By Wolens H.B. No. 3157
76R5344 ESH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the adoption of a nonsubstantive revision of statutes
1-3 relating to public securities, including conforming amendments,
1-4 repeals, and penalties.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. ADOPTION OF PUBLIC SECURITIES TITLE. The
1-7 Government Code is amended by adding Title 9 to read as follows:
1-8 TITLE 9. PUBLIC SECURITIES
1-9 SUBTITLE A. GENERAL PROVISIONS
1-10 CHAPTER 1201. PUBLIC SECURITY PROCEDURES ACT
1-11 CHAPTER 1202. EXAMINATION AND REGISTRATION OF PUBLIC
1-12 SECURITIES
1-13 CHAPTER 1203. REGISTRAR FOR PUBLIC SECURITY
1-14 CHAPTER 1204. INTEREST RATE
1-15 CHAPTER 1205. PUBLIC SECURITY DECLARATORY JUDGMENT ACTIONS
1-16 CHAPTER 1206. REPLACEMENT FOR DAMAGED, DESTROYED, LOST,
1-17 OR STOLEN PUBLIC SECURITIES
1-18 CHAPTER 1207. REFUNDING BONDS
1-19 (Chapters 1208-1230 reserved for expansion)
1-20 SUBTITLE B. PROVISIONS APPLICABLE TO SECURITIES
1-21 ISSUED BY STATE GOVERNMENT
1-22 CHAPTER 1231. BOND REVIEW BOARD
1-23 CHAPTER 1232. TEXAS PUBLIC FINANCE AUTHORITY
1-24 CHAPTER 1233. COLLEGE OPPORTUNITY ACT
2-1 (Chapters 1234-1250 reserved for expansion)
2-2 SUBTITLE C. PROVISIONS APPLICABLE TO SECURITIES ISSUED
2-3 BY MORE THAN ONE TYPE OF LOCAL GOVERNMENT
2-4 CHAPTER 1251. BOND ELECTIONS
2-5 CHAPTER 1252. REVOCATION OF AUTHORITY TO ISSUE BONDS
2-6 CHAPTER 1253. BOND AND WARRANT LAW
2-7 (Chapters 1254-1300 reserved for expansion)
2-8 SUBTITLE D. PROVISIONS APPLICABLE TO SECURITIES
2-9 ISSUED BY COUNTIES
2-10 CHAPTER 1301. COUNTY BONDS
2-11 CHAPTER 1302. DESTRUCTION OF COUNTY SECURITY
2-12 (Chapters 1303-1330 reserved for expansion)
2-13 SUBTITLE E. PROVISIONS APPLICABLE TO SECURITIES
2-14 ISSUED BY MUNICIPALITIES
2-15 CHAPTER 1331. MUNICIPAL BONDS
2-16 CHAPTER 1332. USE OF MUNICIPAL BOND PROCEEDS FOR OTHER
2-17 PURPOSES
2-18 CHAPTER 1333. REVOCATION OF UNSOLD MUNICIPAL BONDS BY PETITION
2-19 (Chapters 1334-1370 reserved for expansion)
2-20 SUBTITLE F. SPECIFIC AUTHORITY FOR STATE OR
2-21 LOCAL GOVERNMENT TO ISSUE SECURITIES
2-22 CHAPTER 1371. OBLIGATIONS FOR CERTAIN PUBLIC IMPROVEMENTS
2-23 CHAPTER 1372. PRIVATE ACTIVITY BONDS
2-24 (Chapters 1373-1400 reserved for expansion)
3-1 SUBTITLE G. SPECIFIC AUTHORITY
3-2 FOR STATE GOVERNMENT TO ISSUE SECURITIES
3-3 CHAPTER 1401. BONDS FOR CERTAIN CRIMINAL JUSTICE OR MENTAL
3-4 HEALTH AND MENTAL RETARDATION FACILITIES
3-5 CHAPTER 1402. PUBLIC SCHOOL FACILITIES FUNDING ACT
3-6 (Chapters 1403-1430 reserved for expansion)
3-7 SUBTITLE H. SPECIFIC AUTHORITY FOR MORE THAN ONE
3-8 TYPE OF LOCAL GOVERNMENT TO ISSUE SECURITIES
3-9 CHAPTER 1431. ANTICIPATION NOTES
3-10 CHAPTER 1432. BONDS FOR LOCAL GOVERNMENT SPORTS CENTERS
3-11 CHAPTER 1433. BONDS FOR DEVELOPMENT OF EMPLOYMENT, INDUSTRIAL,
3-12 AND HEALTH RESOURCES
3-13 CHAPTER 1434. COUNTY AND MUNICIPAL HIGHER EDUCATION
3-14 IMPROVEMENT BONDS
3-15 CHAPTER 1435. BONDS FOR PARKS AND FAIRGROUND FACILITIES IN
3-16 CERTAIN MUNICIPALITIES AND COUNTIES
3-17 (Chapters 1436-1470 reserved for expansion)
3-18 SUBTITLE I. SPECIFIC AUTHORITY FOR COUNTIES
3-19 TO ISSUE SECURITIES
3-20 CHAPTER 1471. BONDS FOR COUNTY ROADS
3-21 CHAPTER 1472. REFUNDING OF COUNTY BONDS FOR CAUSEWAYS
3-22 CHAPTER 1473. OBLIGATIONS FOR COUNTY BUILDINGS
3-23 CHAPTER 1474. BONDS FOR COUNTY WATER IMPROVEMENTS
3-24 CHAPTER 1475. COUNTY BONDS AND WARRANTS FOR NAVIGATION PURPOSES
3-25 CHAPTER 1476. CERTIFICATES OF INDEBTEDNESS IN COUNTIES WITH
3-26 POPULATION OF MORE THAN 1.5 MILLION
3-27 CHAPTER 1477. OBLIGATIONS FOR OTHER COUNTY PURPOSES
4-1 (Chapters 1478-1500 reserved for expansion)
4-2 SUBTITLE J. SPECIFIC AUTHORITY FOR MUNICIPALITIES
4-3 TO ISSUE SECURITIES
4-4 CHAPTER 1501. OBLIGATIONS FOR MUNICIPAL UTILITIES
4-5 CHAPTER 1502. OBLIGATIONS FOR MUNICIPAL UTILITIES, PARKS, OR
4-6 POOLS
4-7 CHAPTER 1503. OBLIGATIONS FOR MUNICIPAL AIRPORTS
4-8 CHAPTER 1504. OBLIGATIONS FOR MUNICIPAL BUILDINGS
4-9 CHAPTER 1505. OBLIGATIONS FOR COASTAL MUNICIPALITIES FOR
4-10 COASTAL MATTERS
4-11 CHAPTER 1506. BONDS FOR MUNICIPAL PARKING AND TRANSPORTATION
4-12 FACILITIES
4-13 CHAPTER 1507. OBLIGATIONS RELATING TO MUNICIPAL DEBT AND
4-14 EXPENSES
4-15 CHAPTER 1508. OBLIGATIONS FOR MUNICIPAL PARKS, RECREATIONAL
4-16 FACILITIES, AND AIRPORTS
4-17 CHAPTER 1509. OBLIGATIONS FOR OTHER MUNICIPAL PURPOSES
4-18 TITLE 9. PUBLIC SECURITIES
4-19 SUBTITLE A. GENERAL PROVISIONS
4-20 CHAPTER 1201. PUBLIC SECURITY PROCEDURES ACT
4-21 SUBCHAPTER A. GENERAL PROVISIONS
4-22 Sec. 1201.001. SHORT TITLE
4-23 Sec. 1201.002. DEFINITIONS
4-24 Sec. 1201.003. APPLICABILITY
4-25 Sec. 1201.004. CONSTRUCTION
4-26 Sec. 1201.005. CONTENTS OF PUBLIC SECURITY AUTHORIZATION
4-27 (Sections 1201.006-1201.020 reserved for expansion)
5-1 SUBCHAPTER B. ISSUANCE AND APPROVAL OF PUBLIC SECURITY
5-2 Sec. 1201.021. CHARACTERISTICS OF PUBLIC SECURITY
5-3 Sec. 1201.022. TERMS OF ISSUANCE
5-4 Sec. 1201.023. UNCERTIFICATED BOOK-ENTRY ISSUANCE
5-5 Sec. 1201.024. FORM OF PUBLIC SECURITY
5-6 Sec. 1201.025. RATE OF INTEREST
5-7 Sec. 1201.026. EXECUTION OF PUBLIC SECURITY OR INTEREST
5-8 COUPON
5-9 Sec. 1201.027. AUTHORITY OF POLITICAL SUBDIVISION OR
5-10 MUNICIPAL CORPORATION TO CONTRACT FOR
5-11 SERVICES
5-12 (Sections 1201.028-1201.040 reserved for expansion)
5-13 SUBCHAPTER C. FINANCIAL ASPECTS OF PUBLIC SECURITY
5-14 Sec. 1201.041. PUBLIC SECURITY AS NEGOTIABLE INSTRUMENT AND
5-15 INVESTMENT SECURITY
5-16 Sec. 1201.042. USE OF CERTAIN PROCEEDS
5-17 Sec. 1201.043. USE OF INVESTMENT INCOME
5-18 Sec. 1201.044. PLEDGE OR LIEN ON RESOURCES, ASSETS, OR FUND
5-19 OF ISSUER
5-20 (Sections 1201.045-1201.060 reserved for expansion)
5-21 SUBCHAPTER D. CHANGE OR CONVERSION OF PUBLIC SECURITIES
5-22 Sec. 1201.061. CONVERSION, RECONVERSION, TRANSFER, OR EXCHANGE OF
5-23 PUBLIC SECURITY
5-24 Sec. 1201.062. CHANGE OR CONVERSION OF PUBLIC SECURITY
5-25 Sec. 1201.063. EXECUTION AND EXCHANGE OF NEW PUBLIC
5-26 SECURITY
6-1 Sec. 1201.064. SUBMISSION OF NEW PUBLIC SECURITY TO ATTORNEY
6-2 GENERAL
6-3 Sec. 1201.065. APPROVAL OF NEW PUBLIC SECURITY BY ATTORNEY
6-4 GENERAL
6-5 Sec. 1201.066. REGISTRATION OF NEW PUBLIC SECURITY BY
6-6 COMPTROLLER
6-7 Sec. 1201.067. EXCEPTION TO APPROVAL REQUIREMENT
6-8 CHAPTER 1201. PUBLIC SECURITY PROCEDURES ACT
6-9 SUBCHAPTER A. GENERAL PROVISIONS
6-10 Sec. 1201.001. SHORT TITLE. This chapter may be cited as
6-11 the Public Security Procedures Act. (V.A.C.S. Art. 717k-6, Sec.
6-12 1(c).)
6-13 Sec. 1201.002. DEFINITIONS. In this chapter:
6-14 (1) "Issuer" means:
6-15 (A) an agency, authority, board, body politic,
6-16 department, district, instrumentality, municipal corporation,
6-17 political subdivision, public corporation, or subdivision of this
6-18 state; or
6-19 (B) a nonprofit corporation acting for or on
6-20 behalf of an entity described by Paragraph (A).
6-21 (2) "Public security" means an instrument, including a
6-22 bond, certificate, note, or other type of obligation authorized to
6-23 be issued by an issuer under a statute, a municipal home-rule
6-24 charter, or the constitution of this state.
6-25 (3) "Public security authorization" means a
6-26 resolution, order, or ordinance that is approved or adopted, or any
6-27 other action taken in a proceeding, by the governing body of an
7-1 issuer in authorizing the issuance of a public security. (V.A.C.S.
7-2 Art. 717k-6, Secs. 1(a), (b); Art. 717k-9, Sec. 1; New.)
7-3 Sec. 1201.003. APPLICABILITY. This chapter applies to:
7-4 (1) an original public security;
7-5 (2) a refunding public security;
7-6 (3) an exchanged or converted public security; or
7-7 (4) any combination of those securities. (V.A.C.S.
7-8 Art. 717k-6, Sec. 2 (part).)
7-9 Sec. 1201.004. CONSTRUCTION. This chapter shall be
7-10 liberally construed to achieve the legislative intent and purposes
7-11 of this chapter. A power granted by this chapter shall be broadly
7-12 interpreted to achieve that intent and those purposes. (V.A.C.S.
7-13 Art. 717k-6, Sec. 10.)
7-14 Sec. 1201.005. CONTENTS OF PUBLIC SECURITY AUTHORIZATION.
7-15 To the extent applicable to an authorized public security, the
7-16 public security authorization for the public security must contain
7-17 each item or other matter authorized or described by Subchapter B
7-18 and Sections 1201.061 and 1201.063. (V.A.C.S. Art. 715b, Secs.
7-19 3(a) (part), (b) (part); Art. 717k-6, Secs. 3 (part); 4 (part);
7-20 5(a) (part), (b) (part); 6(a) (part), (b) (part).)
7-21 (Sections 1201.006-1201.020 reserved for expansion)
7-22 SUBCHAPTER B. ISSUANCE AND APPROVAL OF PUBLIC SECURITY
7-23 Sec. 1201.021. CHARACTERISTICS OF PUBLIC SECURITY. A public
7-24 security may:
7-25 (1) be issued in any denomination;
7-26 (2) bear no interest or bear interest at one or more
7-27 specified rates;
8-1 (3) be issued with one or more interest coupons or
8-2 without a coupon;
8-3 (4) be issued as redeemable before maturity at one or
8-4 more specified times; and
8-5 (5) be payable:
8-6 (A) at one or more times;
8-7 (B) in installments or a specified amount or
8-8 amounts;
8-9 (C) at a specified place or places;
8-10 (D) under specified terms; and
8-11 (E) in a specified form or manner. (V.A.C.S.
8-12 Art. 717k-6, Sec. 3 (part).)
8-13 Sec. 1201.022. TERMS OF ISSUANCE. (a) A public security
8-14 may be:
8-15 (1) issued singly or in a series;
8-16 (2) made payable in a specified amount or amounts or
8-17 installments to:
8-18 (A) the bearer;
8-19 (B) a registered or named person;
8-20 (C) the order of a registered or named person;
8-21 or
8-22 (D) a successor or assign of a registered or
8-23 named person; and
8-24 (3) issued with other specified characteristics, on
8-25 additional specified terms, or in a specified manner.
8-26 (b) The governing body of a county or municipality that
8-27 issues bonds that are to be paid from ad valorem taxes may provide
9-1 that the bonds are to mature serially over a specified number of
9-2 years, not to exceed 40. (V.A.C.S. Art. 706; Art. 717k-6, Sec.
9-3 5(a) (part).)
9-4 Sec. 1201.023. UNCERTIFICATED BOOK-ENTRY ISSUANCE. (a) The
9-5 governing body of an issuer may provide for a book-entry record of
9-6 ownership of a public security issued by the issuer. A public
9-7 security may be issued in uncertificated book-entry form.
9-8 (b) The record of ownership of a public security issued in
9-9 uncertificated book-entry form may be kept by the issuer or an
9-10 agent of the issuer. (V.A.C.S. Art. 717k-6, Sec. 5(b) (part).)
9-11 Sec. 1201.024. FORM OF PUBLIC SECURITY. (a) A public
9-12 security may be:
9-13 (1) issued in a specified form or forms;
9-14 (2) issued with one or more interest coupons;
9-15 (3) registrable as to principal and interest or only
9-16 as to principal; and
9-17 (4) changed in form in a specific manner.
9-18 (b) A public security issued with one or more interest
9-19 coupons may have:
9-20 (1) a specified form of a coupon; and
9-21 (2) a form of a coupon that may be changed in a
9-22 specified manner.
9-23 (c) An issuer may provide that a public security:
9-24 (1) has a coupon and is not registrable;
9-25 (2) has a coupon and is registrable only as to
9-26 principal;
9-27 (3) is fully registrable; or
10-1 (4) initially has a coupon but may become a fully
10-2 registrable security under Section 1203.041.
10-3 (d) An issuer may provide that public securities of the same
10-4 issue or series are:
10-5 (1) of one or more types described by Subsection (c);
10-6 and
10-7 (2) exchangeable in whole or in part for one or more
10-8 of those types. (V.A.C.S. Art. 715b, Secs. 3(a) (part), (b) (part);
10-9 Art. 717k-6, Sec. 4 (part).)
10-10 Sec. 1201.025. RATE OF INTEREST. (a) An interest rate on a
10-11 public security that accrues interest may be fixed, variable,
10-12 floating, adjustable, or computed by another method.
10-13 (b) If an interest rate is not specified by the governing
10-14 body of an issuer issuing a public security, the interest rate is
10-15 determined by a formula or contractual arrangement for the periodic
10-16 determination of the rate. (V.A.C.S. Art. 717k-6, Sec. 3 (part).)
10-17 Sec. 1201.026. EXECUTION OF PUBLIC SECURITY OR INTEREST
10-18 COUPON. (a) A public security or an interest coupon may be
10-19 executed, with or without a seal, with a manual or facsimile
10-20 signature.
10-21 (b) The signature on a public security or on an interest
10-22 coupon of a person who is no longer an officer when the security or
10-23 coupon is delivered to a purchaser is valid and sufficient for all
10-24 purposes.
10-25 (c) A person's successor in office may complete the
10-26 execution, authentication, or delivery of the public security or
10-27 interest coupon. (V.A.C.S. Art. 717k-6, Sec. 3 (part).)
11-1 Sec. 1201.027. AUTHORITY OF POLITICAL SUBDIVISION OR
11-2 MUNICIPAL CORPORATION TO CONTRACT FOR SERVICES. (a) The governing
11-3 body of a home-rule municipality or other political subdivision or
11-4 municipal corporation of this state or of an instrumentality of
11-5 such an entity has exclusive authority to select and contract with
11-6 a person to provide a service in connection with a public security
11-7 being issued, including legal counsel, an underwriter, or a
11-8 financial advisor.
11-9 (b) To the extent of a conflict between this section and
11-10 another law or a municipal charter, this section controls.
11-11 (V.A.C.S. Art. 717k-6, Sec. 3A (part); Art. 717k-8, Sec. 3.002(g).)
11-12 (Sections 1201.028-1201.040 reserved for expansion)
11-13 SUBCHAPTER C. FINANCIAL ASPECTS OF PUBLIC SECURITY
11-14 Sec. 1201.041. PUBLIC SECURITY AS NEGOTIABLE INSTRUMENT AND
11-15 INVESTMENT SECURITY. A public security is:
11-16 (1) a negotiable instrument;
11-17 (2) an investment security to which Chapter 8,
11-18 Business & Commerce Code, applies; and
11-19 (3) a legal and authorized investment for:
11-20 (A) an insurance company;
11-21 (B) a fiduciary or trustee; or
11-22 (C) a sinking fund of a municipality or other
11-23 political subdivision or public agency of this state. (V.A.C.S.
11-24 Art. 717k-6, Sec. 9 (part).)
11-25 Sec. 1201.042. USE OF CERTAIN PROCEEDS. (a) If an issuer is
11-26 authorized by law to secure and pay any portion of a public
11-27 security with revenue derived from the ownership or operation of a
12-1 project or facility, the issuer may use the proceeds of the public
12-2 security to:
12-3 (1) pay interest on the public security while the
12-4 project or facility is being acquired or constructed and for the
12-5 year after it is acquired or constructed;
12-6 (2) operate and maintain the project or facility
12-7 during the estimated period of acquisition or construction of the
12-8 project or facility and for one year after it is acquired or
12-9 constructed;
12-10 (3) finance other funds relating to the public
12-11 security, including debt service reserve and contingency; and
12-12 (4) pay the cost or expense of the issuance of the
12-13 public security.
12-14 (b) To the extent and in the manner provided in a public
12-15 security authorization, until the proceeds from a public security
12-16 described by Subsection (a) are needed the proceeds may be:
12-17 (1) placed on time deposit; or
12-18 (2) invested in an obligation authorized for the
12-19 investment of money of the issuer.
12-20 (c) Proceeds from the sale of a public security issued to
12-21 finance the acquisition, construction, equipping, or furnishing of
12-22 a project or facility may be used to reimburse the issuer for a
12-23 cost that is:
12-24 (1) attributable to the project or facility; and
12-25 (2) paid or incurred before the date of the public
12-26 security's issuance. (V.A.C.S. Art. 717k-6, Sec. 7.)
12-27 Sec. 1201.043. USE OF INVESTMENT INCOME. An issuer
13-1 authorized to invest proceeds from the sale of a public security,
13-2 including by placing the proceeds on time deposit, may use money
13-3 earned from the investment for the purpose for which the public
13-4 security was issued. (V.A.C.S. Art. 717k-9, Sec. 2.)
13-5 Sec. 1201.044. PLEDGE OR LIEN ON RESOURCES, ASSETS, OR FUND
13-6 OF ISSUER. (a) A pledge or lien provided for in a public security
13-7 authorization on a resource of an issuer, including revenue or
13-8 income, on an asset of an issuer, or on a fund maintained by an
13-9 issuer:
13-10 (1) is valid without further action by the issuer
13-11 according to its terms and without being filed or recorded, except
13-12 in the records of the issuer;
13-13 (2) is effective from the time of payment for and
13-14 delivery of the public security until the public security is paid
13-15 or payment of the public security has been provided for; and
13-16 (3) is effective as to an item on hand or later
13-17 received, and the item is subject to the lien or pledge without
13-18 physical delivery of the item or other act.
13-19 (b) This section does not exempt an issuer from a duty to:
13-20 (1) record a lien on real property; or
13-21 (2) submit a public security to the attorney general
13-22 for approval and registration by the comptroller. (V.A.C.S.
13-23 Art. 717k-6, Sec. 12.)
13-24 (Sections 1201.045-1201.060 reserved for expansion)
13-25 SUBCHAPTER D. CHANGE OR CONVERSION OF PUBLIC SECURITIES
13-26 Sec. 1201.061. CONVERSION, RECONVERSION, TRANSFER, OR
13-27 EXCHANGE OF PUBLIC SECURITY. (a) The governing body of an issuer
14-1 may:
14-2 (1) provide and covenant for:
14-3 (A) conversion of one form of a public security
14-4 or an interest coupon to another form or forms; and
14-5 (B) reconversion of the public security or
14-6 interest coupon to another form or forms; and
14-7 (2) provide procedures for transferring or exchanging
14-8 a public security for a previously issued public security.
14-9 (b) A public security or an interest coupon may be
14-10 converted, on request of a bearer or owner, in an aggregate
14-11 principal amount equal to the unpaid principal amount of the public
14-12 security being converted, bearing interest at the same rate or
14-13 rates as the security being converted, to:
14-14 (1) a public security with interest coupons, payable
14-15 to the bearer, and registrable as to principal and interest or only
14-16 as to principal;
14-17 (2) a fully registered public security without
14-18 interest coupons; or
14-19 (3) any other form, in any denomination. (V.A.C.S.
14-20 Art. 717k-6, Secs. 5(a) (part), 6(b) (part).)
14-21 Sec. 1201.062. CHANGE OR CONVERSION OF PUBLIC SECURITY. If
14-22 a public security authorization provides a procedure for changing
14-23 or converting a public security, an additional resolution, order,
14-24 or ordinance is not required to change or convert the security.
14-25 (V.A.C.S. Art. 717k-6, Sec. 6(a) (part).)
14-26 Sec. 1201.063. EXECUTION AND EXCHANGE OF NEW PUBLIC
14-27 SECURITY. (a) On request of the bearer or owner of a public
15-1 security, if required or necessary, an appropriate officer of the
15-2 issuer shall execute and exchange an appropriate new public
15-3 security for the changed or converted public security.
15-4 (b) If a public security that is changed or converted has
15-5 interest coupons, appropriate new coupons shall also be executed
15-6 and exchanged. (V.A.C.S. Art. 717k-6, Sec. 6(a) (part).)
15-7 Sec. 1201.064. SUBMISSION OF NEW PUBLIC SECURITY TO ATTORNEY
15-8 GENERAL. Except as provided by Section 1201.067, an issuer that
15-9 changes or converts a public security that has been registered by
15-10 the comptroller shall submit the new public security to the
15-11 attorney general for approval. (V.A.C.S. Art. 717k-6, Sec. 6(a)
15-12 (part).)
15-13 Sec. 1201.065. APPROVAL OF NEW PUBLIC SECURITY BY ATTORNEY
15-14 GENERAL. The attorney general shall approve a new public security
15-15 if the attorney general finds that the new public security has been
15-16 printed or entered on the books of the registrar and executed and
15-17 issued as provided by law and a public security authorization
15-18 relating to the public security being changed or converted.
15-19 (V.A.C.S. Art. 717k-6, Sec. 6(a) (part).)
15-20 Sec. 1201.066. REGISTRATION OF NEW PUBLIC SECURITY BY
15-21 COMPTROLLER. (a) The comptroller shall register and deliver a new
15-22 public security after:
15-23 (1) approval of the new public security by the
15-24 attorney general; and
15-25 (2) the surrender to and the cancellation by the
15-26 comptroller of each changed or converted public security.
15-27 (b) On registration the new public security is valid and
16-1 incontestable for all purposes. (V.A.C.S. Art. 717k-6, Sec. 6(a)
16-2 (part).)
16-3 Sec. 1201.067. EXCEPTION TO APPROVAL REQUIREMENT. (a) If
16-4 the duty to convert or reconvert a public security or interest
16-5 coupon or to transfer or exchange a public security is imposed on a
16-6 corporate trustee under a trust agreement or indenture securing the
16-7 public security or on a paying agent for the public security, the
16-8 attorney general is not required to approve and the comptroller is
16-9 not required to register:
16-10 (1) the converted or reconverted public security or
16-11 interest coupon; or
16-12 (2) the public security delivered on transfer or
16-13 exchange of the previously issued public security.
16-14 (b) A converted or reconverted public security or interest
16-15 coupon, or a transferred or exchanged public security, is valid and
16-16 incontestable in the same manner and with the same effect as the
16-17 previously issued public security. (V.A.C.S. Art. 717k-6, Sec.
16-18 6(b) (part).)
16-19 CHAPTER 1202. EXAMINATION AND REGISTRATION OF PUBLIC SECURITIES
16-20 Sec. 1202.001. DEFINITIONS
16-21 Sec. 1202.002. AUTHORITY TO DEFINE TERMS
16-22 Sec. 1202.003. REVIEW AND APPROVAL OF PUBLIC SECURITIES
16-23 Sec. 1202.004. FEE FOR EXAMINATION OF PUBLIC SECURITY
16-24 BY ATTORNEY GENERAL
16-25 Sec. 1202.005. REGISTRATION
16-26 Sec. 1202.006. VALIDITY AND INCONTESTABILITY
16-27 Sec. 1202.007. EXEMPTIONS; CONSTRUCTION OF EXEMPTIONS
17-1 Sec. 1202.008. COLLECTION AND REPORT OF INFORMATION ON
17-2 PUBLIC SECURITIES OF POLITICAL SUBDIVISIONS
17-3 CHAPTER 1202. EXAMINATION AND REGISTRATION OF PUBLIC SECURITIES
17-4 Sec. 1202.001. DEFINITIONS. In this chapter:
17-5 (1) "Issuance" means the initial delivery by an issuer
17-6 of evidence of an obligation of a public security issued by the
17-7 issuer to the initial purchaser in exchange for the purchase price
17-8 of the public security.
17-9 (2) "Issuer" means:
17-10 (A) an agency, authority, board, body politic,
17-11 department, district, instrumentality, municipal corporation,
17-12 political subdivision, public corporation, or subdivision of this
17-13 state; or
17-14 (B) a nonprofit corporation acting for or on
17-15 behalf of an entity described by Paragraph (A).
17-16 (3) "Public security" means an instrument, including a
17-17 bond, note, certificate of obligation, certificate of participation
17-18 or other instrument evidencing a proportionate interest in payments
17-19 due to be paid by an issuer, or other type of obligation that:
17-20 (A) is issued or incurred by an issuer under the
17-21 issuer's borrowing power, without regard to whether it is subject
17-22 to annual appropriation; and
17-23 (B) is represented by an instrument issued in
17-24 bearer or registered form or is not represented by an instrument
17-25 but the transfer of which is registered on books maintained for
17-26 that purpose by or on behalf of the issuer.
17-27 (4) "Record of proceedings" means the record of an
18-1 issuer's proceedings relating to the authorization of a public
18-2 security. (V.A.C.S. Art. 717k-8, Sec. 3.001(a); New.)
18-3 Sec. 1202.002. AUTHORITY TO DEFINE TERMS. The attorney
18-4 general may determine, by application of accepted legal principles,
18-5 the meaning of a term used in this chapter, other than "issuance,"
18-6 "issuer," or "public security," and by rule define that term.
18-7 (V.A.C.S. Art. 717k-8, Sec. 3.001(b).)
18-8 Sec. 1202.003. REVIEW AND APPROVAL OF PUBLIC SECURITIES.
18-9 (a) Before the issuance of a public security, the issuer shall
18-10 submit the public security and the record of proceedings to the
18-11 attorney general.
18-12 (b) If the attorney general finds that the public security
18-13 has been authorized to be issued in conformity with law, the
18-14 attorney general shall:
18-15 (1) approve the public security; and
18-16 (2) deliver to the comptroller:
18-17 (A) a copy of the attorney general's legal
18-18 opinion stating that approval; and
18-19 (B) the record of proceedings.
18-20 (c) Unless exempted by Section 1202.007, the issuance of a
18-21 public security except in compliance with this chapter is
18-22 prohibited. (V.A.C.S. Art. 717k-8, Secs. 3.002(a), (b), 3.003(b)
18-23 (part), 3.004; Art. 4398.)
18-24 Sec. 1202.004. FEE FOR EXAMINATION OF PUBLIC SECURITY BY
18-25 ATTORNEY GENERAL. (a) Except as provided by this section, when an
18-26 issuer submits a public security to the attorney general for
18-27 examination and approval as provided by law, the issuer shall pay a
19-1 nonrefundable examination fee to the attorney general, in an amount
19-2 computed according to the principal amount of the public security,
19-3 as follows:
19-4 Principal Amount Fee
19-5 not more than $500,000 $500
19-6 more than $500,000 but not more than $5 million $750
19-7 more than $5 million but not more than $20 million $1,000
19-8 more than $20 million $1,250
19-9 (b) If a nonprofit corporation or governmental entity
19-10 issuing the public security for the benefit of nongovernmental
19-11 entities submits the public security to the attorney general as
19-12 required by law, the fee is $1,250.
19-13 (c) If the issuer is issuing multiple series of a single
19-14 public security, the issuer shall pay the fee prescribed by
19-15 Subsection (a) or (b) for each series, not to exceed $2,500 for one
19-16 issue in which all series are issued simultaneously. (V.A.C.S.
19-17 Art. 717k-6, Secs. 6A(a), (b), (c), (d) (part).)
19-18 Sec. 1202.005. REGISTRATION. On receipt of documents
19-19 required by Section 1202.003(b)(2) from the attorney general, the
19-20 comptroller shall register:
19-21 (1) the public security; and
19-22 (2) the record of proceedings. (V.A.C.S. Art. 710;
19-23 Art. 711 (part); Art. 717k-8, Sec. 3.002(c).)
19-24 Sec. 1202.006. VALIDITY AND INCONTESTABILITY. (a) A public
19-25 security and any contract the proceeds of which are pledged to the
19-26 payment of the public security are valid and incontestable in a
19-27 court or other forum and are binding obligations for all purposes
20-1 according to their terms:
20-2 (1) after the public security is approved by the
20-3 attorney general and registered by the comptroller; and
20-4 (2) on issuance of the public security.
20-5 (b) In any action brought to enforce the collection of
20-6 county or municipal bonds that are payable from ad valorem taxes
20-7 and that have been approved by the attorney general and registered
20-8 by the comptroller, the certificate of the attorney general shall
20-9 be admitted as evidence of the validity of the bonds and the
20-10 interest coupons pertaining to the bonds. (V.A.C.S. Art. 715
20-11 (part); Art. 717k-6, Sec. 2 (part); Art. 717k-8, Sec. 3.002(d).)
20-12 Sec. 1202.007. EXEMPTIONS; CONSTRUCTION OF EXEMPTIONS.
20-13 (a) The following are exempt from the approval and registration
20-14 requirements of this chapter:
20-15 (1) a public security that is:
20-16 (A) not subject to mandatory renewal or renewal
20-17 at the option of any person, including the issuer, a holder, or a
20-18 bearer; and
20-19 (B) payable only out of:
20-20 (i) current revenues or taxes collected in
20-21 the year the public security is issued; or
20-22 (ii) the proceeds of other public
20-23 securities;
20-24 (2) a certificate in evidence of benefit assessments;
20-25 (3) a certificate of obligation, including a claim or
20-26 account that represents an undivided interest in a certificate of
20-27 obligation, that under Subchapter C, Chapter 271, Local Government
21-1 Code, an issuer is authorized to deliver to a contractor;
21-2 (4) a time warrant issued under Chapter 252 or 262,
21-3 Local Government Code;
21-4 (5) a public security authorized by Chapter 1371;
21-5 (6) a lease, lease-purchase, or installment sale
21-6 obligation, except as provided by Subsection (b); and
21-7 (7) a public security that by rule the attorney
21-8 general exempts because it is not practical to require approval
21-9 before the public security's issuance.
21-10 (b) A municipality with a population of less than 50,000 may
21-11 not for any purpose issue or have issued on its behalf an
21-12 installment sale obligation or lease-purchase obligation with a
21-13 principal amount of $1 million or more without complying with this
21-14 chapter, regardless of whether the obligation:
21-15 (1) is issued individually or in a series of related
21-16 transactions; or
21-17 (2) is issued without recourse to the municipality.
21-18 (c) The exemptions provided by Subsection (a) shall be
21-19 narrowly construed.
21-20 (d) An issuer that issues a public security that is exempt
21-21 under Subsection (a) may submit the public security to the attorney
21-22 general as provided by this chapter. (V.A.C.S. Art. 717k-8, Secs.
21-23 3.003(a), (b) (part), (c); Sec. 2256.056, Gov. Code.)
21-24 Sec. 1202.008. COLLECTION AND REPORT OF INFORMATION ON
21-25 PUBLIC SECURITIES OF POLITICAL SUBDIVISIONS. (a) In reviewing
21-26 public securities under this chapter, the attorney general may
21-27 collect, in the form required by the Bond Review Board, information
22-1 on public securities issued by a municipal corporation or political
22-2 subdivision of this state.
22-3 (b) The information must include:
22-4 (1) the terms of the public securities;
22-5 (2) the debt service payable on the public securities;
22-6 and
22-7 (3) other information required by the Bond Review
22-8 Board.
22-9 (c) The attorney general shall send the information to the
22-10 Bond Review Board for inclusion in the board's report of debt
22-11 statistics under Section 1231.062. (V.A.C.S. Art. 717k-8, Sec.
22-12 3.002(h).)
22-13 CHAPTER 1203. REGISTRAR FOR PUBLIC SECURITY
22-14 SUBCHAPTER A. GENERAL PROVISIONS
22-15 Sec. 1203.001. DEFINITIONS
22-16 Sec. 1203.002. EFFECT ON UNIFORM COMMERCIAL CODE
22-17 Sec. 1203.003. CONFLICT WITH MUNICIPAL CHARTER
22-18 (Sections 1203.004-1203.020 reserved for expansion)
22-19 SUBCHAPTER B. REGISTRATION OF PUBLIC SECURITY
22-20 Sec. 1203.021. REGISTRAR FOR PUBLIC SECURITY; DESIGNATION IN
22-21 PROCEEDINGS
22-22 Sec. 1203.022. REGISTRATION OF PUBLIC SECURITY; CONFLICT WITH
22-23 PUBLIC SECURITY AUTHORIZATION
22-24 Sec. 1203.023. MAINTENANCE OF REGISTRAR RECORDS BY TRUST COMPANY
22-25 OR COMMERCIAL BANK
22-26 Sec. 1203.024. CHANGE OF NAME OR ADDRESS OF REGISTERED OWNER
22-27 Sec. 1203.025. COST AND EXPENSES FOR REGISTRATION OR EXCHANGE OF
23-1 PUBLIC SECURITY
23-2 Sec. 1203.026. COMPTROLLER'S RULES AND FEE SCHEDULE
23-3 (Sections 1203.027-1203.040 reserved for expansion)
23-4 SUBCHAPTER C. CONVERSION OR EXCHANGE OF PUBLIC SECURITY
23-5 Sec. 1203.041. CONVERSION OF PUBLIC SECURITY
23-6 Sec. 1203.042. APPROVAL AND REGISTRATION OF CONVERTED OR
23-7 EXCHANGED PUBLIC SECURITY
23-8 CHAPTER 1203. REGISTRAR FOR PUBLIC SECURITY
23-9 SUBCHAPTER A. GENERAL PROVISIONS
23-10 Sec. 1203.001. DEFINITIONS. In this chapter:
23-11 (1) "Fully registrable," with respect to a public
23-12 security, means that:
23-13 (A) the principal of and interest on the public
23-14 security are payable only to the registered owner of the public
23-15 security;
23-16 (B) the principal of the public security is
23-17 payable on presentation of the public security at the place of
23-18 payment; and
23-19 (C) the interest on the public security is
23-20 payable to the registered owner of the public security at the most
23-21 recent address of that owner as shown on the books of the
23-22 registrar.
23-23 (2) "Issuer" means this state or a department, board,
23-24 authority, agency, district, municipal corporation, political
23-25 subdivision, instrumentality, or other political corporation of
23-26 this state that is authorized to issue public securities.
23-27 (3) "Public security" means a bond, note, certificate
24-1 of obligation, certificate of indebtedness, or other obligation for
24-2 the payment of money lawfully issued by an issuer.
24-3 (4) "Public security authorization" means the
24-4 resolution, order, or ordinance authorizing the issuance of a
24-5 public security.
24-6 (5) "Registered owner" means:
24-7 (A) the payee named in a fully registrable
24-8 public security; or
24-9 (B) the legal representative of or successor to
24-10 that payee. (V.A.C.S. Art. 715b, Secs. 2(2), (3), (4), (5); New.)
24-11 Sec. 1203.002. EFFECT ON UNIFORM COMMERCIAL CODE. This
24-12 chapter does not:
24-13 (1) qualify Title 1, Business & Commerce Code; or
24-14 (2) limit the negotiability of a public security as
24-15 provided by that title. (V.A.C.S. Art. 715b, Sec. 9(a) (part).)
24-16 Sec. 1203.003. CONFLICT WITH MUNICIPAL CHARTER. To the
24-17 extent of a conflict between this chapter and a municipal charter,
24-18 this chapter controls. (V.A.C.S. Art. 715b, Sec. 9(b).)
24-19 (Sections 1203.004-1203.020 reserved for expansion)
24-20 SUBCHAPTER B. REGISTRATION OF PUBLIC SECURITY
24-21 Sec. 1203.021. REGISTRAR FOR PUBLIC SECURITY; DESIGNATION IN
24-22 PROCEEDINGS. (a) The public security authorization that
24-23 authorizes a fully registrable public security shall designate the
24-24 registrar for the security.
24-25 (b) The registrar may be:
24-26 (1) the comptroller;
24-27 (2) a home-rule municipality with a population of more
25-1 than 100,000, as to a security of the municipality;
25-2 (3) a county with a population of more than 100,000,
25-3 as to a security of the county;
25-4 (4) a bank, including a commercial bank, at which the
25-5 principal of the security is payable; or
25-6 (5) a trust company organized under a law of this
25-7 state.
25-8 (c) Designation of a county as registrar for a public
25-9 security issued by the county is effective only if the
25-10 commissioners court of the county makes the designation with regard
25-11 to an issuance of debt.
25-12 (d) The county treasurer or the county officer who has the
25-13 powers and duties of the county treasurer shall perform the
25-14 registration duties for a county that is designated a registrar.
25-15 (V.A.C.S. Art. 715b, Secs. 2(6), (7); 4(a) (part); 4A.)
25-16 Sec. 1203.022. REGISTRATION OF PUBLIC SECURITY; CONFLICT
25-17 WITH PUBLIC SECURITY AUTHORIZATION. (a) A fully registrable
25-18 public security may be registered as provided by the public
25-19 security authorization relating to the security.
25-20 (b) To the extent of a conflict between this chapter and a
25-21 public security authorization that provides that a public security
25-22 is fully registrable, this chapter prevails. (V.A.C.S. Art. 715b,
25-23 Sec. 4(a) (part).)
25-24 Sec. 1203.023. MAINTENANCE OF REGISTRAR RECORDS BY TRUST
25-25 COMPANY OR COMMERCIAL BANK. A trust company or a commercial bank
25-26 acting as a registrar under this chapter shall maintain the
25-27 registrar records in this state. (V.A.C.S. Art. 715b, Sec. 4(b).)
26-1 Sec. 1203.024. CHANGE OF NAME OR ADDRESS OF REGISTERED
26-2 OWNER. If the comptroller is designated under this chapter as
26-3 registrar of a public security and the comptroller's registration
26-4 book reflects the change of name or address of a registered owner
26-5 of the security, the comptroller shall notify each paying agent of
26-6 the change. (V.A.C.S. Art. 715b, Sec. 7(a).)
26-7 Sec. 1203.025. COST AND EXPENSES FOR REGISTRATION OR
26-8 EXCHANGE OF PUBLIC SECURITY. A public security authorization that
26-9 authorizes the issuance of a public security that is, initially or
26-10 by exchange or conversion, fully registrable shall state the part
26-11 of the cost and expense of registering or exchanging the security
26-12 that the issuer will pay, including fees of the registrar named in
26-13 the public security authorization. (V.A.C.S. Art. 715b, Sec. 8
26-14 (part).)
26-15 Sec. 1203.026. COMPTROLLER'S RULES AND FEE SCHEDULE. The
26-16 comptroller shall:
26-17 (1) adopt rules for the comptroller's performance of
26-18 services under this chapter; and
26-19 (2) publish a schedule of fees for performing those
26-20 services. (V.A.C.S. Art. 715b, Sec. 8 (part).)
26-21 (Sections 1203.027-1203.040 reserved for expansion)
26-22 SUBCHAPTER C. CONVERSION OR EXCHANGE OF PUBLIC SECURITY
26-23 Sec. 1203.041. CONVERSION OF PUBLIC SECURITY. (a) This
26-24 section applies to a public security only if the public security
26-25 authorization relating to the security:
26-26 (1) provides for conversion of the security; and
26-27 (2) names the comptroller as registrar.
27-1 (b) A public security that is issued with one or more
27-2 coupons becomes fully registrable if:
27-3 (1) the security is presented to the comptroller; and
27-4 (2) the comptroller removes each coupon.
27-5 (c) A public security that is issued as a fully registrable
27-6 security becomes a security with one or more coupons if:
27-7 (1) the security is presented to the comptroller; and
27-8 (2) the comptroller attaches an unmatured coupon or
27-9 coupons to the security.
27-10 (d) Attachment and removal of a coupon or coupons may occur
27-11 successively from time to time. (V.A.C.S. Art. 715b, Sec. 5.)
27-12 Sec. 1203.042. APPROVAL AND REGISTRATION OF CONVERTED OR
27-13 EXCHANGED PUBLIC SECURITY. (a) This section applies to a public
27-14 security only if:
27-15 (1) the public security authorization relating to the
27-16 security provides that the security is fully registrable or is of
27-17 the type that has one or more coupons and that the security may be
27-18 exchanged; or
27-19 (2) the security has been converted under Section
27-20 1203.041.
27-21 (b) If the public security was initially approved by the
27-22 attorney general and registered by the comptroller, on exchange or
27-23 conversion of the security:
27-24 (1) a public security that results from the exchange
27-25 or conversion is considered to have been approved by the attorney
27-26 general and registered by the comptroller;
27-27 (2) the attorney general is not required to approve
28-1 the resulting security; and
28-2 (3) the comptroller is not required to register the
28-3 resulting security.
28-4 (c) If a public security is exchanged, the registrar shall
28-5 have an appropriate inscription placed on the public security
28-6 received in exchange verifying that the security received in
28-7 exchange is in place of the security presented for exchange. The
28-8 inscription must be manually signed. (V.A.C.S. Art. 715b, Sec. 6.)
28-9 CHAPTER 1204. INTEREST RATE
28-10 Sec. 1204.001. DEFINITIONS
28-11 Sec. 1204.002. APPLICABILITY
28-12 Sec. 1204.003. COMPUTATION OF PUBLIC SECURITY YEARS
28-13 Sec. 1204.004. COMPUTATION OF NET INTEREST COST
28-14 Sec. 1204.005. COMPUTATION OF NET EFFECTIVE INTEREST RATE
28-15 Sec. 1204.006. MAXIMUM INTEREST RATE
28-16 Sec. 1204.007. MAXIMUM INTEREST RATE FOR CERTAIN PUBLIC
28-17 SECURITIES
28-18 CHAPTER 1204. INTEREST RATE
28-19 Sec. 1204.001. DEFINITIONS. In this chapter:
28-20 (1) "Floating rate public security" means a public
28-21 security or a portion of a public security that bears a rate of
28-22 interest determined in accordance with a clearly stated formula,
28-23 computation, or method, under which the net interest cost of the
28-24 security or portion at any future date cannot be determined on the
28-25 date of delivery of the security or portion.
28-26 (2) "Public agency" means:
28-27 (A) this state or a department, board, agency,
29-1 district, municipal corporation, political subdivision, body
29-2 politic and corporate, or instrumentality of this state; or
29-3 (B) a nonprofit corporation or not-for-profit
29-4 entity that is an instrumentality of or is acting on behalf of an
29-5 entity described by Paragraph (A).
29-6 (3) "Public security" means a bond, note, or other
29-7 obligation that a public agency is authorized to issue. (V.A.C.S.
29-8 Art. 717k-2, Secs. 1(a), (b) (part), (e).)
29-9 Sec. 1204.002. APPLICABILITY. (a) A provision of this
29-10 chapter concerning the sale price of a public security or the
29-11 maximum rate of interest that a public security may bear applies to
29-12 any public security without regard to a contrary provision in
29-13 another law or a charter.
29-14 (b) A provision of this chapter concerning the sale price of
29-15 a public security does not apply to a public security whose maximum
29-16 rate of interest or maximum net effective interest rate is, at the
29-17 time the public security is issued, specifically set by the
29-18 constitution of this state. (V.A.C.S. Art. 717k-2, Sec. 3.)
29-19 Sec. 1204.003. COMPUTATION OF PUBLIC SECURITY YEARS. (a)
29-20 Public security years are computed for each separate public
29-21 security that is part of an issue or series of public securities by
29-22 dividing the principal amount at par value of the public security
29-23 by 100 and multiplying the resulting quotient by:
29-24 (1) the number of years from the date interest begins
29-25 to accrue on the public security to the date the security is
29-26 scheduled to mature; or
29-27 (2) for a floating rate public security, the number of
30-1 years from the date net interest cost begins to accrue on the
30-2 public security to the earlier of:
30-3 (A) the date the security is scheduled to
30-4 mature; or
30-5 (B) any date interest on the security is
30-6 computed.
30-7 (b) If any portion of an issue or series of public
30-8 securities is subject to a mandatory redemption before the
30-9 scheduled maturity that at the time of delivery of the public
30-10 securities is scheduled to occur on a specific date or dates, the
30-11 public security years are computed as if the face amount of public
30-12 securities required to be redeemed on each earlier date were
30-13 scheduled to mature on that earlier date. (V.A.C.S. Art. 717k-2,
30-14 Sec. 1(c) (part).)
30-15 Sec. 1204.004. COMPUTATION OF NET INTEREST COST. (a) In
30-16 this section:
30-17 (1) "Discount" means an amount equal to the principal
30-18 amount at par value of an issue or series of public securities plus
30-19 any accrued interest to the date of delivery minus the total sum of
30-20 money paid to the public agency.
30-21 (2) "Premium" means an amount equal to the total
30-22 amount of money paid to the public agency for an issue or series of
30-23 public securities minus:
30-24 (A) the principal amount at par value of the
30-25 issue or series; and
30-26 (B) any accrued interest to the date of
30-27 delivery.
31-1 (b) The net interest cost of an issue or series of public
31-2 securities is the total of all interest to become payable on the
31-3 issue or series through the final scheduled maturity date of the
31-4 issue or series, plus any discount or minus any premium included in
31-5 the price paid for the issue or series.
31-6 (c) The net interest cost of an issue or series of floating
31-7 rate public securities is the total of all interest to accrue from
31-8 the date of delivery and become payable on the issue or series
31-9 through any date net interest cost is computed on the issue or
31-10 series:
31-11 (1) plus, in the case of a discount, the figure
31-12 obtained by multiplying the dollar amount of the discount by a
31-13 fraction, the numerator of which is the aggregate number of public
31-14 security years to the date of the net interest cost computation and
31-15 the denominator of which is the aggregate number of public security
31-16 years to the scheduled final maturity date of the floating rate
31-17 public securities; or
31-18 (2) minus, in the case of a premium, the figure
31-19 obtained by multiplying the dollar amount of the premium by a
31-20 fraction, the numerator of which is the aggregate number of public
31-21 security years to the date of the net interest cost computation and
31-22 the denominator of which is the aggregate number of public security
31-23 years to the scheduled final maturity date of the floating rate
31-24 public securities.
31-25 (d) If any portion of an issue or series of public
31-26 securities is subject to a mandatory redemption before the
31-27 scheduled maturity that at the time of delivery of the public
32-1 securities is scheduled to occur on a specific date or dates:
32-2 (1) the net interest cost is computed as if the face
32-3 amount of public securities required to be redeemed on each earlier
32-4 date were scheduled to mature on that earlier date;
32-5 (2) the net interest cost includes any redemption
32-6 premium required to be paid on any mandatory redemption date; and
32-7 (3) any other form of compensation, whether due on an
32-8 optional or mandatory prepayment or redemption, may not be included
32-9 in the net interest cost. (V.A.C.S. Art. 717k-2, Sec. 1(c)
32-10 (part).)
32-11 Sec. 1204.005. COMPUTATION OF NET EFFECTIVE INTEREST RATE.
32-12 (a) The net effective interest rate of an issue or series of
32-13 public securities is computed by dividing the net interest cost of
32-14 the issue or series by the aggregate total number of public
32-15 security years of all public securities that comprise the issue or
32-16 series and expressing the result as a rate of interest in percent
32-17 per year.
32-18 (b) In computing the net effective interest rate of an issue
32-19 or series of public securities that includes one or more public
32-20 securities on which interest accruing before the maturity of the
32-21 public security is compounded, the public security years with
32-22 reference to each separate compounding public security are
32-23 increased by an amount obtained by dividing the amount of interest
32-24 that is periodically compounded by 100 and multiplying the
32-25 resulting quotient by the number of years from the date on which
32-26 interest begins to accrue on the amount that is being compounded
32-27 to:
33-1 (1) the scheduled date for payment of the amount that
33-2 is being compounded; or
33-3 (2) with respect to a floating rate public security,
33-4 the date interest on the public security is next computed, if that
33-5 date is earlier than the scheduled date for payment of the amount
33-6 that is being compounded.
33-7 (c) For purposes of this chapter, interest compounded under
33-8 Subsection (b) is considered as principal. (V.A.C.S. Art. 717k-2,
33-9 Secs. 1(d), (f).)
33-10 Sec. 1204.006. MAXIMUM INTEREST RATE. (a) The maximum rate
33-11 of interest for any issue or series of public securities, including
33-12 an issue or series that is issued in exchange for property, labor,
33-13 services, materials, or equipment under another law, is a net
33-14 effective interest rate of 15 percent.
33-15 (b) Except as provided by Section 1204.007, a public agency
33-16 may issue and sell any issue or series of its public securities at
33-17 any price and bearing interest at any rate or rates determined by
33-18 the agency's governing body that does not exceed the maximum rate
33-19 under Subsection (a). (V.A.C.S. Art. 717k-2, Secs. 2(a), 4.)
33-20 Sec. 1204.007. MAXIMUM INTEREST RATE FOR CERTAIN PUBLIC
33-21 SECURITIES. (a) Public securities authorized by an election held
33-22 before April 15, 1981, may be issued, may be sold, and may bear
33-23 interest as provided by Section 1204.006, except that public
33-24 securities authorized by an election required by the constitution
33-25 of this state may not be issued at an interest rate greater than
33-26 the rate authorized at that election unless an additional election
33-27 is held at which the issuance of the public securities at a price
34-1 and at a rate authorized by Section 1204.006 is approved.
34-2 (b) A public agency shall hold and give notice of an
34-3 additional election under Subsection (a) in the manner provided by
34-4 law applicable to the election that authorized the public
34-5 securities. (V.A.C.S. Art. 717k-2, Sec. 2(b).)
34-6 CHAPTER 1205. PUBLIC SECURITY DECLARATORY JUDGMENT ACTIONS
34-7 SUBCHAPTER A. GENERAL PROVISIONS
34-8 Sec. 1205.001. DEFINITIONS
34-9 Sec. 1205.002. CONFLICT OR INCONSISTENCY WITH OTHER
34-10 LAWS
34-11 (Sections 1205.003-1205.020 reserved for expansion)
34-12 SUBCHAPTER B. DECLARATORY JUDGMENT ACTION
34-13 Sec. 1205.021. AUTHORITY TO BRING ACTION
34-14 Sec. 1205.022. VENUE
34-15 Sec. 1205.023. PROCEEDING IN REM; CLASS ACTION
34-16 Sec. 1205.024. PLEADING CONTENTS
34-17 Sec. 1205.025. TIME FOR BRINGING ACTION; PENDENCY OF
34-18 OTHER PROCEEDINGS
34-19 (Sections 1205.026-1205.040 reserved for expansion)
34-20 SUBCHAPTER C. NOTICE OF DECLARATORY JUDGMENT ACTION
34-21 Sec. 1205.041. NOTICE TO INTERESTED PARTIES
34-22 Sec. 1205.042. SERVICE OF NOTICE ON ATTORNEY GENERAL;
34-23 WAIVER OF SERVICE
34-24 Sec. 1205.043. PUBLICATION OF NOTICE
34-25 Sec. 1205.044. EFFECT OF PUBLICATION
34-26 (Sections 1205.045-1205.060 reserved for expansion)
34-27 SUBCHAPTER D. TRIAL AND APPEAL PROCEEDINGS
35-1 Sec. 1205.061. COURT'S POWER TO ENJOIN OTHER PROCEEDINGS
35-2 Sec. 1205.062. ANSWER OR INTERVENTION BY INTERESTED PARTIES
35-3 Sec. 1205.063. DUTIES OF ATTORNEY GENERAL
35-4 Sec. 1205.064. INSPECTION OF RECORDS OF ISSUER
35-5 Sec. 1205.065. TRIAL OF ACTION
35-6 Sec. 1205.066. COURT COSTS AND OTHER EXPENSES
35-7 Sec. 1205.067. MILEAGE AND TRAVEL EXPENSES OF ATTORNEY
35-8 GENERAL
35-9 Sec. 1205.068. APPEALS
35-10 Sec. 1205.069. LEGISLATIVE CONTINUANCES
35-11 (Sections 1205.070-1205.100 reserved for expansion)
35-12 SUBCHAPTER E. SECURITY FOR ISSUER
35-13 Sec. 1205.101. SECURITY AGAINST SUIT
35-14 Sec. 1205.102. STANDARD FOR GRANTING OF MOTION
35-15 Sec. 1205.103. AMOUNT OF BOND
35-16 Sec. 1205.104. FAILURE TO FILE BOND
35-17 Sec. 1205.105. APPEAL
35-18 (Sections 1205.106-1205.150 reserved for expansion)
35-19 SUBCHAPTER F. EFFECT OF DECLARATORY JUDGMENT
35-20 Sec. 1205.151. EFFECT OF JUDGMENT
35-21 Sec. 1205.152. STATEMENT ON VALIDATED PUBLIC SECURITY
35-22 CHAPTER 1205. PUBLIC SECURITY DECLARATORY JUDGMENT ACTIONS
35-23 SUBCHAPTER A. GENERAL PROVISIONS
35-24 Sec. 1205.001. DEFINITIONS. In this chapter:
35-25 (1) "Issuer" means an agency, authority, board, body
35-26 politic, commission, department, district, instrumentality,
35-27 municipality or other political subdivision, or public corporation
36-1 of this state. The term includes a state-supported institution of
36-2 higher education and any other type of political or governmental
36-3 entity of this state.
36-4 (2) "Public security" means an interest-bearing
36-5 obligation, including a bond, bond anticipation note, certificate,
36-6 note, warrant, or other evidence of indebtedness, regardless of
36-7 whether the obligation is:
36-8 (A) general or special;
36-9 (B) negotiable;
36-10 (C) in bearer or registered form;
36-11 (D) in temporary or permanent form;
36-12 (E) issued with interest coupons; or
36-13 (F) to be repaid from taxes, revenue, both taxes
36-14 and revenue, or in another manner.
36-15 (3) "Public security authorization" means an action or
36-16 proceeding by an issuer taken, made, or proposed to be taken or
36-17 made in connection with or affecting a public security. (V.A.C.S.
36-18 Art. 717m-1, Sec. 1; New.)
36-19 Sec. 1205.002. CONFLICT OR INCONSISTENCY WITH OTHER LAWS.
36-20 (a) To the extent of a conflict or inconsistency between this
36-21 chapter and another law, this chapter controls.
36-22 (b) This chapter does not prohibit an issuer from applying
36-23 to the Texas Supreme Court for a writ of mandamus to the attorney
36-24 general for the approval of a bond, and the court is authorized to
36-25 issue the writ. (V.A.C.S. Art. 717m-1, Sec. 13 (part).)
36-26 (Sections 1205.003-1205.020 reserved for expansion)
36-27 SUBCHAPTER B. DECLARATORY JUDGMENT ACTION
37-1 Sec. 1205.021. AUTHORITY TO BRING ACTION. An issuer may
37-2 bring an action under this chapter to obtain a declaratory judgment
37-3 as to:
37-4 (1) the authority of the issuer to issue the public
37-5 securities;
37-6 (2) the legality and validity of each public security
37-7 authorization relating to the public securities, including if
37-8 appropriate:
37-9 (A) the election at which the public securities
37-10 were authorized;
37-11 (B) the organization or boundaries of the
37-12 issuer;
37-13 (C) the imposition of an assessment, a tax, or a
37-14 tax lien;
37-15 (D) the execution or proposed execution of a
37-16 contract;
37-17 (E) the imposition of a rate, fee, charge, or
37-18 toll or the enforcement of a remedy relating to the imposition of
37-19 that rate, fee, charge, or toll; and
37-20 (F) the pledge or encumbrance of a tax, revenue,
37-21 receipts, or property to secure the public securities;
37-22 (3) the legality and validity of each expenditure or
37-23 proposed expenditure of money relating to the public securities;
37-24 and
37-25 (4) the legality and validity of the public
37-26 securities. (V.A.C.S. Art. 717m-1, Secs. 2 (part), 13 (part).)
37-27 Sec. 1205.022. VENUE. An issuer may bring an action under
38-1 this chapter in a district court of Travis County or of the county
38-2 in which the issuer has its principal office. (V.A.C.S.
38-3 Art. 717m-1, Sec. 2 (part).)
38-4 Sec. 1205.023. PROCEEDING IN REM; CLASS ACTION. An action
38-5 under this chapter is:
38-6 (1) a proceeding in rem; and
38-7 (2) a class action against all persons who:
38-8 (A) reside in the territory of the issuer;
38-9 (B) own property located within the boundaries
38-10 of the issuer;
38-11 (C) are taxpayers of the issuer; or
38-12 (D) have or claim a right, title, or interest in
38-13 any property or money to be affected by the public security
38-14 authorization or the issuance of the public securities. (V.A.C.S.
38-15 Art. 717m-1, Sec. 2 (part).)
38-16 Sec. 1205.024. PLEADING CONTENTS. The petition in an action
38-17 under this chapter must briefly set out, by allegation, reference,
38-18 or exhibit:
38-19 (1) the issuer's authority to issue the public
38-20 securities;
38-21 (2) the purpose of the public securities;
38-22 (3) the holding and result of any required election;
38-23 (4) a copy of or a pertinent excerpt from each public
38-24 security authorization, including any essential action or
38-25 expenditure of money;
38-26 (5) the amount or proposed maximum amount of the
38-27 public securities;
39-1 (6) the interest rate or rates or the proposed maximum
39-2 interest rate of the public securities;
39-3 (7) in a suit relating to the validity or organization
39-4 of an issuer, the authority for and the proceedings relating to the
39-5 creation of the issuer or a boundary change; and
39-6 (8) any other pertinent matter. (V.A.C.S.
39-7 Art. 717m-1, Sec. 3.)
39-8 Sec. 1205.025. TIME FOR BRINGING ACTION; PENDENCY OF OTHER
39-9 PROCEEDINGS. An issuer may bring an action under this chapter:
39-10 (1) concurrently with or after the use of another
39-11 procedure to obtain a declaratory judgment, approval, or
39-12 validation;
39-13 (2) before or after the public securities are
39-14 authorized, issued, or delivered;
39-15 (3) before or after the attorney general approves the
39-16 public securities; and
39-17 (4) regardless of whether another proceeding is
39-18 pending in any court relating to a matter to be adjudicated in the
39-19 suit. (V.A.C.S. Art. 717m-1, Secs. 2 (part), 13 (part).)
39-20 (Sections 1205.026-1205.040 reserved for expansion)
39-21 SUBCHAPTER C. NOTICE OF DECLARATORY JUDGMENT ACTION
39-22 Sec. 1205.041. NOTICE TO INTERESTED PARTIES. (a) The court
39-23 in which an action under this chapter is brought shall, on receipt
39-24 of the petition, immediately issue an order, in the form of a
39-25 notice, directed to all persons who:
39-26 (1) reside in the territory of the issuer;
39-27 (2) own property located within the boundaries of the
40-1 issuer;
40-2 (3) are taxpayers of the issuer; or
40-3 (4) have or claim a right, title, or interest in any
40-4 property or money to be affected by a public security authorization
40-5 or the issuance of the public securities.
40-6 (b) The order must, in general terms and without naming
40-7 them, require the persons described by Subsection (a) and the
40-8 attorney general to:
40-9 (1) appear for trial at 10 a.m. on the first Monday
40-10 after the 20th day after the date of the order; and
40-11 (2) show cause why the petition should not be granted
40-12 and the public securities or the public security authorization
40-13 validated and confirmed.
40-14 (c) The order must give a general description of the
40-15 petition but is not required to contain the entire petition or any
40-16 exhibit attached to the petition. (V.A.C.S. Art. 717m-1, Sec. 4
40-17 (part).)
40-18 Sec. 1205.042. SERVICE OF NOTICE ON ATTORNEY GENERAL; WAIVER
40-19 OF SERVICE. (a) A copy of the issuer's petition with all attached
40-20 exhibits and a copy of the order issued under Section 1205.041(a)
40-21 shall be served on the attorney general before the 20th day before
40-22 the trial date.
40-23 (b) The attorney general may waive the service if the
40-24 attorney general has been provided a certified copy of the
40-25 petition, order, and a transcript of each pertinent public security
40-26 authorization relating to the matters described in the petition.
40-27 (V.A.C.S. Art. 717m-1, Sec. 4 (part).)
41-1 Sec. 1205.043. PUBLICATION OF NOTICE. (a) The clerk of the
41-2 court shall give notice by publishing a substantial copy of the
41-3 order issued under Section 1205.041(a) in a newspaper of general
41-4 circulation in:
41-5 (1) Travis County;
41-6 (2) the county where the issuer has its principal
41-7 office; and
41-8 (3) if the issuer has defined boundaries, each county
41-9 in which the issuer has territory.
41-10 (b) The notice shall be published once in each of two
41-11 consecutive calendar weeks, with the date of the first publication
41-12 before the 14th day before the trial date.
41-13 (c) If the issuer is this state, Subsection (a)(3) does not
41-14 apply. (V.A.C.S. Art. 717m-1, Sec. 6 (part).)
41-15 Sec. 1205.044. EFFECT OF PUBLICATION. The effect of notice
41-16 given under Sections 1205.041 and 1205.043 is that:
41-17 (1) each person described by Section 1205.041(a) is a
41-18 defendant to the action; and
41-19 (2) the court has jurisdiction over each person to the
41-20 same extent as if that person were individually named as a
41-21 defendant and personally served in the action. (V.A.C.S.
41-22 Art. 717m-1, Sec. 6 (part).)
41-23 (Sections 1205.045-1205.060 reserved for expansion)
41-24 SUBCHAPTER D. TRIAL AND APPEAL PROCEEDINGS
41-25 Sec. 1205.061. COURT'S POWER TO ENJOIN OTHER PROCEEDINGS.
41-26 (a) On the issuer's motion, before or after the trial date set
41-27 under Section 1205.041, the court may enjoin the commencement,
42-1 prosecution, or maintenance of any proceeding by any person that
42-2 contests the validity of:
42-3 (1) any organizational proceeding or boundary change
42-4 of the issuer;
42-5 (2) public securities that are described in the
42-6 petition for declaratory judgment action;
42-7 (3) a public security authorization relating to the
42-8 public securities;
42-9 (4) an action or expenditure of money relating to the
42-10 public securities, a proposed action or expenditure, or both;
42-11 (5) a tax, assessment, toll, fee, rate, or other
42-12 charge authorized to be imposed or made for the payment of the
42-13 public securities or interest on the public securities; or
42-14 (6) a pledge of any revenue, receipt, or property, or
42-15 an encumbrance on a tax, assessment, toll, fee, rate, or other
42-16 charge, to secure that payment.
