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§ 38.001. IMMUNIZATION; REQUIREMENTS; EXCEPTIONS. (a) Each student shall be fully immunized against diphtheria, rubeola, rubella, mumps, tetanus, and poliomyelitis, except as provided by Subsection (c).
(b) Subject to Subsection (c), the Texas Board of Health may modify or delete any of the immunizations in Subsection (a) or may require immunizations against additional diseases as a requirement for admission to any elementary or secondary school.
(c) Immunization is not required for a person's admission to any elementary or secondary school if the person applying for admission:
(1) submits to the admitting official: (A) an affidavit or a certificate signed by a physician who is duly registered and licensed to practice medicine in the United States, in which it is stated that, in the physician's opinion, the immunization required poses a significant risk to the health and well-being of the applicant or any member of the applicant's family or household; or
(B) an affidavit signed by the applicant or, if a minor, by the applicant's parent or guardian stating that the applicant declines immunization for reasons of conscience, including a religious belief; or
(2) is a member of the armed forces of the United States and is on active duty.
(c-1) An affidavit submitted under Section (c)(1)(B) must be on a form described by Section 161.0041, Health and Safety Code, and must be submitted to the admitting official not later than the 90th day after the date the affidavit is notarized.
(d) The Texas Department of Health shall provide the required immunization to children in areas where no local provision exists to provide those services.
(e) A person may be provisionally admitted to an elementary or secondary school if the person has begun the required immunizations and if the person continues to receive the necessary immunizations as rapidly as is medically feasible. The Texas Department of Health shall adopt rules relating to the provisional admission of persons to an elementary or secondary school.
(f) A person who has not received the immunizations required by this section for reasons of conscience, including because of the person's religious beliefs, may be excluded from school in times of emergency or epidemic declared by the commissioner of public health.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995. Amended by Acts 2003, 78th Leg., ch. 198, § 2.160, eff. Sept. 1, 2003.
§ 38.002. IMMUNIZATION RECORDS; REPORTING. (a) Each public school shall keep an individual immunization record during the period of attendance for each student admitted. The records shall be open for inspection at all reasonable times by the Texas Education Agency or by representatives of local health departments or the Texas Department of Health.
(b) Each public school shall cooperate in transferring students' immunization records to other schools. Specific approval from students, parents, or guardians is not required before transferring those records.
(c) The Texas Education Agency and the Texas Department of Health shall develop the form for a required annual report of the immunization status of students. The report shall be submitted by all schools at the time and in the manner indicated in the instructions printed on the form.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 38.0025. DISSEMINATION OF BACTERIAL MENINGITIS INFORMATION. (a) The agency shall prescribe procedures by which each school district shall provide information relating to bacterial meningitis to its students and their parents each school year. The procedures must ensure that the information is reasonably likely to come to the attention of the parents of each student. The agency shall prescribe the form and content of the information. The information must cover:
(1) the symptoms of the disease, how it may be diagnosed, and its possible consequences if untreated;
(2) how the disease is transmitted, how it may be prevented, and the relative risk of contracting the disease for primary and secondary school students;
(3) the availability and effectiveness of vaccination against and treatment for the disease, and a brief description of the risks and possible side effects of vaccination; and
(4) sources of additional information regarding the disease, including any appropriate office of the school district and the appropriate office of the Texas Department of Health.
(b) The agency shall consult with the Texas Department of Health in prescribing the content of the information to be provided to students under this section. The agency shall establish an advisory committee to assist the agency in the initial implementation of this section. The advisory committee must include at least two members who are parents of students at public schools in this state.
(c) A school district, with the written consent of the agency, may provide the information required by this section to its students and their parents by a method different from the method prescribed by the agency under Subsection (a) if the agency determines that method would be effective in bringing the information to the attention of the parents of each student.
Added by Acts 2001, 77th Leg., ch. 219, § 2, eff. May 22, 2001.
§ 38.003. SCREENING AND TREATMENT FOR DYSLEXIA AND RELATED DISORDERS. (a) Students enrolling in public schools in this state shall be tested for dyslexia and related disorders at appropriate times in accordance with a program approved by the State Board of Education.
(b) In accordance with the program approved by the State Board of Education, the board of trustees of each school district shall provide for the treatment of any student determined to have dyslexia or a related disorder.
(c) The State Board of Education shall adopt any rules and standards necessary to administer this section.
(d) In this section: (1) "Dyslexia" means a disorder of constitutional origin manifested by a difficulty in learning to read, write, or spell, despite conventional instruction, adequate intelligence, and sociocultural opportunity.
(2) "Related disorders" includes disorders similar to or related to dyslexia, such as developmental auditory imperception, dysphasia, specific developmental dyslexia, developmental dysgraphia, and developmental spelling disability.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 38.004. CHILD ABUSE REPORTING AND PROGRAMS. (a) The agency shall develop a policy governing the child abuse reports required by Chapter 261, Family Code, of school districts and their employees. The policy must provide for cooperation with law enforcement child abuse investigations without the consent of the child's parents if necessary, including investigations by the Department of Protective and Regulatory Services. Each school district shall adopt the policy.
(b) Each school district shall provide child abuse antivictimization programs in elementary and secondary schools.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 38.005. PROTECTIVE EYE DEVICES IN PUBLIC SCHOOLS. Each teacher and student must wear industrial-quality eye-protective devices in appropriate situations as determined by school district policy.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 38.006. TOBACCO ON SCHOOL PROPERTY. The board of trustees of a school district shall:
(1) prohibit smoking or using tobacco products at a school-related or school-sanctioned activity on or off school property;
(2) prohibit students from possessing tobacco products at a school-related or school-sanctioned activity on or off school property; and
(3) ensure that school personnel enforce the policies on school property.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 38.007. ALCOHOL-FREE SCHOOL ZONES. (a) The board of trustees of a school district shall prohibit the use of alcoholic beverages at a school-related or school-sanctioned activity on or off school property.
(b) The board of trustees of a school district shall attempt to provide a safe alcohol-free environment to students coming to or going from school. The board of trustees may cooperate with local law enforcement officials and the Texas Alcoholic Beverage Commission in attempting to provide this environment and in enforcing Sections 101.75, 109.33, and 109.59, Alcoholic Beverage Code. Additionally, the board, if a majority of the area of a district is located in a municipality with a population of 900,000 or more, may petition the commissioners court of the county in which the district is located or the governing board of an incorporated city or town in which the district is located to adopt a 1,000-foot zone under Section 109.33, Alcoholic Beverage Code.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 38.008. POSTING OF STEROID LAW NOTICE. Each school in a school district in which there is a grade level of seven or higher shall post in a conspicuous location in the school gymnasium and each other place in a building where physical education classes are conducted the following notice:
Anabolic steroids are for medical use only. State law prohibits possessing, dispensing, delivering, or administering an anabolic steroid in any manner not allowed by state law. State law provides that body building, muscle enhancement, or the increase of muscle bulk or strength through the use of an anabolic steroid or human growth hormone by a person who is in good health is not a valid medical purpose. Only a medical doctor may prescribe an anabolic steroid or human growth hormone for a person. A violation of state law concerning anabolic steroids or human growth hormones is a criminal offense punishable by confinement in jail or imprisonment in the institutional division of the Texas Department of Criminal Justice.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 38.0081. INFORMATION ABOUT STEROIDS. (a) The agency, in conjunction with the Department of State Health Services, shall:
(1) develop information about the use of anabolic steroids and the health risks involved with such use; and
(2) distribute the information to school districts. (b) Each school district shall, at appropriate grade levels as determined by the State Board of Education, provide the information developed under Subsection (a) to district students, particularly to those students involved in extracurricular athletic activities.
Added by Acts 2005, 79th Leg., ch. 1177, § 2, eff. June 18, 2005.
§ 38.009. ACCESS TO MEDICAL RECORDS. (a) A school administrator, nurse, or teacher is entitled to access to a student's medical records maintained by the school district for reasons determined by district policy.
(b) A school administrator, nurse, or teacher who views medical records under this section shall maintain the confidentiality of those medical records.
(c) This section does not authorize a school administrator, nurse, or teacher to require a student to be tested to determine the student's medical condition or status.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 38.0095. PARENTAL ACCESS TO MEDICAL RECORDS. (a) A parent or guardian of a student is entitled to access to the student's medical records maintained by a school district.
(b) On request of a student's parent or guardian, the school district shall provide a copy of the student's medical records to the parent or guardian. The district may not impose a charge for providing the copy that exceeds the charge authorized by Section 552.261, Government Code, for providing a copy of public information.
Added by Acts 1999, 76th Leg., ch. 1418, § 3, eff. June 19, 1999.
§ 38.010. OUTSIDE COUNSELORS. (a) A school district or school district employee may not refer a student to an outside counselor for care or treatment of a chemical dependency or an emotional or psychological condition unless the district:
(1) obtains prior written consent for the referral from the student's parent;
(2) discloses to the student's parent any relationship between the district and the outside counselor;
(3) informs the student and the student's parent of any alternative public or private source of care or treatment reasonably available in the area;
(4) requires the approval of appropriate school district personnel before a student may be referred for care or treatment or before a referral is suggested as being warranted; and
(5) specifically prohibits any disclosure of a student record that violates state or federal law.
(b) In this section, "parent" includes a managing conservator or guardian.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 38.011. DIETARY SUPPLEMENTS. (a) A school district employee may not: (1) knowingly sell, market, or distribute a dietary supplement that contains performance enhancing compounds to a primary or secondary education student with whom the employee has contact as part of the employee's school district duties; or
(2) knowingly endorse or suggest the ingestion, intranasal application, or inhalation of a dietary supplement that contains performance enhancing compounds by a primary or secondary education student with whom the employee has contact as part of the employee's school district duties.
(b) This section does not prohibit a school district employee from: (1) providing or endorsing a dietary supplement that contains performance enhancing compounds to, or suggesting the ingestion, intranasal application, or inhalation of a dietary supplement that contains performance enhancing compounds by, the employee's child; or
(2) selling, marketing, or distributing a dietary supplement that contains performance enhancing compounds to, or endorsing or suggesting the ingestion, intranasal application, or inhalation of a dietary supplement that contains performance enhancing compounds by, a primary or secondary education student as part of activities that:
(A) do not occur on school property or at a school-related function; (B) are entirely separate from any aspect of the employee's employment with the school district; and
(C) do not in any way involve information about or contacts with students that the employee has had access to, directly or indirectly, through any aspect of the employee's employment with the school district.
(c) A person who violates this section commits an offense. An offense under this section is a Class C misdemeanor.
(d) In this section: (1) "Dietary supplement" has the meaning assigned by 21 U.S.C. Section 321 and its subsequent amendments.
(2) "Performance enhancing compound" means a manufactured product for oral ingestion, intranasal application, or inhalation that:
(A) contains a stimulant, amino acid, hormone precursor, herb or other botanical, or any other substance other than an essential vitamin or mineral; and
(B) is intended to increase athletic or intellectual performance, promote muscle growth, or increase an individual's endurance or capacity for exercise.
Added by Acts 1999, 76th Leg., ch. 1086, § 1, eff. Sept. 1, 1999.
§ 38.012. NOTICE CONCERNING HEALTH CARE SERVICES. (a) Before a school district or school may expand or change the health care services available at a school in the district from those that were available on January 1, 1999, the board of trustees must:
(1) hold a public hearing at which the board discloses all information on the proposed health care services, including:
(A) all health care services to be provided; (B) whether federal law permits or requires any health care service provided to be kept confidential from parents;
(C) whether a child's medical records will be accessible to the child's parent;
(D) information concerning grant funds to be used; (E) the titles of persons who will have access to the medical records of a student; and
(F) the security measures that will be used to protect the privacy of students' medical records; and
(2) approve the expansion or change by a record vote. (b) A hearing under Subsection (a) must include an opportunity for public comment on the proposal.
Added by Acts 1999, 76th Leg., ch. 1418, § 2, eff. June 19, 1999.
§ 38.013. COORDINATED HEALTH PROGRAM FOR ELEMENTARY, MIDDLE, AND JUNIOR HIGH SCHOOL STUDENTS. (a) The agency shall make available to each school district one or more coordinated health programs designed to prevent obesity, cardiovascular disease, and Type 2 diabetes in elementary school, middle school, and junior high school students. Each program must provide for coordinating:
(1) health education; (2) physical education and physical activity; (3) nutrition services; and (4) parental involvement. (a-1) The commissioner by rule shall adopt criteria for evaluating a coordinated health program before making the program available under Subsection (a). Before adopting the criteria, the commissioner shall request review and comment concerning the criteria from the Department of State Health Services School Health Advisory Committee. The commissioner may make available under Subsection (a) only those programs that meet criteria adopted under this subsection.
(b) The agency shall notify each school district of the availability of the programs.
(c) The commissioner by rule shall adopt criteria for evaluating the nutritional services component of a program under this section that includes an evaluation of program compliance with the Department of Agriculture guidelines relating to foods of minimal nutritional value.
Added by Acts 2001, 77th Leg., ch. 907, § 3, eff. June 14, 2001. Amended by Acts 2003, 78th Leg., ch. 944, § 3, eff. Sept. 1, 2003; Acts 2005, 79th Leg., ch. 784, § 3, 4, eff. June 17, 2005.
§ 38.014. IMPLEMENTATION OF COORDINATED HEALTH PROGRAM FOR ELEMENTARY, MIDDLE, AND JUNIOR HIGH SCHOOL STUDENTS. (a) Each school district shall:
(1) participate in appropriate training for the implementation of the program approved by the agency under Section 38.013; and
(2) implement the program in each elementary school, middle school, and junior high school in the district.
(b) The agency, in cooperation with the Texas Department of Health, shall adopt a schedule for regional education service centers to provide necessary training under this section.
Added by Acts 2001, 77th Leg., ch. 907, § 3, eff. June 14, 2001. Amended by Acts 2005, 79th Leg., ch. 784, § 5, 6, eff. June 17, 2005.
§ 38.0141. REPORTING OF CERTAIN HEALTH AND SAFETY INFORMATION REQUIRED. Each school district shall provide to the agency information as required by the commissioner, including statistics and data, relating to student health and physical activity and information described by Section 28.004(k), presented in a form determined by the commissioner. The district shall provide the information required by this section for the district and for each campus in the district.
Added by Acts 2005, 79th Leg., ch. 784, § 7, eff. June 17, 2005.
§ 38.015. SELF-ADMINISTRATION OF PRESCRIPTION ASTHMA MEDICINE BY STUDENTS. (a) In this section:
(1) "Parent" includes a person standing in parental relation. (2) "Self-administration of prescription asthma medicine" means a student's discretionary use of prescription asthma medicine.
(b) A student with asthma is entitled to possess and self-administer prescription asthma medicine while on school property or at a school-related event or activity if:
(1) the prescription asthma medicine has been prescribed for that student as indicated by the prescription label on the medicine;
(2) the self-administration is done in compliance with the prescription or written instructions from the student's physician or other licensed health care provider; and
(3) a parent of the student provides to the school: (A) a written authorization, signed by the parent, for the student to self-administer prescription asthma medicine while on school property or at a school-related event or activity; and
(B) a written statement from the student's physician or other licensed health care provider, signed by the physician or provider, that states:
(i) that the student has asthma and is capable of self-administering the prescription asthma medicine;
(ii) the name and purpose of the medicine; (iii) the prescribed dosage for the medicine; (iv) the times at which or circumstances under which the medicine may be administered; and
(v) the period for which the medicine is prescribed. (c) The physician's statement must be kept on file in the office of the school nurse of the school the student attends or, if there is not a school nurse, in the office of the principal of the school the student attends.
(d) This section does not: (1) waive any liability or immunity of a governmental unit or its officers or employees; or
(2) create any liability for or a cause of action against a governmental unit or its officers or employees.
(e) The commissioner may adopt rules and prescribe forms to assist in the implementation of this section.
Added by Acts 2001, 77th Leg., ch. 511, § 1, eff. June 11, 2001. Renumbered from V.T.C.A., Education Code § 38.013 by Acts 2003, 78th Leg., ch. 1275, § 2(19), eff. Sept. 1, 2003.
§ 38.016. PSYCHOTROPIC DRUGS AND PSYCHIATRIC EVALUATIONS OR EXAMINATIONS. (a) In this section:
(1) "Parent" includes a guardian or other person standing in parental relation.
(2) "Psychotropic drug" means a substance that is: (A) used in the diagnosis, treatment, or prevention of a disease or as a component of a medication; and
(B) intended to have an altering effect on perception, emotion, or behavior.
