sec. 45.0571.  CHARTER DISTRICT BOND GUARANTEE RESERVE FUND.  (a)  The charter district bond guarantee reserve fund is a special fund in the state treasury outside the general revenue fund.  The following amounts shall be deposited in the fund:
(1)  money due from a charter district as provided by Subsection (b); and
(2)  interest earned on balances in the fund.
(a-1)  Notwithstanding Chapter 404, Government Code, the charter district bond guarantee reserve fund is managed by the board in the same manner that the permanent school fund is managed by the board.  The board may invest money in the charter district bond guarantee reserve fund in accordance with the investment standard described by Section 404.024(j), Government Code, and the board's investment is not subject to any other limitation or requirement provided by Section 404.024, Government Code.
(a-2)  The board shall adjust the investment portfolio of charter district bond guarantee reserve fund money periodically to ensure that the balance of the fund is sufficient to meet the cash flow requirements of the fund.
(b)  Subject to Subsection (c), a charter district that has a bond guaranteed as provided by this subchapter must remit to the commissioner, for deposit in the charter district bond guarantee reserve fund, an amount equal to 20 percent of the savings to the charter district that is a result of the lower interest rate on the bond due to the guarantee by the permanent school fund.  The amount due under this section shall be paid on receipt by the charter district of the bond proceeds.  The commissioner shall adopt rules to determine the amount due under this section.
(c)  Subsection (b) does not apply if, at the time the charter district receives the proceeds of the bond guaranteed as provided by this subchapter, the balance of the charter district bond guarantee reserve fund is at least equal to three percent of the total amount of outstanding guaranteed bonds issued by charter districts.
(d)  Each year, the commissioner shall:
(1)  review the condition of the bond guarantee program and the amount that must be deposited in the charter district bond guarantee reserve fund from charter districts; and
(2)  determine if charter districts should be required to submit a greater percentage of the savings resulting from the guarantee.
(e)  The commissioner shall make recommendations to the legislature based on the review under Subsection (d).
Added by Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 59.10, eff. September 28, 2011.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 402 (S.B. 1480), Sec. 5, eff. September 1, 2017.
2023 Texas Statutes › Education Code › Title 2 - Public Education › Subtitle I - School Finance and Fiscal Management › Chapter 45 - School District Funds › Subchapter C. Guaranteed Bonds › Section 45.058. Notice of Default

Sec. 45.058.  NOTICE OF DEFAULT.  Immediately following a determination that a school district or charter 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 or charter district shall notify the commissioner.
Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30, 1995.
Amended by:
Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 59.11, eff. September 28, 2011.
2023 Texas Statutes › Education Code › Title 2 - Public Education › Subtitle I - School Finance and Fiscal Management › Chapter 45 - School District Funds › Subchapter C. Guaranteed Bonds › Section 45.059. Payment of School District Bond on Default

Sec. 45.059.  PAYMENT OF SCHOOL DISTRICT BOND ON DEFAULT.  (a)  Immediately following receipt of notice under Section 45.058 that a school district will be or is unable to pay maturing or matured principal or interest on a guaranteed bond, 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, Sec. 1, eff. May 30, 1995.  Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 5.07, eff. Sept. 1, 1997.
Amended by:
Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 59.12, eff. September 28, 2011.
Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 59.13, eff. September 28, 2011.
2023 Texas Statutes › Education Code › Title 2 - Public Education › Subtitle I - School Finance and Fiscal Management › Chapter 45 - School District Funds › Subchapter C. Guaranteed Bonds › Section 45.0591. Payment of Charter District Bond on Default

Sec. 45.0591.  PAYMENT OF CHARTER DISTRICT BOND ON DEFAULT.  (a)  Immediately following receipt of notice under Section 45.058 that a charter district will be or is unable to pay maturing or matured principal or interest on a guaranteed bond, the commissioner shall instruct the comptroller to transfer from the charter district bond guarantee reserve fund created under Section 45.0571 to the district's paying agent the amount necessary to pay the maturing or matured principal or interest.
(b)  If money in the charter district bond guarantee reserve fund is insufficient to pay the amount due on a bond under Subsection (a), 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 balance of the unpaid maturing or matured principal or interest.
(c)  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 fund or funds from which payment was made.
(d)  Following full reimbursement to the charter district bond guarantee reserve fund and the permanent school fund, if applicable, with interest, the comptroller shall further cancel the bond or coupon and forward it to the charter district for which payment was made.
Added by Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 59.14, eff. September 28, 2011.
2023 Texas Statutes › Education Code › Title 2 - Public Education › Subtitle I - School Finance and Fiscal Management › Chapter 45 - School District Funds › Subchapter C. Guaranteed Bonds › Section 45.060. Bonds Not Accelerated on Default