42-17 (b) The court may:
42-18 (1) order a joint trial on all issues pending in any
42-19 other proceeding in a court in this state and the consolidation of
42-20 the proceeding with the action under this chapter; and
42-21 (2) issue necessary or proper orders to effect the
42-22 consolidation that will avoid unnecessary costs or delays or a
42-23 multiplicity of proceedings.
42-24 (c) An interlocutory order issued under this section is
42-25 final and may not be appealed. (V.A.C.S. Art. 717m-1, Sec. 5.)
42-26 Sec. 1205.062. ANSWER OR INTERVENTION BY INTERESTED PARTIES.
42-27 A person described by Section 1205.041(a) may become a named party
43-1 to an action brought under this chapter by:
43-2 (1) filing an answer with the court at or before the
43-3 time set for trial under Section 1205.041; or
43-4 (2) intervening, with leave of court, after the trial
43-5 date. (V.A.C.S. Art. 717m-1, Sec. 7 (part).)
43-6 Sec. 1205.063. DUTIES OF ATTORNEY GENERAL. (a) The
43-7 attorney general shall examine a petition filed under Section
43-8 1205.021, and shall raise appropriate defenses if the attorney
43-9 general believes that:
43-10 (1) the petition is defective, insufficient, or
43-11 untrue; or
43-12 (2) the public securities are, or the public security
43-13 authorization or an expenditure of money relating to the public
43-14 securities is, or will be invalid or unauthorized.
43-15 (b) If the attorney general does not question the validity
43-16 of the public securities, the public security authorization, or an
43-17 expenditure of money relating to the public securities or the
43-18 security or provisions for the payment of the public securities,
43-19 the attorney general may:
43-20 (1) state that belief; and
43-21 (2) on a finding by the court to that effect, be
43-22 dismissed as a party. (V.A.C.S. Art. 717m-1, Sec. 4 (part); New.)
43-23 Sec. 1205.064. INSPECTION OF RECORDS OF ISSUER. (a) Each
43-24 record of an issuer relating to the public securities, a public
43-25 security authorization, or an expenditure of money relating to the
43-26 public securities is open to inspection at reasonable times to any
43-27 party to an action under this chapter.
44-1 (b) Each officer, agent, or employee with possession,
44-2 custody, or control of any book, paper, or record of the issuer
44-3 shall, on demand of the attorney general:
44-4 (1) allow examination of the book, paper, or record;
44-5 and
44-6 (2) without cost, provide an authenticated copy that
44-7 pertains to or may affect the legality of the public securities,
44-8 public security authorization, or an expenditure of money relating
44-9 to the public securities. (V.A.C.S. Art. 717m-1, Sec. 4 (part);
44-10 New.)
44-11 Sec. 1205.065. TRIAL OF ACTION. (a) The court shall with
44-12 the least possible delay:
44-13 (1) hear and determine each legal or factual question
44-14 in the declaratory judgment action; and
44-15 (2) render a final judgment.
44-16 (b) Regardless of the pendency of an appeal from an order
44-17 entered under Subchapter E, on motion of the issuer, the trial
44-18 judge shall proceed under Subsection (a). (V.A.C.S. Art. 717m-1,
44-19 Secs. 7 (part), 8 (part).)
44-20 Sec. 1205.066. COURT COSTS AND OTHER EXPENSES. (a) An
44-21 issuer that brings an action under this chapter shall pay costs of
44-22 the action, except as provided by Subsection (b).
44-23 (b) The court may require a person other than the attorney
44-24 general who appears and contests or intervenes in the action to pay
44-25 all or part of the costs as the court determines equitable and
44-26 just. (V.A.C.S. Art. 717m-1, Sec. 12.)
44-27 Sec. 1205.067. MILEAGE AND TRAVEL EXPENSES OF ATTORNEY
45-1 GENERAL. (a) If an action under this chapter is brought in a
45-2 county other than Travis County, the issuer shall pay any mileage
45-3 or travel expense of the attorney general or an assistant attorney
45-4 general in the amount this state allows to an official of this
45-5 state for travel on official business.
45-6 (b) A claim for an expense under Subsection (a):
45-7 (1) must be filed in duplicate with the clerk of the
45-8 court in which the action is pending; and
45-9 (2) shall be taxed as a cost against the issuer.
45-10 (V.A.C.S. Art. 717m-1, Sec. 4 (part).)
45-11 Sec. 1205.068. APPEALS. (a) Any party to an action under
45-12 this chapter may appeal to the appropriate court of appeals:
45-13 (1) an order entered by the trial court under Section
45-14 1205.103 or 1205.104; or
45-15 (2) the judgment rendered by the trial court.
45-16 (b) A party may take a direct appeal to the supreme court as
45-17 provided by Section 22.001(c).
45-18 (c) An order or judgment from which an appeal is not taken
45-19 is final.
45-20 (d) An order or judgment of a court of appeals may be
45-21 appealed to the supreme court.
45-22 (e) An appeal under this section takes priority over any
45-23 other matter, other than writs of habeas corpus, pending in the
45-24 appellate court. The appellate court shall render its final order
45-25 or judgment with the least possible delay. (V.A.C.S. Art. 717m-1,
45-26 Sec. 9 (part).)
45-27 Sec. 1205.069. LEGISLATIVE CONTINUANCES. Rule 254, Texas
46-1 Rules of Civil Procedure, and Section 30.003, Civil Practice and
46-2 Remedies Code, do not apply to a suit or an appeal under this
46-3 chapter. (V.A.C.S. Art. 717m-1, Sec. 7 (part).)
46-4 (Sections 1205.070-1205.100 reserved for expansion)
46-5 SUBCHAPTER E. SECURITY FOR ISSUER
46-6 Sec. 1205.101. SECURITY AGAINST SUIT. (a) Before the entry
46-7 of final judgment in an action under this chapter, the issuer may
46-8 file a motion with the court for an order that any opposing party
46-9 or intervenor, other than the attorney general, be dismissed unless
46-10 that person posts a bond with sufficient surety, approved by the
46-11 court, and payable to the issuer for any damage or cost that may
46-12 occur because of the delay caused by the continued participation of
46-13 the opposing party or intervenor in the action if the issuer
46-14 finally prevails and obtains substantially the judgment requested
46-15 in its petition.
46-16 (b) On receipt of a motion under Subsection (a), the court
46-17 shall issue an order directed to the opposing party or intervenor,
46-18 with a copy of the motion, to be served on the opposing party, the
46-19 intervenor, or the party's attorney, personally or by registered
46-20 mail, requiring the opposing party or intervenor to:
46-21 (1) appear at the time and place directed by the
46-22 court, not before the sixth or later than the 10th day after the
46-23 date the order is entered; and
46-24 (2) show cause why the motion should not be granted.
46-25 (c) The court may direct that motions relating to more than
46-26 one party or intervenor be heard together. (V.A.C.S. Art. 717m-1,
46-27 Sec. 8 (part).)
47-1 Sec. 1205.102. STANDARD FOR GRANTING OF MOTION. The court
47-2 shall grant an issuer's motion for security under Section 1205.101
47-3 unless, at the hearing on the motion, the opposing party or
47-4 intervenor establishes that the person is entitled to a temporary
47-5 injunction against the issuance of the public securities.
47-6 (V.A.C.S. Art. 717m-1, Sec. 8 (part).)
47-7 Sec. 1205.103. AMOUNT OF BOND. (a) The court that grants a
47-8 motion under this subchapter as to a particular opposing party or
47-9 intervenor shall in the order set the amount of the bond to be
47-10 posted by that person.
47-11 (b) The bond must be in an amount determined by the court to
47-12 be sufficient to cover any damage or cost, including an anticipated
47-13 increase in interest rates or in a construction or financing cost,
47-14 that may occur because of the delay caused by the continued
47-15 participation of the opposing party or intervenor in the acts if
47-16 the issuer finally prevails and obtains substantially the judgment
47-17 requested in its petition.
47-18 (c) The court may receive evidence at the hearing or during
47-19 any adjournment relating to the amount of the potential damage or
47-20 cost.
47-21 (d) The court may allocate the amount of the bond among
47-22 opposing parties and intervenors according to the extent of their
47-23 participation. (V.A.C.S. Art. 717m-1, Sec. 8 (part).)
47-24 Sec. 1205.104. FAILURE TO FILE BOND. (a) The court shall
47-25 dismiss an opposing party or intervenor who does not file a
47-26 required bond before the 11th day after the date of the entry of
47-27 the order setting the amount of the bond.
48-1 (b) A dismissal under this section is a final judgment of
48-2 the court, unless appealed under Section 1205.068.
48-3 (c) No court has further jurisdiction over any action to the
48-4 extent that action involves any issue that was or could have been
48-5 raised in the action under this chapter, other than an issue that
48-6 may have been raised by an opposing party or intervenor who was not
48-7 subject to the motion. (V.A.C.S. Art. 717m-1, Sec. 8 (part).)
48-8 Sec. 1205.105. APPEAL. (a) An order setting the amount of
48-9 a bond denying the motion of an issuer for a bond, or dismissing a
48-10 party for failure to file a bond may be appealed under Section
48-11 1205.068.
48-12 (b) An appellate court may:
48-13 (1) modify an order of a lower court; and
48-14 (2) enter the modified order as the final order.
48-15 (c) If an appeal is not taken or if the appeal is taken and
48-16 the order of the lower court is affirmed or affirmed as modified,
48-17 and the required bond is not posted before the 11th day after the
48-18 date of the entry of the appropriate order, no court has further
48-19 jurisdiction over any action to the extent it involves an issue
48-20 that was or could have been raised in the action under this
48-21 chapter, other than an issue that may have been raised by an
48-22 opposing party or intervenor who was not subject to the motion.
48-23 (V.A.C.S. Art. 717m-1, Sec. 8 (part).)
48-24 (Sections 1205.106-1205.150 reserved for expansion)
48-25 SUBCHAPTER F. EFFECT OF DECLARATORY JUDGMENT
48-26 Sec. 1205.151. EFFECT OF JUDGMENT. (a) This section
48-27 applies to a final judgment of a district court in an action under
49-1 this chapter that holds that under the terms set out in the
49-2 petition:
49-3 (1) the issuer had or has the authority to:
49-4 (A) issue the public securities; or
49-5 (B) take each public security authorization; and
49-6 (2) each public security authorization and expenditure
49-7 of money relating to the public securities was legal.
49-8 (b) The judgment, as to each adjudicated matter and each
49-9 matter that could have been raised, is binding and conclusive
49-10 against:
49-11 (1) the issuer;
49-12 (2) the attorney general;
49-13 (3) the comptroller; and
49-14 (4) any party to the action, whether:
49-15 (A) named and served with the notice of the
49-16 proceedings; or
49-17 (B) described by Section 1205.041(a).
49-18 (c) The judgment is a permanent injunction against the
49-19 filing by any person of any proceeding contesting the validity of:
49-20 (1) the public securities, a public security
49-21 authorization, or an expenditure of money relating to the public
49-22 securities described in the petition;
49-23 (2) each provision made for the payment of the public
49-24 securities or of any interest on the public securities; and
49-25 (3) any adjudicated matter and any matter that could
49-26 have been raised in the action. (V.A.C.S. Art. 717m-1, Sec. 10
49-27 (part); New.)
50-1 Sec. 1205.152. STATEMENT ON VALIDATED PUBLIC SECURITY. (a)
50-2 The issuer of a public security validated under this chapter may
50-3 have written on the public security the following certificate:
50-4 "This obligation was validated and confirmed by a
50-5 judgment entered ______________ (date when the judgment
50-6 was entered; the court entering the judgment; and the
50-7 style and number of the declaratory judgment action),
50-8 which perpetually enjoins the commencement of any suit,
50-9 action, or proceeding involving the validity of this
50-10 obligation, or the provision made for the payment of
50-11 the principal and interest of the obligation."
50-12 (b) The clerk, secretary, or other official of the issuer
50-13 may sign the certificate. (V.A.C.S. Art. 717m-1, Sec. 11 (part).)
50-14 CHAPTER 1206. REPLACEMENT FOR DAMAGED, DESTROYED, LOST, OR
50-15 STOLEN PUBLIC SECURITIES
50-16 SUBCHAPTER A. REPLACEMENT PROCEDURES IN ABSENCE OF PROCEDURES
50-17 PRESCRIBED IN ORIGINAL BOND RESOLUTION, ORDER, OR ORDINANCE
50-18 Sec. 1206.001. DEFINITION
50-19 Sec. 1206.002. ISSUANCE OF REPLACEMENT BOND
50-20 Sec. 1206.003. EFFECT AND FORM OF REPLACEMENT BOND
50-21 Sec. 1206.004. ATTORNEY GENERAL APPROVAL
50-22 Sec. 1206.005. REGISTRATION
50-23 Sec. 1206.006. FORM AND IDENTITY CHANGES
50-24 (Sections 1206.007-1206.020 reserved for expansion)
50-25 SUBCHAPTER B. REPLACEMENT PROCEDURES AS PRESCRIBED IN
50-26 ORIGINAL PUBLIC SECURITY AUTHORIZATION
50-27 Sec. 1206.021. DEFINITIONS
51-1 Sec. 1206.022. PRESCRIPTION OF PROCEDURES IN ORIGINAL PUBLIC
51-2 SECURITY AUTHORIZATION
51-3 Sec. 1206.023. EXCEPTION TO APPROVAL REQUIREMENT
51-4 CHAPTER 1206. REPLACEMENT FOR DAMAGED, DESTROYED, LOST, OR
51-5 STOLEN PUBLIC SECURITIES
51-6 SUBCHAPTER A. REPLACEMENT PROCEDURES IN ABSENCE OF PROCEDURES
51-7 PRESCRIBED IN ORIGINAL BOND RESOLUTION, ORDER, OR ORDINANCE
51-8 Sec. 1206.001. DEFINITION. In this subchapter, "issuer"
51-9 means this state, a department, agency, or instrumentality of this
51-10 state, or a municipal corporation or other political subdivision of
51-11 this state that is authorized to borrow money and issue bonds.
51-12 (V.A.C.S. Art. 715a, Sec. 1.)
51-13 Sec. 1206.002. ISSUANCE OF REPLACEMENT BOND. (a) An issuer
51-14 may, without an election, issue a bond:
51-15 (1) to be exchanged for a damaged bond; or
51-16 (2) to replace a destroyed, lost, or stolen bond.
51-17 (b) A replacement bond may be issued under this subchapter
51-18 only for a bond that is outstanding and that was lawfully issued.
51-19 (c) A replacement bond issued under Subsection (a)(2) must
51-20 be issued on indemnity satisfactory to:
51-21 (1) the issuer; and
51-22 (2) the trustee if the bond being replaced is secured
51-23 by a trust indenture.
51-24 (d) An issuer may require an affidavit or another form of
51-25 evidence satisfactory to the issuer to establish ownership and the
51-26 circumstances of the damage, destruction, loss, or theft of the
51-27 bond. (V.A.C.S. Art. 715a, Sec. 2.)
52-1 Sec. 1206.003. EFFECT AND FORM OF REPLACEMENT BOND. (a) A
52-2 replacement bond issued under this subchapter must be of like tenor
52-3 and effect as the bond that it is issued to replace.
52-4 (b) A replacement bond issued under this subchapter must
52-5 bear a date specified by the issuer and must be signed as provided
52-6 by law by the officers of the issuer holding office when the
52-7 replacement bond is issued. (V.A.C.S. Art. 715a, Sec. 3.)
52-8 Sec. 1206.004. ATTORNEY GENERAL APPROVAL. (a) A
52-9 replacement bond issued under this subchapter must be submitted to
52-10 the attorney general for approval.
52-11 (b) If the attorney general finds that the replacement bond
52-12 has been issued in accordance with this subchapter, the attorney
52-13 general shall:
52-14 (1) approve the bond; and
52-15 (2) send the bond to the comptroller for registration.
52-16 (V.A.C.S. Art. 715a, Sec. 4 (part).)
52-17 Sec. 1206.005. REGISTRATION. (a) The comptroller shall
52-18 register a replacement bond received under Section 1206.004 in the
52-19 same manner as the original bond was registered, giving it the same
52-20 registration number as the original bond, except that the
52-21 registration number must be preceded by the letter "R."
52-22 (b) The comptroller shall date the registration certificate
52-23 as of the date of registration of the replacement bond.
52-24 (c) Before registering a bond issued to replace a damaged
52-25 bond, the comptroller shall cancel the bond being replaced and
52-26 return that bond to the issuer. The comptroller shall register
52-27 another bond authorized under this subchapter on certification from
53-1 the attorney general that the bond is being issued to replace a
53-2 lost, stolen, or destroyed bond. (V.A.C.S. Art. 715a, Sec. 4
53-3 (part).)
53-4 Sec. 1206.006. FORM AND IDENTITY CHANGES. (a) An applicant
53-5 to the comptroller for replacement under this subchapter of a bond
53-6 that is damaged, destroyed, lost, or stolen and that, as described
53-7 in the application, does not appear in the comptroller's records in
53-8 the form and bear the identity originally registered by the
53-9 comptroller must provide to the comptroller a chronology of the
53-10 changes from the original, registered form and identity.
53-11 (b) The chronology must enable the comptroller, under the
53-12 comptroller's rules, to trace the changes in form and identity of
53-13 the bond to the original, registered form and identity. (V.A.C.S.
53-14 Art. 715b, Sec. 7(b).)
53-15 (Sections 1206.007-1206.020 reserved for expansion)
53-16 SUBCHAPTER B. REPLACEMENT PROCEDURES AS PRESCRIBED IN
53-17 ORIGINAL PUBLIC SECURITY AUTHORIZATION
53-18 Sec. 1206.021. DEFINITIONS. In this subchapter, "issuer,"
53-19 "public security," and "public security authorization" have the
53-20 meanings assigned by Section 1201.002. (New.)
53-21 Sec. 1206.022. PRESCRIPTION OF PROCEDURES IN ORIGINAL PUBLIC
53-22 SECURITY AUTHORIZATION. The governing body of an issuer may
53-23 provide procedures for the replacement of lost, stolen, destroyed,
53-24 or mutilated public securities or interest coupons in the manner
53-25 prescribed in the public security authorization. (V.A.C.S.
53-26 Art. 717k-6, Sec. 6(b) (part).)
53-27 Sec. 1206.023. EXCEPTION TO APPROVAL REQUIREMENT. (a) If
54-1 the duty to replace a public security or interest coupon is imposed
54-2 on a corporate trustee under a trust agreement or indenture or on a
54-3 paying agent for the public security, the attorney general is not
54-4 required to approve and the comptroller is not required to
54-5 register:
54-6 (1) the replacement public security or interest
54-7 coupon; or
54-8 (2) the public security delivered on exchange of the
54-9 previously issued public security.
54-10 (b) A replacement public security or interest coupon is
54-11 valid and incontestable in the same manner and with the same effect
54-12 as the previously issued public security. (V.A.C.S. Art. 717k-6,
54-13 Sec. 6(b) (part).)
54-14 CHAPTER 1207. REFUNDING BONDS
54-15 SUBCHAPTER A. GENERAL PROVISIONS
54-16 Sec. 1207.001. DEFINITIONS
54-17 Sec. 1207.002. AUTHORITY TO ISSUE
54-18 Sec. 1207.003. ELECTION
54-19 Sec. 1207.004. COMBINATION ISSUANCE
54-20 Sec. 1207.005. SOURCES AVAILABLE FOR PAYMENT
54-21 Sec. 1207.006. MATURITY
54-22 (Sections 1207.007-1207.020 reserved for expansion)
54-23 SUBCHAPTER B. ADVANCE REFUNDING PROCEDURES
54-24 Sec. 1207.021. AUTHORITY TO DEPOSIT WITH COMPTROLLER
54-25 Sec. 1207.022. LIMITATION
54-26 Sec. 1207.023. AMOUNT OF PRINCIPAL
54-27 Sec. 1207.024. METHODS AND TERMS OF SALE
55-1 Sec. 1207.025. REGISTRATION BEFORE DEPOSIT; REGISTRATION
55-2 WITHOUT CANCELLATION OF OBLIGATIONS TO BE
55-3 REFUNDED
55-4 Sec. 1207.026. USE OF SALE PROCEEDS TO MAKE DEPOSIT;
55-5 RIGHTS NOT DEPENDENT ON CANCELLATION OF
55-6 OBLIGATIONS TO BE REFUNDED
55-7 Sec. 1207.027. COMPTROLLER TO ACCEPT AND KEEP SAFE DEPOSITS
55-8 Sec. 1207.028. COMPTROLLER TO SEND AND RECORD DEPOSIT OR
55-9 PAYMENT
55-10 Sec. 1207.029. SELECTION OF PAYING AGENT
55-11 Sec. 1207.030. ESTABLISHMENT AND USE OF TRUST FUND
55-12 Sec. 1207.031. WITHDRAWAL OF DEPOSIT
55-13 Sec. 1207.032. COMPTROLLER FEES
55-14 Sec. 1207.033. DISCHARGE
55-15 Sec. 1207.034. RIGHT TO DEMAND OR RECEIVE EARLY PAYMENT
55-16 Sec. 1207.035. CONFLICT OR INCONSISTENCY WITH OTHER LAWS
55-17 (Sections 1207.036-1207.060 reserved for expansion)
55-18 SUBCHAPTER C. DIRECT DEPOSIT WITH PAYING AGENT
55-19 Sec. 1207.061. AUTHORITY TO DEPOSIT DIRECTLY
55-20 Sec. 1207.062. ESCROW AGREEMENT
55-21 Sec. 1207.063. DUTY TO COMPLY
55-22 Sec. 1207.064. INCONTESTABILITY OF CERTAIN ESCROW
55-23 AGREEMENTS AND CONTRACTS
55-24 (Sections 1207.065-1207.080 reserved for expansion)
55-25 SUBCHAPTER D. EXCHANGE REFUNDING PROCEDURES
55-26 Sec. 1207.081. ISSUANCE IN EXCHANGE FOR OBLIGATION TO BE
55-27 REFUNDED; LIMITATION
56-1 Sec. 1207.082. LIMITATION ON AUTHORITY TO PARTIALLY REFUND
56-2 Sec. 1207.083. OTHER POWERS OF ISSUER
56-3 Sec. 1207.084. CONFLICT OR INCONSISTENCY WITH OTHER LAWS
56-4 CHAPTER 1207. REFUNDING BONDS
56-5 SUBCHAPTER A. GENERAL PROVISIONS
56-6 Sec. 1207.001. DEFINITIONS. In this chapter:
56-7 (1) "Issuer" means this state or any department,
56-8 board, authority, agency, subdivision, municipal corporation,
56-9 district, public corporation, body politic, or instrumentality of
56-10 this state which has the power to borrow money and issue bonds,
56-11 notes, or other evidences of indebtedness. The term includes a
56-12 county, municipality, state-supported institution of higher
56-13 education, junior college district, regional college district,
56-14 school district, hospital district, water district, road district,
56-15 navigation district, conservation district, and any other kind or
56-16 type of political or governmental entity.
56-17 (2) "Paying agent" means the person, including the
56-18 bank or trust company, at whose location payment of refunded
56-19 obligations is to be made. (V.A.C.S. Art. 717k, Sec. 1 (part);
56-20 Art. 717k-3, Sec. 1 (part); New.)
56-21 Sec. 1207.002. AUTHORITY TO ISSUE. An issuer may issue
56-22 refunding bonds under this chapter to refund all or any part of the
56-23 issuer's outstanding bonds, notes, or other general or special
56-24 obligations. (V.A.C.S. Art. 717k, Sec. 2(a) (part); Art. 717k-3,
56-25 Secs. 2, 5 (part).)
56-26 Sec. 1207.003. ELECTION. (a) Refunding bonds may be issued
56-27 without an election in connection with the issuance of the
57-1 refunding bonds or the creation of an encumbrance in connection
57-2 with the refunding bonds, except as provided by Subsection (b).
57-3 (b) If the constitution of this state requires an election
57-4 to permit a procedure, action, or matter pertaining to refunding
57-5 bonds, an election to authorize the procedure, action, or matter
57-6 shall be held substantially in accordance, to the extent
57-7 appropriate, with Chapter 1251. (V.A.C.S. Art. 717k, Sec. 2(a)
57-8 (part); Art. 717k-3, Sec. 3 (part).)
57-9 Sec. 1207.004. COMBINATION ISSUANCE. Under the terms and
57-10 with the security set forth in the proceedings that authorize the
57-11 issuance of the refunding bonds, a governmental entity may issue
57-12 refunding bonds:
57-13 (1) in combination with new bonds;
57-14 (2) with provision for the subsequent issuance of
57-15 additional parity bonds or subordinate lien bonds; or
57-16 (3) both in combination with new bonds and with
57-17 provision for the subsequent issuance of additional bonds.
57-18 (V.A.C.S. Art. 717k, Secs. 2(a) (part), 7A (part); Art. 717k-3,
57-19 Sec. 3 (part).)
57-20 Sec. 1207.005. SOURCES AVAILABLE FOR PAYMENT. A refunding
57-21 bond may be secured by and made payable from taxes, revenue, or
57-22 both, another source, or a combination of sources, including
57-23 surplus income to be earned from the investment of a deposit made
57-24 under Subchapter C, to the extent the issuer is otherwise
57-25 authorized to secure or pay any type of bond by or from that source
57-26 or those sources. (V.A.C.S. Art. 717k, Secs. 2(a) (part), 7A
57-27 (part); Art. 717k-3, Sec. 3 (part).)
58-1 Sec. 1207.006. MATURITY. A refunding bond issued under this
58-2 chapter must mature not later than 40 years after its date.
58-3 (V.A.C.S. Art. 717k, Secs. 2(a) (part), 7A (part); Art. 717k-3,
58-4 Sec. 3 (part).)
58-5 (Sections 1207.007-1207.020 reserved for expansion)
58-6 SUBCHAPTER B. ADVANCE REFUNDING PROCEDURES
58-7 Sec. 1207.021. AUTHORITY TO DEPOSIT WITH COMPTROLLER.
58-8 (a) An issuer is entitled to deposit with the comptroller an
58-9 amount of money equal to the sum of:
58-10 (1) the principal amount of the bonds, notes, or other
58-11 obligations to be refunded;
58-12 (2) the interest that will accrue on those bonds,
58-13 notes, or other obligations computed to the due date or redemption
58-14 date; and
58-15 (3) any required redemption premium.
58-16 (b) At the time a deposit is made under Subsection (a), the
58-17 issuer shall deliver to the comptroller a certified copy of the
58-18 proceedings that authorize the issuance of the obligations to be
58-19 refunded, or a certified excerpt from those proceedings, that
58-20 clearly shows:
58-21 (1) each amount of interest and the date on which that
58-22 amount of interest is due on the obligations to be refunded;
58-23 (2) the date the principal is subject to redemption;
58-24 and
58-25 (3) the name and address of the paying agent.
58-26 (c) The comptroller may rely on a certificate by the issuer
58-27 as to the amount of the charges made by the paying agent.
59-1 (V.A.C.S. Art. 717k, Sec. 2(b) (part).)
59-2 Sec. 1207.022. LIMITATION. (a) An issuer may issue
59-3 refunding bonds to make a deposit under this subchapter or
59-4 Subchapter C only in connection with refunding bonds issued to
59-5 refund obligations that are:
59-6 (1) scheduled to mature not later than the 20th
59-7 anniversary of the date of the refunding bonds; or
59-8 (2) subject to redemption before maturity not later
59-9 than the 20th anniversary of the date of the refunding bonds.
59-10 (b) Refunding bonds may not be issued to make a deposit
59-11 under this subchapter in connection with the refunding of electric
59-12 and gas system bonds issued by a municipality with a population of
59-13 more than 900,000. (V.A.C.S. Art. 717k, Secs. 2(a) (part), 7A
59-14 (part).)
59-15 Sec. 1207.023. AMOUNT OF PRINCIPAL. Refunding bonds for
59-16 which a deposit is made under this subchapter or Subchapter C may
59-17 be issued in an additional amount sufficient to:
59-18 (1) pay the cost and expense of issuing the bonds; or
59-19 (2) finance a debt service reserve, contingency, or
59-20 other similar fund the issuer considers necessary or advisable.
59-21 (V.A.C.S. Art. 717k, Sec. 7A (part).)
59-22 Sec. 1207.024. METHODS AND TERMS OF SALE. (a) Refunding
59-23 bonds issued to make a deposit under this subchapter or Subchapter
59-24 C shall be sold for cash in a principal amount necessary to provide
59-25 all or part of the money required to:
59-26 (1) pay the principal of the obligations to be
59-27 refunded and the interest to accrue on those obligations to their
60-1 maturity; or
60-2 (2) redeem the obligations to be refunded, before
60-3 maturity, on the date or dates the obligations are subject to
60-4 redemption, including the principal, interest to accrue on the
60-5 obligations to their redemption date or dates, and any required
60-6 redemption premium.
60-7 (b) The refunding bonds:
60-8 (1) shall be sold under the terms and procedures for
60-9 the sale as determined by the governing body of the issuer; and
60-10 (2) may be sold at public or private sale. (V.A.C.S.
60-11 Art. 717k, Secs. 2(a) (part), 7A (part).)
60-12 Sec. 1207.025. REGISTRATION BEFORE DEPOSIT; REGISTRATION
60-13 WITHOUT CANCELLATION OF OBLIGATIONS TO BE REFUNDED. (a) Refunding
60-14 bonds must be registered by the comptroller as provided by Chapter
60-15 1202 before a deposit required by this subchapter or Subchapter C
60-16 may be made.
60-17 (b) If the issuer has complied with each applicable
60-18 requirement of this chapter, the comptroller shall register
60-19 refunding bonds issued to make a deposit under this subchapter
60-20 without the surrender, exchange, or cancellation of the obligations
60-21 to be refunded. (V.A.C.S. Art. 717k, Secs. 2(a) (part), 4 (part),
60-22 7A (part).)
60-23 Sec. 1207.026. USE OF SALE PROCEEDS TO MAKE DEPOSIT; RIGHTS
60-24 NOT DEPENDENT ON CANCELLATION OF OBLIGATIONS TO BE REFUNDED.
60-25 (a) An issuer may sell and deliver refunding bonds that have been
60-26 registered with the comptroller so as to permit the issuer, in a
60-27 timely manner determined by the issuer, to use proceeds from the
61-1 sale to make all or any part of a deposit under this chapter.
61-2 (b) An issuer that has complied with this chapter may issue,
61-3 register, sell, or deliver a refunding bond in lieu of the
61-4 obligation to be refunded regardless of whether:
61-5 (1) the holder of the obligation to be refunded has
61-6 surrendered or presented the obligation for payment and
61-7 cancellation; or
61-8 (2) the obligation to be refunded has been canceled.
61-9 (V.A.C.S. Art. 717k, Secs. 2(a) (part), 4 (part), 5, 7A (part).)
61-10 Sec. 1207.027. COMPTROLLER TO ACCEPT AND KEEP SAFE DEPOSITS.
61-11 (a) The comptroller shall:
61-12 (1) accept each deposit, payment, or instrument
61-13 received under this subchapter; and
61-14 (2) safely keep and use the money only for a purpose
61-15 specified in this subchapter.
61-16 (b) Money deposited with the comptroller under this
61-17 subchapter may not be:
61-18 (1) used by or for the benefit of this state or for
61-19 the benefit of a creditor of this state, except as provided by
61-20 Section 1207.032; or
61-21 (2) commingled with other money. (V.A.C.S. Art. 717k,
61-22 Sec. 2(b) (part).)
61-23 Sec. 1207.028. COMPTROLLER TO SEND AND RECORD DEPOSIT OR
61-24 PAYMENT. (a) After receipt of a deposit or payment under this
61-25 subchapter, the comptroller shall immediately and by the most
61-26 expeditious means send to the paying agent for the obligation being
61-27 refunded an amount equal to the deposit or payment less the amount
62-1 of any fee charged under Section 1207.032.
62-2 (b) The comptroller shall notify the paying agent to send to
62-3 the comptroller the obligation being refunded.
62-4 (c) After the comptroller has made a record of its payment
62-5 and cancellation, the comptroller shall send the obligation being
62-6 refunded and any interest coupon to the issuer. (V.A.C.S.
62-7 Art. 717k, Secs. 3 (part), 7 (part).)
62-8 Sec. 1207.029. SELECTION OF PAYING AGENT. If there is more
62-9 than one paying agent for an obligation being refunded, the
62-10 comptroller shall send the money directly to:
62-11 (1) the paying agent located in this state, if only
62-12 one paying agent is located in this state;
62-13 (2) the paying agent located in this state having the
62-14 largest capital and surplus, if more than one paying agent is
62-15 located in this state; or
62-16 (3) the paying agent having the largest capital and
62-17 surplus, if no paying agent is located in this state and more than
62-18 one paying agent is located in another state. (V.A.C.S. Art. 717k,
62-19 Sec. 7 (part).)
62-20 Sec. 1207.030. ESTABLISHMENT AND USE OF TRUST FUND. (a)
62-21 The paying agent shall deposit the money received from the
62-22 comptroller, except that amount representing the charges of the
62-23 paying agent, in an interest and sinking fund to be established and
62-24 maintained as a trust fund for the payment of the obligation being
62-25 refunded.
62-26 (b) The paying agent shall, from the interest and sinking
62-27 fund, pay or redeem the obligations to be refunded when properly
63-1 presented for payment or redemption.
63-2 (c) If there is more than one paying agent, the agent to
63-3 whom the comptroller sent the money under Section 1207.029 shall
63-4 make appropriate financial arrangements to ensure that the
63-5 necessary money will be available to any other paying agent to pay
63-6 or redeem an obligation to be refunded when presented for payment
63-7 or redemption. (V.A.C.S. Art. 717k, Sec. 7 (part).)
63-8 Sec. 1207.031. WITHDRAWAL OF DEPOSIT. (a) An issuer that
63-9 has made the deposit and payments required by this subchapter may
63-10 apply to the comptroller to withdraw from the paying agent the
63-11 amount of money deposited to the credit of the account of an
63-12 obligation that has been refunded, including interest and premium,
63-13 if any, by exhibiting the canceled obligation to the comptroller.
63-14 The comptroller shall make a proper record of payment and
63-15 cancellation of that obligation.
63-16 (b) An issuer may withdraw money deposited under this
63-17 subchapter only if:
63-18 (1) the conditions stated in Subsection (a) are met;
63-19 or
63-20 (2) the attorney general certifies to the comptroller
63-21 that the issuer's payment of the obligation as to which the deposit
63-22 was made is barred by limitation and forbidden by law. (V.A.C.S.
63-23 Art. 717k, Sec. 6.)
63-24 Sec. 1207.032. COMPTROLLER FEES. The comptroller may charge
63-25 a reasonable fee for a service performed under this subchapter.
63-26 (V.A.C.S. Art. 717k, Sec. 2(b) (part).)
63-27 Sec. 1207.033. DISCHARGE. (a) A deposit of money made
64-1 under this chapter is considered to be the making of firm banking
64-2 and financial arrangements for the discharge and final payment or
64-3 redemption of the obligations to be refunded or to be paid or
64-4 redeemed wholly or partly without the issuance of refunding bonds
64-5 if the deposit is made on or before the payment or redemption date
64-6 or dates of the obligations.
64-7 (b) An issuer may provide in the proceedings authorizing the
64-8 issuance of the refunding bonds that the refunding bonds are
64-9 subordinate to the obligations to be refunded. The subordination
64-10 may be made only in the manner and to the extent specifically
64-11 provided by those proceedings. (V.A.C.S. Art. 717k, Secs. 7
64-12 (part), 7A (part).)
64-13 Sec. 1207.034. RIGHT TO DEMAND OR RECEIVE EARLY PAYMENT.
64-14 The holder of an obligation to be refunded by refunding bonds may
64-15 not demand or receive payment of the obligation to be refunded
64-16 before its scheduled maturity date, due date, or redemption date
64-17 unless the proceedings authorizing the refunding bonds specifically
64-18 provide for the earlier payment. (V.A.C.S. Art. 717k, Sec. 7
64-19 (part).)
64-20 Sec. 1207.035. CONFLICT OR INCONSISTENCY WITH OTHER LAWS.
64-21 To the extent of a conflict or inconsistency between this
64-22 subchapter and another law, this subchapter controls. (V.A.C.S.
64-23 Art. 717k, Sec. 9 (part).)
64-24 (Sections 1207.036-1207.060 reserved for expansion)
64-25 SUBCHAPTER C. DIRECT DEPOSIT WITH PAYING AGENT
64-26 Sec. 1207.061. AUTHORITY TO DEPOSIT DIRECTLY. (a) An issuer
64-27 may, in lieu of making a deposit with the comptroller under
65-1 Subchapter B, deposit an amount of money sufficient to provide for
65-2 the payment or redemption of the obligations, including assumed
65-3 obligations, to be refunded or to be paid or redeemed in whole or
65-4 in part without issuing refunding bonds, directly with:
65-5 (1) a paying agent for any of the obligations to be
65-6 refunded, paid, or redeemed; or
65-7 (2) the trustee under a trust indenture, deed of
65-8 trust, or similar instrument providing security for the obligations
65-9 to be refunded, paid, or redeemed.
65-10 (b) An issuer may make a deposit under this section from any
65-11 source, including the proceeds from the sale of the refunding
65-12 bonds. (V.A.C.S. Art. 717k, Sec. 7A (part).)
65-13 Sec. 1207.062. ESCROW AGREEMENT. (a) An issuer may enter
65-14 into an escrow or similar agreement with a paying agent or trustee
65-15 with respect to the safekeeping, investment, administration, and
65-16 disposition of a deposit made under Section 1207.061.
65-17 (b) A deposit under Section 1207.061 may be invested only in
65-18 direct obligations of the United States, including obligations the
65-19 principal of and interest on which are unconditionally guaranteed
65-20 by the United States and which mature and bear interest payable at
65-21 times and in amounts sufficient to provide for the scheduled
65-22 payment or redemption of the obligation to be refunded. The
65-23 obligations may be in book-entry form.
65-24 (c) An issuer shall enter into an agreement under Subsection
65-25 (a) if an obligation to be refunded is scheduled to be paid or
65-26 redeemed on a date later than the next scheduled interest payment
65-27 date on the obligation. (V.A.C.S. Art. 717k, Sec. 7A (part).)
66-1 Sec. 1207.063. DUTY TO COMPLY. A paying agent or trustee
66-2 that enters into an agreement under Section 1207.062 shall comply
66-3 with each term of that agreement and, from the deposited money and
66-4 in the manner and to the extent provided by the agreement, make
66-5 available to any other paying agent or trustee for an obligation of
66-6 the same or a different series of obligations to be refunded, paid,
66-7 or redeemed, the amounts required by the terms of the obligation to
66-8 pay or redeem the principal of and interest on the obligation when
66-9 due. (V.A.C.S. Art. 717k, Sec. 7A (part).)
66-10 Sec. 1207.064. INCONTESTABILITY OF CERTAIN ESCROW AGREEMENTS
66-11 AND CONTRACTS. After the registration of a refunding bond and the
66-12 sale and delivery of the bond to the purchaser, the proceedings
66-13 that authorize the refunding bond, any escrow agreement relating to
66-14 the refunding bond, and any contract providing security or payments
66-15 with respect to the refunding bond are:
66-16 (1) incontestable in any court or other forum for any
66-17 reason; and
66-18 (2) valid and binding obligations in accordance with
66-19 their terms for any purpose. (V.A.C.S. Art. 717k, Sec. 7A (part).)
66-20 (Sections 1207.065-1207.080 reserved for expansion)
66-21 SUBCHAPTER D. EXCHANGE REFUNDING PROCEDURES
66-22 Sec. 1207.081. ISSUANCE IN EXCHANGE FOR OBLIGATION TO BE
66-23 REFUNDED; LIMITATION. (a) Refunding bonds may be issued to be
66-24 exchanged under this subchapter for, and on the surrender and
66-25 cancellation of, the obligations to be refunded.
66-26 (b) The comptroller shall register a refunding bond and
66-27 deliver it to the holder of the obligation to be refunded, in
67-1 accordance with the proceedings authorizing the refunding bond.
67-2 The exchange may be made in one delivery or in installment
67-3 deliveries.
67-4 (c) Refunding bonds may not be issued to be exchanged under
67-5 this subchapter for electric and gas system revenue bonds issued by
67-6 a municipality with a population of more than 900,000. (V.A.C.S.
67-7 Art. 717k-3, Secs. 3 (part), 5 (part).)
67-8 Sec. 1207.082. LIMITATION ON AUTHORITY TO PARTIALLY REFUND.
67-9 An issuer may issue refunding bonds to be exchanged under this
67-10 subchapter to refund part of an outstanding issue of bonds, notes,
67-11 or other obligations only if the issuer demonstrates to the
67-12 attorney general at the time of the refunding that, based on then
67-13 current conditions, the issuer will have adequate resources
67-14 available at the times required to provide for the payment of the
67-15 unrefunded part of the outstanding issue when due. (V.A.C.S.
67-16 Art. 717k-3, Sec. 5 (part).)
67-17 Sec. 1207.083. OTHER POWERS OF ISSUER. To the extent
67-18 necessary or convenient in carrying out a power under this
67-19 subchapter, an issuer may use the provisions of any other law that
67-20 does not conflict with this subchapter. (V.A.C.S. Art. 717k-3,
67-21 Sec. 7 (part).)
67-22 Sec. 1207.084. CONFLICT OR INCONSISTENCY WITH OTHER LAWS.
67-23 When bonds are being issued to be exchanged under this subchapter,
67-24 to the extent of a conflict or inconsistency between this
67-25 subchapter and another law, this subchapter controls. (V.A.C.S.
67-26 Art. 717k-3, Sec. 7 (part).)
67-27 (Chapters 1208-1230 reserved for expansion)
68-1 SUBTITLE B. PROVISIONS APPLICABLE TO SECURITIES
68-2 ISSUED BY STATE GOVERNMENT
68-3 CHAPTER 1231. BOND REVIEW BOARD
68-4 SUBCHAPTER A. GENERAL PROVISIONS
68-5 Sec. 1231.001. DEFINITIONS
68-6 Sec. 1231.002. CERTAIN RIGHTS OF ISSUERS NOT AFFECTED
68-7 (Sections 1231.003-1231.020 reserved for expansion)
68-8 SUBCHAPTER B. BOND REVIEW BOARD
68-9 Sec. 1231.021. BOND REVIEW BOARD; PRESIDING OFFICER
68-10 Sec. 1231.022. RULES
68-11 (Sections 1231.023-1231.040 reserved for expansion)
68-12 SUBCHAPTER C. BOARD APPROVAL OF ISSUANCE OF STATE SECURITY
68-13 Sec. 1231.041. APPROVAL OF STATE SECURITY
68-14 Sec. 1231.042. APPLICATION FOR APPROVAL OF ISSUANCE OF
68-15 STATE SECURITY
68-16 Sec. 1231.043. APPROVAL OF ISSUANCE
68-17 Sec. 1231.044. STATE AUDITOR REVIEW OF STATE SECURITY
68-18 PROCEEDS; REPORT
68-19 (Sections 1231.045-1231.060 reserved for expansion)
68-20 SUBCHAPTER D. REPORTS TO LEGISLATURE
68-21 Sec. 1231.061. REVIEW OF CERTAIN UNISSUED STATE SECURITIES;
68-22 BIENNIAL REPORT TO LEGISLATURE
68-23 Sec. 1231.062. BIENNIAL DEBT STATISTICS REPORT
68-24 (Sections 1231.063-1231.080 reserved for expansion)
68-25 SUBCHAPTER E. SECURITY TRANSACTION REPORTS
68-26 Sec. 1231.081. GENERAL REQUIREMENTS
68-27 Sec. 1231.082. REPORT OF STATE SECURITY SOLD COMPETITIVELY
69-1 Sec. 1231.083. REPORT OF STATE SECURITY SOLD THROUGH
69-2 NEGOTIATION
69-3 Sec. 1231.084. REPORT OF STATE SECURITY SOLD THROUGH
69-4 PRIVATE PLACEMENT
69-5 Sec. 1231.085. REPORT OF REFUNDING OR ESCROW-RELATED
69-6 TRANSACTION
69-7 Sec. 1231.086. ANNUAL BOARD REPORTS
69-8 (Sections 1231.087-1231.100 reserved for expansion)
69-9 SUBCHAPTER F. BOND FINANCE OFFICE
69-10 Sec. 1231.101. BOND FINANCE OFFICE
69-11 Sec. 1231.102. ANNUAL REPORT
69-12 Sec. 1231.103. PROVISION OF INFORMATION RELATING TO OTHER
69-13 BONDS
69-14 CHAPTER 1231. BOND REVIEW BOARD
69-15 SUBCHAPTER A. GENERAL PROVISIONS
69-16 Sec. 1231.001. DEFINITIONS. In this chapter:
69-17 (1) "Board" means the Bond Review Board.
69-18 (2) "State security" means:
69-19 (A) an obligation, including a bond, issued by:
69-20 (i) a state agency;
69-21 (ii) an entity that is expressly created
69-22 by statute and has statewide jurisdiction; or
69-23 (iii) an entity issuing the obligation on
69-24 behalf of this state or on behalf of an entity described by
69-25 Subparagraph (i) or (ii); or
69-26 (B) an installment sale or lease-purchase
69-27 obligation that is issued by or on behalf of an entity described by
70-1 Paragraph (A) and that has:
70-2 (i) a stated term of more than five years;
70-3 or
70-4 (ii) an initial principal amount of more
70-5 than $250,000. (V.A.C.S. Art. 717k-7, Secs. 1(1), (3).)
70-6 Sec. 1231.002. CERTAIN RIGHTS OF ISSUERS NOT AFFECTED. This
70-7 chapter does not affect the right of an issuer of state securities
70-8 to select its own bond counsel, underwriter, financial advisor, or
70-9 other service provider in connection with the issuance of state
70-10 securities. (V.A.C.S. Art. 717k-7, Sec. 7(b).)
70-11 (Sections 1231.003-1231.020 reserved for expansion)
70-12 SUBCHAPTER B. BOND REVIEW BOARD
70-13 Sec. 1231.021. BOND REVIEW BOARD; PRESIDING OFFICER. (a)
70-14 The board is composed of:
70-15 (1) the governor;
70-16 (2) the lieutenant governor;
70-17 (3) the speaker of the house of representatives; and
70-18 (4) the comptroller.
70-19 (b) The governor is the presiding officer of the board.
70-20 (c) A member of the board may designate another person to
70-21 act on the member's behalf.
70-22 (d) If the speaker of the house of representatives is not
70-23 permitted by the constitution of this state from serving as a
70-24 voting member, the speaker serves as a nonvoting member. (V.A.C.S.
70-25 Art. 601d-1, Secs. 2(a), (b), (c); Art. 717k-7, Sec. 2.)
70-26 Sec. 1231.022. RULES. The board may adopt rules:
70-27 (1) relating to applications for review, the review
71-1 process, and reporting requirements;
71-2 (2) exempting certain state securities from the
71-3 application of Subchapter C if the board finds that review of the
71-4 securities is unnecessary or impractical; and
71-5 (3) delegating to the director of the bond finance
71-6 office the authority to approve a state security on behalf of the
71-7 board. (V.A.C.S. Art. 601d-1, Sec. 2(e); Art. 717k-7, Secs. 3(c),
71-8 (d), (e).)
71-9 (Sections 1231.023-1231.040 reserved for expansion)
71-10 SUBCHAPTER C. BOARD APPROVAL OF ISSUANCE OF STATE SECURITY
71-11 Sec. 1231.041. APPROVAL OF STATE SECURITY. An entity,
71-12 including a state agency, may not issue a state security unless:
71-13 (1) the board approves the issuance; or
71-14 (2) the security is exempted under Section
71-15 1231.022(2). (V.A.C.S. Art. 717k-7, Sec. 3(a) (part).)
71-16 Sec. 1231.042. APPLICATION FOR APPROVAL OF ISSUANCE OF STATE
71-17 SECURITY. To obtain the approval of the board to issue a state
71-18 security, a state agency or other entity must:
71-19 (1) apply to the board, in the manner prescribed by
71-20 the board; and
71-21 (2) file with the application any information,
71-22 including documents, required by the board. (V.A.C.S. Art. 717k-7,
71-23 Sec. 3(a) (part).)
71-24 Sec. 1231.043. APPROVAL OF ISSUANCE. The board shall
71-25 approve the issuance of a state security if, after examining the
71-26 application and documents or items of information required by the
71-27 board, the board determines that the issuance is advisable.
72-1 (V.A.C.S. Art. 717k-7, Sec. 3(b).)
72-2 Sec. 1231.044. STATE AUDITOR REVIEW OF STATE SECURITY
72-3 PROCEEDS; REPORT. (a) On the board's request, the state auditor
72-4 shall review the disposition of state security proceeds.
72-5 (b) The state auditor shall prepare a report of the review
72-6 and file a copy of the report with:
72-7 (1) the governor;
72-8 (2) the lieutenant governor;
72-9 (3) the speaker of the house of representatives;
72-10 (4) the secretary of state; and
72-11 (5) each member of the legislature. (V.A.C.S.
72-12 Art. 717k-7, Sec. 6.)
72-13 (Sections 1231.045-1231.060 reserved for expansion)
72-14 SUBCHAPTER D. REPORTS TO LEGISLATURE
72-15 Sec. 1231.061. REVIEW OF CERTAIN UNISSUED STATE SECURITIES;
72-16 BIENNIAL REPORT TO LEGISLATURE. (a) The board shall review all
72-17 state securities, including general obligation and revenue bonds,
72-18 that have been authorized but are unissued.
72-19 (b) Not later than October 31 of each even-numbered year,
72-20 the board shall submit to the legislature a report that recommends
72-21 whether the authorization for a state security shall be revoked.
72-22 (V.A.C.S. Art. 717k-7, Sec. 7C, as added Acts 74th Leg., R.S., Ch.
72-23 376.)
72-24 Sec. 1231.062. BIENNIAL DEBT STATISTICS REPORT. (a) Not
72-25 later than October 31 of each even-numbered year, the board shall
72-26 submit to the legislature a statistical report relating to:
72-27 (1) state securities; and
73-1 (2) bonds and other debt obligations issued by local
73-2 governments.
73-3 (b) A report must include:
73-4 (1) total debt service as a percentage of total
73-5 expenditures;
73-6 (2) tax-supported debt service as a percentage of
73-7 general revenue expenditure;
73-8 (3) per capita total debt;
73-9 (4) per capita tax-supported debt;
73-10 (5) total debt and tax-supported debt as a percentage
73-11 of personal income;
73-12 (6) total personal income per capita;
73-13 (7) total debt per capita as a percentage of total
73-14 personal income per capita;
73-15 (8) total debt and tax-supported debt as a percentage
73-16 of real property valuations;
73-17 (9) total debt and tax-supported debt as a percentage
73-18 of annual revenues and expenditures;
73-19 (10) principal required to be repaid in five years and
73-20 principal required to be repaid in 10 years;
73-21 (11) growth rates of total debt per capita and total
73-22 debt per dollar of personal income;
73-23 (12) recent trends in the issuance of short-term
73-24 notes;
73-25 (13) recent trends in issuance costs;
73-26 (14) savings from recent refundings;
73-27 (15) recent trends in capitalized interest use;
74-1 (16) debt service coverage ratios, if applicable; and
74-2 (17) other information the board considers relevant.
74-3 (c) The attorney general, each state agency, and each local
74-4 government shall provide to the board, at the times required by the
74-5 board, information that the board determines to be necessary to
74-6 prepare the statistical report. (V.A.C.S. Art. 717k-7, Sec. 7A.)
74-7 (Sections 1231.063-1231.080 reserved for expansion)
74-8 SUBCHAPTER E. SECURITY TRANSACTION REPORTS
74-9 Sec. 1231.081. GENERAL REQUIREMENTS. (a) Each entity that
74-10 issues a state security shall report to the board its security
74-11 transactions.
74-12 (b) A report must:
74-13 (1) be itemized;
74-14 (2) state in dollars the information required by
74-15 Subsection (c) or Sections 1231.082-1231.085 for money paid to each
74-16 business and classify each of the businesses that money was paid to
74-17 according to:
74-18 (A) the race, ethnicity, and gender of the
74-19 controlling ownership of each business; and
74-20 (B) whether the business is domestic or foreign;
74-21 and
74-22 (3) be made in compliance with board rule.
74-23 (c) For any security transaction, the report must state each
74-24 issuance cost, including the cost of:
74-25 (1) bond counsel;
74-26 (2) financial advisor;
74-27 (3) rating agencies;
75-1 (4) official statement preparation;
75-2 (5) official statement printing;
75-3 (6) bond printing;
75-4 (7) paying agent or registrar;
75-5 (8) escrow agent;
75-6 (9) escrow verification agent;
75-7 (10) trustee;
75-8 (11) attorney general;
75-9 (12) dealer fee;
75-10 (13) remarketing fee; and
75-11 (14) credit enhancement. (V.A.C.S. Art. 717k-7, Secs.
75-12 7C(a), (b), (c), (d), as added Acts 74th Leg., R.S., Ch. 745.)
75-13 Sec. 1231.082. REPORT OF STATE SECURITY SOLD COMPETITIVELY.
75-14 A report concerning a state security that is sold competitively
75-15 must state:
75-16 (1) the components of the gross spread, including:
75-17 (A) gross takedown;
75-18 (B) expenses; and
75-19 (C) syndicate profit and loss;
75-20 (2) a summary of obligation orders and allotments by
75-21 maturity, firm, and order type; and
75-22 (3) each syndicate firm's gross takedown and share of
75-23 syndicate profit or loss. (V.A.C.S. Art. 717k-7, Sec. 7C(e), as
75-24 added Acts 74th Leg., R.S., Ch. 745.)
75-25 Sec. 1231.083. REPORT OF STATE SECURITY SOLD THROUGH
75-26 NEGOTIATION. A report concerning a state security sold through
75-27 negotiation must state:
76-1 (1) the components of the spread, including:
76-2 (A) management fee;
76-3 (B) structuring fee;
76-4 (C) underwriting risk;
76-5 (D) takedown; and
76-6 (E) spread expenses;
76-7 (2) each firm's share of underwriting risk;
76-8 (3) the underwriter's counsel;
76-9 (4) a summary of obligation orders and allotments by
76-10 maturity, firm, and order type; and
76-11 (5) each syndicate firm's share of management fee,
76-12 structuring fee, underwriting risk fee, and takedown. (V.A.C.S.
76-13 Art. 717k-7, Sec. 7C(f), as added Acts 74th Leg., R.S., Ch. 745.)
76-14 Sec. 1231.084. REPORT OF STATE SECURITY SOLD THROUGH PRIVATE
76-15 PLACEMENT. A report concerning a state security sold through
76-16 private placement must state:
76-17 (1) each component of the private placement fee,
76-18 including the:
76-19 (A) management fee;
76-20 (B) placement agent fee; and
76-21 (C) expenses; and
76-22 (2) the placement agent's counsel's fee. (V.A.C.S.
76-23 Art. 717k-7, Sec. 7C(g), as added Acts 74th Leg., R.S., Ch. 745.)
76-24 Sec. 1231.085. REPORT OF REFUNDING OR ESCROW-RELATED
76-25 TRANSACTION. A report concerning a refunding or escrow-related
76-26 transaction must state the spread paid on the purchase or sale of
76-27 an escrow security. (V.A.C.S. Art. 717k-7, Sec. 7C(h), as added
77-1 Acts 74th Leg., R.S., Ch. 745.)
77-2 Sec. 1231.086. ANNUAL BOARD REPORTS. (a) On May 15 of each
77-3 year, the board shall send to the joint committee charged with
77-4 monitoring the implementation of goals for participation by
77-5 historically underutilized businesses a report of the information
77-6 received under this subchapter for the six months preceding March 1
77-7 of that year.
77-8 (b) On November 15 of each year, the board shall send to the
77-9 lieutenant governor, the speaker of the house, each member of the
77-10 legislature, and the joint committee a report of the information
77-11 received under this subchapter for the fiscal year ending August 31
77-12 of that year. (V.A.C.S. Art. 717k-7, Secs. 7C(i), (j), as added
77-13 Acts 74th Leg., R.S., Ch. 745.)
77-14 (Sections 1231.087-1231.100 reserved for expansion)
77-15 SUBCHAPTER F. BOND FINANCE OFFICE
77-16 Sec. 1231.101. BOND FINANCE OFFICE. (a) The board shall
77-17 appoint a director to:
77-18 (1) manage the bond finance office; and
77-19 (2) select the staff of the office.
77-20 (b) When practical, the office shall make use of:
77-21 (1) the resources of the Legislative Budget Board; and
77-22 (2) the offices of the governor and the comptroller.
77-23 (V.A.C.S. Art. 717k-7, Sec. 4.)
77-24 Sec. 1231.102. ANNUAL REPORT. Not later than the 90th day
77-25 after the end of each state fiscal year, the bond finance office
77-26 shall publish a report listing:
77-27 (1) the amount of state securities outstanding;
78-1 (2) applicable repayment schedules; and
78-2 (3) other information the office considers relevant.
78-3 (V.A.C.S. Art. 717k-7, Sec. 5.)
78-4 Sec. 1231.103. PROVISION OF INFORMATION RELATING TO OTHER
78-5 BONDS. The bond finance office may provide information for
78-6 inclusion in a prospectus related to any bond issued under
78-7 authority of state law or municipal ordinance. (V.A.C.S.
78-8 Art. 717k-7, Sec. 7(a).)
78-9 CHAPTER 1232. TEXAS PUBLIC FINANCE AUTHORITY
78-10 SUBCHAPTER A. GENERAL PROVISIONS
78-11 Sec. 1232.001. SHORT TITLE
78-12 Sec. 1232.002. PURPOSE
78-13 Sec. 1232.003. DEFINITIONS
78-14 Sec. 1232.004. STATE LEASE FUND ACCOUNT
78-15 Sec. 1232.005. APPLICATION OF STATE FUNDS REFORM ACT
78-16 (Sections 1232.006-1232.050 reserved for expansion)
78-17 SUBCHAPTER B. TEXAS PUBLIC FINANCE AUTHORITY
78-18 Sec. 1232.051. TEXAS PUBLIC FINANCE AUTHORITY
78-19 Sec. 1232.052. COMPOSITION OF GOVERNING BOARD
78-20 Sec. 1232.053. TERMS
78-21 Sec. 1232.054. GROUNDS FOR REMOVAL
78-22 Sec. 1232.055. BOARD MEMBER TRAINING
78-23 Sec. 1232.056. OFFICERS; MEETINGS
78-24 Sec. 1232.057. PUBLIC TESTIMONY AT BOARD MEETINGS
78-25 Sec. 1232.058. COMPENSATION AND EXPENSES
78-26 Sec. 1232.059. STAFF; CONSULTANTS
78-27 Sec. 1232.060. CONFLICT OF INTEREST
79-1 Sec. 1232.061. INFORMATION ON RESPONSIBILITIES OF BOARD
79-2 MEMBERS AND EMPLOYEES
79-3 Sec. 1232.062. SEPARATION OF POLICYMAKING AND MANAGEMENT
79-4 RESPONSIBILITIES
79-5 Sec. 1232.063. EQUAL EMPLOYMENT OPPORTUNITY
79-6 Sec. 1232.064. CAREER LADDER; EMPLOYEE PERFORMANCE
79-7 EVALUATIONS
79-8 Sec. 1232.065. COMPLIANCE WITH LAWS RELATING TO
79-9 ACCESSIBILITY
79-10 Sec. 1232.066. BOARD AUTHORITY
79-11 Sec. 1232.067. GENERAL POWERS
79-12 Sec. 1232.068. EMINENT DOMAIN
79-13 Sec. 1232.069. ANNUAL FINANCIAL REPORT
79-14 Sec. 1232.070. INFORMATION ON COMPLAINTS
79-15 Sec. 1232.071. RELATIONSHIP TO PREVIOUS BOARD
79-16 Sec. 1232.072. SUNSET PROVISION
79-17 (Sections 1232.073-1232.100 reserved for expansion)
79-18 SUBCHAPTER C. OBLIGATIONS
79-19 Sec. 1232.101. ISSUANCE OF BONDS FOR CERTAIN STATE AGENCIES
79-20 Sec. 1232.102. ISSUANCE OF BONDS FOR STATE OFFICE BUILDINGS
79-21 Sec. 1232.103. ISSUANCE OF OBLIGATIONS FOR EQUIPMENT
79-22 Sec. 1232.104. ISSUANCE OF OBLIGATIONS FOR ALTERNATIVE FUEL
79-23 PROJECTS
79-24 Sec. 1232.105. AGGREGATE LIMIT ON ISSUANCE OF OBLIGATIONS FOR
79-25 ALTERNATIVE FUEL PROJECTS
79-26 Sec. 1232.106. EVALUATION OF APPLICATION FOR ASSISTANCE WITH
79-27 ALTERNATIVE FUEL PROJECTS
80-1 Sec. 1232.107. PURCHASE OF OBLIGATIONS FOR ALTERNATIVE FUEL
80-2 PROJECTS
80-3 Sec. 1232.108. LEGISLATIVE AUTHORIZATION REQUIRED
80-4 Sec. 1232.109. AUTHORIZATION TO PURCHASE CERTAIN REAL
80-5 PROPERTY
80-6 Sec. 1232.110. SPECIFIC PROJECTS IN TRAVIS COUNTY
80-7 Sec. 1232.111. SPECIFIC PROJECTS OUTSIDE TRAVIS COUNTY
80-8 Sec. 1232.112. BOND REVIEW BOARD APPROVAL
80-9 Sec. 1232.113. OBLIGATION ISSUANCE ORIENTATION; INFORMATION TO
80-10 AND FROM CLIENT AGENCIES
80-11 Sec. 1232.114. PROJECT ANALYSIS
80-12 Sec. 1232.115. EXPENSES INCLUDED IN PRINCIPAL AMOUNT
80-13 Sec. 1232.116. MANNER OF REPAYMENT
80-14 Sec. 1232.117. STATE DEBT NOT CREATED
80-15 Sec. 1232.118. ORDER OR RESOLUTION AUTHORIZING ISSUANCE OF
80-16 OBLIGATIONS
80-17 Sec. 1232.119. ADOPTION AND EXECUTION OF INSTRUMENTS
80-18 Sec. 1232.120. EXEMPTION FROM TAXATION
80-19 Sec. 1232.121. CERTIFICATION AND DEPOSIT OF PROCEEDS OF
80-20 OBLIGATIONS
80-21 Sec. 1232.122. COMMENCEMENT OF CONSTRUCTION, PURCHASE, OR
80-22 LEASE
80-23 Sec. 1232.123. INVESTMENT OF BOND PROCEEDS
80-24 (Sections 1232.124-1232.200 reserved for expansion)
80-25 SUBCHAPTER D. LEASE AND CONVEYANCE OF PROPERTY BY AUTHORITY
80-26 Sec. 1232.201. RENT AND FEES
80-27 Sec. 1232.202. CONTRACTS CONTINGENT ON LEGISLATIVE
81-1 APPROPRIATIONS
81-2 Sec. 1232.203. LEASE OF SPACE TO CHILD CARE DEVELOPMENT
81-3 BOARD
81-4 Sec. 1232.204. LEASING PREFERENCE
81-5 Sec. 1232.205. LEASE OF SPACE TO OUTSIDE ENTITIES
81-6 Sec. 1232.206. PROPERTY CONVEYANCE
81-7 CHAPTER 1232. TEXAS PUBLIC FINANCE AUTHORITY
81-8 SUBCHAPTER A. GENERAL PROVISIONS
81-9 Sec. 1232.001. SHORT TITLE. This chapter may be cited as
81-10 the Texas Public Finance Authority Act. (V.A.C.S. Art. 601d, Sec.
81-11 1.)
81-12 Sec. 1232.002. PURPOSE. The purpose of this chapter is to
81-13 provide a method of financing for:
81-14 (1) the acquisition or construction of buildings in
81-15 Travis County; and
81-16 (2) the purchase or lease of equipment by executive or
81-17 judicial branch state agencies. (V.A.C.S. Art. 601d, Sec. 2.)
81-18 Sec. 1232.003. DEFINITIONS. In this chapter:
81-19 (1) "Authority" means the Texas Public Finance
81-20 Authority.
81-21 (2) "Board" means the board of directors of the
81-22 authority.
81-23 (3) "Building" means:
81-24 (A) a structure used by a state agency to
81-25 conduct state business; and
81-26 (B) the major equipment or personal property
81-27 related functionally to a structure used by a state agency to
82-1 conduct state business.
82-2 (4) "Commission" means the General Services
82-3 Commission.
82-4 (5) "Computer equipment" means a telecommunications
82-5 device or system, an automated information system, a computer on
82-6 which an information system is automated, and computer software.
82-7 (6) "Construction" means the erection, improvement,
82-8 repair, renovation, or remodeling of a building.
82-9 (7) "Equipment" means a fixed asset, other than land
82-10 or a building, used by a state agency to conduct state business.
82-11 The term includes computer equipment.
82-12 (8) "Obligation" means a bond, note, certificate of
82-13 participation, certificate of obligation, or interest in a
82-14 contract.
82-15 (9) "State agency" means a board, commission,
82-16 department, office, agency, institution of higher education, or
82-17 other governmental entity in the executive, judicial, or
82-18 legislative branch of state government. (V.A.C.S. Art. 601d, Sec.
82-19 1A.)
82-20 Sec. 1232.004. STATE LEASE FUND ACCOUNT. (a) The state
82-21 lease fund account is an account in the general revenue fund and
82-22 may be used only for a purpose designated by law.