(b) A school district employee may not: (1) recommend that a student use a psychotropic drug; or (2) suggest any particular diagnosis; or (3) use the refusal by a parent to consent to administration of a psychotropic drug to a student or to a psychiatric evaluation or examination of a student as grounds, by itself, for prohibiting the child from attending a class or participating in a school-related activity.
(c) Subsection (b) does not: (1) prevent an appropriate referral under the child find system required under 20 U.S.C. Section 1412, as amended; or
(2) prohibit a school district employee who is a registered nurse, advanced nurse practitioner, physician, or certified or appropriately credentialed mental health professional from recommending that a child be evaluated by an appropriate medical practitioner; or
(3) prohibit a school employee from discussing any aspect of a child's behavior or academic progress with the child's parent or another school district employee.
(d) The board of trustees of each school district shall adopt a policy to ensure implementation and enforcement of this section.
(e) An act in violation of Subsection (b) does not override the immunity from personal liability granted in Section 22.051 or other law or the district's sovereign and governmental immunity.
Added by Acts 2003, 78th Leg., ch. 1058, § 1, eff. June 20, 2003.
SUBCHAPTER B. SCHOOL-BASED HEALTH CENTERS
§ 38.051. ESTABLISHMENT OF SCHOOL-BASED HEALTH CENTERS. (a) A school district in this state may, if the district identifies the need, design a model in accordance with this subchapter for the delivery of cooperative health care programs for students and their families and may compete for grants awarded under this subchapter. The model may provide for the delivery of conventional health services and disease prevention of emerging health threats that are specific to the district.
(b) On the recommendation of an advisory council established under Section 38.058, a school district may establish a school-based health center at one or more campuses in the district to meet the health care needs of students and their families.
Added by Acts 1999, 76th Leg., ch. 1418, § 1, eff. June 19, 1999. Renumbered from V.T.C.A., Education Code § 38.011 and amended by Acts 2001, 77th Leg., ch. 1420, § 4.005, eff. Sept. 1, 2001.
§ 38.052. CONTRACT FOR SERVICES. A district may contract with a person to provide services at a school-based health center.
Added by Acts 1999, 76th Leg., ch. 1418, § 1, eff. June 19, 1999. Renumbered from V.T.C.A., Education Code § 38.011 and amended by Acts 2001, 77th Leg., ch. 1420, § 4.005, eff. Sept. 1, 2001.
§ 38.053. PARENTAL CONSENT REQUIRED. (a) A school-based health center may provide services to a student only if the district or the provider with whom the district contracts obtains the written consent of the student's parent or guardian or another person having legal control of the student on a consent form developed by the district or provider. The student's parent or guardian or another person having legal control of the student may give consent for a student to receive ongoing services or may limit consent to one or more services provided on a single occasion.
(b) The consent form must list every service the school-based health center delivers in a format that complies with all applicable state and federal laws and allows a person to consent to one or more categories of services.
Added by Acts 1999, 76th Leg., ch. 1418, § 1, eff. June 19, 1999. Renumbered from V.T.C.A., Education Code § 38.011 and amended by Acts 2001, 77th Leg., ch. 1420, § 4.005, eff. Sept. 1, 2001.
§ 38.054. CATEGORIES OF SERVICES. The permissible categories of services are:
(1) family and home support; (2) health care, including immunizations; (3) dental health care; (4) health education; and (5) preventive health strategies.
Added by Acts 1999, 76th Leg., ch. 1418, § 1, eff. June 19, 1999. Renumbered from V.T.C.A., Education Code § 38.011 and amended by Acts 2001, 77th Leg., ch. 1420, § 4.005, eff. Sept. 1, 2001.
§ 38.055. USE OF GRANT FUNDS FOR REPRODUCTIVE SERVICES PROHIBITED. Reproductive services, counseling, or referrals may not be provided through a school-based health center using grant funds awarded under this subchapter.
Added by Acts 1999, 76th Leg., ch. 1418, § 1, eff. June 19, 1999. Renumbered from V.T.C.A., Education Code § 38.011 and amended by Acts 2001, 77th Leg., ch. 1420, § 4.005, eff. Sept. 1, 2001.
§ 38.056. PROVISION OF CERTAIN SERVICES BY LICENSED HEALTH CARE PROVIDER REQUIRED. Any service provided using grant funds awarded under this subchapter must be provided by an appropriate professional who is properly licensed, certified, or otherwise authorized under state law to provide the service.
Added by Acts 1999, 76th Leg., ch. 1418, § 1, eff. June 19, 1999. Renumbered from V.T.C.A., Education Code § 38.011 and amended by Acts 2001, 77th Leg., ch. 1420, § 4.005, eff. Sept. 1, 2001.
§ 38.057. IDENTIFICATION OF HEALTH-RELATED CONCERNS. (a) The staff of a school-based health center and the person whose consent is obtained under Section 38.053 shall jointly identify any health-related concerns of a student that may be interfering with the student's well-being or ability to succeed in school.
(b) If it is determined that a student is in need of a referral for mental health services, the staff of the center shall notify the person whose consent is required under Section 38.053 verbally and in writing of the basis for the referral. The referral may not be provided unless the person provides written consent for the type of service to be provided and provides specific written consent for each treatment occasion.
Added by Acts 1999, 76th Leg., ch. 1418, § 1, eff. June 19, 1999. Renumbered from V.T.C.A., Education Code § 38.011 and amended by Acts 2001, 77th Leg., ch. 1420, § 4.005, eff. Sept. 1, 2001.
§ 38.058. HEALTH EDUCATION AND HEALTH CARE ADVISORY COUNCIL. (a) The board of trustees of a school district may establish and appoint members to a local health education and health care advisory council to make recommendations to the district on the establishment of school-based health centers and to assist the district in ensuring that local community values are reflected in the operation of each center and in the provision of health education.
(b) A majority of the members of the council must be parents of students enrolled in the district. In addition to the appointees who are parents of students, the board of trustees shall also appoint at least one person from each of the following groups:
(1) teachers; (2) school administrators; (3) licensed health care professionals; (4) the clergy; (5) law enforcement; (6) the business community; (7) senior citizens; and (8) students.
Added by Acts 1999, 76th Leg., ch. 1418, § 1, eff. June 19, 1999. Renumbered from V.T.C.A., Education Code § 38.011 and amended by Acts 2001, 77th Leg., ch. 1420, § 4.005, eff. Sept. 1, 2001.
§ 38.059. ASSISTANCE OF PUBLIC HEALTH AGENCY. (a) A school district may seek assistance in establishing and operating a school-based health center from any public health agency in the community. On request, a public health agency shall cooperate with a district and to the extent practicable, considering the resources of the agency, may provide assistance.
(b) A district and a public health agency may, by agreement, jointly establish, operate, and fund a school-based health center.
Added by Acts 1999, 76th Leg., ch. 1418, § 1, eff. June 19, 1999. Renumbered from V.T.C.A., Education Code § 38.011 and amended by Acts 2001, 77th Leg., ch. 1420, § 4.005, eff. Sept. 1, 2001.
§ 38.060. COORDINATION WITH EXISTING PROVIDERS IN CERTAIN AREAS. (a) This section applies only to a school-based health center serving an area that:
(1) is located in a county with a population not greater than 50,000; or (2) has been designated under state or federal law as: (A) a health professional shortage area; (B) a medically underserved area; or (C) a medically underserved community by the Office of Rural Community Affairs.
(b) If a school-based health center is located in an area described by Subsection (a), the school district and the advisory council established under Section 38.058 shall make a good faith effort to identify and coordinate with existing providers to preserve and protect existing health care systems and medical relationships in the area.
(c) The council shall keep a record of efforts made to coordinate with existing providers.
Added by Acts 1999, 76th Leg., ch. 1418, § 1, eff. June 19, 1999. Renumbered from V.T.C.A., Education Code § 38.011 and amended by Acts 2001, 77th Leg., ch. 1420, § 4.005, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 609, § 7, eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch. 1276, § 9.006(f), eff. Sept. 1, 2003.
§ 38.061. COMMUNICATION WITH PRIMARY CARE PHYSICIAN. (a) If a person receiving a medical service from a school-based health center has a primary care physician, the staff of the center shall provide notice of the service the person received to the primary care physician in order to allow the physician to maintain a complete medical history of the person.
(b) The staff of a school-based health center shall, before delivering a medical service to a person with a primary care physician under the state Medicaid program, a state children's health plan program, or a private health insurance or health benefit plan, notify the physician for the purpose of sharing medical information and obtaining authorization for delivering the medical service.
Added by Acts 1999, 76th Leg., ch. 1418, § 1, eff. June 19, 1999. Renumbered from V.T.C.A., Education Code § 38.011 and amended by Acts 2001, 77th Leg., ch. 1420, § 4.005, eff. Sept. 1, 2001.
§ 38.062. FUNDING FOR PROVISION OF SERVICES. A school district or the provider with whom the district contracts shall seek all available sources of funding to compensate the district or provider for services provided by a school-based health center, including money available under the state Medicaid program, a state children's health plan program, or private health insurance or health benefit plans or available from those persons using a school-based health center who have the ability to pay for the services.
Added by Acts 1999, 76th Leg., ch. 1418, § 1, eff. June 19, 1999. Renumbered from V.T.C.A., Education Code § 38.011 and amended by Acts 2001, 77th Leg., ch. 1420, § 4.005, eff. Sept. 1, 2001.
§ 38.063. GRANTS. (a) Subject to the availability of federal or state appropriated funds, the commissioner of public health shall administer a program under which grants are awarded to assist school districts with the costs of operating school-based health centers in accordance with this section.
(b) The commissioner of public health, by rules adopted in accordance with this section, shall establish procedures for awarding grants. The rules must provide that:
(1) grants are awarded to school districts on an annual basis through a competitive process; and
(2) a preference is given to school districts that are located in rural areas or that have low property wealth per student.
(c) All health care programs should be designed to meet the following goals:
(1) reducing student absenteeism; (2) increasing a student's ability to meet the student's academic potential; and
(3) stabilizing the physical well-being of a student. (d) A school district may not receive more than $250,000 per biennium through grants awarded under this section.
(e) To be eligible to receive a grant, a district must provide matching funds in accordance with rules adopted under Subsection (b). The matching funds may be obtained from any source available to the district, including in-kind contributions, community or foundation grants, individual contributions, and local governmental agency operating funds.
(f) The commissioner of public health shall adopt rules establishing standards for health care centers funded through grants that place primary emphasis on delivery of health services and secondary emphasis on population-based models that prevent emerging health threats.
(g) The commissioner of public health shall require client surveys to be conducted in school-based health centers funded through grants awarded under this section, and the results of those surveys must be included in the annual report required under Section 38.064.
Added by Acts 1999, 76th Leg., ch. 1418, § 1, eff. June 19, 1999. Renumbered from V.T.C.A., Education Code § 38.011 and amended by Acts 2001, 77th Leg., ch. 1420, § 4.005, eff. Sept. 1, 2001.
§ 38.064. REPORT TO LEGISLATURE. (a) Based on statistics obtained from every school-based health center in this state, the commissioner of public health shall issue an annual report to the legislature about the relative efficacy of services delivered by school-based health centers and any increased academic success of students at campuses served by those centers, with special emphasis on any:
(1) increased attendance; (2) decreased drop-out rates; (3) improved student health; and (4) improved performance on student assessment instruments administered under Subchapter B, Chapter 39.
(b) In obtaining statistics for preparation of the report required by this section, the commissioner of public health shall ensure that data is collected for each county and aggregated appropriately according to geographical region.
Added by Acts 1999, 76th Leg., ch. 1418, § 1, eff. June 19, 1999. Renumbered from V.T.C.A., Education Code § 38.011 and amended by Acts 2001, 77th Leg., ch. 1420, § 4.005, eff. Sept. 1, 2001. § 43.001. COMPOSITION OF PERMANENT SCHOOL FUND AND AVAILABLE SCHOOL FUND. (a) Except as provided by Subsection (b), the permanent school fund, which is a perpetual endowment for the public schools of this state, consists of:
(1) all land appropriated for the public schools by the constitution and laws of this state;
(2) all of the unappropriated public domain remaining in this state, including all land recovered by the state by suit or otherwise except pine forest land as defined by Section 88.111;
(3) all proceeds from the authorized sale of permanent school fund land; (4) all proceeds from the lawful sale of any other properties belonging to the permanent school fund;
(5) all investments authorized by Section 43.003 of properties belonging to the permanent school fund; and
(6) all income from the mineral development of permanent school fund land, including income from mineral development of riverbeds and other submerged land.
Text of subsec. (b) as amended by Acts 2003, 78th Leg., ch. 201, § 36 (b) The available school fund, which shall be apportioned annually to each county according to its scholastic population, consists of:
(1) the interest and dividends arising from any securities or funds belonging to the permanent school fund, as determined in accordance with the accrual basis of accounting;
(2) all interest derivable from the proceeds of the sale of land set apart for the permanent school fund;
(3) all money derived from the lease of land belonging to the permanent school fund;
(4) one-fourth of all revenue derived from all state occupation taxes, exclusive of delinquencies and cost of collection;
(5) one-fourth of revenue derived from state gasoline and special fuels excise taxes as provided by law; and
(6) all other appropriations to the available school fund made by the legislature for public school purposes.
Text of subsec. (b) as amended by Acts 2003, 78th Leg., ch. 328, § 2 (b) The available school fund, which shall be apportioned annually to each county according to its scholastic population, consists of:
(1) the distributions to the fund from the permanent school fund as provided by Section 5(a), Article VII, Texas Constitution;
(2) one-fourth of all revenue derived from all state occupation taxes, exclusive of delinquencies and cost of collection;
(3) one-fourth of revenue derived from state gasoline and special fuels excise taxes as provided by law; and
(4) all other appropriations to the available school fund made by the legislature for public school purposes.
(c) The term "scholastic population" in Subsection (b) or any other law governing the apportionment, distribution, and transfer of the available school fund means all students of school age enrolled in average daily attendance the preceding school year in the public elementary and high school grades of school districts within or under the jurisdiction of a county of this state.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995. Amended by Acts 2003, 78th Leg., ch. 201, § 36, eff. June 10, 2003; Acts 2003, 78th Leg., ch. 328, § 2, eff. Jan. 1, 2004.
§ 43.002. TRANSFERS FROM PERMANENT SCHOOL FUND AND GENERAL REVENUE FUND TO AVAILABLE SCHOOL FUND. (a) On the first working day of each month in a state fiscal year, the comptroller shall transfer from the permanent school fund to the available school fund an amount equal to one-twelfth of the annual distribution from the permanent school fund to the available school fund as provided by Section 5(a), Article VII, Texas Constitution, for the fiscal year.
(a-1) Expired. (a-2) Expired. (b) Of the amounts available for transfer from the general revenue fund to the available school fund for the months of January and February of each fiscal year, no more than the amount necessary to enable the comptroller to distribute from the available school fund an amount equal to 9-1/2 percent of the estimated annual available school fund apportionment to category 1 school districts, as defined by Section 42.259, and 3-1/2 percent of the estimated annual available school fund apportionment to category 2 school districts, as defined by Section 42.259, may be transferred from the general revenue fund to the available school fund. Any remaining amount that would otherwise be available for transfer for the months of January and February shall be transferred from the general revenue fund to the available school fund in equal amounts in June and in August of the same fiscal year.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995. Amended by Acts 2003, 78th Leg., ch. 328, § 3, eff. Jan. 1, 2004.
