|
|
|
A BILL TO BE ENTITLED
|
|
AN ACT
|
|
relating to the issuance of bonds by certain local government |
|
corporations. |
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
SECTION 1. Section 431.003(3), Transportation Code, is |
|
amended to read as follows: |
|
(3) "Local government" means: |
|
(A) a municipality; |
|
(B) a county; or |
|
(C) for purposes of Subchapter D or D-1: |
|
(i) a navigation district, hospital |
|
district, or hospital authority; |
|
(ii) a regional transportation authority |
|
governed by Chapter 452; |
|
(iii) a rapid transit authority governed by |
|
Chapter 451; or |
|
(iv) a coordinated county transportation |
|
authority governed by Chapter 460. |
|
SECTION 2. Section 431.070(a), Transportation Code, is |
|
amended to read as follows: |
|
(a) Subject to Subchapter D-1, a [A] corporation may issue |
|
bonds and notes to carry out its purpose. |
|
SECTION 3. Section 431.101(b), Transportation Code, is |
|
amended to read as follows: |
|
(b) Except as provided by Subchapter D-1, a [A] local |
|
government corporation has the powers of a corporation authorized |
|
for creation by the commission under this chapter. |
|
SECTION 4. Chapter 431, Transportation Code, is amended by |
|
adding Subchapter D-1 to read as follows: |
|
SUBCHAPTER D-1. ISSUANCE OF BONDS BY CERTAIN LOCAL GOVERNMENT |
|
CORPORATIONS CREATED BY MUNICIPALITIES OR COUNTIES |
|
Sec. 431.120. APPLICABILITY OF SUBCHAPTER. This subchapter |
|
applies to a local government corporation created by a municipality |
|
or county independently or with another local government that has |
|
entered into an agreement with a municipality or county for the |
|
transfer to the corporation of revenue from ad valorem taxes that |
|
were approved by the voters of the municipality or county under |
|
Section 26.07, Tax Code. |
|
Sec. 431.121. BOND ELECTION REQUIRED. (a) Notwithstanding |
|
any other law, a local government corporation may not issue bonds, |
|
other than refunding bonds, to be paid wholly or partly from ad |
|
valorem taxes transferred from a municipality or county to the |
|
corporation that were approved by the voters of the municipality or |
|
county under Section 26.07, Tax Code, unless the corporation is |
|
first authorized to issue bonds under this subchapter by the voters |
|
of the municipality or county in an election held by the |
|
municipality or county for that purpose. |
|
(b) Bonds authorized under this subchapter to finance a |
|
project may be issued in one or more series. |
|
(c) An election held for purposes of this section must be: |
|
(1) conducted as provided by Section 1251.003, |
|
Government Code; and |
|
(2) held in the municipality or county on the uniform |
|
election date in November. |
|
Sec. 431.122. FORM OF BALLOT. (a) The ballot proposition |
|
for a measure seeking voter approval for issuance of bonds under |
|
this subchapter must include: |
|
(1) a plain language description of the purposes for |
|
which the bonds are to be authorized; |
|
(2) the principal amount not to be exceeded in the |
|
aggregate of the bonds authorized to be issued in one or more |
|
series; |
|
(3) the maximum maturity date of the bonds to be |
|
authorized, not to exceed 40 years; and |
|
(4) that the principal of and interest on the bonds |
|
will be wholly or partly paid from funds received pursuant to an |
|
agreement with the municipality or county for the transfer of ad |
|
valorem taxes approved by the voters of the municipality or county |
|
under Section 26.07, Tax Code. |
|
(b) A proposition may include as a purpose one or more |
|
structures or improvements serving the substantially same purpose |
|
and may include related improvements and equipment necessary to |
|
accomplish the purpose. |
|
(c) The result of an election held under this subchapter |
|
does not affect the result of a prior election held under Section |
|
26.07, Tax Code. |
|
Sec. 431.123. CONDITION OF BONDS. A bond authorized to be |
|
issued under this subchapter may not mature more than 40 years after |
|
the date the bond was issued. |
|
SECTION 5. Section 1207.001(1), Government Code, is amended |
|
to read as follows: |
|
(1) "Issuer" means this state or any department, |
|
board, authority, agency, subdivision, municipal corporation, |
|
district, public corporation, body politic, or instrumentality of |
|
this state which has the power to borrow money and issue bonds, |
|
notes, or other evidences of indebtedness. The term includes a |
|
county, municipality, state-supported institution of higher |
|
education, junior college district, regional college district, |
|
school district, hospital district, water district, road district, |
|
navigation district, conservation district, local government |
|
corporation, and any other kind or type of political or |
|
governmental entity. |
|
SECTION 6. The change in law made by Subchapter D-1, Chapter |
|
431, Transportation Code, as added by this Act, applies only to a |
|
bond issued on or after the effective date of this Act. |
|
SECTION 7. This Act takes effect immediately if it receives |
|
a vote of two-thirds of all the members elected to each house, as |
|
provided by Section 39, Article III, Texas Constitution. If this |
|
Act does not receive the vote necessary for immediate effect, this |
|
Act takes effect September 1, 2023. |