82-23 (b) The state lease fund account may be used to finance an
82-24 appropriation to the commission or a state agency or directly to
82-25 the authority on behalf of a state agency to pay required rents,
82-26 fees, and installments to the authority.
82-27 (c) After all obligations have been paid or provided for,
83-1 the legislature may transfer money deposited in the state lease
83-2 fund account to the Texas capital trust fund account for other
83-3 purposes.
83-4 (d) The amount in the state lease fund account that is in
83-5 excess of amounts needed for debt service and is unencumbered shall
83-6 be transferred at the end of each biennium to the undedicated
83-7 portion of the general revenue fund. (V.A.C.S. Art. 601d, Sec. 26;
83-8 Acts 74th Leg., R.S., Ch. 1058, Sec. 3 (part).)
83-9 Sec. 1232.005. APPLICATION OF STATE FUNDS REFORM ACT. All
83-10 money paid to the authority under this chapter is subject to
83-11 Subchapter F, Chapter 404. (V.A.C.S. Art. 601d, Sec. 26A.)
83-12 (Sections 1232.006-1232.050 reserved for expansion)
83-13 SUBCHAPTER B. TEXAS PUBLIC FINANCE AUTHORITY
83-14 Sec. 1232.051. TEXAS PUBLIC FINANCE AUTHORITY. The Texas
83-15 Public Finance Authority is a public authority and a body politic
83-16 and corporate. (V.A.C.S. Art. 601d, Sec. 3.)
83-17 Sec. 1232.052. COMPOSITION OF GOVERNING BOARD. (a) The
83-18 authority is governed by a board of directors composed of six
83-19 members appointed by the governor with the advice and consent of
83-20 the senate.
83-21 (b) A person is not eligible for appointment as a member of
83-22 the board if the person or the person's spouse:
83-23 (1) is employed by or participates in the management
83-24 of a business entity or other organization receiving funds from the
83-25 authority;
83-26 (2) owns or controls, directly or indirectly, more
83-27 than a 10 percent interest in a business entity or other
84-1 organization receiving funds from the authority; or
84-2 (3) uses or receives a substantial amount of tangible
84-3 goods, services, or funds from the authority, other than
84-4 compensation or reimbursement authorized by law for board
84-5 membership, attendance, or expenses.
84-6 (c) Appointments to the board shall be made without regard
84-7 to the race, color, disability, sex, religion, age, or national
84-8 origin of the appointees. (V.A.C.S. Art. 601d, Sec. 4.)
84-9 Sec. 1232.053. TERMS. Members of the board are appointed
84-10 for staggered terms of six years, with two members' terms expiring
84-11 February 1 of each odd-numbered year. (V.A.C.S. Art. 601d, Sec.
84-12 5.)
84-13 Sec. 1232.054. GROUNDS FOR REMOVAL. (a) It is a ground for
84-14 removal from the board that a member:
84-15 (1) violates a prohibition established by Section
84-16 1232.060;
84-17 (2) cannot because of illness or disability discharge
84-18 the member's duties for a substantial part of the term for which
84-19 the member is appointed; or
84-20 (3) is absent from more than half of the regularly
84-21 scheduled board meetings that the member is eligible to attend
84-22 during a calendar year unless the absence is excused by majority
84-23 vote of the board.
84-24 (b) The validity of an action of the board is not affected
84-25 by the fact that it is taken when a ground for removal of a board
84-26 member exists.
84-27 (c) If the executive director of the authority has knowledge
85-1 that a potential ground for removal exists, the executive director
85-2 shall notify the presiding officer of the board of the potential
85-3 ground. The presiding officer shall then notify the governor and
85-4 the attorney general that a potential ground for removal exists.
85-5 If the potential ground for removal involves the presiding officer,
85-6 the executive director shall notify the assistant presiding
85-7 officer, who shall notify the governor and the attorney general
85-8 that a potential ground for removal exists. (V.A.C.S. Art. 601d,
85-9 Sec. 5A.)
85-10 Sec. 1232.055. BOARD MEMBER TRAINING. (a) To be eligible
85-11 to take office as a member of the board, a person appointed to the
85-12 board must complete at least one course of a training program that
85-13 complies with this section.
85-14 (b) The training program must provide information to the
85-15 person regarding:
85-16 (1) the enabling legislation that created the
85-17 authority and the board;
85-18 (2) the programs operated by the authority;
85-19 (3) the role and functions of the authority;
85-20 (4) the rules of the authority, with an emphasis on
85-21 the rules that relate to disciplinary and investigatory authority;
85-22 (5) the current budget for the authority;
85-23 (6) the results of the most recent formal audit of the
85-24 authority;
85-25 (7) the requirements of the:
85-26 (A) open meetings law, Chapter 551;
85-27 (B) public information law, Chapter 552; and
86-1 (C) administrative procedure law, Chapter 2001;
86-2 (8) the requirements of the conflict of interest laws
86-3 and other laws relating to public officials; and
86-4 (9) any applicable ethics policies adopted by the
86-5 authority or the Texas Ethics Commission.
86-6 (c) A person appointed to the board is entitled to
86-7 reimbursement for travel expenses incurred in attending the
86-8 training program, as provided by the General Appropriations Act and
86-9 as if the person were a member of the board. (V.A.C.S. Art. 601d,
86-10 Sec. 5B.)
86-11 Sec. 1232.056. OFFICERS; MEETINGS. (a) The governor shall
86-12 designate a member of the board as the presiding officer to serve
86-13 in that capacity at the pleasure of the governor. The board
86-14 biennially shall elect an assistant presiding officer from its
86-15 members.
86-16 (b) The board shall meet at least once in each calendar
86-17 quarter and shall meet at other times at the call of the presiding
86-18 officer or as prescribed by board rule. (V.A.C.S. Art. 601d, Secs.
86-19 6(a), (c).)
86-20 Sec. 1232.057. PUBLIC TESTIMONY AT BOARD MEETINGS. The
86-21 board shall develop and implement policies that provide the public
86-22 with a reasonable opportunity to appear before the board and to
86-23 speak on any issue under the jurisdiction of the authority.
86-24 (V.A.C.S. Art. 601d, Sec. 6A.)
86-25 Sec. 1232.058. COMPENSATION AND EXPENSES. A board member is
86-26 entitled to:
86-27 (1) a per diem of $50, unless otherwise specified in
87-1 the General Appropriations Act, for each day the member performs
87-2 functions as a board member; and
87-3 (2) reimbursement for actual and necessary expenses
87-4 that the member incurs in performing board functions. (V.A.C.S.
87-5 Art. 601d, Sec. 7.)
87-6 Sec. 1232.059. STAFF; CONSULTANTS. (a) The board shall
87-7 employ persons and contract with consultants necessary for the
87-8 board to perform its functions.
87-9 (b) Employees of the authority are considered to be state
87-10 employees. (V.A.C.S. Art. 601d, Sec. 8.)
87-11 Sec. 1232.060. CONFLICT OF INTEREST. (a) An officer,
87-12 employee, or paid consultant of a Texas trade association in the
87-13 field of public finance may not be a member of the board or an
87-14 employee of the authority who is exempt from the state's position
87-15 classification plan or is compensated at or above the amount
87-16 prescribed by the General Appropriations Act for step 1, salary
87-17 group A17, of the position classification salary schedule.
87-18 (b) A person who is the spouse of an officer, manager, or
87-19 paid consultant of a Texas trade association in the field of public
87-20 finance may not be a member of the board and may not be an employee
87-21 of the authority who is exempt from the state's position
87-22 classification plan or is compensated at or above the amount
87-23 prescribed by the General Appropriations Act for step 1, salary
87-24 group A17, of the position classification salary schedule.
87-25 (c) For the purposes of this section, a Texas trade
87-26 association is a nonprofit, cooperative, and voluntarily joined
87-27 association of business or professional competitors in this state
88-1 designed to assist its members and its industry or profession in
88-2 dealing with mutual business or professional problems and in
88-3 promoting their common interest.
88-4 (d) A person may not serve as a member of the board or act
88-5 as the general counsel to the board or the authority if the person
88-6 is required to register as a lobbyist under Chapter 305 because of
88-7 the person's activities for compensation on behalf of a profession
88-8 related to the operation of the authority. (V.A.C.S. Art. 601d,
88-9 Sec. 8A.)
88-10 Sec. 1232.061. INFORMATION ON RESPONSIBILITIES OF BOARD
88-11 MEMBERS AND EMPLOYEES. The executive director of the authority or
88-12 the executive director's designee shall provide to members of the
88-13 board and to authority employees, as often as necessary,
88-14 information regarding their qualification for office or employment
88-15 under this chapter and their responsibilities under applicable laws
88-16 relating to standards of conduct for state officers or employees.
88-17 (V.A.C.S. Art. 601d, Sec. 8B.)
88-18 Sec. 1232.062. SEPARATION OF POLICYMAKING AND MANAGEMENT
88-19 RESPONSIBILITIES. The board shall develop and implement policies
88-20 that clearly separate the policymaking responsibilities of the
88-21 board and the management responsibilities of the executive director
88-22 and the staff of the authority. (V.A.C.S. Art. 601d, Sec. 8C.)
88-23 Sec. 1232.063. EQUAL EMPLOYMENT OPPORTUNITY. (a) The
88-24 executive director of the authority or the executive director's
88-25 designee shall prepare and maintain a written policy statement to
88-26 assure implementation of a program of equal employment opportunity
88-27 under which all personnel transactions are made without regard to
89-1 race, color, disability, sex, religion, age, or national origin.
89-2 The policy statement must include:
89-3 (1) personnel policies, including policies relating to
89-4 recruitment, evaluation, selection, appointment, training, and
89-5 promotion of personnel that are in compliance with requirements of
89-6 Chapter 21, Labor Code;
89-7 (2) a comprehensive analysis of the authority
89-8 workforce that meets federal and state guidelines;
89-9 (3) procedures by which a determination can be made
89-10 about the extent of underuse in the authority workforce of all
89-11 persons for whom federal or state guidelines encourage a more
89-12 equitable balance; and
89-13 (4) reasonable methods to appropriately address those
89-14 areas of underuse.
89-15 (b) A policy statement prepared under Subsection (a) must
89-16 cover an annual period, be updated annually and reviewed by the
89-17 Commission on Human Rights for compliance with Subsection (a)(1),
89-18 and be filed with the governor's office.
89-19 (c) The governor's office shall deliver a biennial report to
89-20 the legislature based on the information received under Subsection
89-21 (b). The report may be made separately or as a part of other
89-22 biennial reports made to the legislature. (V.A.C.S. Art. 601d,
89-23 Sec. 8D.)
89-24 Sec. 1232.064. CAREER LADDER; EMPLOYEE PERFORMANCE
89-25 EVALUATIONS. (a) The executive director of the authority or the
89-26 executive director's designee shall develop an intra-agency career
89-27 ladder program that addresses opportunities for mobility and
90-1 advancement for employees within the authority. The program shall
90-2 require intra-agency posting of all positions concurrently with any
90-3 public posting.
90-4 (b) The executive director of the authority or the executive
90-5 director's designee shall develop a system of annual performance
90-6 evaluations that are based on documented employee performance. All
90-7 merit pay for authority employees must be based on the system
90-8 established under this subsection. (V.A.C.S. Art. 601d, Sec. 8E.)
90-9 Sec. 1232.065. COMPLIANCE WITH LAWS RELATING TO
90-10 ACCESSIBILITY. The authority shall comply with federal and state
90-11 laws related to program and facility accessibility. (V.A.C.S.
90-12 Art. 601d, Sec. 8F.)
90-13 Sec. 1232.066. BOARD AUTHORITY. (a) The board's authority
90-14 under this chapter is limited to the financing of the acquisition
90-15 or construction of a building or the purchase or lease of
90-16 equipment.
90-17 (b) The board's authority does not affect the authority of
90-18 the commission or any other state agency.
90-19 (c) Buildings and equipment financed by the authority under
90-20 this chapter do not become part of other property to which they may
90-21 be attached or into which they may be incorporated, without regard
90-22 to whether the other property is real or personal. (V.A.C.S.
90-23 Art. 601d, Sec. 11.)
90-24 Sec. 1232.067. GENERAL POWERS. The board may:
90-25 (1) exercise, to the extent practicable, all powers
90-26 given to a corporation under the general laws of the state;
90-27 (2) have perpetual succession by its corporate name;
91-1 (3) sue and be sued in its corporate name;
91-2 (4) adopt a seal for use as the board considers
91-3 appropriate;
91-4 (5) accept gifts; and
91-5 (6) adopt rules and perform all functions reasonably
91-6 necessary for the board to administer its functions prescribed by
91-7 this chapter. (V.A.C.S. Art. 601d, Sec. 21.)
91-8 Sec. 1232.068. EMINENT DOMAIN. The authority may exercise
91-9 the power of eminent domain for the purposes set forth in this
91-10 chapter in connection with the acquisition or construction of a
91-11 building that is authorized as provided by Section 1232.108.
91-12 (V.A.C.S. Art. 601d, Sec. 30.)
91-13 Sec. 1232.069. ANNUAL FINANCIAL REPORT. The board,
91-14 authority, or executive director of the authority shall prepare
91-15 annually a complete and detailed written report accounting for all
91-16 funds received and disbursed by the authority during the preceding
91-17 fiscal year. The annual report must meet the reporting
91-18 requirements applicable to financial reporting provided in the
91-19 General Appropriations Act. (V.A.C.S. Art. 601d, Sec. 26B.)
91-20 Sec. 1232.070. INFORMATION ON COMPLAINTS. (a) The
91-21 authority shall keep a file about each written complaint filed with
91-22 the authority that the authority has authority to resolve. The
91-23 authority shall provide to the person filing the complaint and the
91-24 persons complained about the authority's policies and procedures
91-25 relating to complaint investigation and resolution. The authority,
91-26 at least quarterly and until final disposition of the complaint,
91-27 shall notify the person filing the complaint and the persons
92-1 complained about of the status of the complaint unless the notice
92-2 would jeopardize an undercover investigation.
92-3 (b) The authority shall keep information about each
92-4 complaint filed with the authority. The information must include:
92-5 (1) the date the complaint is received;
92-6 (2) the name of the complainant;
92-7 (3) the subject matter of the complaint;
92-8 (4) a record of all persons contacted in relation to
92-9 the complaint;
92-10 (5) a summary of the results of the review or
92-11 investigation of the complaint; and
92-12 (6) for complaints for which the authority took no
92-13 action, an explanation of the reason the complaint was closed
92-14 without action. (V.A.C.S. Art. 601d, Sec. 8G.)
92-15 Sec. 1232.071. RELATIONSHIP TO PREVIOUS BOARD. (a) The
92-16 Texas Public Finance Authority owns the property formerly owned by,
92-17 and is the successor to each lease or rental contract entered into
92-18 by, the Texas Public Building Authority created by Chapter 700,
92-19 Acts of the 68th Legislature, Regular Session, 1983.
92-20 (b) An obligation contracted or assumed by the Texas Public
92-21 Building Authority with respect to a property or contract described
92-22 by Subsection (a) is an obligation of the Texas Public Finance
92-23 Authority. (V.A.C.S. Art. 601d, Sec. 32 (part).)
92-24 Sec. 1232.072. SUNSET PROVISION. The Texas Public Finance
92-25 Authority is subject to Chapter 325 (Texas Sunset Act). Unless
92-26 continued in existence as provided by that chapter, the authority
92-27 is abolished and this chapter expires September 1, 2009. (V.A.C.S.
93-1 Art. 601d, Sec. 31.)
93-2 (Sections 1232.073-1232.100 reserved for expansion)
93-3 SUBCHAPTER C. OBLIGATIONS
93-4 Sec. 1232.101. ISSUANCE OF BONDS FOR CERTAIN STATE AGENCIES.
93-5 (a) With respect to all bonds authorized to be issued by the Texas
93-6 Military Facilities Commission, Texas National Research Laboratory
93-7 Commission, Parks and Wildlife Department, Texas Low-Level
93-8 Radioactive Waste Disposal Authority, and each institution of
93-9 higher education authorized to issue bonds under Chapter 55,
93-10 Education Code, the authority has the exclusive authority to act on
93-11 behalf of those entities in issuing bonds on their behalf. In
93-12 connection with those issuances and with the issuance of refunding
93-13 bonds on behalf of those entities, the authority is subject to all
93-14 rights, duties, and conditions surrounding issuance previously
93-15 applicable to the issuing entity under the statute authorizing the
93-16 issuance. A reference in an authorizing statute to the entity on
93-17 whose behalf the bonds are being issued applies equally to the
93-18 authority in its capacity as issuer on behalf of the entity.
93-19 (b) Subsection (a) does not apply to:
93-20 (1) The University of Texas System, The Texas A&M
93-21 University System, or a component of those systems;
93-22 (2) an institution of higher education authorized to
93-23 issue bonds under Section 17, Article VII, Texas Constitution; or
93-24 (3) bonds authorized to be issued by a system,
93-25 component, or institution described by Subdivision (1) or (2).
93-26 (c) Notwithstanding any other provision of this section,
93-27 with respect to all bonds authorized to be issued by Midwestern
94-1 State University, Stephen F. Austin State University, or Texas
94-2 Southern University, the authority has the exclusive authority to
94-3 act on behalf of those institutions in issuing bonds on their
94-4 behalf. In connection with those issuances and with the issuance
94-5 of refunding bonds on behalf of those institutions, the authority
94-6 is subject to all rights, duties, and conditions surrounding
94-7 issuance previously applicable to the issuing institution under the
94-8 statute authorizing the issuance. All references in an authorizing
94-9 statute to the institution on whose behalf the bonds are being
94-10 issued apply equally to the authority in its capacity as issuer on
94-11 behalf of the institution. (V.A.C.S. Art. 601d, Sec. 9B.)
94-12 Sec. 1232.102. ISSUANCE OF BONDS FOR STATE OFFICE BUILDINGS.
94-13 (a) The board may issue and sell bonds in the name of the
94-14 authority to finance the acquisition or construction of buildings
94-15 in Travis County. After receiving a request described by Section
94-16 2166.452, the board may issue bonds in amounts not exceeding the
94-17 previously authorized amount of bonds plus five percent of the
94-18 acquisition cost of the property, as described in the request.
94-19 (b) The board shall promptly issue and sell bonds in the
94-20 name of the authority under this chapter to finance the acquisition
94-21 or construction of a building that has been authorized in
94-22 accordance with this chapter or under Section 2166.452 or 2166.453.
94-23 (c) The commission or other state agency involved in
94-24 acquiring or constructing a building financed by bonds issued under
94-25 this chapter shall accomplish its statutory authority as if the
94-26 building were financed by legislative appropriation. The board and
94-27 the commission or other state agency involved in the acquisition or
95-1 construction of a building shall adopt a memorandum of
95-2 understanding that defines the division of authority between the
95-3 board and the commission or other agency. (V.A.C.S. Art. 601d,
95-4 Secs. 9(a), (b) (part), (c).)
95-5 Sec. 1232.103. ISSUANCE OF OBLIGATIONS FOR EQUIPMENT.
95-6 (a) The authority may issue and sell obligations for the financing
95-7 of:
95-8 (1) a lease or other agreement that concerns equipment
95-9 that an executive or judicial branch state agency has purchased or
95-10 leased or intends to purchase or lease; or
95-11 (2) a package of agreements described by Subdivision
95-12 (1) that involves one or more state agencies.
95-13 (b) An obligation issued by the authority is payable under
95-14 an agreement that may be in the nature of:
95-15 (1) a lease under which the authority leases equipment
95-16 from a vendor for sublease to the commission or another state
95-17 agency;
95-18 (2) a purchase by the authority of equipment and the
95-19 lease of that equipment to either:
95-20 (A) the commission for the benefit of a state
95-21 agency; or
95-22 (B) a state agency other than the commission;
95-23 (3) a purchase by the authority of equipment and the
95-24 sale of that equipment to a state agency on an installment payment
95-25 basis; or
95-26 (4) any similar agreement.
95-27 (c) If an agreement is between the authority and a state
96-1 agency or between a vendor and a state agency, the commission shall
96-2 nevertheless perform its functions as purchasing agent for the
96-3 state, with the funds obtained under this section used solely to
96-4 finance the agreement. The board and the commission shall adopt a
96-5 memorandum of understanding that defines the division of authority
96-6 between the board and the commission.
96-7 (d) A state agency may enter into a type of agreement
96-8 described by this section to purchase or lease necessary equipment.
96-9 (e) If a law requires a state agency to obtain the approval
96-10 of another state agency or perform any other act before the agency
96-11 may purchase or lease computer equipment, those requirements must
96-12 be satisfied before the agency may enter into an agreement under
96-13 this chapter. The authority shall adopt rules so that computer
96-14 equipment may not be financed before the authority receives written
96-15 proof that the requirements have been satisfied. (V.A.C.S.
96-16 Art. 601d, Sec. 9A.)
96-17 Sec. 1232.104. ISSUANCE OF OBLIGATIONS FOR ALTERNATIVE FUEL
96-18 PROJECTS. (a) If the authority determines that a project is
96-19 financially viable and sufficient revenue is or will be available,
96-20 the authority may issue and sell obligations the proceeds of which
96-21 shall be used for the financing of:
96-22 (1) the conversion of state agency vehicles and other
96-23 sources of substantial energy output to an alternative fuel under
96-24 Subchapter A, Chapter 2158;
96-25 (2) the construction, acquisition, or maintenance by
96-26 the commission of fueling stations supplying alternative fuels or
96-27 equipment enhancing the use of engine-driven technology to support
97-1 state agency vehicles and other energy applications that use an
97-2 alternative fuel;
97-3 (3) the conversion of school district motor vehicles
97-4 and other sources of substantial energy output to an alternative
97-5 fuel;
97-6 (4) the construction, acquisition, or maintenance by a
97-7 school district of fueling stations supplying alternative fuels or
97-8 equipment enhancing the use of engine-driven technology to support
97-9 school district motor vehicles and other energy applications that
97-10 use an alternative fuel;
97-11 (5) the conversion of local mass transit authority or
97-12 department motor vehicles and other sources of substantial energy
97-13 output to an alternative fuel under Chapters 451, 452, and 453,
97-14 Transportation Code;
97-15 (6) the construction, acquisition, or maintenance of
97-16 fueling stations supplying alternative fuels or equipment enhancing
97-17 the use of engine-driven technology by a local mass transit
97-18 authority or department to support transit authority or department
97-19 vehicles and other energy applications that use an alternative
97-20 fuel;
97-21 (7) the conversion of motor vehicles and other sources
97-22 of substantial energy output of a local government, as defined by
97-23 Section 382.003, Health and Safety Code, to an alternative fuel
97-24 under Section 382.134, Health and Safety Code;
97-25 (8) the conversion of motor vehicles and other sources
97-26 of substantial energy output of a hospital district or authority, a
97-27 housing authority, or a district or authority created under Section
98-1 52, Article III, Texas Constitution, or Section 59, Article XVI,
98-2 Texas Constitution, to an alternative fuel;
98-3 (9) the construction, acquisition, or maintenance of
98-4 fueling stations supplying alternative fuels or equipment enhancing
98-5 the use of engine-driven technology to support motor vehicles and
98-6 other energy applications that use an alternative fuel by a county,
98-7 a municipality, or an entity described by Subdivision (8); or
98-8 (10) a joint venture between the private sector and a
98-9 state agency or political subdivision that is required under law to
98-10 use an alternative fuel in the agency's or subdivision's vehicles
98-11 or other energy applications to:
98-12 (A) convert vehicles or other sources of
98-13 substantial energy output to an alternative fuel;
98-14 (B) develop fueling stations and resources for
98-15 the supply of alternative fuels and engine-driven applications;
98-16 (C) aid in the distribution of alternative
98-17 fuels; and
98-18 (D) engage in other projects to facilitate the
98-19 use of alternative fuels.
98-20 (b) The board may provide for the payment of the principal
98-21 of or interest on an obligation issued under this section:
98-22 (1) by pledging all or a part of the revenue the state
98-23 derives from the sale of alternative fuel, alternative fuel
98-24 equipment or technology, or vehicles powered by an alternative
98-25 fuel;
98-26 (2) by contracting with a political subdivision or a
98-27 private entity to pledge revenue the political subdivision or
99-1 private entity derives from the sale of alternative fuel,
99-2 alternative fuel equipment or technology, or vehicles powered by an
99-3 alternative fuel in an amount sufficient to ensure that the
99-4 obligations are paid;
99-5 (3) by pledging appropriated general revenues of the
99-6 state or other appropriated money in the state treasury; or
99-7 (4) from any other source of funds available to the
99-8 board.
99-9 (c) The authority shall attempt to:
99-10 (1) include minority-owned businesses in the issuance
99-11 and underwriting of at least 20 percent of the obligations issued
99-12 under this section; and
99-13 (2) include women-owned businesses in the issuance and
99-14 underwriting of at least 10 percent of the obligations issued under
99-15 this section.
99-16 (d) Costs of administering the alternative fuel finance
99-17 program shall be considered a part of project costs and shall be
99-18 funded with proceeds of the obligations. (V.A.C.S. Art. 601d,
99-19 Secs. 9C(a), (c), (d), (f) (part).)
99-20 Sec. 1232.105. AGGREGATE LIMIT ON ISSUANCE OF OBLIGATIONS
99-21 FOR ALTERNATIVE FUEL PROJECTS. The authority may not issue and
99-22 sell more than $50 million in obligations for projects under
99-23 Section 1232.104. (V.A.C.S. Art. 601d, Sec. 9C(b).)
99-24 Sec. 1232.106. EVALUATION OF APPLICATION FOR ASSISTANCE WITH
99-25 ALTERNATIVE FUEL PROJECTS. (a) The Alternative Fuels Council
99-26 shall evaluate an application by an eligible entity for the
99-27 financing under Section 1232.104 of the acquisition, construction,
100-1 or improvement of alternative fuels infrastructure and shall
100-2 determine whether the proposed project will increase energy or cost
100-3 savings to the applicant.
100-4 (b) The authority may not issue an obligation under Section
100-5 1232.104 unless the Alternative Fuels Council certifies that the
100-6 proposed project will increase energy or cost savings to the
100-7 applicant.
100-8 (c) The Alternative Fuels Council by rule may adopt
100-9 procedures and standards for the evaluation of an application for
100-10 the financing of a proposed project under Section 1232.104.
100-11 (V.A.C.S. Art. 601d, Sec. 9C(e).)
100-12 Sec. 1232.107. PURCHASE OF OBLIGATIONS FOR ALTERNATIVE FUEL
100-13 PROJECTS. (a) The authority may use the proceeds of obligations
100-14 issued under Section 1232.104 to purchase, at a price determined by
100-15 the authority, an obligation of an entity described by Section
100-16 1232.104(a) that evidences the entity's obligation to repay the
100-17 authority. Notwithstanding any other law, the authority may
100-18 acquire an obligation of an entity described by Section 1232.104(a)
100-19 in a private sale as provided by resolution or order of the
100-20 governing body of the entity.
100-21 (b) An entity described by Section 1232.104(a) may borrow
100-22 from the authority by selling an obligation to the authority.
100-23 (V.A.C.S. Art. 601d, Secs. 9C(g), (h).)
100-24 Sec. 1232.108. LEGISLATIVE AUTHORIZATION REQUIRED. Except
100-25 as permitted by Section 1232.109, 2166.452, or 2166.453, before the
100-26 board may issue and sell bonds, the legislature by the General
100-27 Appropriations Act or other law must have authorized:
101-1 (1) the specific project for which the bonds are to be
101-2 issued and sold; and
101-3 (2) the estimated cost of the project or the maximum
101-4 amount of bonded indebtedness that may be incurred by the issuance
101-5 and sale of bonds for the project. (V.A.C.S. Art. 601d, Sec.
101-6 10(a), as amended Acts 71st Leg., R.S., Ch. 786; Sec. 10(a) (part),
101-7 as amended Acts 71st Leg., R.S., Ch. 1244, and Acts 73rd Leg.,
101-8 R.S., Ch. 906; Sec. 10(b).)
101-9 Sec. 1232.109. AUTHORIZATION TO PURCHASE CERTAIN REAL
101-10 PROPERTY. (a) Because there is a continued need to acquire real
101-11 property in or in the immediate vicinity of state office building
101-12 complexes for the continued operation of state government, because
101-13 prices and values of real property periodically fluctuate, and
101-14 because the state must be able to respond to rapidly changing
101-15 market conditions to acquire real property at substantial savings
101-16 to taxpayers, the commission may purchase and renovate real
101-17 property located, in whole or in part, within 1,000 feet of:
101-18 (1) the Capitol Complex in Travis County; or
101-19 (2) the John H. Winters Human Services Complex in
101-20 Travis County.
101-21 (b) The commission may contract as necessary to accomplish
101-22 the purposes stated in Subsection (a). The estimated cost of the
101-23 project is $10 million. Before purchasing property under this
101-24 section, the commission must determine that the purchase would be
101-25 in the state's best interest. (V.A.C.S. Art. 601d, Secs. 24A(b)
101-26 (part), (d).)
101-27 Sec. 1232.110. SPECIFIC PROJECTS IN TRAVIS COUNTY. The
102-1 board may issue bonds under Section 1232.102 for the following
102-2 projects:
102-3 Project Estimated Cost
102-4 State Board of Insurance Building in $59,937,000
102-5 Travis County; facilities associated
102-6 with relocation of the State Aircraft
102-7 Pooling Board (not to exceed an
102-8 estimated amount of $7,000,000); and
102-9 the acquisition and development of
102-10 acreage at Robert Mueller Municipal
102-11 Airport for a state complex (not to
102-12 exceed an estimated amount of
102-13 $41,000,000)
102-14 Laboratory and Office Facilities $42,300,000
102-15 for the Texas Department of Health
102-16 Parking facilities for state $29,500,000
102-17 officers and employees to be built
102-18 on state parking Lot 20 and for
102-19 visitors to the Capitol Complex to
102-20 be built on state parking Lot 17
102-21 (V.A.C.S. Art. 601d, Secs. 24A(a) (part), (b) (part); 24B(a), (b)
102-22 (part).)
102-23 Sec. 1232.111. SPECIFIC PROJECTS OUTSIDE TRAVIS COUNTY.
102-24 (a) Notwithstanding the limitations under Section 1232.102 as to
102-25 the location of buildings for which bonds may be issued, the board
102-26 may issue bonds under this chapter for the following projects:
102-27 Project Estimated Cost
103-1 Construction or purchase and renovation $10,000,000
103-2 of a building or buildings by the
103-3 commission in Tarrant County
103-4 Construction or purchase and renovation $20,000,000
103-5 of a building or buildings by the
103-6 commission in Harris County
103-7 (b) The commission shall, before requesting that the
103-8 authority issue bonds, prepare a project analysis for the potential
103-9 construction project and subsequently perform an alternative
103-10 purchase analysis as provided by Chapter 2166. (V.A.C.S.
103-11 Art. 601d, Sec. 24A(c) (part).)
103-12 Sec. 1232.112. BOND REVIEW BOARD APPROVAL. (a) The
103-13 authority may not issue obligations until the Bond Review Board has
103-14 approved the issuance under Chapter 1231.
103-15 (b) The Bond Review Board may not approve a bond issue
103-16 unless a project analysis is submitted for approval as provided by
103-17 Section 1232.114.
103-18 (c) Refunding obligations of the authority must be approved
103-19 by the Bond Review Board. (V.A.C.S. Art. 601d, Sec. 10A(c), as
103-20 added Acts 71st Leg., R.S., Ch. 896; Sec. 10B(a).)
103-21 Sec. 1232.113. OBLIGATION ISSUANCE ORIENTATION; INFORMATION
103-22 TO AND FROM CLIENT AGENCIES. (a) In this section, "client agency"
103-23 means a state agency on whose behalf the board may issue
103-24 obligations.
103-25 (b) The authority shall develop an orientation to the
103-26 obligation issuance process for the authority's client agencies.
103-27 (c) The orientation must include:
104-1 (1) information explaining the obligation issuance
104-2 process in plain language; and
104-3 (2) an orientation meeting to be held before the
104-4 issuance process begins.
104-5 (d) As part of the orientation, a client agency shall
104-6 provide to the authority:
104-7 (1) detailed information concerning the project for
104-8 which obligations are to be issued;
104-9 (2) a description of the legislative authority for the
104-10 issuance of the obligations; and
104-11 (3) the names of employees of the client agency who
104-12 are designated to work with the authority in connection with the
104-13 project.
104-14 (e) The authority shall prepare information of interest to
104-15 the authority's client agencies describing the functions of the
104-16 authority and the procedures by which complaints are filed with and
104-17 resolved by the authority. The authority shall make the
104-18 information available to its client agencies.
104-19 (f) The board by rule shall establish methods by which
104-20 client agencies are notified of the name, mailing address, and
104-21 telephone number of the authority for the purpose of directing
104-22 complaints to the authority. The board may provide for that
104-23 notification on a form provided to a client agency during the
104-24 orientation. (V.A.C.S. Art. 601d, Sec. 9D.)
104-25 Sec. 1232.114. PROJECT ANALYSIS. (a) When the authority
104-26 submits its application for approval of a bond issue to the Bond
104-27 Review Board, the agency or institution that will use the project
105-1 to be financed by the bonds shall submit to the Bond Review Board a
105-2 project analysis of the project. The project analysis must be in
105-3 the form required for a project analysis requested from the
105-4 commission under Sections 2166.151-2166.155.
105-5 (b) This section does not apply to a minor renovation,
105-6 repair, or construction project of the institutional division of
105-7 the Texas Department of Criminal Justice as defined by the division
105-8 in cooperation with the commission. Instead of submitting a
105-9 project analysis, the division may substitute the master plan
105-10 required to be submitted by Section 1401.121 if the master plan
105-11 contains information substantially equivalent to the information
105-12 required to be in a project analysis under Sections
105-13 2166.151-2166.155. (V.A.C.S. Art. 601d, Secs. 10A(a), (b), as
105-14 added Acts 71st Leg., R.S., Ch. 896.)
105-15 Sec. 1232.115. EXPENSES INCLUDED IN PRINCIPAL AMOUNT. (a)
105-16 The principal amount of obligations may include amounts required to
105-17 pay required reserve funds, capitalized interest, the authority's
105-18 administrative costs, issuing expenses, and other expenses
105-19 associated with the authority's issuance and sale of the
105-20 obligations.
105-21 (b) The principal amount of obligations issued to finance
105-22 the purchase of computer equipment that is the subject of a
105-23 contingent appropriation under Subchapter B, Chapter 317, must be
105-24 sufficient to cover any payments of principal and interest that
105-25 must occur during the remainder of the biennium after the
105-26 obligations are issued.
105-27 (c) Because of the expenses specified by Subsection (a) and
106-1 because the cost estimates for acquisition, construction, repair,
106-2 or renovation of a project cannot be finally determined at the time
106-3 the project is authorized for financing, the principal amount of
106-4 any issuance of obligations may be an amount not to exceed 150
106-5 percent of the amount of the estimated cost for the project being
106-6 financed.
106-7 (d) Additional costs may not be included in the principal
106-8 amount determined under this section unless the board finds that
106-9 those costs are necessary and reasonable at the time the
106-10 obligations are issued. (V.A.C.S. Art. 601d, Sec. 10(a) (part), as
106-11 amended Acts 71st Leg., R.S., Ch. 1244, and Acts 73rd Leg., R.S.,
106-12 Ch. 906; Sec. 10A, as added Acts 71st Leg., R.S., Ch. 786.)
106-13 Sec. 1232.116. MANNER OF REPAYMENT. (a) The board may
106-14 provide for the payment of the principal of and interest on
106-15 obligations issued under this chapter:
106-16 (1) by pledging all or part of the revenue derived
106-17 from:
106-18 (A) leasing a building or equipment to a state
106-19 agency either directly or through the commission; or
106-20 (B) selling equipment on an installment basis to
106-21 a state agency either directly or through the commission; or
106-22 (2) from any other funds lawfully available to the
106-23 board.
106-24 (b) From funds appropriated for paying rental charges or
106-25 making installment payments on buildings or equipment, the
106-26 commission or an occupying or using state agency shall pay to the
106-27 board a rental or make installment payments on the buildings or
107-1 equipment.
107-2 (c) The board shall determine the amount of the rental or
107-3 installment payments. The amount must be sufficient to:
107-4 (1) pay the principal of and interest on the
107-5 obligations;
107-6 (2) maintain any reserve fund required for servicing
107-7 the obligations; and
107-8 (3) reimburse the authority for other costs incurred
107-9 by it with respect to the obligations.
107-10 (d) When the commission or another state agency is required
107-11 by Subsection (b) to pay a rental to the authority and the
107-12 commission or other state agency depends on receiving a rental from
107-13 an occupying or using state agency to pay the authority, the
107-14 commission or other state agency shall set the rental in an amount
107-15 that is sufficient to pay the rental required by the board.
107-16 (e) In addition to other sources of repayment provided by
107-17 this section, the legislature by law may direct that money in the
107-18 Texas capital trust fund account be used to pay the principal of
107-19 and interest on bonds issued under this chapter for the acquisition
107-20 or construction of a building.
107-21 (f) The legislature may require the deposit into the Texas
107-22 capital trust fund account of all or part of the proceeds of a
107-23 transaction concerning a building. (V.A.C.S. Art. 601d, Secs.
107-24 12(a), (b), (c), (f).)
107-25 Sec. 1232.117. STATE DEBT NOT CREATED. (a) An obligation
107-26 issued under this chapter is not a debt of the state or any state
107-27 agency, political corporation, or political subdivision of the
108-1 state and is not a pledge of the faith and credit of any of them.
108-2 A bond is payable solely from revenue as provided by this chapter.
108-3 (b) An obligation issued under this chapter must contain on
108-4 its face a statement to the effect that:
108-5 (1) neither the state nor a state agency, political
108-6 corporation, or political subdivision of the state is obligated to
108-7 pay the principal of or interest on the obligation except as
108-8 provided by this chapter; and
108-9 (2) neither the faith and credit nor the taxing power
108-10 of the state or any state agency, political corporation, or
108-11 political subdivision of the state is pledged to the payment of the
108-12 principal of or interest on the obligation. (V.A.C.S. Art. 601d,
108-13 Sec. 13.)
108-14 Sec. 1232.118. ORDER OR RESOLUTION AUTHORIZING ISSUANCE OF
108-15 OBLIGATIONS. (a) An order or resolution of the board authorizing
108-16 the issuance of obligations, including refunding obligations, may
108-17 provide for the flow of funds and the establishment and maintenance
108-18 of the interest and sinking fund, the reserve fund, and other
108-19 funds.
108-20 (b) The order or resolution may:
108-21 (1) prohibit the issuance of additional obligations
108-22 payable from the pledged revenues; or
108-23 (2) preserve the right of the board to issue
108-24 additional obligations that are on a parity with or subordinate to
108-25 the lien and pledge on the revenue being used to support the
108-26 obligations being issued pursuant to the order or resolution.
108-27 (c) The order or resolution may contain any other provision
109-1 or covenant determined by the board.
109-2 (d) The board may make covenants with respect to the
109-3 obligations, the pledged revenues, and the operation and
109-4 maintenance of the buildings or equipment financed under this
109-5 chapter. (V.A.C.S. Art. 601d, Secs. 15(a)-(c).)
109-6 Sec. 1232.119. ADOPTION AND EXECUTION OF INSTRUMENTS. The
109-7 board may adopt and have executed any other proceeding or
109-8 instrument necessary and convenient in the issuance of obligations.
109-9 (V.A.C.S. Art. 601d, Sec. 15(d).)
109-10 Sec. 1232.120. EXEMPTION FROM TAXATION. An obligation
109-11 issued by the board, any transaction relating to the obligation,
109-12 and profits made from the sale of the obligation are exempt from
109-13 taxation by this state or by a municipality or other political
109-14 subdivision of this state. (V.A.C.S. Art. 601d, Sec. 20.)
109-15 Sec. 1232.121. CERTIFICATION AND DEPOSIT OF PROCEEDS OF
109-16 OBLIGATIONS. (a) After issuing obligations, the board shall
109-17 certify to the commission or the appropriate state agency and to
109-18 the comptroller that the proceeds from the issuance are available.
109-19 The board shall deposit the proceeds in the state treasury.
109-20 (b) The proceeds shall be credited to the account of the
109-21 state agency that is responsible under an agreement for making
109-22 rental or installment payments to the authority. (V.A.C.S.
109-23 Art. 601d, Sec. 23(a).)
109-24 Sec. 1232.122. COMMENCEMENT OF CONSTRUCTION, PURCHASE, OR
109-25 LEASE. The acquisition or construction of a building or the
109-26 purchase or lease of equipment may begin after:
109-27 (1) the authority has certified that obligations in an
110-1 amount sufficient to pay the construction or purchase price of the
110-2 project have been authorized for issuance by the authority under an
110-3 interim construction finance agreement established by the authority
110-4 in accordance with Chapter 1371; or
110-5 (2) the proceeds have been deposited into the state
110-6 treasury and:
110-7 (A) the comptroller has certified that the
110-8 proceeds are available;
110-9 (B) the reserve funds and capitalized interest,
110-10 as certified by the authority as reasonably required, have been
110-11 paid; and
110-12 (C) the costs of issuing the obligations, as
110-13 certified by the authority, have been paid. (V.A.C.S. Art. 601d,
110-14 Sec. 23(b).)
110-15 Sec. 1232.123. INVESTMENT OF BOND PROCEEDS. (a) With the
110-16 board's concurrence, the comptroller shall invest the unexpended
110-17 bond proceeds and investment income on bond proceeds in investments
110-18 approved by law for the investment of state funds.
110-19 (b) Investment income that the board determines is needed to
110-20 finance the acquisition, construction, purchase, or lease of
110-21 buildings or equipment and that is not required to be rebated to
110-22 the federal government shall be credited to the account of the
110-23 appropriate state agency.
110-24 (c) Investment income that the board determines is not
110-25 needed to finance the acquisition, construction, purchase, or lease
110-26 of buildings or equipment and that is not required to be rebated to
110-27 the federal government shall be credited to and accounted for in
111-1 the state lease fund account.
111-2 (d) Notwithstanding Section 404.071, the interest earned on
111-3 the investment income that is deposited in the state lease fund
111-4 account shall be credited to and accounted for in that account.
111-5 (V.A.C.S. Art. 601d, Secs. 23(c), (d), (e).)
111-6 (Sections 1232.124-1232.200 reserved for expansion)
111-7 SUBCHAPTER D. LEASE AND CONVEYANCE OF PROPERTY BY AUTHORITY
111-8 Sec. 1232.201. RENT AND FEES. (a) The commission or the
111-9 appropriate state agency shall establish schedules necessary to
111-10 properly charge occupying state agencies for the expenses incurred
111-11 in financing the acquisition or construction of buildings in
111-12 accordance with this chapter.
111-13 (b) An occupying state agency shall, when the payments are
111-14 due, pay to the commission, the appropriate state agency, or
111-15 directly into the state lease fund account the amount determined by
111-16 the commission. Instead of payments by an occupying state agency,
111-17 the legislature may appropriate money on the agency's behalf
111-18 directly to the state lease fund account.
111-19 (c) Payments received by the commission or another state
111-20 agency under this section shall be deposited to the credit of the
111-21 state lease fund account. (V.A.C.S. Art. 601d, Secs. 25(a), (b),
111-22 (c).)
111-23 Sec. 1232.202. CONTRACTS CONTINGENT ON LEGISLATIVE
111-24 APPROPRIATIONS. (a) Each lease or installment sale contract
111-25 entered into under this chapter is contingent on the legislature's
111-26 appropriation of sufficient funds.
111-27 (b) The board may act as necessary to ensure that the
112-1 payment of the principal of and interest on obligations is
112-2 continued without interruption if:
112-3 (1) sufficient appropriated funds are unavailable;
112-4 (2) the commission or another state agency fails to
112-5 pay a rental or installment; or
112-6 (3) the commission or another state agency fails to
112-7 renew a lease contract.
112-8 (c) Permissible actions under Subsection (b) include:
112-9 (1) the re-leasing or subleasing of buildings or
112-10 equipment to any entity; and
112-11 (2) the repossession and resale of equipment to any
112-12 entity. (V.A.C.S. Art. 601d, Sec. 12(d).)
112-13 Sec. 1232.203. LEASE OF SPACE TO CHILD CARE DEVELOPMENT
112-14 BOARD. (a) The Child Care Development Board is not an occupying
112-15 state agency for purposes of Section 1232.201.
112-16 (b) The commission or the appropriate state agency, with the
112-17 cooperation and assistance of the Child Care Development Board,
112-18 shall include in the schedules developed under Section 1232.201(a)
112-19 the method of charging state agencies that occupy all or part of a
112-20 building to which Section 1232.201 applies for the space in the
112-21 building that is used for a child-care facility under Chapters 663,
112-22 2165, and 2166.
112-23 (c) An occupying agency's share shall be determined at least
112-24 in part on the ratio of the number of the occupying agency's
112-25 employees who work in the building to the total number of state
112-26 employees who work in the building. (V.A.C.S. Art. 601d, Sec.
112-27 25(d).)
113-1 Sec. 1232.204. LEASING PREFERENCE. A building owned by the
113-2 authority is considered state-owned space for the purposes of:
113-3 (1) Section 2165.107; and
113-4 (2) child-care facility sites located in state-owned
113-5 buildings under Chapters 663, 2165, and 2166. (V.A.C.S. Art. 601d,
113-6 Sec. 29.)
113-7 Sec. 1232.205. LEASE OF SPACE TO OUTSIDE ENTITIES. The
113-8 board may lease all or part of a building, the acquisition or
113-9 construction of which was financed under this chapter, to any
113-10 person if the building cannot be leased to the commission or
113-11 another state agency. (V.A.C.S. Art. 601d, Sec. 12(e) (part).)
113-12 Sec. 1232.206. PROPERTY CONVEYANCE. (a) When the principal
113-13 of and interest on obligations relating to equipment or a building
113-14 financed under this chapter are fully paid and the equipment or
113-15 building is free of all liens, the board shall certify to the
113-16 commission or the appropriate state agency that rentals, payments,
113-17 or installments are no longer required to pay the principal of and
113-18 interest on the obligations.
113-19 (b) When making the certification required by Subsection
113-20 (a), the board shall, if necessary and for $1, convey the title of
113-21 the equipment or building, including any real property, to the
113-22 commission or the appropriate state agency. (V.A.C.S. Art. 601d,
113-23 Sec. 28.)
113-24 CHAPTER 1233. COLLEGE OPPORTUNITY ACT
113-25 SUBCHAPTER A. GENERAL PROVISIONS
113-26 Sec. 1233.001. SHORT TITLE
113-27 Sec. 1233.002. DEFINITIONS
114-1 Sec. 1233.003. EFFECT ON OTHER LAW
114-2 (Sections 1233.004-1233.050 reserved for expansion)
114-3 SUBCHAPTER B. ADMINISTRATIVE PROVISIONS
114-4 Sec. 1233.051. COLLEGE OPPORTUNITY ACT COMMITTEE
114-5 Sec. 1233.052. PRESIDING OFFICER; PROCEDURES
114-6 Sec. 1233.053. DEPUTIES
114-7 (Sections 1233.054-1233.100 reserved for expansion)
114-8 SUBCHAPTER C. BENEFITS OF COLLEGE OPPORTUNITY BONDS
114-9 Sec. 1233.101. FINANCIAL INCENTIVES AND BONUSES
114-10 Sec. 1233.102. EFFECT ON OTHER FINANCIAL AID
114-11 (Sections 1233.103-1233.150 reserved for expansion)
114-12 SUBCHAPTER D. ELIGIBILITY REQUIREMENTS AND
114-13 PROCEDURES FOR DESIGNATION AS COLLEGE SAVINGS BOND
114-14 Sec. 1233.151. BONDS ELIGIBLE FOR DESIGNATION AS COLLEGE SAVINGS
114-15 BONDS
114-16 Sec. 1233.152. APPLICATION FOR DESIGNATION
114-17 Sec. 1233.153. COMMITTEE REVIEW AND DETERMINATION
114-18 Sec. 1233.154. CONSIDERATION BY BOARD; DESIGNATION
114-19 Sec. 1233.155. CONSIDERATION AND DESIGNATION OF ADDITIONAL
114-20 BONDS
114-21 Sec. 1233.156. APPROVAL BY ATTORNEY GENERAL
114-22 (Sections 1233.157-1233.200 reserved for expansion)
114-23 SUBCHAPTER E. ISSUANCE, SALE, AND MARKETING
114-24 Sec. 1233.201. TYPE AND DENOMINATION OF BOND
114-25 Sec. 1233.202. REDEMPTION PRICE
114-26 Sec. 1233.203. AGGREGATE PRINCIPAL AMOUNT
114-27 Sec. 1233.204. PRIVATE OR NEGOTIATED SALE
115-1 Sec. 1233.205. MARKETING AND DISTRIBUTION
115-2 Sec. 1233.206. USE OF PHRASE "COLLEGE SAVINGS BOND"
115-3 RESTRICTED
115-4 CHAPTER 1233. COLLEGE OPPORTUNITY ACT
115-5 SUBCHAPTER A. GENERAL PROVISIONS
115-6 Sec. 1233.001. SHORT TITLE. This chapter may be cited as
115-7 the College Opportunity Act. (V.A.C.S. Art. 717u, Sec. 1.)
115-8 Sec. 1233.002. DEFINITIONS. In this chapter:
115-9 (1) "Board" means the Bond Review Board.
115-10 (2) "Committee" means the College Opportunity Act
115-11 committee.
115-12 (3) "College savings bond" means a general obligation
115-13 bond or another instrument authorized to be designated as a college
115-14 savings bond under this chapter.
115-15 (4) "Issuer" means:
115-16 (A) the Veterans' Land Board;
115-17 (B) the Texas Water Development Board;
115-18 (C) the Texas Higher Education Coordinating
115-19 Board; or
115-20 (D) another state agency authorized under this
115-21 chapter to designate part or all of its general obligation bonds as
115-22 college savings bonds.
115-23 (5) "Postsecondary educational institution" includes
115-24 an institution of higher education, as that term is defined by
115-25 Section 61.003, Education Code, and a private, nonprofit
115-26 institution of higher education that is accredited by a recognized
115-27 accrediting agency, as that term is defined by Section 61.003,
116-1 Education Code, and that is located and authorized to operate in
116-2 this state. The term does not include a private institution of
116-3 higher education operated exclusively for sectarian purposes,
116-4 religious teaching or worship, or the training of professionals in
116-5 the field of religion. (V.A.C.S. Art. 717u, Sec. 2 (part).)
116-6 Sec. 1233.003. EFFECT ON OTHER LAW. To the extent of any
116-7 conflict between this chapter and other law in regard to college
116-8 savings bonds, this chapter controls. (V.A.C.S. Art. 717u, Sec. 15
116-9 (part).)
116-10 (Sections 1233.004-1233.050 reserved for expansion)
116-11 SUBCHAPTER B. ADMINISTRATIVE PROVISIONS
116-12 Sec. 1233.051. COLLEGE OPPORTUNITY ACT COMMITTEE. (a) The
116-13 College Opportunity Act committee consists of:
116-14 (1) the following ex officio members:
116-15 (A) the commissioner of the General Land Office;
116-16 (B) the commissioner of higher education;
116-17 (C) the executive administrator of the Texas
116-18 Water Development Board;
116-19 (D) the comptroller;
116-20 (E) the executive director of the board; and
116-21 (F) the chief executive officer of a state
116-22 agency authorized by the board under Section 1233.155 to designate
116-23 any part of its general obligation bonds as college savings bonds;
116-24 and
116-25 (2) three public members appointed by the governor
116-26 with the advice and consent of the senate.
116-27 (b) A public member must have knowledge, skill, and
117-1 experience in an academic, business, or financial field.
117-2 (c) Public members serve staggered, six-year terms, with the
117-3 term of one member expiring February 1 of each odd-numbered year.
117-4 (d) A vacancy in the office of a public member shall be
117-5 filled by appointment for the unexpired term. (V.A.C.S. Art. 717u,
117-6 Secs. 4(a), (b), (c), (d); 6(d).)
117-7 Sec. 1233.052. PRESIDING OFFICER; PROCEDURES. (a) The
117-8 committee shall designate a member of the committee to serve as
117-9 presiding officer.
117-10 (b) The committee shall establish procedures for the conduct
117-11 of its business. (V.A.C.S. Art. 717u, Sec. 4(f).)
117-12 Sec. 1233.053. DEPUTIES. An ex officio member of the
117-13 committee may appoint a deputy to serve as a voting member of the
117-14 committee in the member's absence. (V.A.C.S. Art. 717u, Sec.
117-15 4(e).)
117-16 (Sections 1233.054-1233.100 reserved for expansion)
117-17 SUBCHAPTER C. BENEFITS OF COLLEGE OPPORTUNITY BONDS
117-18 Sec. 1233.101. FINANCIAL INCENTIVES AND BONUSES. (a) The
117-19 committee may authorize financial incentives for a holder of a
117-20 college savings bond to encourage the enrollment of students at
117-21 postsecondary educational institutions. The committee shall
117-22 establish procedures necessary to implement this section.
117-23 (b) A bonus payment may be paid under this subsection to the
117-24 holder of a college savings bond at maturity only if the holder
117-25 owned the college savings bond for the five years preceding the
117-26 bond's maturity date.
117-27 (c) The bonus payment may be paid to the holder of any
118-1 college savings bond at maturity in a form that may be applied only
118-2 to tuition costs at a postsecondary educational institution.
118-3 (d) The amount of the bonus payment for each year must be at
118-4 least equal to four-tenths of one percent of the college savings
118-5 bond's face amount, applied to each full year from the date of
118-6 purchase to the earlier of the date of redemption or the date of
118-7 maturity. Subject to Subsection (e), the committee may increase
118-8 the amount of the payment at the time the committee authorizes the
118-9 college savings bond.
118-10 (e) The amount of financial incentives provided under this
118-11 section during a state fiscal biennium may not exceed an amount
118-12 equal to one-half of one percent of the total amount of college
118-13 savings bonds maturing during that biennium. (V.A.C.S. Art. 717u,
118-14 Sec. 11.)
118-15 Sec. 1233.102. EFFECT ON OTHER FINANCIAL AID. In
118-16 determining a student's eligibility for monetary assistance,
118-17 including a scholarship or grant, awarded by a state agency or the
118-18 amount of financial assistance to provide the student, an amount of
118-19 $10,000 or less in proceeds from college savings bonds, including
118-20 principal and accumulated interest, may not be considered:
118-21 (1) a financial resource of the student; or
118-22 (2) a form of financial aid or assistance to the
118-23 student. (V.A.C.S. Art. 717u, Sec. 12.)
118-24 (Sections 1233.103-1233.150 reserved for expansion)
118-25 SUBCHAPTER D. ELIGIBILITY REQUIREMENTS AND
118-26 PROCEDURES FOR DESIGNATION AS COLLEGE SAVINGS BOND
118-27 Sec. 1233.151. BONDS ELIGIBLE FOR DESIGNATION AS COLLEGE
119-1 SAVINGS BONDS. All or part of the following bonds are eligible to
119-2 be designated as college savings bonds:
119-3 (1) veterans' land and housing bonds authorized under
119-4 Sections 49-b and 49-b-1, Article III, Texas Constitution, issued
119-5 by the Veterans' Land Board;
119-6 (2) farm and ranch loan bonds authorized under Section
119-7 49-f, Article III, Texas Constitution;
119-8 (3) water development bonds authorized by Sections
119-9 49-c, 49-d, 49-d-1, 49-d-2, 49-d-4, 49-d-6, and 50-d, Article III,
119-10 Texas Constitution, issued by the Texas Water Development Board;
119-11 (4) college student loan bonds authorized by Sections
119-12 50b and 50b-1, Article III, Texas Constitution, issued by the Texas
119-13 Higher Education Coordinating Board; or
119-14 (5) bonds issued by an issuer to refund bonds
119-15 described by Subdivisions (1)-(4). (V.A.C.S. Art. 717u, Sec.
119-16 5(a).)
119-17 Sec. 1233.152. APPLICATION FOR DESIGNATION. To have a bond
119-18 designated as a college savings bond, the issuer must:
119-19 (1) apply for approval in the manner prescribed by the
119-20 committee; and
119-21 (2) submit with the application any other information
119-22 the committee requires. (V.A.C.S. Art. 717u, Sec. 5(b).)
119-23 Sec. 1233.153. COMMITTEE REVIEW AND DETERMINATION. (a) The
119-24 committee shall examine an application and other information
119-25 submitted by an issuer under Section 1233.152.
119-26 (b) The committee shall recommend to the board that all or
119-27 part of the bonds be approved for designation as college savings
120-1 bonds if the committee determines that the designation:
120-2 (1) is advisable; and
120-3 (2) is of economic benefit to the bondholders and to
120-4 this state. (V.A.C.S. Art. 717u, Sec. 5(c).)
120-5 Sec. 1233.154. CONSIDERATION BY BOARD; DESIGNATION. (a)
120-6 The board shall consider the application and other information
120-7 submitted by an issuer and shall approve the designation of part or
120-8 all of the bonds as college savings bonds if, after examining the
120-9 application and other information, the board determines that the
120-10 designation as college savings bonds is advisable.
120-11 (b) The bonds shall be designated as college savings bonds
120-12 in any manner that:
120-13 (1) the resolution providing for the issuance of the
120-14 bonds specifies; and
120-15 (2) the board considers appropriate. (V.A.C.S.
120-16 Art. 717u, Secs. 5(d), (e).)
120-17 Sec. 1233.155. CONSIDERATION AND DESIGNATION OF ADDITIONAL
120-18 BONDS. (a) A state agency, including a state agency listed under
120-19 Section 1233.151, that issues general obligation bonds not
120-20 specified by that section may apply to the committee to issue those
120-21 general obligation bonds as college savings bonds.
120-22 (b) The committee shall consider the application as provided
120-23 by Section 1233.153 and may recommend to the board that the state
120-24 agency be granted authority to designate all or part of the general
120-25 obligation bonds issued by the state agency as college savings
120-26 bonds if the committee determines that the authorization:
120-27 (1) is advisable;
121-1 (2) is consistent with the purposes of this chapter;
121-2 and
121-3 (3) is of economic benefit to the bondholders and to
121-4 this state.
121-5 (c) The board shall consider the state agency's application
121-6 and shall approve the designation of all or part of the bonds as
121-7 college savings bonds if the board determines that the designation
121-8 of the bonds as college savings bonds is advisable. (V.A.C.S.
121-9 Art. 717u, Secs. 6(a), (b), (c).)
121-10 Sec. 1233.156. APPROVAL BY ATTORNEY GENERAL. The attorney
121-11 general may not approve the issuance as a college savings bond of a
121-12 bond that requires the attorney general's approval before issuance
121-13 unless the bond is issued in accordance with this chapter.
121-14 (V.A.C.S. Art. 717u, Sec. 14.)
121-15 (Sections 1233.157-1233.200 reserved for expansion)
121-16 SUBCHAPTER E. ISSUANCE, SALE, AND MARKETING
121-17 Sec. 1233.201. TYPE AND DENOMINATION OF BOND. A college
121-18 savings bond:
121-19 (1) must be a:
121-20 (A) zero coupon bond;
121-21 (B) capital appreciation bond;
121-22 (C) compound interest bond;
121-23 (D) municipal multiplier bond;
121-24 (E) capital accumulator bond; or
121-25 (F) similar type of bond that will encourage the
121-26 purchaser to hold the bond until maturity; and
121-27 (2) must be issued in small denominations, in
122-1 accordance with guidelines established by the committee to make the
122-2 bonds attractive for financing the costs of higher education.
122-3 (V.A.C.S. Art. 717u, Sec. 7(b).)
122-4 Sec. 1233.202. REDEMPTION PRICE. A college savings bond may
122-5 not be callable before maturity at a price less than its stated
122-6 value at maturity except:
122-7 (1) under a mandatory redemption or call provision of
122-8 the resolution authorizing the bond; or
122-9 (2) as otherwise authorized by law. (V.A.C.S.
122-10 Art. 717u, Sec. 7(a).)
122-11 Sec. 1233.203. AGGREGATE PRINCIPAL AMOUNT. For the purpose
122-12 of determining the amount of bonds that an issuer may issue under
122-13 the Texas Constitution and designate as college savings bonds under
122-14 this chapter, the aggregate principal amount is the aggregate of
122-15 the initial offering prices, excluding accrued interest, at which
122-16 the bonds are offered for sale to the public, including a private
122-17 or negotiated sale, without a reduction for an underwriter's
122-18 discount or the fee of a placement agent or other intermediary.
122-19 (V.A.C.S. Art. 717u, Sec. 9.)
122-20 Sec. 1233.204. PRIVATE OR NEGOTIATED SALE. (a) A series of
122-21 bonds that includes college savings bonds may be sold at a private
122-22 or negotiated sale if the committee determines that a private or
122-23 negotiated sale will result in a more efficient and economic sale
122-24 of the bonds or greater access to the bonds by investors who are
122-25 residents of this state.
122-26 (b) If college savings bonds are sold at a private or
122-27 negotiated sale, the underwriter to whom the bonds are sold must
123-1 have, in the committee's judgment, sufficient capability to broadly
123-2 distribute the bonds to investors who are residents of this state.
123-3 (V.A.C.S. Art. 717u, Sec. 8.)
123-4 Sec. 1233.205. MARKETING AND DISTRIBUTION. (a) The
123-5 committee shall coordinate the marketing and distribution of
123-6 college savings bonds.
123-7 (b) The committee may delegate to the board responsibility
123-8 for disseminating information about and advertising the college
123-9 savings bonds. The board may use its staff to assist in, or may
123-10 contract with another entity for services to carry out, a duty
123-11 delegated to the board under this subsection.
123-12 (c) The committee may contract for the services of financial
123-13 advisors and for legal services to assist the committee in
123-14 marketing and distributing and in disseminating information about
123-15 college savings bonds.
123-16 (d) In coordinating the marketing of college savings bonds,
123-17 the committee shall emphasize the use of college savings bonds to
123-18 finance the costs of higher education. For this purpose, the
123-19 committee shall provide information about the college savings bonds
123-20 to institutions of higher education, other education-related
123-21 organizations, the financial services community, and the public.
123-22 (e) The committee may not publish information purporting to
123-23 describe the details or terms of or the security for a particular
123-24 issue of college savings bonds unless the issuer of the college
123-25 savings bonds approves publication of that information. (V.A.C.S.
123-26 Art. 717u, Sec. 10.)
123-27 Sec. 1233.206. USE OF PHRASE "COLLEGE SAVINGS BOND"
124-1 RESTRICTED. A public legal entity, including a state agency or a
124-2 municipality or other political subdivision, may not, unless the
124-3 board has designated a bond or note as a college savings bond under
124-4 this chapter:
124-5 (1) use the phrase "college savings bond" in
124-6 connection with the issuance, sale, or marketing of a bond or note
124-7 by the entity; or
124-8 (2) authorize a broker or dealer in municipal bonds or
124-9 notes to use the phrase "college savings bonds" in connection with
124-10 the sale, resale, marketing, or distribution of a bond or note.
124-11 (V.A.C.S. Art. 717u, Sec. 13.)
124-12 (Chapters 1234-1250 reserved for expansion)
124-13 SUBTITLE C. PROVISIONS APPLICABLE TO SECURITIES ISSUED
124-14 BY MORE THAN ONE TYPE OF LOCAL GOVERNMENT
124-15 CHAPTER 1251. BOND ELECTIONS
124-16 Sec. 1251.001. BOND ELECTION REQUIRED
124-17 Sec. 1251.002. CONTENTS OF PROPOSITION
124-18 Sec. 1251.003. CONDUCT OF ELECTION
124-19 Sec. 1251.004. IMPOSITION OF TAX
124-20 Sec. 1251.005. BALLOT PROPOSITION
124-21 Sec. 1251.006. CERTAIN BONDS EXEMPTED
124-22 CHAPTER 1251. BOND ELECTIONS
124-23 Sec. 1251.001. BOND ELECTION REQUIRED. A county or
124-24 municipality may not issue bonds that are to be paid from ad
124-25 valorem taxes unless the issuance is first approved by the
124-26 qualified voters of the county or municipality in an election.
124-27 (V.A.C.S. Art. 701.)
125-1 Sec. 1251.002. CONTENTS OF PROPOSITION. The proposition
125-2 submitted in the election must distinctly state:
125-3 (1) the purpose for which the bonds are to be issued;
125-4 (2) the amount of the bonds;
125-5 (3) the rate of interest;
125-6 (4) the imposition of taxes sufficient to pay the
125-7 annual interest on the bonds and to provide a sinking fund to
125-8 redeem the bonds at maturity; and
125-9 (5) the maturity date of the bonds or that the bonds
125-10 may be issued to mature serially over a specified number of years
125-11 not to exceed 40. (V.A.C.S. Art. 703.)
125-12 Sec. 1251.003. CONDUCT OF ELECTION. (a) The general
125-13 election laws govern the election except as provided by this
125-14 section.
125-15 (b) The order for the election must include the location of
125-16 each polling place and the hours that the polls will be open.
125-17 (c) The election shall be held not earlier than the 16th or
125-18 later than the 90th day after the date of the election order,
125-19 subject to Section 41.001(b), Election Code.