Sec. 45.060.  BONDS NOT ACCELERATED ON DEFAULT.  If a school district or charter 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 or charter district's default.
Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30, 1995.
Amended by:
Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 59.15, eff. September 28, 2011.
2023 Texas Statutes › Education Code › Title 2 - Public Education › Subtitle I - School Finance and Fiscal Management › Chapter 45 - School District Funds › Subchapter C. Guaranteed Bonds › Section 45.061. Reimbursement of Funds

Sec. 45.061.  REIMBURSEMENT OF FUNDS.  (a)  If the commissioner orders payment from the permanent school fund or the charter district bond guarantee reserve fund on behalf of a school district or charter district, the commissioner shall direct the comptroller to withhold the amount paid, plus interest, from the first state money payable to the school district or charter district.  Except as provided by Subsection (a-1), the amount withheld shall be deposited to the credit of the permanent school fund.
(a-1)  After the permanent school fund has been reimbursed for all money paid from the fund as the result of a default of a charter district bond guaranteed under this subchapter, any remaining amounts withheld under Subsection (a) shall be deposited to the credit of the charter district bond guarantee reserve fund.
(b)  In accordance with the rules of the board, the commissioner may authorize reimbursement to the permanent school fund or charter district bond guarantee reserve fund with interest in a manner other than that provided by this section.
(c)  The commissioner may order a school district to set an ad valorem tax rate capable of producing an amount of revenue sufficient to enable the district to:
(1)  provide reimbursement under this section; and
(2)  pay the principal of and interest on district bonds as the principal and interest become due.
(d)  If a school district fails to comply with the commissioner's order under Subsection (c), the commissioner may impose any sanction on the district authorized to be imposed on a district under Subchapter G, Chapter 39, including appointment of a board of managers or annexation to another district, regardless of the district's accreditation status or the duration of a particular accreditation status.
Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30, 1995.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1328 (H.B. 3646), Sec. 72, eff. September 1, 2009.
Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 59.16, eff. September 28, 2011.
Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 59.17, eff. September 28, 2011.
2023 Texas Statutes › Education Code › Title 2 - Public Education › Subtitle I - School Finance and Fiscal Management › Chapter 45 - School District Funds › Subchapter C. Guaranteed Bonds › Section 45.062. Repeated Defaults

Sec. 45.062.  REPEATED DEFAULTS.  (a)  If a total of two or more payments are made under this subchapter or Subchapter I on the bonds of a school district and the commissioner determines that the school district is acting in bad faith under the guarantee program under this subchapter or the credit enhancement program under Subchapter I, 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.
(a-1)  If a total of two or more payments are made under this subchapter on charter district bonds and the commissioner determines that the charter district is acting in bad faith under the guarantee program under this subchapter, the commissioner may request the attorney general to institute appropriate legal action to compel the charter 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, Sec. 1, eff. May 30, 1995.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1328 (H.B. 3646), Sec. 73, eff. September 1, 2009.
Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 59.18, eff. September 28, 2011.
2023 Texas Statutes › Education Code › Title 2 - Public Education › Subtitle I - School Finance and Fiscal Management › Chapter 45 - School District Funds › Subchapter C. Guaranteed Bonds › Section 45.063. Rules

Sec. 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, Sec. 1, eff. May 30, 1995.
2023 Texas Statutes › Education Code › Title 2 - Public Education › Subtitle I - School Finance and Fiscal Management › Chapter 45 - School District Funds › Subchapter D. Sale of Surplus Real Property; Revenue Bonds › Section 45.081. Definitions

Sec. 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, Sec. 1, eff. May 30, 1995.
2023 Texas Statutes › Education Code › Title 2 - Public Education › Subtitle I - School Finance and Fiscal Management › Chapter 45 - School District Funds › Subchapter D. Sale of Surplus Real Property; Revenue Bonds › Section 45.083. Other Laws Not Applicable

