November 2015 Committee of the Full Board Item 2
Action on Earlier Effective Date of Adopted Amendment to
19 TAC §33.65, Bond Guarantee Program for School Districts
November 20, 2015
COMMITTEE OF THE FULL BOARD: ACTION
STATE BOARD OF EDUCATION: ACTION
SUMMARY: This item provides the opportunity for the State Board of Education (SBOE) to consider action to approve an earlier effective date for the amendment to 19 TAC Chapter 33, Statement of Investment Objectives, Policies, and Guidelines of the Texas Permanent School Fund, Subchapter A, State Board of Education Rules, §33.65, Bond Guarantee Program for School Districts, adopted at the September 2015 SBOE meeting. At its September 2015 meeting, the SBOE voted to approve the amendment but did not approve an earlier effective date. Pursuant to the Texas Education Code (TEC), §7.102(f), the adopted rule would have an effective date of the beginning of the 2016-2017 school year, unless the board approves by a two-thirds vote an earlier effective date.
STATUTORY AUTHORITY: The statutory authority for the proposed action on an earlier effective date is TEC, §7.102(f).
TEC, §7.102(f), establishes that a rule adopted by the SBOE does not take effect until the beginning of the school year that begins at least 90 days after the date on which the rule was adopted, with the exception that the rule may take effect earlier if the rule is adopted on the affirmative vote of two-thirds of the members of the board.
PREVIOUS BOARD ACTION: At its September 2015 meeting, the SBOE approved for second reading and final adoption the proposed amendment to 19 TAC §33.65.
BACKGROUND INFORMATION AND SIGNIFICANT ISSUES: After discussion, deliberation, and public input at its April, July, and September 2015 meetings, the SBOE amended its rule on the Bond Guarantee Program for school districts by modifying the definitions of nationally recognized investment rating firm and new money issue and increasing the multiplier used in calculating the capacity of the fund. Text of the amendment to 19 TAC §33.65 as adopted by the SBOE is shown in Attachment II; however, substance of the adopted amendment is not before the board.
Following the September 2015 SBOE meeting, Texas Education Agency (TEA) staff filed the adopted amendment with the Texas Register with the effective date of August 22, 2016, the beginning of the next school year.
This item provides the SBOE an opportunity to consider taking a vote to specify an effective date earlier than the beginning of the 2016-2017 school year. The rule as adopted at the September Board meeting may not be amended until after the rule takes effect.
MOTION TO BE CONSIDERED: The State Board of Education:
By an affirmative vote of two-thirds of the members of the board, specify an earlier effective for the adopted amendment to 19 TAC §33.65, Bond Guarantee Program for School Districts. The effective date would be January 1, 2016.
Staff Members Responsible:
Von Byer, General Counsel
Legal Services
Lisa Dawn-Fisher, Associate Commissioner
School Finance / Chief School Finance Officer
Attachments:
I. Statutory Citations (PDF, 14KB)
II. Text of Adopted Amendment to 19 TAC §33.65, Bond Guarantee Program for School Districts (as approved by the State Board of Education at its September 2015 meeting) (PDF, 68KB)