125-20 (d) In addition to the notice required by Section 4.003(c),
125-21 Election Code, notice of the election shall be given by:
125-22 (1) posting a substantial copy of the election order
125-23 at:
125-24 (A) three public places in the county or
125-25 municipality holding the election; and
125-26 (B) the county courthouse, if the election is a
125-27 county election, or the city hall, if the election is a municipal
126-1 election; and
126-2 (2) publishing notice of the election in a newspaper
126-3 of general circulation published in the county or municipality
126-4 holding the election.
126-5 (e) The notice required by Subsection (d)(2) must be
126-6 published on the same day in each of two successive weeks. The
126-7 first publication may not occur later than the 15th day before the
126-8 date of the election.
126-9 (f) To the extent of a conflict between this section and a
126-10 municipal charter, this section controls. (V.A.C.S. Art. 704.)
126-11 Sec. 1251.004. IMPOSITION OF TAX. At an election ordered on
126-12 the issuance of bonds of a county or municipality, or of a
126-13 political subdivision or defined district of a county or
126-14 municipality, the governing body of the county or municipality
126-15 shall also submit the question of whether to impose a tax on
126-16 property in the county, municipality, political subdivision, or
126-17 defined district to pay interest on the bonds and to provide a
126-18 sinking fund to redeem the bonds. (V.A.C.S. Art. 702 (part).)
126-19 Sec. 1251.005. BALLOT PROPOSITION. At the election, the
126-20 ballots shall be printed to permit voting for or against the
126-21 proposition: "The issuance of bonds." (V.A.C.S. Art. 705.)
126-22 Sec. 1251.006. CERTAIN BONDS EXEMPTED. (a) Sections
126-23 1251.001, 1251.002, and 1251.004 do not apply to:
126-24 (1) refunding bonds of a county or municipality; or
126-25 (2) bonds issued in an amount less than $2,000 to
126-26 repair a building or structure that may be built using the proceeds
126-27 of bonds.
127-1 (b) If bonds described by Subsection (a)(2) are issued, the
127-2 aggregate principal amount of those bonds may not exceed $2,000 in
127-3 a calendar year. (V.A.C.S. Art. 717.)
127-4 CHAPTER 1252. REVOCATION OF AUTHORITY TO ISSUE BONDS
127-5 Sec. 1252.001. ELECTION TO REVOKE AUTHORITY
127-6 Sec. 1252.002. ELECTION PROCEDURE
127-7 Sec. 1252.003. REVOCATION AND CANCELLATION OF BONDS
127-8 CHAPTER 1252. REVOCATION OF AUTHORITY TO ISSUE BONDS
127-9 Sec. 1252.001. ELECTION TO REVOKE AUTHORITY. The
127-10 commissioners court of a county or the governing body of a
127-11 municipality may order an election to determine whether to revoke
127-12 the authority to issue bonds that:
127-13 (1) compose all or part of an issue authorized by an
127-14 earlier election; and
127-15 (2) have not as of the date of the order been sold or
127-16 delivered. (V.A.C.S. Art. 717g, Sec. 1 (part).)
127-17 Sec. 1252.002. ELECTION PROCEDURE. (a) An election to
127-18 revoke bonds under this chapter shall be held in the same manner as
127-19 the election originally authorizing the bonds.
127-20 (b) In an election held under Subsection (a), the ballot
127-21 shall be printed to permit voting for or against the proposition:
127-22 "The revocation of bonds."
127-23 (c) If a revocation election covers bonds of more than one
127-24 voted issue, there shall be a separate proposition for each voted
127-25 issue. (V.A.C.S. Art. 717g, Sec. 1 (part).)
127-26 Sec. 1252.003. REVOCATION AND CANCELLATION OF BONDS. (a)
127-27 If the proposition to revoke the bonds receives the number of votes
128-1 required by the statute under which the bonds were originally
128-2 voted, the authority to issue the bonds is revoked.
128-3 (b) If the bonds have not been printed, a certified copy of
128-4 the order or resolution showing that the authority to issue the
128-5 bonds has been revoked and the minutes relating to the order or
128-6 resolution shall be sent to the attorney general.
128-7 (c) If the bonds have been approved by the attorney general
128-8 and registered by the comptroller, a certified copy of the order or
128-9 resolution and the minutes relating to the order or resolution
128-10 shall be sent to the attorney general and comptroller.
128-11 (d) If the bonds have been printed, the commissioners court
128-12 or municipal governing body shall destroy the bonds by canceling
128-13 and burning the bonds. (V.A.C.S. Art. 717g, Sec. 2.)
128-14 CHAPTER 1253. BOND AND WARRANT LAW
128-15 SUBCHAPTER A. GENERAL PROVISIONS
128-16 Sec. 1253.001. CONFLICT WITH MUNICIPAL CHARTER
128-17 (Sections 1253.002-1253.020 reserved for expansion)
128-18 SUBCHAPTER B. FUNDING AND REFUNDING DEBT
128-19 Sec. 1253.021. AUTHORITY TO FUND AND REFUND DEBT
128-20 Sec. 1253.022. NOTICE OF INTENTION TO ISSUE BONDS
128-21 Sec. 1253.023. PETITION AND ELECTION
128-22 Sec. 1253.024. MATURITY
128-23 Sec. 1253.025. IMPOSITION OF TAXES
128-24 Sec. 1253.026. INVALIDITY OF CERTAIN BONDS
128-25 Sec. 1253.027. EXCEPTION
128-26 (Sections 1253.028-1253.040 reserved for expansion)
128-27 SUBCHAPTER C. PROVISIONS RELATING TO UTILITY SYSTEMS
129-1 Sec. 1253.041. UTILITY BONDS PAYABLE FROM REVENUE
129-2 Sec. 1253.042. MORTGAGE OF MUNICIPAL UTILITY SYSTEM
129-3 CHAPTER 1253. BOND AND WARRANT LAW
129-4 SUBCHAPTER A. GENERAL PROVISIONS
129-5 Sec. 1253.001. CONFLICT WITH MUNICIPAL CHARTER. A right,
129-6 power, or duty conferred or imposed on a municipality in regard to
129-7 the issuance of a funding or refunding bond or warrant applies
129-8 without regard to any provision in a municipal charter to the
129-9 contrary. (V.A.C.S. Art. 2368a, Sec. 10 (part).)
129-10 (Sections 1253.002-1253.020 reserved for expansion)
129-11 SUBCHAPTER B. FUNDING AND REFUNDING DEBT
129-12 Sec. 1253.021. AUTHORITY TO FUND AND REFUND DEBT. (a) The
129-13 commissioners court of a county or the governing body of a
129-14 municipality may, in accordance with this subchapter, adopt
129-15 necessary orders or ordinances to provide for funding or refunding
129-16 a legal debt of the county or municipality by:
129-17 (1) canceling the evidence of debt; and
129-18 (2) issuing to the holder or creditor a note, bond, or
129-19 treasury warrant.
129-20 (b) Subject to applicable laws, a commissioners court or
129-21 governing body may, without providing notice and without being
129-22 subject to an election, issue a refunding bond to refund:
129-23 (1) an outstanding bond; or
129-24 (2) outstanding matured interest on an outstanding
129-25 bond. (V.A.C.S. Art. 2368a, Secs. 1(a) (part); 7 (part), 7(a), (d)
129-26 (part).)
129-27 Sec. 1253.022. NOTICE OF INTENTION TO ISSUE BONDS. (a) Not
130-1 later than the 31st day before the date of a meeting at which a
130-2 commissioners court or governing body proposes to issue funding
130-3 bonds, the commissioners court or governing body shall publish
130-4 notice of its intention to issue the bonds.
130-5 (b) The notice must:
130-6 (1) be published at least once a week for three
130-7 consecutive weeks in a newspaper of general circulation in the
130-8 county or municipality, as appropriate; and
130-9 (2) include a statement of the amount and purpose of
130-10 the proposed bonds.
130-11 (c) If a newspaper is not published in the county or
130-12 municipality, the commissioners court or governing body may provide
130-13 the notice required by Subsection (a) by posting notice at the
130-14 courthouse door or at the city hall, as appropriate. (V.A.C.S.
130-15 Art. 2368a, Sec. 7(d) (part).)
130-16 Sec. 1253.023. PETITION AND ELECTION. (a) If, before the
130-17 funding bonds are authorized, the commissioners court or governing
130-18 body receives a petition requesting an election on the issuance of
130-19 the bonds that is signed by at least 10 percent of the registered
130-20 voters of the county or municipality, as applicable, who own
130-21 taxable property in the county or municipality, as shown by records
130-22 in the office of the county or municipal tax collector, the
130-23 commissioners court or governing body may not proceed to issue the
130-24 bonds.
130-25 (b) A petition authorized by Subsection (a) must be filed
130-26 with the county clerk or the secretary or clerk of the
130-27 municipality.
131-1 (c) After a petition is filed, the commissioners court or
131-2 governing body at its next meeting shall order an election to be
131-3 held in the county or municipality to determine whether the funding
131-4 bonds may be issued. The commissioners court or governing body
131-5 must hold the election in accordance with laws regulating elections
131-6 for the issuance of other county or municipal bonds under Subtitles
131-7 A, D, and E and this subtitle.
131-8 (d) If a majority of the qualified voters voting in the
131-9 election approve the issuance of the funding bonds, the
131-10 commissioners court or governing body may issue the bonds.
131-11 (e) If a petition seeking an election is not filed within
131-12 the specified period, an election is not required and the
131-13 commissioners court or governing body may proceed under Section
131-14 1253.021 to cancel or fund the debt described in the published
131-15 notice. (V.A.C.S. Art. 2368a, Sec. 7(d) (part).)
131-16 Sec. 1253.024. MATURITY. Funding bonds may be issued
131-17 payable for a term exceeding 40 years only if the commissioners
131-18 court or governing body finds that the financial condition of the
131-19 county or municipality will not permit payment of bonds issued for
131-20 a term of 40 years or less from taxes that are imposed
131-21 substantially uniformly during the term of the bonds. (V.A.C.S.
131-22 Art. 2368a, Sec. 7(d) (part).)
131-23 Sec. 1253.025. IMPOSITION OF TAXES. (a) A commissioners
131-24 court or governing body shall:
131-25 (1) impose taxes sufficient to pay interest as it
131-26 accrues and the principal as it matures on each bond issued in
131-27 accordance with this chapter and each time warrant issued under
132-1 Chapter 252, Local Government Code; and
132-2 (2) except as provided by Subsection (b), comply with
132-3 the duties imposed by Subtitles A, D, and E and this subtitle
132-4 relating to the imposition of taxes.
132-5 (b) If a commissioners court or governing body imposes a tax
132-6 that meets the requirements of Sections 5 and 7, Article XI, Texas
132-7 Constitution, to pay principal and interest on a bond issued in
132-8 accordance with this chapter or a time warrant issued under Chapter
132-9 252, Local Government Code, the commissioners court or governing
132-10 body may subsequently issue a funding or refunding bond or warrant
132-11 to fund any bond or warrant, notwithstanding the fact that, because
132-12 of declining property values or another reason, the commissioners
132-13 court or governing body has insufficient taxing power available at
132-14 the time of issuance to pay the principal of and interest on the
132-15 funding or refunding bond or warrant. (V.A.C.S. Art. 2368a, Sec.
132-16 8.)
132-17 Sec. 1253.026. INVALIDITY OF CERTAIN BONDS. (a) Except as
132-18 otherwise provided by law, a warrant bond, funding bond, refunding
132-19 bond, or other evidence of debt or obligation created or attempted
132-20 to be created by a commissioners court or governing body in
132-21 violation of this chapter is void.
132-22 (b) A resident taxpayer of the county or municipality, as
132-23 applicable, may bring suit in the county to enjoin payment of the
132-24 bond or evidence of debt or obligation. (V.A.C.S. Art. 2368a, Sec.
132-25 9 (part).)
132-26 Sec. 1253.027. EXCEPTION. Notwithstanding any provision in
132-27 this subchapter, a commissioners court or governing body may at any
133-1 time, without providing notice or being subject to an election,
133-2 fund or refund any item of debt created in accordance with this
133-3 chapter to prevent or cure a default or impending default in the
133-4 payment of principal or interest. (V.A.C.S. Art. 2368a, Sec. 7(d)
133-5 (part).)
133-6 (Sections 1253.028-1253.040 reserved for expansion)
133-7 SUBCHAPTER C. PROVISIONS RELATING TO UTILITY SYSTEMS
133-8 Sec. 1253.041. UTILITY BONDS PAYABLE FROM REVENUE. (a) A
133-9 municipality that has issued a bond, warrant, certificate, or other
133-10 public security payable from the revenue and income of a utility
133-11 owned by the municipality may fund, refund, or extend the public
133-12 security without complying with the election requirements of this
133-13 chapter if the funding, refunding, or extension does not increase
133-14 the amount of the municipality's debt, taking into consideration
133-15 interest adjustments.
133-16 (b) A public security funded, refunded, or extended under
133-17 this section may not be charged against money raised by the
133-18 municipality through taxation. (V.A.C.S. Art. 2368a, Sec. 8a.)
133-19 Sec. 1253.042. MORTGAGE OF MUNICIPAL UTILITY SYSTEM. (a) A
133-20 municipality is not prohibited by this chapter or Chapter 252,
133-21 Local Government Code, from encumbering the municipality's light,
133-22 water, or sewer system or other utility or anything relating to the
133-23 system, including a franchise and franchise income, to secure the
133-24 payment of money used to purchase the system or to make or purchase
133-25 an extension, addition, or improvement to the system under:
133-26 (1) Subchapter B, Chapter 1502;
133-27 (2) the municipality's charter; or
134-1 (3) Section 402.002, Local Government Code.
134-2 (b) The governing body of a municipality that authorizes a
134-3 contract, agreement, or encumbrance relating to a municipal utility
134-4 system, and that issues a revenue bond, warrant, or other
134-5 obligation to be paid from the property and income of the system,
134-6 shall comply with this chapter and Chapter 252, Local Government
134-7 Code, with regard to:
134-8 (1) notice;
134-9 (2) competitive bids, except as provided by Subsection
134-10 (c); and
134-11 (3) the right to an election.
134-12 (c) A municipality that proposes to acquire an existing
134-13 utility plant is not required to seek competitive bids, but voters
134-14 in the municipality are entitled to an election in accordance with
134-15 this chapter only on the question of whether the plant should be
134-16 purchased. (V.A.C.S. Art. 2368a, Sec. 11.)
134-17 (Chapters 1254-1300 reserved for expansion)
134-18 SUBTITLE D. PROVISIONS APPLICABLE TO SECURITIES
134-19 ISSUED BY COUNTIES
134-20 CHAPTER 1301. COUNTY BONDS
134-21 Sec. 1301.001. ISSUANCE AND AUTHORIZATION
134-22 Sec. 1301.002. SIGNATURES; REGISTRATION BY COUNTY TREASURER
134-23 Sec. 1301.003. LIMITS ON ISSUANCE OF BONDS
134-24 Sec. 1301.004. PAYMENT OF INTEREST AND CREATION OF SINKING
134-25 FUND
134-26 CHAPTER 1301. COUNTY BONDS
134-27 Sec. 1301.001. ISSUANCE AND AUTHORIZATION. (a) The
135-1 commissioners court of a county may issue bonds authorized under
135-2 Subtitle A and Chapter 1251 to:
135-3 (1) build a county courthouse or jail;
135-4 (2) purchase suitable sites in the county and to
135-5 construct buildings on the sites for homes or schools for dependent
135-6 or delinquent children;
135-7 (3) establish county facilities for needy or indigent
135-8 persons in the county;
135-9 (4) purchase and construct bridges for public purposes
135-10 in the county or to cross a stream serving as the county's boundary
135-11 line; or
135-12 (5) improve and maintain the public roads in the
135-13 county.
135-14 (b) The commissioners court may issue bonds only if a
135-15 majority of the voters at an election to authorize bonds vote in
135-16 favor of the proposition to authorize the bonds.
135-17 (c) Bonds to purchase or construct a bridge and to improve
135-18 and maintain a public road may be submitted by the commissioners
135-19 court and voted on as one proposition. (V.A.C.S. Arts. 718, 719.)
135-20 Sec. 1301.002. SIGNATURES; REGISTRATION BY COUNTY TREASURER.
135-21 (a) Before delivery, a bond issued under this chapter must be:
135-22 (1) signed by the county judge;
135-23 (2) countersigned by the county clerk; and
135-24 (3) registered by the county treasurer.
135-25 (b) The county treasurer shall keep an account of the amount
135-26 of principal and interest paid on each bond. (V.A.C.S. Art. 724
135-27 (part).)
136-1 Sec. 1301.003. LIMITS ON ISSUANCE OF BONDS. (a) The
136-2 amounts of bonds issued under this chapter may not exceed:
136-3 (1) for courthouse bonds, two percent of the county's
136-4 taxable values;
136-5 (2) for jail bonds, 1-1/2 percent of the county's
136-6 taxable values;
136-7 (3) for joint courthouse and jail bonds, 3-1/2 percent
136-8 of the county's taxable values; and
136-9 (4) for bridge bonds, 1-1/2 percent of the county's
136-10 taxable values.
136-11 (b) In determining the amount of the respective type of
136-12 bonds to be issued, previous debt incurred for the same purpose as
136-13 the bonds shall be considered.
136-14 (c) A county's total indebtedness for the purposes described
136-15 by this chapter may not be increased by the issuance of bonds to an
136-16 amount that exceeds five percent of the county's taxable values.
136-17 (d) The county's taxable values are according to the most
136-18 recent appraisal roll. (V.A.C.S. Art. 722.)
136-19 Sec. 1301.004. PAYMENT OF INTEREST AND CREATION OF SINKING
136-20 FUND. (a) Taxes imposed to pay the interest on bonds issued under
136-21 this chapter and to create a sinking fund for the redemption of
136-22 those bonds may not exceed:
136-23 (1) 25 cents per $100 valuation for courthouse or jail
136-24 bonds; and
136-25 (2) 15 cents per $100 valuation for bridge or road and
136-26 bridge bonds.
136-27 (b) If the principal of and all interest on bonds issued
137-1 under this chapter are fully paid and a surplus not exceeding
137-2 $1,000 remains in the sinking fund, the surplus may be used by the
137-3 county to maintain and repair the courthouse, jail, roads, or
137-4 bridges of the county, as determined by the commissioners court.
137-5 (V.A.C.S. Art. 723.)
137-6 CHAPTER 1302. DESTRUCTION OF COUNTY SECURITY
137-7 Sec. 1302.001. DEFINITION
137-8 Sec. 1302.002. AUTHORIZATION
137-9 Sec. 1302.003. LIMITATION
137-10 CHAPTER 1302. DESTRUCTION OF COUNTY SECURITY
137-11 Sec. 1302.001. DEFINITION. In this chapter, "county
137-12 security" means a certificate, bond, interest coupon, or other
137-13 evidence of indebtedness issued by a county. (V.A.C.S. Art. 717l-1
137-14 (part).)
137-15 Sec. 1302.002. AUTHORIZATION. The commissioners court of a
137-16 county may contract with the county's depository or another entity
137-17 that acts as the registrar or paying agent for a county security
137-18 issued by the county for the destruction of a county security that
137-19 has been issued and paid by the county. (V.A.C.S. Art. 717l-1
137-20 (part).)
137-21 Sec. 1302.003. LIMITATION. A contract under Section
137-22 1302.002 may not authorize the destruction of a county security
137-23 before:
137-24 (1) the first anniversary of the date the county
137-25 security is paid; or
137-26 (2) the end of the third month after the date the
137-27 depository, registrar, or paying agent files a list identifying the
138-1 county security to be destroyed with the commissioners court or
138-2 county treasurer. (V.A.C.S. Art. 717l-1 (part).)
138-3 (Chapters 1303-1330 reserved for expansion)
138-4 SUBTITLE E. PROVISIONS APPLICABLE TO SECURITIES
138-5 ISSUED BY MUNICIPALITIES
138-6 CHAPTER 1331. MUNICIPAL BONDS
138-7 SUBCHAPTER A. GENERAL PROVISIONS
138-8 Sec. 1331.001. AUTHORITY OF MUNICIPALITY TO ISSUE BONDS
138-9 Sec. 1331.002. SIGNATURES OF MAYOR AND MUNICIPAL SECRETARY
138-10 (Sections 1331.003-1331.050 reserved for expansion)
138-11 SUBCHAPTER B. PROVISIONS APPLICABLE TO CERTAIN MUNICIPALITIES
138-12 Sec. 1331.051. LIMITATION ON BONDED DEBT: MUNICIPALITY
138-13 WITH POPULATION OF 600,000 OR MORE
138-14 Sec. 1331.052. AUTHORITY OF HOME-RULE MUNICIPALITY TO ISSUE
138-15 BONDS
138-16 Sec. 1331.053. BOND SALE ADVERTISEMENT BY CERTAIN
138-17 HOME-RULE MUNICIPALITIES
138-18 (Sections 1331.054-1331.100 reserved for expansion)
138-19 SUBCHAPTER C. FUNDING, COMPROMISE, AND LIQUIDATION OF
138-20 DEBT BY MUNICIPALITIES
138-21 Sec. 1331.101. FUNDING OF MUNICIPAL DEBT
138-22 Sec. 1331.102. COMPROMISING DEBT OF MUNICIPALITY
138-23 Sec. 1331.103. LIQUIDATION BOARD
138-24 Sec. 1331.104. SELECTION OF DEPOSITORY BY LIQUIDATION
138-25 BOARD
138-26 Sec. 1331.105. DEPOSIT OF TAX PROCEEDS WITH DEPOSITORY
138-27 Sec. 1331.106. CONTROL AND APPLICATION OF MONEY IN
139-1 DEPOSITORY
139-2 Sec. 1331.107. PAYMENT OF EXPENSES BY BOARD; REPORTS
139-3 Sec. 1331.108. LIMIT ON DEFENSES TO SUIT
139-4 Sec. 1331.109. AUTHORITY TO COMPROMISE DEBT UNDER
139-5 CERTAIN OTHER LAW
139-6 Sec. 1331.110. EXEMPTION FROM MUNICIPAL TAXATION
139-7 CHAPTER 1331. MUNICIPAL BONDS
139-8 SUBCHAPTER A. GENERAL PROVISIONS
139-9 Sec. 1331.001. AUTHORITY OF MUNICIPALITY TO ISSUE BONDS. A
139-10 municipality may issue bonds payable from ad valorem taxes with one
139-11 or more interest coupons in the amount it considers expedient to:
139-12 (1) construct or purchase permanent improvements
139-13 inside the municipal boundaries, including public buildings,
139-14 waterworks, or sewers;
139-15 (2) construct or improve the streets and bridges of
139-16 the municipality; or
139-17 (3) construct or purchase building sites or buildings
139-18 for the public schools and other institutions of learning inside
139-19 the municipality, if the municipality has assumed exclusive control
139-20 of those schools and institutions. (V.A.C.S. Art. 823 (part).)
139-21 Sec. 1331.002. SIGNATURES OF MAYOR AND MUNICIPAL SECRETARY.
139-22 A bond issued by a municipality under Section 1331.001 must be
139-23 signed by the mayor and countersigned by the municipal secretary.
139-24 (V.A.C.S. Art. 825.)
139-25 (Sections 1331.003-1331.050 reserved for expansion)
139-26 SUBCHAPTER B. PROVISIONS APPLICABLE TO CERTAIN MUNICIPALITIES
139-27 Sec. 1331.051. LIMITATION ON BONDED DEBT: MUNICIPALITY WITH
140-1 POPULATION OF 600,000 OR MORE. (a) This section applies only to a
140-2 municipality with a population of 600,000 or more.
140-3 (b) The municipality, through the issuance of bonds payable
140-4 from taxes, may incur total bonded debt in an amount not to exceed
140-5 10 percent of the total appraised value of property listed on the
140-6 most recent appraisal roll for the municipality notwithstanding
140-7 that the municipal charter limits the total dollar amount of bonded
140-8 debt to a lesser amount. (V.A.C.S. Art. 835p.)
140-9 Sec. 1331.052. AUTHORITY OF HOME-RULE MUNICIPALITY TO ISSUE
140-10 BONDS. (a) A home-rule municipality may issue bonds on the credit
140-11 of the municipality to make permanent public improvements or for
140-12 another public purpose in the amount and to the extent provided by
140-13 its charter.
140-14 (b) A home-rule municipality may not issue bonds under this
140-15 section unless the bonds have been authorized by a majority of the
140-16 qualified voters of the municipality voting at an election held for
140-17 that purpose.
140-18 (c) If a municipality was authorized under a special charter
140-19 granted before June 30, 1913, to issue bonds, this section may not
140-20 be construed as interfering with the issuance of bonds under that
140-21 charter. (V.A.C.S. Art. 1175 (part).)
140-22 Sec. 1331.053. BOND SALE ADVERTISEMENT BY CERTAIN HOME-RULE
140-23 MUNICIPALITIES. To receive competitive bids on the interest rate
140-24 paid and the amount of the premium, the governing body of a
140-25 municipality the charter of which requires that municipal bonds be
140-26 advertised for sale after the bonds have been authorized and issued
140-27 must advertise the bonds for sale and receive bids for the sale
141-1 before adopting an ordinance authorizing the issuance of the bonds.
141-2 (V.A.C.S. Art. 709c.)
141-3 (Sections 1331.054-1331.100 reserved for expansion)
141-4 SUBCHAPTER C. FUNDING, COMPROMISE, AND LIQUIDATION OF
141-5 DEBT BY MUNICIPALITIES
141-6 Sec. 1331.101. FUNDING OF MUNICIPAL DEBT. The governing
141-7 body of a municipality by ordinance shall provide that any debt of
141-8 the municipality may be funded by:
141-9 (1) canceling the evidences of the debt; and
141-10 (2) issuing notes, bonds, or treasury warrants, with
141-11 or without coupons, to the holders or creditors. (V.A.C.S.
141-12 Art. 827.)
141-13 Sec. 1331.102. COMPROMISING DEBT OF MUNICIPALITY. (a) The
141-14 governing body of a municipality, by resolution or ordinance and by
141-15 referring to and adopting this subchapter, may compromise and fund
141-16 as provided by this section:
141-17 (1) any valid debt, whether bonded or floating, issued
141-18 by the municipality; and
141-19 (2) the coupons due on the bonded debt.
141-20 (b) The governing body may issue new bonds that are to
141-21 mature over a specified number of years, not to exceed 30.
141-22 (c) A compromise may not be made under which a debt barred
141-23 by a statute of limitations is funded. (V.A.C.S. Arts. 828, 829.)
141-24 Sec. 1331.103. LIQUIDATION BOARD. (a) If the governing
141-25 body of a municipality compromises a debt under this subchapter,
141-26 and bonds are delivered to the creditors, a liquidation board
141-27 consisting of five reputable residents of the municipality shall be
142-1 promptly appointed and organized.
142-2 (b) The mayor of the municipality, the governing body of the
142-3 municipality, the governor, any district judge of the district in
142-4 which the municipality is located, and the holders of the debt or a
142-5 majority of the holders shall each appoint one member to the board.
142-6 An appointing authority shall appoint a new member to fill a
142-7 vacancy in its appointee's position.
142-8 (c) If an appointing authority fails to appoint a member to
142-9 the board or a new member to fill a vacancy, any one or more of the
142-10 holders of the debt may apply to a district court of the judicial
142-11 district in which the municipality is located, or to the judge of
142-12 the court in vacation, for the appointment. The court or judge, on
142-13 the application, shall make the appointment.
142-14 (d) A member of the board:
142-15 (1) serves without compensation; and
142-16 (2) serves a term of four years. (V.A.C.S. Art. 830
142-17 (part).)
142-18 Sec. 1331.104. SELECTION OF DEPOSITORY BY LIQUIDATION BOARD.
142-19 (a) The liquidation board shall:
142-20 (1) select a solvent depository for money under the
142-21 control of the board; and
142-22 (2) give the assessor and collector of taxes for the
142-23 municipality written notice, signed by the board, of the selection
142-24 of the depository.
142-25 (b) The liquidation board is responsible for the
142-26 depository's acts in regard to those deposits. (V.A.C.S. Art. 831
142-27 (part).)
143-1 Sec. 1331.105. DEPOSIT OF TAX PROCEEDS WITH DEPOSITORY. (a)
143-2 The assessor and collector for the municipality shall deposit with
143-3 the selected depository at the close of business each day one-half
143-4 of all money collected by the assessor and collector during the
143-5 preceding 24 hours attributable to any tax levied by the
143-6 municipality. The depository's receipt for that money is an
143-7 acquittance of the assessor and collector.
143-8 (b) The assessor and collector is liable on that official's
143-9 official bond for a failure to promptly make a deposit required by
143-10 Subsection (a) and for an additional 10 percent each month of that
143-11 amount as a penalty. The liquidation board:
143-12 (1) is entitled to recover those amounts in a suit;
143-13 and
143-14 (2) shall promptly institute the suit.
143-15 (c) When the total amount deposited under this section
143-16 equals the amount of annual interest on bonds issued under Section
143-17 1331.102(b), the assessor and collector may discontinue the
143-18 deposits required by Subsection (a) until the liquidation board
143-19 gives the assessor and collector written notice that the amount on
143-20 deposit is less than the amount of annual interest on the bonds.
143-21 (V.A.C.S. Art. 831 (part).)
143-22 Sec. 1331.106. CONTROL AND APPLICATION OF MONEY IN
143-23 DEPOSITORY. (a) The liquidation board controls the amount on
143-24 deposit with the depository. The liquidation board shall apply the
143-25 amount on deposit by paying, in the following order of priority:
143-26 (1) interest on bonds issued under Section 1331.102(b)
143-27 as they mature;
144-1 (2) the principal of those bonds;
144-2 (3) interest on any valid bonds issued by the
144-3 municipality under another law; and
144-4 (4) the principal of bonds described by Subdivision
144-5 (3) as they mature.
144-6 (b) The members of the liquidation board are liable for:
144-7 (1) the prompt payment of interest, out of the amount
144-8 on deposit with the depository; and
144-9 (2) an additional 10 percent of the amount of that
144-10 interest as damages to be recovered by any person aggrieved by a
144-11 failure of the board to promptly pay the interest.
144-12 (c) If there is an amount on deposit with the depository
144-13 sufficient to pay two percent of the principal of the bonds in
144-14 addition to one year's interest, the liquidation board shall use
144-15 the amount to purchase outstanding bonds as provided by law. The
144-16 purchased bonds shall be returned to the governing body of the
144-17 municipality with all coupons that have been paid. (V.A.C.S.
144-18 Art. 831 (part).)
144-19 Sec. 1331.107. PAYMENT OF EXPENSES BY BOARD; REPORTS. The
144-20 liquidation board shall:
144-21 (1) pay, out of the amount on deposit with the
144-22 depository under this subchapter, the board's expenses incurred in
144-23 advertising for purchasers of bonds; and
144-24 (2) make semiannual reports to the governing body of
144-25 the municipality of the board's acts and of all receipts and
144-26 disbursements of money under the board's control. (V.A.C.S.
144-27 Art. 831 (part).)
145-1 Sec. 1331.108. LIMIT ON DEFENSES TO SUIT. In a suit against
145-2 a municipality in a court of this state to enforce payment of a new
145-3 bond issued under this subchapter or an interest coupon on the
145-4 bond, the court may consider only a legal or equitable defense that
145-5 originated on or after the issuance of the new bond. (V.A.C.S.
145-6 Art. 832 (part).)
145-7 Sec. 1331.109. AUTHORITY TO COMPROMISE DEBT UNDER CERTAIN
145-8 OTHER LAW. In the manner prescribed by the provisions of Subtitles
145-9 A, C, D, and E that confer authority on counties and municipalities
145-10 to compromise and liquidate their debt and issue bonds for that
145-11 debt, a municipality may:
145-12 (1) compromise and liquidate the municipality's debt;
145-13 and
145-14 (2) issue bonds for that debt. (V.A.C.S. Art. 834.)
145-15 Sec. 1331.110. EXEMPTION FROM MUNICIPAL TAXATION. A new
145-16 bond issued under this subchapter is exempt from any tax imposed by
145-17 the municipality. (V.A.C.S. Art. 833 (part).)
145-18 CHAPTER 1332. USE OF MUNICIPAL BOND PROCEEDS FOR OTHER PURPOSES
145-19 Sec. 1332.001. USE OF UNSPENT BOND PROCEEDS FOR OTHER
145-20 PURPOSES
145-21 Sec. 1332.002. ELECTION
145-22 CHAPTER 1332. USE OF MUNICIPAL BOND PROCEEDS FOR OTHER PURPOSES
145-23 Sec. 1332.001. USE OF UNSPENT BOND PROCEEDS FOR OTHER
145-24 PURPOSES. The governing body of a municipality may use the
145-25 proceeds of municipal bonds that have been sold and delivered for a
145-26 specific purpose for a purpose other than the specific purpose if:
145-27 (1) the specific purpose is accomplished by other
146-1 means or is abandoned;
146-2 (2) the proceeds are unspent; and
146-3 (3) a majority of the votes cast in an election held
146-4 in the municipality approve the use of the proceeds for the
146-5 proposed purpose. (V.A.C.S. Art. 703b (part).)
146-6 Sec. 1332.002. ELECTION. (a) The election order and the
146-7 notice of election must state the proposed purpose for which the
146-8 bond proceeds are to be used.
146-9 (b) A municipality shall hold the election in the same
146-10 manner as an election to issue bonds in the municipality.
146-11 (V.A.C.S. Art. 703b (part).)
146-12 CHAPTER 1333. REVOCATION OF UNSOLD MUNICIPAL BONDS
146-13 BY PETITION
146-14 Sec. 1333.001. BOND REVOCATION ELECTION REQUIRED
146-15 Sec. 1333.002. BALLOT FORM
146-16 Sec. 1333.003. ELECTION RESULTS; DESTRUCTION OF BONDS
146-17 Sec. 1333.004. TAX ADJUSTMENT FOLLOWING REVOCATION
146-18 CHAPTER 1333. REVOCATION OF UNSOLD MUNICIPAL BONDS
146-19 BY PETITION
146-20 Sec. 1333.001. BOND REVOCATION ELECTION REQUIRED. (a) The
146-21 governing body of a municipality shall order an election to
146-22 determine whether to revoke bonds unsold for 10 years or more after
146-23 the date the bonds are authorized to be issued if the governing
146-24 body receives a petition signed by a number of registered property
146-25 tax paying voters equal to 10 percent of the property tax paying
146-26 voters voting in the most recent municipal election.
146-27 (b) The election shall be held on the first authorized
147-1 uniform election date prescribed by Chapter 41, Election Code, that
147-2 allows sufficient time for compliance with any requirements
147-3 established by law.
147-4 (c) A municipality shall hold the election in the same
147-5 manner as an election to issue bonds in the municipality.
147-6 (V.A.C.S. Art. 705a, Sec. 1 (part).)
147-7 Sec. 1333.002. BALLOT FORM. At the election, the ballots
147-8 shall be printed to permit voting for or against the following
147-9 proposition: "The revocation of the bonds." (V.A.C.S. Art. 705a,
147-10 Sec. 1 (part).)
147-11 Sec. 1333.003. ELECTION RESULTS; DESTRUCTION OF BONDS. (a)
147-12 The governing body of the municipality shall record the results of
147-13 an election held under this chapter in its minutes.
147-14 (b) If a majority of the qualified voters voting at the
147-15 election vote in favor of the proposition, the governing body of
147-16 the municipality shall revoke and burn the unsold bonds.
147-17 (c) The municipality shall send to the comptroller a
147-18 certified copy of the minutes of the municipality showing the
147-19 revocation and destruction of the bonds.
147-20 (d) On receipt of notice under Subsection (c), the
147-21 comptroller shall cancel the registration of the bonds in the
147-22 records of the comptroller. (V.A.C.S. Art. 705a, Sec. 2.)
147-23 Sec. 1333.004. TAX ADJUSTMENT FOLLOWING REVOCATION. (a)
147-24 The governing body of a municipality that revokes bonds under this
147-25 chapter shall adjust the tax rate in the municipality to account
147-26 for any change caused by the revocation.
147-27 (b) The municipality by order shall refund taxes collected
148-1 for payment of bonds revoked under this chapter, less any properly
148-2 chargeable claims, ratably to the taxpayers.
148-3 (c) The treasurer of the municipality shall keep a receipt
148-4 of taxes refunded under Subsection (b). (V.A.C.S. Art. 705a, Secs.
148-5 3, 4.)
148-6 (Chapters 1334-1370 reserved for expansion)
148-7 SUBTITLE F. SPECIFIC AUTHORITY FOR STATE OR LOCAL
148-8 GOVERNMENT TO ISSUE SECURITIES
148-9 CHAPTER 1371. OBLIGATIONS FOR CERTAIN PUBLIC IMPROVEMENTS
148-10 SUBCHAPTER A. GENERAL PROVISIONS
148-11 Sec. 1371.001. DEFINITIONS
148-12 Sec. 1371.002. CONSTRUCTION
148-13 Sec. 1371.003. RELATIONSHIP TO OTHER LAW
148-14 (Sections 1371.004-1371.050 reserved for expansion)
148-15 SUBCHAPTER B. ISSUANCE AND APPROVAL OF OBLIGATION
148-16 Sec. 1371.051. AUTHORITY TO ISSUE OBLIGATION
148-17 Sec. 1371.052. TRANSPORTATION AUTHORITY OBLIGATION;
148-18 ELECTION
148-19 Sec. 1371.053. OBLIGATION AUTHORIZATION
148-20 Sec. 1371.054. RATE OF INTEREST
148-21 Sec. 1371.055. EXECUTION OF OBLIGATION
148-22 Sec. 1371.056. AUTHORITY TO ENTER INTO AND EXECUTE
148-23 CREDIT AGREEMENTS
148-24 Sec. 1371.057. REVIEW AND APPROVAL OF OBLIGATION, CREDIT
148-25 AGREEMENT, AND CONTRACT BY ATTORNEY
148-26 GENERAL
148-27 Sec. 1371.058. REFINANCING, RENEWAL, OR REFUNDING OF
149-1 OBLIGATION OR CREDIT AGREEMENT
149-2 (Sections 1371.059-1371.100 reserved for expansion)
149-3 SUBCHAPTER C. FINANCIAL ASPECTS OF OBLIGATION
149-4 Sec. 1371.101. OBLIGATION AS NEGOTIABLE INSTRUMENT AND
149-5 INVESTMENT SECURITY
149-6 Sec. 1371.102. USE OF CERTAIN PROCEEDS
149-7 Sec. 1371.103. SECURITY FOR OBLIGATION
149-8 Sec. 1371.104. SOURCE OF REPAYMENT OF OBLIGATION
149-9 Sec. 1371.105. PLEDGE OR LIEN ON RESOURCES, ASSETS,
149-10 OR FUND OF ISSUER
149-11 Sec. 1371.106. PLEDGE OF OR LIEN ON SALES OR USE TAX
149-12 REVENUE
149-13 CHAPTER 1371. OBLIGATIONS FOR CERTAIN PUBLIC IMPROVEMENTS
149-14 SUBCHAPTER A. GENERAL PROVISIONS
149-15 Sec. 1371.001. DEFINITIONS. In this chapter:
149-16 (1) "Credit agreement" means a loan agreement,
149-17 revolving credit agreement, agreement establishing a line of
149-18 credit, letter of credit, reimbursement agreement, insurance
149-19 contract, commitment to purchase an obligation, purchase or sale
149-20 agreement, interest rate swap agreement, or commitment or other
149-21 agreement authorized and approved by a governing body in connection
149-22 with the authorization, issuance, security, exchange, payment,
149-23 purchase, or redemption of an obligation, interest on an
149-24 obligation, or both, or as otherwise authorized by this chapter.
149-25 (2) "Eligible project" means:
149-26 (A) the acquisition or construction of or an
149-27 improvement, addition, or extension to a public works, including a
150-1 capital asset or facility incident and related to the operation,
150-2 maintenance, or administration of the public works, and:
150-3 (i) with respect to a property or a
150-4 facility for the generation of electric power and energy, fuel
150-5 acquisition or the development or transportation of power, energy,
150-6 or fuel;
150-7 (ii) with respect to a property or a
150-8 facility for a public transportation system:
150-9 (a) a building, terminal,
150-10 garage, shop, or other structure, rolling stock, equipment, or
150-11 another facility for mass public transportation; or
150-12 (b) a vehicle parking area
150-13 or a facility necessary or convenient for the beneficial use and
150-14 access of persons and vehicles to a station, terminal, yard, car,
150-15 or bus, or for the protection or environmental enhancement of a
150-16 facility for mass public transportation; and
150-17 (iii) with respect to a property or a
150-18 facility for a port facility, a wharf or dock, a warehouse, grain
150-19 elevator, or other storage facility, a bunkering facility,
150-20 port-related railroad or bridge, floating plant or facility,
150-21 lightering facility, cargo handling facility, towing facility, or
150-22 any other facility or aid incident to or useful in the operation of
150-23 a port facility;
150-24 (B) a causeway, bridge, tunnel, turnpike,
150-25 highway, or combination of those facilities, including:
150-26 (i) a necessary overpass, underpass,
150-27 interchange, entrance plaza, tollhouse, service station, approach,
151-1 fixture, accessory, or item of equipment, or a storage,
151-2 administration, or other necessary building; and
151-3 (ii) a property right or other interest
151-4 acquired in connection with those facilities;
151-5 (C) a public improvement owned by a county that
151-6 serves the purpose of attracting visitors and tourists to the
151-7 county, including a civic center, auditorium, exhibition hall,
151-8 coliseum, stadium, or parking area;
151-9 (D) a project for which there exists authorized
151-10 but unissued obligations approved by a majority of the voters of
151-11 the issuer, including obligations payable from ad valorem taxes; or
151-12 (E) a project for which an issuer is authorized
151-13 to issue revenue bonds secured, in whole or in part, by revenue
151-14 derived from or related to student loans.
151-15 (3) "Governing body" means the board, council,
151-16 commission, commissioners court, or other designated body, acting
151-17 individually or jointly as authorized by law, that is authorized by
151-18 law to issue public securities for or on behalf of an issuer.
151-19 (4) "Issuer" means:
151-20 (A) a home-rule municipality that:
151-21 (i) adopted its charter under Section 5,
151-22 Article XI, Texas Constitution;
151-23 (ii) has a population of 90,000 or more;
151-24 and
151-25 (iii) has outstanding long-term
151-26 indebtedness secured by the revenue of the public works for which
151-27 an obligation is being issued that is rated by a nationally
152-1 recognized rating agency for municipal securities in one of the
152-2 four highest rating categories for a long-term obligation;
152-3 (B) a conservation and reclamation district
152-4 created and organized as a river authority under Section 52,
152-5 Article III, or Section 59, Article XVI, Texas Constitution;
152-6 (C) a joint powers agency organized and
152-7 operating under Chapter 163, Utilities Code;
152-8 (D) a metropolitan rapid transit authority or
152-9 regional transportation authority created, organized, and operating
152-10 under Chapter 451 or 452, Transportation Code;
152-11 (E) a conservation and reclamation district
152-12 organized or operating as a navigation district under Section 52,
152-13 Article III, or Section 59, Article XVI, Texas Constitution;
152-14 (F) a district organized or operating under
152-15 Section 59, Article XVI, Texas Constitution, that has all or part
152-16 of two or more municipalities within its boundaries;
152-17 (G) a state agency, including a state
152-18 institution of higher education;
152-19 (H) a hospital authority created or operating
152-20 under Chapter 262 or 264, Health and Safety Code, in a county that:
152-21 (i) has a population of more than two
152-22 million; or
152-23 (ii) is included, in whole or in part, in
152-24 a standard metropolitan statistical area of this state that
152-25 includes a county with a population of more than 1.8 million;
152-26 (I) a nonprofit corporation organized to
152-27 exercise the powers of a higher education authority under Section
153-1 53.47(e), Education Code; or
153-2 (J) a county with a population of two million or
153-3 more.
153-4 (5) "Obligation" means a note, warrant, or other
153-5 special obligation authorized to be issued by an issuer under this
153-6 chapter or a public security as defined by Section 1201.002 that,
153-7 before delivery, is rated by a nationally recognized rating agency
153-8 for municipal securities in one of the three highest rating
153-9 categories for a short-term debt instrument or one of the four
153-10 highest rating categories for a long-term debt instrument.
153-11 (6) "Obligation authorization" means a resolution,
153-12 order, or ordinance of a governing body authorizing the issuance of
153-13 an obligation.
153-14 (7) "Project cost" means a cost or expense incurred in
153-15 relation to an eligible project. The term includes:
153-16 (A) design, planning, engineering, and legal
153-17 cost;
153-18 (B) acquisition cost of land or an interest in
153-19 land;
153-20 (C) construction cost;
153-21 (D) cost of machinery, equipment, and other
153-22 capital assets incident and related to the operation, maintenance,
153-23 and administration of an eligible project; and
153-24 (E) financing cost, including:
153-25 (i) interest during and after
153-26 construction;
153-27 (ii) underwriter's discount or fee; and
154-1 (iii) cost of legal, financial, and other
154-2 professional services.
154-3 (8) "Public works" means property or a facility for:
154-4 (A) the conservation, storage, supply,
154-5 treatment, or transmission of water;
154-6 (B) the treatment, collection, or disposal of
154-7 water-carried wastes or solid wastes;
154-8 (C) the generation, transmission, or
154-9 distribution of electric power and energy;
154-10 (D) the acquisition, distribution, or storage of
154-11 gas;
154-12 (E) a public transportation system as defined by
154-13 Chapter 452, Transportation Code;
154-14 (F) an airport as defined by Section 22.001,
154-15 Transportation Code;
154-16 (G) a port facility, including a facility for
154-17 the operation or development of a port or waterway or in aid of
154-18 navigation or navigation-related commerce in a port or on a
154-19 waterway;
154-20 (H) a project as defined by Section 284.001,
154-21 Transportation Code; or
154-22 (I) the carrying out of a purpose or function
154-23 for which an issuer may issue public securities. (V.A.C.S.
154-24 Art. 717q, Secs. 1(1), (2), (3), (4) (part), (5), (6), (7); New.)
154-25 Sec. 1371.002. CONSTRUCTION. This chapter shall be
154-26 liberally construed to achieve the legislative intent and purposes
154-27 of this chapter. A power granted by this chapter shall be broadly
155-1 interpreted to achieve that intent and those purposes. (V.A.C.S.
155-2 Art. 717q, Sec. 8.)
155-3 Sec. 1371.003. RELATIONSHIP TO OTHER LAW. (a) This chapter
155-4 is wholly sufficient authority within itself for the issuance of
155-5 obligations and the performance of the other acts and procedures
155-6 authorized by this chapter or under any agreement, without
155-7 reference to any other laws or any restrictions or limitations
155-8 contained in those laws.
155-9 (b) To the extent of any conflict between this chapter and
155-10 another law or a municipal charter, this chapter controls.
155-11 (c) An issuer may use a provision of another law that does
155-12 not conflict with this chapter to the extent convenient or
155-13 necessary to carry out any power or authority, express or implied,
155-14 granted by this chapter. (V.A.C.S. Art. 717q, Sec. 10 (part).)
155-15 (Sections 1371.004-1371.050 reserved for expansion)
155-16 SUBCHAPTER B. ISSUANCE AND APPROVAL OF OBLIGATION
155-17 Sec. 1371.051. AUTHORITY TO ISSUE OBLIGATION. The governing
155-18 body of an issuer may issue, sell, and deliver an obligation to
155-19 finance a project cost or to refund an obligation issued in
155-20 connection with an eligible project as may be authorized and
155-21 approved by the governing body. (V.A.C.S. Art. 717q, Sec. 2(a)
155-22 (part), as amended Acts 73rd Leg., R.S., Chs. 632 and 929.)
155-23 Sec. 1371.052. TRANSPORTATION AUTHORITY OBLIGATION;
155-24 ELECTION. (a) A transportation authority created, organized, and
155-25 operating under Chapter 452, Transportation Code, may not issue an
155-26 obligation, other than a refunding obligation, that is payable in
155-27 whole or in part from its sales and use tax revenue and has a
156-1 maturity longer than five years unless an election required by
156-2 Section 452.352(b), Transportation Code, has been held and the
156-3 proposition has been approved.
156-4 (b) An obligation that is exempt from the election
156-5 requirement of Section 452.352(b), Transportation Code, by the
156-6 terms of Chapter 452, Transportation Code, is also exempt from the
156-7 election requirement of this section. (V.A.C.S. Art. 717q,
156-8 Sec. 2(b).)
156-9 Sec. 1371.053. OBLIGATION AUTHORIZATION. (a) The issuance
156-10 of an obligation must be authorized by an obligation authorization.
156-11 (b) The obligation authorization must establish:
156-12 (1) the maximum amount of the obligation to be issued
156-13 or, if applicable, the maximum principal amount that may be
156-14 outstanding at any time;
156-15 (2) the maximum term for which obligations issued
156-16 under the authorization may be outstanding;
156-17 (3) the maximum interest rate the obligation will
156-18 bear;
156-19 (4) subject to Subsection (c)(2), the manner of sale
156-20 of the obligation, which may be by public or private sale, the
156-21 price of the obligation, the form of the obligation, and the terms
156-22 and covenants of the obligation; and
156-23 (5) each source securing payment of the obligation.
156-24 (c) The obligation authorization may:
156-25 (1) provide for the designation of a paying agent and
156-26 registrar for the obligation; and
156-27 (2) authorize one or more designated officers or
157-1 employees of the issuer to act on behalf of the issuer from time to
157-2 time in selling and delivering the obligation and setting the
157-3 dates, price, interest rates, interest payment periods, and other
157-4 procedures relating to the obligation, as specified in the
157-5 obligation authorization.
157-6 (d) An obligation may:
157-7 (1) be issued in a specified form or denomination;
157-8 (2) be payable:
157-9 (A) at one or more times;
157-10 (B) in installments or a specified amount or
157-11 amounts;
157-12 (C) at a specified place or places;
157-13 (D) in a specified form;
157-14 (E) under specified terms and details; and
157-15 (F) in a specified manner; and
157-16 (3) be issued as redeemable before maturity at one or
157-17 more specified times. (V.A.C.S. Art. 717q, Sec. 2(a) (part), as
157-18 amended Acts 73rd Leg., R.S., Chs. 632 and 929, Sec. 3 (part).)
157-19 Sec. 1371.054. RATE OF INTEREST. (a) An obligation may
157-20 bear no interest or bear interest at any rate or rates not to
157-21 exceed the maximum net effective interest rate allowed by law,
157-22 whether fixed, variable, floating, adjustable, or otherwise, as
157-23 determined in accordance with the obligation authorization.
157-24 (b) The obligation authorization may provide a formula,
157-25 index, contract, or other arrangement for the periodic
157-26 determination of interest rates. (V.A.C.S. Art. 717q, Sec. 3
157-27 (part).)
158-1 Sec. 1371.055. EXECUTION OF OBLIGATION. (a) An obligation
158-2 may be executed, with or without a seal, with a manual or facsimile
158-3 signature, as specified in the obligation authorization.
158-4 (b) The signature on an obligation of a person who is no
158-5 longer an officer when the obligation is delivered to the purchaser
158-6 is valid and sufficient for all purposes.
158-7 (c) A person's successor in office may complete the
158-8 execution, authentication, or delivery of the obligation.
158-9 (V.A.C.S. Art. 717q, Sec. 3 (part).)
158-10 Sec. 1371.056. AUTHORITY TO ENTER INTO AND EXECUTE CREDIT
158-11 AGREEMENTS. (a) A governing body may execute and deliver a credit
158-12 agreement to finance a project cost or to refund an obligation
158-13 issued in connection with an eligible project as may be authorized
158-14 and approved by the governing body.
158-15 (b) To enhance the security for or provide for the payment,
158-16 redemption, or remarketing of an obligation and interest on the
158-17 obligation in order to reduce the interest payable on the
158-18 obligation or in conjunction with the interim financing of an
158-19 eligible project of an issuer, a governing body may enter into a
158-20 credit agreement:
158-21 (1) at or after the issuance of the obligation; or
158-22 (2) in conjunction with the payment, sale, resale, or
158-23 exchange of the obligation.
158-24 (c) The governing body may execute a credit agreement in
158-25 relation to the issuance, payment, sale, resale, or exchange of an
158-26 obligation at any time, without regard to whether a credit
158-27 agreement was contemplated, authorized, or executed in relation to
159-1 the initial issuance, sale, or delivery of the obligation.
159-2 (d) A credit agreement must contain the terms and be for the
159-3 period the governing body approves.
159-4 (e) The cost to the issuer of a credit agreement may be paid
159-5 from any source, including:
159-6 (1) the proceeds from the sale of the obligation to
159-7 which the credit agreement relates;
159-8 (2) revenue of the issuer that is available to pay the
159-9 obligation;
159-10 (3) any interest on the obligation or that may
159-11 otherwise be legally used; or
159-12 (4) ad valorem taxes to the extent permitted by this
159-13 chapter.
159-14 (f) A credit agreement is an agreement for professional
159-15 services. (V.A.C.S. Art. 717q, Sec. 2(a) (part), as amended Acts
159-16 73rd Leg., R.S., Chs. 632 and 929, Sec. 4.)
159-17 Sec. 1371.057. REVIEW AND APPROVAL OF OBLIGATION, CREDIT
159-18 AGREEMENT, AND CONTRACT BY ATTORNEY GENERAL. (a) Before an
159-19 obligation may be issued or a credit agreement executed, a record
159-20 of the proceedings of the issuer authorizing the issuance,
159-21 execution, and delivery of the obligation, the credit agreement,
159-22 and any contract providing revenue or security to pay the
159-23 obligation or the credit agreement must be submitted to the
159-24 attorney general for review.
159-25 (b) If the attorney general finds that the credit agreement,
159-26 contract, and other authorizing proceedings conform to the
159-27 requirements of the Texas Constitution and this chapter, the
160-1 attorney general shall approve them. After approval, the
160-2 obligation and credit agreement may be executed and delivered,
160-3 exchanged, or refinanced from time to time in accordance with those
160-4 authorizing proceedings.
160-5 (c) On approval by the attorney general and initial delivery
160-6 of the obligation, a credit agreement, a contract providing revenue
160-7 or security, an initial obligation, and any obligation subsequently
160-8 issued under the authorizing proceedings are incontestable in a
160-9 court or other forum and are valid and binding obligations
160-10 enforceable according to their terms. (V.A.C.S. Art. 717q, Sec. 6,
160-11 as amended Acts 73rd Leg., R.S., Chs. 632 and 929.)
160-12 Sec. 1371.058. REFINANCING, RENEWAL, OR REFUNDING OF
160-13 OBLIGATION OR CREDIT AGREEMENT. An obligation, including accrued
160-14 interest, or a credit agreement may from time to time be
160-15 refinanced, renewed, or refunded by the issuance of another
160-16 obligation or credit agreement. (V.A.C.S. Art. 717q, Sec. 5, as
160-17 amended Acts 73rd Leg., R.S., Chs. 632 and 929.)
160-18 (Sections 1371.059-1371.100 reserved for expansion)
160-19 SUBCHAPTER C. FINANCIAL ASPECTS OF OBLIGATION
160-20 Sec. 1371.101. OBLIGATION AS NEGOTIABLE INSTRUMENT AND
160-21 INVESTMENT SECURITY. An obligation is:
160-22 (1) a negotiable instrument; and
160-23 (2) an investment security to which Chapter 8,
160-24 Business & Commerce Code, applies. (V.A.C.S. Art. 717q, Sec. 7
160-25 (part).)
160-26 Sec. 1371.102. USE OF CERTAIN PROCEEDS. (a) The proceeds
160-27 from the sale of an obligation may be deposited or invested in any
161-1 manner and in any obligation specified in the obligation
161-2 authorization.
161-3 (b) A project cost incurred before the issuance of an
161-4 obligation issued to finance the related eligible project may be
161-5 reimbursed from the proceeds from the sale of the obligation.
161-6 (V.A.C.S. Art. 717q, Secs. 1(4) (part), 3 (part).)
161-7 Sec. 1371.103. SECURITY FOR OBLIGATION. (a) An obligation
161-8 must be secured solely by:
161-9 (1) the proceeds from the sale of other obligations;
161-10 (2) the proceeds from the sale of revenue bonds
161-11 payable from the revenue to be received from a public works or a
161-12 specified user of a public works;
161-13 (3) any revenue that the issuer is authorized by the
161-14 constitution, a statute, or the charter of a home-rule municipality
161-15 to pledge to the payment of an obligation;
161-16 (4) a credit agreement; or
161-17 (5) any combination of those sources.
161-18 (b) A governing body may secure an obligation and pay the
161-19 cost of a credit agreement executed and delivered in connection
161-20 with the financing of a project cost with ad valorem taxes or with
161-21 other sources permitted by this chapter. (V.A.C.S. Art. 717q,
161-22 Secs. 2(a) (part), as amended Acts 73rd Leg., R.S., Chs. 632 and
161-23 929, (c).)
161-24 Sec. 1371.104. SOURCE OF REPAYMENT OF OBLIGATION. An
161-25 obligation must be repaid from:
161-26 (1) a source of security for the payment of the
161-27 obligation;
162-1 (2) money received from a credit agreement; or
162-2 (3) any other revenue legally available for the
162-3 payment of the obligation. (V.A.C.S. Art. 717q, Sec. 2(a) (part),
162-4 as amended Acts 73rd Leg., R.S., Chs. 632 and 929.)
162-5 Sec. 1371.105. PLEDGE OR LIEN ON RESOURCES, ASSETS, OR FUND
162-6 OF ISSUER. (a) A pledge or lien provided for in the resolution,
162-7 order, ordinance, or other proceedings authorizing a public
162-8 security, a credit agreement, or another agreement on a resource of
162-9 the issuer, including revenue or income, on an asset of the issuer,
162-10 or on a fund maintained by the issuer to secure payment of the
162-11 public security or to secure a payment required by a credit
162-12 agreement or other agreement:
162-13 (1) is valid and binding without further action by the
162-14 issuer according to its terms and without being filed or recorded,
162-15 except in the records of the issuer;
162-16 (2) is effective from the time of payment for and
162-17 delivery of the public security or execution of the credit
162-18 agreement or other agreement until:
162-19 (A) the public security or other payment has
162-20 been paid;
162-21 (B) payment of the public security has been
162-22 provided for; or
162-23 (C) each term of the credit agreement or other
162-24 agreement has been satisfied; and
162-25 (3) is effective as to an item on hand or later
162-26 received, and the item is subject to the lien or pledge without
162-27 physical delivery of the item or other action.
163-1 (b) This section does not exempt an issuer from a duty to:
163-2 (1) record a lien on real property; or
163-3 (2) submit a public security issue for approval by the
163-4 attorney general and registration by the comptroller. (V.A.C.S.
163-5 Art. 717q, Sec. 11 (part).)
163-6 Sec. 1371.106. PLEDGE OF OR LIEN ON SALES OR USE TAX
163-7 REVENUE. This chapter does not affect a restriction imposed by
163-8 Chapter 321, Tax Code, on a pledge of or lien on sales and use tax
163-9 revenue. (V.A.C.S. Art. 717q, Sec. 11 (part).)
163-10 CHAPTER 1372. PRIVATE ACTIVITY BONDS
163-11 SUBCHAPTER A. GENERAL PROVISIONS
163-12 Sec. 1372.001. DEFINITIONS
163-13 Sec. 1372.002. "PROJECT"
163-14 Sec. 1372.003. "CLOSING" IN CONNECTION WITH MORTGAGE CREDIT
163-15 CERTIFICATES
163-16 Sec. 1372.004. RULES
163-17 Sec. 1372.005. DELIVERY OF REQUIRED SUBMISSIONS TO BOARD;
163-18 ISSUANCE OF RECEIPTS
163-19 Sec. 1372.006. FEES
163-20 (Sections 1372.007-1372.020 reserved for expansion)
163-21 SUBCHAPTER B. ALLOCATION AND RESERVATION OF STATE CEILING
163-22 Sec. 1372.021. ANNUAL ALLOCATION OF STATE CEILING
163-23 Sec. 1372.022. AVAILABILITY OF STATE CEILING TO ISSUERS
163-24 Sec. 1372.023. DEDICATION OF PORTION OF STATE CEILING TO
163-25 TEXAS DEPARTMENT OF HOUSING AND COMMUNITY
163-26 AFFAIRS
163-27 Sec. 1372.024. INCREASE IN AMOUNT OF STATE CEILING AVAILABLE
164-1 TO ISSUERS OF STATE-VOTED ISSUES
164-2 Sec. 1372.025. REALLOCATION OF STATE CEILING ON FAILURE OF
164-3 BONDS TO QUALIFY AS TAX-EXEMPT
164-4 OBLIGATIONS
164-5 Sec. 1372.026. LIMITATION ON AMOUNT OF STATE CEILING
164-6 AVAILABLE TO HOUSING FINANCE
164-7 CORPORATIONS
164-8 Sec. 1372.027. PUBLICATION OF AVAILABLE STATE CEILING
164-9 Sec. 1372.028. APPLICATION FOR RESERVATION; FORM AND
164-10 CONTENT
164-11 Sec. 1372.029. APPLICATIONS FOR MULTIPLE PROJECTS AT SAME SITE
164-12 PROHIBITED
164-13 Sec. 1372.030. GRANTING OF CERTAIN RESERVATIONS PROHIBITED;
164-14 EXCEPTIONS
164-15 Sec. 1372.031. PRIORITIES FOR RESERVATIONS AMONG CERTAIN
164-16 ISSUERS
164-17 Sec. 1372.032. PRIORITIES FOR RESERVATIONS AMONG HOUSING
164-18 FINANCE CORPORATIONS
164-19 Sec. 1372.033. PRIORITIES FOR RESERVATIONS AMONG CERTAIN
164-20 ISSUERS OF QUALIFIED STUDENT LOAN BONDS
164-21 Sec. 1372.034. ORDER OF ACCEPTANCE OF CERTAIN APPLICATIONS
164-22 FOR RESERVATION
164-23 Sec. 1372.035. GRANTING OF RESERVATIONS; ORDER
164-24 Sec. 1372.036. RESERVATIONS FROM PORTION OF STATE CEILING
164-25 SUBSEQUENTLY BECOMING AVAILABLE
164-26 Sec. 1372.037. LIMITATIONS ON GRANTING OF RESERVATIONS FOR
164-27 INDIVIDUAL PROJECTS
165-1 Sec. 1372.038. RESERVATION DATE
165-2 Sec. 1372.039. CERTIFICATION REQUIRED OF ISSUER; CANCELLATION
165-3 ON FAILURE
165-4 Sec. 1372.040. RESERVATION BY CERTAIN ISSUERS OF QUALIFIED
165-5 MORTGAGE BONDS OF MONEY FOR MORTGAGES FOR
165-6 CERTAIN PERSONS
165-7 Sec. 1372.041. REFUSAL TO ACCEPT RESERVATION BY ISSUER
165-8 Sec. 1372.042. DEADLINE FOR CLOSING ON BONDS BY ISSUER
165-9 Sec. 1372.043. CANCELLATION OF RESERVATION ON ISSUER'S
165-10 FAILURE TO TIMELY CLOSE ON BONDS
165-11 Sec. 1372.044. ASSIGNMENT OF RESERVATION
165-12 (Sections 1372.045-1372.060 reserved for expansion)
165-13 SUBCHAPTER C. CARRYFORWARD OF STATE CEILING
165-14 Sec. 1372.061. DESIGNATION BY BOARD OF CERTAIN AMOUNTS OF
165-15 STATE CEILING AS CARRYFORWARD
165-16 Sec. 1372.062. PRIORITY CLASSIFICATIONS OF CARRYFORWARD
165-17 DESIGNATIONS
165-18 Sec. 1372.063. PRIORITY 1 CARRYFORWARD CLASSIFICATION
165-19 Sec. 1372.064. PRIORITY 2 CARRYFORWARD CLASSIFICATION
165-20 Sec. 1372.065. PRIORITY 3 CARRYFORWARD CLASSIFICATION
165-21 Sec. 1372.066. PRIORITY 4 CARRYFORWARD CLASSIFICATION
165-22 Sec. 1372.067. PRIORITY 5 CARRYFORWARD CLASSIFICATION
165-23 Sec. 1372.068. PRIORITY 6 CARRYFORWARD CLASSIFICATION
165-24 Sec. 1372.069. APPLICATION FOR CARRYFORWARD DESIGNATION;
165-25 LIMITATIONS
165-26 Sec. 1372.070. FORM AND CONTENTS OF APPLICATION FOR
165-27 CARRYFORWARD APPLICATION
166-1 Sec. 1372.071. ACTION ON APPLICATION FOR CARRYFORWARD
166-2 DESIGNATION
166-3 Sec. 1372.072. AMENDMENT OR WITHDRAWAL OF APPLICATION
166-4 FOR CARRYFORWARD DESIGNATION
166-5 CHAPTER 1372. PRIVATE ACTIVITY BONDS
166-6 SUBCHAPTER A. GENERAL PROVISIONS
166-7 Sec. 1372.001. DEFINITIONS. In this chapter:
166-8 (1) "Board" means the Bond Review Board.
166-9 (2) "Bonds" means all obligations, including bonds,
166-10 certificates, or notes, that are:
166-11 (A) authorized to be issued by:
166-12 (i) the constitution or a statute of this
166-13 state; or
166-14 (ii) the charter of a home-rule
166-15 municipality; and
166-16 (B) subject to the limitations of Section 146,
166-17 Internal Revenue Code (26 U.S.C. Section 146).
