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A BILL TO BE ENTITLED
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AN ACT
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relating to the issuance of bonds by certain local government |
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corporations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 431.003(3), Transportation Code, is |
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amended to read as follows: |
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(3) "Local government" means: |
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(A) a municipality; |
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(B) a county; or |
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(C) for purposes of Subchapter D or D-1: |
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(i) a navigation district, hospital |
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district, or hospital authority; |
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(ii) a regional transportation authority |
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governed by Chapter 452; |
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(iii) a rapid transit authority governed by |
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Chapter 451; or |
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(iv) a coordinated county transportation |
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authority governed by Chapter 460. |
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SECTION 2. Section 431.070(a), Transportation Code, is |
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amended to read as follows: |
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(a) Subject to Subchapter D-1, a [A] corporation may issue |
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bonds and notes to carry out its purpose. |
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SECTION 3. Section 431.101(b), Transportation Code, is |
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amended to read as follows: |
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(b) Except as provided by Subchapter D-1, a [A] local |
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government corporation has the powers of a corporation authorized |
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for creation by the commission under this chapter. |
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SECTION 4. Chapter 431, Transportation Code, is amended by |
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adding Subchapter D-1 to read as follows: |
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SUBCHAPTER D-1. ISSUANCE OF BONDS BY CERTAIN LOCAL GOVERNMENT |
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CORPORATIONS CREATED BY MUNICIPALITIES OR COUNTIES |
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Sec. 431.120. APPLICABILITY OF SUBCHAPTER. This subchapter |
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applies to a local government corporation created by a municipality |
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or county independently or with another local government that has |
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entered into an agreement with a municipality or county for the |
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transfer to the corporation of revenue from ad valorem taxes that |
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were approved by the voters of the municipality or county under |
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Section 26.07, Tax Code. |
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Sec. 431.121. DEFINITION. In this subchapter, "bond" |
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includes a note, revenue bond, or loan. |
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Sec. 431.122. BOND ELECTION REQUIRED. (a) Notwithstanding |
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any other law, a local government corporation may not issue bonds, |
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other than refunding bonds, to be paid wholly or partly from ad |
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valorem taxes transferred from a municipality or county to the |
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corporation that were approved by the voters of the municipality or |
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county under Section 26.07, Tax Code, unless the corporation is |
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first authorized to issue bonds under this subchapter by the voters |
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of the municipality or county in an election held by the |
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municipality or county for that purpose. |
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(b) Bonds authorized under this subchapter to finance a |
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project may be issued in one or more series. |
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(c) An election held for purposes of this section must be: |
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(1) conducted as provided by Section 1251.003, |
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Government Code; and |
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(2) held in the municipality or county on the uniform |
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election date in November. |
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Sec. 431.123. FORM OF BALLOT. (a) The ballot proposition |
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for a measure seeking voter approval for issuance of bonds under |
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this subchapter must include: |
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(1) a plain language description of the purposes for |
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which the bonds are to be authorized; |
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(2) the principal amount not to be exceeded in the |
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aggregate of the bonds authorized to be issued in one or more |
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series; |
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(3) the maximum maturity date of the bonds to be |
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authorized, not to exceed 40 years; and |
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(4) that the principal of and interest on the bonds |
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will be wholly or partly paid from funds received pursuant to an |
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agreement with the municipality or county for the transfer of ad |
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valorem taxes approved by the voters of the municipality or county |
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under Section 26.07, Tax Code. |
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(b) A proposition may include as a purpose one or more |
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structures or improvements serving the substantially same purpose |
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and may include related improvements and equipment necessary to |
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accomplish the purpose. |
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(c) The result of an election held under this subchapter |
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does not affect the result of a prior election held under Section |
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26.07, Tax Code. |
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Sec. 431.124. CONDITION OF BONDS. A bond authorized to be |
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issued under this subchapter may not mature more than 40 years after |
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the date the bond was issued. |
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SECTION 5. Section 1207.001(1), Government Code, is amended |
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to read as follows: |
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(1) "Issuer" means this state or any department, |
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board, authority, agency, subdivision, municipal corporation, |
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district, public corporation, body politic, or instrumentality of |
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this state which has the power to borrow money and issue bonds, |
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notes, or other evidences of indebtedness. The term includes a |
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county, municipality, state-supported institution of higher |
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education, junior college district, regional college district, |
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school district, hospital district, water district, road district, |
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navigation district, conservation district, local government |
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corporation, and any other kind or type of political or |
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governmental entity. |
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SECTION 6. The change in law made by Subchapter D-1, Chapter |
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431, Transportation Code, as added by this Act, applies only to a |
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bond issued on or after the effective date of this Act. |
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SECTION 7. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2023. |
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* * * * * |