Sec. 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, Sec. 1, eff. May 30, 1995.
2023 Texas Statutes › Education Code › Title 2 - Public Education › Subtitle I - School Finance and Fiscal Management › Chapter 45 - School District Funds › Subchapter D. Sale of Surplus Real Property; Revenue Bonds › Section 45.084. Contracts

Sec. 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, Sec. 1, eff. May 30, 1995.
2023 Texas Statutes › Education Code › Title 2 - Public Education › Subtitle I - School Finance and Fiscal Management › Chapter 45 - School District Funds › Subchapter D. Sale of Surplus Real Property; Revenue Bonds › Section 45.086. Liberal Construction

Sec. 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, Sec. 1, eff. May 30, 1995.
2023 Texas Statutes › Education Code › Title 2 - Public Education › Subtitle I - School Finance and Fiscal Management › Chapter 45 - School District Funds › Subchapter D. Sale of Surplus Real Property; Revenue Bonds › Section 45.087. Other Powers Unrestricted

Sec. 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, Sec. 1, eff. May 30, 1995.
2023 Texas Statutes › Education Code › Title 2 - Public Education › Subtitle I - School Finance and Fiscal Management › Chapter 45 - School District Funds › Subchapter E. Miscellaneous Provisions › Section 45.101. Use of Bond Proceeds for Utility Connections

Sec. 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, Sec. 1, eff. May 30, 1995.
2023 Texas Statutes › Education Code › Title 2 - Public Education › Subtitle I - School Finance and Fiscal Management › Chapter 45 - School District Funds › Subchapter E. Miscellaneous Provisions › Section 45.1011. Use of Bond Proceeds for School Safety Compliance

Sec. 45.1011.  USE OF BOND PROCEEDS FOR SCHOOL SAFETY COMPLIANCE.  (a)  The proceeds of bonds issued by a school district for the construction and equipment of school buildings in the district and the purchase of the necessary sites for school buildings may be used to pay the costs associated with complying with school safety and security requirements for school facilities in accordance with Section 37.351.
(b)  This subsection applies to a school district that has been determined by the agency, through the agency's monitoring of safety and security requirements under Section 37.1083, to not be in compliance with those requirements.  Notwithstanding any other law, a school district to which this subsection applies must use the proceeds of bonds described by Subsection (a) to achieve compliance with applicable safety and security requirements in accordance with Section 37.351 before the district may use those proceeds for any other authorized purpose.
Added by Acts 2023, 88th Leg., R.S., Ch. 896 (H.B. 3), Sec. 22, eff. September 1, 2023.
2023 Texas Statutes › Education Code › Title 2 - Public Education › Subtitle I - School Finance and Fiscal Management › Chapter 45 - School District Funds › Subchapter E. Miscellaneous Provisions › Section 45.102. Investment of Bond Proceeds in Obligations of United States or Interest-Bearing Secured Time Bank Deposits

Sec. 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, Sec. 1, eff. May 30, 1995.
2023 Texas Statutes › Education Code › Title 2 - Public Education › Subtitle I - School Finance and Fiscal Management › Chapter 45 - School District Funds › Subchapter E. Miscellaneous Provisions › Section 45.104. Pledge of Delinquent Taxes as Security for Loan

Sec. 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, Sec. 1, eff. May 30, 1995.  Amended by Acts 1999, 76th Leg., ch. 396, Sec. 1.34, eff. Sept. 1, 1999;  Acts 2001, 77th Leg., ch. 1420, Sec. 8.212, eff. Sept. 1, 2001.
2023 Texas Statutes › Education Code › Title 2 - Public Education › Subtitle I - School Finance and Fiscal Management › Chapter 45 - School District Funds › Subchapter E. Miscellaneous Provisions › Section 45.106. Use of County Available Fund Apportionment for Area Schools Career and Technology Education

Sec. 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, Sec. 1, eff. May 30, 1995.
2023 Texas Statutes › Education Code › Title 2 - Public Education › Subtitle I - School Finance and Fiscal Management › Chapter 45 - School District Funds › Subchapter E. Miscellaneous Provisions › Section 45.107. Investment of Gifts, Devises, and Bequests