166-18 (3) "Closing" means the issuance and delivery of a
166-19 bond by an issuer in exchange for the required payment for the
166-20 bond. The term does not include a delivery of a bond if
166-21 expenditure of the proceeds of the bond is conditioned on obtaining
166-22 credit enhancement in support of the bond.
166-23 (4) "Enterprise zone facility bond" means an
166-24 enterprise zone facility bond under Section 1394, Internal Revenue
166-25 Code (26 U.S.C. Section 1394).
166-26 (5) "Housing finance corporation" has the meaning
166-27 assigned by Section 394.003, Local Government Code.
167-1 (6) "Internal Revenue Code" means the Internal Revenue
167-2 Code of 1986 and its subsequent amendments.
167-3 (7) "Issuer" means:
167-4 (A) a department, board, authority, agency,
167-5 subdivision, political subdivision, body politic, or
167-6 instrumentality of this state; or
167-7 (B) a nonprofit corporation acting for or on
167-8 behalf of an entity described by Paragraph (A).
167-9 (8) "Local government" has the meaning assigned by
167-10 Section 394.003, Local Government Code.
167-11 (9) "Mortgage credit certificate" means a certificate
167-12 of the type described by Section 25, Internal Revenue Code (26
167-13 U.S.C. Section 25).
167-14 (10) "Private activity bond" has the meaning assigned
167-15 by Section 141(a), Internal Revenue Code (26 U.S.C. Section
167-16 141(a)).
167-17 (11) "Qualified mortgage bond" has the meaning
167-18 assigned by Section 143(a), Internal Revenue Code (26 U.S.C.
167-19 Section 143(a)). The term includes a mortgage credit certificate.
167-20 (12) "Qualified residential rental project bond" means
167-21 a bond issued for a qualified residential rental project as defined
167-22 by Section 142(d), Internal Revenue Code (26 U.S.C. Section
167-23 142(d)).
167-24 (13) "Qualified small issue bond" has the meaning
167-25 assigned by Section 144(a), Internal Revenue Code (26 U.S.C.
167-26 Section 144(a)).
167-27 (14) "Qualified student loan bond" has the meaning
168-1 assigned by Section 144(b), Internal Revenue Code (26 U.S.C.
168-2 Section 144(b)).
168-3 (15) "Reservation" means a reservation of a portion of
168-4 the state ceiling for a specific bond issue.
168-5 (16) "State-voted issue" means an issue of bonds
168-6 approved by the voters of this state in a statewide election.
168-7 (17) "State ceiling" means the maximum amount of
168-8 tax-exempt private activity bonds that may be issued by all issuers
168-9 in this state during a calendar year, as computed under Section
168-10 146(d), Internal Revenue Code (26 U.S.C. Section 146(d)).
168-11 (V.A.C.S. Art. 5190.9a, Secs. 1(2), (3), (4) (part), (5), (6), (7),
168-12 (8) (part), (10), (11), (14), (15), (16), (18), (19), (20), (21),
168-13 (22).)
168-14 Sec. 1372.002. "PROJECT." (a) For purposes of this
168-15 chapter, a project is:
168-16 (1) an eligible facility that is proposed to be
168-17 financed, in whole or in part, by an issue of bonds; or
168-18 (2) in connection with an issue of qualified mortgage
168-19 bonds or qualified student loan bonds, the providing of financial
168-20 assistance to qualified mortgagors or students located in all or
168-21 any part of the jurisdiction of the issuer.
168-22 (b) For purposes of Subsection (a)(2), the jurisdiction of
168-23 an issuer is determined on the date the issuer's application for
168-24 reservation is delivered to the board. (V.A.C.S. Art. 5190.9a,
168-25 Sec. 1(12) (part).)
168-26 Sec. 1372.003. "CLOSING" IN CONNECTION WITH MORTGAGE CREDIT
168-27 CERTIFICATES. The closing of mortgage credit certificates occurs
169-1 on the date on which an issuer elects not to issue qualified
169-2 mortgage bonds and to establish a mortgage credit certificate
169-3 program under Section 25, Internal Revenue Code (26 U.S.C. Section
169-4 25). (V.A.C.S. Art. 5190.9a, Sec. 1(4) (part).)
169-5 Sec. 1372.004. RULES. The board may adopt rules necessary
169-6 to accomplish the purposes of this chapter. (V.A.C.S.
169-7 Art. 5190.9a, Sec. 11.)
169-8 Sec. 1372.005. DELIVERY OF REQUIRED SUBMISSIONS TO BOARD;
169-9 ISSUANCE OF RECEIPTS. (a) A submission required by this chapter
169-10 must be delivered to the board at its Austin office during normal
169-11 business hours.
169-12 (b) The board shall:
169-13 (1) note on the face of the document delivered the
169-14 date and time of delivery; and
169-15 (2) provide the submitting issuer with a receipt that:
169-16 (A) describes the document delivered; and
169-17 (B) states the date and time of delivery.
169-18 (V.A.C.S. Art. 5190.9a, Sec. 10.)
169-19 Sec. 1372.006. FEES. (a) An application for a reservation
169-20 under Subchapter B or a carryforward designation under Subchapter C
169-21 must be accompanied by a nonrefundable fee in the amount of $500.
169-22 (b) An issuer shall submit to the board a closing fee in an
169-23 amount that is equal to the greater of:
169-24 (1) $1,000; or
169-25 (2) 0.025 percent of the principal amount of the bonds
169-26 certified as provided by Section 1372.039(a)(1).
169-27 (c) An issuer exchanging a portion of the state ceiling for
170-1 mortgage credit certificates shall submit to the board a closing
170-2 fee in an amount that is equal to the greater of:
170-3 (1) $1,000; or
170-4 (2) 0.0125 percent of the amount of the state ceiling
170-5 exchanged.
170-6 (d) Of each fee required by Subsection (b) or (c):
170-7 (1) one-third must be submitted not later than the
170-8 35th day after the reservation date for the issue; and
170-9 (2) the remainder must be submitted at the time of
170-10 closing. (V.A.C.S. Art. 5190.9a, Secs. 6(a) (part), 12 (part).)
170-11 (Sections 1372.007-1372.020 reserved for expansion)
170-12 SUBCHAPTER B. ALLOCATION AND RESERVATION OF STATE CEILING
170-13 Sec. 1372.021. ANNUAL ALLOCATION OF STATE CEILING. The
170-14 state ceiling for each calendar year is allocated to issuers of
170-15 private activity bonds. (V.A.C.S. Art. 5190.9a, Sec. 2(a) (part).)
170-16 Sec. 1372.022. AVAILABILITY OF STATE CEILING TO ISSUERS.
170-17 (a) Before September 1 of each year:
170-18 (1) 31.5 percent of the state ceiling is available
170-19 exclusively for reservations by issuers of qualified mortgage
170-20 bonds;
170-21 (2) 13 percent of the state ceiling is available
170-22 exclusively for reservations by issuers of state-voted issues;
170-23 (3) 7.5 percent of the state ceiling is available
170-24 exclusively for reservations by issuers of qualified small issue
170-25 bonds and enterprise zone facility bonds;
170-26 (4) 7.5 percent of the state ceiling is available
170-27 exclusively for reservations by issuers of qualified residential
171-1 rental project bonds;
171-2 (5) 11 percent of the state ceiling is available
171-3 exclusively for reservations by issuers of qualified student loan
171-4 bonds authorized by Section 53.47, Education Code; and
171-5 (6) 29.5 percent of the state ceiling is available
171-6 exclusively for reservations by any other issuer of bonds that
171-7 require an allocation.
171-8 (b) On and after September 1, that portion of the state
171-9 ceiling available for reservations becomes available to any issuer
171-10 for any bonds that require an allocation, subject to the provisions
171-11 of this subchapter. (V.A.C.S. Art. 5190.9a, Secs. 2(b), (e).)
171-12 Sec. 1372.023. DEDICATION OF PORTION OF STATE CEILING TO
171-13 TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS. Until August
171-14 25, of that portion of the state ceiling that is available
171-15 exclusively for reservations by issuers of qualified mortgage
171-16 bonds, one-third is available exclusively to the Texas Department
171-17 of Housing and Community Affairs for the purpose of issuing
171-18 qualified mortgage bonds. (V.A.C.S. Art. 5190.9a, Sec. 2(d).)
171-19 Sec. 1372.024. INCREASE IN AMOUNT OF STATE CEILING AVAILABLE
171-20 TO ISSUERS OF STATE-VOTED ISSUES. (a) If, before January 2,
171-21 applications received for reservations for state-voted issues total
171-22 more than 13 percent of the available state ceiling for that
171-23 program year, the percentage of state-voted ceiling requested that
171-24 is more than 13 percent of the state ceiling:
171-25 (1) is removed from the state ceiling available to
171-26 other issuers on January 2; and
171-27 (2) is available for those applications for
172-1 reservations for state-voted issues.
172-2 (b) The amount removed under Subsection (a) may not exceed
172-3 4.5 percent of the state ceiling.
172-4 (c) The remaining portion of the state ceiling is available
172-5 in accordance with Section 1372.022(a). (V.A.C.S. Art. 5190.9a,
172-6 Sec. 2(c).)
172-7 Sec. 1372.025. REALLOCATION OF STATE CEILING ON FAILURE OF
172-8 BONDS TO QUALIFY AS TAX-EXEMPT OBLIGATIONS. (a) If a type of bond
172-9 listed in Section 1372.022(a) does not qualify on January 2 of any
172-10 year for treatment as a tax-exempt obligation under the Internal
172-11 Revenue Code:
172-12 (1) Section 1372.022(a) has no effect for that year
172-13 for that type of bond; and
172-14 (2) by March 1, the portion of the state ceiling that
172-15 but for Subdivision (1) would have been available exclusively for
172-16 reservations by issuers of that type of bond shall be reallocated
172-17 proportionately for reservation by each other category of issuer
172-18 listed in that section.
172-19 (b) Subsection (a) does not apply to qualified mortgage
172-20 bonds made available exclusively to the Texas Department of Housing
172-21 and Community Affairs under Section 1372.023. (V.A.C.S.
172-22 Art. 5190.9a, Secs. 2(f), (g).)
172-23 Sec. 1372.026. LIMITATION ON AMOUNT OF STATE CEILING
172-24 AVAILABLE TO HOUSING FINANCE CORPORATIONS. (a) The maximum amount
172-25 of the state ceiling that may be reserved before September 1 by a
172-26 housing finance corporation for the issuance of qualified mortgage
172-27 bonds may not exceed the amount computed by multiplying the local
173-1 population of the corporation by:
173-2 (1) $50, if the local population is 300,000 or more;
173-3 (2) $75, if the local population of the housing
173-4 finance corporation is 200,000 or more but less than 300,000;
173-5 (3) $100, if the local population of the housing
173-6 finance corporation is 100,000 or more but less than 200,000; or
173-7 (4) $150, if the local population of the housing
173-8 finance corporation is less than 100,000.
173-9 (b) A housing finance corporation may not receive an
173-10 allocation for the issuance of qualified mortgage bonds in an
173-11 amount that exceeds $25 million.
173-12 (c) For purposes of this section, the local population of a
173-13 housing finance corporation is the population of the local
173-14 government or local governments on whose behalf a housing finance
173-15 corporation is created. If two local governments that have a
173-16 population of at least 20,000 each and that have overlapping
173-17 territory have created housing finance corporations that have the
173-18 power to issue bonds to provide financing for home mortgages, the
173-19 population of the housing finance corporation created on behalf of
173-20 the larger local government is computed by subtracting from the
173-21 population of the larger local government the population of the
173-22 part of the smaller local government that is located in the larger
173-23 local government. The reduction of population provided by this
173-24 subsection is not required if the smaller local government assigns
173-25 its authority to issue bonds, based on its population, to the
173-26 larger local government. (V.A.C.S. Art. 5190.9a, Secs. 1(8)
173-27 (part), 3(b).)
174-1 Sec. 1372.027. PUBLICATION OF AVAILABLE STATE CEILING. The
174-2 board shall publish biweekly in the Texas Register:
174-3 (1) a statement of the amount of the available state
174-4 ceiling;
174-5 (2) a list of the issues that have received a
174-6 reservation since the preceding publication, including the amount
174-7 of each reservation; and
174-8 (3) a list of the issues that had previously received
174-9 a reservation that have closed since the preceding publication.
174-10 (V.A.C.S. Art. 5190.9a, Sec. 8.)
174-11 Sec. 1372.028. APPLICATION FOR RESERVATION; FORM AND
174-12 CONTENT. (a) In this section, "qualified bond" has the meaning
174-13 assigned by Section 141(e), Internal Revenue Code (26 U.S.C.
174-14 Section 141(e)).
174-15 (b) An issuer may apply for a reservation for a program year
174-16 not earlier than October 10 of the preceding year. An issuer may
174-17 not submit an application for a program year after December 1 of
174-18 that year.
174-19 (c) The application must:
174-20 (1) be on a form prescribed by the board;
174-21 (2) be signed by a member or officer of the issuer;
174-22 and
174-23 (3) state:
174-24 (A) the maximum amount of the bonds in the issue
174-25 that require an allocation under Section 146, Internal Revenue Code
174-26 (26 U.S.C. Section 146);
174-27 (B) the project or, with respect to an eligible
175-1 facility, a functional description of the project to be financed by
175-2 the proceeds, including the identification of the user of the
175-3 proceeds or project;
175-4 (C) whether the bonds are qualified bonds;
175-5 (D) if the bonds are qualified bonds:
175-6 (i) the subparagraph of Section 141(e)(1),
175-7 Internal Revenue Code (26 U.S.C. Section 141(e)(1)), that applies;
175-8 and
175-9 (ii) if Section 141(e)(1)(A) of that code
175-10 (26 U.S.C. Section 141(e)(1)(A)) applies, the paragraph of Section
175-11 142(a) of that code (26 U.S.C. Section 142(a)) that applies;
175-12 (E) if the bonds are not qualified bonds:
175-13 (i) that Section 141(b)(5), Internal
175-14 Revenue Code (26 U.S.C. Section 141(b)(5)), applies; or
175-15 (ii) for a transition rule project, the
175-16 paragraph of the Tax Reform Act of 1986 that applies;
175-17 (F) that bonds are not being issued for the same
175-18 stated project for which the issuer has received sufficient
175-19 carryforward during a previous year or for which there exists
175-20 unexpended proceeds from one or more prior issues of bonds issued
175-21 by the same issuer or based on the issuer's population; and
175-22 (G) other information that the board may
175-23 require.
175-24 (d) An issuer is not required to provide the statement
175-25 required by Subsection (c)(3)(F) if the issuer:
175-26 (1) is an issuer of a state-voted issue;
175-27 (2) is the Texas Department of Housing and Community
176-1 Affairs; or
176-2 (3) provides evidence that one or more binding
176-3 contracts have been entered into to spend the unexpended proceeds
176-4 within 12 months after the date the board receives the application.
176-5 (V.A.C.S. Art. 5190.9a, Secs. 1(12) (part), (13), 3(d) (part),
176-6 4(a).)
176-7 Sec. 1372.029. APPLICATIONS FOR MULTIPLE PROJECTS AT SAME
176-8 SITE PROHIBITED. The board may not accept applications for
176-9 reservations for more than one project located at, or related to, a
176-10 business operation at a particular site for any one program year.
176-11 (V.A.C.S. Art. 5190.9a, Sec. 4(c).)
176-12 Sec. 1372.030. GRANTING OF CERTAIN RESERVATIONS PROHIBITED;
176-13 EXCEPTIONS. (a) The board may not grant a reservation to an
176-14 issuer to whom proceeds are available from other bonds issued by or
176-15 on behalf of that issuer for the project stated in the issuer's
176-16 application for the reservation.
176-17 (b) Subsection (a) does not apply to an issuer to which
176-18 Section 1372.028(d) applies. (V.A.C.S. Art. 5190.9a, Sec. 4(b).)
176-19 Sec. 1372.031. PRIORITIES FOR RESERVATIONS AMONG CERTAIN
176-20 ISSUERS. If, on or before October 20, more than one issuer in a
176-21 category described by Section 1372.022(a)(2), (3), (4), or (6)
176-22 applies for a reservation of the state ceiling for the next program
176-23 year, the board shall grant reservations in that category in the
176-24 order determined by the board by lot. (V.A.C.S. Art. 5190.9a, Sec.
176-25 3(c) (part).)
176-26 Sec. 1372.032. PRIORITIES FOR RESERVATIONS AMONG HOUSING
176-27 FINANCE CORPORATIONS. (a) If, on or before October 20, more than
177-1 one housing finance corporation applies for a reservation of the
177-2 state ceiling for qualified mortgage bonds for the next program
177-3 year, the board shall give priority in granting reservations in
177-4 that category to issuers that:
177-5 (1) applied before September 1 of the preceding year
177-6 for a reservation on behalf of the same local population for that
177-7 year; but
177-8 (2) were not granted a reservation during that year.
177-9 (b) The priority of an issuer under Subsection (a) that is
177-10 composed of more than one jurisdiction is not affected by the
177-11 issuer's loss of a sponsoring local government and that
177-12 government's population if the dollar amount of the application has
177-13 not increased.
177-14 (c) Within the group of issuers given priority and within
177-15 the group not given priority, the board shall grant reservations in
177-16 reverse order of the date of the most recent closing of qualified
177-17 mortgage bonds applicable to the housing finance corporations, with
177-18 a corporation that has never received a reservation for mortgage
177-19 revenue bonds being the first to receive a reservation and the
177-20 corporation that had the most recent closing being the last to
177-21 receive a reservation. If closings occurred on the same date, the
177-22 board shall grant reservations in the order determined by the board
177-23 by lot.
177-24 (d) For purposes of Subsection (c), the most recent closing
177-25 applicable to a newly created housing finance corporation sponsored
177-26 by one or more local governments that had previously sponsored
177-27 another housing finance corporation, whether existing or not, or to
178-1 a housing finance corporation sponsored by a local government that
178-2 has participated in the program of another housing finance
178-3 corporation is the most recent closing of qualified mortgage bonds
178-4 the proceeds of which were available to the population of the
178-5 corporation.
178-6 (e) A housing finance corporation or its sponsoring local
178-7 government may not achieve an advantage in the determination of
178-8 its most recent closing by creating, dissolving, or withdrawing
178-9 from a housing finance corporation. (V.A.C.S. Art. 5190.9a, Sec.
178-10 3(c) (part).)
178-11 Sec. 1372.033. PRIORITIES FOR RESERVATIONS AMONG CERTAIN
178-12 ISSUERS OF QUALIFIED STUDENT LOAN BONDS. (a) If, on or before
178-13 October 20, more than one issuer authorized by Section 53.47,
178-14 Education Code, to issue qualified student loan bonds applies for a
178-15 reservation of the state ceiling for qualified student loan bonds
178-16 for the next program year, the board shall grant reservations in
178-17 that category in reverse order of the date of the most recent
178-18 closing of qualified student loan bonds by each issuer. The issuer
178-19 that had the most recent closing shall be the last to receive a
178-20 reservation.
178-21 (b) If closings occurred on the same date, the board shall
178-22 grant reservations in the order determined by the board by lot.
178-23 (V.A.C.S. Art. 5190.9a, Sec. 3(c) (part).)
178-24 Sec. 1372.034. ORDER OF ACCEPTANCE OF CERTAIN APPLICATIONS
178-25 FOR RESERVATION. The board shall accept applications for a
178-26 reservation submitted after October 20 in the order in which they
178-27 are received. (V.A.C.S. Art. 5190.9a, Sec. 3(c) (part).)
179-1 Sec. 1372.035. GRANTING OF RESERVATIONS; ORDER. (a) The
179-2 board may not grant a reservation of a portion of the state ceiling
179-3 for a program year before January 2 or after December 1 of that
179-4 year.
179-5 (b) Except as provided by Sections 1372.031-1372.033, the
179-6 board shall grant reservations in the order in which the
179-7 applications for those reservations are received, regardless of the
179-8 amounts of the related bond issues. (V.A.C.S. Art. 5190.9a, Secs.
179-9 2(a) (part); 3(c) (part), (d) (part).)
179-10 Sec. 1372.036. RESERVATIONS FROM PORTION OF STATE CEILING
179-11 SUBSEQUENTLY BECOMING AVAILABLE. (a) If, before June 1, any
179-12 portion of the state ceiling in a category described by Section
179-13 1372.022(a) from which issuers were granted reservations becomes
179-14 available in that category:
179-15 (1) those amounts of the state ceiling shall be
179-16 aggregated; and
179-17 (2) the board shall grant reservations from that
179-18 category on June 1.
179-19 (b) If, after June 1 and before August 25, any portion of
179-20 the state ceiling in a category described by Section 1372.022(a)
179-21 from which issuers were granted reservations becomes available in
179-22 that category:
179-23 (1) those amounts of the state ceiling shall be
179-24 aggregated; and
179-25 (2) the board shall grant reservations from that
179-26 category on August 25.
179-27 (c) After January 1, the board may grant a reservation to an
180-1 issuer if the amount of state ceiling available in a category is
180-2 greater than the amount of state ceiling applied for in that
180-3 category. (V.A.C.S. Art. 5190.9a, Sec. 3(e).)
180-4 Sec. 1372.037. LIMITATIONS ON GRANTING OF RESERVATIONS FOR
180-5 INDIVIDUAL PROJECTS. Before September 1, for any one project, the
180-6 board may not grant a reservation for that year that is greater
180-7 than:
180-8 (1) $25 million, if the issuer is an issuer of
180-9 qualified mortgage bonds, other than the Texas Department of
180-10 Housing and Community Affairs;
180-11 (2) $50 million, if the issuer is an issuer of a
180-12 state-voted issue, other than the Texas Higher Education
180-13 Coordinating Board, or $75 million, if the issuer is the Texas
180-14 Higher Education Coordinating Board;
180-15 (3) the amount to which the Internal Revenue Code
180-16 limits issuers of qualified small issue bonds and enterprise zone
180-17 facility bonds, if the issuer is an issuer of those bonds;
180-18 (4) the lesser of $15 million or 15 percent of the
180-19 amount set aside for reservation by issuers of qualified
180-20 residential rental project bonds, if the issuer is an issuer of
180-21 those bonds;
180-22 (5) $35 million, if the issuer is an issuer authorized
180-23 by Section 53.47, Education Code, to issue qualified student loan
180-24 bonds; or
180-25 (6) $25 million, if the issuer is any other issuer of
180-26 bonds that require an allocation. (V.A.C.S. Art. 5190.9a, Sec.
180-27 3(a).)
181-1 Sec. 1372.038. RESERVATION DATE. The reservation date for
181-2 an issue is the date on which the board notifies an issuer whose
181-3 application for the reservation has been accepted for filing by the
181-4 board that a portion of the state ceiling is available to that
181-5 issue. (V.A.C.S. Art. 5190.9a, Sec. 6(d).)
181-6 Sec. 1372.039. CERTIFICATION REQUIRED OF ISSUER;
181-7 CANCELLATION ON FAILURE. (a) Not later than the 35th day after an
181-8 issuer's reservation date, the issuer shall submit to the board:
181-9 (1) a certificate signed by the issuer that certifies
181-10 the principal amount of the bonds to be issued; and
181-11 (2) a list of finance team members and their addresses
181-12 and telephone numbers.
181-13 (b) If the principal amount certified by the issuer is less
181-14 than the amount stated in the issuer's application for the
181-15 reservation, the amount of the issuer's reservation is reduced to
181-16 the amount certified.
181-17 (c) If an issuer does not submit the documents as required
181-18 by this section and the fee as required by Section 1372.006(d)(1):
181-19 (1) the reservation is canceled; and
181-20 (2) from the reservation date of the canceled
181-21 reservation until the expiration of the applicable period described
181-22 by Section 1372.042(a) or (b):
181-23 (A) no issuer may submit an application for a
181-24 reservation for the same project; and
181-25 (B) the issuer is eligible for a carryforward
181-26 designation for the project only as provided by Subchapter C.
181-27 (V.A.C.S. Art. 5190.9a, Secs. 6(a) (part), (b), (c).)
182-1 Sec. 1372.040. RESERVATION BY CERTAIN ISSUERS OF QUALIFIED
182-2 MORTGAGE BONDS OF MONEY FOR MORTGAGES FOR CERTAIN PERSONS. An
182-3 issuer of qualified mortgage bonds, other than the Texas Department
182-4 of Housing and Community Affairs, shall reserve for six months 50
182-5 percent of the funds available for loans outside the federally
182-6 designated target areas to provide mortgages to individuals and
182-7 families with incomes below 80 percent of the applicable median
182-8 family income, as defined by Section 143(f)(4), Internal Revenue
182-9 Code (26 U.S.C. Section 143(f)(4)). (V.A.C.S. Art. 5190.9a, Sec.
182-10 3(g).)
182-11 Sec. 1372.041. REFUSAL TO ACCEPT RESERVATION BY ISSUER.
182-12 (a) An issuer may:
182-13 (1) refuse to accept a reservation if the amount of
182-14 state ceiling available is less than the amount for which the
182-15 issuer applied; or
182-16 (2) refuse to accept a reservation for any amount if
182-17 the reservation is granted after September 23.
182-18 (b) The amount of available state ceiling is subject to the
182-19 grant of a reservation to each succeeding issuer eligible to be
182-20 granted a reservation of that available state ceiling in the order
182-21 of priority under this subchapter.
182-22 (c) An issuer's refusal to accept a reservation does not
182-23 affect the issuer's order of priority for a subsequent grant of a
182-24 reservation. (V.A.C.S. Art. 5190.9a, Sec. 3(f).)
182-25 Sec. 1372.042. DEADLINE FOR CLOSING ON BONDS BY ISSUER.
182-26 (a) An issuer other than an issuer of qualified mortgage bonds
182-27 shall close on the bonds for which the reservation was granted not
183-1 later than the 120th day after the reservation date.
183-2 (b) An issuer of qualified mortgage revenue bonds shall
183-3 close on the bonds for which the reservation was granted not later
183-4 than the 180th day after the reservation date.
183-5 (c) Notwithstanding Subsections (a) and (b), the issuer
183-6 shall close on the bonds before December 24.
183-7 (d) Not later than the fifth business day after the date on
183-8 which the bonds are closed, the issuer shall submit to the board:
183-9 (1) a written notice stating the delivery date of the
183-10 bonds and the principal amount of the bonds issued; and
183-11 (2) a certified copy of the document authorizing the
183-12 bonds and any other document relating to the issuance of the bonds,
183-13 including a statement of the bonds':
183-14 (A) principal amount;
183-15 (B) interest rate or formula by which the
183-16 interest rate is computed;
183-17 (C) maturity schedule; and
183-18 (D) purchaser or purchasers. (V.A.C.S.
183-19 Art. 5190.9a, Secs. 7(a), (b), (d).)
183-20 Sec. 1372.043. CANCELLATION OF RESERVATION ON ISSUER'S
183-21 FAILURE TO TIMELY CLOSE ON BONDS. If an issuer does not close on
183-22 the issuer's bonds as required by Section 1372.042:
183-23 (1) the reservation for the issue is canceled; and
183-24 (2) for the period beginning on the reservation date
183-25 and ending on the 150th day after the reservation date or on the
183-26 210th day after the reservation date if the issuer is an issuer of
183-27 qualified mortgage bonds:
184-1 (A) no issuer may submit an application for a
184-2 reservation for the same project; and
184-3 (B) the issuer is eligible for a carryforward
184-4 designation for the project only as provided by Subchapter C.
184-5 (V.A.C.S. Art. 5190.9a, Sec. 7(c).)
184-6 Sec. 1372.044. ASSIGNMENT OF RESERVATION. A reservation may
184-7 be assigned only between a governmental unit and an issuer that is
184-8 authorized to issue private activity bonds on behalf of that
184-9 governmental unit. (V.A.C.S. Art. 5190.9a, Sec. 5.)
184-10 (Sections 1372.045-1372.060 reserved for expansion)
184-11 SUBCHAPTER C. CARRYFORWARD OF STATE CEILING
184-12 Sec. 1372.061. DESIGNATION BY BOARD OF CERTAIN AMOUNTS OF
184-13 STATE CEILING AS CARRYFORWARD. The board may designate as
184-14 carryforward:
184-15 (1) the amount of the state ceiling that is not
184-16 reserved before December 15; and
184-17 (2) any amount of the state ceiling that:
184-18 (A) was reserved before December 15; and
184-19 (B) becomes available on or after that date
184-20 because of the cancellation of a reservation. (V.A.C.S.
184-21 Art. 5190.9a, Sec. 9(a) (part).)
184-22 Sec. 1372.062. PRIORITY CLASSIFICATIONS OF CARRYFORWARD
184-23 DESIGNATIONS. The board shall:
184-24 (1) designate amounts as carryforward in accordance
184-25 with the system of priority classifications specified in Sections
184-26 1372.063-1372.068; and
184-27 (2) in each classification, make the designations in
185-1 order of the applications for those designations. (V.A.C.S.
185-2 Art. 5190.9a, Sec. 9(a) (part).)
185-3 Sec. 1372.063. PRIORITY 1 CARRYFORWARD CLASSIFICATION. The
185-4 priority 1 carryforward classification applies to an issuer of a
185-5 state-voted issue. (V.A.C.S. Art. 5190.9a, Sec. 9(b) (part).)
185-6 Sec. 1372.064. PRIORITY 2 CARRYFORWARD CLASSIFICATION. The
185-7 priority 2 carryforward classification applies to an issuer of
185-8 bonds approved by the voters of a political subdivision of this
185-9 state if:
185-10 (1) the bonds will be private activity bonds for which
185-11 an allocation will be required for the bonds to be tax exempt under
185-12 the Internal Revenue Code; or
185-13 (2) the excess private use of a governmental bond will
185-14 require allocation so that the bond may retain its tax exempt
185-15 status under the Internal Revenue Code. (V.A.C.S. Art. 5190.9a,
185-16 Secs. 1(9), 9(b) (part).)
185-17 Sec. 1372.065. PRIORITY 3 CARRYFORWARD CLASSIFICATION. The
185-18 priority 3 carryforward classification applies to:
185-19 (1) a state agency, other than an issuer of a
185-20 state-voted issue; and
185-21 (2) a political subdivision whose board of directors
185-22 holds office under Section 30a, Article XVI, Texas Constitution.
185-23 (V.A.C.S. Art. 5190.9a, Sec. 9(b) (part).)
185-24 Sec. 1372.066. PRIORITY 4 CARRYFORWARD CLASSIFICATION.
185-25 (a) The priority 4 carryforward classification applies to any
185-26 political subdivision:
185-27 (1) that is authorized to issue bonds; and
186-1 (2) to which priority carryforward classifications 1-3
186-2 do not apply.
186-3 (b) A project that is the subject of an application for a
186-4 priority 4 carryforward classification must be owned by a
186-5 governmental unit in accordance with applicable provisions of the
186-6 Internal Revenue Code. (V.A.C.S. Art. 5190.9a, Sec. 9(b) (part).)
186-7 Sec. 1372.067. PRIORITY 5 CARRYFORWARD CLASSIFICATION.
186-8 (a) The priority 5 carryforward classification applies to an
186-9 issuer that:
186-10 (1) was created to act on behalf of this state or one
186-11 or more political subdivisions of this state; and
186-12 (2) is applying for carryforward for a project:
186-13 (A) for which there has been an inducement
186-14 resolution or other comparable preliminary approval; and
186-15 (B) with respect to which:
186-16 (i) a binding contract to incur
186-17 significant expenditures for construction, reconstruction, or
186-18 rehabilitation was entered into before submission of the
186-19 application;
186-20 (ii) significant expenditures for
186-21 construction, reconstruction, or rehabilitation were readily
186-22 identifiable with and necessary to carry out a binding contract for
186-23 the supply of property or services or the sale of output; or
186-24 (iii) significant expenditures were paid
186-25 or incurred before submission of the application.
186-26 (b) In this section, "significant expenditures" means
186-27 expenditures that are greater than the lesser of:
187-1 (1) $1 million; or
187-2 (2) 10 percent of the reasonably anticipated cost of
187-3 the project. (V.A.C.S. Art. 5190.9a, Sec. 9(b) (part).)
187-4 Sec. 1372.068. PRIORITY 6 CARRYFORWARD CLASSIFICATION. The
187-5 priority 6 carryforward classification applies to an issuer that:
187-6 (1) was created to act on behalf of this state or one
187-7 or more political subdivisions of this state; and
187-8 (2) is applying for carryforward for a project that is
187-9 not eligible for another priority carryforward classification.
187-10 (V.A.C.S. Art. 5190.9a, Sec. 9(b) (part).)
187-11 Sec. 1372.069. APPLICATION FOR CARRYFORWARD DESIGNATION;
187-12 LIMITATIONS. (a) An issuer may apply for a carryforward
187-13 designation at any time during the year in which the designation is
187-14 sought.
187-15 (b) An issuer that applies for a carryforward designation
187-16 may not apply later in the same year for a reservation for the same
187-17 project.
187-18 (c) An issuer may not apply for the carryforward designation
187-19 of an amount that is greater than $50 million.
187-20 (d) The board by rule shall prevent an issuer from applying
187-21 for a carryforward designation in an amount that is greater than
187-22 the amount needed. (V.A.C.S. Art. 5190.9a, Secs. 9(a) (part), (f),
187-23 (g).)
187-24 Sec. 1372.070. FORM AND CONTENTS OF APPLICATION FOR
187-25 CARRYFORWARD APPLICATION. An application for a carryforward
187-26 designation must:
187-27 (1) be on a form prescribed by the board;
188-1 (2) be signed by a member or officer of the issuer and
188-2 by:
188-3 (A) the governor, if the issuer was created to
188-4 act on behalf of this state; or
188-5 (B) the presiding officer or another authorized
188-6 official of each political subdivision, if the issuer was created
188-7 to act on behalf of one or more political subdivisions of this
188-8 state;
188-9 (3) state the amount of carryforward sought;
188-10 (4) describe the project;
188-11 (5) state which priority classification is applicable
188-12 to the applicant;
188-13 (6) include evidence satisfactory to the board that
188-14 that priority classification is correct; and
188-15 (7) contain any other information that the board by
188-16 rule requires. (V.A.C.S. Art. 5190.9a, Secs. 1(12) (part), 9(c).)
188-17 Sec. 1372.071. ACTION ON APPLICATION FOR CARRYFORWARD
188-18 DESIGNATION. On receipt of an application for a carryforward
188-19 designation, the board shall:
188-20 (1) determine whether the application complies with
188-21 the requirements of this chapter and board rules; and
188-22 (2) note its determination on the application.
188-23 (V.A.C.S. Art. 5190.9a, Sec. 9(d).)
188-24 Sec. 1372.072. AMENDMENT OR WITHDRAWAL OF APPLICATION FOR
188-25 CARRYFORWARD DESIGNATION. (a) An issuer may amend or withdraw an
188-26 application for a carryforward designation by submitting to the
188-27 board a notice of the amendment or withdrawal.
189-1 (b) If an application is amended, the application's place in
189-2 the order of eligibility for a carryforward designation in a
189-3 priority classification is determined using the date of the
189-4 amendment instead of the date of the original application.
189-5 (V.A.C.S. Art. 5190.9a, Sec. 9(e).)
189-6 (Chapters 1373-1400 reserved for expansion)
189-7 SUBTITLE G. SPECIFIC AUTHORITY FOR STATE GOVERNMENT
189-8 TO ISSUE SECURITIES
189-9 CHAPTER 1401. BONDS FOR CERTAIN CRIMINAL JUSTICE OR
189-10 MENTAL HEALTH AND MENTAL RETARDATION FACILITIES
189-11 SUBCHAPTER A. GENERAL PROVISIONS
189-12 Sec. 1401.001. DEFINITIONS
189-13 Sec. 1401.002. BOND REVIEW BOARD MEMBER IMMUNITY
189-14 Sec. 1401.003. LEGISLATIVE AUTHORITY
189-15 (Sections 1401.004-1401.020 reserved for expansion)
189-16 SUBCHAPTER B. BOND REVIEW BOARD OVERSIGHT
189-17 Sec. 1401.021. BOND REVIEW BOARD APPROVAL OF BOND
189-18 ISSUANCE
189-19 Sec. 1401.022. BOND REVIEW BOARD APPROVAL OF PROJECT
189-20 (Sections 1401.023-1401.040 reserved for expansion)
189-21 SUBCHAPTER C. GENERAL OBLIGATION BONDS AND PROCEEDS
189-22 Sec. 1401.041. GENERAL OBLIGATION BONDS
189-23 Sec. 1401.042. REFUNDING BONDS
189-24 Sec. 1401.043. REFINANCING CERTAIN OBLIGATIONS
189-25 Sec. 1401.044. DISTRIBUTION OF PROCEEDS
189-26 Sec. 1401.045. INTEREST AND SINKING FUND BALANCE
189-27 REPORT
190-1 (Sections 1401.046-1401.060 reserved for expansion)
190-2 SUBCHAPTER D. REVENUE BONDS AND PROCEEDS
190-3 Sec. 1401.061. REVENUE BONDS
190-4 Sec. 1401.062. REVENUE BOND PROCEEDS
190-5 Sec. 1401.063. INVESTMENT OF PROCEEDS
190-6 Sec. 1401.064. PAYMENT OF PRINCIPAL OR INTEREST
190-7 Sec. 1401.065. BOND REQUIREMENTS
190-8 (Sections 1401.066-1401.080 reserved for expansion)
190-9 SUBCHAPTER E. REVENUE BOND PROJECTS
190-10 Sec. 1401.081. CONDITIONS FOR BEGINNING PROJECT
190-11 Sec. 1401.082. REVENUE BOND REPAYMENT AND LEASE AGREEMENT
190-12 Sec. 1401.083. RIGHTS TO FINANCED PROPERTY
190-13 (Sections 1401.084-1401.100 reserved for expansion)
190-14 SUBCHAPTER F. FINANCIAL PROVISIONS
190-15 Sec. 1401.101. RESTRICTION ON AMOUNT OF OUTSTANDING BONDS
190-16 Sec. 1401.102. EXEMPTION FROM TAXATION
190-17 (Sections 1401.103-1401.120 reserved for expansion)
190-18 SUBCHAPTER G. MISCELLANEOUS PROVISIONS
190-19 Sec. 1401.121. TEXAS DEPARTMENT OF CRIMINAL JUSTICE
190-20 MASTER PLAN
190-21 Sec. 1401.122. HISTORICALLY UNDERUTILIZED BUSINESS
190-22 ASSISTANCE
190-23 CHAPTER 1401. BONDS FOR CERTAIN CRIMINAL JUSTICE OR
190-24 MENTAL HEALTH AND MENTAL RETARDATION FACILITIES
190-25 SUBCHAPTER A. GENERAL PROVISIONS
190-26 Sec. 1401.001. DEFINITIONS. In this chapter:
190-27 (1) "Authority" means the Texas Public Finance
191-1 Authority.
191-2 (2) "Board" means the board of directors of the
191-3 authority. (V.A.C.S. Art. 601d-1, Secs. 1(1), (2).)
191-4 Sec. 1401.002. BOND REVIEW BOARD MEMBER IMMUNITY. A Bond
191-5 Review Board member is not liable for damages that result from
191-6 performing a function of the member under this chapter. (V.A.C.S.
191-7 Art. 601d-1, Sec. 2(f).)
191-8 Sec. 1401.003. LEGISLATIVE AUTHORITY. The authority may not
191-9 issue or sell a bond under this chapter for a project unless the
191-10 legislature has authorized the specific project by:
191-11 (1) this chapter;
191-12 (2) the General Appropriations Act; or
191-13 (3) Chapter 1232. (V.A.C.S. Art. 601d-1, Sec. 10.)
191-14 (Sections 1401.004-1401.020 reserved for expansion)
191-15 SUBCHAPTER B. BOND REVIEW BOARD OVERSIGHT
191-16 Sec. 1401.021. BOND REVIEW BOARD APPROVAL OF BOND ISSUANCE.
191-17 The authority may not issue a bond under this chapter unless the
191-18 Bond Review Board has reviewed and approved the issuance.
191-19 (V.A.C.S. Art. 601d-1, Sec. 2(d) (part).)
191-20 Sec. 1401.022. BOND REVIEW BOARD APPROVAL OF PROJECT. The
191-21 proceeds of a bond issued under this chapter may not be used to
191-22 finance a project unless the Bond Review Board has reviewed and
191-23 approved the project. (V.A.C.S. Art. 601d-1, Sec. 2(d) (part).)
191-24 (Sections 1401.023-1401.040 reserved for expansion)
191-25 SUBCHAPTER C. GENERAL OBLIGATION BONDS AND PROCEEDS
191-26 Sec. 1401.041. GENERAL OBLIGATION BONDS. (a) As provided
191-27 by Section 49-h(a), Article III, Texas Constitution, the authority
192-1 may:
192-2 (1) issue general obligation bonds in an amount not to
192-3 exceed $500 million; and
192-4 (2) distribute the bond proceeds as provided by that
192-5 section.
192-6 (b) As provided by Section 49-h(c), Article III, Texas
192-7 Constitution, the authority may:
192-8 (1) issue general obligation bonds in an amount not to
192-9 exceed $400 million; and
192-10 (2) distribute the bond proceeds to any appropriate
192-11 agency to:
192-12 (A) acquire, construct, or equip a new facility;
192-13 or
192-14 (B) make a major repair of or renovate a
192-15 facility, corrections institution, youth corrections institution,
192-16 or mental health and mental retardation institution.
192-17 (c) As provided by Section 49-h(d), Article III, Texas
192-18 Constitution, the authority may:
192-19 (1) issue general obligation bonds in an amount not to
192-20 exceed $1.055 billion and distribute the bond proceeds to any
192-21 appropriate agency to:
192-22 (A) acquire, construct, or equip a:
192-23 (i) new prison or substance abuse felony
192-24 punishment facility to confine criminals; or
192-25 (ii) youth corrections institution;
192-26 (B) make a major repair of or renovate a prison
192-27 facility or youth corrections institution; or
193-1 (C) acquire, make a major repair of, or renovate
193-2 a facility for use as a state prison, a substance abuse felony
193-3 punishment facility, or a facility in which a pilot program
193-4 established as provided by Section 614.011, Health and Safety Code,
193-5 is conducted;
193-6 (2) issue general obligation bonds in an amount not to
193-7 exceed $45 million and distribute the bond proceeds to any
193-8 appropriate agency to:
193-9 (A) acquire, construct, or equip a new mental
193-10 health or mental retardation facility, including a community-based
193-11 mental health or mental retardation facility; or
193-12 (B) make a major repair of or renovate a mental
193-13 health or mental retardation facility; and
193-14 (3) issue general obligation bonds in an amount not to
193-15 exceed $50 million and distribute the bond proceeds to any
193-16 appropriate agency to:
193-17 (A) acquire, construct, or equip a new youth
193-18 corrections facility; or
193-19 (B) make a major repair of or renovate a youth
193-20 corrections facility.
193-21 (d) As provided by Section 49-h(e), Article III, Texas
193-22 Constitution, the authority may:
193-23 (1) issue general obligation bonds in an amount not to
193-24 exceed $1 billion; and
193-25 (2) distribute the bond proceeds as provided by that
193-26 section. (V.A.C.S. Art. 601d-1, Secs. 4(a)(1), (2) (part), (3),
193-27 (4), (d) (part), (e).)
194-1 Sec. 1401.042. REFUNDING BONDS. The authority may issue a
194-2 general obligation bond authorized under Section 1401.041 to refund
194-3 a revenue bond issued under Subchapter D. (V.A.C.S. Art. 601d-1,
194-4 Secs. 4(a)(6) (part), (d) (part).)
194-5 Sec. 1401.043. REFINANCING CERTAIN OBLIGATIONS. (a) The
194-6 proceeds of a bond issued under Section 1401.041(a), (b), (c)(1),
194-7 or (d) may be used to refinance an existing obligation for a
194-8 purpose described by those subsections.
194-9 (b) The proceeds of a bond issued under Section
194-10 1401.041(c)(2) may be used to refinance an existing obligation for
194-11 a purpose described by that subdivision. (V.A.C.S. Art. 601d-1,
194-12 Secs. 4(a)(6) (part), (d) (part).)
194-13 Sec. 1401.044. DISTRIBUTION OF PROCEEDS. The authority by
194-14 rule shall establish guidelines, criteria, and procedures for
194-15 distributions of general obligation bond proceeds. (V.A.C.S.
194-16 Art. 601d-1, Sec. 4(c).)
194-17 Sec. 1401.045. INTEREST AND SINKING FUND BALANCE REPORT.
194-18 (a) The authority shall report to the Legislative Budget Board and
194-19 the Governor's Office of Budget and Planning an accurate estimate
194-20 of interest and sinking fund balances available for payment of debt
194-21 service on general obligation bonds.
194-22 (b) The report must be made not later than January 1 of each
194-23 odd-numbered year. (V.A.C.S. Art. 601d-1, Sec. 4(f).)
194-24 (Sections 1401.046-1401.060 reserved for expansion)
194-25 SUBCHAPTER D. REVENUE BONDS AND PROCEEDS
194-26 Sec. 1401.061. REVENUE BONDS. (a) The authority may:
194-27 (1) issue revenue bonds; and
195-1 (2) distribute the bond proceeds to any appropriate
195-2 agency to:
195-3 (A) acquire, construct, or equip a new facility;
195-4 or
195-5 (B) make a major repair of or renovate a:
195-6 (i) facility;
195-7 (ii) corrections institution, including a
195-8 facility authorized by Section 495.001(a) or 495.021(a);
195-9 (iii) criminal justice facility for the
195-10 Texas Department of Criminal Justice;
195-11 (iv) youth corrections institution; or
195-12 (v) mental health and mental retardation
195-13 institution.
195-14 (b) The bond proceeds may be used to refinance an existing
195-15 obligation for a purpose described by Subsection (a). (V.A.C.S.
195-16 Art. 601d-1, Sec. 5(a).)
195-17 Sec. 1401.062. REVENUE BOND PROCEEDS. On issuing bonds
195-18 under Section 1401.061, the board shall:
195-19 (1) certify to the appropriate agency and to the
195-20 comptroller that the funds are available; and
195-21 (2) deposit the bond proceeds in the state treasury to
195-22 the account of the appropriate agency. (V.A.C.S. Art. 601d-1, Sec.
195-23 5(b).)
195-24 Sec. 1401.063. INVESTMENT OF PROCEEDS. (a) With the
195-25 board's concurrence, the comptroller shall invest the unexpended
195-26 revenue bond proceeds and the investment income of those unexpended
195-27 proceeds in investments approved by law for the investment of state
196-1 funds.
196-2 (b) The investment income required for project costs, and
196-3 not required to be rebated to the federal government or used for
196-4 debt service, as determined by the board, shall be credited to the
196-5 appropriate agency. The investment income not required for project
196-6 costs, not required to be rebated to the federal government, and
196-7 not required for debt service shall be allocated as provided by
196-8 Section 404.071. (V.A.C.S. Art. 601d-1, Sec. 5(d).)
196-9 Sec. 1401.064. PAYMENT OF PRINCIPAL OR INTEREST. The board
196-10 may provide that the principal of and interest on revenue bonds
196-11 issued under this subchapter be paid from any source of funds
196-12 lawfully available to the board. (V.A.C.S. Art. 601d-1, Sec. 5(e)
196-13 (part).)
196-14 Sec. 1401.065. BOND REQUIREMENTS. Revenue bonds issued
196-15 under this subchapter are subject to Sections 1232.117 and
196-16 1232.118. (V.A.C.S. Art. 601d-1, Sec. 5(g).)
196-17 (Sections 1401.066-1401.080 reserved for expansion)
196-18 SUBCHAPTER E. REVENUE BOND PROJECTS
196-19 Sec. 1401.081. CONDITIONS FOR BEGINNING PROJECT. The
196-20 appropriate agency may begin an approved project financed under
196-21 Subchapter D after:
196-22 (1) the authority has certified that the authority has
196-23 authorized obligations in an amount sufficient to pay the
196-24 construction or purchase price of the project under an interim
196-25 construction finance agreement established by the authority in
196-26 accordance with Chapter 1371; or
196-27 (2) the following conditions are met:
197-1 (A) the revenue bond proceeds are deposited;
197-2 (B) the comptroller has certified that the funds
197-3 are available;
197-4 (C) any reserve funds or capitalized interest
197-5 certified to be reasonably required by the authority has been
197-6 transferred; and
197-7 (D) according to the authority's statement that
197-8 specifies those costs, the costs of issuance of the bonds have been
197-9 paid. (V.A.C.S. Art. 601d-1, Sec. 5(c).)
197-10 Sec. 1401.082. REVENUE BOND REPAYMENT AND LEASE AGREEMENT.
197-11 (a) In accordance with a lease agreement, the appropriate agency,
197-12 with money appropriated for the purpose, shall pay to the board an
197-13 amount the board determines to be sufficient to:
197-14 (1) pay the principal of and interest on the bonds
197-15 issued under Section 1401.061;
197-16 (2) maintain a reserve fund necessary to service the
197-17 debt; and
197-18 (3) reimburse the authority for other costs and
197-19 expenses relating to:
197-20 (A) a project; or
197-21 (B) the outstanding bonds.
197-22 (b) For purposes of this section, a state agency may enter
197-23 into a lease agreement in the name of and on behalf of the state.
197-24 (c) A state agency shall include in its biennial
197-25 appropriation request an amount sufficient to pay the principal of
197-26 and interest on outstanding bonds issued under Section 1401.061 for
197-27 the agency. (V.A.C.S. Art. 601d-1, Secs. 5(f), (h) (part).)
198-1 Sec. 1401.083. RIGHTS TO FINANCED PROPERTY. (a) Property
198-2 financed by the authority under Subchapter D does not become part
198-3 of other property to which it is attached or affixed or into which
198-4 it is incorporated, regardless of whether the other property is
198-5 real or personal.
198-6 (b) A state agency has the rights of a lessee in property
198-7 financed by the authority under Subchapter D. A person who claims
198-8 under or through the agency may not acquire any greater rights with
198-9 respect to the property. (V.A.C.S. Art. 601d-1, Sec. 5(i).)
198-10 (Sections 1401.084-1401.100 reserved for expansion)
198-11 SUBCHAPTER F. FINANCIAL PROVISIONS
198-12 Sec. 1401.101. RESTRICTION ON AMOUNT OF OUTSTANDING BONDS.
198-13 The combined amount of outstanding revenue bonds and outstanding
198-14 general obligation bonds issued under this chapter may not exceed
198-15 $900 million. (V.A.C.S. Art. 601d-1, Sec. 6.)
198-16 Sec. 1401.102. EXEMPTION FROM TAXATION. A bond issued under
198-17 this chapter, any transaction related to the bond, and profits made
198-18 in the sale of the bond are exempt from taxation by this state, a
198-19 state agency, or a municipality or other political subdivision of
198-20 this state. (V.A.C.S. Art. 601d-1, Sec. 9.)
198-21 (Sections 1401.103-1401.120 reserved for expansion)
198-22 SUBCHAPTER G. MISCELLANEOUS PROVISIONS
198-23 Sec. 1401.121. TEXAS DEPARTMENT OF CRIMINAL JUSTICE MASTER
198-24 PLAN. (a) Unless the institutional division of the Texas
198-25 Department of Criminal Justice has submitted to the Bond Review
198-26 Board a master plan for the construction of corrections facilities,
198-27 the proceeds of bonds issued under this chapter may not be:
199-1 (1) distributed to the division; or
199-2 (2) used to finance a project of the division.
199-3 (b) The master plan must:
199-4 (1) be in the form, contain the information, and cover
199-5 the period prescribed by the Bond Review Board; and
199-6 (2) be revised annually. (V.A.C.S. Art. 601d-1, Sec.
199-7 3.)
199-8 Sec. 1401.122. HISTORICALLY UNDERUTILIZED BUSINESS
199-9 ASSISTANCE. (a) In this section, "historically underutilized
199-10 business" means a business entity that is formed for the purpose of
199-11 making a profit:
199-12 (1) at least 51 percent of which is owned by one or
199-13 more individuals, each of whom is socially disadvantaged because of
199-14 identification as a member of a group that has suffered the effects
199-15 of a discriminatory practice or similar insidious circumstance over
199-16 which the group has no control, including women, African Americans,
199-17 Hispanic Americans, Native Americans, and Asian Americans; or
199-18 (2) at least 51 percent of all classes of the shares
199-19 of stock or other equitable securities of which is owned by one or
199-20 more individuals, each of whom:
199-21 (A) is socially disadvantaged for a reason
199-22 described by Subdivision (1); and
199-23 (B) has a proportionate interest in the control,
199-24 operation, and management of the corporation's affairs.
199-25 (b) The authority shall make a good faith effort to use
199-26 historically underutilized businesses to assist in the issuance of
199-27 at least 30 percent of the total value of the bonds authorized by
200-1 Section 1401.041(d)(1).
200-2 (c) The authority shall report to the legislature and the
200-3 governor the level of historically underutilized business
200-4 participation in the bond issuance. (V.A.C.S. Art. 601d-1, Sec.
200-5 4(a)(5).)
200-6 CHAPTER 1402. PUBLIC SCHOOL FACILITIES FUNDING ACT
200-7 SUBCHAPTER A. GENERAL PROVISIONS
200-8 Sec. 1402.001. SHORT TITLE
200-9 Sec. 1402.002. DEFINITIONS
200-10 Sec. 1402.003. LIBERAL CONSTRUCTION
200-11 (Sections 1402.004-1402.020 reserved for expansion)
200-12 SUBCHAPTER B. ADMINISTRATIVE PROVISIONS
200-13 Sec. 1402.021. BOARD MEETINGS
200-14 Sec. 1402.022. DESIGNATED REPRESENTATIVE OF BOARD MEMBER
200-15 Sec. 1402.023. MAJORITY VOTE REQUIRED
200-16 Sec. 1402.024. BOARD ADMINISTRATION
200-17 Sec. 1402.025. COMPREHENSIVE STUDIES BY BOARD
200-18 Sec. 1402.026. ACCOUNTING AND FUNDS MANAGEMENT
200-19 Sec. 1402.027. BOARD RULES
200-20 (Sections 1402.028-1402.040 reserved for expansion)
200-21 SUBCHAPTER C. SCHOOL FACILITIES AID FUND
200-22 Sec. 1402.041. SCHOOL FACILITIES AID FUND
200-23 Sec. 1402.042. USE OF MONEY IN FUND
200-24 Sec. 1402.043. COMMINGLING PROHIBITED
200-25 Sec. 1402.044. FUND REVENUE
200-26 Sec. 1402.045. ACCOUNTS IN FUND
200-27 (Sections 1402.046-1402.060 reserved for expansion)
201-1 SUBCHAPTER D. SCHOOL FACILITIES AID RESERVE FUND
201-2 Sec. 1402.061. AUTHORITY TO ESTABLISH RESERVE FUND
201-3 Sec. 1402.062. REQUIRED DEBT SERVICE RESERVE DEFINED
201-4 Sec. 1402.063. SEPARATE ACCOUNTS IN RESERVE
201-5 FUND
201-6 Sec. 1402.064. USE OF MONEY IN RESERVE FUND
201-7 Sec. 1402.065. TRANSFER OF MONEY
201-8 Sec. 1402.066. CERTIFICATION BY BOARD OF AMOUNTS NECESSARY
201-9 TO RESTORE RESERVE FUND
201-10 (Sections 1402.067-1402.080 reserved for expansion)
201-11 SUBCHAPTER E. BONDS AND BOND PROCEEDS
201-12 Sec. 1402.081. ISSUANCE OF BONDS; LIMITATION ON AMOUNT
201-13 OUTSTANDING
201-14 Sec. 1402.082. AMOUNT AND DELIVERY DATE OF BOND PROCEEDS
201-15 Sec. 1402.083. SOURCE OF BOND PAYMENTS
201-16 Sec. 1402.084. APPROVAL AND FORM OF BONDS
201-17 Sec. 1402.085. INVESTMENT OF BOND PROCEEDS
201-18 Sec. 1402.086. ADDITIONAL RIGHTS AND POWERS OF COMPTROLLER
201-19 Sec. 1402.087. GUARANTEE OF BONDS
201-20 (Sections 1402.088-1402.100 reserved for expansion)
201-21 SUBCHAPTER F. ELIGIBILITY FOR AID
201-22 Sec. 1402.101. CONDITIONS FOR ELIGIBILITY
201-23 Sec. 1402.102. PERIOD OF QUALIFICATION FOR AID
201-24 Sec. 1402.103. APPLICATION FOR AID
201-25 (Sections 1402.104-1402.120 reserved for expansion)
201-26 SUBCHAPTER G. AID TO SCHOOL DISTRICTS
201-27 Sec. 1402.121. FORM OF AID
202-1 Sec. 1402.122. BOND PURCHASE PROCEDURE
202-2 Sec. 1402.123. AID FOR CAPITAL ASSETS AND MAINTENANCE
202-3 Sec. 1402.124. AID FOR INSTRUCTIONAL FACILITIES
202-4 Sec. 1402.125. CONDITION ON AID; SCHOOL DISTRICT FUNDS
202-5 Sec. 1402.126. RESTRICTIONS ON USE OF AID
202-6 Sec. 1402.127. LIMIT ON AMOUNT OF AID
202-7 Sec. 1402.128. QUALIFICATION STANDARDS FOR CAPITAL ASSETS
202-8 AND INSTRUCTIONAL FACILITIES
202-9 (Sections 1402.129-1402.140 reserved for expansion)
202-10 SUBCHAPTER H. REPAYMENT BY SCHOOL DISTRICTS; SECURITY
202-11 Sec. 1402.141. REPAYMENT OF BONDS PURCHASED BY BOARD
202-12 Sec. 1402.142. NOTICE BY COMPTROLLER OF FAILURE TO MAKE
202-13 TIMELY PAYMENT
202-14 Sec. 1402.143. DEDUCTION FROM FOUNDATION SCHOOL FUND
202-15 PAYMENTS
202-16 Sec. 1402.144. DELINQUENCY ON GUARANTEED BOND; TRANSFER FROM
202-17 PERMANENT SCHOOL FUND
202-18 CHAPTER 1402. PUBLIC SCHOOL FACILITIES FUNDING ACT
202-19 SUBCHAPTER A. GENERAL PROVISIONS
202-20 Sec. 1402.001. SHORT TITLE. This chapter may be cited as
202-21 the Public School Facilities Funding Act. (V.A.C.S. Art. 717t,
202-22 Sec. 1.)
202-23 Sec. 1402.002. DEFINITIONS. In this chapter:
202-24 (1) "Agency" means the Texas Education Agency.
202-25 (2) "Aid" means:
202-26 (A) making a loan to a qualifying district; or
202-27 (B) purchasing a bond issued by a qualifying
203-1 district.
203-2 (3) "Board" means the Bond Review Board.
203-3 (4) "Bond" includes a note or other obligation.
203-4 (5) "Capital asset" means:
203-5 (A) a permanent fixture, including mechanical or
203-6 electrical equipment, of an instructional facility; or
203-7 (B) furnishings or equipment of an instructional
203-8 facility.
203-9 (6) "Fund" means the school facilities aid fund under
203-10 Subchapter C, including any account created in that fund.
203-11 (7) "Instructional facility" means real property, a
203-12 building or other improvement to real property, or a fixture used
203-13 predominately for teaching or required by state law.
203-14 (8) "Qualifying district" means a school district that
203-15 qualifies for financial assistance under this chapter.
203-16 (9) "Reserve fund" means the school facilities aid
203-17 reserve fund under Subchapter D and includes any account created in
203-18 that fund. (V.A.C.S. Art. 717t, Sec. 2; New.)
203-19 Sec. 1402.003. LIBERAL CONSTRUCTION. This chapter shall be
203-20 construed liberally to effect its purpose. (V.A.C.S. Art. 717t,
203-21 Sec. 4 (part).)
203-22 (Sections 1402.004-1402.020 reserved for expansion)
203-23 SUBCHAPTER B. ADMINISTRATIVE PROVISIONS
203-24 Sec. 1402.021. BOARD MEETINGS. The board shall meet at
203-25 times that are agreed to by a majority of its members but at least
203-26 once each year to consider applications for aid and to transact any
203-27 other business. (V.A.C.S. Art. 717t, Sec. 5(a) (part).)
204-1 Sec. 1402.022. DESIGNATED REPRESENTATIVE OF BOARD MEMBER. A
204-2 member of the board may designate a person on the member's staff to
204-3 act in the member's place as a voting member of the board in all
204-4 respects. (V.A.C.S. Art. 717t, Sec. 5(a) (part).)
204-5 Sec. 1402.023. MAJORITY VOTE REQUIRED. An affirmative vote
204-6 of a majority of the board is necessary for an action of the board,
204-7 including the approval of a resolution or another proceeding, to be
204-8 effective. (V.A.C.S. Art. 717t, Sec. 5(a) (part).)
204-9 Sec. 1402.024. BOARD ADMINISTRATION. (a) The board may:
204-10 (1) use the resources and staff of its members; and
204-11 (2) employ, appoint, or contract with employees,
204-12 consultants, and agents, including engineers, attorneys, management
204-13 consultants, financial advisors, and other providers of
204-14 professional assistance.
204-15 (b) Money in the fund may be used to pay administrative
204-16 costs of the board relating to the performance of its duties under
204-17 this chapter, including compensation of an employee, agent,
204-18 consultant, or contractor. (V.A.C.S. Art. 717t, Sec. 5(b) (part).)
204-19 Sec. 1402.025. COMPREHENSIVE STUDIES BY BOARD. The board
204-20 may commission or enter into an interagency agreement to undertake
204-21 a comprehensive study of the needs of school districts in all or
204-22 part of the state for:
204-23 (1) the acquisition, construction, renovation, major
204-24 repair, remodeling, retrofitting, or improvement of capital assets
204-25 and instructional facilities; or
204-26 (2) assistance in paying maintenance expenses.
204-27 (V.A.C.S. Art. 717t, Secs. 5(c), 6(a) (part).)
205-1 Sec. 1402.026. ACCOUNTING AND FUNDS MANAGEMENT. The
205-2 comptroller shall perform as directed by the board any accounting
205-3 or funds management duty allowed or required by this chapter.
205-4 (V.A.C.S. Art. 717t, Sec. 5(d) (part).)
205-5 Sec. 1402.027. BOARD RULES. The board may adopt rules to
205-6 administer this chapter. (V.A.C.S. Art. 717t, Sec. 5(d) (part).)
205-7 (Sections 1402.028-1402.040 reserved for expansion)
205-8 SUBCHAPTER C. SCHOOL FACILITIES AID FUND
205-9 Sec. 1402.041. SCHOOL FACILITIES AID FUND. (a) The fund is
205-10 a revolving fund in the state treasury.
205-11 (b) The comptroller shall administer the fund as directed by
205-12 the board under this chapter and board rule. (V.A.C.S. Art. 717t,
205-13 Sec. 6(a) (part).)
205-14 Sec. 1402.042. USE OF MONEY IN FUND. (a) Money in the fund
205-15 may only be used to:
205-16 (1) purchase bonds of a qualifying district or to make
205-17 a loan to a qualifying district for:
205-18 (A) an expense related to the acquisition,
205-19 construction, renovation, major repair, remodeling, retrofitting,
205-20 maintenance, or improvement of a qualifying capital asset or an
205-21 instructional facility that meets the board's standards for
205-22 qualification under this chapter; or
205-23 (B) the funding of a cash-management program or
205-24 another short-term borrowing need for maintenance;
205-25 (2) aid a district in the issuance of bonds;
205-26 (3) pay administrative costs relating to the
205-27 performance of a duty under this chapter;
206-1 (4) pay the issuance cost, interest, principal, and
206-2 any premium on a bond issued under this chapter;
206-3 (5) make a transfer to the reserve fund required by
206-4 board resolution; or
206-5 (6) pay the cost of a study undertaken under Section
206-6 1402.025.
206-7 (b) Except for aid for a maintenance expense or to the
206-8 extent directly related to the acquisition, construction,
206-9 renovation, major repair, remodeling, retrofitting, or improvement
206-10 of a qualifying capital asset or instructional facility, money in
206-11 the fund may not be used to pay:
206-12 (1) a general administrative expense of a school
206-13 district; or
206-14 (2) any part of the salary or benefits of an official
206-15 or employee of a school district receiving aid under this chapter.
206-16 (V.A.C.S. Art. 717t, Secs. 6(a) (part), (c) (part), (d).)
206-17 Sec. 1402.043. COMMINGLING PROHIBITED. Except as provided
206-18 by this chapter, money in the fund may not be commingled or
206-19 deposited to the credit of another fund in the state treasury.
206-20 (V.A.C.S. Art. 717t, Sec. 6(a) (part).)
206-21 Sec. 1402.044. FUND REVENUE. The board shall require to be
206-22 deposited to the credit of the fund:
206-23 (1) the proceeds of a bond issued under this chapter
206-24 that are not required to be deposited to the credit of the reserve
206-25 fund, exclusive of the cost of issuance;
206-26 (2) any money received from the United States or from
206-27 a private source that is designated for a purpose of the fund;
207-1 (3) any repayment, interest, principal, or other
207-2 amount received in connection with aid provided under this chapter;
207-3 (4) any investment security or bond purchased by the
207-4 fund or held for a purpose of this chapter;
207-5 (5) interest or other earnings derived from the
207-6 investment of an amount described by Subdivision (1), (2), or (3);
207-7 and
207-8 (6) any amount transferred for deposit to the credit
207-9 of the fund. (V.A.C.S. Art. 717t, Sec. 6(b).)