§ 43.003. INVESTMENT OF PERMANENT SCHOOL FUND. In compliance with this section, the State Board of Education may invest the permanent school fund in the types of securities, which must be carefully examined by the State Board of Education and be found to be safe and proper investments for the fund as specified below:
(1) securities, bonds, or other obligations issued, insured, or guaranteed in any manner by the United States Government or any of its agencies and in bonds issued by this state;
(2) obligations and pledges of The University of Texas; (3) corporate bonds, debentures, or obligations of United States corporations of at least "A" rating;
(4) obligations of United States corporations that mature in less than one year and are of the highest rating available at the time of investment;
(5) bonds issued, assumed, or guaranteed by the Inter-American Development Bank, the International Bank of Reconstruction and Development (the World Bank), the African Development Bank, the Asian Development Bank, and the International Finance Corporation;
(6) bonds of counties, school districts, municipalities, road precincts, drainage, irrigation, navigation, and levee districts in this state, subject to the following requirements:
(A) the securities, before purchase, must have been diligently investigated by the attorney general both as to form and as to legal compliance with applicable laws;
(B) the attorney general's certificate of validity procured by the party offering the bonds, obligations, or pledges must accompany the securities when they are submitted for registration to the comptroller, who must preserve the certificates;
(C) the public securities, if purchased, and when certified and registered as specified under Paragraph (B), are incontestable unless issued fraudulently or in violation of a constitutional limitation, and the certificates of the attorney general are prima facie evidence of the validity of the bonds and bond coupons; and
(D) after the issuing political subdivision has received the proceeds from the sales of the securities, the issuing agency is estopped to deny their validity, and the securities are valid and binding obligations;
(7) preferred stocks and common stocks that the State Board of Education considers proper investments for the permanent school fund, subject to the following requirements:
(A) in making all of those investments, the State Board of Education shall exercise the judgment and care under the circumstances then prevailing that persons of ordinary prudence, discretion, and intelligence exercise in the management of their own affairs, not in regard to speculation but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital;
(B) the company issuing the stock must be incorporated in the United States, and the stocks must have paid dividends for five consecutive years or longer immediately before the date of purchase and the stocks, except for bank stocks and insurance stocks, must be listed on an exchange registered with the Securities and Exchange Commission or its successors; and
(C) not more than one percent of the permanent school fund may be invested in stock issued by one corporation and not more than five percent of the voting stock of any one corporation will be owned; and
(8) notwithstanding any other law or provision of this code, first lien real estate mortgage securities insured by the Federal Housing Administration under the National Housing Act of the United States, or in any other first lien real estate mortgage securities guaranteed in whole or in part by the United States.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 43.0031. PERMANENT SCHOOL FUND ETHICS POLICY. (a) In addition to any other requirements provided by law, the State Board of Education shall adopt and enforce an ethics policy that provides standards of conduct relating to the management and investment of the permanent school fund. The ethics policy must include provisions that address the following issues as they apply to the management and investment of the permanent school fund and to persons responsible for managing and investing the fund:
(1) general ethical standards; (2) conflicts of interest; (3) prohibited transactions and interests; (4) the acceptance of gifts and entertainment; (5) compliance with applicable professional standards; (6) ethics training; and (7) compliance with and enforcement of the ethics policy. (b) The ethics policy must include provisions applicable to: (1) members of the State Board of Education; (2) the commissioner; (3) employees of the agency; and (4) any person who provides services to the board relating to the management or investment of the permanent school fund.
(c) Not later than the 45th day before the date on which the board intends to adopt a proposed ethics policy or an amendment to or revision of an adopted ethics policy, the board shall submit a copy of the proposed policy, amendment, or revision to the Texas Ethics Commission and the state auditor for review and comments. The board shall consider any comments from the commission or state auditor before adopting the proposed policy.
(d) The provisions of the ethics policy that apply to a person who provides services to the board relating to the management or investment of the permanent school fund must be based on the Code of Ethics and the Standards of Professional Conduct prescribed by the Association for Investment Management and Research or other ethics standards adopted by another appropriate professionally recognized entity.
(e) The board shall ensure that applicable provisions of the ethics policy are included in any contract under which a person provides services to the board relating to the management and investment of the permanent school fund.
Added by Acts 1999, 76th Leg., ch. 1488, § 1, eff. Sept. 1, 1999.
§ 43.0032. CONFLICTS OF INTEREST. (a) A member of the State Board of Education, the commissioner, an employee of the agency, or a person who provides services to the board that relate to the management or investment of the permanent school fund who has a business, commercial, or other relationship that could reasonably be expected to diminish the person's independence of judgment in the performance of the person's responsibilities relating to the management or investment of the fund shall disclose the relationship in writing to the board.
(b) The board or the board's designee shall, in the ethics policy adopted under Section 43.0031, define the kinds of relationships that may create a possible conflict of interest.
(c) A person who files a statement under Subsection (a) disclosing a possible conflict of interest may not give advice or make decisions about a matter affected by the possible conflict of interest unless the board, after consultation with the general counsel of the agency, expressly waives this prohibition. The board may delegate the authority to waive the prohibition established by this subsection.
Added by Acts 1999, 76th Leg., ch. 1488, § 1, eff. Sept. 1, 1999.
§ 43.0033. REPORTS OF EXPENDITURES. A consultant, advisor, broker, or other person providing services to the State Board of Education relating to the management and investment of the permanent school fund shall file with the board regularly, as determined by the board, a report that describes in detail any expenditure of more than $50 made by the person on behalf of:
(1) a member of the board; (2) the commissioner; or (3) an employee of the agency or of a nonprofit corporation created under Section 43.006.
Added by Acts 1999, 76th Leg., ch. 1488, § 1, eff. Sept. 1, 1999.
§ 43.0034. FORMS; PUBLIC INFORMATION. (a) The board shall prescribe forms for:
(1) statements of possible conflicts of interest and waivers of possible conflicts of interest under Section 43.0032; and
(2) reports of expenditures under Section 43.0033. (b) A statement, waiver, or report described by Subsection (a) is public information.
(c) The board shall designate an employee of the agency to act as custodian of statements, waivers, and reports described by Subsection (a) for purposes of public disclosure.
Added by Acts 1999, 76th Leg., ch. 1488, § 1, eff. Sept. 1, 1999.
§ 43.004. WRITTEN INVESTMENT OBJECTIVES; PERFORMANCE EVALUATION. (a) The State Board of Education shall develop written investment objectives concerning the investment of the permanent school fund. The objectives may address desired rates of return, risks involved, investment time frames, and any other relevant considerations.
(b) The board shall employ a well-recognized performance measurement service to evaluate and analyze the investment results of the permanent school fund. The service shall compare investment results with the written investment objectives developed by the board, and shall also compare the investment of the permanent school fund with the investment of other public and private funds.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 43.005. EXTERNAL INVESTMENT MANAGERS. (a) The State Board of Education may contract with private professional investment managers to assist the board in making investments of the permanent school fund. A contract under this subsection must be approved by the board or otherwise entered into in accordance with board rules relating to contracting authority.
(b) The State Board of Education by rule may delegate a power or duty relating to the investment of the permanent school fund to a committee, officer, employee, or other agent of the board.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 43.006. INVESTMENT MANAGEMENT. (a) The State Board of Education may delegate investment authority and contract for the investment of the permanent school fund to the same extent as the governing board of an institution of higher education with respect to an institutional fund under Chapter 163, Property Code.
(b) The board may enter into a contract with a nonprofit corporation for the corporation to invest funds under the control and management of the board, including the permanent school fund, as designated by the board. The corporation may not engage in any business other than investing funds designated by the board under the contract.
(c) The board must approve the: (1) articles of incorporation and bylaws of the corporation and any amendment to the articles of incorporation or bylaws;
(2) investment policies of the corporation, including changes to those policies;
(3) audit and ethics committee of the corporation; and (4) code of ethics of the corporation. (d) The board of directors of the corporation must be members of the State Board of Education.
(e) If an investment contract entered into under Subsection (b) includes the permanent school fund within the scope of funds under the control and management of the State Board of Education to be invested by the corporation, the board shall provide for an annual financial audit of the permanent school fund. Subject to the legislative audit committee's approval of including the audit in the audit plan under Section 321.013(c), Government Code, the audit shall be performed by the state auditor.
(f) The corporation shall file quarterly reports with the State Board of Education concerning matters required by the board.
(g) The corporation is subject to the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil Statutes).
(h) The corporation may not enter into an agreement or transaction with a: (1) director, officer, or employee of the corporation acting in other than an official capacity on behalf of the corporation;
(2) business entity in which a director, officer, or employee of the corporation has an interest;
(3) former director, officer, or employee of the corporation on or before the second anniversary of the date the person ceased to be a director, officer, or employee of the corporation; or
(4) business entity in which a former director, officer, or employee of the corporation has an interest on or before the second anniversary of the date the person ceased to be a director, officer, or employee of the corporation.
(i) An agreement or transaction entered into in violation of Subsection (h) is void.
(j) For purposes of this section, a person has an interest in a business entity if:
(1) the person owns five percent or more of the voting stock or shares of the business entity;
(2) the person owns five percent or more of the fair market value of the business entity; or
(3) money received by the person from the business entity exceeds five percent of the person's gross income for the preceding calendar year.
(k) In this section: (1) "Governing board" and "institutional fund" have the meanings assigned by Chapter 163, Property Code.
(2) "Institution of higher education" has the meaning assigned by Section 61.003.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995. Amended by Acts 2003, 78th Leg., ch. 785, § 58, eff. Sept. 1, 2003.
§ 43.007. PURCHASE AND SALE OR EXCHANGE OF SECURITIES. (a) The State Board of Education may authorize the purchase of all of the types of securities in which it is authorized by law to invest the permanent school fund in either registered or negotiable form. The board may authorize the reissue of those securities held at any time for the account of the permanent school fund in either registered or negotiable form. The State Board of Education may authorize the sale of any of the securities held for the account of the permanent school fund and reinvest the proceeds of sale for the fund and may authorize the exchange of any of the securities held for the account of the permanent school fund.
(b) In making purchases, sales, exchanges, and reissues, the State Board of Education shall exercise the judgment and care under the circumstances then prevailing that persons of ordinary prudence, discretion, and intelligence exercise in the management of their own affairs not in regard to speculation but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital.
(c) When any securities are sold, reissued, or exchanged as provided by Subsection (a), the custodian of the securities shall deliver the securities sold, reissued, or exchanged in accordance with the directions of the State Board of Education.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 43.009. PREPAYMENT OF CERTAIN BONDS HELD BY THE PERMANENT SCHOOL FUND. (a) The State Board of Education may authorize the governing body of any political subdivision in this state to pay off and discharge, at any interest paying date whether the bonds are matured or not, all or any part of any outstanding bond indebtedness owned by the permanent school fund.
(b) The governing body of a political subdivision desiring to pay off and discharge any bonded indebtedness owned by the fund shall apply in writing to the State Board of Education, not later than the 30th day before any interest paying date on the bonds, describing the bonds or part of the bonds it desires to pay off and discharge. The application must be accompanied by an affidavit stating that only tax money collected from a tax levy made for the specific purpose of providing a sinking fund and paying interest on the particular bonds to be redeemed will be spent in redeeming, taking up, or paying off the bonds.
(c) The State Board of Education, on receiving the application and affidavit, shall take action on them in the manner it considers best and shall notify the applicant whether the application is refused or granted in whole or in part.
(d) A person who has a duty under this section may not give or receive any commission, premium, or compensation for the performance of that duty.
(e) Only tax money collected from tax levies made for the specific purpose of providing a sinking fund and paying interest on the particular bonds to be redeemed may be spent in redeeming, taking up, or paying off of bonds as provided by this section, unless the bonds are being redeemed for the purpose of being refunded.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 43.010. DEFAULT OF SCHOOL DISTRICT SECURITIES HELD BY THE PERMANENT SCHOOL FUND. (a) If interest or principal has not been paid for two years or more on any bonds issued by any school district and held by the permanent school fund, the State Board of Education may:
(1) compel the district to levy a tax sufficient to meet the interest and principal payments then or later due; or
(2) if the district furnishes to the State Board of Education satisfactory proof that the district's taxing ability is insufficient, require the district to:
(A) exhaust all legal remedies in collecting delinquent taxes; and (B) levy a tax at the maximum lawful rate on the bona fide valuation of taxable property located in the district.
(b) Revenue collected by either method specified by Subsection (a) shall be distributed proportionately to all owners of the defaulted securities in compliance with the following:
(1) the proportionate share for each owner is based on the interest and principal requirements of the original security before authorized refunding; and
(2) prior acceptance of refunding securities does not reduce an owner's proportionate share.
(c) As long as any school district is delinquent in its payments of principal or interest on any of its bonds owned by the permanent school fund, the State Board of Education may specify the method of crediting payments to the state made by the district as to principal and interest.
(d) The comptroller may not issue any warrant from the foundation school fund to or for the benefit of any district that has been for as long as two years in default in the payment of principal or interest on any security owned by the permanent school fund until the State Board of Education certifies that the district has satisfactorily complied with the appropriate provisions of this section, in which event the comptroller shall resume making payments to or for the benefit of the district, including the making of pretermitted payments.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 43.011. AUTHORIZED REFUNDING OF DEFAULTED SCHOOL BONDS. (a) In compliance with this section, the State Board of Education may revise, readjust, modify, refinance, or refund defaulted bonds issued by any school district in this state and owned by either the permanent school fund or the available school fund.
(b) Application must be made to the State Board of Education by the district that issued the bonds and must show that:
(1) delinquent interest totals at least 50 percent of the principal amount of the bonds; and
(2) taxable valuation has decreased to such an extent that a full application of the proceeds of the voted authorized tax authorized to be levied on the $100 taxable property valuation will not meet interest and principal annually maturing on the bonds.
(c) The State Board of Education may effect a refunding of the debt due and to become due only if the board finds that:
(1) the district is unable to pay the sums already matured and the sums contracted to be paid as they mature by paying annually to the State Board of Education the full proceeds of a 50-cent tax levy on the $100 of all taxable valuation of property in the district;
(2) the taxable valuation of property in the district has decreased at least 75 percent since the bonds were issued and that the decrease was not caused by the district or any of its officials;
(3) the district for a period of at least five years before applying to the State Board of Education for refunding has levied a tax of 50 cents on the $100 of taxable valuation of property in the district, and that despite such levies, the aggregate amount due the State Board of Education exceeds the aggregate amount due at the beginning of the period;
(4) the district has not authorized and sold additional bonds during the five-year period immediately preceding the application; and
(5) the district has in good faith endeavored to pay its debt in accordance with the contract evidenced by the bonds held for the account of the permanent school fund or the available school fund.
(d) If the conditions specified by Subsection (c) are found to exist, the district is, for purposes of this section, insolvent, and the State Board of Education may exchange the bonds, interest coupons, and other evidences of indebtedness for new refunding bonds of the district issued in compliance with the following:
(1) the principal amount of the refunding bonds may not be less than the total amount of the bonds, matured interest coupons, accrued interest, and interest on delinquent interest then actually due to the permanent school fund or the available school fund; and
(2) the rate of interest to be borne by the refunding bonds may be lower than that borne by the bonds to be refunded if in consideration of the interest reduction the district agrees to levy a tax each year for a period of 40 years at a rate sufficient to produce annually a sum equal to 90 percent of the amount that can be calculated by the levy of a tax at the rate of 50 cents on the $100 of taxable valuation of property as determined by the latest approved tax roll of the district, and in determining the rate of interest to be borne by the refunding bonds, the State Board of Education shall be governed by the following:
(A) the State Board of Education may require the rate to be a percent per annum as in its judgment will represent the maximum rate that can be paid by the district and still permit an orderly and certain retirement of the refunding bonds within 40 years from their date;
(B) the interest rate of refunding bonds to be received in exchange for bonds owned by the permanent school fund may not be less than the minimum rate at which bonds may then be purchased as investments for the permanent school fund; and
(C) the rate of interest of refunding bonds to be received in exchange for bonds owned by the available school fund may be set by the State Board of Education at any rate the board considers feasible, and the refunding bonds may, at the discretion of the State Board of Education, be made non-interest bearing to a date fixed by the board.
(e) The State Board of Education may not make a revision, readjustment, modification, refinancing, or refunding that will release or extinguish any debt or obligation then due and payable to the permanent school fund or to the available school fund.
(f) Except as otherwise provided or permitted by this section, the refunding of the bonds of school districts authorized by this section must be in compliance with the general provisions with regard to the refunding of school district bonds.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 43.012. REFUNDING OTHER DEFAULTED OBLIGATIONS. (a) Defaulted obligations, other than bonds of school districts as provided by Section 43.011, due the available school fund may be refinanced or refunded with the approval of the State Board of Education in compliance with this section.
(b) In this section, "defaulted obligations" includes delinquent interest whether represented by coupons or not, interest on delinquent interest, and any other form of obligation due the available school fund.
(c) The obligor must apply to the State Board of Education and show: (1) that the obligations due the available school fund have been in default in whole or in part for a continuous period of at least 15 years; and
(2) that the obligor is not in default in the payment of the principal of any bonds owned by the permanent school fund.
(d) If the State Board of Education finds that the requirements provided by Subsection (c) have been met, it may approve a refinancing or the issuance of refunding bonds on the conditions:
(1) that the refunding bonds must mature serially in not exceeding 40 years from the date of issuance;
(2) that the principal amount of the refunding bonds may be not less than the total amount of the obligations then in default and due the available school fund; and
(3) that the refunding bonds must bear interest at a rate or rates determined by the State Board of Education to be for the best interest of the available school fund.
