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A BILL TO BE ENTITLED
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AN ACT
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relating to the sale of bonds by certain special purpose districts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 49.183, Texas Water Code, is amended to |
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read as follows: |
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Sec. 49.183. BOND SALES.(a) Bonds issued by a district |
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shall be sold either by private sale or by public sale. |
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(b) Bonds sold by public sale shall be competitively bid and |
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awarded to the bidder whose bid produces the lowest net effective |
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interest rate to the district. |
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(c) Before any bonds are sold by a district pursuant to |
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competitive bid, the board shall publish an appropriate notice of |
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the sale: |
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(1) at least one time not less than 10 days before the |
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date of sale in a newspaper of general circulation in the county or |
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counties in which the district is located; and |
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(2) at least one time in one or more recognized |
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financial publications of general circulation in the state as |
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approved by the state attorney general. |
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(d) Before issuing its bonds by private sale, the board |
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shall review with its financial adviser the process of selling its |
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bonds by public or private sale and make a determination that |
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selling its bonds by private sale will result in a net effective |
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interest rate to the district equal to or less than it will |
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accomplish by public sale. |
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(e) In connection with the issuance of bonds by private |
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sale, the governing body of a district may: |
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(1) authorize the principal amount of bonds that may |
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be issued, principal amount to mature each year, and maximum rate of |
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interest to be borne by the bonds, and any other detail the |
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governing body deems relevant to the issuance of the bonds; and |
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(2) delegate to any officer or director of the issuer |
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the authority to effect the sale of the bonds. |
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(f) In exercising the authority delegated by the governing |
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body, a director or officer may establish the terms and details |
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related to the issuance and sale of the bonds, including |
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(1) the form of the bonds; |
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(2) the principal amount of the bonds and the amount |
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of the bonds to mature each year; |
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(3) the dates, price, interest rates, interest |
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payment dates, principal payment dates, and redemption feature of |
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the bonds; and |
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(4) any other detail relating to the issuance and sale |
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of the bonds as specified by the governing body of the issuer in the |
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proceedings authorizing the issuance of the bonds. |
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(g) At the time the district enters into a contract to sell |
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its bonds by private sale, the district's financial advisor shall |
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review with the board, or its authorized representative, other |
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recently completed sales of district bonds, including the net |
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effective interest rate thereon and issuance costs. |
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(h) A finding or determination made by a director or officer |
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acting under the authority delegated to such director or officer |
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has the same force and effect as a finding or determination made by |
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the governing body of the district. |
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(i) A district's bonds are negotiable instruments within |
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the meaning and purposes of the Business & Commerce Code. A |
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district's bonds may be issued and bear interest in accordance with |
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Chapters 1201, 1204, and 1371, Government Code, and Subchapters |
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A-C, Chapter 1207, Government Code. Except for this subsection, |
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this section does not apply to special water authorities or |
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districts described in Section 49.181(h)(1)(D). |
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SECTION 2. 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. |