207-10 Sec. 1402.045. ACCOUNTS IN FUND. (a) The board may:
207-11 (1) direct the comptroller to create accounts in the
207-12 fund as advisable;
207-13 (2) in the resolution authorizing the issuance of
207-14 bonds, dedicate one or more accounts, including future amounts to
207-15 be deposited in an account, to the payment of debt service on one
207-16 or more series of bonds issued under this chapter; and
207-17 (3) direct the comptroller to pledge one or more
207-18 accounts in the fund as security for a bond issued under this
207-19 chapter.
207-20 (b) The comptroller shall:
207-21 (1) keep each account separate from each other account
207-22 in the fund; and
207-23 (2) credit each account with each amount the board
207-24 transfers or dedicates to it. (V.A.C.S. Art. 717t, Sec. 6(e).)
207-25 (Sections 1402.046-1402.060 reserved for expansion)
207-26 SUBCHAPTER D. SCHOOL FACILITIES AID RESERVE FUND
207-27 Sec. 1402.061. AUTHORITY TO ESTABLISH RESERVE FUND.
208-1 (a) The board may direct the comptroller to create a school
208-2 facilities aid reserve fund in the state treasury.
208-3 (b) The board may direct the comptroller to deposit to the
208-4 credit of the reserve fund:
208-5 (1) the proceeds of a bond issued under this chapter;
208-6 (2) any payment of interest or principal from aid
208-7 granted under this chapter; and
208-8 (3) any other amount that may be transferred from the
208-9 fund that the board by resolution requires to be deposited to the
208-10 credit of the reserve fund. (V.A.C.S. Art. 717t, Sec. 7(a) (part).)
208-11 Sec. 1402.062. REQUIRED DEBT SERVICE RESERVE DEFINED. (a)
208-12 In this subchapter, "required debt service reserve" means, as of
208-13 the date of computation, the amount required to be on deposit in
208-14 the reserve fund or an account in the reserve fund as provided by
208-15 board resolution.
208-16 (b) In computing the amount of the required debt service
208-17 reserve, an investment shall be valued in the manner determined by
208-18 board resolution. (V.A.C.S. Art. 717t, Sec. 7(a) (part).)
208-19 Sec. 1402.063. SEPARATE ACCOUNTS IN RESERVE FUND. (a) The
208-20 board may direct the comptroller to create accounts in the reserve
208-21 fund as advisable.
208-22 (b) The comptroller shall:
208-23 (1) keep each account separate from each other account
208-24 in the reserve fund; and
208-25 (2) credit each account with each amount the board
208-26 transfers or dedicates to it.
208-27 (c) The board may pledge one or more accounts in the reserve
209-1 fund, including future amounts to be deposited to the credit of the
209-2 account, as security for one or more series of bonds issued under
209-3 this chapter.
209-4 (d) Additional bonds secured or benefited by an account in
209-5 the reserve fund may not be issued unless at that time the
209-6 appropriate account in the reserve fund contains the required debt
209-7 service reserve for all bonds then outstanding and secured or
209-8 benefited by that account.
209-9 (e) The debt service reserve requirement of Subsection (d)
209-10 may be met by:
209-11 (1) depositing as much of the proceeds of the bonds to
209-12 be issued, on their issuance, as is needed to equal the required
209-13 debt service reserve; or
209-14 (2) transferring money, surety bonds, or credit
209-15 agreements on deposit in the fund. (V.A.C.S. Art. 717t, Secs. 7(c)
209-16 (part), (e).)
209-17 Sec. 1402.064. USE OF MONEY IN RESERVE FUND. (a) Money in
209-18 the reserve fund shall be held and directly or by transfer to the
209-19 fund applied solely to the payment of the principal or redemption
209-20 price of and interest on bonds issued under this chapter as they
209-21 become due and payable.
209-22 (b) Except as provided by Subsection (a), money may not be
209-23 removed from the reserve fund or an account in the reserve fund if
209-24 that action would reduce the amount in the reserve fund or that
209-25 account to less than the required debt service reserve. (V.A.C.S.
209-26 Art. 717t, Sec. 7(a) (part).)
209-27 Sec. 1402.065. TRANSFER OF MONEY. Money in the reserve fund
210-1 or an account in the reserve fund in excess of the required debt
210-2 service reserve may be withdrawn by board resolution and
210-3 transferred to:
210-4 (1) the fund or to an account in the fund; or
210-5 (2) another account in the reserve fund. (V.A.C.S.
210-6 Art. 717t, Sec. 7(b).)
210-7 Sec. 1402.066. CERTIFICATION BY BOARD OF AMOUNTS NECESSARY
210-8 TO RESTORE RESERVE FUND. If an additional amount of money is
210-9 necessary to restore the reserve fund to an amount equal to the
210-10 required debt service reserve:
210-11 (1) the board may certify that fact to the
210-12 legislature; and
210-13 (2) the legislature may appropriate to the board for
210-14 deposit to the credit of the fund or reserve fund the amount
210-15 certified by the board. (V.A.C.S. Art. 717t, Sec. 7(d) (part).)
210-16 (Sections 1402.067-1402.080 reserved for expansion)
210-17 SUBCHAPTER E. BONDS AND BOND PROCEEDS
210-18 Sec. 1402.081. ISSUANCE OF BONDS; LIMITATION ON AMOUNT
210-19 OUTSTANDING. (a) The board by resolution may provide for the
210-20 issuance of revenue bonds for a purpose of this chapter.
210-21 (b) The amount of bonds outstanding at any time may not
210-22 exceed $750 million. Bonds that are or have been refunded do not
210-23 count against that limit. (V.A.C.S. Art. 717t, Secs. 8(a) (part),
210-24 (d) (part).)
210-25 Sec. 1402.082. AMOUNT AND DELIVERY DATE OF BOND PROCEEDS.
210-26 The board may specify a principal amount and a date of delivery of
210-27 proceeds of bonds issued under this chapter. (V.A.C.S. Art. 717t,
211-1 Sec. 8(a) (part).)
211-2 Sec. 1402.083. SOURCE OF BOND PAYMENTS. (a) A revenue bond
211-3 issued under this chapter is a special obligation of the state
211-4 payable only from amounts in or to be received for deposit to the
211-5 credit of the fund, the reserve fund, or an account created within
211-6 the fund or the reserve fund, as designated by the board in the
211-7 resolution authorizing the issuance of the bond, including:
211-8 (1) principal and interest paid and to be paid on a
211-9 security or another obligation held by the board;
211-10 (2) income from an account created in the fund or
211-11 reserve fund by the board; or
211-12 (3) money from any other source that may be available
211-13 to and designated by the board for that purpose.
211-14 (b) A bond issued under this chapter:
211-15 (1) is not debt of the state prohibited by the Texas
211-16 Constitution; and
211-17 (2) must contain on its face a statement to the effect
211-18 that:
211-19 (A) the state is obligated to pay the principal
211-20 of and the interest on the bond solely from money in or to be
211-21 received for deposit to the credit of the fund or the reserve fund;
211-22 and
211-23 (B) the full faith and credit and the taxing
211-24 power of the state are not pledged, given, or loaned to secure
211-25 those payments. (V.A.C.S. Art. 717t, Sec. 8(b).)
211-26 Sec. 1402.084. APPROVAL AND FORM OF BONDS. (a) A bond
211-27 issued under this chapter:
212-1 (1) must be approved in the same manner as other bonds
212-2 issued by the state; and
212-3 (2) may bear any designation directed by board
212-4 resolution.
212-5 (b) The comptroller shall issue bonds authorized and
212-6 approved by the board.
212-7 (c) A bond issued under this chapter may:
212-8 (1) be dated;
212-9 (2) mature not later than 50 years after its date of
212-10 issuance;
212-11 (3) be issued in permanent or temporary form;
212-12 (4) be sold at a public or private sale, whether
212-13 competitive or negotiated, and under terms determined to be the
212-14 most advantageous reasonably attainable; and
212-15 (5) be issued on a parity with and be secured in the
212-16 manner as other bonds issued or authorized to be issued by this
212-17 chapter or be issued not on a parity with and secured differently
212-18 from other bonds issued under this chapter. (V.A.C.S. Art. 717t,
212-19 Secs. 5(d) (part), 8(a) (part), (d) (part), (e) (part), (f)
212-20 (part).)
212-21 Sec. 1402.085. INVESTMENT OF BOND PROCEEDS. Proceeds from
212-22 the sale of bonds issued under this chapter may be invested in any
212-23 manner and in any obligation or security specified in the
212-24 resolution authorizing the bonds or in a supplemental board
212-25 resolution. (V.A.C.S. Art. 717t, Sec. 8(g).)
212-26 Sec. 1402.086. ADDITIONAL RIGHTS AND POWERS OF COMPTROLLER.
212-27 In connection with the issuance and administration of bonds under
213-1 this chapter, in addition to a power granted by this chapter, the
213-2 comptroller may exercise any right or power granted to:
213-3 (1) the housing finance division of the Texas
213-4 Department of Housing and Community Affairs by Chapter 2306; or
213-5 (2) an issuer by Chapter 1201, 1207, or 1371.
213-6 (V.A.C.S. Art. 717t, Sec. 8(h).)
213-7 Sec. 1402.087. GUARANTEE OF BONDS. (a) The permanent
213-8 school fund and the income from the permanent school fund may be
213-9 used to guarantee bonds issued under this chapter.
213-10 (b) The board may apply to the commissioner of education at
213-11 any time for a guarantee of all or part of a bond authorized under
213-12 this chapter in the same manner as a school district or in another
213-13 manner agreed to by the board and commissioner.
213-14 (c) If a payment is required to be made by the permanent
213-15 school fund as a result of the guarantee of bonds issued under this
213-16 chapter, an amount equal to that payment shall be paid immediately
213-17 by the state from the state treasury to the permanent school fund.
213-18 (d) As soon as practicable the board shall reimburse the
213-19 state treasury for any amount required to be paid to the permanent
213-20 school fund as a result of the guarantee by that fund of bonds
213-21 issued under this chapter.
213-22 (e) An amount owed by the state to the permanent school fund
213-23 under this section is a general obligation of the state until paid.
213-24 (V.A.C.S. Art. 717t, Sec. 9.)
213-25 (Sections 1402.088-1402.100 reserved for expansion)
213-26 SUBCHAPTER F. ELIGIBILITY FOR AID
213-27 Sec. 1402.101. CONDITIONS FOR ELIGIBILITY. (a) The board
214-1 shall adopt rules relating to qualification for aid under this
214-2 chapter. In adopting a rule or awarding aid, the board may
214-3 consider whether a school district:
214-4 (1) has been cited by the agency in its most recent
214-5 accreditation report as having inadequate facilities;
214-6 (2) has failed to meet a legally required
214-7 teacher-to-student ratio during its most recent accreditation
214-8 period;
214-9 (3) has experienced a rapid growth in the number of
214-10 students in average daily attendance or is projected to experience
214-11 that growth over the next five years;
214-12 (4) has over the preceding five years increased the
214-13 tax burden on property located in the district at a greater rate
214-14 than the state average or the average of surrounding districts;
214-15 (5) has a debt service tax rate greater than the state
214-16 average for school districts or greater than the average of
214-17 surrounding districts;
214-18 (6) has a property-wealth per student ratio inadequate
214-19 to meet the demands for adequate funds for a quality general
214-20 education program and for its bonded debt obligations;
214-21 (7) has the ability to repay any aid granted,
214-22 considering the district's tax base and outstanding debts; and
214-23 (8) meets any other condition that the board believes
214-24 should qualify a district for aid under this chapter.
214-25 (b) For purposes of Subsection (a)(2), a school district is
214-26 considered to have failed to meet a required teacher-to-student
214-27 ratio if the district has requested and obtained a waiver of that
215-1 requirement in its most recent accreditation period. (V.A.C.S.
215-2 Art. 717t, Sec. 10(a).)
215-3 Sec. 1402.102. PERIOD OF QUALIFICATION FOR AID. A school
215-4 district that qualifies for aid under this chapter at the time it
215-5 applies to the board:
215-6 (1) continues to qualify for aid until the application
215-7 is acted on; and
215-8 (2) may receive aid as awarded by the board but may
215-9 not receive additional aid for any academic year in which it does
215-10 not or would not qualify. (V.A.C.S. Art. 717t, Sec. 10(b).)
215-11 Sec. 1402.103. APPLICATION FOR AID. (a) A school district
215-12 shall submit its application for aid under this chapter in the time
215-13 period the board reasonably requires of all applicants.
215-14 (b) The board may require additional information from any
215-15 applicant.
215-16 (c) The agency shall:
215-17 (1) assist the board in evaluating applications for
215-18 aid under this chapter;
215-19 (2) review the financial condition of each district
215-20 applying for aid; and
215-21 (3) annually report to the board as to the capacity of
215-22 each district that has been granted aid to timely repay that aid.
215-23 (V.A.C.S. Art. 717t, Sec. 10(c).)
215-24 (Sections 1402.104-1402.120 reserved for expansion)
215-25 SUBCHAPTER G. AID TO SCHOOL DISTRICTS
215-26 Sec. 1402.121. FORM OF AID. (a) The board may provide aid
215-27 to a qualifying district by purchasing at the price determined by
216-1 the board:
216-2 (1) a bond of the district issued under Chapter 45,
216-3 Education Code, including bonds guaranteed by the permanent school
216-4 fund under Subchapter C of that chapter;
216-5 (2) a contractual obligation issued by the district
216-6 under Subchapter A, Chapter 271, Local Government Code; or
216-7 (3) a bond of the district issued to refund a current
216-8 outstanding obligation of the district if:
216-9 (A) the current outstanding obligation or the
216-10 portion of the obligation refunded was used in a manner that would
216-11 qualify for aid under this chapter; and
216-12 (B) application is made and approved in the
216-13 manner provided for other aid under this chapter.
216-14 (b) A qualifying district may borrow from the fund by
216-15 selling one or more of its bonds to the board. (V.A.C.S. Art. 717t,
216-16 Secs. 11(a), (b) (part).)
216-17 Sec. 1402.122. BOND PURCHASE PROCEDURE. (a) The board may:
216-18 (1) purchase all or part of an issue of a qualifying
216-19 district's bonds, including refunding bonds; and
216-20 (2) require by rule that bonds purchased by the board
216-21 contain specified terms and provisions.
216-22 (b) Any school district may request from the board an
216-23 advisory statement as to whether the board will consider purchasing
216-24 one or more of the school district's bonds. The request must
216-25 contain all information reasonably required by the board.
216-26 (c) Notwithstanding any provision of law to the contrary,
216-27 the board may acquire a bond issued by a qualifying district in a
217-1 public or private sale with or without competitive bidding as
217-2 provided by resolution or order of the governing body of the
217-3 district. The requirement of Section 45.001, Education Code, that
217-4 bonds of a school district be sold to the highest bidder does not
217-5 apply to a purchase by the board.
217-6 (d) The resolution or order may designate an officer or
217-7 employee of the district to act on behalf of the district to set
217-8 the price, interest rate, and date for the sale of the bonds.
217-9 (V.A.C.S. Art. 717t, Secs. 11(c), (d).)
217-10 Sec. 1402.123. AID FOR CAPITAL ASSETS AND MAINTENANCE. (a)
217-11 The board by rule may:
217-12 (1) establish formulas that provide for loans or other
217-13 aid for the acquisition, construction, renovation, major repair,
217-14 remodeling, retrofitting, and improvement of capital assets and for
217-15 cash management and short-term borrowing needs for maintenance
217-16 expenses; and
217-17 (2) provide for different classes of capital assets
217-18 and establish different criteria for awarding aid to each class.
217-19 (b) In determining whether to award aid to a school
217-20 district, the board shall consider the type of capital asset for
217-21 which aid is requested and the needs of the district. (V.A.C.S.
217-22 Art. 717t, Sec. 11(e).)
217-23 Sec. 1402.124. AID FOR INSTRUCTIONAL FACILITIES. (a) The
217-24 board by rule may:
217-25 (1) establish formulas that provide for loans or other
217-26 aid for the acquisition, construction, renovation, major repair,
217-27 remodeling, retrofitting, and improvement of instructional
218-1 facilities; and
218-2 (2) provide for different classes of facilities or
218-3 facility improvements and establish different criteria for awarding
218-4 aid to each class.
218-5 (b) In determining whether to award aid to a school
218-6 district, the board shall consider:
218-7 (1) the type of facility acquisition, construction,
218-8 renovation, major repair, remodeling, retrofitting, or improvement
218-9 requested;
218-10 (2) the proposed use of the facility or improvement;
218-11 and
218-12 (3) the needs of the district. (V.A.C.S. Art. 717t,
218-13 Sec. 11(f).)
218-14 Sec. 1402.125. CONDITION ON AID; SCHOOL DISTRICT FUNDS. The
218-15 board may condition aid to a qualifying district by requiring that
218-16 district to provide money for the related acquisition,
218-17 construction, renovation, major repair, remodeling, retrofitting,
218-18 or improvement in the amount set by the board. (V.A.C.S. Art. 717t,
218-19 Sec. 11(g).)
218-20 Sec. 1402.126. RESTRICTIONS ON USE OF AID. (a) The board
218-21 shall require each school district that receives aid to spend the
218-22 aid and any independent funds the board requires to be provided by
218-23 the district exclusively on the project for which the aid is
218-24 awarded.
218-25 (b) The board by rule may establish a procedure by which a
218-26 school district that receives aid may apply to the board for
218-27 permission to use the aid provided and any required independent
219-1 funds for a different purpose. The board may grant the permission
219-2 if it finds that the alternative use proposed would have qualified
219-3 for at least the same amount and type of aid.
219-4 (c) The agency shall assist the board in monitoring the use
219-5 of aid awarded under this chapter. (V.A.C.S. Art. 717t, Sec.
219-6 11(h).)
219-7 Sec. 1402.127. LIMIT ON AMOUNT OF AID. To ensure that all
219-8 qualifying districts may be considered for aid, the board by rule
219-9 may limit the amount of aid that any one qualifying district may
219-10 receive in a specified number of years. (V.A.C.S. Art. 717t, Sec.
219-11 11(i).)
219-12 Sec. 1402.128. QUALIFICATION STANDARDS FOR CAPITAL ASSETS
219-13 AND INSTRUCTIONAL FACILITIES. (a) The board shall adopt standards
219-14 for a qualifying capital asset or instructional facility. The
219-15 standards must be based on the reasonable cost and useful life of
219-16 the asset or facility.
219-17 (b) The board may adopt rules to determine the useful life
219-18 of a capital asset or instructional facility. (V.A.C.S. Art. 717t,
219-19 Sec. 13.)
219-20 (Sections 1402.129-1402.140 reserved for expansion)
219-21 SUBCHAPTER H. REPAYMENT BY SCHOOL DISTRICTS; SECURITY
219-22 Sec. 1402.141. REPAYMENT OF BONDS PURCHASED BY BOARD. A
219-23 school district shall make each payment of principal or interest on
219-24 an obligation purchased by the board directly to the comptroller
219-25 for deposit to the credit of the fund. (V.A.C.S. Art. 717t, Sec.
219-26 12(a).)
219-27 Sec. 1402.142. NOTICE BY COMPTROLLER OF FAILURE TO MAKE
220-1 TIMELY PAYMENT. (a) The comptroller shall:
220-2 (1) notify the board and the commissioner of education
220-3 if the comptroller is notified by a school district that the
220-4 district will not make a timely payment on a loan made to the
220-5 district under this chapter; and
220-6 (2) notify the board, the commissioner, and the school
220-7 district if a school district fails to make a timely payment of
220-8 principal or interest due on a loan made to the district under this
220-9 chapter.
220-10 (b) Notice to a school district under Subsection (a)(2) must
220-11 be in writing and sent by certified mail. (V.A.C.S. Art. 717t,
220-12 Sec. 12(b) (part).)
220-13 Sec. 1402.143. DEDUCTION FROM FOUNDATION SCHOOL FUND
220-14 PAYMENTS. (a) Except as provided by Section 1402.144, if a school
220-15 district fails to make a timely payment of principal and interest
220-16 due on a loan made to the district under this chapter, the agency
220-17 shall:
220-18 (1) deduct the total amount due the board or the fund,
220-19 including interest and any applicable late payment charge as of the
220-20 date of notification, from the foundation school fund payment next
220-21 due the district, including any allocation to the district under
220-22 Chapter 42, Education Code; and
220-23 (2) continue making the deductions from subsequent
220-24 foundation school fund payments until the total amount then due has
220-25 been deducted.
220-26 (b) The agency shall credit the full amount of a foundation
220-27 school fund entitlement to a school district before making the
221-1 deduction. The amount of the deduction shall then be paid to the
221-2 credit of the school facilities aid fund or to an account in that
221-3 fund as the board may direct, on behalf of the district.
221-4 (c) If the board determines that all or any part of a
221-5 deduction was deposited to the credit of the fund in error, the
221-6 board may authorize payment from the fund of that amount directly
221-7 to the district against which the deduction was made. (V.A.C.S.
221-8 Art. 717t, Sec. 12(b) (part).)
221-9 Sec. 1402.144. DELINQUENCY ON GUARANTEED BOND; TRANSFER FROM
221-10 PERMANENT SCHOOL FUND. If a school district is delinquent in
221-11 making a payment on a bond guaranteed by the permanent school fund
221-12 under Subchapter C, Chapter 45, Education Code, the amount of the
221-13 delinquency shall be transferred immediately from the appropriate
221-14 account in the permanent school fund to the school facilities aid
221-15 fund. (V.A.C.S. Art. 717t, Sec. 12(c).)
221-16 (Chapters 1403-1430 reserved for expansion)
221-17 SUBTITLE H. SPECIFIC AUTHORITY FOR MORE THAN ONE TYPE OF
221-18 LOCAL GOVERNMENT TO ISSUE SECURITIES
221-19 CHAPTER 1431. ANTICIPATION NOTES
221-20 Sec. 1431.001. DEFINITIONS
221-21 Sec. 1431.002. AUTHORITY TO ISSUE ANTICIPATION NOTES
221-22 Sec. 1431.003. ADDITIONAL AUTHORITY OF COUNTIES AND
221-23 CERTAIN MUNICIPALITIES
221-24 Sec. 1431.004. USES OF ANTICIPATION NOTE PROCEEDS
221-25 Sec. 1431.005. GENERAL LIMITATION
221-26 Sec. 1431.006. LIMITATION ON NOTES TO PAY EXPENSES
221-27 Sec. 1431.007. GENERAL SOURCES OF PAYMENT
222-1 Sec. 1431.008. AD VALOREM TAXES AS SOURCE OF PAYMENT
222-2 Sec. 1431.009. MATURITY
222-3 Sec. 1431.010. SALE OF NOTES
222-4 Sec. 1431.011. ATTORNEY GENERAL APPROVAL OF CERTAIN NOTES
222-5 Sec. 1431.012. RESTRICTION ON CERTAIN CONTRACTS PAYABLE
222-6 FROM PROCEEDS OF NOTES
222-7 Sec. 1431.013. CONFLICT WITH OTHER LAWS
222-8 CHAPTER 1431. ANTICIPATION NOTES
222-9 Sec. 1431.001. DEFINITIONS. In this chapter:
222-10 (1) "Anticipation note" means a note issued under this
222-11 chapter.
222-12 (2) "Governing body" means the commissioners court of
222-13 a county or the governing body of a municipality authorized to
222-14 issue anticipation notes on behalf of an issuer.
222-15 (3) "Issuer" means a county or municipality issuing
222-16 an anticipation note. (V.A.C.S. Art. 717w, Secs. 1(3), (6), (7).)
222-17 Sec. 1431.002. AUTHORITY TO ISSUE ANTICIPATION NOTES. (a)
222-18 The commissioners court of a county by order, on the recommendation
222-19 of the county auditor or the county budget officer, as applicable,
222-20 may authorize the issuance of an anticipation note.
222-21 (b) The governing body of a municipality by ordinance may
222-22 authorize the issuance of an anticipation note. (V.A.C.S.
222-23 Art. 717w, Secs. 3 (part), 5.)
222-24 Sec. 1431.003. ADDITIONAL AUTHORITY OF COUNTIES AND CERTAIN
222-25 MUNICIPALITIES. (a) This section applies only to an issuer that
222-26 is:
222-27 (1) a county; or
223-1 (2) a municipality with a population of 80,000 or
223-2 more.
223-3 (b) Notwithstanding anything in this chapter to the
223-4 contrary, the governing body may exercise the authority granted to
223-5 the governing body of an issuer with regard to issuance of
223-6 obligations under Chapter 1371, except that the prohibition in that
223-7 chapter on the repayment of an obligation with ad valorem taxes
223-8 does not apply to an issuer exercising the authority granted by
223-9 this section. (V.A.C.S. Art. 717w, Sec. 4.)
223-10 Sec. 1431.004. USES OF ANTICIPATION NOTE PROCEEDS. (a) An
223-11 issuer may use the proceeds of an anticipation note to pay:
223-12 (1) a contractual obligation incurred or to be
223-13 incurred for:
223-14 (A) the construction of a public work;
223-15 (B) the purchase of materials, supplies,
223-16 equipment, machinery, buildings, lands, and rights-of-way for the
223-17 issuer's authorized needs and purposes; or
223-18 (C) a professional service, including a service
223-19 by a tax appraisal engineer, engineer, architect, attorney,
223-20 mapmaker, auditor, financial advisor, or fiscal agent;
223-21 (2) operating or current expenses; or
223-22 (3) the issuer's cumulative cash flow deficit.
223-23 (b) For the purposes of this section, the cumulative cash
223-24 flow deficit is the amount by which the sum of an issuer's
223-25 anticipated expenditures and cash reserve reasonably required to
223-26 pay unanticipated expenditures exceeds the amount of the issuer's
223-27 cash, marketable securities, and money in an account that may be
224-1 used to pay an issuer's anticipated expenditures, other than:
224-2 (1) money in an account the use of which is subject to
224-3 legislative or judicial action or that is subject to a legislative,
224-4 judicial, or contractual requirement that the account be
224-5 reimbursed; or
224-6 (2) the proceeds of an anticipation note.
224-7 (c) For the purposes of Subsection (b), an amount equal to
224-8 one month's anticipated expenditures is presumed to be reasonably
224-9 required as a cash reserve. (V.A.C.S. Art. 717w, Secs. 1(1), (4),
224-10 (5), 3 (part).)
224-11 Sec. 1431.005. GENERAL LIMITATION. An issuer may not use
224-12 proceeds of an anticipation note to repay interfund or other
224-13 borrowing that occurred earlier than 24 months before the date of
224-14 the ordinance or order authorizing the issuance of the note.
224-15 (V.A.C.S. Art. 717w, Sec. 6(d).)
224-16 Sec. 1431.006. LIMITATION ON NOTES TO PAY EXPENSES.
224-17 Anticipation notes issued under Section 1431.004(a)(2) may not, in
224-18 the fiscal year in which the attorney general approves the notes:
224-19 (1) for a municipality, exceed 75 percent of the
224-20 revenue or taxes anticipated to be collected in that year; or
224-21 (2) for a county, exceed 50 percent of the revenue or
224-22 taxes anticipated to be collected in that year. (V.A.C.S.
224-23 Art. 717w, Sec. 6(g).)
224-24 Sec. 1431.007. GENERAL SOURCES OF PAYMENT. A governing body
224-25 may:
224-26 (1) provide that anticipation notes be paid from and
224-27 secured by revenue, taxes, or the proceeds of bonds to be issued by
225-1 the issuer; and
225-2 (2) pledge to the payment of anticipation notes
225-3 revenue, taxes, or the proceeds of bonds to be issued by the
225-4 issuer. (V.A.C.S. Art. 717w, Secs. 9(a), (b) (part).)
225-5 Sec. 1431.008. AD VALOREM TAXES AS SOURCE OF PAYMENT. (a)
225-6 A governing body may not issue anticipation notes that are payable
225-7 from bonds secured by an ad valorem tax unless the proposition
225-8 authorizing the issuance of the bonds:
225-9 (1) is approved by a majority of the votes cast in an
225-10 election held by the issuer; and
225-11 (2) states that anticipation notes may be issued.
225-12 (b) A governing body that pledges to the payment of
225-13 anticipation notes an ad valorem tax to be imposed in a subsequent
225-14 fiscal year shall impose the tax in the ordinance or order that
225-15 authorizes the issuance of the notes. (V.A.C.S. Art. 717w, Secs.
225-16 6(c), 9(b) (part).)
225-17 Sec. 1431.009. MATURITY. (a) An anticipation note issued
225-18 for a purpose described by Section 1431.004(a)(1) must mature
225-19 before the seventh anniversary of the date that the attorney
225-20 general approves the note.
225-21 (b) An anticipation note issued for a purpose described by
225-22 Section 1431.004(a)(2) or (3) must mature before the first
225-23 anniversary of the date that the attorney general approves the
225-24 note. (V.A.C.S. Art. 717w, Secs. 6(e), (f).)
225-25 Sec. 1431.010. SALE OF NOTES. A governing body may sell an
225-26 anticipation note at public or private sale for cash. (V.A.C.S.
225-27 Art. 717w, Sec. 8.)
226-1 Sec. 1431.011. ATTORNEY GENERAL APPROVAL OF CERTAIN NOTES.
226-2 Chapter 1371 governs approval by the attorney general of
226-3 anticipation notes issued under Section 1431.003. (V.A.C.S.
226-4 Art. 717w, Sec. 6(b).)
226-5 Sec. 1431.012. RESTRICTION ON CERTAIN CONTRACTS PAYABLE FROM
226-6 PROCEEDS OF NOTES. A county must comply with the competitive
226-7 bidding requirements of Subchapter C, Chapter 271, Local Government
226-8 Code, in connection with a contract to be paid from the proceeds of
226-9 anticipation notes issued for a purpose described by Section
226-10 1431.004(a)(1)(A). (V.A.C.S. Art. 717w, Sec. 6(h).)
226-11 Sec. 1431.013. CONFLICT WITH OTHER LAWS. If there is a
226-12 conflict between this chapter and another statute:
226-13 (1) an issuer may act under either; and
226-14 (2) the governing body is not required to specify the
226-15 law under which the action is taken. (V.A.C.S. Art. 717w, Sec.
226-16 2.)
226-17 CHAPTER 1432. BONDS FOR LOCAL GOVERNMENT SPORTS CENTERS
226-18 Sec. 1432.001. APPLICABILITY OF CHAPTER
226-19 Sec. 1432.002. DEFINITIONS
226-20 Sec. 1432.003. AUTHORITY FOR SPORTS CENTERS
226-21 Sec. 1432.004. AUTHORITY TO ISSUE REVENUE BONDS
226-22 Sec. 1432.005. PLEDGE OF REVENUE
226-23 Sec. 1432.006. ADDITIONAL SECURITY
226-24 Sec. 1432.007. BONDS NOT PAYABLE FROM TAXES
226-25 Sec. 1432.008. MATURITY
226-26 Sec. 1432.009. ADDITIONAL BONDS
226-27 Sec. 1432.010. SALE OF BONDS
227-1 Sec. 1432.011. REVIEW AND APPROVAL OF CONTRACTS RELATING
227-2 TO BONDS
227-3 Sec. 1432.012. CHARGES
227-4 Sec. 1432.013. REFUNDING BONDS
227-5 Sec. 1432.014. PUBLIC PURPOSE
227-6 Sec. 1432.015. CONFLICT WITH OTHER LAW
227-7 CHAPTER 1432. BONDS FOR LOCAL GOVERNMENT SPORTS CENTERS
227-8 Sec. 1432.001. APPLICABILITY OF CHAPTER. (a) This chapter
227-9 applies only to a local government that has all or most of its
227-10 territory located in a county with a population of more than
227-11 650,000.
227-12 (b) Two or more local governments may act jointly under this
227-13 chapter if:
227-14 (1) each local government is individually authorized
227-15 to act under this chapter;
227-16 (2) all or most of the territory of each local
227-17 government is located in the same county or in adjacent counties;
227-18 and
227-19 (3) the local governments act jointly to perform each
227-20 official act.
227-21 (c) Local governments acting jointly may perform any act
227-22 that a single local government may perform under this chapter.
227-23 (V.A.C.S. Art. 717o, Secs. 2, 3(b).)
227-24 Sec. 1432.002. DEFINITIONS. In this chapter:
227-25 (1) "Bond authorization" means an ordinance of the
227-26 governing body of a municipality, a resolution of the board of
227-27 trustees of an independent school district, or an order of the
228-1 commissioners court of a county that authorizes the issuance of
228-2 bonds.
228-3 (2) "Local government" means a county, a municipality,
228-4 or an independent school district. (V.A.C.S. Art. 717o, Secs.
228-5 1(1), (2), 5(a) (part), (b) (part), 7(a) (part).)
228-6 Sec. 1432.003. AUTHORITY FOR SPORTS CENTERS. (a) A local
228-7 government may construct, acquire, lease, improve, enlarge, and
228-8 operate one or more facilities used for sporting activities or
228-9 events, including auxiliary facilities such as parking areas or
228-10 restaurants.
228-11 (b) A local government may contract with any public or
228-12 private entity, including a coliseum advisory board or similar
228-13 body, to perform any function authorized under this chapter other
228-14 than an official governmental act that must be performed by the
228-15 governing body of a local government. (V.A.C.S. Art. 717o, Secs.
228-16 1(3), 3(a), (c).)
228-17 Sec. 1432.004. AUTHORITY TO ISSUE REVENUE BONDS. The
228-18 governing body of a local government may issue revenue bonds for a
228-19 purpose authorized by Section 1432.003. (V.A.C.S. Art. 717o, Sec.
228-20 4 (part).)
228-21 Sec. 1432.005. PLEDGE OF REVENUE. A local government may
228-22 pledge all or part of the revenue, income, or receipts from a
228-23 facility authorized by this chapter to the payment of bonds,
228-24 including principal, interest, and any other amounts required or
228-25 permitted in connection with the bonds. (V.A.C.S. Art. 717o, Secs.
228-26 4 (part), 7(a) (part).)
228-27 Sec. 1432.006. ADDITIONAL SECURITY. (a) Bonds issued under
229-1 this chapter may be additionally secured by:
229-2 (1) an encumbrance on any real property relating to a
229-3 facility authorized by this chapter owned or to be acquired by the
229-4 local government;
229-5 (2) an encumbrance on any personal property
229-6 appurtenant to that real property; or
229-7 (3) a pledge of any portion of any grant, donation,
229-8 revenue, or income received or to be received from the United
229-9 States or any other public or private source.
229-10 (b) The governing body of the local government may authorize
229-11 the execution of a trust indenture, mortgage, deed of trust, or
229-12 other instrument as evidence of the encumbrance. (V.A.C.S.
229-13 Art. 717o, Secs. 7(b), (c).)
229-14 Sec. 1432.007. BONDS NOT PAYABLE FROM TAXES. A holder of a
229-15 bond issued under this chapter is not entitled to demand payment of
229-16 the bond from money raised by taxation. (V.A.C.S. Art. 717o, Sec.
229-17 7(d).)
229-18 Sec. 1432.008. MATURITY. A bond issued under this chapter
229-19 must mature not later than 40 years after its date. (V.A.C.S.
229-20 Art. 717o, Sec. 5(a) (part).)
229-21 Sec. 1432.009. ADDITIONAL BONDS. The bond authorization may
229-22 provide for the subsequent issuance of additional parity bonds or
229-23 subordinate lien bonds under terms specified in the authorization.
229-24 (V.A.C.S. Art. 717o, Sec. 5(a) (part).)
229-25 Sec. 1432.010. SALE OF BONDS. A local government may sell
229-26 bonds issued under this chapter in the manner and under the terms
229-27 provided by the bond authorization. (V.A.C.S. Art. 717o, Sec. 5(b)
230-1 (part).)
230-2 Sec. 1432.011. REVIEW AND APPROVAL OF CONTRACTS RELATING TO
230-3 BONDS. (a) If bonds issued under this chapter state that they are
230-4 secured by a pledge of revenue or rents from a contract, including
230-5 a lease contract, a copy of the contract and the proceedings
230-6 related to it must be submitted to the attorney general.
230-7 (b) If the attorney general finds that the bonds have been
230-8 authorized and the contract has been made in accordance with law,
230-9 the attorney general shall approve the contract.
230-10 (c) After the bonds are approved and registered as provided
230-11 by Chapter 1202 and the contract is approved under Subsection (b),
230-12 the contract is incontestable in a court or other forum for any
230-13 reason and is a valid and binding obligation for all purposes in
230-14 accordance with its terms. (V.A.C.S. Art. 717o, Sec. 10 (part).)
230-15 Sec. 1432.012. CHARGES. (a) The governing body of a local
230-16 government may impose and collect charges for the use or
230-17 availability of a facility authorized by this chapter.
230-18 (b) A local government shall impose and collect pledged
230-19 charges in an amount that will be at least sufficient, with any
230-20 other pledged resources, to provide for the payment of:
230-21 (1) the principal of, interest on, and any other
230-22 amounts required in connection with the bonds; and
230-23 (2) to the extent required by the bond authorization:
230-24 (A) expenses incurred in connection with the
230-25 bonds; and
230-26 (B) operation, maintenance, and other expenses
230-27 incurred in connection with the facility. (V.A.C.S. Art. 717o,
231-1 Secs. 6, 7(a) (part).)
231-2 Sec. 1432.013. REFUNDING BONDS. (a) A local government may
231-3 refund or otherwise refinance bonds issued under this chapter by
231-4 issuing refunding bonds under any terms provided by a bond
231-5 authorization.
231-6 (b) All appropriate provisions of this chapter apply to the
231-7 refunding bonds. The refunding bonds shall be issued in the manner
231-8 provided by this chapter for other bonds.
231-9 (c) The refunding bonds may be sold and delivered in amounts
231-10 sufficient to pay the principal of and interest and any redemption
231-11 premium on the bonds to be refunded, at maturity or on any
231-12 redemption date.
231-13 (d) The refunding bonds may be issued to be exchanged for
231-14 the bonds to be refunded by them. In that case, the comptroller
231-15 shall register the refunding bonds and deliver them to the holder
231-16 of the bonds to be refunded as provided by the bond authorization.
231-17 The exchange may be made in one delivery or in installment
231-18 deliveries. (V.A.C.S. Art. 717o, Secs. 9(a), (b).)
231-19 Sec. 1432.014. PUBLIC PURPOSE. The acquisition,
231-20 construction, improvement, enlargement, equipment, operation, and
231-21 maintenance of a facility authorized by this chapter is a public
231-22 purpose and a proper function of a local government. (V.A.C.S.
231-23 Art. 717o, Sec. 8.)
231-24 Sec. 1432.015. CONFLICT WITH OTHER LAW. When bonds are
231-25 issued under this subchapter, to the extent of any conflict between
231-26 this chapter and another law, this chapter controls. (V.A.C.S.
231-27 Art. 717o, Sec. 12 (part).)
232-1 CHAPTER 1433. BONDS FOR DEVELOPMENT OF EMPLOYMENT, INDUSTRIAL,
232-2 AND HEALTH RESOURCES
232-3 SUBCHAPTER A. GENERAL PROVISIONS
232-4 Sec. 1433.001. SHORT TITLE
232-5 Sec. 1433.002. DEFINITIONS
232-6 Sec. 1433.003. APPLICABILITY OF CHAPTER TO MUNICIPALITIES
232-7 Sec. 1433.004. COST OF PROJECT
232-8 Sec. 1433.005. ULTIMATE LESSEE
232-9 Sec. 1433.006. CORRECTION OF INVALID PROCEDURES
232-10 Sec. 1433.007. RELOCATION OR ALTERATION EXPENSE
232-11 Sec. 1433.008. USE OF STATE MONEY
232-12 (Sections 1433.009-1433.020 reserved for expansion)
232-13 SUBCHAPTER B. POWERS OF ISSUER
232-14 Sec. 1433.021. ACQUISITION OF PROJECT; DISPOSITION
232-15 Sec. 1433.022. LIMITATIONS ON ACQUISITIONS
232-16 Sec. 1433.023. AUTHORITY TO ISSUE REVENUE BONDS
232-17 Sec. 1433.024. LEASE OF PROJECT
232-18 Sec. 1433.025. ADVERTISING FOR CERTAIN CONTRACTS; PERFORMANCE
232-19 AND PAYMENT BONDS
232-20 Sec. 1433.026. PROHIBITED OPERATIONS
232-21 (Sections 1433.027-1433.040 reserved for expansion)
232-22 SUBCHAPTER C. PROCEDURE FOR ISSUING BONDS
232-23 Sec. 1433.041. DEPARTMENT APPROVAL OF LEASE; APPEAL
232-24 Sec. 1433.042. REGULATION OF LEASES
232-25 Sec. 1433.043. ISSUER'S AUTHORITY
232-26 Sec. 1433.044. BOND RESOLUTION; CALLING ELECTION; PUBLICATION
232-27 OF RESOLUTION
233-1 Sec. 1433.045. PROTEST
233-2 Sec. 1433.046. ELECTION ORDER
233-3 Sec. 1433.047. NOTICE OF ELECTION
233-4 Sec. 1433.048. BALLOT PROPOSITION; ELECTION PROCEDURES
233-5 Sec. 1433.049. RESULTS OF ELECTION
233-6 (Sections 1433.050-1433.060 reserved for expansion)
233-7 SUBCHAPTER D. BONDS
233-8 Sec. 1433.061. ISSUANCE OF BONDS
233-9 Sec. 1433.062. MONEY USED TO PAY BONDS; PROHIBITION ON CERTAIN
233-10 OBLIGATIONS
233-11 Sec. 1433.063. BONDS NOT DEBT OF STATE OR ISSUER
233-12 Sec. 1433.064. MATURITY
233-13 Sec. 1433.065. SALE OF BONDS
233-14 Sec. 1433.066. INTERIM RECEIPTS; TEMPORARY BONDS
233-15 Sec. 1433.067. USE OF BOND PROCEEDS
233-16 Sec. 1433.068. REFUNDING BONDS
233-17 Sec. 1433.069. EXEMPTIONS FROM TAXATION AND SECURITIES ACT
233-18 (Sections 1433.070-1433.100 reserved for expansion)
233-19 SUBCHAPTER E. AGREEMENTS RELATING TO BONDS
233-20 Sec. 1433.101. SECURITY FOR BOND; TRUST AGREEMENT
233-21 Sec. 1433.102. DEFAULT IN LEASE AGREEMENT OR MORTGAGE;
233-22 ENFORCEMENT
233-23 Sec. 1433.103. PURCHASE OPTION
233-24 CHAPTER 1433. BONDS FOR DEVELOPMENT OF EMPLOYMENT, INDUSTRIAL,
233-25 AND HEALTH RESOURCES
233-26 SUBCHAPTER A. GENERAL PROVISIONS
233-27 Sec. 1433.001. SHORT TITLE. This chapter may be cited as
234-1 the Act for Development of Employment, Industrial, and Health
234-2 Resources. (V.A.C.S. Art. 5190.1, Sec. 1.)
234-3 Sec. 1433.002. DEFINITIONS. In this chapter:
234-4 (1) "Department" means the Texas Department of
234-5 Economic Development.
234-6 (2) "District" means a conservation and reclamation
234-7 district established under Section 59, Article XVI, or Section 52,
234-8 Article III, Texas Constitution.
234-9 (3) "Governing body" means the commissioners court of
234-10 a county or the governing body of a municipality or district.
234-11 (4) "Industrial project" means the land, buildings,
234-12 equipment, facilities, and improvements found by the governing body
234-13 to be required or suitable for the promotion of industrial
234-14 development and for use by manufacturing or industrial enterprise,
234-15 regardless of whether the land, buildings, equipment, facilities,
234-16 and improvements are in existence when or are to be acquired or
234-17 constructed after the finding is made.
234-18 (5) "Issuer" means a municipality, county, or
234-19 district.
234-20 (6) "Medical project" means the land, buildings,
234-21 equipment, facilities, and improvements found by the governing body
234-22 to be required for public health, research, and medical facilities
234-23 located in this state, regardless of whether the land, buildings,
234-24 equipment, facilities, and improvements are in existence when or
234-25 are to be acquired or constructed after the finding is made.
234-26 (V.A.C.S. Art. 5190.1, Secs. 2(b), (e), (f), (g), (i), (j).)
234-27 Sec. 1433.003. APPLICABILITY OF CHAPTER TO MUNICIPALITIES.
235-1 This chapter applies to a municipality only if the municipality:
235-2 (1) has the power to impose an ad valorem tax of not
235-3 less than $1.50 on each $100 valuation of taxable property in the
235-4 municipality; or
235-5 (2) is a home-rule municipality. (V.A.C.S.
235-6 Art. 5190.1, Sec. 2(a).)
235-7 Sec. 1433.004. COST OF PROJECT. For purposes of this
235-8 chapter, the cost of an industrial project or medical project is:
235-9 (1) the cost of acquisitions for the project,
235-10 including the cost of the acquisition of all land, rights-of-way,
235-11 property rights, easements, and interests acquired for the
235-12 construction;
235-13 (2) the cost of all machinery and equipment;
235-14 (3) financing charges;
235-15 (4) interest accruing before and during construction
235-16 and until the first anniversary of the date on which the
235-17 construction is completed;
235-18 (5) the cost of estimates, including estimates of
235-19 revenue, engineering and legal services, plans, specifications,
235-20 surveys, and other expenses necessary or incident to determining
235-21 the feasibility and practicability of constructing the project;
235-22 (6) administrative expenses; and
235-23 (7) other expenses that are necessary or incident to
235-24 the acquisition of the project, the financing of the acquisition,
235-25 and the placing of the project in operation. (V.A.C.S.
235-26 Art. 5190.1, Sec. 2(c).)
235-27 Sec. 1433.005. ULTIMATE LESSEE. For purposes of this
236-1 chapter, an ultimate lessee is the person, firm, corporation, or
236-2 company that leases an industrial project or medical project from
236-3 the lessee of the project. (V.A.C.S. Art. 5190.1, Sec. 2(k).)
236-4 Sec. 1433.006. CORRECTION OF INVALID PROCEDURES. If a court
236-5 holds that any procedure under this chapter violates the
236-6 constitution of this state or the United States, the issuer by
236-7 resolution may provide an alternative procedure that conforms with
236-8 the constitution. (V.A.C.S. Art. 5190.1, Sec. 19 (part).)
236-9 Sec. 1433.007. RELOCATION OR ALTERATION EXPENSE. If a
236-10 municipality, county, district, or other political subdivision, in
236-11 the exercise of a power under this chapter, including the power of
236-12 relocation, makes necessary the relocation or rerouting of, or
236-13 alteration of the construction of, a highway, railroad, electric
236-14 transmission line, telegraph or telephone property or facility, or
236-15 pipeline, the relocation or rerouting or alteration of construction
236-16 must be accomplished at the sole expense of the political
236-17 subdivision. In this section, "sole expense" means the actual cost
236-18 of the relocation or rerouting or alteration of construction to
236-19 provide comparable replacement without enhancement of the facility,
236-20 after deduction of the net salvage value derived from the old
236-21 facility. (V.A.C.S. Art. 5190.1, Sec. 16.)
236-22 Sec. 1433.008. USE OF STATE MONEY. (a) The legislature may
236-23 not appropriate money to pay all or a part of the obligation of an
236-24 issuer under this chapter.
236-25 (b) The department shall pay any expense it incurs under
236-26 this chapter from money appropriated to the department. (V.A.C.S.
236-27 Art. 5190.1, Sec. 18 (part).)
237-1 (Sections 1433.009-1433.020 reserved for expansion)
237-2 SUBCHAPTER B. POWERS OF ISSUER
237-3 Sec. 1433.021. ACQUISITION OF PROJECT; DISPOSITION. (a) An
237-4 issuer may acquire, by construction, purchase, devise, gift, or
237-5 lease or by more than one of those methods, an industrial project
237-6 or medical project that is located in this state and at least a
237-7 part of which is located within the issuer's territorial limits.
237-8 (b) For an issuer that is a municipality, an industrial
237-9 project or medical project may be located outside the
237-10 municipality's territorial limits if the project is within the
237-11 municipality's extraterritorial jurisdiction as determined under
237-12 Subchapter B, Chapter 42, Local Government Code.
237-13 (c) An issuer may sell and convey all or any part of
237-14 property acquired under this section and make an order relating to
237-15 the sale or conveyance that the issuer considers conducive to the
237-16 best interest of the issuer. (V.A.C.S. Art. 5190.1, Sec. 4(a)
237-17 (part).)
237-18 Sec. 1433.022. LIMITATIONS ON ACQUISITIONS. (a) An issuer
237-19 may not acquire an industrial project, or any part of an industrial
237-20 project, by eminent domain.
237-21 (b) Land previously acquired by an issuer by eminent domain
237-22 may be sold, leased, or otherwise used in accordance with this
237-23 chapter, if the governing body determines that:
237-24 (1) the use will not interfere with the purpose for
237-25 which that land was originally acquired or that the land is no
237-26 longer needed for that purpose;
237-27 (2) at least seven years have elapsed since the land
238-1 was acquired by eminent domain; and
238-2 (3) the land was not acquired for park purposes unless
238-3 the sale or lease of that land has been approved at an election
238-4 held under Section 1502.057.
238-5 (c) An issuer may not acquire or construct an industrial
238-6 project or medical project for an individual, firm, partnership, or
238-7 corporation, or make or authorize a lease to an individual, firm,
238-8 partnership, or corporation if the effect of the lease of that
238-9 project is to remove the lessee's business from existing facilities
238-10 in this state.
238-11 (d) An issuer may not issue bonds to acquire existing
238-12 facilities for the purpose of leasing those facilities to the
238-13 industrial concern from which the facilities are acquired or to
238-14 another person controlled by the industrial concern. (V.A.C.S.
238-15 Art. 5190.1, Secs. 4(a) (part), 11, 13 (part).)
238-16 Sec. 1433.023. AUTHORITY TO ISSUE REVENUE BONDS. (a)
238-17 Except as provided by Subsection (b), an issuer may issue revenue
238-18 bonds to pay all or a part of the cost of acquiring, constructing,
238-19 enlarging, or improving an industrial project, including a project
238-20 in an enterprise zone designated under Chapter 2303, or a medical
238-21 project.
238-22 (b) A district may not authorize revenue bonds for a medical
238-23 project.
238-24 (c) An issuer may secure the payment of the bonds as
238-25 provided by this chapter. (V.A.C.S. Art. 5190.1, Secs. 4(a)
238-26 (part), 7 (part).)
238-27 Sec. 1433.024. LEASE OF PROJECT. (a) An issuer may, in
239-1 accordance with this chapter, lease any or all of the issuer's
239-2 industrial projects and medical projects.
239-3 (b) An issuer may lease property under this chapter only to
239-4 a corporation organized under the Texas Non-Profit Corporation Act
239-5 (Article 1396-1.01 et seq., Vernon's Texas Civil Statutes).
239-6 (V.A.C.S. Art. 5190.1, Secs. 2(h), 4(a) (part).)
239-7 Sec. 1433.025. ADVERTISING FOR CERTAIN CONTRACTS;
239-8 PERFORMANCE AND PAYMENT BONDS. (a) A contract for construction or
239-9 purchase under this chapter involving the expenditure of more than
239-10 $2,000 may be made only after advertising in the manner provided by
239-11 Chapter 252, Local Government Code, or Subchapter C, Chapter 262,
239-12 Local Government Code, as applicable.
239-13 (b) The provisions of Chapter 2253 relating to performance
239-14 and payment bonds apply to construction contracts let by the
239-15 issuer. (V.A.C.S. Art. 5190.1, Sec. 13 (part).)
239-16 Sec. 1433.026. PROHIBITED OPERATIONS. An issuer may not
239-17 operate an industrial project as a business or in any manner other
239-18 than as the lessor of the project. (V.A.C.S. Art. 5190.1, Sec.
239-19 4(a) (part).)
239-20 (Sections 1433.027-1433.040 reserved for expansion)
239-21 SUBCHAPTER C. PROCEDURE FOR ISSUING BONDS
239-22 Sec. 1433.041. DEPARTMENT APPROVAL OF LEASE; APPEAL. (a)
239-23 An issuer may not begin proceedings to authorize bonds under
239-24 Section 1433.044 or 1433.061 until the department has given
239-25 tentative approval to the suggested contents of the lease
239-26 agreement, and if a lessee is allowed to sublease, the department
239-27 has tentatively approved the financial responsibility of the
240-1 ultimate lessee. The department shall investigate a proposed
240-2 acquisition of existing facilities for compliance with Section
240-3 1433.022(d) before tentatively approving an industrial project or
240-4 medical project.
240-5 (b) The department may not give final approval to any
240-6 agreement unless the department affirmatively finds that the lessee
240-7 and ultimate lessee have the business experience, financial
240-8 resources, and responsibility to provide reasonable assurance that
240-9 all bonds and interest on the bonds to be paid from or because of
240-10 that agreement will be paid as they become due.
240-11 (c) The attorney general may not approve bonds to be issued
240-12 under this chapter until the department has given final approval to
240-13 the lease agreement and may not approve the bonds if the provisions
240-14 for security and payment of lease payments do not conform with this
240-15 chapter.
240-16 (d) An issuer may appeal any adverse ruling or decision of
240-17 the department under this section to a district court in Travis
240-18 County. The substantial evidence rule applies to an appeal under
240-19 this subsection. (V.A.C.S. Art. 5190.1, Secs. 5 (part), 12 (part),
240-20 13 (part).)
240-21 Sec. 1433.042. REGULATION OF LEASES. The department by rule
240-22 shall adopt minimum standards for lease agreements and guidelines
240-23 relating to financial responsibilities of the lessee and any
240-24 ultimate lessee. (V.A.C.S. Art. 5190.1, Sec. 5 (part).)
240-25 Sec. 1433.043. ISSUER'S AUTHORITY. (a) An issuer may issue
240-26 bonds under this chapter without obtaining the consent of any
240-27 department, division, commission, board, bureau, or agency of the
241-1 state, other than the attorney general under Chapter 1202 or the
241-2 department, and without any proceedings or satisfying any condition
241-3 precedent other than the proceedings and conditions required by:
241-4 (1) this chapter;
241-5 (2) Subchapter B or D, Chapter 1201; or
241-6 (3) Chapter 1204.
241-7 (b) Except as provided by this chapter or by department
241-8 rule, each governing body has complete authority with respect to
241-9 bonds and lease agreements governed by this chapter. (V.A.C.S.
241-10 Art. 5190.1, Secs. 7 (part), 12 (part).)
241-11 Sec. 1433.044. BOND RESOLUTION; CALLING ELECTION;
241-12 PUBLICATION OF RESOLUTION. (a) Before issuing bonds under this
241-13 chapter, a governing body shall adopt a resolution declaring its
241-14 intention to issue the bonds.
241-15 (b) The resolution must specify:
241-16 (1) the amount of bonds proposed to be issued;
241-17 (2) the purpose for which the bonds are to be issued;
241-18 and
241-19 (3) the date on which the governing body proposes to
241-20 authorize the issuance of the bonds.
241-21 (c) The governing body may call an election on the issuance
241-22 of the bonds.
241-23 (d) If an election is not called under Subsection (c), the
241-24 governing body shall publish the resolution once a week for at
241-25 least two consecutive weeks in at least one newspaper of general
241-26 circulation in the territorial limits of the issuer. The first
241-27 publication must be not later than the 15th day preceding the date
242-1 specified in the resolution for the authorization of the bonds.
242-2 (V.A.C.S. Art. 5190.1, Sec. 6(a) (part).)
242-3 Sec. 1433.045. PROTEST. (a) If at least 10 percent of the
242-4 registered voters of the issuer file a written protest against the
242-5 issuance of the bonds on or before the date specified for the
242-6 authorization of the bonds, the governing body shall hold an
242-7 election on the issuance of the bonds.
242-8 (b) If a written protest is not filed, the bonds may be
242-9 issued without an election at any time before the second
242-10 anniversary of the date specified in the resolution. (V.A.C.S.
242-11 Art. 5190.1, Sec. 6(a) (part).)
242-12 Sec. 1433.046. ELECTION ORDER. In addition to the
242-13 requirements provided by Chapter 3, Election Code, an order calling
242-14 an election under this subchapter must include the location of each
242-15 polling place and the election judges and clerks appointed for each
242-16 polling place. (V.A.C.S. Art. 5190.1, Sec. 6(b) (part).)
242-17 Sec. 1433.047. NOTICE OF ELECTION. Notice of an election
242-18 under this subchapter shall be published once a week for at least
242-19 two consecutive weeks, in at least one newspaper of general
242-20 circulation within the territorial limits of the issuer. The first
242-21 publication must be not later than the 15th day before the date of
242-22 the election. (V.A.C.S. Art. 5190.1, Sec. 6(b) (part).)
242-23 Sec. 1433.048. BALLOT PROPOSITION; ELECTION PROCEDURES. (a)
242-24 The ballot for an election held under this subchapter shall be
242-25 printed to permit voting for or against the proposition: "The
242-26 issuance of revenue bonds for the (medical project or industrial
242-27 project)."
243-1 (b) The election shall be conducted in accordance with the
243-2 general laws of this state relating to general elections, except as
243-3 modified by this chapter. (V.A.C.S. Art. 5190.1, Sec. 6(b)
243-4 (part).)
243-5 Sec. 1433.049. RESULTS OF ELECTION. (a) Not later than the
243-6 10th day after the date on which an election is held, or as soon
243-7 after that day as possible, the governing body of the issuer shall
243-8 convene and canvass the returns of the election.
243-9 (b) If a majority of the voters voting in a bond election
243-10 vote in favor of the proposition, the governing body shall find and
243-11 declare that the results favor the proposition, and subject to
243-12 Section 1433.041, the governing body may proceed with the
243-13 authorization of the bonds. (V.A.C.S. Art. 5190.1, Sec. 6(b)
243-14 (part).)
243-15 (Sections 1433.050-1433.060 reserved for expansion)
243-16 SUBCHAPTER D. BONDS
243-17 Sec. 1433.061. ISSUANCE OF BONDS. (a) A series of bonds
243-18 may be issued for each industrial project or medical project. Any
243-19 projects may be combined in a single series of bonds if the
243-20 governing body considers the combination to be in the best interest
243-21 of the issuer, but each project shall be considered separately with
243-22 respect to this subsection and Subchapter C.
243-23 (b) Bonds must be issued and delivered before the third
243-24 anniversary of the later of the date of the tentative approval of
243-25 the department or the date of the final judgment of any litigation
243-26 affecting the validity of the bonds or the provision made for their
243-27 payment. This subsection does not prohibit the department from
244-1 conditioning its approval of an industrial project or medical
244-2 project on the completion of the financing of the project within a
244-3 shorter period. (V.A.C.S. Art. 5190.1, Secs. 6(c), (d).)
244-4 Sec. 1433.062. MONEY USED TO PAY BONDS; PROHIBITION ON
244-5 CERTAIN OBLIGATIONS. (a) The principal of and the interest on
244-6 bonds authorized under this chapter are payable only from the money
244-7 provided for that payment and from the revenue of the industrial
244-8 project or medical project for which the bonds were authorized.
244-9 (b) An issuer may not incur financial obligations that
244-10 cannot be paid from revenue from the lease of an industrial project
244-11 or medical project. (V.A.C.S. Art. 5190.1, Secs. 3 (part), 7
244-12 (part).)
244-13 Sec. 1433.063. BONDS NOT DEBT OF STATE OR ISSUER. (a) A
244-14 bond issued under this chapter is not a debt or a pledge of the
244-15 faith and credit of this state, the issuer, or any other political
244-16 subdivision or agency of this state.
244-17 (b) A bond issued under this chapter must contain on its
244-18 face a statement that:
244-19 (1) this state, the issuer, or any other political
244-20 subdivision or agency of this state is not obligated to pay the
244-21 principal of or the interest on the bond except from revenue of the
244-22 industrial project or medical project for which the bond is issued;
244-23 and
244-24 (2) the faith and credit and the taxing power of this
244-25 state, the issuer, or any other political subdivision or agency of
244-26 this state are not pledged to the payment of the principal of or
244-27 the interest on the bond.
245-1 (c) Each bond issued under this chapter must contain
245-2 substantially the following language: "No pecuniary obligation is
245-3 or may be imposed on the issuer of this bond in the event of a
245-4 failure to pay all or part of the principal or interest on the
245-5 bond, except that the issuer is obligated to apply rental income it
245-6 receives from the (industrial project or medical project) to those
245-7 purposes." (V.A.C.S. Art. 5190.1, Secs. 3 (part), 10 (part).)
245-8 Sec. 1433.064. MATURITY. A bond issued under this chapter
245-9 must mature not later than 40 years after its date. (V.A.C.S.
245-10 Art. 5190.1, Sec. 7 (part).)
245-11 Sec. 1433.065. SALE OF BONDS. Bonds issued under this
245-12 chapter shall be sold to the highest bidder for cash and may not be
245-13 exchanged for property. (V.A.C.S. Art. 5190.1, Sec. 7 (part).)
245-14 Sec. 1433.066. INTERIM RECEIPTS; TEMPORARY BONDS. Before
245-15 the preparation of definitive bonds, an issuer may, under the
245-16 restrictions applicable to the definitive bonds, issue interim
245-17 receipts or temporary bonds, with or without coupons, exchangeable
245-18 for definitive bonds when the definitive bonds are executed and
245-19 available for delivery. (V.A.C.S. Art. 5190.1, Sec. 7 (part).)
245-20 Sec. 1433.067. USE OF BOND PROCEEDS. The proceeds of the
245-21 bonds of each issue may be used only for the payment of the cost of
245-22 the industrial project or medical project for which the bonds were
245-23 issued, and shall be disbursed in the manner and under any
245-24 restrictions provided in the resolution authorizing the issuance of
245-25 the bonds or in the trust agreement securing the bonds. Any
245-26 proceeds of the bonds of an issue that exceed the cost of the
245-27 project for which the bonds were issued shall be deposited to the
246-1 credit of the sinking fund for those bonds. (V.A.C.S. Art. 5190.1,
246-2 Sec. 7 (part).)
246-3 Sec. 1433.068. REFUNDING BONDS. (a) An issuer by
246-4 resolution may provide for the issuance of revenue refunding bonds
246-5 to:
246-6 (1) refund any outstanding bonds issued under this
246-7 chapter; and
246-8 (2) construct improvements, extensions, or
246-9 enlargements to the industrial project or medical project in
246-10 connection with which the bonds being refunded were issued.
246-11 (b) An issuer may issue revenue refunding bonds in exchange
246-12 for outstanding bonds, notwithstanding Section 1433.065, or the
246-13 issuer may use the proceeds from the sale of the revenue refunding
246-14 bonds to redeem outstanding bonds. (V.A.C.S. Art. 5190.1, Sec. 8
246-15 (part).)
246-16 Sec. 1433.069. EXEMPTIONS FROM TAXATION AND SECURITIES ACT.
246-17 (a) A bond issued under this chapter and the issuance and transfer
246-18 of the bond, including any profit made in the sale of the bond, are
246-19 exempt from taxation by this state or by a political subdivision of
246-20 this state.
246-21 (b) A bond issued under this chapter and any coupon
246-22 representing interest on the bond are exempt securities under The
246-23 Securities Act (Article 581-1 et seq., Vernon's Texas Civil
246-24 Statutes).
246-25 (c) A lease agreement under this chapter is not a security
246-26 under The Securities Act (Article 581-1 et seq., Vernon's Texas
246-27 Civil Statutes). (V.A.C.S. Art. 5190.1, Sec. 14 (part).)
247-1 (Sections 1433.070-1433.100 reserved for expansion)
247-2 SUBCHAPTER E. AGREEMENTS RELATING TO BONDS
247-3 Sec. 1433.101. SECURITY FOR BOND; TRUST AGREEMENT. (a) A
247-4 bond issued under this chapter may be secured by a trust agreement
247-5 between the issuer and a trust company or a bank having the powers
247-6 of a trust company in this state.
247-7 (b) A trust agreement may:
247-8 (1) assign the lease revenue to be received from the
247-9 lessee or the ultimate lessee of the industrial project or medical
247-10 project for which the bond proceeds are used; or
247-11 (2) pledge the lease revenue for the payment of
247-12 principal of and interest on the bond as they become due and
247-13 payable and may provide for the creation and maintenance of
247-14 reserves for that purpose.
247-15 (c) A trust agreement or a resolution providing for the
247-16 issuance of the bonds may contain provisions for protecting and
247-17 enforcing the rights and remedies of the bondholders, including
247-18 covenants that state the duties of the issuer or lessee relating
247-19 to:
247-20 (1) the acquisition of property for the industrial
247-21 project or medical project in connection with which the bonds were
247-22 authorized;
247-23 (2) the construction, improvement, maintenance,
247-24 repair, operation, and insurance of the project; and
247-25 (3) the custody, protection, and application of all
247-26 money related to the project.
247-27 (d) An issuer may require a bank or trust company
248-1 incorporated under the laws of this state that acts as depository
248-2 of the proceeds of the bonds or of revenue of the issuer to furnish
248-3 indemnifying bonds or to pledge securities.
248-4 (e) A trust agreement may state the rights and remedies of
248-5 the bondholders and of the trustee, and may restrict the individual
248-6 right of action by bondholders as is customary in trust agreements
248-7 or trust indentures securing bonds and debentures of corporations.
248-8 A trust agreement may contain additional provisions for the
248-9 security of the bondholders.