(e) The State Board of Education may accept refunding bonds in lieu of either matured or unmatured bonds held for the benefit of the permanent school fund if the rate of interest on the new refunding bonds is at least the same rate as that of the bonds being refunded.
(f) Refunding bonds issued with the approval or pursuant to a refunding agreement with the State Board of Education in compliance with either this section or Section 43.011 shall, on the order of the State Board of Education, be exchanged by the comptroller for the defaulted obligations they have been issued to refund.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995. Amended by Acts 1997, 75th Leg., ch. 1423, § 5.02, eff. Sept. 1, 1997.
§ 43.013. JURISDICTION. The district courts of Travis County have jurisdiction of any suit on bonds or obligations belonging to the permanent school fund, or purchased therewith, concurrent with that of any other court having jurisdiction in the case.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 43.014. DUTIES OF COMPTROLLER. (a) On or before July 1 of each year, the comptroller shall estimate the amount of the available school fund receivable from every source during the following school year and report the estimate to the State Board of Education.
(b) On or before the meeting of each regular session of the legislature, the comptroller shall report to the legislature an estimate of the amount of the available school fund that is to be received for the following two years, and the sources from which that amount accrues, and that is subject to appropriation for the establishment and support of public schools.
(c) On or before the first working day of each month, the comptroller shall certify to the commissioner the total amount of money collected from every source during the preceding month and on hand to the credit of the available school fund.
(d) On receipt of certificates issued to the comptroller by the commissioner, the comptroller shall draw warrants in favor of the treasurer of the available school fund of each school district for the amounts stated in the certificates. All such warrants shall be registered.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995. Amended by Acts 1997, 75th Leg., ch. 1423, § 5.03, eff. Sept. 1, 1997.
§ 43.015. DUTIES OF COMPTROLLER . (a) Not later than the 30th day before the first day of each regular session of the legislature and not later than the 10th day before the first day of any special session at which there can be legislation respecting the public schools, the comptroller shall report to the governor the condition of the permanent school fund and the available school fund, the amount of each fund, and the manner of its disbursement.
(b) The comptroller shall provide the State Board of Education with the reports specified by Subsection (a) and with additional reports concerning those funds requested by the State Board of Education.
(c) The comptroller shall ensure that no portion of either the permanent school fund or the available school fund is used to pay any warrant drawn against any other fund.
(d) The comptroller shall receive and hold in a special deposit and account for all properties belonging to the available school fund. All warrants drawn on that fund by the comptroller pursuant to a certificate of the commissioner must be registered by the comptroller and then transmitted to the commissioner, and when properly endorsed shall be paid by the comptroller in the order of their presentation.
(e) On order of the State Board of Education, the comptroller shall exchange or accept refunding bonds in lieu of:
(1) either matured or unmatured bonds held for the benefit of the permanent school fund, which are being refunded under this chapter;
(2) defaulted obligations held for the benefit of the available school fund if the refunding bonds are issued in compliance with Section 43.012;
(3) defaulted obligations of any school district of this state held for the benefit of the permanent school fund or the available school fund if the refunding bonds are issued in compliance with Section 43.011; or
(4) refunding bonds of any school district of this state for school bonds not matured held by the comptroller for the permanent school fund if the new refunding bonds are issued by the school district in compliance with this code.
(f) The comptroller shall be the custodian of all securities enumerated in Section 43.003(6) and of other securities as designated by the State Board of Education in which the school funds of the state are invested. The comptroller shall keep those securities in the comptroller's custody until paid off, discharged, delivered as required by the State Board of Education, or otherwise disposed of by the proper authorities of the state, and on the proper installment of any interest or dividend, shall see that the proper credit is given, and the coupons on bonds, when paid, shall be separated from the bonds and cancelled by the comptroller.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995. Amended by Acts 1997, 75th Leg., ch. 1423, § 5.04, eff. Sept. 1, 1997.
§ 43.016. USE OF AVAILABLE SCHOOL FUND. All available school funds shall be appropriated in each county for the education of its children.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 43.017. USE OF COMMERCIAL BANKS AS AGENTS FOR COLLECTION OF INCOME FROM PERMANENT SCHOOL FUND INVESTMENTS. (a) The State Board of Education may contract with one or more commercial banks to receive payments of dividends and interest on securities in which the state permanent school funds are invested and transmit that money with identification of its source to the comptroller for the account of the available school fund by the fastest available means.
(b) In choosing each commercial bank with which to contract as authorized by Subsection (a), the State Board of Education shall assure itself of:
(1) the financial stability of the bank; (2) the location of the bank with respect to its proximity to the banks on which checks are drawn in payment of dividends and interest on securities of the permanent school fund;
(3) the experience and reliability of the bank in acting as agent for others in the similar collection and expeditious remittance of money; and
(4) the reasonableness of the bank's charges for the services, both in amount of the charges and in relation to the increased investment earnings of the available school fund that will result from speedier receipt by the comptroller of the money.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995. Amended by Acts 1997, 75th Leg., ch. 1423, § 5.05, eff. Sept. 1, 1997.
§ 43.018. PARTICIPATION IN FULLY SECURED SECURITIES LOAN PROGRAMS. (a) The State Board of Education may contract with a commercial bank to serve both as a custodian of securities in which the state permanent school funds are invested and to lend those securities, under the conditions prescribed by Subsection (b), to securities brokers and dealers on short-term loan.
(b) The State Board of Education may contract with a commercial bank pursuant to this section only if:
(1) the bank is located in a city having a major stock exchange; (2) the bank is experienced in the operation of a fully secured securities loan program;
(3) the bank has adequate capital in the prudent judgment of the State Board of Education to assure the safety of the securities entrusted to it as a custodian;
(4) the bank will require of any securities broker or dealer to which it lends securities owned by the state permanent school fund that the broker or dealer deliver to it cash collateral for the loan of securities, and that the cash collateral will at all times be not less than 100 percent of the market value of the securities lent;
(5) the bank executes an indemnification agreement, satisfactory in form and content to the State Board of Education, fully indemnifying the permanent and available school funds against loss resulting from the bank's service as custodian of securities of the permanent school fund and its operation of a securities loan program using securities of the permanent school fund;
(6) the bank will speedily collect and remit on the day of collection by the fastest available means to the comptroller any dividends and interest collectible by it on securities held by it as custodian, together with identification as to the source of the dividends or interest; and
(7) the bank is the bank agreeing to pay to the available school fund the largest sum or highest percentage of the income derived by the bank from use of the securities of the permanent school fund in the operation of a securities loan program.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995. Amended by Acts 1997, 75th Leg., ch. 1423, § 5.06, eff. Sept. 1, 1997.
§ 43.019. ACCOUNTING TREATMENT OF CERTAIN EXCHANGES. The State Board of Education may account for the exchange of permanent school fund securities in a closely related sale and purchase transaction in a manner in which the gain or loss on the sale is deferred as an adjustment to the book value of the security purchased, if:
(1) the security sold and the security purchased have a fixed maturity value;
(2) the board is authorized by law to invest the permanent school fund in the security purchased;
(3) the sale is made in clear contemplation of reinvesting substantially all of the proceeds;
(4) substantially all of the proceeds are reinvested; (5) the transaction is completed within a reasonable time after the sale, not to exceed 30 business days; and
(6) the transaction results in an improvement in effective income yield, taking into consideration the deferral of any gain or loss on the sale.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 43.020. TREATMENT OF ACCRUED INCOME. All interest and dividends accruing from the investments of the permanent school fund shall be deposited to the credit of the available school fund in accordance with the accrual basis of accounting. Funds recognized under this section are considered part of the available school fund and may be appropriated as provided by Section 5, Article VII, Texas Constitution.
Added by Acts 2003, 78th Leg., ch. 201, § 37, eff. June 10, 2003. § 44.001. FISCAL GUIDELINES. (a) The commissioner shall establish advisory guidelines relating to the fiscal management of a school district.
(b) The commissioner shall report annually to the State Board of Education the status of school district fiscal management as reflected by the advisory guidelines and by statutory requirements.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 44.0011. FISCAL YEAR. The fiscal year of a school district begins on July 1 or September 1 of each year, as determined by the board of trustees of the district. The commissioner may adopt rules concerning the submission of information by a district under Chapter 39 or 42 based on the fiscal year of the district.
Added by Acts 1999, 76th Leg., ch. 643, § 1, eff. Sept. 1, 2001.
§ 44.002. PREPARATION OF BUDGET. (a) On or before a date set by the State Board of Education, the superintendent shall prepare, or cause to be prepared, a proposed budget covering all estimated revenue and proposed expenditures of the district for the following fiscal year.
(b) The budget must be prepared according to generally accepted accounting principles, rules adopted by the State Board of Education, and adopted policies of the board of trustees.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 44.003. RECORDS AND REPORTS. The superintendent shall ensure that records are kept and that copies of all budgets, all forms, and all other reports are filed on behalf of the school district at the proper times and in the proper offices as required by this code.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 44.004. NOTICE OF BUDGET AND TAX RATE MEETING; BUDGET ADOPTION. (a) When the budget has been prepared under section 44.002, the president shall call a meeting of the board of trustees for the purpose of adopting a budget for the succeeding fiscal year
(b) The president shall provide for the publication of notice of the budget and proposed tax rate meeting in a daily, weekly, or biweekly newspaper published in the district. If no daily, weekly, or biweekly newspaper is published in the district, the president shall provide for the publication of notice in at least one newspaper of general circulation in the county in which the district's central administrative office is located. Notice under this subsection shall be published not earlier than the 30th day or later than the 10th day before the date of the hearing.
(c) The notice of public meeting to discuss and adopt the budget and the proposed tax rate may not be smaller than one-quarter page of a standard-size or a tabloid-size newspaper, and the headline on the notice must be in 18-point or larger type. Subject to Subsection (d), the notice must:
(1) contain a statement in the following form:
""NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
"The (name of school district) will hold a public meeting at (time, date, year) in (name of room, building, physical location, city, state). The purpose of this meeting is to discuss the school district's budget that will determine the tax rate that will be adopted. Public participation in the discussion is invited." The statement of the purpose of the meeting must be in bold type. In reduced type, the notice must state: "The tax rate that is ultimately adopted at this meeting or at a separate meeting at a later date may not exceed the proposed rate shown below unless the district publishes a revised notice containing the same information and comparisons set out below and holds another public meeting to discuss the revised notice. ";
(2) contain a section entitled "Comparison of Proposed Budget with Last Year's Budget," which must show the difference, expressed as a percent increase or decrease, as applicable, in the amounts budgeted for the preceding fiscal year and the amount budgeted for the fiscal year that begins in the current tax year for each of the following:
(A) maintenance and operations; (B) debt service; and (C) total expenditures; (3) contain a section entitled "Total Appraised Value and Total Taxable Value," which must show the total appraised value and the total taxable value of all property and the total appraised value and the total taxable value of new property taxable by the district in the preceding tax year and the current tax year as calculated under Section 26.04, Tax Code;
(4) contain a statement of the total amount of the outstanding and unpaid bonded indebtedness of the school district;
(5) contain a section entitled "Comparison of Proposed Rates with Last Year's Rates," which must:
(A) show in rows the tax rates described by Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of property, for columns entitled "Maintenance & Operations," "Interest & Sinking Fund," and "Total," which is the sum of "Maintenance & Operations" and "Interest & Sinking Fund":
(i) the school district's "Last Year's Rate"; (ii) the "Rate to Maintain Same Level of Maintenance & Operations Revenue & Pay Debt Service," which:
(a) in the case of "Maintenance &
Operations," is the tax rate that, when applied to the current taxable value for the district, as certified by the chief appraiser under Section 26.01, Tax Code, and as adjusted to reflect changes made by the chief appraiser as of the time the notice is prepared, would impose taxes in an amount that, when added to state funds to be distributed to the district under Chapter 42, would provide the same amount of maintenance and operations taxes and state funds distributed under Chapter 42 per student in average daily attendance for the applicable school year that was available to the district in the preceding school year; and
(b) in the case of "Interest & Sinking Fund," is the tax rate that, when applied to the current taxable value for the district, as certified by the chief appraiser under Section 26.01, Tax Code, and as adjusted to reflect changes made by the chief appraiser as of the time the notice is prepared, and when multiplied by the district's anticipated collection rate, would impose taxes in an amount that, when added to state funds to be distributed to the district under Chapter 46 and any excess taxes collected to service the district's debt during the preceding tax year but not used for that purpose during that year, would provide the amount required to service the district's debt; and
(iii) the "Proposed Rate"; (B) contain fourth and fifth columns aligned with the columns required by Paragraph (A) that show, for each row required by Paragraph (A):
(i) the "Local Revenue per Student," which is computed by multiplying the district's total taxable value of property, as certified by the chief appraiser for the applicable school year under Section 26.01, Tax Code, and as adjusted to reflect changes made by the chief appraiser as of the time the notice is prepared, by the total tax rate, and dividing the product by the number of students in average daily attendance in the district for the applicable school year; and
(ii) the "State Revenue per Student," which is computed by determining the amount of state aid received or to be received by the district under Chapters 42, 43, and 46 and dividing that amount by the number of students in average daily attendance in the district for the applicable school year; and
(C) contain an asterisk after each calculation for "Interest & Sinking Fund" and a footnote to the section that, in reduced type, states "The Interest & Sinking Fund tax revenue is used to pay for bonded indebtedness on construction, equipment, or both. The bonds, and the tax rate necessary to pay those bonds, were approved by the voters of this district.";
(6) contain a section entitled "Comparison of Proposed Levy with Last Year's Levy on Average Residence," which must:
(A) show in rows the information described by Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns entitled "Last Year" and "This Year":
(i) "Average Market Value of Residences," determined using the same group of residences for each year;
(ii) "Average Taxable Value of Residences," determined after taking into account the limitation on the appraised value of residences under Section 23.23, Tax Code, and after subtracting all homestead exemptions applicable in each year, other than exemptions available only to disabled persons or persons 65 years of age or older or their surviving spouses, and using the same group of residences for each year;
(iii) "Last Year's Rate Versus Proposed Rate per $100 Value"; and (iv) "Taxes Due on Average Residence," determined using the same group of residences for each year; and
(B) contain the following information: "Increase (Decrease) in Taxes" expressed in dollars and cents, which is computed by subtracting the "Taxes Due on Average Residence" for the preceding tax year from the "Taxes Due on Average Residence" for the current tax year;
(7) contain the following statement in bold print: "Under state law, the dollar amount of school taxes imposed on the residence of a person 65 years of age or older or of the surviving spouse of such a person, if the surviving spouse was 55 years of age or older when the person died, may not be increased above the amount paid in the first year after the person turned 65, regardless of changes in tax rate or property value.";
(8) contain the following statement in bold print: "Notice of Rollback Rate: The highest tax rate the district can adopt before requiring voter approval at an election is (the school district rollback rate determined under Section 26.08, Tax Code). This election will be automatically held if the district adopts a rate in excess of the rollback rate of (the school district rollback rate)."; and
(9) contain a section entitled "Fund Balances," which must include the estimated amount of interest and sinking fund balances and the estimated amount of maintenance and operation or general fund balances remaining at the end of the current fiscal year that are not encumbered with or by corresponding debt obligation, less estimated funds necessary for the operation of the district before the receipt of the first payment under Chapter 42 in the succeeding school year.
(c-1) to (c-5) Expired. (d) The comptroller shall prescribe the language and format to be used in the part of the notice required by Subsection (c). A notice under Subsection (c) is not valid if it does not substantially conform to the language and format prescribed by the comptroller under this subsection.
(e) A person who owns taxable property in a school district is entitled to an injunction restraining the collection of taxes by the district if the district has not complied with the requirements of Subsections (b), (c), and (d), and, if applicable, Subsection (i), and the failure to comply was not in good faith. An action to enjoin the collection of taxes must be filed before the date the school district delivers substantially all of its tax bills.
(f) The board of trustees, at the meeting called for that purpose, shall adopt a budget to cover all expenditures for the school district for the next succeeding fiscal year. Any taxpayer of the district may be present and participate in the meeting.
(g) The budget must be adopted before the adoption of the tax rate for the tax year in which the fiscal year covered by the budget begins.
(h) Notwithstanding any other provision of this section, a school district with a fiscal year beginning July 1 may use the certified estimate of the taxable value of district property required by Section 26.01(d), Tax Code, in preparing the notice required by this section if the district does not receive on or before June 7 the certified appraisal roll for the district required by Section 26.01(a), Tax Code.