Sec. 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, Sec. 1, eff. May 30, 1995.  Amended by Acts 2003, 78th Leg., ch. 1103, Sec. 9, eff. Jan. 1, 2004.
2023 Texas Statutes › Education Code › Title 2 - Public Education › Subtitle I - School Finance and Fiscal Management › Chapter 45 - School District Funds › Subchapter E. Miscellaneous Provisions › Section 45.108. Borrowing Money for Current Maintenance Expenses

Sec. 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 or nonnegotiable 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 expenditures relating to notes issued to refund notes previously issued under this section if the refunding notes are coterminous with the refunded obligation.  The term also 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, Sec. 1, eff. May 30, 1995.  Amended by Acts 1999, 76th Leg., ch. 396, Sec. 1.35, eff. Sept. 1, 1999.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 1018 (H.B. 2610), Sec. 2, eff. September 1, 2013.
2023 Texas Statutes › Education Code › Title 2 - Public Education › Subtitle I - School Finance and Fiscal Management › Chapter 45 - School District Funds › Subchapter E. Miscellaneous Provisions › Section 45.110. Authorized but Unissued Bonds

Sec. 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, Sec. 1, eff. May 30, 1995.
2023 Texas Statutes › Education Code › Title 2 - Public Education › Subtitle I - School Finance and Fiscal Management › Chapter 45 - School District Funds › Subchapter E. Miscellaneous Provisions › Section 45.1105. Use of Unspent General Obligation Bond Proceeds

Sec. 45.1105.  USE OF UNSPENT GENERAL OBLIGATION BOND PROCEEDS.  (a) A school district may use the unspent proceeds of issued general obligation bonds only:
(1)  for the specific purposes for which the bonds were authorized;
(2)  to retire the bonds; or
(3)  for a purpose other than the specific purposes for which the bonds were authorized if:
(A)  the specific purposes are accomplished or abandoned; and
(B)  the board of trustees at a public meeting held only for the purpose of considering the use of the unspent bond proceeds approves in separate votes the use of the proceeds for:
(i)  a purpose other than to retire the bonds; and
(ii)  the purpose specified at the time the vote is taken.
(b)  In addition to other requirements of law, notice of a public meeting held under this section must include a statement that the board of trustees will consider the use of unspent bond proceeds for a purpose other than the specific purposes for which the bonds were authorized.
(c)  A public meeting held under this section must provide the public an opportunity to address the board of trustees on the question of using the unspent bond proceeds for a purpose other than the specific purposes for which the bonds were authorized.
Added by Acts 2019, 86th Leg., R.S., Ch. 726 (H.B. 440), Sec. 1, eff. September 1, 2019.
2023 Texas Statutes › Education Code › Title 2 - Public Education › Subtitle I - School Finance and Fiscal Management › Chapter 45 - School District Funds › Subchapter E. Miscellaneous Provisions › Section 45.112. Contracts for Investment of Debt Service Funds

Sec. 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, Sec. 1, eff. June 19, 1999.
2023 Texas Statutes › Education Code › Title 2 - Public Education › Subtitle I - School Finance and Fiscal Management › Chapter 45 - School District Funds › Subchapter E. Miscellaneous Provisions › Section 45.113. Trust for County Permanent School Fund

Sec. 45.113.  TRUST FOR COUNTY PERMANENT SCHOOL FUND.  (a)  Notwithstanding former Subchapter E, Chapter 17, as that subchapter existed on May 1, 1995, the commissioners court of a county may:
(1)  sell or otherwise dispose of county school lands in the manner determined by the court;
(2)  establish an irrevocable trust for the proceeds of a sale or other disposition under Subdivision (1); and
(3)  invest the principal of a trust created under Subdivision (2) in any investment permitted for other county funds under Chapter 2256, Government Code.
(b)  The members of the commissioners court and their successors in office must be the sole trustees of a trust established under Subsection (a)(2). The trustees may not delegate the authority to manage or invest the trust but may contract with qualified persons for investment advice.
(c)  The principal of a trust established under Subsection (a)(2) constitutes a portion of the county permanent school fund and must be held in perpetuity for the benefit of the public schools in the county. The income of a trust established under Subsection (a)(2) constitutes a portion of the county available school fund and may be distributed as permitted by law.
Added by Acts 2007, 80th Leg., R.S., Ch. 641 (H.B. 890), Sec. 1, eff. June 15, 2007.