248-10 (f) All expenses incurred in carrying out a trust agreement
248-11 may be treated as a part of the cost of the operation of the
248-12 industrial project or medical project. (V.A.C.S. Art. 5190.1, Sec.
248-13 9.)
248-14 Sec. 1433.102. DEFAULT IN LEASE AGREEMENT OR MORTGAGE;
248-15 ENFORCEMENT. (a) An agreement relating to an industrial project
248-16 or medical project between the issuer and the lessee or between a
248-17 lessee and ultimate lessee must be for the benefit of the issuer.
248-18 The agreement must provide that, in the event of a default in the
248-19 payment of the principal of or the interest on the bonds or in the
248-20 performance of any agreement contained in a proceeding, mortgage,
248-21 or instrument, the payment or performance may be enforced by
248-22 mandamus or by the appointment of a receiver with the power to
248-23 charge rents and to apply the revenue from the project in
248-24 accordance with the resolution, mortgage, or instrument.
248-25 (b) A mortgage to secure bonds issued under this chapter may
248-26 also provide that, in the event of a default in the payment of the
248-27 mortgage or a violation of an agreement contained in the mortgage,
249-1 the mortgage may be foreclosed and the property securing the bonds
249-2 may be sold in any manner permitted by law. The mortgage may
249-3 provide that a trustee under the mortgage or the holder of any of
249-4 the bonds secured by the mortgage may purchase the property at a
249-5 foreclosure sale if the person is the highest bidder. (V.A.C.S.
249-6 Art. 5190.1, Sec. 10 (part).)
249-7 Sec. 1433.103. PURCHASE OPTION. (a) An issuer may grant a
249-8 lessee or ultimate lessee an option to purchase all or a part of an
249-9 industrial project or medical project when all bonds of the issuer
249-10 delivered to provide those facilities have been paid or provision
249-11 has been made for their final payment, if, while the bonds or
249-12 interest on the bonds remains unpaid, the lease rentals are paid in
249-13 the manner required and when the rentals become due.
249-14 (b) For purposes of this section, a payment is considered to
249-15 be paid in the manner required and when it becomes due if no event
249-16 of default is declared and the payment is made not later than the
249-17 15th day after the date it is scheduled to become due.
249-18 (c) This section is the exclusive authority to convey or
249-19 grant an option to purchase an industrial project or medical
249-20 project. (V.A.C.S. Art. 5190.1, Sec. 10 (part).)
249-21 CHAPTER 1434. COUNTY AND MUNICIPAL HIGHER EDUCATION
249-22 IMPROVEMENT BONDS
249-23 SUBCHAPTER A. GENERAL PROVISIONS
249-24 Sec. 1434.001. APPLICABILITY OF CHAPTER
249-25 Sec. 1434.002. DEFINITIONS
249-26 Sec. 1434.003. LEGISLATIVE FINDING
249-27 (Sections 1434.004-1434.050 reserved for expansion)
250-1 SUBCHAPTER B. ISSUANCE OF BONDS
250-2 Sec. 1434.051. FINANCING OF PERMANENT IMPROVEMENTS BY
250-3 COUNTY OR MUNICIPALITY
250-4 Sec. 1434.052. JOINT FINANCING BY COUNTY AND MUNICIPALITY
250-5 Sec. 1434.053. LIMIT ON TAXES
250-6 Sec. 1434.054. PROJECT APPROVAL BY TEXAS HIGHER EDUCATION
250-7 COORDINATING BOARD
250-8 (Sections 1434.055-1434.100 reserved for expansion)
250-9 SUBCHAPTER C. DONATION OR USE OF PERMANENT IMPROVEMENTS
250-10 Sec. 1434.101. DONATION OF PERMANENT IMPROVEMENTS
250-11 Sec. 1434.102. USE OF PERMANENT IMPROVEMENTS
250-12 CHAPTER 1434. COUNTY AND MUNICIPAL HIGHER EDUCATION
250-13 IMPROVEMENT BONDS
250-14 SUBCHAPTER A. GENERAL PROVISIONS
250-15 Sec. 1434.001. APPLICABILITY OF CHAPTER. This chapter
250-16 applies only to:
250-17 (1) a home-rule municipality with a population of
250-18 25,000 or more that has a general academic teaching institution
250-19 located within its boundaries; or
250-20 (2) a county within which a municipality described by
250-21 Subdivision (1) is located. (V.A.C.S. Art. 1182n, Secs. 1(3),
250-22 (4).)
250-23 Sec. 1434.002. DEFINITIONS. In this chapter:
250-24 (1) "Institution of higher education" means:
250-25 (A) an institution of higher education as
250-26 defined by Section 61.003, Education Code; or
250-27 (B) a private, nonprofit institution of higher
251-1 education that is accredited by the recognized accrediting agency
251-2 and is located and authorized to operate in this state, other than
251-3 a private institution of higher education operated exclusively for
251-4 sectarian purposes.
251-5 (2) "Public security" has the meaning assigned by
251-6 Section 1201.002.
251-7 (3) "Recognized accrediting agency" has the meaning
251-8 assigned by Section 61.003, Education Code. (V.A.C.S. Art. 1182n,
251-9 Secs. 1(2), (5).)
251-10 Sec. 1434.003. LEGISLATIVE FINDING. The legislature finds
251-11 that the assistance provided by counties and municipalities in
251-12 promoting and providing higher education opportunities for
251-13 residents of this state will encourage the development and
251-14 diversification of the economy of this state and the elimination of
251-15 unemployment and underemployment in this state. (V.A.C.S.
251-16 Art. 1182n, Sec. 2 (part).)
251-17 (Sections 1434.004-1434.050 reserved for expansion)
251-18 SUBCHAPTER B. ISSUANCE OF BONDS
251-19 Sec. 1434.051. FINANCING OF PERMANENT IMPROVEMENTS BY COUNTY
251-20 OR MUNICIPALITY. (a) A county or a municipality may:
251-21 (1) issue public securities, including certificates of
251-22 obligation, to acquire, construct, or improve land, buildings, or
251-23 other permanent improvements for use by an institution of higher
251-24 education located within a county to which this chapter applies;
251-25 and
251-26 (2) impose ad valorem taxes to pay the principal of
251-27 and interest on those securities and to provide a sinking fund.
252-1 (b) The county or municipality shall:
252-2 (1) issue any public securities and impose the taxes
252-3 in accordance with the applicable provisions of Subtitles A, C, D,
252-4 and E; and
252-5 (2) if the securities are certificates of obligation,
252-6 issue any certificates and impose the taxes in accordance with
252-7 Subchapter C, Chapter 271, Local Government Code. (V.A.C.S.
252-8 Art. 1182n, Secs. 3(a), (b).)
252-9 Sec. 1434.052. JOINT FINANCING BY COUNTY AND MUNICIPALITY.
252-10 (a) A county and a municipality may jointly issue public
252-11 securities and impose ad valorem taxes for a purpose described by
252-12 Section 1434.051.
252-13 (b) The commissioners court of the county and the governing
252-14 body of the municipality shall determine the appropriate
252-15 proportion of the ad valorem taxes to be imposed by the county and
252-16 by the municipality.
252-17 (c) A public security proposition that is submitted must
252-18 distinctly specify the proportion of ad valorem taxes to be imposed
252-19 by the county and by the municipality.
252-20 (d) The county and municipality shall issue the public
252-21 securities and impose the taxes in accordance with the applicable
252-22 provisions of Subtitles A, C, D, and E. (V.A.C.S. Art. 1182n,
252-23 Secs. 4(a), (b), (c), (d).)
252-24 Sec. 1434.053. LIMIT ON TAXES. The only limits on the
252-25 amount of taxes that may be imposed to pay the principal of and
252-26 interest on public securities, including certificates of
252-27 obligation, issued under this chapter are those provided by the
253-1 Texas Constitution. (V.A.C.S. Art. 1182n, Secs. 3(c), 4(e).)
253-2 Sec. 1434.054. PROJECT APPROVAL BY TEXAS HIGHER EDUCATION
253-3 COORDINATING BOARD. (a) Before public securities are issued under
253-4 this chapter, the Texas Higher Education Coordinating Board or its
253-5 successor agency must review the project to be acquired,
253-6 constructed, or improved. The board or its successor agency shall
253-7 conduct hearings to review the project in accordance with Chapter
253-8 61, Education Code.
253-9 (b) Public securities may not be issued under this chapter
253-10 unless the board or its successor agency approves the acquisition,
253-11 construction, or improvement of the project to be financed through
253-12 the issuance of the public securities. (V.A.C.S. Art. 1182n,
253-13 Secs. 1(1), 5.)
253-14 (Sections 1434.055-1434.100 reserved for expansion)
253-15 SUBCHAPTER C. DONATION OR USE OF PERMANENT IMPROVEMENTS
253-16 Sec. 1434.101. DONATION OF PERMANENT IMPROVEMENTS. (a) A
253-17 county or municipality may donate to a general academic teaching
253-18 institution a permanent improvement acquired, constructed, or
253-19 improved by the county, by the municipality, or by the county and
253-20 the municipality jointly.
253-21 (b) The donation is not subject to any law of this state
253-22 governing the disposition of property owned by a county or
253-23 municipality. (V.A.C.S. Art. 1182n, Sec. 7.)
253-24 Sec. 1434.102. USE OF PERMANENT IMPROVEMENTS. (a) A
253-25 municipality may allow a state four-year institution of higher
253-26 education or a university system to use land or buildings acquired
253-27 by the municipality.
254-1 (b) This section does not apply to an institution of higher
254-2 education that is supported in any way by revenue from a local tax
254-3 base.
254-4 (c) A use under this section is a municipal purpose and a
254-5 public use for the municipality. (V.A.C.S. Art. 1182n, Sec. 3(d).)
254-6 CHAPTER 1435. BONDS FOR PARKS AND FAIRGROUND FACILITIES
254-7 IN CERTAIN MUNICIPALITIES AND COUNTIES
254-8 SUBCHAPTER A. GENERAL PROVISIONS
254-9 Sec. 1435.001. APPLICABILITY OF CHAPTER; JOINT MUNICIPAL AND
254-10 COUNTY ACTION
254-11 Sec. 1435.002. DEFINITION
254-12 Sec. 1435.003. AUTHORITY FOR PARK FACILITIES
254-13 Sec. 1435.004. LEASE OR CONTRACT FOR OPERATION OF PARK
254-14 FACILITIES
254-15 (Sections 1435.005-1435.050 reserved for expansion)
254-16 SUBCHAPTER B. BONDS
254-17 Sec. 1435.051. AUTHORITY TO ISSUE REVENUE BONDS
254-18 Sec. 1435.052. MATURITY
254-19 Sec. 1435.053. DUTY OF GOVERNING BODY
254-20 Sec. 1435.054. EXECUTION OF BONDS
254-21 CHAPTER 1435. BONDS FOR PARKS AND FAIRGROUND FACILITIES
254-22 IN CERTAIN MUNICIPALITIES AND COUNTIES
254-23 SUBCHAPTER A. GENERAL PROVISIONS
254-24 Sec. 1435.001. APPLICABILITY OF CHAPTER; JOINT MUNICIPAL AND
254-25 COUNTY ACTION. (a) This chapter applies only to:
254-26 (1) a municipality with a population greater than
254-27 550,000;
255-1 (2) a county with a population greater than 550,000;
255-2 or
255-3 (3) a municipality described by Subdivision (1) and a
255-4 county described by Subdivision (2) acting together.
255-5 (b) A provision of this chapter that applies to a
255-6 municipality or county also applies to a municipality and county
255-7 acting together. (V.A.C.S. Art. 6081j, Sec. 1.)
255-8 Sec. 1435.002. DEFINITION. In this chapter, "park facility"
255-9 means a building, improvement, or structure owned by a municipality
255-10 or county and used in a municipal or county park or fairground for
255-11 exhibits, concessions, or entertainment. (V.A.C.S. Art. 6081j, Sec.
255-12 2 (part).)
255-13 Sec. 1435.003. AUTHORITY FOR PARK FACILITIES. A
255-14 municipality or county may:
255-15 (1) construct, acquire, repair, improve, or enlarge a
255-16 park facility; or
255-17 (2) acquire additional land, if needed, for a park
255-18 facility. (V.A.C.S. Art. 6081j, Sec. 2 (part).)
255-19 Sec. 1435.004. LEASE OR CONTRACT FOR OPERATION OF PARK
255-20 FACILITIES. A municipality or county may enter a lease or contract
255-21 for the operation of one or more of its park facilities. (V.A.C.S.
255-22 Art. 6081j, Sec. 3 (part).)
255-23 (Sections 1435.005-1435.050 reserved for expansion)
255-24 SUBCHAPTER B. BONDS
255-25 Sec. 1435.051. AUTHORITY TO ISSUE REVENUE BONDS. (a) To
255-26 obtain money for a purpose described by Section 1435.003, the
255-27 governing body of a municipality or county may, without an
256-1 election, issue revenue bonds payable from and secured by a pledge
256-2 of the net revenue from one or more of its park facilities or from
256-3 leases of or contracts for the operation of the park facilities.
256-4 (b) A bond issued under this chapter must state on its face
256-5 substantially the following: "The holder of this bond is not
256-6 entitled to demand payment of this bond out of money raised by
256-7 taxation." (V.A.C.S. Art. 6081j, Sec. 4 (part).)
256-8 Sec. 1435.052. MATURITY. A bond issued under this chapter
256-9 must mature within 40 years. (V.A.C.S. Art. 6081j, Sec. 5 (part).)
256-10 Sec. 1435.053. DUTY OF GOVERNING BODY. While the bonds are
256-11 outstanding, the governing body of the municipality or county
256-12 shall:
256-13 (1) enforce each lease or contract entered under
256-14 Section 1435.004 and impose adequate fees, charges, and rentals to
256-15 assure payment of the principal of and interest on the bonds as
256-16 they become due; and
256-17 (2) establish and maintain the funds as provided by
256-18 the ordinance authorizing the issuance of the bonds. (V.A.C.S.
256-19 Art. 6081j, Sec. 4 (part).)
256-20 Sec. 1435.054. EXECUTION OF BONDS. The bonds shall be
256-21 executed as provided by law for municipal bonds. (V.A.C.S.
256-22 Art. 6081j, Sec. 5 (part).)
256-23 (Chapters 1436-1470 reserved for expansion)
256-24 SUBTITLE I. SPECIFIC AUTHORITY FOR COUNTIES
256-25 TO ISSUE SECURITIES
256-26 CHAPTER 1471. BONDS FOR COUNTY ROADS
256-27 SUBCHAPTER A. GENERAL PROVISIONS
257-1 Sec. 1471.001. APPLICABILITY OF CHAPTER
257-2 Sec. 1471.002. CONFLICTS OF LAW
257-3 (Sections 1471.003-1471.010 reserved for expansion)
257-4 SUBCHAPTER B. ISSUANCE OF BONDS
257-5 Sec. 1471.011. AUTHORITY TO ISSUE ROAD BONDS
257-6 Sec. 1471.012. EMERGENCY NOTES
257-7 Sec. 1471.013. TAX ANTICIPATION NOTES
257-8 Sec. 1471.014. BOND ANTICIPATION NOTES
257-9 Sec. 1471.015. ELECTION ON ISSUANCE OF BONDS: COUNTY
257-10 Sec. 1471.016. PETITION FOR ELECTION ON ISSUANCE OF
257-11 BONDS: PRECINCT OR ROAD DISTRICT
257-12 Sec. 1471.017. HEARING ON AND DETERMINATION OF PETITION:
257-13 PRECINCT OR ROAD DISTRICT
257-14 Sec. 1471.018. NOTICE OF ELECTION
257-15 Sec. 1471.019. RESULTS OF ELECTION
257-16 Sec. 1471.020. EFFECT OF LACK OF NOTICE
257-17 Sec. 1471.021. MATURITY
257-18 Sec. 1471.022. DESIGNATION OF BONDS
257-19 Sec. 1471.023. DISPOSITION OF BOND PROCEEDS
257-20 Sec. 1471.024. DUTIES OF COUNTY TREASURER
257-21 Sec. 1471.025. DISBURSEMENT OF BOND PROCEEDS BY COUNTY
257-22 TREASURER
257-23 Sec. 1471.026. INVESTMENT OF SINKING FUNDS
257-24 Sec. 1471.027. USE OF BOND PROCEEDS OUTSIDE ROAD DISTRICT
257-25 Sec. 1471.028. USE OF SURPLUS SINKING FUND
257-26 Sec. 1471.029. ELECTION FOR REPURCHASE AND CANCELLATION
257-27 OF BONDS
258-1 (Sections 1471.030-1471.050 reserved for expansion)
258-2 SUBCHAPTER C. REFINANCING ROAD DISTRICT BONDS THROUGH
258-3 ASSESSMENTS
258-4 Sec. 1471.051. ALTERNATE REFUNDING BONDS AND CERTIFICATES
258-5 OF ASSESSMENT AUTHORIZED
258-6 Sec. 1471.052. ASSESSMENT AS SECURITY
258-7 Sec. 1471.053. MATURITY
258-8 Sec. 1471.054. PREPARATION OF ASSESSMENT
258-9 Sec. 1471.055. NOTICE OF HEARING
258-10 Sec. 1471.056. IMPOSITION OF ASSESSMENT
258-11 Sec. 1471.057. APPEAL OF ASSESSMENT
258-12 Sec. 1471.058. REASSESSMENT
258-13 Sec. 1471.059. ADJUSTMENT OF VALUES FOLLOWING REASSESSMENT
258-14 Sec. 1471.060. LIEN FOR UNPAID ASSESSMENT
258-15 Sec. 1471.061. ISSUANCE AND FORM OF CERTIFICATES
258-16 Sec. 1471.062. ASSESSMENTS CONSIDERED TAXES
258-17 (Sections 1471.063-1471.080 reserved for expansion)
258-18 SUBCHAPTER D. COMPENSATION BONDS
258-19 Sec. 1471.081. ELECTION AUTHORIZED
258-20 Sec. 1471.082. ISSUANCE OF COUNTY BONDS
258-21 Sec. 1471.083. EXCHANGE OF BONDS
258-22 Sec. 1471.084. DEPOSIT OF COUNTY BONDS AS GUARANTEE
258-23 Sec. 1471.085. TERMS AND FORM OF COMPENSATION BONDS; USE
258-24 OF SURPLUS BONDS
258-25 Sec. 1471.086. CREATION OF ROAD DISTRICT CONTAINING ENTIRE
258-26 TERRITORY OF EXISTING DISTRICT
258-27 Sec. 1471.087. CREATION OF ROAD DISTRICT CONTAINING PORTION
259-1 OF TERRITORY OF EXISTING DISTRICT
259-2 CHAPTER 1471. BONDS FOR COUNTY ROADS
259-3 SUBCHAPTER A. GENERAL PROVISIONS
259-4 Sec. 1471.001. APPLICABILITY OF CHAPTER. This chapter
259-5 applies only to the following political subdivisions:
259-6 (1) a county, including a county operating under a
259-7 special road tax law;
259-8 (2) a commissioners precinct or a justice precinct of
259-9 a county; and
259-10 (3) a road district. (V.A.C.S. Art. 726, Secs.
259-11 2.001(a), 2.016 (part); New.)
259-12 Sec. 1471.002. CONFLICTS OF LAW. To the extent of a
259-13 conflict between this chapter and Chapter 1204, Chapter 1204
259-14 controls. (V.A.C.S. Art. 726, Sec. 4.001.)
259-15 (Sections 1471.003-1471.010 reserved for expansion)
259-16 SUBCHAPTER B. ISSUANCE OF BONDS
259-17 Sec. 1471.011. AUTHORITY TO ISSUE ROAD BONDS. (a) In this
259-18 section, "bonds" includes tax anticipation notes, bond anticipation
259-19 notes, and other obligations.
259-20 (b) A political subdivision may issue bonds in the manner
259-21 provided by this chapter and Section 52, Article III, Texas
259-22 Constitution, to:
259-23 (1) construct, purchase, maintain, or operate a
259-24 macadamized, graveled, or paved road or turnpike; or
259-25 (2) aid a purpose described by Subdivision (1).
259-26 (c) An issuer of bonds under Subsection (b) may impose ad
259-27 valorem taxes to pay the interest on the bonds and provide a
260-1 sinking fund for the redemption of the bonds.
260-2 (d) The total amount of bonds issued under this chapter may
260-3 not exceed one-fourth of the assessed value of real property of the
260-4 political subdivision issuing the bonds.
260-5 (e) In determining the limitation imposed by Subsection (d),
260-6 the assessed value of property of the political subdivision is the
260-7 market value of the property as recorded by the chief appraiser of
260-8 the appraisal district that appraises property for the political
260-9 subdivision. (V.A.C.S. Art. 726, Sec. 2.001(b).)
260-10 Sec. 1471.012. EMERGENCY NOTES. (a) If money is not
260-11 available, a political subdivision may:
260-12 (1) declare an emergency to:
260-13 (A) pay the principal of and interest on bonds
260-14 issued under this chapter any part of which is payable from taxes;
260-15 or
260-16 (B) meet any other need of the political
260-17 subdivision; and
260-18 (2) issue tax or bond anticipation notes to borrow the
260-19 money needed.
260-20 (b) Notes issued under this section must mature not later
260-21 than one year after their date. (V.A.C.S. Art. 726, Sec. 2.002(a)
260-22 (part).)
260-23 Sec. 1471.013. TAX ANTICIPATION NOTES. (a) A political
260-24 subdivision may issue tax anticipation notes authorized by Section
260-25 1471.012 for any purpose for which the political subdivision is
260-26 authorized to impose taxes under Subtitle C, Title 6,
260-27 Transportation Code.
261-1 (b) Tax anticipation notes must be secured by the proceeds
261-2 of taxes to be imposed in the succeeding 12 months.
261-3 (c) The commissioners court may covenant with purchasers of
261-4 the notes to impose a tax sufficient to pay:
261-5 (1) the principal of and interest on the notes; and
261-6 (2) the costs of collecting the taxes. (V.A.C.S.
261-7 Art. 726, Sec. 2.002(b).)
261-8 Sec. 1471.014. BOND ANTICIPATION NOTES. (a) A political
261-9 subdivision may issue bond anticipation notes authorized by Section
261-10 1471.012 for:
261-11 (1) any purpose for which bonds of the political
261-12 subdivision have been previously approved at an election; or
261-13 (2) refunding previously issued bond anticipation
261-14 notes.
261-15 (b) A political subdivision may covenant with the purchasers
261-16 of the bond anticipation notes to use the proceeds of sale of any
261-17 bonds in the process of being issued to refund the bond
261-18 anticipation notes. An issuer making a covenant under this
261-19 subsection shall apply the proceeds received from the sale of the
261-20 bonds in the process of being issued to pay the principal of,
261-21 interest on, or redemption price of the bond anticipation notes.
261-22 (V.A.C.S. Art. 726, Sec. 2.002(c).)
261-23 Sec. 1471.015. ELECTION ON ISSUANCE OF BONDS: COUNTY. (a)
261-24 On the motion of the commissioners court or on receipt of a
261-25 petition signed by a number of registered voters of the county
261-26 equal to at least one percent of the total votes cast in the county
261-27 in the most recent general election for governor, the court at a
262-1 regular or special session shall order an election to be held in
262-2 the county to determine whether the county shall:
262-3 (1) issue bonds to:
262-4 (A) construct, maintain, or operate a
262-5 macadamized, graveled, or paved road or turnpike; or
262-6 (B) aid a purpose described by Paragraph (A);
262-7 and
262-8 (2) impose taxes on all property in the county subject
262-9 to taxation to pay the interest on the bonds and to provide a
262-10 sinking fund for the redemption of the bonds at maturity.
262-11 (b) A petition submitted under Subsection (a) that
262-12 designates a particular road or project or a portion of a road or
262-13 project must be accompanied by a written estimate of the cost of
262-14 the road or project prepared by the county engineer at the expense
262-15 of the county.
262-16 (c) In addition to the requirements provided by Chapters 3
262-17 and 4, Election Code, the election order and notice of election
262-18 under this section must state:
262-19 (1) the purpose for which the bonds are to be issued;
262-20 (2) the amount of the bonds;
262-21 (3) the rate of interest; and
262-22 (4) that ad valorem taxes will be imposed annually on
262-23 all taxable property in the county in amounts sufficient to pay the
262-24 bonds at maturity. (V.A.C.S. Art. 726, Secs. 2.003, 2.007 (part).)
262-25 Sec. 1471.016. PETITION FOR ELECTION ON ISSUANCE OF BONDS:
262-26 PRECINCT OR ROAD DISTRICT. (a) A commissioners or justice
262-27 precinct or a road district may not issue bonds under this chapter
263-1 unless a petition is submitted to the commissioners court of the
263-2 county and an election is ordered under Section 1471.017.
263-3 (b) A petition under this section must:
263-4 (1) request the commissioners court of the county in
263-5 which the precinct or district is located to order an election to
263-6 determine whether:
263-7 (A) bonds of the precinct or district shall be
263-8 issued in an amount stated to:
263-9 (i) construct, maintain, or operate a
263-10 macadamized, graveled, or paved road or turnpike; or
263-11 (ii) aid an activity described in
263-12 Subparagraph (i); and
263-13 (B) taxes shall be imposed on all taxable
263-14 property in the precinct or district in payment of the bonds; and
263-15 (2) be signed by:
263-16 (A) 50 or a majority of the registered voters of
263-17 the precinct or district; or
263-18 (B) all of the owners of property in the
263-19 precinct or district as determined by the county tax roll.
263-20 (c) On receipt of the petition, the commissioners court by
263-21 order shall set the time and place for a hearing. The date of the
263-22 hearing may not be less than 15 days or more than 90 days after the
263-23 date the commissioners court orders the hearing. The county clerk
263-24 shall immediately issue a notice of the time and place of the
263-25 hearing.
263-26 (d) The notice of the hearing must:
263-27 (1) inform all interested persons of their right to
264-1 appear at the hearing and contend for or protest the ordering of
264-2 the bond election;
264-3 (2) state the amount of bonds proposed to be issued
264-4 and describe the precinct or district by its name or number;
264-5 (3) for a district:
264-6 (A) include a description of the property
264-7 comprising the district, including the district's estimated acreage
264-8 and boundaries, described in a manner reasonably calculated to
264-9 inform interested persons of the area comprising the district; and
264-10 (B) include a map or diagram of the area
264-11 reasonably calculated to show the boundaries of the district and
264-12 the major roadways in or adjacent to the district; and
264-13 (4) designate a county officer or employee from whom
264-14 further details may be obtained.
264-15 (e) The clerk shall execute notice under this section in the
264-16 same manner as required for an election under Section 1471.018.
264-17 (V.A.C.S. Art. 726, Secs. 2.004(a), (b).)
264-18 Sec. 1471.017. HEARING ON AND DETERMINATION OF PETITION:
264-19 PRECINCT OR ROAD DISTRICT. (a) At the hearing on a petition
264-20 submitted under Section 1471.016, the commissioners court shall
264-21 hear all matters pertaining to the proposed bond election. Any
264-22 interested person may appear before the court in person or by
264-23 attorney and contend for or protest the calling of the proposed
264-24 bond election.
264-25 (b) The commissioners court may order that an election be
264-26 held in the commissioners or justice precinct or road district on
264-27 the issue submitted in the petition if the court finds that:
265-1 (1) the petition is signed by the proper number of
265-2 qualified persons;
265-3 (2) the required notice has been given; and
265-4 (3) the proposed improvements would benefit all
265-5 taxable property in the precinct or district.
265-6 (c) The commissioners court may change the amount of bonds
265-7 proposed to be issued if at the hearing the court finds the change
265-8 is necessary or desirable.
265-9 (d) The proposition submitted at the election must specify:
265-10 (1) the purpose for which the bonds are to be issued;
265-11 (2) the amount of the bonds;
265-12 (3) the rate of interest; and
265-13 (4) that ad valorem taxes are to be imposed annually
265-14 on all taxable property in the precinct or district in an amount
265-15 sufficient to pay the annual interest and provide a sinking fund to
265-16 pay the bonds at maturity.
265-17 (e) A proposition meets the requirements of this chapter if
265-18 it is in the following form:
265-19 "Authorizing the (name of precinct or district) to issue its
265-20 bonds in the total sum of $__________ and to impose annually ad
265-21 valorem taxes on all taxable property in the (precinct or district)
265-22 to pay the interest on the bonds and create a sinking fund to
265-23 redeem the principal at maturity for the purposes of the purchase
265-24 or acquisition of roads and the construction, maintenance, and
265-25 operation of macadamized, graveled, or paved roads and turnpikes or
265-26 in aid of those purposes inside or outside the boundaries of the
265-27 (precinct or district)." (V.A.C.S. Art. 726, Sec. 2.005 (part).)
266-1 Sec. 1471.018. NOTICE OF ELECTION. (a) Notice for all
266-2 elections held under this chapter must be given as required by
266-3 Chapter 4, Election Code. The commissioners court shall give
266-4 notice of an election to be held for a commissioners or justice
266-5 precinct or a road district by posting notice in at least three
266-6 public places in the precinct or district and at the county
266-7 courthouse door.
266-8 (b) The commissioners court may, in addition to the notice
266-9 required by Subsection (a), prescribe that notice of an election or
266-10 hearing for bonds to be issued for a precinct or district be given
266-11 by mail to:
266-12 (1) each registered voter in the precinct or district;
266-13 (2) each owner of property in the precinct or district
266-14 as shown on the tax roll of the county; and
266-15 (3) each person having an interest in property in the
266-16 precinct or district as may reasonably be ascertained.
266-17 (c) Notice given under Subsection (b) is effective when
266-18 properly addressed and mailed. (V.A.C.S. Art. 726, Secs. 2.006(a)
266-19 (part), (b).)
266-20 Sec. 1471.019. RESULTS OF ELECTION. The commissioners court
266-21 may issue bonds on the faith and credit of the applicable political
266-22 subdivision if two-thirds of the voters voting in the election
266-23 approve the issuance of the bonds. (V.A.C.S. Art. 726, Sec.
266-24 2.009.)
266-25 Sec. 1471.020. EFFECT OF LACK OF NOTICE. Notice under
266-26 Section 1471.016(d) or 1471.018(a) is not a prerequisite to and
266-27 does not affect the validity of a hearing or election to which the
267-1 notice relates. (V.A.C.S. Art. 726, Sec. 2.006(a) (part).)
267-2 Sec. 1471.021. MATURITY. A bond issued under this chapter
267-3 must mature not later than 30 years after its date except as
267-4 otherwise provided by this chapter. (V.A.C.S. Art. 726, Sec. 2.010
267-5 (part).)
267-6 Sec. 1471.022. DESIGNATION OF BONDS. (a) Bonds issued
267-7 under this chapter by the county as a whole must be designated as
267-8 "________ (name of county) County Road Bonds."
267-9 (b) Bonds issued under this chapter for a commissioners or
267-10 justice precinct or a road district must:
267-11 (1) be designated as "Road Bonds"; and
267-12 (2) state on their face "The State of Texas," the name
267-13 of the county, and the number or corporate name of the precinct or
267-14 district issuing the bonds.
267-15 (c) Bonds issued under this chapter must state on their face
267-16 that the bonds are issued under Section 52, Article III, Texas
267-17 Constitution, and laws enacted under the constitution. (V.A.C.S.
267-18 Art. 726, Secs. 2.014, 2.015.)
267-19 Sec. 1471.023. DISPOSITION OF BOND PROCEEDS. (a) The
267-20 commissioners court has the custody and control of bonds or bond
267-21 anticipation notes issued under this chapter until sold under
267-22 Chapter 1201.
267-23 (b) The portion of the proceeds that represents capitalized
267-24 interest shall be placed in the county treasury to the credit of
267-25 the applicable political subdivision and may be used only to pay
267-26 interest due on the bonds or bond anticipation notes.
267-27 (c) Money remaining from the proceeds after the amounts
268-1 described in Subsection (b) are deposited and after the costs of
268-2 the issuance of the bonds or bond anticipation notes are paid shall
268-3 be placed in the county treasury to the credit of the available
268-4 road fund of the applicable political subdivision to be used for
268-5 the purposes for which the bonds were issued, including:
268-6 (1) payment of the following costs as approved by the
268-7 commissioners court:
268-8 (A) surveying;
268-9 (B) creation;
268-10 (C) construction or acquisition; or
268-11 (D) operation or maintenance; and
268-12 (2) payment or establishment of a reasonable reserve
268-13 to pay an amount equal to not more than three years' interest on
268-14 the notes and bonds of the political subdivision, as provided in
268-15 the bond order or resolution. (V.A.C.S. Art. 726, Secs. 2.011,
268-16 2.020.)
268-17 Sec. 1471.024. DUTIES OF COUNTY TREASURER. (a) The county
268-18 treasurer is the custodian of:
268-19 (1) all money collected under this chapter; and
268-20 (2) all taxes collected to pay principal of and
268-21 interest on bonds issued under this chapter.
268-22 (b) The county treasurer shall:
268-23 (1) deposit the money collected with the county
268-24 depository in the same manner as other money of the county; and
268-25 (2) promptly pay the principal of and interest on the
268-26 bonds as they become due from the money collected and deposited for
268-27 that purpose. (V.A.C.S. Art. 726, Sec. 2.012.)
269-1 Sec. 1471.025. DISBURSEMENT OF BOND PROCEEDS BY COUNTY
269-2 TREASURER. (a) The proceeds of county bonds may be paid out only
269-3 by the county treasurer on warrants:
269-4 (1) drawn on the available road fund;
269-5 (2) issued by the county clerk;
269-6 (3) countersigned by the county judge; and
269-7 (4) on certified accounts approved by the
269-8 commissioners court.
269-9 (b) The proceeds of bonds issued on the faith and credit of
269-10 a commissioners or justice precinct or a road district may be paid
269-11 out only by the county treasurer on warrants:
269-12 (1) drawn on the available road fund of the applicable
269-13 political subdivision;
269-14 (2) issued by the county clerk;
269-15 (3) countersigned by the county judge; and
269-16 (4) approved by the commissioners court. (V.A.C.S.
269-17 Art. 726, Sec. 2.013.)
269-18 Sec. 1471.026. INVESTMENT OF SINKING FUNDS. (a) The
269-19 commissioners court may invest money in a sinking fund accumulated
269-20 for the redemption and payment of any bonds issued under this
269-21 chapter in:
269-22 (1) bonds of the United States, this state, or a
269-23 county, municipality, school district, or road district of this
269-24 state;
269-25 (2) bonds of the Federal Farm Loan Bank system; or
269-26 (3) certificates of indebtedness issued by the
269-27 secretary of the treasury of the United States.
270-1 (b) Sinking funds accumulated for the redemption and payment
270-2 of bonds issued under this chapter may not be invested in bonds the
270-3 terms of which provide for a maturity date after the date of
270-4 maturity of the bonds for which the sinking fund was created.
270-5 (c) Interest on an investment shall be applied to the
270-6 sinking fund associated with the investment. (V.A.C.S. Art. 726,
270-7 Secs. 1.001, 1.002 (part).)
270-8 Sec. 1471.027. USE OF BOND PROCEEDS OUTSIDE ROAD DISTRICT.
270-9 A road district may use the proceeds of bonds issued under this
270-10 chapter for road improvements located outside the district if the
270-11 commissioners court finds that the improvements are reasonable,
270-12 necessary, and beneficial to all taxable property in the district.
270-13 (V.A.C.S. Art. 726, Sec. 2.021.)
270-14 Sec. 1471.028. USE OF SURPLUS SINKING FUND. An amount
270-15 remaining in the sinking fund after the principal of and interest
270-16 on the bonds are fully paid may be used by a political subdivision:
270-17 (1) for the construction, maintenance, and operation
270-18 of macadamized, graveled, or paved roads or turnpikes;
270-19 (2) to aid a purpose described by Subdivision (1); or
270-20 (3) for a permanent improvement authorized by law as
270-21 determined by the officials of the political subdivision. (V.A.C.S.
270-22 Art. 726, Sec. 2.001(c).)
270-23 Sec. 1471.029. ELECTION FOR REPURCHASE AND CANCELLATION OF
270-24 BONDS. (a) On receipt of a petition signed by at least 50
270-25 registered voters of the political subdivision issuing the bonds,
270-26 the commissioners court shall order an election to determine
270-27 whether road bonds in an amount equal to the unexpended and
271-1 unpledged proceeds remaining from the sale of bonds issued under
271-2 this chapter shall be repurchased, canceled, and revoked.
271-3 (b) The commissioners court shall hold an election ordered
271-4 under Subsection (a) in the same manner as the election at which
271-5 the bonds were originally authorized.
271-6 (c) The commissioners court may advertise for and repurchase
271-7 the outstanding bonds from the holders if two-thirds of the voters
271-8 voting in the election approve the repurchase, cancellation, and
271-9 revocation.
271-10 (d) After repurchasing the bonds, the commissioners court
271-11 shall:
271-12 (1) cancel and burn the bonds; and
271-13 (2) forward to the comptroller a certified copy of the
271-14 minutes of the commissioners court showing the repurchase,
271-15 cancellation, and destruction of the bonds.
271-16 (e) On receipt of a copy under Subsection (d)(2), the
271-17 comptroller shall promptly cancel the registration of the bonds.
271-18 (V.A.C.S. Art. 726, Secs. 1.003(a), (b) (part).)
271-19 (Sections 1471.030-1471.050 reserved for expansion)
271-20 SUBCHAPTER C. REFINANCING ROAD DISTRICT BONDS THROUGH
271-21 ASSESSMENTS
271-22 Sec. 1471.051. ALTERNATE REFUNDING BONDS AND CERTIFICATES OF
271-23 ASSESSMENT AUTHORIZED. A road district may issue refunding bonds
271-24 or certificates of assessment under this subchapter to refinance
271-25 any portion of any outstanding bonded indebtedness if:
271-26 (1) the district receives a petition that:
271-27 (A) requests the issuance of the bonds or
272-1 certificates; and
272-2 (B) is signed by persons who own taxable real
272-3 property in the district that in total is valued at an amount at
272-4 least equal to 66 percent of the appraised value of all taxable
272-5 real property in the district, as determined by the most recent
272-6 certified appraisal roll of the appraisal district in which the
272-7 property is located; and
272-8 (2) the district determines, after notice and public
272-9 hearing held in accordance with this subchapter, that the property
272-10 in the district will benefit from the refinancing. (V.A.C.S.
272-11 Art. 726, Sec. 2.018(a).)
272-12 Sec. 1471.052. ASSESSMENT AS SECURITY. Bonds or
272-13 certificates issued under this subchapter must be secured by a
272-14 pledge of all or part of the money received by the road district
272-15 from an assessment made against all taxable real property in the
272-16 district under this subchapter. (V.A.C.S. Art. 726, Sec.
272-17 2.018(b).)
272-18 Sec. 1471.053. MATURITY. A bond or certificate issued under
272-19 this subchapter must mature not later than 30 years after its date
272-20 of issuance. (V.A.C.S. Art. 726, Sec. 2.018(c) (part).)
272-21 Sec. 1471.054. PREPARATION OF ASSESSMENT. Before issuing
272-22 bonds or certificates under this subchapter, the road district by
272-23 order shall:
272-24 (1) determine, as appropriate, the amount necessary to
272-25 pay all or a part of the principal of and interest on:
272-26 (A) the refunding bonds on maturity; or
272-27 (B) the outstanding bonded indebtedness of the
273-1 district;
273-2 (2) prepare a plan the district determines is
273-3 equitable for apportioning the amount determined under Subdivision
273-4 (1) among the record owners of real property in the district based
273-5 on the ratio that the appraised value of each lot or parcel in the
273-6 district bears to the total appraised value of real property in the
273-7 district; and
273-8 (3) hold a public hearing on the district's intention
273-9 to issue bonds or certificates. (V.A.C.S. Art. 726, Sec. 2.018(d)
273-10 (part).)
273-11 Sec. 1471.055. NOTICE OF HEARING. (a) Notice of the
273-12 hearing ordered under Section 1471.054 must provide:
273-13 (1) the date, time, place, and subject matter of the
273-14 hearing;
273-15 (2) that refunding bonds or certificates of assessment
273-16 are proposed to be issued by the road district;
273-17 (3) the purpose for which the bonds or certificates
273-18 are to be issued;
273-19 (4) the amount determined under Section 1471.054(1);
273-20 and
273-21 (5) the plan prepared by the district under Section
273-22 1471.054(2).
273-23 (b) Notice containing the information required by Subsection
273-24 (a) must be published in a newspaper of general circulation in the
273-25 county not later than the 30th day before the date of the hearing.
273-26 (c) Not later than the 14th day before the date of the
273-27 hearing, the district shall mail to each owner of real property in
274-1 the district as determined from the most recent certified appraisal
274-2 roll of the appraisal district in which the property is located
274-3 notice containing:
274-4 (1) the information required by Subsection (a)(1); and
274-5 (2) an estimate of the amount of the assessment to be
274-6 apportioned to that owner's property.
274-7 (d) The failure of a property owner to receive notice of the
274-8 hearing and of the estimated assessment does not affect the
274-9 validity of the hearing or a subsequent assessment. (V.A.C.S.
274-10 Art. 726, Secs. 2.018(d) (part), (e).)
274-11 Sec. 1471.056. IMPOSITION OF ASSESSMENT. (a) If, at the
274-12 conclusion of the hearing, the road district by order determines
274-13 that the property in the district will benefit from refinancing
274-14 under this subchapter, the district may:
274-15 (1) issue refunding bonds or certificates of
274-16 assessment to pay all or part of the district's bonded
274-17 indebtedness; and
274-18 (2) impose the assessments as special assessments on
274-19 the property in the district.
274-20 (b) For assessments imposed under Subsection (a), the
274-21 district:
274-22 (1) shall specify the method of payment and rate of
274-23 interest of the assessments; and
274-24 (2) may provide for payment in periodic installments
274-25 in amounts necessary to pay the principal of and interest on the
274-26 refunding bonds or certificates of assessment as accrued.
274-27 (V.A.C.S. Art. 726, Sec. 2.018(f) (part).)
275-1 Sec. 1471.057. APPEAL OF ASSESSMENT. (a) A property owner
275-2 may appeal an assessment under this subchapter by filing a notice
275-3 of appeal with the road district not later than the 30th day after
275-4 the date the assessment is adopted. After receiving notice of
275-5 appeal under this subsection, the district shall set a date to hear
275-6 the appeal.
275-7 (b) A property owner may appeal a district's decision on an
275-8 assessment made under this subchapter to a court by filing notice
275-9 of the appeal with the court not later than the 30th day after the
275-10 date of the district's final decision on the assessment.
275-11 (c) A property owner who fails to file notice in the time
275-12 required by Subsection (a) or (b) loses the right to appeal the
275-13 assessment. (V.A.C.S. Art. 726, Sec. 2.018(g).)
275-14 Sec. 1471.058. REASSESSMENT. (a) A road district may make
275-15 a new assessment of property assessed under this subchapter if an
275-16 assessment of the property is:
275-17 (1) set aside by a court;
275-18 (2) found excessive by the district; or
275-19 (3) determined invalid by the district.
275-20 (b) A district may reassess property if:
275-21 (1) at the time the bonds or certificates are issued
275-22 under this subchapter, the property is exempt from taxation under
275-23 Subchapter B, Chapter 11, Tax Code, or appraised under Subchapter
275-24 C, D, or E, Chapter 23, Tax Code; and
275-25 (2) the property subsequently loses its exemption or
275-26 is not eligible for appraisal under Subchapter C, D, or E, Chapter
275-27 23, Tax Code.
276-1 (c) A district may make a supplemental assessment to correct
276-2 an omission or mistake in an assessment.
276-3 (d) Before making an assessment under Subsection (b) or (c),
276-4 a district must give notice and conduct a hearing in the manner
276-5 required for an original assessment. (V.A.C.S. Art. 726, Secs.
276-6 2.018(h), (i), (j).)
276-7 Sec. 1471.059. ADJUSTMENT OF VALUES FOLLOWING REASSESSMENT.
276-8 (a) In making a reassessment under Section 1471.058(b), the road
276-9 district shall assess the property using the property's market
276-10 value for the year preceding the year in which the bonds or
276-11 certificates are issued.
276-12 (b) The district shall proportionately reduce the assessment
276-13 of the other property in the district to reflect the value of the
276-14 reassessed property. The district shall refund to a property owner
276-15 the difference between the amount of the original assessment and a
276-16 new assessment under this subsection if the property owner has paid
276-17 the entire amount of the original assessment. (V.A.C.S. Art. 726,
276-18 Sec. 2.018(k).)
276-19 Sec. 1471.060. LIEN FOR UNPAID ASSESSMENT. (a) An
276-20 assessment under this subchapter, any interest, and any expenses of
276-21 collection or reasonable attorney's fees incurred are a lien
276-22 against the assessed property until paid.
276-23 (b) A lien under Subsection (a):
276-24 (1) is superior to any other lien except an ad valorem
276-25 tax lien; and
276-26 (2) is effective from the date the assessment is
276-27 imposed until the date the total amount of the assessment for the
277-1 property is paid.
277-2 (c) A road district may enforce a lien under Subsection (a)
277-3 in the same manner as the commissioners court enforces an ad
277-4 valorem tax lien.
277-5 (d) The owner of assessed property is personally liable for
277-6 the payment of an assessment under this subchapter and may pay at
277-7 any time the entire amount of the assessment and accrued interest
277-8 on any lot or parcel. Liability for an assessment passes with the
277-9 property on a transfer of ownership.
277-10 (e) A lien for a supplemental assessment or reassessment is
277-11 effective even if the property has been released from a prior lien
277-12 under this subchapter. (V.A.C.S. Art. 726, Sec. 2.018(l).)
277-13 Sec. 1471.061. ISSUANCE AND FORM OF CERTIFICATES. (a) A
277-14 road district may issue and transfer, on terms determined by the
277-15 district, a certificate of assessment for each assessed lot or
277-16 parcel. A certificate of assessment may be issued under Chapter
277-17 1207 as if it were a bond. On making a supplemental assessment or
277-18 reassessment, the district shall provide a certificate of
277-19 assessment reflecting any change in the value of the original
277-20 assessment.
277-21 (b) A certificate must state:
277-22 (1) the amount of the lien on the assessed property;
277-23 (2) the liability of the property owner for the lien;
277-24 (3) the terms of transfer of the certificate;
277-25 (4) that the assessment was imposed and the
277-26 certificate was issued under this subchapter; and
277-27 (5) that the certificate is not an obligation of or
278-1 secured by a pledge of the faith or credit of a county in which the
278-2 district is located.
278-3 (c) A certificate is prima facie evidence of all the matters
278-4 shown on the certificate.
278-5 (d) A holder of the certificate may enforce the assessment
278-6 in the same manner as the district may enforce assessments made
278-7 under this subchapter. (V.A.C.S. Art. 726, Secs. 2.018(c) (part),
278-8 (m).)
278-9 Sec. 1471.062. ASSESSMENTS CONSIDERED TAXES. For purposes
278-10 of a title insurance policy issued under Chapter 9, Insurance Code,
278-11 an assessment under this subchapter and any interest on or expenses
278-12 or attorney's fees related to the assessment are considered taxes.
278-13 (V.A.C.S. Art. 726, Sec. 2.018(n).)
278-14 (Sections 1471.063-1471.080 reserved for expansion)
278-15 SUBCHAPTER D. COMPENSATION BONDS
278-16 Sec. 1471.081. ELECTION AUTHORIZED. (a) On receipt of a
278-17 petition signed by 250 registered voters residing anywhere in the
278-18 county, the commissioners court shall order an election in the
278-19 county to determine whether bonds of the county shall be issued to
278-20 fully compensate a commissioners or justice precinct or a road
278-21 district for bonds authorized to be issued under a general or
278-22 special law adopted under Section 52, Article III, Texas
278-23 Constitution.
278-24 (b) At the election, the ballot proposition must include:
278-25 (1) the purpose for which the bonds are to be issued;
278-26 and
278-27 (2) the question as to whether a tax shall be imposed
279-1 on the taxable property in the county to pay the interest on the
279-2 bonds and to provide a sinking fund for the redemption of the
279-3 bonds.
279-4 (c) If the bonds of the precinct or district have been
279-5 authorized but not issued and sold or if the bonds have been sold
279-6 but the proceeds have not been spent, the ballot proposition must
279-7 state: "The issuance of county bonds for the construction of
279-8 district roads and the further construction, maintenance, and
279-9 operation of macadamized, graveled, or paved roads and turnpikes,
279-10 or in aid of these purposes, throughout the county."
279-11 (d) If the bonds of the precinct or district have been
279-12 issued and the proceeds have been applied to the construction of
279-13 roads in the precinct or district, the ballot proposition must
279-14 state: "The issuance of county bonds for the purchase of district
279-15 roads and the further construction, maintenance, and operation of
279-16 macadamized, graveled, or paved roads and turnpikes, or in aid of
279-17 these purposes, throughout the county." (V.A.C.S. Art. 726, Secs.
279-18 3.001(a), (b), (c) (part), (d) (part), (e) (part).)
279-19 Sec. 1471.082. ISSUANCE OF COUNTY BONDS. (a) If the
279-20 proposition to issue county bonds receives the required favorable
279-21 vote, the county shall issue the bonds in the amount stated in the
279-22 election order, but not in an amount that exceeds a limitation
279-23 imposed by the constitution or a statute.
279-24 (b) After the county issues the bonds, the commissioners
279-25 court shall set aside the amount necessary to fully compensate the
279-26 commissioners or justice precinct or road district for the purpose
279-27 for which the bonds were issued.
280-1 (c) If the bonds are approved for the purpose described by
280-2 Section 1471.081(c) and the precinct or district bonds have not
280-3 been issued and sold, the commissioners court shall:
280-4 (1) apply the proceeds of the county bonds to the
280-5 construction, maintenance, and operation of the roads in the
280-6 precinct or district as contemplated by the election approving the
280-7 precinct or district bonds; and
280-8 (2) immediately cancel and destroy the unsold precinct
280-9 or district bonds.
280-10 (d) If the bonds are approved for the purpose described by
280-11 Section 1471.081(d), the roads of the precinct or district may
280-12 become a part of the county road system. (V.A.C.S. Art. 726, Secs.
280-13 3.001(c) (part), (d) (part), (e) (part), 3.002(a) (part).)
280-14 Sec. 1471.083. EXCHANGE OF BONDS. (a) If county bonds are
280-15 authorized for commissioners or justice precinct or road district
280-16 bonds that have been issued and sold, an exchange of a like amount
280-17 of the county bonds may be made with the holder of any outstanding
280-18 bonds of the precinct or district.
280-19 (b) An agreement for an exchange under this section must:
280-20 (1) be by order of the commissioners court authorizing
280-21 the exchange; and
280-22 (2) contain the signed and acknowledged written
280-23 consent of the holder of the bonds in the form required by law for
280-24 written instruments.
280-25 (c) A copy of the order authorizing the exchange, the
280-26 agreement, and the county bonds to be given in exchange shall be
280-27 submitted to the attorney general for approval. The exchange is
281-1 not effective until the attorney general issues a certificate
281-2 approving the exchange.
281-3 (d) If the exchange takes effect under this section:
281-4 (1) the commissioners court shall cancel and destroy
281-5 the bonds of the precinct or district;
281-6 (2) the county may not impose the tax approved at the
281-7 election of the precinct or district authorizing the bonds; and
281-8 (3) the sinking fund associated with the bonds of the
281-9 precinct or district shall be transferred to the sinking fund
281-10 account of the county. (V.A.C.S. Art. 726, Secs. 3.001(d) (part),
281-11 (e) (part), 3.002(b).)
281-12 Sec. 1471.084. DEPOSIT OF COUNTY BONDS AS GUARANTEE. (a)
281-13 If the commissioners court determines that an exchange cannot be
281-14 made under Section 1471.083, the court as soon as practicable shall
281-15 deposit with the county treasurer to the credit of the interest and
281-16 sinking fund account of the commissioners or justice precinct or
281-17 road district an amount of county bonds equal to the amount of
281-18 outstanding bonds of the precinct or district.
281-19 (b) Before depositing the county bonds under Subsection (a),
281-20 the commissioners court shall submit to the attorney general a copy
281-21 of the order authorizing the deposit and the county bonds to be
281-22 deposited. The county bonds may be deposited only if the attorney
281-23 general issues a certificate of approval.
281-24 (c) To be deposited under this section, county bonds must:
281-25 (1) have the word "nonnegotiable" written across the
281-26 face of the bond; and
281-27 (2) state that the bonds are deposited to the credit
282-1 of the interest and sinking fund account of the precinct or
282-2 district named in the bonds as a guarantee of the payment of the
282-3 outstanding bonds of the precinct or district that have not been
282-4 exchanged.
282-5 (d) Coupons attached to county bonds to be deposited must
282-6 have the word "nonnegotiable" written on the coupons.
282-7 (e) After deposit of the county bonds:
282-8 (1) the sinking fund associated with the bonds of the
282-9 precinct or district shall be transferred to the sinking fund
282-10 account of the county; and
282-11 (2) the commissioners court may not impose the tax
282-12 approved at the election of the precinct or district authorizing
282-13 the bonds.
282-14 (f) The commissioners court shall pay annually the interest
282-15 on the county bonds deposited under this section from taxes imposed
282-16 to pay interest on the county bonds and detach the coupon used for
282-17 payment. The payment shall be credited to the interest account of
282-18 the precinct or district, and the court shall use that money to pay
282-19 the interest on the outstanding bonds of the precinct or district.
282-20 (g) From the taxes imposed to provide the sinking fund for
282-21 the county bonds, the commissioners court shall set aside annually
282-22 in the sinking fund the amount necessary for the retirement of the
282-23 county bonds. On maturity of the county bonds, the court shall pay
282-24 the bonds in full. The payment shall be credited to the sinking
282-25 fund of the precinct or district, and the court shall use that
282-26 money to pay in full all outstanding bonds of the precinct or
282-27 district. (V.A.C.S. Art. 726, Secs. 3.001(d) (part), (e) (part),
283-1 3.002(c).)
283-2 Sec. 1471.085. TERMS AND FORM OF COMPENSATION BONDS; USE OF
283-3 SURPLUS BONDS. (a) County bonds issued for a purpose described by
283-4 Section 1471.081(c) or (d) shall:
283-5 (1) be issued in similar denominations, bear the same
283-6 rate of interest, and have the same date of maturity and similar
283-7 payment options as the outstanding bonds of the commissioners or
283-8 justice precinct or road district; and
283-9 (2) in all respects be similar to the outstanding
283-10 precinct or district bonds except that the bonds:
283-11 (A) are county obligations instead of precinct
283-12 or district obligations; and
283-13 (B) shall be dated after the election at which
283-14 the county bonds were authorized.
283-15 (b) County bonds issued in excess of the amount required to
283-16 exchange, offset, and retire the outstanding precinct or district
283-17 bonds must mature within 40 years.
283-18 (c) The proceeds of county bonds issued in excess of the
283-19 amount required to exchange, offset, and retire the outstanding
283-20 precinct or district bonds shall be credited to the available road
283-21 fund of the county. The commissioners court may spend the proceeds
283-22 throughout the county only:
283-23 (1) to construct, maintain, or operate a macadamized,
283-24 graveled, or paved road or turnpike; or
283-25 (2) in aid of a purpose described by Subdivision (1).
283-26 (d) Except as provided by this subchapter, the issuance and
283-27 sale of bonds authorized by this subchapter and the imposition of
284-1 taxes for the bonds shall be as required by law for other county
284-2 bonds. (V.A.C.S. Art. 726, Sec. 3.003 (part).)
284-3 Sec. 1471.086. CREATION OF ROAD DISTRICT CONTAINING ENTIRE
284-4 TERRITORY OF EXISTING DISTRICT. (a) If a road district is created
284-5 that contains all of the territory of an existing commissioners or
284-6 justice precinct or road district that has outstanding road bonds,
284-7 the newly created district:
284-8 (1) shall fully compensate the existing precinct or
284-9 district in an amount equal to the amount of outstanding road
284-10 bonds; and
284-11 (2) may issue bonds to:
284-12 (A) purchase or construct roads in the existing
284-13 precinct or district;
284-14 (B) further construct, maintain, or operate
284-15 macadamized, graveled, or paved roads or turnpikes in the new
284-16 district; or
284-17 (C) aid in a purpose described by Paragraph (A)
284-18 or (B).
284-19 (b) The compensation shall be made and the bonds issued in
284-20 the form and manner for county bonds under Sections
284-21 1471.081-1471.085 except that the petition must be signed by 50 or
284-22 a majority of the registered voters of the new district. (V.A.C.S.
284-23 Art. 726, Sec. 3.004.)
284-24 Sec. 1471.087. CREATION OF ROAD DISTRICT CONTAINING PORTION
284-25 OF TERRITORY OF EXISTING DISTRICT. (a) If a road district is
284-26 created that contains a portion of the territory of an existing
284-27 precinct or district that has outstanding road bonds, the newly
285-1 created district may issue bonds to:
285-2 (1) purchase roads in the existing precinct or
285-3 district; or
285-4 (2) further construct macadamized, graveled, or paved
285-5 roads or turnpikes in the new district.
285-6 (b) The bonds shall be issued in the form and manner
285-7 prescribed for county bonds under Sections 1471.081-1471.086.
285-8 (V.A.C.S. Art. 726, Sec. 3.005 (part).)
285-9 CHAPTER 1472. REFUNDING OF COUNTY BONDS FOR CAUSEWAYS
285-10 Sec. 1472.001. APPLICABILITY OF CHAPTER
285-11 Sec. 1472.002. AUTHORITY TO ISSUE REFUNDING BONDS
285-12 Sec. 1472.003. MATURITY
285-13 Sec. 1472.004. SALE OF BONDS
285-14 Sec. 1472.005. EXCHANGE OR REPAYMENT OF BONDS BEING REFUNDED
285-15 Sec. 1472.006. USE OF FUNDS ESTABLISHED FOR BONDS BEING
285-16 REFUNDED
285-17 Sec. 1472.007. CONTINUED IMPOSITION OF TAXES
285-18 Sec. 1472.008. REFUNDING OF REFUNDING BONDS
285-19 CHAPTER 1472. REFUNDING OF COUNTY BONDS FOR CAUSEWAYS
285-20 Sec. 1472.001. APPLICABILITY OF CHAPTER. This chapter
285-21 applies only to a county that has outstanding bonds:
285-22 (1) issued to construct, acquire, improve, operate, or
285-23 maintain a causeway; and
285-24 (2) the principal of and interest on which are payable
285-25 from revenue derived from the operation of the causeway. (V.A.C.S.
285-26 Art. 795a, Sec. 1 (part).)
285-27 Sec. 1472.002. AUTHORITY TO ISSUE REFUNDING BONDS. (a) The
286-1 commissioners court of the county may issue bonds to refund the
286-2 outstanding bonds described by Section 1472.001 and may impose ad
286-3 valorem taxes to pay the interest on and to provide a sinking fund
286-4 for the redemption of the refunding bonds only if the issuance of
286-5 the bonds is approved by a majority of the qualified voters voting
286-6 at an election held in the county in the manner provided by Chapter
286-7 1251.
286-8 (b) The aggregate principal amount of outstanding refunding
286-9 bonds issued under this section may not exceed an amount that, for
286-10 the payment of the principal of and interest on the bonds, would
286-11 require the county to impose ad valorem taxes at a rate greater
286-12 than the 80-cent limitation established by Section 9, Article VIII,
286-13 Texas Constitution. (V.A.C.S. Art. 795a, Secs. 1 (part), 2.)
286-14 Sec. 1472.003. MATURITY. A bond issued under this chapter
286-15 must mature not later than 40 years after its date. (V.A.C.S.
286-16 Art. 795a, Sec. 3 (part).)
286-17 Sec. 1472.004. SALE OF BONDS. The commissioners court may
286-18 determine the manner of sale of bonds issued under this chapter.
286-19 (V.A.C.S. Art. 795a, Sec. 3 (part).)
286-20 Sec. 1472.005. EXCHANGE OR REPAYMENT OF BONDS BEING
286-21 REFUNDED. The commissioners court may:
286-22 (1) exchange bonds issued under this chapter for the
286-23 bonds being refunded; or
286-24 (2) use the proceeds of bonds issued under this
286-25 chapter to pay the principal amount of the bonds being refunded and
286-26 any required redemption premium and cancel those bonds. (V.A.C.S.
286-27 Art. 795a, Secs. 3 (part), 5 (part).)
287-1 Sec. 1472.006. USE OF FUNDS ESTABLISHED FOR BONDS BEING
287-2 REFUNDED. On cancellation of the bonds being refunded, the
287-3 commissioners court may use money in any fund established by the
287-4 resolution or order authorizing the issuance of the bonds to be
287-5 refunded:
287-6 (1) to pay the principal of and accrued interest on
287-7 the bonds to be refunded;
287-8 (2) to pay any required redemption premium;
287-9 (3) to make a payment into the road and bridge fund of
287-10 the county; or
287-11 (4) for any other lawful purpose. (V.A.C.S.
287-12 Art. 795a, Sec. 3 (part).)
287-13 Sec. 1472.007. CONTINUED IMPOSITION OF TAXES. A county
287-14 issuing bonds under this chapter shall continue to impose ad
287-15 valorem taxes to pay the interest on those bonds and to provide a
287-16 sinking fund for the redemption of those bonds even if the
287-17 facilities constructed with the proceeds of the bonds being
287-18 refunded become a part of the state highway system. (V.A.C.S.
287-19 Art. 795a, Sec. 4.)
287-20 Sec. 1472.008. REFUNDING OF REFUNDING BONDS. Subject to
287-21 Section 1472.002(b), the commissioners court may refund bonds
287-22 issued under this chapter on the terms, including the maturity, as
287-23 determined by the court. (V.A.C.S. Art. 795a, Sec. 5 (part).)