(i) A school district that uses a certified estimate, as authorized by Subsection (h), may adopt a budget at the public meeting designated in the notice prepared using the estimate, but the district may not adopt a tax rate before the district receives the certified appraisal roll for the district required by Section 26.01(a), Tax Code. After receipt of the certified appraisal roll, the district must publish a revised notice and hold another public meeting before the district may adopt a tax rate that exceeds:
(1) the rate proposed in the notice prepared using the estimate; or (2) the district's rollback rate determined under Section 26.08, Tax Code, using the certified appraisal roll.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995. Amended by Acts 1999, 76th Leg., ch. 398, § 1, eff. Aug. 30, 1999; Acts 2001, 77th Leg., ch. 898, § 1, eff. Sept. 1, 2001; Acts 2005, 79th Leg., ch. 807, § 2, eff. June 17, 2005.
§ 44.005. FILING OF ADOPTED BUDGET. On or before a date set by the State Board of Education, the budget must be filed with the agency according to the rules established by the State Board of Education.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 44.006. EFFECT OF ADOPTED BUDGET; AMENDMENTS. (a) Public funds of the school district may not be spent in any manner other than as provided for in the budget adopted by the board of trustees, but the board may amend a budget or adopt a supplementary emergency budget to cover necessary unforeseen expenses.
(b) Any amendment or supplementary budget must be prepared and filed according to rules adopted by the State Board of Education.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 44.007. ACCOUNTING SYSTEM; REPORT. (a) A standard school fiscal accounting system must be adopted and installed by the board of trustees of each school district. The accounting system must conform with generally accepted accounting principles.
(b) The accounting system must meet at least the minimum requirements prescribed by the State Board of Education, subject to review and comment by the state auditor.
(c) A record must be kept of all revenues realized and of all expenditures made during the fiscal year for which a budget is adopted. A report of the revenues and expenditures for the preceding fiscal year shall be filed with the agency on or before the date set by the State Board of Education.
(d) The State Board of Education shall require each district, as part of the report required by this section, to include management, cost accounting, and financial information in a format prescribed by the board and in a manner sufficient to enable the board to monitor the funding process and determine educational system costs by district, campus, and program.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 44.0071. COMPUTATION OF INSTRUCTIONAL EXPENDITURES RATIO AND INSTRUCTIONAL EMPLOYEES RATIO. (a) Each fiscal year, a school district shall compute and report to the commissioner:
(1) the percentage of the district's total expenditures for the preceding fiscal year that were used to fund direct instructional activities; and
(2) the percentage of the district's full-time equivalent employees during the preceding fiscal year whose job function was to directly provide classroom instruction to students, determined by dividing the number of hours spent by employees in providing direct classroom instruction by the total number of hours worked by all district employees.
(b) At least annually a school district shall provide educators employed by the district with a list of district employees determined by the district for purposes of this section to be engaged in directly providing classroom instruction to students. The list must include the percentage of time spent by each employee in directly providing classroom instruction to students.
(c) For purposes of this section, the computation of a district's expenditures used to fund direct instructional activities shall include the salary, including any associated employment taxes, and value of any benefits provided to any district employee who directly provided classroom instruction to students, but only in proportion to the percentage of time spent by the employee in directly providing classroom instruction to students.
(d) The commissioner shall adopt rules as necessary to implement this section. To the extent possible, the rules must provide for development of the information required by this section using information otherwise compiled by school districts for reporting through the Public Education Information Management System (PEIMS).
Added by Acts 2003, 78th Leg., ch. 1269, § 1, eff. Sept. 1, 2003.
§ 44.008. ANNUAL AUDIT; REPORT. (a) The board of school trustees of each school district shall have its school district fiscal accounts audited annually at district expense by a certified or public accountant holding a permit from the Texas State Board of Public Accountancy. The audit must be completed following the close of each fiscal year.
(b) The independent audit must meet at least the minimum requirements and be in the format prescribed by the State Board of Education, subject to review and comment by the state auditor. The audit shall include an audit of the accuracy of the fiscal information provided by the district through the Public Education Information Management System (PEIMS).
(c) Each treasurer receiving or having control of any school fund of any school district shall keep a full and separate itemized account with each of the different classes of its school funds coming into the treasurer's hands. The treasurer's records of the district's itemized accounts and records shall be made available to audit.
(d) A copy of the annual audit report, approved by the board of trustees, shall be filed by the district with the agency not later than the 150th day after the end of the fiscal year for which the audit was made. If the board of trustees declines or refuses to approve its auditor's report, it shall nevertheless file with the agency a copy of the audit report with its statement detailing reasons for failure to approve the report.
(e) The audit reports shall be reviewed by the agency, and the commissioner shall notify the board of trustees of objections, violations of sound accounting practices or law and regulation requirements, or of recommendations concerning the audit reports that the commissioner wants to make. If the audit report reflects that penal laws have been violated, the commissioner shall notify the appropriate county or district attorney and the attorney general. The commissioner shall have access to all vouchers, receipts, district fiscal and financial records, and other school records as the commissioner considers necessary and appropriate for the review, analysis, and passing on audit reports.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995. Amended by Acts 2001, 77th Leg., ch. 914, § 2, eff. Sept. 1, 2001.
§ 44.009. FINANCIAL REPORTS TO COMMISSIONER OR AGENCY; FORMS. (a) All financial reports made by or for school districts or by their officers, agents, or employees, to the commissioner or to the agency, shall be made on forms prescribed by the agency, subject to review and comment by the state auditor.
(b) The agency shall combine as many forms as possible to avoid multiplicity of reports. The forms shall provide for entry of all information required by law or by the commissioner and information considered necessary by the state auditor.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 44.010. REVIEW BY AGENCY. The budgets, fiscal reports, and audit reports filed with the agency shall be reviewed and analyzed by the staff of the agency to determine whether all legal requirements have been met and to collect fiscal data needed in preparing school fiscal reports for the governor and the legislature.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
SUBCHAPTER B. PURCHASES; CONTRACTS
§ 44.031. PURCHASING CONTRACTS. (a) Except as provided by this subchapter, all school district contracts, except contracts for the purchase of produce or vehicle fuel, valued at $25,000 or more in the aggregate for each 12-month period shall be made by the method, of the following methods, that provides the best value for the district:
(1) competitive bidding; (2) competitive sealed proposals; (3) a request for proposals, for services other than construction services;
(4) a catalogue purchase as provided by Subchapter B, Chapter 2157, Government Code;
(5) an interlocal contract; (6) a design/build contract; (7) a contract to construct, rehabilitate, alter, or repair facilities that involves using a construction manager;
(8) a job order contract for the minor construction, repair, rehabilitation, or alteration of a facility;
(9) the reverse auction procedure as defined by Section 2155.062(d), Government Code; or
(10) the formation of a political subdivision corporation under Section 304.001, Local Government Code.
(b) Except as provided by this subchapter, in determining to whom to award a contract, the district may consider:
(1) the purchase price; (2) the reputation of the vendor and of the vendor's goods or services; (3) the quality of the vendor's goods or services; (4) the extent to which the goods or services meet the district's needs; (5) the vendor's past relationship with the district; (6) the impact on the ability of the district to comply with laws and rules relating to historically underutilized businesses;
(7) the total long-term cost to the district to acquire the vendor's goods or services; and
(8) any other relevant factor specifically listed in the request for bids or proposals.
(b-1) In awarding a contract by competitive sealed bid under this section, a school district that has its central administrative office located in a municipality with a population of less than 250,000 may consider a bidder's principal place of business in the manner provided by Section 271.9051, Local Government Code. This subsection does not apply to the purchase of telecommunications services or information services, as those terms are defined by 47 U.S.C. Section 153.
(c) The state auditor may audit purchases of goods or services by the district.
(d) The board of trustees of the district may adopt rules and procedures for the acquisition of goods or services.
(e) To the extent of any conflict, this subchapter prevails over any other law relating to the purchasing of goods and services except a law relating to contracting with historically underutilized businesses.
(f) This section does not apply to a contract for professional services rendered, including services of an architect, attorney, or fiscal agent. A school district may, at its option, contract for professional services rendered by a financial consultant or a technology consultant in the manner provided by Section 2254.003, Government Code, in lieu of the methods provided by this section.
(g) Notice of the time by when and place where the bids or proposals, or the responses to a request for qualifications, will be received and opened shall be published in the county in which the district's central administrative office is located, once a week for at least two weeks before the deadline for receiving bids, proposals, or responses to a request for qualifications. If there is not a newspaper in that county, the advertising shall be published in a newspaper in the county nearest the county seat of the county in which the district's central administrative office is located. In a two-step procurement process, the time and place where the second-step bids, proposals, or responses will be received are not required to be published separately.
Text of subsec. (h) as amended by Acts 1999, 76th Leg., ch. 922, § 1
(h) If school equipment, a school facility, or a portion of a school facility is destroyed, severely damaged, or experiences a major unforeseen operational or structural failure, and the board of trustees determines that the delay posed by the contract methods required by this section would prevent or substantially impair the conduct of classes or other essential school activities, then contracts for the replacement or repair of the equipment, school facility, or portion of the school facility may be made by a method other than the methods required by this section.
Text of subsec. (h) as amended by Acts 1999, 76th Leg., ch. 1225, § 1
(h) If school equipment or a part of a school facility or personal property is destroyed or severely damaged or, as a result of an unforeseen catastrophe or emergency, undergoes major operational or structural failure, and the board of trustees determines that the delay posed by the methods provided for in this section would prevent or substantially impair the conduct of classes or other essential school activities, then contracts for the replacement or repair of the equipment or the part of the school facility may be made by methods other than those required by this section.
(i) A school district may acquire computers and computer-related equipment, including computer software, through the General Services Commission under contracts entered into in accordance with Chapter 2157, Government Code. Before issuing an invitation for bids, the commission shall consult with the agency concerning the computer and computer-related equipment needs of school districts. To the extent possible the resulting contract shall provide for such needs.
(j) Without complying with Subsection (a), a school district may purchase an item that is available from only one source, including:
(1) an item for which competition is precluded because of the existence of a patent, copyright, secret process, or monopoly;
(2) a film, manuscript, or book; (3) a utility service, including electricity, gas, or water; and (4) a captive replacement part or component for equipment. (k) The exceptions provided by Subsection (j) do not apply to mainframe data-processing equipment and peripheral attachments with a single-item purchase price in excess of $15,000.
(l) Each contract proposed to be made by a school district for the purchase or lease of one or more school buses, including a lease with an option to purchase, must be submitted to competitive bidding when the contract is valued at $20,000 or more.
(m) If a purchase is made at the campus level in a school district with an average daily attendance of 190,000 or more as determined under Section 42.005 that has formally adopted a site-based decision-making plan under Subchapter F, Chapter 11, that delegates purchasing decisions to the campus level, this section applies only to the campus and does not require the district to aggregate and jointly award purchasing contracts. A district that adopts site-based purchasing under this subsection shall adopt a policy to ensure that campus purchases achieve the best value to the district and are not intended or used to avoid the requirement that a district aggregate purchases under Subsection (a).
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995. Amended by Acts 1997, 75th Leg., ch. 1179, § 1, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 881, § 1, eff. June 18, 1999; Acts 1999, 76th Leg., ch. 922, § 1, eff. June 18, 1999; Acts 1999, 76th Leg., ch. 1225, § 1, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 436, § 7, eff. May 28, 2001; Acts 2001, 77th Leg., ch. 1409, § 9, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 201, § 38, eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch. 680, § 1, eff. June 20, 2003; Acts 2005, 79th Leg., ch. 1205, § 2, eff. Sept. 1, 2005.
§ 44.0311. APPLICABILITY TO JUNIOR COLLEGE DISTRICTS. (a) This subchapter applies to junior college districts.
(b) For purposes of this subchapter, "board of trustees" includes the governing board of a junior college district.
Added by Acts 1999, 76th Leg., ch. 1225, § 2, eff. Sept. 1, 1999.
§ 44.0312. DELEGATION. (a) The board of trustees of the district may, as appropriate, delegate its authority under this subchapter regarding an action authorized or required by this subchapter to be taken by a school district to a designated person, representative, or committee. In procuring construction services, the district shall provide notice of the delegation and the limits of the delegation in the request for bids, proposals, or qualifications or in an addendum to the request. If the district fails to provide that notice, a ranking, selection, or evaluation of bids, proposals, or qualifications for construction services other than by the board of trustees in an open public meeting is advisory only.
(b) The board may not delegate the authority to act regarding an action authorized or required by this subchapter to be taken by the board of trustees of a school district.
Added by Acts 1999, 76th Leg., ch. 1225, § 2, eff. Sept. 1, 1999.
§ 44.0315. DEFINITIONS. In this subchapter: (1) "Architect" means an individual registered as an architect under Chapter 1051, Occupations Code.
(2) "Contractor" in the context of a contract for the construction, rehabilitation, alteration, or repair of a facility means a sole proprietorship, partnership, corporation, or other legal entity that assumes the risk for constructing, rehabilitating, altering, or repairing all or part of the facility at the contracted price.
(3) "Engineer" means an individual licensed as an engineer under Chapter 1001, Occupations Code.
(4) "Facility" means real property, including buildings and associated structures and improved or unimproved land. The term does not include:
(A) highways, roads, streets, bridges, utilities, water supply projects, water plants, wastewater plants, water and wastewater distribution or conveyance facilities, wharves, docks, airport runways and taxiways, drainage projects, or related types of projects associated with civil engineering construction; or
(B) buildings or structures that are incidental to projects that are primarily civil engineering construction projects.
(5) "Fee" in the context of a contract for the construction, rehabilitation, alteration, or repair of a facility means the payment a construction manager receives for its overhead and profit in performing its services.
(6) "General conditions" in the context of a contract for the construction, rehabilitation, alteration, or repair of a facility means on-site management, administrative personnel, insurance, bonds, equipment, utilities, and incidental work, including minor field labor and materials.
Added by Acts 1997, 75th Leg., ch. 1179, § 2, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 1409, § 10, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 1276, § 14A.756, eff. Sept. 1, 2003.
§ 44.032. ENFORCEMENT OF PURCHASE PROCEDURES: CRIMINAL PENALTIES; REMOVAL; INELIGIBILITY. (a) In this section:
(1) "Component purchases" means purchases of the component parts of an item that in normal purchasing practices would be purchased in one purchase.
(2) "Separate purchases" means purchases, made separately, of items that in normal purchasing practices would be purchased in one purchase.
(3) "Sequential purchases" means purchases, made over a period, of items that in normal purchasing practices would be purchased in one purchase.
(b) An officer, employee, or agent of a school district commits an offense if the person with criminal negligence makes or authorizes separate, sequential, or component purchases to avoid the requirements of Section 44.031(a) or (b). An offense under this subsection is a Class B misdemeanor and is an offense involving moral turpitude.
(c) An officer, employee, or agent of a school district commits an offense if the person with criminal negligence violates Section 44.031(a) or (b) other than by conduct described by Subsection (b). An offense under this subsection is a Class B misdemeanor and is an offense involving moral turpitude.
(d) An officer or employee of a school district commits an offense if the officer or employee knowingly violates Section 44.031, other than by conduct described by Subsection (b) or (c). An offense under this subsection is a Class C misdemeanor.
(e) The final conviction of a person other than a trustee of a school district for an offense under Subsection (b) or (c) results in the immediate removal from office or employment of that person. A trustee who is convicted of an offense under this section is considered to have committed official misconduct for purposes of Chapter 87, Local Government Code, and is subject to removal as provided by that chapter and Section 24, Article V, Texas Constitution. For four years after the date of the final conviction, the removed person is ineligible to be a candidate for or to be appointed or elected to a public office in this state, is ineligible to be employed by or act as an agent for the state or a political subdivision of the state, and is ineligible to receive any compensation through a contract with the state or a political subdivision of the state. This subsection does not prohibit the payment of retirement benefits to the removed person or the payment of workers' compensation benefits to the removed person for an injury that occurred before the commission of the offense for which the person was removed. This subsection does not make a person ineligible for an office for which the federal or state constitution prescribes exclusive eligibility requirements.
(f) A court may enjoin performance of a contract made in violation of this subchapter. A county attorney, a district attorney, a criminal district attorney, a citizen of the county in which the school district is located, or any interested party may bring an action for an injunction. A party who prevails in an action brought under this subsection is entitled to reasonable attorney's fees as approved by the court.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995. Amended by Acts 1999, 76th Leg., ch. 1225, § 3, eff. Sept. 1, 1999.
§ 44.033. PURCHASES OF PERSONAL PROPERTY VALUED BETWEEN $10,000 AND $25,000. (a) A school district shall purchase personal property as provided by this section if the value of the items is at least $10,000 but less than $25,000, in the aggregate, for a 12-month period. In the alternative, the school district may purchase those items in accordance with Sections 44.031 (a) and (b).
(b) For each 12-month period, the district shall publish a notice in two successive issues of any newspaper of general circulation in the county in which the school is located. If there is no newspaper in the county in which the school is located, the advertising shall be published in a newspaper in the county nearest the county seat of the county in which the school is located, specifying the categories of personal property to be purchased under this section and soliciting the names, addresses, and telephone numbers of vendors that are interested in supplying any of the categories to the district. For each category, the district shall create a vendor list consisting of each vendor that responds to the published notice and any additional vendors the district elects to include.
(c) Before the district makes a purchase from a category of personal property, the district must obtain written or telephone price quotations from at least three vendors from the list for that category. If fewer than three vendors are on the list, the district shall contact each vendor on the list. Whenever possible, telephone quotes should be confirmed in writing by mail or facsimile. The bidding records must be retained with the school's competitive bidding records and are subject to audit. Except as provided by Subsection (f), the purchase shall be made from the lowest responsible bidder.
(d) Purchases of produce and fuel shall be made in accordance with this section.
(e) If a purchase is made at the campus level in a school district with an average daily attendance of 190,000 or more as determined under Section 42.005 that has formally adopted a site-based decision-making plan under Subchapter F, Chapter 11, that delegates purchasing decisions to the campus level, this section applies only to the campus and does not require the district to aggregate and jointly award purchasing contracts. A district that adopts site-based purchasing under this subsection shall adopt a policy to ensure that campus purchases achieve the best value to the district and are not intended or used to avoid the requirement that a district aggregate purchases under Subsection (a).
(f) In awarding a contract by competitive sealed bid under this section, a school district that has its central administrative office located in a municipality with a population of less than 250,000 may consider a bidder's principal place of business in the manner provided by Section 271.9051, Local Government Code. This subsection does not apply to the purchase of telecommunications services or information services, as those terms are defined by 47 U.S.C. Section 153.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995. Amended by Acts 1999, 76th Leg., ch. 881, § 2, eff. June 18, 1999; Acts 2005, 79th Leg., ch. 1205, § 3, eff. Sept. 1, 2005.
§ 44.034. NOTIFICATION OF CRIMINAL HISTORY OF CONTRACTOR. (a) A person or business entity that enters into a contract with a school district must give advance notice to the district if the person or an owner or operator of the business entity has been convicted of a felony. The notice must include a general description of the conduct resulting in the conviction of a felony.
(b) A school district may terminate a contract with a person or business entity if the district determines that the person or business entity failed to give notice as required by Subsection (a) or misrepresented the conduct resulting in the conviction. The district must compensate the person or business entity for services performed before the termination of the contract.
(c) This section does not apply to a publicly held corporation.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 44.035. EVALUATION OF BIDS AND PROPOSALS FOR CONSTRUCTION SERVICES. (a) The board of trustees of a school district that is considering a construction contract using a method specified by Section 44.031(a) must, before advertising, determine which method provides the best value for the district.
(b) The district shall base its selection among offerors on criteria authorized to be used under Section 44.031(b). The district shall publish in the request for bids, proposals, or qualifications the criteria that will be used to evaluate the offerors and the relative weights given to the criteria.
(c) The district shall document the basis of its selection and shall make the evaluations public not later than the seventh day after the date the contract is awarded.
Added by Acts 1997, 75th Leg., ch. 1179, § 2, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 1225, § 4, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 1409, § 11, eff. Sept. 1, 2001.
§ 44.036. DESIGN-BUILD CONTRACTS FOR FACILITIES. (a) In this section: (1) "Design-build contract" means a single contract with a design-build firm for the design and construction of a facility.
(2) "Design-build firm" means a partnership, corporation, or other legal entity or team that includes an engineer or architect and builder qualified to engage in building construction in Texas.
(3) "Design criteria package" means a set of documents that provides sufficient information to permit a design-build firm to prepare a response to a school district's request for qualifications and any additional information requested, including criteria for selection. The design criteria package must specify criteria the district considers necessary to describe the project and may include, as appropriate, the legal description of the site, survey information concerning the site, interior space requirements, special material requirements, material quality standards, conceptual criteria for the project, special equipment requirements, cost or budget estimates, time schedules, quality assurance and quality control requirements, site development requirements, applicable codes and ordinances, provisions for utilities, parking requirements, or any other requirement, as applicable.
(b) A school district may use the design-build method for the construction, rehabilitation, alteration, or repair of a facility. In using that method and in entering into a contract for the services of a design-build firm, the contracting school district and the design-build firm shall follow the procedures provided by Subsections (c)-(j).
(c) The district shall designate an engineer or architect independent of the design-build firm to act as its representative for the duration of the work on the facility. If the district's engineer or architect is not a full-time employee of the district, any engineer or architect designated shall be selected on the basis of demonstrated competence and qualifications in accordance with Section 2254.004, Government Code.
(d) The district shall prepare a request for qualifications that includes general information on the project site, project scope, budget, special systems, selection criteria, and other information that may assist potential design-build firms in submitting proposals for the project. The district shall also prepare the design criteria package that includes more detailed information on the project. If the preparation of the design criteria package requires engineering or architectural services that constitute the practice of engineering within the meaning of Chapter 1001, Occupations Code, or the practice of architecture within the meaning of Chapter 1051, Occupations Code, those services shall be provided in accordance with the applicable law.
(e) The district shall evaluate statements of qualifications and select a design-build firm in two phases:
(1) In phase one, the district shall prepare a request for qualifications and evaluate each offeror's experience, technical competence, and capability to perform, the past performance of the offeror's team and members of the team, and other appropriate factors submitted by the team or firm in response to the request for qualifications, except that cost-related or price-related evaluation factors are not permitted. Each offeror must certify to the district that each engineer or architect that is a member of its team was selected based on demonstrated competence and qualifications, in the manner provided by Section 2254.004, Government Code. The district shall qualify a maximum of five offerors to submit additional information and, if the district chooses, to interview for final selection.
(2) In phase two, the district shall evaluate the information submitted by the offerors on the basis of the selection criteria stated in the request for qualifications and the results of any interview. The district may request additional information regarding demonstrated competence and qualifications, considerations of the safety and long-term durability of the project, the feasibility of implementing the project as proposed, the ability of the offeror to meet schedules, costing methodology, or other factors as appropriate. The district may not require offerors to submit detailed engineering or architectural designs as part of the proposal. The district shall rank each proposal submitted on the basis of the criteria set forth in the request for qualifications. The district shall select the design-build firm that submits the proposal offering the best value for the district on the basis of the published selection criteria and on its ranking evaluations. The district shall first attempt to negotiate with the selected offeror a contract. If the district is unable to negotiate a satisfactory contract with the selected offeror, the district shall, formally and in writing, end negotiations with that offeror and proceed to negotiate with the next offeror in the order of the selection ranking until a contract is reached or negotiations with all ranked offerors end.
(f) Following selection of a design-build firm under Subsection (e), that firm's engineers or architects shall complete the design, submitting all design elements for review and determination of scope compliance to the district or district's engineer or architect before or concurrently with construction.
(g) An engineer shall have responsibility for compliance with the engineering design requirements and all other applicable requirements of Chapter 1001, Occupations Code. An architect shall have responsibility for compliance with the requirements of Chapter 1051, Occupations Code.
(h) The district shall provide or contract for, independently of the design-build firm, the inspection services, the testing of construction materials engineering, and the verification testing services necessary for acceptance of the facility by the district. The district shall select those services for which it contracts in accordance with Section 2254.004, Government Code.
(i) The design-build firm shall supply a signed and sealed set of construction documents for the project to the district at the conclusion of construction.
(j) A payment or performance bond is not required for, and may not provide coverage for, the portion of a design-build contract under this section that includes design services only. If a fixed contract amount or guaranteed maximum price has not been determined at the time a design-build contract is awarded, the penal sums of the performance and payment bonds delivered to the district must each be in an amount equal to the project budget, as specified in the design criteria package. The design-build firm shall deliver the bonds not later than the 10th day after the date the design-build firm executes the contract unless the design-build firm furnishes a bid bond or other financial security acceptable to the district to ensure that the design-build firm will furnish the required performance and payment bonds when a guaranteed maximum price is established.
Added by Acts 1997, 75th Leg., ch. 1179, § 2, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 1225, § 5, 6, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 1409, § 12, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 1276, § 14A.757, eff. Sept. 1, 2003.
§ 44.037. CONTRACTS FOR FACILITIES: CONSTRUCTION MANAGER-AGENT. (a) A school district may use the construction manager-agent method for the construction, rehabilitation, alteration, or repair of a facility. In using that method and in entering into a contract for the services of a construction manager-agent, a district shall follow the procedures prescribed by this section.
(b) A construction manager-agent is a sole proprietorship, partnership, corporation, or other legal entity that provides consultation to the school district regarding construction, rehabilitation, alteration, or repair of the facility. A district using the construction manager-agent method may, under the contract between the district and the construction manager-agent, require the construction manager-agent to provide administrative personnel, equipment necessary to perform duties under this section, and on-site management and other services specified in the contract. A construction manager-agent represents the district in a fiduciary capacity.
(c) Before or concurrently with selecting a construction manager-agent, the district shall select or designate an engineer or architect who shall prepare the construction documents for the project and who has full responsibility for complying with Chapter 1001 or 1051, Occupations Code, as applicable. If the engineer or architect is not a full-time employee of the district, the district shall select the engineer or architect on the basis of demonstrated competence and qualifications as provided by Section 2254.004, Government Code. The district's engineer or architect may not serve, alone or in combination with another person, as the construction manager-agent unless the engineer or architect is hired to serve as the construction manager-agent under a separate or concurrent procurement conducted in accordance with this subchapter. This subsection does not prohibit the district's engineer or architect from providing customary construction phase services under the engineer's or architect's original professional service agreement in accordance with applicable licensing laws.
(d) A district shall select a construction manager-agent on the basis of demonstrated competence and qualifications in the same manner as provided for the selection of engineers or architects under Section 2254.004, Government Code.
(e) A district using the construction manager-agent method shall procure, in accordance with applicable law and in any manner authorized by this chapter, a general contractor, trade contractors, or subcontractors who will serve as the prime contractor for their specific portion of the work.
(f) The district or the construction manager-agent shall procure in accordance with Section 2254.004, Government Code, all of the testing of construction materials engineering, the inspection services, and the verification testing services necessary for acceptance of the facility by the district.
Added by Acts 1997, 75th Leg., ch. 1179, § 2, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 1225, § 7, eff. Sept. 1, 1999; Acts 2003, 78th Leg., ch. 1276, § 14A.758, eff. Sept. 1, 2003.
§ 44.038. CONTRACTS FOR FACILITIES: CONSTRUCTION MANAGER-AT-RISK. (a) A school district may use the construction manager-at-risk method for the construction, rehabilitation, alteration, or repair of a facility. In using that method and in entering into a contract for the services of a construction manager-at-risk, a district shall follow the procedures prescribed by this section.
(b) A construction manager-at-risk is a sole proprietorship, partnership, corporation, or other legal entity that assumes the risk for construction, rehabilitation, alteration, or repair of a facility at the contracted price as a general contractor and provides consultation to the school district regarding construction during and after the design of the facility.
(c) Before or concurrently with selecting a construction manager-at-risk, the district shall select or designate an engineer or architect who shall prepare the construction documents for the project and who has full responsibility for complying with Chapter 1001 or 1051, Occupations Code, as applicable. If the engineer or architect is not a full-time employee of the district, the district shall select the engineer or architect on the basis of demonstrated competence and qualifications as provided by Section 2254.004, Government Code. The district's engineer, architect, or construction manager-agent for a project may not serve, alone or in combination with another, as the construction manager-at-risk unless the engineer or architect is hired to serve as the construction manager-at-risk under a separate or concurrent procurement conducted in accordance with this subchapter. This subsection does not prohibit the district's engineer or architect from providing customary construction phase services under the engineer's or architect's original professional service agreement in accordance with applicable licensing laws.
(d) The district shall provide or contract for, independently of the construction manager-at-risk, the inspection services, the testing of construction materials engineering, and the verification testing services necessary for acceptance of the facility by the district. The district shall select those services for which it contracts in accordance with Section 2254.004, Government Code.
(e) The district shall select the construction manager-at-risk in either a one-step or two-step process. The district shall prepare a request for proposals, in the case of a one-step process, or a request for qualifications, in the case of a two-step process, that includes general information on the project site, project scope, schedule, selection criteria, estimated budget, and the time and place for receipt of proposals or qualifications, as applicable, a statement as to whether the selection process is a one-step or two-step process, and other information that may assist the district in its selection of a construction manager-at-risk. The district shall state the selection criteria in the request for proposals or qualifications, as applicable. The selection criteria may include the offeror's experience, past performance, safety record, proposed personnel and methodology, and other appropriate factors that demonstrate the capability of the construction manager-at-risk. If a one-step process is used, the district may request, as part of the offeror's proposal, proposed fees and prices for fulfilling the general conditions. If a two-step process is used, the district may not request fees or prices in step one. In step two, the district may request that five or fewer offerors, selected solely on the basis of qualifications, provide additional information, including the construction manager-at-risk's proposed fee and its price for fulfilling the general conditions.
(f) At each step, the district shall receive, publicly open, and read aloud the names of the offerors. At the appropriate step, the district shall also read aloud the fees and prices, if any, stated in each proposal as the proposal is opened. Within 45 days after the date of opening the proposals, the district shall evaluate and rank each proposal submitted in relation to the criteria set forth in the request for proposals.
(g) The district shall select the offeror that submits the proposal that offers the best value for the district based on the published selection criteria and on its ranking evaluation. The district shall first attempt to negotiate with the selected offeror a contract. If the district is unable to negotiate a satisfactory contract with the selected offeror, the district shall, formally and in writing, end negotiations with that offeror and proceed to negotiate with the next offeror in the order of the selection ranking until a contract is reached or negotiations with all ranked offerors end.
(h) A construction manager-at-risk shall publicly advertise, in accordance with Section 44.031(g), and receive bids or proposals from trade contractors or subcontractors for the performance of all major elements of the work other than the minor work that may be included in the general conditions. A construction manager-at-risk may seek to perform portions of the work itself if the construction manager-at-risk submits its bid or proposal for those portions of the work in the same manner as all other trade contractors or subcontractors and if the district determines that the construction manager-at-risk's bid or proposal provides the best value for the district.
(i) The construction manager-at-risk and the district or its representative shall review all trade contractor or subcontractor bids or proposals in a manner that does not disclose the contents of the bid or proposal during the selection process to a person not employed by the construction manager-at-risk, engineer, architect, or district. All bids or proposals shall be made public after the award of the contract or within seven days after the date of final selection of bids or proposals, whichever is later.
(j) If the construction manager-at-risk reviews, evaluates, and recommends to the district a bid or proposal from a trade contractor or subcontractor but the district requires another bid or proposal to be accepted, the district shall compensate the construction manager-at-risk by a change in price, time, or guaranteed maximum cost for any additional cost and risk that the construction manager-at-risk may incur because of the district's requirement that another bid or proposal be accepted.
(k) If a selected trade contractor or subcontractor defaults in the performance of its work or fails to execute a subcontract after being selected in accordance with this section, the construction manager-at-risk may, without advertising, itself fulfill the contract requirements or select a replacement trade contractor or subcontractor to fulfill the contract requirements.
(l) If a fixed contract amount or guaranteed maximum price has not been determined at the time the contract is awarded, the penal sums of the performance and payment bonds delivered to the district must each be in an amount equal to the project budget, as specified in the request for qualifications. The construction manager shall deliver the bonds not later than the 10th day after the date the construction manager executes the contract unless the construction manager furnishes a bid bond or other financial security acceptable to the district to ensure that the construction manager will furnish the required performance and payment bonds when a guaranteed maximum price is established.
Added by Acts 1997, 75th Leg., ch. 1179, § 2, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 1225, § 8, eff. Sept. 1, 1999; Acts 2003, 78th Leg., ch. 1229, § 3, eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch. 1276, § 14A.759, eff. Sept. 1, 2003.
§ 44.039. SELECTING CONTRACTOR FOR CONSTRUCTION SERVICES THROUGH COMPETITIVE SEALED PROPOSALS. (a) In selecting a contractor for construction, rehabilitation, alteration, or repair services for a facility through competitive sealed proposals, a school district shall follow the procedures prescribed by this section.
(b) The district shall select or designate an engineer or architect to prepare construction documents for the project. The selected or designated engineer or architect has full responsibility for complying with Chapter 1001 or 1051, Occupations Code, as applicable. If the engineer or architect is not a full-time employee of the district, the district shall select the engineer or architect on the basis of demonstrated competence and qualifications as provided by Section 2254.004, Government Code.
(c) The district shall provide or contract for, independently of the contractor, the inspection services, the testing of construction materials engineering, and the verification testing services necessary for acceptance of the facility by the district. The district shall select those services for which it contracts in accordance with Section 2254.004, Government Code, and shall identify them in the request for proposals.
(d) The district shall prepare a request for competitive sealed proposals that includes construction documents, selection criteria, estimated budget, project scope, schedule, and other information that contractors may require to respond to the request. The district shall state in the request for proposals the selection criteria that will be used in selecting the successful offeror.
(e) The district shall receive, publicly open, and read aloud the names of the offerors and, if any are required to be stated, all prices stated in each proposal. Within 45 days after the date of opening the proposals, the district shall evaluate and rank each proposal submitted in relation to the published selection criteria.
(f) The district shall select the offeror that offers the best value for the district based on the published selection criteria and on its ranking evaluation. The district shall first attempt to negotiate with the selected offeror a contract. The district and its engineer or architect may discuss with the selected offeror options for a scope or time modification and any price change associated with the modification. If the district is unable to negotiate a contract with the selected offeror, the district shall, formally and in writing, end negotiations with that offeror and proceed to the next offeror in the order of the selection ranking until a contract is reached or all proposals are rejected.
(g) In determining best value for the district, the district is not restricted to considering price alone, but may consider any other factor stated in the selection criteria.
Added by Acts 1997, 75th Leg., ch. 1179, § 2, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 1225, § 8, eff. Sept. 1, 1999; Acts 2003, 78th Leg., ch. 1276, § 14A.760, eff. Sept. 1, 2003.
§ 44.040. SELECTING CONTRACTOR FOR CONSTRUCTION SERVICES THROUGH COMPETITIVE BIDDING. (a) Except to the extent prohibited by other law and to the extent consistent with this subchapter, a school district may use competitive bidding to select a contractor to perform construction, rehabilitation, alteration, or repair services for a facility.
(b) Except as otherwise specifically provided by this subsection, Subchapter B, Chapter 271, Local Government Code, does not apply to a competitive bidding process under this subchapter. Sections 271.026, 271.027(a), and 271.0275, Local Government Code, apply to a competitive bidding process under this subchapter.
(c) The district shall select or designate an engineer or architect to prepare construction documents for the project. The selected or designated engineer or architect has full responsibility for complying with Chapter 1001 and Chapter 1051, Occupations Code, as applicable.
(d) A school district shall award a competitively bid contract at the bid amount to the bidder offering the best value to the district according to the selection criteria that were established by the district. The selection criteria may include the factors listed in Section 44.031(b).
Added by Acts 1997, 75th Leg., ch. 1179, § 2, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 1225, § 9, eff. Sept. 1, 1999; Acts 2003, 78th Leg., ch. 1229, § 4, eff. Sept. 1, 2003.
§ 44.041. JOB ORDER CONTRACTS FOR FACILITIES CONSTRUCTION OR REPAIR. (a) A school district may award job order contracts for the minor construction, repair, rehabilitation, or alteration of a facility if the work is of a recurring nature but the delivery times are indefinite and indefinite quantities and orders are awarded substantially on the basis of predescribed and prepriced tasks.
(b) The school district may establish contractual unit prices for a job order contract by:
(1) specifying one or more published construction unit price books and the applicable divisions or line items; or
(2) providing a list of work items and requiring the offerors to bid or propose one or more coefficients or multipliers to be applied to the price book or work items as the price proposal.
(c) The school district shall advertise for, receive, and publicly open sealed proposals for job order contracts.
(d) The district may require offerors to submit additional information besides rates, including experience, past performance, and proposed personnel and methodology.
(e) The district may award job order contracts to one or more job order contractors in connection with each solicitation of bids or proposals.
(f) An order for a job or project under the job order contract must be signed by the district's representative and the contractor. The order may be a fixed price, lump-sum contract based substantially on contractual unit pricing applied to estimated quantities or may be a unit price order based on the quantities and line items delivered.
(g) The contractor shall provide payment and performance bonds, if required by law, based on the amount or estimated amount of any order.
(h) The base term of a job order contract is for the period and with any renewal option that the district sets forth in the request for proposals. If the district fails to advertise that term, the base term may not exceed two years and is not renewable without further advertisement and solicitation of proposals.
(i) If a job order contract or an order issued under the contract requires engineering or architectural services that constitute the practice of engineering within the meaning of Chapter 1001, Occupations Code, or the practice of architecture within the meaning of Chapter 1051, Occupations Code, those services shall be provided in accordance with applicable law.
Added by Acts 1997, 75th Leg., ch. 1179, § 2, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 1225, § 10, eff. Sept. 1, 1999; Acts 2003, 78th Leg., ch. 1276, § 14A.761, eff. Sept. 1, 2003.
§ 44.042. PREFERENCE TO TEXAS AND UNITED STATES PRODUCTS. (a) A school district that purchases agricultural products shall give preference to those produced, processed, or grown in this state if the cost to the school district is equal and the quality is equal.
(b) If agricultural products produced, processed, or grown in this state are not equal in cost and quality to other products, the school district shall give preference to agricultural products produced, processed, or grown in other states of the United States over foreign products if the cost to the school district is equal and the quality is equal.
(c) A school district that purchases vegetation for landscaping purposes, including plants, shall give preference to Texas vegetation if the cost to the school district is equal and the quality is not inferior.
(d) The agency shall conduct an analysis of purchases by school districts to determine the effectiveness of this section and shall report the results of its analysis to the governor, lieutenant governor, and speaker of the house of representatives not later than December 31 of each even-numbered year.
(e) In the implementation of this section, a school district may receive assistance from and use the resources of the Texas Department of Agriculture, including information on availability of agricultural products.
(f) A school district may not adopt product purchasing specifications that unnecessarily exclude agricultural products produced, processed, or grown in this state.
(g) In this section: (1) "Agricultural products" includes textiles and other similar products. (2) "Processed" means canning, freezing, drying, juicing, preserving, or any other act that changes the form of a good from its natural state to another form.
Added by Acts 1999, 76th Leg., ch. 1342, § 1, eff. Sept. 1, 1999.
§ 44.043. RIGHT TO WORK. (a) This section applies to a school district while the school district is engaged in:
(1) procuring goods or services; (2) awarding a contract; or (3) overseeing procurement or construction for a public work or public improvement.
(b) Notwithstanding any other provision of this chapter, a school district: (1) may not consider whether a vendor is a member of or has another relationship with any organization; and
(2) shall ensure that its bid specifications and any subsequent contract or other agreement do not deny or diminish the right of a person to work because of the person's membership or other relationship status with respect to any organization.
Added by Acts 2001, 77th Leg., ch. 1409, § 13, eff. Sept. 1, 2001.
§ 44.044. CONTRACT WITH PERSON INDEBTED TO SCHOOL DISTRICT. (a) The board of trustees of a school district by resolution may establish regulations permitting the school district to refuse to enter into a contract or other transaction with a person indebted to the school district.
(b) It is not a violation of this subchapter for a school district, under regulations adopted under Subsection (a), to refuse to award a contract to or enter into a transaction with an apparent low bidder or successful proposer that is indebted to the school district.
(c) In this section, "person" includes an individual, sole proprietorship, corporation, nonprofit corporation, partnership, joint venture, limited liability company, and any other entity that proposes or otherwise seeks to enter into a contract or other transaction with the school district requiring approval by the board.
Added by Acts 2003, 78th Leg., ch. 156, § 3, eff. Sept. 1, 2003.
SUBCHAPTER C. PENAL PROVISIONS
§ 44.051. INTERFERENCE WITH OPERATION OF FOUNDATION SCHOOL PROGRAM. An offense under Section 37.10, Penal Code, is a felony of the third degree if it is shown on trial of the offense that the governmental record was a record, form, report, or budget required under Chapter 42 or rules adopted under that chapter. If the actor's intent is to defraud the state or the public school system, the offense is a felony of the second degree.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 44.052. FAILURE TO COMPLY WITH BUDGET REQUIREMENTS; PENALTY. (a) Any county superintendent approving any expenditure of school funds in excess of the item or items appropriated in the adopted budget or a supplementary or amended budget commits an offense. An offense under this subsection is a Class C misdemeanor.
(b) A person who fails to comply with the person's duties with regard to the preparation or the following of a county school budget or a budget of a school district or who violates any provision of Section 44.002 commits an offense. An offense under this subsection is a Class C misdemeanor.
(c) A trustee of a school district who votes to approve any expenditure of school funds in excess of the item or items appropriated in the adopted budget or a supplementary or amended budget commits an offense. An offense under this subsection is a Class C misdemeanor.
(d) Charges of the violation of this section may be instituted by the proper county or district attorney or by the attorney general.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 44.053. FAILURE OF MUNICIPAL OFFICER TO MAKE TREASURER'S REPORT; PENALTY. Any county or municipal treasurer or treasurer of the school board of each municipality having exclusive control of its schools who fails to make and transmit any report and certified copy thereof, or either, required by law, commits an offense. An offense under this section is a Class C misdemeanor.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 44.054. FAILURE TO TRANSFER STUDENTS AND FUNDS. A county judge serving as ex officio county superintendent, a county, district, or municipal superintendent, or a school officer who refuses to transfer students and funds as provided by Subchapter B, Chapter 25, commits an offense. An offense under this section is a Class B misdemeanor.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
SUBCHAPTER Z. MISCELLANEOUS PROVISIONS
§ 44.901. ENERGY SAVINGS PERFORMANCE CONTRACTS. (a) In this section, "energy savings performance contract" means a contract for energy or water conservation measures to reduce energy or water consumption or operating costs of school facilities in which the estimated savings in utility costs resulting from the measures is guaranteed to offset the cost of the measures over a specified period. The term includes a contract for the installation or implementation of:
(1) insulation of a building structure and systems within the building; (2) storm windows or doors, caulking or weatherstripping, multiglazed windows or doors, heat absorbing or heat reflective glazed and coated window or door systems, or other window or door system modifications that reduce energy consumption;
(3) automatic energy control systems, including computer software and technical data licenses;
(4) heating, ventilating, or air-conditioning system modifications or replacements that reduce energy or water consumption;
(5) lighting fixtures that increase energy efficiency; (6) energy recovery systems; (7) electric systems improvements; (8) water-conserving fixtures, appliances, and equipment or the substitution of non-water-using fixtures, appliances, and equipment;
(9) water-conserving landscape irrigation equipment; (10) landscaping measures that reduce watering demands and capture and hold applied water and rainfall, including:
(A) landscape contouring, including the use of berms, swales, and terraces; and
(B) the use of soil amendments that increase the water-holding capacity of the soil, including compost;
(11) rainwater harvesting equipment and equipment to make use of water collected as part of a storm-water system installed for water quality control;
(12) equipment for recycling or reuse of water originating on the premises or from other sources, including treated municipal effluent;
(13) equipment needed to capture water from nonconventional, alternate sources, including air conditioning condensate or graywater, for nonpotable uses;
(14) metering equipment needed to segregate water use in order to identify water conservation opportunities or verify water savings; or
(15) other energy or water conservation-related improvements or equipment, including improvements or equipment relating to renewable energy or nonconventional water sources or water reuse.
(b) The board of trustees of a school district may enter into an energy savings performance contract in accordance with this section.
(c) Each energy or water conservation measure must comply with current local, state, and federal construction, plumbing, and environmental codes and regulations. Notwithstanding Subsection (a), an energy savings performance contract may not include improvements or equipment that allow or cause water from any condensing, cooling, or industrial process or any system of nonpotable usage over which the public water supply system officials do not have sanitary control, to be returned to the potable water supply.
(d) The board may enter into energy savings performance contracts only with persons who are experienced in the design, implementation, and installation of the energy or water conservation measures addressed by the contract.
(e) Before entering into an energy savings performance contract, the board shall require the provider of the energy or water conservation measures to file with the board a payment and performance bond relating to the installation of the measures in accordance with Chapter 2253, Government Code. The board may also require a separate bond to cover the value of the guaranteed savings on the contract.
(f) An energy savings performance contract may be financed: (1) under a lease/purchase contract that has a term not to exceed 15 years from the final date of installation and that meets federal tax requirements for tax-free municipal leasing or long-term financing;
(2) with the proceeds of bonds; or (3) under a contract with the provider of the energy or water conservation measures that has a term not to exceed 15 years from the final date of installation.
(g) An energy savings performance contract shall contain provisions requiring the provider of the energy or water conservation measures to guarantee the amount of the savings to be realized by the school district under the contract. If the term of an energy savings performance contract exceeds one year, the school district's contractual obligations in any one year during the term of the contract beginning after the final date of installation may not exceed the total energy, water, wastewater, and operating cost savings, including electrical, gas, water, wastewater, or other utility cost savings and operating cost savings resulting from the measures, as determined by the school district in this subsection, divided by the number of years in the contract term.
(h) An energy savings performance contract shall be let according to the procedures established for procuring certain professional services by Section 2254.004, Government Code. Notice of the request for qualifications shall be published in the manner provided for competitive bidding.
(i) Before entering into an energy savings performance contract, the board must require that the cost savings projected by an offeror be reviewed by a licensed professional engineer who is not an officer or employee of an offeror for the contract under review or otherwise associated with the contract or the offeror. An engineer who reviews a contract shall maintain the confidentiality of any proprietary information the engineer acquires while reviewing the contract. Sections 1001.053 and 1001.407, Occupations Code, apply to work performed under the contract.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995. Amended by Acts 1997, 75th Leg., ch. 1142, § 1, eff. June 19, 1997; Acts 1999, 76th Leg., ch. 361, § 1, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 573, § 1, 2, 11, eff. Sept. 1, 2001; Acts, 2001, 77th Leg., ch. 1319, § 1, eff, Sept. 1, 2001; Acts 2003, 78th Leg., ch. 1310, § 5, 121(1), eff. June 20, 2003. § 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. 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.
Amendment by Acts 1973, 63rd Leg., p. 1776, ch. 651, § 1
Acts 1973, 63rd Leg., p. 1776, ch. 651, § 1, effective June 16, 1973, amends Vernon's Ann.Civ.St. art. 2784g-2, § 1 [now subsec. (a) of this section] without reference to repeal of said article by Acts 1973, 63rd Leg., p. 90, ch. 51, § 19, effective August 27, 1973. As so amended, § 1 of art. 2784g-2 reads:
"Any school district, including a junior college district, may issue interest bearing Certificates of Indebtedness for the purpose of (1) providing funds for the erection and equipment of school buildings within the boundaries of the district, (2) refinancing outstanding certificates as herein provided, or (3) purchasing sites for the future construction of public school facilities. The term certificates, as used in this Act, shall include all obligations authorized to be issued hereunder and the term shall include interest thereon, unless clearly indicated by the context that another meaning is intended."
§ 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. (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) 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;
(E) other obligations, 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
(F) 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; Acts 2005, 79th Leg., ch. 417, § 1, 2, eff. June 17, 2005; Acts 2005, 79th Leg., ch. 1199, § 1, 2, eff. June 18, 2005.
§ 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. § 46.001. DEFINITION. In this subchapter, "instructional facility" means real property, an improvement to real property, or a necessary fixture of an improvement to real property that is used predominantly for teaching the curriculum required under Section 28.002.
Added by Acts 1997, 75th Leg., ch. 592, § 1.04, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 396, § 1.23, eff. Sept. 1, 1999.
§ 46.002. RULES. (a) The commissioner may adopt rules for the administration of this subchapter.
(b) The commissioner's rules may limit the amount of an allotment under this subchapter that is to be used to construct, acquire, renovate, or improve an instructional facility that may also be used for noninstructional or extracurricular activities.
Added by Acts 1997, 75th Leg., ch. 592, § 1.04, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 396, § 1.23, eff. Sept. 1, 1999.
§ 46.003. SCHOOL FACILITIES ALLOTMENT. (a) For each year, except as provided by Sections 46.005 and 46.006, a school district is guaranteed a specified amount per student in state and local funds for each cent of tax effort, up to the maximum rate under Subsection (b), to pay the principal of and interest on eligible bonds issued to construct, acquire, renovate, or improve an instructional facility. The amount of state support is determined by the formula:
FYA = (FYL X ADA X BTR X 100) - (BTR X (DPV/100))
where: "FYA" is the guaranteed facilities yield amount of state funds allocated to the district for the year;
"FYL" is the dollar amount guaranteed level of state and local funds per student per cent of tax effort, which is $35 or a greater amount for any year provided by appropriation;
"ADA" is the greater of the number of students in average daily attendance, as determined under Section 42.005, in the district or 400;
"BTR" is the district's bond tax rate for the current year, which is determined by dividing the amount budgeted by the district for payment of eligible bonds by the quotient of the district's taxable value of property as determined under Subchapter M, Chapter 403, Government Code, or, if applicable, Section 42.2521, divided by 100; and
"DPV" is the district's taxable value of property as determined under Subchapter M, Chapter 403, Government Code, or, if applicable, Section 42.2521.
(b) The bond tax rate under Subsection (a) may not exceed the rate that would be necessary for the current year, using state funds under Subsection (a), to make payments of principal and interest on the bonds for which the tax is pledged.
(c) To enable the district to collect local funds sufficient to pay the district's share of the debt service, a district may levy a bond tax at a rate higher than the maximum rate for which it may receive state assistance.
(d) The amount budgeted by a district for payment of eligible bonds may include:
(1) bond taxes collected in the current school year; (2) bond taxes collected in a preceding school year in excess of the amount necessary to pay the district's share of actual debt service on bonds in that year, provided that the taxes were not used to generate other state financial assistance for the district; or
(3) maintenance and operations taxes collected in the current school year or a preceding school year in excess of the amount eligible to be used to generate other state financial assistance for the district.
(e) Bonds are eligible to be paid with state and local funds under this section if:
(1) taxes to pay the principal of and interest on the bonds were first levied in the 1997-1998 school year or a later school year; and
(2) the bonds do not have a weighted average maturity of less than eight years.
(f) A district may use state funds received under this section only to pay the principal of and interest on the bonds for which the district received the funds.
(g) The board of trustees and voters of a school district shall determine district needs concerning construction, acquisition, renovation, or improvement of instructional facilities.
(h) To receive state assistance under this subchapter, a school district must apply to the commissioner in accordance with rules adopted by the commissioner before issuing bonds that will be paid with state assistance. Until the bonds are fully paid or the instructional facility is sold:
(1) a school district is entitled to continue receiving state assistance without reapplying to the commissioner; and
(2) the guaranteed level of state and local funds per student per cent of tax effort applicable to the bonds may not be reduced below the level provided for the year in which the bonds were issued.
Added by Acts 1997, 75th Leg., ch. 592, § 1.04, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 396, § 1.24, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 1156, § 6, eff. Sept. 1, 2001.
§ 46.004. LEASE-PURCHASE AGREEMENTS. (a) A district may receive state assistance in connection with a lease-purchase agreement concerning an instructional facility. For purposes of this subchapter:
(1) taxes levied for purposes of maintenance and operations that are necessary to pay a district's share of the payments under a lease-purchase agreement for which the district receives state assistance under this subchapter are considered to be bond taxes; and
(2) payments under a lease-purchase agreement are considered to be payments of principal of and interest on bonds.
(b) Section 46.003(b) applies to taxes levied to pay a district's share of the payments under a lease-purchase agreement for which the district receives state assistance under this subchapter.
(c) A lease-purchase agreement must be for a term of at least eight years to be eligible to be paid with state and local funds under this subchapter.
Added by Acts 1997, 75th Leg., ch. 592, § 1.04, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 396, § 1.25, eff. Sept. 1, 1999.
§ 46.005. LIMITATION ON GUARANTEED AMOUNT. The guaranteed amount of state and local funds for a new project that a district may be awarded in any state fiscal biennium under Section 46.003 for a school district may not exceed the lesser of:
(1) the amount the actual debt service payments the district makes in the biennium in which the bonds are issued; or
(2) the greater of: (A) $100,000; or (B) the product of the number of students in average daily attendance in the district multiplied by $250.
Added by Acts 1997, 75th Leg., ch. 592, § 1.04, eff. Sept. 1, 1997.
§ 46.006. SHORTAGE OR EXCESS OF FUNDS APPROPRIATED FOR NEW PROJECTS. (a) If the total amount appropriated for a year for new projects is less than the amount of money to which school districts applying for state assistance are entitled for that year, the commissioner shall rank each school district applying by wealth per student. For purposes of this section, a district's wealth per student is reduced by 10 percent for each state fiscal biennium in which the district did not receive assistance under this subchapter.
(b) A district's wealth per student is reduced for purposes of this section if a district has had substantial student enrollment growth in the preceding five-year period. The reduction is in addition to any reduction under Subsection (a) and is computed before the district's wealth per student is reduced under that subsection, if applicable. A district's wealth per student is reduced:
(1) by five percent, if the district has an enrollment growth rate in that period that is 10 percent or more but less than 15 percent;
(2) by 10 percent, if the district has an enrollment growth rate in that period that is 15 percent or more but less than 30 percent; or
(3) by 15 percent, if the district has an enrollment growth rate in that period that is 30 percent or more.
(c) A district's wealth per student is reduced by 10 percent for purposes of this section if the district does not have any outstanding debt at the time the district applies for assistance under this subchapter. The reduction is in addition to any reduction under Subsection (a) or (b) and is computed before the district's wealth per student is reduced under those subsections, if applicable.
(d) The commissioner shall adjust the rankings after making the reductions in wealth per student required by Subsections (a), (b), and (c).
(e) Beginning with the district with the lowest adjusted wealth per student that has applied for state assistance for the year, the commissioner shall award state assistance to districts that have applied for state assistance in ascending order of adjusted wealth per student. The commissioner shall award the full amount of state assistance to which a district is entitled under this subchapter, except that the commissioner may award less than the full amount to the last district for which any funds are available.
(f) Any amount appropriated for the first year of a fiscal biennium that is not awarded to a school district may be used to provide assistance in the following fiscal year.
(g) In this section, "wealth per student" means a school district's taxable value of property as determined under Subchapter M, Chapter 403, Government Code, or, if applicable, Section 42.2521, divided by the district's average daily attendance as determined under Section 42.005.
Added by Acts 1997, 75th Leg., ch. 592, § 1.04, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 396, § 1.26, eff. Sept. 1, 1999.
§ 46.007. REFUNDING BONDS. A school district may use state funds received under this subchapter to pay the principal of and interest on refunding bonds that:
(1) are issued to refund bonds eligible under Section 46.003; (2) do not have a final maturity date later than the final maturity date of the bonds being refunded;
(3) may not be called for redemption earlier than the earliest call date of the bonds being refunded; and
(4) result in a present value savings, which is determined by computing the net present value of the difference between each scheduled payment on the original bonds and each scheduled payment on the refunding bonds. The present value savings shall be computed at the true interest cost of the refunding bonds.
Added by Acts 1997, 75th Leg., ch. 592, § 1.04, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 396, § 1.27, eff. Sept. 1, 1999.
§ 46.008. STANDARDS. The commissioner shall establish standards for adequacy of school facilities. The standards must include requirements related to space, educational adequacy, and construction quality. All new facilities constructed after September 1, 1998, must meet the standards to be eligible to be financed with state or local tax funds.
Added by Acts 1997, 75th Leg., ch. 592, § 1.04, eff. Sept. 1, 1997.
§ 46.0081. SECURITY CRITERIA IN DESIGN OF INSTRUCTIONAL FACILITIES. A school district that constructs a new instructional facility or conducts a major renovation of an existing instructional facility using funds allotted to the district under this subchapter shall consider, in the design of the instructional facility, security criteria developed by the Texas School Safety Center under Section 37.2051.
Added by Acts 2005, 79th Leg., ch. 780, § 7, eff. Sept. 1, 2005.
§ 46.009. PAYMENT OF SCHOOL FACILITIES ALLOTMENTS. (a) For each school year, the commissioner shall determine the amount of money to which each school district is entitled under this subchapter.
(b) If the amount appropriated for purposes of this subchapter for a year is less than the total amount determined under Subsection (a) for that year, the commissioner shall:
(1) transfer from the Foundation School Program to the instructional facilities program the amount by which the total amount determined under Subsection (a) exceeds the amount appropriated; and
(2) reduce each district's foundation school fund allocations in the manner provided by Section 42.253(h).
(c) Warrants for payments under this subchapter shall be approved and transmitted to school district treasurers or depositories in the same manner as warrants for payments under Chapter 42.
(d) As soon as practicable after September 1 of each year, the commissioner shall distribute to each school district the amount of state assistance under this subchapter to which the commissioner has determined the district is entitled for the school year. The district shall deposit the money in the interest and sinking fund for the bonds for which the assistance is received and shall adopt a tax rate for purposes of debt service that takes into account the balance of the interest and sinking fund.
(e) Section 42.258 applies to payments under this subchapter. (f) If a school district would have received a greater amount under this subchapter for the applicable school year using the adjusted value determined under Section 42.257, the commissioner shall add the difference between the adjusted value and the amount the district received under this subchapter to subsequent distributions to the district under this subchapter.
Added by Acts 1997, 75th Leg., ch. 592, § 1.04, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 396, § 1.27, eff. Sept. 1, 1999.
§ 46.010. PROJECTS BY MORE THAN ONE DISTRICT. If two or more districts apply for state assistance in connection with a joint project at a single location, each district is entitled to a guaranteed facilities yield amount of state and local funds that is 20 percent higher than the amount to which the district would otherwise be entitled under Section 46.005.
Added by Acts 1997, 75th Leg., ch. 592, § 1.04, eff. Sept. 1, 1997.
§ 46.011. SALE OF INSTRUCTIONAL FACILITY FINANCED WITH INSTRUCTIONAL FACILITIES ALLOTMENT. (a) If an instructional facility financed by bonds paid with state and local funds under this subchapter is sold before the bonds are fully paid, the school district shall send to the comptroller an amount equal to the district's net proceeds from the sale multiplied by a percentage determined by dividing the amount of state funds under this subchapter used to pay the principal of and interest on the bonds by the total amount of principal and interest paid on the bonds with funds other than the proceeds of the sale.
(b) In this section, "net proceeds" means the difference between the total amount received from the sale less:
(1) the amount necessary to fully pay the outstanding principal of and interest on the bonds; and
(2) the school district's costs of the sale, as approved by the commissioner.
Added by Acts 1997, 75th Leg., ch. 592, § 1.04, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 396, § 1.28, eff. Sept. 1, 1999.
§ 46.012. APPLICABILITY TO OPEN-ENROLLMENT CHARTER SCHOOLS. An open-enrollment charter school is not entitled to an allotment under this subchapter.
Added by Acts 2001, 77th Leg., ch. 1504, § 30, eff. Sept. 1, 2001.
§ 46.013. MULTIPLE ALLOTMENTS PROHIBITED. A school district is not entitled to state assistance under this subchapter based on taxes with respect to which the district receives state assistance under Subchapter F, Chapter 42.
Added by Acts 2001, 77th Leg., ch. 1156, § 7, eff. Sept. 1, 2001. Renumbered from V.T.C.A., Education Code § 46.012 by Acts 2003, 78th Leg., ch. 1275, § 2(22), eff. Sept. 1, 2003.
SUBCHAPTER B. ASSISTANCE WITH PAYMENT OF EXISTING DEBT
§ 46.031. RULES. The commissioner may adopt rules for the administration of this subchapter.
Added by Acts 1999, 76th Leg., ch. 396, § 1.29, eff. Sept. 1, 1999.
§ 46.032. ALLOTMENT. (a) Each school district is guaranteed a specified amount per student in state and local funds for each cent of tax effort to pay the principal of and interest on eligible bonds. The amount of state support, subject only to the maximum amount under Section 46.034, is determined by the formula:
EDA = (EDGL X ADA X EDTR X 100) - (EDTR X (DPV/100))
where: "EDA" is the amount of state funds to be allocated to the district for assistance with existing debt;
"EDGL" is the dollar amount guaranteed level of state and local funds per student per cent of tax effort, which is $35 or a greater amount for any year provided by appropriation;
"ADA" is the number of students in average daily attendance, as determined under Section 42.005, in the district;
"EDTR" is the existing debt tax rate of the district, which is determined by dividing the amount budgeted by the district for payment of eligible bonds by the quotient of the district's taxable value of property as determined under Subchapter M, Chapter 403, Government Code, or, if applicable, under Section 42.2521, divided by 100; and
"DPV" is the district's taxable value of property as determined under Subchapter M, Chapter 403, Government Code, or, if applicable, under Section 42.2521.
(b) The existing debt tax rate of the district under Subsection (a) may not exceed the rate that would be necessary for the current year, using state funds under Subsection (a), to make payments of principal and interest on the bonds for which the tax is pledged.
(c) The amount budgeted by a district for payment of eligible bonds may include:
(1) bond taxes collected in the current school year; (2) bond taxes collected in a preceding school year in excess of the amount necessary to pay the district's share of actual debt service on bonds in that year, provided that the taxes were not used to generate other state financial assistance for the district; or
(3) maintenance and operations taxes collected in the current school year or a preceding school year in excess of the amount eligible to be used to generate other state financial assistance for the district.
Added by Acts 1999, 76th Leg., ch. 396, § 1.29, eff. Sept. 1, 1999. Amended by Acts 2001, 77th Leg., ch. 1156, § 8, eff. Sept. 1, 2001.
§ 46.033. ELIGIBLE BONDS. Bonds, including bonds issued under Section 45.006, are eligible to be paid with state and local funds under this subchapter if:
(1) the district made payments on the bonds during the 2004-2005 school year or taxes levied to pay the principal of and interest on the bonds were included in the district's audited debt service collections for that school year; and
(2) the district does not receive state assistance under Subchapter A for payment of the principal and interest on the bonds.
Added by Acts 1999, 76th Leg., ch. 396, § 1.29, eff. Sept. 1, 1999. Amended by Acts 2001, 77th Leg., ch. 1156, § 9, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 201, § 40, eff. Sept. 1, 2003; Acts 2005, 79th Leg., ch. 899, § 12.01, eff. Aug. 29, 2005.
§ 46.034. LIMITS ON ASSISTANCE. (a) The existing debt tax rate ("EDTR") under Section 46.032 may not exceed $0.29 per $100 of valuation, or a greater amount for any year provided by appropriation.
(b) The amount of state assistance to which a district is entitled under this subchapter may not exceed the amount to which the district would be entitled at the district's tax rate for the payment of eligible bonds for the final year of the preceding state fiscal biennium.
(c) If the amount required to pay the principal of and interest on eligible bonds in a school year is less than the amount of payments made by the district on the bonds during the 2004-2005 school year or the district's audited debt service collections for that school year, the district may not receive aid in excess of the amount that, when added to the district's local revenue for the school year, equals the amount required to pay the principal of and interest on the bonds.
Added by Acts 1999, 76th Leg., ch. 396, § 1.29, eff. Sept. 1, 1999. Amended by Acts 2001, 77th Leg., ch. 1156, § 10, 12, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 201, § 41, eff. Sept. 1, 2003; Acts 2005, 79th Leg., ch. 899, § 12.02, eff. Aug. 29, 2005.
§ 46.035. PAYMENT OF ASSISTANCE. Section 46.009 applies to the payment of assistance under this subchapter.
Added by Acts 1999, 76th Leg., ch. 396, § 1.29, eff. Sept. 1, 1999.
§ 46.036. APPLICABILITY TO OPEN-ENROLLMENT CHARTER SCHOOLS. An open-enrollment charter school is not entitled to an allotment under this subchapter.
Added by Acts 2001, 77th Leg., ch. 1504, § 31, eff. Sept. 1, 2001.
§ 46.037. MULTIPLE ALLOTMENTS PROHIBITED. A school district is not entitled to state assistance under this subchapter based on taxes with respect to which the district receives state assistance under Subchapter F, Chapter 42.
Added by Acts 2001, 77th Leg., ch. 1156, § 11, eff. Sept. 1, 2001. Renumbered from V.T.C.A., Education Code § 46.036 by Acts 2003, 78th Leg., ch. 1275, § 2(23), eff. Sept. 1, 2003.
SUBCHAPTER C. REFINANCING
§ 46.061. [AUTHORITY OF COMMISSIONER]. (a) The commissioner by rule may provide for the payment of state assistance under this chapter to refinance school district debt. A refinancing may not increase the cost to the state of providing the assistance.
(b) The commissioner may allocate state assistance provided for a refinancing to Subchapter A, Subchapter B, or both, as appropriate.
Added by Acts 1999, 76th Leg., ch. 396, § 1.29, eff. Sept. 1, 1999.
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