287-24 CHAPTER 1473. OBLIGATIONS FOR COUNTY BUILDINGS
287-25 SUBCHAPTER A. BONDS FOR PUBLIC LIBRARIES
287-26 Sec. 1473.001. AUTHORITY TO ISSUE PUBLIC LIBRARY BONDS
287-27 Sec. 1473.002. PLEDGE OF REVENUE
288-1 Sec. 1473.003. BONDS NOT PAYABLE FROM TAXES
288-2 Sec. 1473.004. CONTENTS OF ORDER AUTHORIZING BONDS
288-3 Sec. 1473.005. ADOPTION AND EXECUTION OF DOCUMENTS
288-4 Sec. 1473.006. MATURITY
288-5 Sec. 1473.007. OPERATING AND LEASING CHARGES
288-6 Sec. 1473.008. REFUNDING BONDS
288-7 Sec. 1473.009. EXEMPTION FROM TAXATION
288-8 (Sections 1473.010-1473.020 reserved for expansion)
288-9 SUBCHAPTER B. BONDS FOR AUDITORIUMS, COLISEUMS,
288-10 AND EXHIBIT BUILDINGS
288-11 Sec. 1473.021. AUTHORITY FOR AUDITORIUM, COLISEUM, OR
288-12 EXHIBIT BUILDING
288-13 Sec. 1473.022. AUTHORITY TO ISSUE BONDS AND IMPOSE TAX
288-14 Sec. 1473.023. PAYMENT FOR BUILDINGS OR IMPROVEMENTS
288-15 Sec. 1473.024. LOCATION OF BUILDINGS OR IMPROVEMENTS
288-16 (Sections 1473.025-1473.050 reserved for expansion)
288-17 SUBCHAPTER C. SECURITIES TO IMPROVE OR REPAIR
288-18 CERTAIN BUILDINGS
288-19 Sec. 1473.051. DEFINITION
288-20 Sec. 1473.052. AUTHORITY TO ISSUE OBLIGATIONS
288-21 Sec. 1473.053. OBLIGATIONS NOT PAYABLE FROM TAXES
288-22 Sec. 1473.054. RENT
288-23 Sec. 1473.055. LIENS ON AND USE OF REVENUE FROM BUILDING
288-24 Sec. 1473.056. ELECTION NOT REQUIRED
288-25 (Sections 1473.057-1473.100 reserved for expansion)
288-26 SUBCHAPTER D. BONDS FOR JAILS OR OTHER BUILDINGS
288-27 Sec. 1473.101. AUTHORITY TO ISSUE BONDS AND IMPOSE TAX
289-1 Sec. 1473.102. ELECTION PROPOSITIONS
289-2 (Sections 1473.103-1473.130 reserved for expansion)
289-3 SUBCHAPTER E. BONDS FOR PARKING FACILITIES
289-4 Sec. 1473.131. DEFINITIONS
289-5 Sec. 1473.132. AUTHORITY FOR PARKING FACILITIES
289-6 Sec. 1473.133. OTHER FACILITIES WITHIN PARKING
289-7 FACILITY
289-8 Sec. 1473.134. LEASE OF PARKING FACILITY
289-9 Sec. 1473.135. AUTHORITY TO ISSUE BONDS
289-10 Sec. 1473.136. PLEDGE OF REVENUE; TAX
289-11 Sec. 1473.137. BONDS NOT PAYABLE FROM TAXES
289-12 Sec. 1473.138. MATURITY
289-13 Sec. 1473.139. SIGNATURES; REGISTRATION BY COUNTY TREASURER
289-14 Sec. 1473.140. ADDITIONAL BONDS
289-15 Sec. 1473.141. SALE OF BONDS
289-16 Sec. 1473.142. USE OF BOND PROCEEDS
289-17 Sec. 1473.143. RENTS AND RATES FOR SERVICES
289-18 Sec. 1473.144. REFUNDING BONDS
289-19 Sec. 1473.145. PROVISIONS FOR OPERATION OF PARKING
289-20 FACILITY
289-21 Sec. 1473.146. ELECTION NOT REQUIRED
289-22 (Sections 1473.147-1473.170 reserved for expansion)
289-23 SUBCHAPTER F. BONDS FOR PUBLIC HEALTH ADMINISTRATION
289-24 BUILDINGS IN CERTAIN COUNTIES
289-25 Sec. 1473.171. APPLICABILITY OF SUBCHAPTER
289-26 Sec. 1473.172. AUTHORITY FOR PUBLIC HEALTH ADMINISTRATION
289-27 BUILDING
290-1 Sec. 1473.173. AUTHORITY TO ISSUE BONDS
290-2 Sec. 1473.174. COST SHARING AND INTEREST IN JOINT PROJECTS
290-3 Sec. 1473.175. USE OF JOINT PROJECT BUILDING
290-4 (Sections 1473.176-1473.190 reserved for expansion)
290-5 SUBCHAPTER G. BONDS FOR WORKHOUSES AND FARMS IN COUNTIES WITH A
290-6 POPULATION OF MORE THAN 900,000
290-7 Sec. 1473.191. APPLICABILITY OF SUBCHAPTER
290-8 Sec. 1473.192. AUTHORITY TO ISSUE BONDS AND IMPOSE TAX
290-9 Sec. 1473.193. ELECTION
290-10 Sec. 1473.194. ELECTION PROPOSITION
290-11 Sec. 1473.195. NOTICE OF ELECTION
290-12 (Sections 1473.196-1473.230 reserved for expansion)
290-13 SUBCHAPTER H. CERTIFICATES OF INDEBTEDNESS FOR CRIME DETECTION
290-14 FACILITIES IN COUNTIES WITH POPULATION OF MORE THAN 900,000
290-15 Sec. 1473.231. APPLICABILITY OF SUBCHAPTER
290-16 Sec. 1473.232. AUTHORITY TO OPERATE CRIME DETECTION
290-17 FACILITIES; FEES, CHARGES, AND EXPENSES
290-18 Sec. 1473.233. AUTHORITY TO ISSUE CERTIFICATES OF
290-19 INDEBTEDNESS AND IMPOSE TAX
290-20 Sec. 1473.234. MATURITY
290-21 Sec. 1473.235. ELECTION NOT REQUIRED
290-22 Sec. 1473.236. LIMIT ON AMOUNT OF CERTIFICATES
290-23 (Sections 1473.237-1473.260 reserved for expansion)
290-24 SUBCHAPTER I. BONDS FOR AUDITORIUM OR COLISEUM PARKING FACILITIES
290-25 IN COUNTIES WITH POPULATION OF MORE THAN ONE MILLION
290-26 Sec. 1473.261. APPLICABILITY OF SUBCHAPTER
290-27 Sec. 1473.262. DEFINITIONS
291-1 Sec. 1473.263. AUTHORITY FOR PARKING FACILITY
291-2 Sec. 1473.264. LEASE OF PARKING FACILITY
291-3 Sec. 1473.265. AUTHORITY TO ISSUE REVENUE BONDS
291-4 Sec. 1473.266. PLEDGE OF REVENUE
291-5 Sec. 1473.267. BONDS NOT PAYABLE FROM TAXES
291-6 Sec. 1473.268. MATURITY
291-7 Sec. 1473.269. SIGNATURES; REGISTRATION BY COUNTY
291-8 TREASURER
291-9 Sec. 1473.270. ADDITIONAL BONDS
291-10 Sec. 1473.271. SALE OF BONDS
291-11 Sec. 1473.272. USE OF BOND PROCEEDS
291-12 Sec. 1473.273. RENTS AND RATES FOR SERVICES
291-13 Sec. 1473.274. REFUNDING BONDS
291-14 Sec. 1473.275. PROVISIONS FOR OPERATION OF PARKING
291-15 FACILITY
291-16 Sec. 1473.276. ELECTION NOT REQUIRED
291-17 CHAPTER 1473. OBLIGATIONS FOR COUNTY BUILDINGS
291-18 SUBCHAPTER A. BONDS FOR PUBLIC LIBRARIES
291-19 Sec. 1473.001. AUTHORITY TO ISSUE PUBLIC LIBRARY BONDS. The
291-20 commissioners court of a county by order may authorize the issuance
291-21 of county bonds to finance all or part of the acquisition,
291-22 construction, improvement, enlargement, equipment, or repair of a
291-23 public library building. (V.A.C.S. Art. 1696b, Sec. 1.)
291-24 Sec. 1473.002. PLEDGE OF REVENUE. The commissioners court
291-25 shall provide for the payment of the principal of and interest on
291-26 bonds issued under this subchapter by pledging all or part of the
291-27 revenue derived from:
292-1 (1) the operation of the library building; or
292-2 (2) the lease of space in the library building.
292-3 (V.A.C.S. Art. 1696b, Sec. 2(a).)
292-4 Sec. 1473.003. BONDS NOT PAYABLE FROM TAXES. An owner of a
292-5 bond issued under this subchapter is not entitled to demand payment
292-6 of the principal of or interest on the bond from money raised by
292-7 taxation. (V.A.C.S. Art. 1696b, Sec. 2(c).)
292-8 Sec. 1473.004. CONTENTS OF ORDER AUTHORIZING BONDS. (a)
292-9 The order of the commissioners court authorizing the issuance of
292-10 bonds under this subchapter may provide for the flow of funds and
292-11 the establishment and maintenance of an interest and sinking fund,
292-12 a reserve fund, or another fund.
292-13 (b) The order may:
292-14 (1) prohibit the issuance of additional bonds or other
292-15 obligations payable from the pledged revenue; or
292-16 (2) reserve the right of the commissioners court to
292-17 issue additional bonds payable from the pledged revenue that are on
292-18 a parity with or subordinate to the lien and pledge on the revenue
292-19 that supports the bonds issued under the order.
292-20 (c) The commissioners court may include in the order any
292-21 other provision or covenant, including a covenant with respect to
292-22 the bonds, the pledge of revenue, or the operation or maintenance
292-23 of the library building. (V.A.C.S. Art. 1696b, Secs. 4(a), (b),
292-24 (c).)
292-25 Sec. 1473.005. ADOPTION AND EXECUTION OF DOCUMENTS. The
292-26 commissioners court may adopt and have executed any other
292-27 proceeding or instrument necessary or convenient to the issuance of
293-1 the bonds. (V.A.C.S. Art. 1696b, Sec. 4(d).)
293-2 Sec. 1473.006. MATURITY. A bond issued under this
293-3 subchapter must mature not later than 40 years after its date.
293-4 (V.A.C.S. Art. 1696b, Secs. 3(b) (part), 6(b) (part).)
293-5 Sec. 1473.007. OPERATING AND LEASING CHARGES. (a) The
293-6 commissioners court shall:
293-7 (1) establish fees related to the operation of the
293-8 library building; and
293-9 (2) charge rent for the lease of space in the library
293-10 building.
293-11 (b) The court shall establish the fees and rents in amounts
293-12 to provide revenue sufficient to pay all expenses related to the
293-13 ownership and operation of the library building, including:
293-14 (1) payment of the principal of and interest on bonds
293-15 issued under this subchapter; and
293-16 (2) the creation and maintenance of any required bond
293-17 reserve fund. (V.A.C.S. Art. 1696b, Sec. 2(b).)
293-18 Sec. 1473.008. REFUNDING BONDS. (a) A county may issue
293-19 refunding bonds to refund all or any part of its outstanding bonds
293-20 issued under this subchapter, including matured but unpaid interest
293-21 coupons. The comptroller shall register the refunding bonds on the
293-22 surrender and cancellation of the bonds being refunded. The
293-23 refunding may take place in one delivery or in installment
293-24 deliveries.
293-25 (b) The refunding bonds may be payable from the same sources
293-26 as the bonds to be refunded or from other additional sources.
293-27 (c) A county may, in the order authorizing the issuance of
294-1 the refunding bonds, provide for the sale of the refunding bonds
294-2 and the deposit of the proceeds in the place at which the bonds to
294-3 be refunded are payable. In that case, the refunding bonds may be
294-4 issued before the cancellation of the bonds to be refunded.
294-5 (d) If refunding bonds are issued before cancellation of the
294-6 bonds to be refunded, the county shall deposit an amount sufficient
294-7 to pay the principal of and interest on the bonds to be refunded to
294-8 their maturity dates, or to their option dates if the bonds have
294-9 been called for payment before maturity according to their terms,
294-10 in each place at which the bonds to be refunded are payable. The
294-11 comptroller shall register the refunding bonds without the
294-12 surrender and cancellation of bonds to be refunded. (V.A.C.S.
294-13 Art. 1696b, Secs. 6(a), (c), (d) (part), (e), (f) (part).)
294-14 Sec. 1473.009. EXEMPTION FROM TAXATION. A bond issued under
294-15 this subchapter, any transaction related to the bond, and profits
294-16 made in the sale of the bond are exempt from taxation by this state
294-17 or by a municipality or other political subdivision of this state.
294-18 (V.A.C.S. Art. 1696b, Sec. 9.)
294-19 (Sections 1473.010-1473.020 reserved for expansion)
294-20 SUBCHAPTER B. BONDS FOR AUDITORIUMS, COLISEUMS,
294-21 AND EXHIBIT BUILDINGS
294-22 Sec. 1473.021. AUTHORITY FOR AUDITORIUM, COLISEUM, OR
294-23 EXHIBIT BUILDING. The commissioners court of a county may purchase
294-24 or construct a building or other permanent improvement to be used
294-25 for:
294-26 (1) a coliseum;
294-27 (2) an auditorium; or
295-1 (3) an annual exhibit of livestock or agricultural,
295-2 horticultural, or mineral products of the county. (V.A.C.S.
295-3 Art. 2372d-2, Sec. 1 (part).)
295-4 Sec. 1473.022. AUTHORITY TO ISSUE BONDS AND IMPOSE TAX.
295-5 (a) The commissioners court of a county may:
295-6 (1) issue bonds to finance the purchase or
295-7 construction of a building or improvement described by Section
295-8 1473.021; and
295-9 (2) impose a tax to pay the bonds.
295-10 (b) The commissioners court shall issue any bonds under this
295-11 subchapter and impose the tax in compliance with the applicable
295-12 provisions of Subtitles A and C. (V.A.C.S. Art. 2372d-2, Sec. 2.)
295-13 Sec. 1473.023. PAYMENT FOR BUILDINGS OR IMPROVEMENTS. A
295-14 county that maintains a permanent improvement fund shall pay for
295-15 each building or improvement described by Section 1473.021 from
295-16 that fund. (V.A.C.S. Art. 2372d-2, Sec. 1 (part).)
295-17 Sec. 1473.024. LOCATION OF BUILDINGS OR IMPROVEMENTS. The
295-18 commissioners court may determine the location in the county for a
295-19 building or improvement described by Section 1473.021. (V.A.C.S.
295-20 Art. 2372d-2, Sec. 1 (part).)
295-21 (Sections 1473.025-1473.050 reserved for expansion)
295-22 SUBCHAPTER C. SECURITIES TO IMPROVE OR REPAIR
295-23 CERTAIN BUILDINGS
295-24 Sec. 1473.051. DEFINITION. In this subchapter, "security"
295-25 means a bond, note, warrant, obligation, or other evidence of
295-26 indebtedness. (New.)
295-27 Sec. 1473.052. AUTHORITY TO ISSUE OBLIGATIONS. (a) The
296-1 commissioners court of a county may issue securities to finance the
296-2 enlargement, alteration, improvement, or repair of a building if:
296-3 (1) the building:
296-4 (A) is not the courthouse;
296-5 (B) is located at the county seat;
296-6 (C) is partly used for public business and
296-7 partly rented for private use; and
296-8 (D) was acquired by the county in settlement of
296-9 an obligation owed the county; and
296-10 (2) money is not available for the enlargement,
296-11 alteration, improvement, or repair.
296-12 (b) In issuing a security under this subchapter, the
296-13 commissioners court may pledge, assign, or encumber the net income
296-14 and revenue from that part of the building that the court finds is
296-15 not, and will not later be, necessary for a public purpose.
296-16 (c) In issuing a security under this subchapter, the
296-17 commissioners court must comply with Chapter 1253, except as this
296-18 subchapter otherwise provides. (V.A.C.S. Art. 2370, Secs. 2
296-19 (part), 4 (part).)
296-20 Sec. 1473.053. OBLIGATIONS NOT PAYABLE FROM TAXES. (a) A
296-21 security issued under this subchapter:
296-22 (1) is not a debt of the county;
296-23 (2) may be a charge only on the revenue that is
296-24 pledged, assigned, or encumbered; and
296-25 (3) may not be included in determining the power of
296-26 the county to issue bonds for any purpose authorized by law.
296-27 (b) Each security issued under this subchapter must include
297-1 the following provision: "The holder of this obligation is not
297-2 entitled to demand payment of this obligation out of any money
297-3 raised by taxation." (V.A.C.S. Art. 2370, Secs. 2 (part), 4
297-4 (part).)
297-5 Sec. 1473.054. RENT. For each part of a building described
297-6 by Section 1473.052(a) that is not used for a public purpose, the
297-7 county shall charge and collect rent in an amount sufficient to:
297-8 (1) pay all operating, maintenance, depreciation,
297-9 replacement, improvement, and interest charges and expenses for the
297-10 building; and
297-11 (2) create an interest and sinking fund sufficient to
297-12 pay any securities issued under this subchapter. (V.A.C.S.
297-13 Art. 2370, Sec. 3 (part).)
297-14 Sec. 1473.055. LIENS ON AND USE OF REVENUE FROM BUILDING.
297-15 (a) Except as provided by Subsections (b) and (c), the income or
297-16 revenue of a building described by Section 1473.052(a) may not be
297-17 used to pay another debt, expense, or obligation of the county
297-18 until the securities secured by the revenue have been finally paid.
297-19 (b) Each expense of operation and maintenance, including all
297-20 salaries, labor, materials, interest, improvements, repairs, and
297-21 extensions necessary to provide efficient service, and each proper
297-22 item of expense, is a first lien against the building's revenue.
297-23 (c) An expense for a repair or extension is a first lien
297-24 only if the commissioners court finds the repair or extension is
297-25 necessary to:
297-26 (1) keep the building in operation and provide
297-27 adequate service; or
298-1 (2) respond to a physical accident or condition that
298-2 would otherwise impair a security issued under this subchapter.
298-3 (V.A.C.S. Art. 2370, Sec. 3 (part).)
298-4 Sec. 1473.056. ELECTION NOT REQUIRED. The commissioners
298-5 court may issue securities under this subchapter without holding an
298-6 election to approve the issuance. (V.A.C.S. Art. 2370, Sec. 4
298-7 (part).)
298-8 (Sections 1473.057-1473.100 reserved for expansion)
298-9 SUBCHAPTER D. BONDS FOR JAILS OR OTHER BUILDINGS
298-10 Sec. 1473.101. AUTHORITY TO ISSUE BONDS AND IMPOSE TAX. (a)
298-11 The commissioners court of a county may:
298-12 (1) issue bonds to pay for the purchase, construction,
298-13 improvement, or equipment of a building or jail under Section
298-14 292.001, Local Government Code, including the purchase or
298-15 improvement of a site for the building or jail; and
298-16 (2) impose a tax under Section 9, Article VIII, Texas
298-17 Constitution, to pay for the bonds.
298-18 (b) The commissioners court of a county that has a
298-19 population of more than 900,000 may:
298-20 (1) issue bonds to pay for the construction and
298-21 equipment of a courthouse or county branch office building,
298-22 including the acquisition of a site for the courthouse or branch
298-23 office building; and
298-24 (2) impose a tax to pay for the bonds.
298-25 (c) Except as otherwise provided by this subchapter, the
298-26 commissioners court shall issue any bonds and impose the tax in
298-27 compliance with the applicable provisions of Subtitles A and C.
299-1 (V.A.C.S. Arts. 725b (part); 2370b, Sec. 3 (part).)
299-2 Sec. 1473.102. ELECTION PROPOSITIONS. The commissioners
299-3 court may submit one or more bond propositions at an election
299-4 relating to the issuance of bonds under this subchapter. Each
299-5 proposition may include one or more of the purposes provided by
299-6 Section 1473.101. (V.A.C.S. Arts. 725b (part); 2370b, Sec. 4.)
299-7 (Sections 1473.103-1473.130 reserved for expansion)
299-8 SUBCHAPTER E. BONDS FOR PARKING FACILITIES
299-9 Sec. 1473.131. DEFINITIONS. In this subchapter:
299-10 (1) "Bond order" means an order authorizing the
299-11 issuance of bonds under this subchapter.
299-12 (2) "Parking facility" means:
299-13 (A) a lot, area, or structure used primarily to
299-14 park motor vehicles;
299-15 (B) the site for the lot, area, or structure;
299-16 and
299-17 (C) equipment used in connection with the
299-18 maintenance and operation of the lot, area, or structure.
299-19 (3) "Trust indenture" means an instrument, including a
299-20 mortgage or deed of trust, that secures bonds issued under this
299-21 subchapter by:
299-22 (A) a pledge of revenue; or
299-23 (B) a pledge of revenue and a mortgage lien on
299-24 property. (V.A.C.S. Art. 2372s, Sec. 2 (part).)
299-25 Sec. 1473.132. AUTHORITY FOR PARKING FACILITIES. The
299-26 commissioners court of a county may construct, enlarge, furnish,
299-27 equip, or operate a parking facility in the vicinity of any
300-1 county-owned facility or building if the court finds the action to
300-2 be in the best interest of the county and the county's residents.
300-3 (V.A.C.S. Art. 2372s, Sec. 1 (part).)
300-4 Sec. 1473.133. OTHER FACILITIES WITHIN PARKING FACILITY.
300-5 The commissioners court may incorporate into a parking facility
300-6 authorized by Section 1473.132:
300-7 (1) a jury assembly room;
300-8 (2) office space;
300-9 (3) a nursery;
300-10 (4) toilet facilities;
300-11 (5) a snack bar; or
300-12 (6) a related facility. (V.A.C.S. Art. 2372s, Sec. 1
300-13 (part).)
300-14 Sec. 1473.134. LEASE OF PARKING FACILITY. The commissioners
300-15 court may lease the parking facility to any person or corporation.
300-16 (V.A.C.S. Art. 2372s, Sec. 1 (part).)
300-17 Sec. 1473.135. AUTHORITY TO ISSUE BONDS. The commissioners
300-18 court by order may issue bonds to provide money to construct,
300-19 enlarge, furnish, or equip a parking facility authorized by this
300-20 subchapter. (V.A.C.S. Art. 2372s, Secs. 3 (part), 4 (part).)
300-21 Sec. 1473.136. PLEDGE OF REVENUE; TAX. (a) Bonds issued
300-22 under this subchapter must be payable from and secured by a pledge
300-23 of:
300-24 (1) the net revenue of the parking facility; and
300-25 (2) any other revenue incident to the ownership of the
300-26 parking facility, including money received from a lease of the
300-27 facility.
301-1 (b) The commissioners court may also provide for the bonds
301-2 to be payable from and secured by the imposition of an ad valorem
301-3 tax. The tax may not exceed two and one-half cents on each $100
301-4 valuation of taxable property in the county. (V.A.C.S. Art. 2372s,
301-5 Sec. 3 (part).)
301-6 Sec. 1473.137. BONDS NOT PAYABLE FROM TAXES. (a) Except as
301-7 provided by Subsection (b), each bond issued under this subchapter
301-8 must include the following provision: "The holder of this
301-9 obligation is not entitled to demand payment of this obligation
301-10 from money raised by taxation."
301-11 (b) A bond may not contain the provision specified by
301-12 Subsection (a) if the commissioners court has provided for the
301-13 payment of the bond from tax revenue under Section 1473.136(b).
301-14 (V.A.C.S. Art. 2372s, Secs. 3 (part), 8 (part).)
301-15 Sec. 1473.138. MATURITY. A bond issued under this
301-16 subchapter must mature within 40 years. (V.A.C.S. Art. 2372s, Sec.
301-17 4 (part).)
301-18 Sec. 1473.139. SIGNATURES; REGISTRATION BY COUNTY TREASURER.
301-19 A bond issued under this subchapter must be:
301-20 (1) signed by the county judge;
301-21 (2) countersigned by the county clerk; and
301-22 (3) registered by the county treasurer. (V.A.C.S.
301-23 Art. 2372s, Sec. 4 (part).)
301-24 Sec. 1473.140. ADDITIONAL BONDS. (a) The commissioners
301-25 court may issue bonds under this subchapter that are a junior lien
301-26 on the net revenue or property unless the bond order or trust
301-27 indenture prohibits their issuance.
302-1 (b) The commissioners court may issue parity bonds under
302-2 conditions in the bond order or trust indenture. (V.A.C.S.
302-3 Art. 2372s, Sec. 5.)
302-4 Sec. 1473.141. SALE OF BONDS. The county may sell the bonds
302-5 under terms the commissioners court determines to be the most
302-6 advantageous and reasonably obtainable. (V.A.C.S. Art. 2372s, Sec.
302-7 4 (part).)
302-8 Sec. 1473.142. USE OF BOND PROCEEDS. The commissioners
302-9 court may set aside from the bond proceeds:
302-10 (1) money to pay interest on the bonds; and
302-11 (2) money in the amount the commissioners court
302-12 estimates to be required for operating expenses until the parking
302-13 facility becomes sufficiently operational. (V.A.C.S. Art. 2372s,
302-14 Sec. 6.)
302-15 Sec. 1473.143. RENTS AND RATES FOR SERVICES. The
302-16 commissioners court shall charge rents or rates for services of the
302-17 parking facility and shall use any other revenue generated by the
302-18 parking facility so that the revenues of the facility are
302-19 sufficient to:
302-20 (1) pay the expenses of owning, operating, and
302-21 maintaining the facility;
302-22 (2) pay when due the principal of and interest on the
302-23 bonds; and
302-24 (3) create and maintain a bond reserve fund and other
302-25 funds as provided by the bond order or trust indenture. (V.A.C.S.
302-26 Art. 2372s, Sec. 9 (part).)
302-27 Sec. 1473.144. REFUNDING BONDS. (a) The commissioners
303-1 court may issue bonds to refund outstanding bonds issued under this
303-2 subchapter.
303-3 (b) The refunding bonds may be issued in the manner provided
303-4 by this subchapter for other bonds.
303-5 (c) The refunding bonds may be issued to be exchanged by the
303-6 comptroller or to be sold, with the bond proceeds applied to the
303-7 payment of outstanding bonds. (V.A.C.S. Art. 2372s, Sec. 7.)
303-8 Sec. 1473.145. PROVISIONS FOR OPERATION OF PARKING FACILITY.
303-9 The bond order or trust indenture may prescribe systems, methods,
303-10 routines, or procedures for the operation of the parking facility.
303-11 (V.A.C.S. Art. 2372s, Sec. 9 (part).)
303-12 Sec. 1473.146. ELECTION NOT REQUIRED. The commissioners
303-13 court may issue bonds under this subchapter without holding an
303-14 election to approve the issuance. (V.A.C.S. Art. 2372s, Sec. 4
303-15 (part).)
303-16 (Sections 1473.147-1473.170 reserved for expansion)
303-17 SUBCHAPTER F. BONDS FOR PUBLIC HEALTH ADMINISTRATION
303-18 BUILDINGS IN CERTAIN COUNTIES
303-19 Sec. 1473.171. APPLICABILITY OF SUBCHAPTER. This subchapter
303-20 applies only to a county that:
303-21 (1) contains a municipality with a population of more
303-22 than 275,000; and
303-23 (2) before April 27, 1965, ordered an election for the
303-24 issuance of bonds for:
303-25 (A) erecting a public health administration
303-26 building; and
303-27 (B) acquiring a site and equipment for a public
304-1 health administration building. (V.A.C.S. Art. 2370d, Secs. 1, 2
304-2 (part).)
304-3 Sec. 1473.172. AUTHORITY FOR PUBLIC HEALTH ADMINISTRATION
304-4 BUILDING. If the bonds were approved at an election ordered before
304-5 April 27, 1965, the county alone or jointly with a municipality
304-6 located in the county, may:
304-7 (1) erect, maintain, expand, or repair a public health
304-8 administration building; or
304-9 (2) acquire a site or equipment for a public health
304-10 administration building. (V.A.C.S. Art. 2370d, Sec. 3 (part).)
304-11 Sec. 1473.173. AUTHORITY TO ISSUE BONDS. (a) If the bonds
304-12 were approved at an election ordered before April 27, 1965, the
304-13 county may issue general obligation bonds to finance:
304-14 (1) the erection, maintenance, expansion, and repair
304-15 of a building authorized by Section 1473.172; and
304-16 (2) the acquisition of a site and equipment for the
304-17 building.
304-18 (b) The commissioners court shall issue any bonds under this
304-19 subchapter in compliance with the applicable provisions of
304-20 Subtitles A and C. (V.A.C.S. Art. 2370d, Sec. 3 (part).)
304-21 Sec. 1473.174. COST SHARING AND INTEREST IN JOINT PROJECTS.
304-22 A county and a municipality that jointly erect a public health
304-23 administration building under this subchapter shall share the cost
304-24 of, and shall each have an undivided interest in, the building:
304-25 (1) as agreed by the governing bodies of the county
304-26 and the municipality; and
304-27 (2) as authorized by orders or ordinances adopted by
305-1 the governing bodies of the county and the municipality. (V.A.C.S.
305-2 Art. 2370d, Sec. 3 (part).)
305-3 Sec. 1473.175. USE OF JOINT PROJECT BUILDING. (a) Except
305-4 as provided by Subsection (b), a public health administration
305-5 building erected jointly by a county and a municipality under this
305-6 subchapter may be:
305-7 (1) used for any purpose that will contribute to the
305-8 health of the residents of the county and municipality; and
305-9 (2) occupied and used by the county and municipality
305-10 jointly.
305-11 (b) The public health administration building may not be
305-12 used for hospital purposes. (V.A.C.S. Art. 2370d, Sec. 3 (part).)
305-13 (Sections 1473.176-1473.190 reserved for expansion)
305-14 SUBCHAPTER G. BONDS FOR WORKHOUSES AND FARMS IN COUNTIES WITH A
305-15 POPULATION OF MORE THAN 900,000
305-16 Sec. 1473.191. APPLICABILITY OF SUBCHAPTER. This subchapter
305-17 applies only to a county with a population of more than 900,000.
305-18 (V.A.C.S. Art. 2370c, Sec. 1 (part).)
305-19 Sec. 1473.192. AUTHORITY TO ISSUE BONDS AND IMPOSE TAX. (a)
305-20 The commissioners court of a county may:
305-21 (1) issue bonds to pay for the acquisition,
305-22 construction, or equipment of a county workhouse or county farm to
305-23 be used to confine or to use the labor of county prisoners,
305-24 including the acquisition of a site for the workhouse or farm; and
305-25 (2) impose a tax to pay the bonds.
305-26 (b) A county that maintains a permanent improvement fund
305-27 shall deposit the tax to the credit of that fund to pay for an
306-1 action taken under Subsection (a)(1).
306-2 (c) The commissioners court shall issue any bonds under this
306-3 subchapter and impose the tax in compliance with the applicable
306-4 provisions of Subtitles A and C. (V.A.C.S. Art. 2370c, Sec. 1
306-5 (part).)
306-6 Sec. 1473.193. ELECTION. (a) The commissioners court may
306-7 issue bonds under this subchapter only if more than a majority of
306-8 the qualified voters voting at an election held for that purpose
306-9 approve the bonds.
306-10 (b) Subsection (a) does not apply to refunding bonds.
306-11 (V.A.C.S. Art. 2370c, Sec. 1 (part).)
306-12 Sec. 1473.194. ELECTION PROPOSITION. Bonds to be issued
306-13 under this subchapter may be submitted in a single proposition at
306-14 the bond election. (V.A.C.S. Art. 2370c, Sec. 1 (part).)
306-15 Sec. 1473.195. NOTICE OF ELECTION. (a) In addition to the
306-16 notice required by Section 4.003(c), Election Code, notice of an
306-17 election under this subchapter shall be given by publication in a
306-18 newspaper of general circulation in the county.
306-19 (b) The notice must contain a substantial copy of the
306-20 election order.
306-21 (c) The notice must be published on the same day in each of
306-22 two consecutive weeks. The first publication must be not later
306-23 than the 15th day before the date of the election. (V.A.C.S.
306-24 Art. 2370c, Sec. 1 (part).)
306-25 (Sections 1473.196-1473.230 reserved for expansion)
306-26 SUBCHAPTER H. CERTIFICATES OF INDEBTEDNESS FOR CRIME DETECTION
306-27 FACILITIES IN COUNTIES WITH POPULATION OF MORE THAN 900,000
307-1 Sec. 1473.231. APPLICABILITY OF SUBCHAPTER. This subchapter
307-2 applies only to a county with a population of more than 900,000.
307-3 (V.A.C.S. Art. 2370c-1, Sec. 1 (part).)
307-4 Sec. 1473.232. AUTHORITY TO OPERATE CRIME DETECTION
307-5 FACILITIES; FEES, CHARGES, AND EXPENSES. (a) The commissioners
307-6 court of a county may:
307-7 (1) operate and maintain the county's crime detection
307-8 facilities; and
307-9 (2) impose and collect fees or charges for services
307-10 performed or information provided to others in the use of the
307-11 facilities.
307-12 (b) The commissioners court shall pay the operation and
307-13 maintenance expenses of the facilities from the fees or charges or
307-14 other available county funds. (V.A.C.S. Art. 2370c-1, Sec. 4.)
307-15 Sec. 1473.233. AUTHORITY TO ISSUE CERTIFICATES OF
307-16 INDEBTEDNESS AND IMPOSE TAX. (a) The commissioners court by order
307-17 may issue certificates of indebtedness to finance the acquisition,
307-18 construction, repair, improvement, or equipment of a crime
307-19 detection facility, including the acquisition of any property in
307-20 connection with the facility.
307-21 (b) The commissioners court annually shall impose and pledge
307-22 to the payment of the certificates an ad valorem tax sufficient to
307-23 pay when due the principal of and interest on the certificates.
307-24 (V.A.C.S. Art. 2370c-1, Sec. 1 (part).)
307-25 Sec. 1473.234. MATURITY. A certificate of indebtedness
307-26 issued under this subchapter must mature not later than 40 years
307-27 after its date. (V.A.C.S. Art. 2370c-1, Sec. 1 (part).)
308-1 Sec. 1473.235. ELECTION NOT REQUIRED. The commissioners
308-2 court may issue certificates of indebtedness under this subchapter
308-3 without holding an election to approve the issuance. (V.A.C.S.
308-4 Art. 2370c-1, Sec. 1 (part).)
308-5 Sec. 1473.236. LIMIT ON AMOUNT OF CERTIFICATES. The
308-6 aggregate principal amount of certificates of indebtedness issued
308-7 under this subchapter may not exceed $1.5 million. (V.A.C.S.
308-8 Art. 2370c-1, Sec. 1 (part).)
308-9 (Sections 1473.237-1473.260 reserved for expansion)
308-10 SUBCHAPTER I. BONDS FOR AUDITORIUM OR COLISEUM PARKING FACILITIES
308-11 IN COUNTIES WITH POPULATION OF MORE THAN ONE MILLION
308-12 Sec. 1473.261. APPLICABILITY OF SUBCHAPTER. This subchapter
308-13 applies only to a county that:
308-14 (1) has a population of more than one million; and
308-15 (2) has issued bonds to construct buildings or other
308-16 permanent improvements for a coliseum or auditorium in the county.
308-17 (V.A.C.S. Art. 2372d-4, Sec. 1 (part).)
308-18 Sec. 1473.262. DEFINITIONS. In this subchapter:
308-19 (1) "Bond order" means an order authorizing the
308-20 issuance of revenue bonds under this subchapter.
308-21 (2) "Parking facility" means:
308-22 (A) a lot, area, or structure used to park motor
308-23 vehicles;
308-24 (B) the site for the lot, area, or structure;
308-25 and
308-26 (C) equipment used in connection with
308-27 maintenance and operation of the lot, area, or structure.
309-1 (3) "Trust indenture" means an instrument, including a
309-2 mortgage or deed of trust, that secures bonds issued under this
309-3 subchapter by:
309-4 (A) a pledge of revenue; or
309-5 (B) a pledge of revenue and a mortgage lien on
309-6 property. (V.A.C.S. Art. 2372d-4, Sec. 2 (part).)
309-7 Sec. 1473.263. AUTHORITY FOR PARKING FACILITY. The
309-8 commissioners court of the county may construct, enlarge, furnish,
309-9 equip, and operate a parking facility in the vicinity of a coliseum
309-10 or auditorium if the court finds the action to be in the best
309-11 interest of the county and the county's residents. (V.A.C.S.
309-12 Art. 2372d-4, Sec. 1 (part).)
309-13 Sec. 1473.264. LEASE OF PARKING FACILITY. The commissioners
309-14 court may lease the parking facility to any person or corporation.
309-15 (V.A.C.S. Art. 2372d-4, Sec. 1 (part).)
309-16 Sec. 1473.265. AUTHORITY TO ISSUE REVENUE BONDS. The
309-17 commissioners court by order or trust indenture may issue revenue
309-18 bonds to provide money to construct, enlarge, furnish, or equip a
309-19 parking facility authorized by this subchapter. (V.A.C.S.
309-20 Art. 2372d-4, Secs. 3 (part), 4 (part).)
309-21 Sec. 1473.266. PLEDGE OF REVENUE. Bonds issued under this
309-22 subchapter must be payable from, and secured by a pledge of, the
309-23 net revenue of the county's operation of the parking facility. The
309-24 bonds may be payable from any other revenue incident to the
309-25 ownership of the parking facility, including money received from a
309-26 lease of the facility. (V.A.C.S. Art. 2372d-4, Sec. 3 (part).)
309-27 Sec. 1473.267. BONDS NOT PAYABLE FROM TAXES. Each bond
310-1 issued under this subchapter must include the following provision:
310-2 "The holder of this obligation is not entitled to demand payment of
310-3 this obligation from money raised by taxation." (V.A.C.S.
310-4 Art. 2372d-4, Sec. 8 (part).)
310-5 Sec. 1473.268. MATURITY. A bond issued under this
310-6 subchapter must mature within 40 years. (V.A.C.S. Art. 2372d-4,
310-7 Sec. 4 (part).)
310-8 Sec. 1473.269. SIGNATURES; REGISTRATION BY COUNTY TREASURER.
310-9 A bond issued under this subchapter must be:
310-10 (1) signed by the county judge;
310-11 (2) countersigned by the county clerk; and
310-12 (3) registered by the county treasurer. (V.A.C.S.
310-13 Art. 2372d-4, Sec. 4 (part).)
310-14 Sec. 1473.270. ADDITIONAL BONDS. (a) The commissioners
310-15 court may issue bonds under this subchapter that are a junior lien
310-16 on the net revenue or property unless the bond order or trust
310-17 indenture prohibits their issuance.
310-18 (b) The commissioners court may issue parity bonds under
310-19 conditions in the bond order or trust indenture. (V.A.C.S.
310-20 Art. 2372d-4, Sec. 5.)
310-21 Sec. 1473.271. SALE OF BONDS. The county may sell the bonds
310-22 under terms the commissioners court determines to be the most
310-23 advantageous and reasonably obtainable. (V.A.C.S. Art. 2372d-4,
310-24 Sec. 4 (part).)
310-25 Sec. 1473.272. USE OF BOND PROCEEDS. (a) The commissioners
310-26 court may set aside from the bond proceeds:
310-27 (1) money to pay interest on the bonds; and
311-1 (2) money in the amount the commissioners court
311-2 estimates to be required for operating expenses until the parking
311-3 facility becomes sufficiently operational.
311-4 (b) The commissioners court may not set aside money under
311-5 this section in an amount that exceeds the amount of money
311-6 necessary to cover interest and operating expenses for the
311-7 estimated period of construction and the first two years of
311-8 operation, less any earnings during that time. (V.A.C.S.
311-9 Art. 2372d-4, Sec. 6.)
311-10 Sec. 1473.273. RENTS AND RATES FOR SERVICES. (a) The
311-11 commissioners court shall charge rates for services of the
311-12 facility, including rents under a lease, and shall use any other
311-13 revenue generated by the facility so that the revenues of the
311-14 facility are sufficient to:
311-15 (1) pay the expenses of owning, operating, and
311-16 maintaining the facility;
311-17 (2) pay the principal of and interest on the bonds
311-18 when due; and
311-19 (3) create and maintain a bond reserve fund and other
311-20 funds as provided by the bond order or trust indenture.
311-21 (b) The county may not provide free use of the parking
311-22 facility to any person, firm, or corporation, except that the
311-23 county and any county agency or department may make free use of the
311-24 facility after bonds issued under this subchapter have been fully
311-25 paid.
311-26 (c) The commissioners court may provide, in an order
311-27 authorizing the bonds or in a lease of the parking facility, for
312-1 minimum periodic payments from any county resource to the bond
312-2 interest and sinking fund or to the lessee for county or county
312-3 agency or department use of any part of the parking facility
312-4 designated for county or county agency or department use.
312-5 (V.A.C.S. Art. 2372d-4, Sec. 9 (part).)
312-6 Sec. 1473.274. REFUNDING BONDS. (a) The commissioners
312-7 court may issue bonds to refund outstanding bonds issued under this
312-8 subchapter.
312-9 (b) The refunding bonds may be issued in the manner provided
312-10 by this subchapter for other bonds.
312-11 (c) The refunding bonds may be issued to be exchanged by the
312-12 comptroller or to be sold, with the bond proceeds applied to the
312-13 payment of outstanding bonds. (V.A.C.S. Art. 2372d-4, Sec. 7.)
312-14 Sec. 1473.275. PROVISIONS FOR OPERATION OF PARKING FACILITY.
312-15 The bond order or trust indenture may prescribe systems, methods,
312-16 routines, or procedures for the operation of the parking facility.
312-17 (V.A.C.S. Art. 2372d-4, Sec. 9 (part).)
312-18 Sec. 1473.276. ELECTION NOT REQUIRED. The commissioners
312-19 court may issue bonds under this subchapter without holding an
312-20 election to approve the issuance. (V.A.C.S. Art. 2372d-4, Sec. 4
312-21 (part).)
312-22 CHAPTER 1474. BONDS FOR COUNTY WATER IMPROVEMENTS
312-23 SUBCHAPTER A. PURPOSES FOR WHICH BONDS AND NOTES MAY BE ISSUED
312-24 Sec. 1474.001. AUTHORITY TO ISSUE BONDS FOR IRRIGATION
312-25 PURPOSES
312-26 Sec. 1474.002. AUTHORITY TO ISSUE ADDITIONAL BONDS FOR
312-27 IRRIGATION PURPOSES
313-1 Sec. 1474.003. AUTHORITY TO ISSUE BONDS OR NOTES FOR
313-2 REPAIR PURPOSES
313-3 Sec. 1474.004. AUTHORITY TO ISSUE BONDS FOR OTHER
313-4 WATER-RELATED IMPROVEMENTS
313-5 (Sections 1474.005-1474.050 reserved for expansion)
313-6 SUBCHAPTER B. ELECTION PROVISIONS
313-7 Sec. 1474.051. BONDS FOR MORE THAN ONE PURPOSE
313-8 Sec. 1474.052. PETITION FOR BOND ELECTION
313-9 Sec. 1474.053. REQUIREMENT TO STATE CHARACTERISTICS OF
313-10 BONDS
313-11 Sec. 1474.054. ELECTION FOR ISSUING BONDS
313-12 Sec. 1474.055. ORDER ISSUING BONDS AND IMPOSING TAX
313-13 Sec. 1474.056. ELECTION FOR ISSUING NOTES:
313-14 ORDER AND NOTICE
313-15 Sec. 1474.057. ELECTION FOR ISSUING NOTES:
313-16 BALLOT AND RETURNS
313-17 Sec. 1474.058. APPROVAL AND ISSUANCE OF NOTES
313-18 (Sections 1474.059-1474.100 reserved for expansion)
313-19 SUBCHAPTER C. LIMITATIONS AND PROCEDURES
313-20 Sec. 1474.101. LIMIT ON DEBT
313-21 Sec. 1474.102. COURT ACTION TO DETERMINE VALIDITY OF BONDS
313-22 Sec. 1474.103. FORM OF BONDS AND NOTES; SIGNATURES;
313-23 REGISTRATION BY COUNTY CLERK
313-24 Sec. 1474.104. EXCHANGING BONDS FOR PROPERTY OR WORK
313-25 Sec. 1474.105. SALE OR EXCHANGE OF BONDS AND NOTES; DELIVERY
313-26 OF PROCEEDS
313-27 Sec. 1474.106. IMPOSITION OF TAX; SEPARATE FUND
314-1 (Sections 1474.107-1474.150 reserved for expansion)
314-2 SUBCHAPTER D. RELATED IRRIGATION POWERS OF COUNTIES
314-3 Sec. 1474.151. COUNTY POWERS
314-4 Sec. 1474.152. CONTROL OF COUNTY IRRIGATION SYSTEM
314-5 CHAPTER 1474. BONDS FOR COUNTY WATER IMPROVEMENTS
314-6 SUBCHAPTER A. PURPOSES FOR WHICH BONDS AND NOTES MAY BE ISSUED
314-7 Sec. 1474.001. AUTHORITY TO ISSUE BONDS FOR IRRIGATION
314-8 PURPOSES. A county may issue bonds in an amount not to exceed
314-9 one-fourth of the assessed value of the real property in the county
314-10 for:
314-11 (1) constructing, purchasing, or maintaining a pool,
314-12 lake, reservoir, dam, canal, or waterway for irrigation purposes or
314-13 to aid in irrigation;
314-14 (2) enlarging an improvement described by Subdivision
314-15 (1); or
314-16 (3) paying expenses incidental to the construction,
314-17 purchase, maintenance, or enlargement. (V.A.C.S. Art. 803 (part).)
314-18 Sec. 1474.002. AUTHORITY TO ISSUE ADDITIONAL BONDS FOR
314-19 IRRIGATION PURPOSES. (a) The commissioners court may order
314-20 additional bonds to be issued in accordance with this chapter if:
314-21 (1) bonds have been authorized or issued under this
314-22 chapter;
314-23 (2) the commissioners court considers it necessary to
314-24 issue additional bonds to change the proposed improvement, to
314-25 purchase or construct further improvements, to purchase additional
314-26 property to implement the purposes of the project, or to best serve
314-27 the interests of the county; and
315-1 (3) the additional bonds are approved at an election.
315-2 (b) The commissioners court shall enter its findings under
315-3 Subsection (a) in the record of the court's proceedings.
315-4 (c) The commissioners court shall hold the election on the
315-5 additional bonds in accordance with this chapter. (V.A.C.S.
315-6 Art. 809.)
315-7 Sec. 1474.003. AUTHORITY TO ISSUE BONDS OR NOTES FOR REPAIR
315-8 PURPOSES. (a) If a county has constructed or purchased an
315-9 improvement under this chapter that has been damaged and it is
315-10 necessary to raise money to repair the damage, the county may issue
315-11 bonds or notes under this chapter to raise the money.
315-12 (b) The term of a note issued under this chapter may not
315-13 exceed 20 years. (V.A.C.S. Art. 810.)
315-14 Sec. 1474.004. AUTHORITY TO ISSUE BONDS FOR OTHER
315-15 WATER-RELATED IMPROVEMENTS. A county may issue bonds for the
315-16 improvement of a river, creek, or stream to prevent overflow and
315-17 for all necessary drainage purposes in connection with that
315-18 purpose. (V.A.C.S. Art. 821 (part).)
315-19 (Sections 1474.005-1474.050 reserved for expansion)
315-20 SUBCHAPTER B. ELECTION PROVISIONS
315-21 Sec. 1474.051. BONDS FOR MORE THAN ONE PURPOSE. Bonds
315-22 proposed to be issued for any two or more of the purposes stated in
315-23 this chapter shall be treated as being for one purpose and may be
315-24 voted on as one proposition. (V.A.C.S. Art. 821 (part).)
315-25 Sec. 1474.052. PETITION FOR BOND ELECTION. If at least 50
315-26 voters who reside in and own taxable property in a county petition
315-27 the commissioners court for an election on the question of issuing
316-1 bonds under Section 1474.001 and either Section 52, Article III, or
316-2 Section 59, Article XVI, Texas Constitution, the commissioners
316-3 court shall, at a regular or special session of the court, order an
316-4 election to determine whether the county shall:
316-5 (1) issue bonds for the purposes stated in Section
316-6 1474.001; and
316-7 (2) impose a tax on the property in the county for the
316-8 purpose of paying the interest on the bonds and providing a sinking
316-9 fund for the redemption of the bonds. (V.A.C.S. Art. 804.)
316-10 Sec. 1474.053. REQUIREMENT TO STATE CHARACTERISTICS OF
316-11 BONDS. (a) Except as provided by Subsection (b), the petition for
316-12 the election, the election order, and the notice of the election
316-13 must state:
316-14 (1) the amount of bonds to be issued;
316-15 (2) the rate of interest of the bonds;
316-16 (3) the times at which interest on the bonds is
316-17 payable; and
316-18 (4) the date of maturity of the bonds.
316-19 (b) The election order and the notice of the election may
316-20 provide that:
316-21 (1) the bonds may bear interest at a rate to be set by
316-22 the commissioners court;
316-23 (2) any interest may be paid at times set by the
316-24 commissioners court; and
316-25 (3) the bonds may mature at the times set by the
316-26 commissioners court. (V.A.C.S. Art. 805.)
316-27 Sec. 1474.054. ELECTION FOR ISSUING BONDS. (a) The general
317-1 election laws of this state govern the election except as provided
317-2 by this section.
317-3 (b) A two-thirds vote of the qualified voters of the county
317-4 voting in the election is necessary to approve the proposition.
317-5 (c) The commissioners court shall furnish the ballots for
317-6 each polling place. The ballots shall be printed to permit voting
317-7 for or against the proposition: "The issuance of bonds for (purpose
317-8 of the bonds) and the imposition of a tax to pay for the bonds."
317-9 (d) In addition to the requirements provided by Chapter 3,
317-10 Election Code, the election order shall:
317-11 (1) designate one or more polling places in each
317-12 voting precinct in the county where the election will be held; and
317-13 (2) name a presiding judge, a judge, and two clerks
317-14 for each polling place or, if the court considers it necessary,
317-15 name more election officers for any polling place.
317-16 (e) A copy of the election order signed by the county judge
317-17 serves as proper notice of the election.
317-18 (f) In addition to the notice required by Section 4.003(c),
317-19 Election Code, a copy of the election order shall be:
317-20 (1) posted at each polling place and at the courthouse
317-21 door before the 20th day before the date of the election; and
317-22 (2) published in a newspaper published in the county
317-23 for three consecutive weeks before the date of the election, with
317-24 the first publication before the 21st day before the date of the
317-25 election.
317-26 (g) After preparing the returns of the election, the
317-27 presiding judge at each polling place shall deliver the returns to
318-1 the county clerk, who shall keep them in a safe place and deliver
318-2 them to the commissioners court. After canvassing the returns, the
318-3 commissioners court shall declare the result of the election by an
318-4 order entered in the minutes of the court. (V.A.C.S. Art. 807.)
318-5 Sec. 1474.055. ORDER ISSUING BONDS AND IMPOSING TAX. (a)
318-6 If the issuance of the bonds and imposition of the tax are approved
318-7 at the election, the commissioners court by order entered at a
318-8 regular term of the court shall:
318-9 (1) direct the issuance of the bonds;
318-10 (2) provide for the annual imposition of a tax
318-11 sufficient to pay the current interest on the bonds and to pay the
318-12 principal of the bonds at maturity; and
318-13 (3) state the place or places at which the interest is
318-14 payable.
318-15 (b) The commissioners court shall annually impose a tax
318-16 sufficient to pay the current interest on the bonds and to pay the
318-17 principal of the bonds at maturity. (V.A.C.S. Arts. 808, 819
318-18 (part).)
318-19 Sec. 1474.056. ELECTION FOR ISSUING NOTES: ORDER AND NOTICE.
318-20 (a) Before notes are issued under Section 1474.003, the
318-21 commissioners court shall order and give notice of an election in
318-22 the manner required for an election on a bond issue.
318-23 (b) In addition to the requirements provided by Chapters 3
318-24 and 4, Election Code, the order and notice shall state:
318-25 (1) the purpose for which the notes are to be issued;
318-26 (2) the duration of the notes;
318-27 (3) the rate of interest; and
319-1 (4) the polling places for the election.
319-2 (c) The order and notice may state the manner in which the
319-3 notes mature. (V.A.C.S. Arts. 811, 813 (part).)
319-4 Sec. 1474.057. ELECTION FOR ISSUING NOTES: BALLOT AND
319-5 RETURNS. (a) At an election to issue notes, the ballot shall be
319-6 printed to permit voting for or against the proposition: "The
319-7 issuance of notes for (purpose of the notes)."
319-8 (b) The commissioners court shall hold the election in the
319-9 manner provided by this chapter for a bond election. (V.A.C.S.
319-10 Art. 812 (part).)
319-11 Sec. 1474.058. APPROVAL AND ISSUANCE OF NOTES. (a) If at
319-12 least two-thirds of the votes received at the election favor
319-13 issuing the notes, the commissioners court may issue and sell the
319-14 notes for the benefit of the county and for the purposes
319-15 authorized.
319-16 (b) The commissioners court by order shall:
319-17 (1) direct the issuance of the notes; and
319-18 (2) provide for the annual imposition of a tax
319-19 sufficient to pay the current interest and provide a sinking fund
319-20 for the payment of the principal of the notes at maturity.
319-21 (V.A.C.S. Arts. 812 (part), 813 (part).)
319-22 (Sections 1474.059-1474.100 reserved for expansion)
319-23 SUBCHAPTER C. LIMITATIONS AND PROCEDURES
319-24 Sec. 1474.101. LIMIT ON DEBT. (a) If a county contains one
319-25 or more districts organized under Section 52, Article III, or
319-26 Section 59, Article XVI, Texas Constitution, the ratio of the debt
319-27 of a district to the assessed value of real property in the
320-1 district, expressed as a percentage, together with the ratio of the
320-2 proposed county debt to the assessed value of real property in the
320-3 county, expressed as a percentage, may not exceed one-fourth of the
320-4 assessed value of real property in the county or in the district.
320-5 (b) The assessed value of real property in a county or in a
320-6 district is computed according to the most recent appraisal roll of
320-7 the county or district, as appropriate. (V.A.C.S. Art. 806.)
320-8 Sec. 1474.102. COURT ACTION TO DETERMINE VALIDITY OF BONDS.
320-9 (a) A county that proposes to issue bonds under this chapter shall
320-10 bring an action in a district court in the county or in a district
320-11 court in Travis County to determine the validity of the bonds.
320-12 (b) The action shall be brought in the manner provided by
320-13 Subchapter L, Chapter 55, Water Code, for the validation of water
320-14 improvement district bonds. Each provision of that subchapter that
320-15 is applicable to the action, including provisions applicable to the
320-16 duties of the attorney general and comptroller, the judgment to be
320-17 rendered, the effect of the judgment, and other matters connected
320-18 to the action, applies to the validation of the county bonds.
320-19 (V.A.C.S. Art. 817.)
320-20 Sec. 1474.103. FORM OF BONDS AND NOTES; SIGNATURES;
320-21 REGISTRATION BY COUNTY CLERK. (a) Each bond or note issued under
320-22 this chapter shall be issued in the name of the county.
320-23 (b) A bond shall be designated "________ County Water
320-24 Improvement Bond." A note shall be designated "_______ County
320-25 Water Improvement Note."
320-26 (c) Each bond or note issued under this chapter must be:
320-27 (1) signed by the county judge;
321-1 (2) countersigned by the county clerk; and
321-2 (3) registered by the county treasurer. (V.A.C.S.
321-3 Art. 814 (part).)
321-4 Sec. 1474.104. EXCHANGING BONDS FOR PROPERTY OR WORK. The
321-5 commissioners court may exchange bonds issued under this chapter:
321-6 (1) for property; or
321-7 (2) in payment of the contract price for work to be
321-8 done in the construction of the improvements. (V.A.C.S. Art. 815.)
321-9 Sec. 1474.105. SALE OR EXCHANGE OF BONDS AND NOTES; DELIVERY
321-10 OF PROCEEDS. (a) The commissioners court shall sell or exchange
321-11 the bonds or notes issued under this chapter on the best terms.
321-12 (b) When the bonds or notes are sold, the proceeds shall
321-13 immediately be delivered to the county treasurer. (V.A.C.S.
321-14 Art. 816 (part).)
321-15 Sec. 1474.106. IMPOSITION OF TAX; SEPARATE FUND. (a) A tax
321-16 imposed under Section 1474.055(b) shall be imposed as other county
321-17 taxes.
321-18 (b) The proceeds of the tax are a separate fund that may not
321-19 be used for a purpose other than a purpose specified by Section
321-20 1474.055(b). (V.A.C.S. Art. 819 (part).)
321-21 (Sections 1474.107-1474.150 reserved for expansion)
321-22 SUBCHAPTER D. RELATED IRRIGATION POWERS OF COUNTIES
321-23 Sec. 1474.151. COUNTY POWERS. A county acting under this
321-24 chapter may:
321-25 (1) own or construct a reservoir, dam, levee, well,
321-26 canal, or other improvement;
321-27 (2) acquire a necessary right-of-way or other land by
322-1 purchase or by condemnation in the manner provided by Chapter 21,
322-2 Property Code; or
322-3 (3) perform any other work or construct or acquire any
322-4 other improvement required for the proper and efficient irrigation
322-5 of land in the county. (V.A.C.S. Art. 818.)
322-6 Sec. 1474.152. CONTROL OF COUNTY IRRIGATION SYSTEM. (a)
322-7 The commissioners court shall control and manage the affairs and
322-8 operation of the county's irrigation system to the same extent and
322-9 in the manner as the board of directors of a water improvement
322-10 district controls and manages a water improvement district under
322-11 Chapter 49, Water Code.
322-12 (b) The provisions of Chapter 49, Water Code, that apply to
322-13 the control and management of the affairs and operation of a water
322-14 improvement district also apply to the control and management of
322-15 the affairs and operation of the county's irrigation system.
322-16 (V.A.C.S. Art. 820.)
322-17 CHAPTER 1475. COUNTY BONDS AND WARRANTS FOR NAVIGATION
322-18 PURPOSES
322-19 SUBCHAPTER A. RIGHT-OF-WAY FOR FEDERAL NAVIGATION PROJECTS
322-20 Sec. 1475.001. PURPOSE; LIBERAL CONSTRUCTION
322-21 Sec. 1475.002. AUTHORITY TO ACQUIRE RIGHT-OF-WAY AND DUMPING
322-22 PRIVILEGES
322-23 Sec. 1475.003. AUTHORITY TO ISSUE BONDS AND IMPOSE TAXES
322-24 Sec. 1475.004. ELECTION
322-25 Sec. 1475.005. DUTIES OF COMMISSIONERS COURT AFTER VOTER
322-26 APPROVAL
322-27 Sec. 1475.006. INVESTMENT OF SINKING FUND
323-1 Sec. 1475.007. ISSUANCE OF BONDS AND WARRANTS; USE OF
323-2 PROCEEDS
323-3 (Sections 1475.008-1475.050 reserved for expansion)
323-4 SUBCHAPTER B. PROPERTY FOR INTRACOASTAL CANAL PURPOSES
323-5 Sec. 1475.051. APPLICABILITY OF SUBCHAPTER
323-6 Sec. 1475.052. AUTHORITY TO ACQUIRE LAND AND CERTAIN INTERESTS
323-7 IN LAND FOR CANAL PURPOSES
323-8 Sec. 1475.053. AUTHORITY TO ISSUE TIME WARRANTS
323-9 Sec. 1475.054. APPLICABILITY OF OTHER LAWS TO CONDEMNATION
323-10 PROCEEDINGS
323-11 Sec. 1475.055. EFFECT OF APPEAL
323-12 CHAPTER 1475. COUNTY BONDS AND WARRANTS FOR NAVIGATION PURPOSES
323-13 SUBCHAPTER A. RIGHT-OF-WAY FOR FEDERAL NAVIGATION PROJECTS
323-14 Sec. 1475.001. PURPOSE; LIBERAL CONSTRUCTION. (a) The only
323-15 purpose of this subchapter is to grant counties in this state the
323-16 authority to issue bonds or warrants or to otherwise lend their
323-17 credit for the acquisition and conveyance to the United States of
323-18 the necessary right-of-way for waterways or navigable canals:
323-19 (1) the construction of which is authorized by federal
323-20 legislation; and
323-21 (2) the cost of construction and maintenance of which
323-22 is to be paid by the United States.
323-23 (b) This subchapter shall be liberally construed to
323-24 accomplish that purpose. (V.A.C.S. Art. 822e (part).)
323-25 Sec. 1475.002. AUTHORITY TO ACQUIRE RIGHT-OF-WAY AND DUMPING
323-26 PRIVILEGES. (a) For the purpose of navigation or to aid in
323-27 navigation, a county may, in accordance with Section 1475.003,
324-1 acquire right-of-way and necessary dumping privileges for a canal
324-2 or waterway the construction of which is authorized by federal
324-3 legislation.
324-4 (b) The county may:
324-5 (1) acquire the right-of-way and necessary dumping
324-6 privileges by purchase, through donation, or by exercising the
324-7 county's power of eminent domain; and
324-8 (2) convey the right-of-way and dumping privileges to
324-9 the United States by a deed executed in the manner that other deeds
324-10 by a county must be executed.
324-11 (c) In lieu of exercising its power of eminent domain, the
324-12 county may:
324-13 (1) allow the United States to acquire the
324-14 right-of-way and necessary dumping privileges through the United
324-15 States' power of eminent domain; and
324-16 (2) lend the county's credit by guaranteeing the
324-17 United States that the county will pay the resulting judgment or
324-18 assessment of damages for the value of the condemned property.
324-19 (V.A.C.S. Arts. 822a (part), 822b, 822e (part).)
324-20 Sec. 1475.003. AUTHORITY TO ISSUE BONDS AND IMPOSE TAXES.
324-21 To pay for an action authorized by Section 1475.002, a county may,
324-22 on the approval of at least two-thirds of the qualified voters of
324-23 the county who vote on the measure:
324-24 (1) issue bonds or warrants or otherwise lend its
324-25 credit in addition to its other debt and in an amount not to exceed
324-26 one-fourth of the taxable value of the real property in the county;
324-27 and
325-1 (2) impose taxes to pay the interest on and to provide
325-2 a sinking fund for the redemption of the debt. (V.A.C.S. Art. 822a
325-3 (part).)
325-4 Sec. 1475.004. ELECTION. (a) The commissioners court of a
325-5 county:
325-6 (1) may, on its own motion, order an election to
325-7 determine whether the county will issue bonds or warrants or
325-8 otherwise lend its credit to take an action under Section 1475.002;
325-9 and
325-10 (2) shall order such an election if a petition signed
325-11 by at least 25 of the resident owners of taxable property in the
325-12 county that calls for the election is filed with the commissioners
325-13 court.
325-14 (b) The election order must include as close a description
325-15 as possible of:
325-16 (1) the proposed navigation purposes, aid to
325-17 navigation, or right-of-way and necessary dumping privileges to be
325-18 acquired;
325-19 (2) the amount of the proposed bonds or warrants or
325-20 the extent of the credit proposed to be authorized for those
325-21 purposes;
325-22 (3) if the commissioners court proposes to issue bonds
325-23 or warrants, the maturity dates and rate of interest of the bonds
325-24 or warrants; and
325-25 (4) if the commissioners court proposes to lend the
325-26 credit of the county, the manner in which the credit is to be used
325-27 and the terms of the credit to be authorized.
326-1 (c) Subject to Section 4.003(c), Election Code, the
326-2 commissioners court shall give 20 days notice of the election:
326-3 (1) by publication in a newspaper published at the
326-4 county seat; and
326-5 (2) by posting in three public places in the county,
326-6 one of which must be at the county seat.
326-7 (d) The ballot shall be printed to permit voting for or
326-8 against the proposition: "The issuance of bonds (or, if
326-9 appropriate, 'the issuance of warrants' or 'the lending of credit')
326-10 and the imposition of a tax in payment of the bonds (or, if
326-11 appropriate, 'in payment of the warrants' or 'in payment of the
326-12 lending of credit')." (V.A.C.S. Art. 822c (part).)
326-13 Sec. 1475.005. DUTIES OF COMMISSIONERS COURT AFTER VOTER
326-14 APPROVAL. If the voters approve the proposition, the commissioners
326-15 court shall enter in its minutes:
326-16 (1) the date of the election, the notice of the
326-17 election, the ballot proposition, and the result of the election;
326-18 and
326-19 (2) an order that, as appropriate:
326-20 (A) provides for the issuance of the bonds or
326-21 warrants and states the amount, dates of maturity, and rate of
326-22 interest of the bonds or warrants; or
326-23 (B) authorizes the use of the county's credit,
326-24 specifies the extent to which the county will lend its credit, and
326-25 specifies the manner by and conditions under which the county will
326-26 lend its credit. (V.A.C.S. Art. 822c (part).)
326-27 Sec. 1475.006. INVESTMENT OF SINKING FUND. Money deposited
327-1 to the credit of the sinking fund of bonds or warrants issued under
327-2 this subchapter shall be invested as money deposited to the credit
327-3 of the sinking funds of other county bonds is invested. (V.A.C.S.
327-4 Art. 822d (part).)
327-5 Sec. 1475.007. ISSUANCE OF BONDS AND WARRANTS; USE OF
327-6 PROCEEDS. (a) A bond or warrant issued under this subchapter
327-7 shall be:
327-8 (1) issued in the name of the county;
327-9 (2) signed by the county judge; and
327-10 (3) attested by the county clerk under the seal of the
327-11 commissioners court.
327-12 (b) The commissioners court shall sell the bond or warrant
327-13 on the best terms possible.
327-14 (c) All money received from the sale of the bond or warrant
327-15 shall be paid to the county treasurer. The county treasurer shall:
327-16 (1) deposit the money to the credit of the county's
327-17 navigation fund account; and
327-18 (2) pay out the money on warrants in the manner that
327-19 other county funds are disbursed. (V.A.C.S. Art. 822d (part).)
327-20 (Sections 1475.008-1475.050 reserved for expansion)
327-21 SUBCHAPTER B. PROPERTY FOR INTRACOASTAL CANAL PURPOSES
327-22 Sec. 1475.051. APPLICABILITY OF SUBCHAPTER. This subchapter
327-23 applies only to a county adjacent to the Gulf of Mexico. (V.A.C.S.
327-24 Art. 822f (part).)
327-25 Sec. 1475.052. AUTHORITY TO ACQUIRE LAND AND CERTAIN
327-26 INTERESTS IN LAND FOR CANAL PURPOSES. (a) If the acquisition is
327-27 necessary for the construction of an intracoastal canal, a county
328-1 may, by purchase or by exercising the county's power of eminent
328-2 domain, acquire public or private land, a right-of-way, an
328-3 easement, or dumping ground privileges.
328-4 (b) The county must exercise the power of eminent domain in
328-5 the manner provided by Chapter 21, Property Code. A county may not
328-6 condemn land under Subsection (a) if the land is used for cemetery
328-7 purposes. (V.A.C.S. Art. 822f (part).)
328-8 Sec. 1475.053. AUTHORITY TO ISSUE TIME WARRANTS. The
328-9 commissioners court of a county may issue time warrants to pay for
328-10 an acquisition under Section 1475.052. (V.A.C.S. Art. 822f
328-11 (part).)
328-12 Sec. 1475.054. APPLICABILITY OF OTHER LAWS TO CONDEMNATION
328-13 PROCEEDINGS. Sections 261.002 and 261.003, Local Government Code,
328-14 apply to a condemnation proceeding brought under this subchapter.
328-15 (V.A.C.S. Art. 822f (part).)
328-16 Sec. 1475.055. EFFECT OF APPEAL. An appeal from a finding
328-17 and assessment of damages made as described by Chapter 21, Property
328-18 Code, does not suspend work by the United States that relates to
328-19 the property or property right sought to be acquired. (V.A.C.S.
328-20 Art. 822f (part).)
328-21 CHAPTER 1476. CERTIFICATES OF INDEBTEDNESS IN COUNTIES
328-22 WITH POPULATION OF MORE THAN 1.5 MILLION
328-23 Sec. 1476.001. APPLICABILITY OF CHAPTER
328-24 Sec. 1476.002. AUTHORITY TO ISSUE CERTIFICATES OF
328-25 INDEBTEDNESS FOR CERTAIN PURPOSES
328-26 Sec. 1476.003. AUTHORIZATION OF CERTIFICATES OF INDEBTEDNESS
328-27 BY COMMISSIONERS COURT
329-1 Sec. 1476.004. EXECUTION; REGISTRATION BY COUNTY TREASURER
329-2 Sec. 1476.005. CASH SALE
329-3 Sec. 1476.006. MATURITY
329-4 CHAPTER 1476. CERTIFICATES OF INDEBTEDNESS IN COUNTIES
329-5 WITH POPULATION OF MORE THAN 1.5 MILLION
329-6 Sec. 1476.001. APPLICABILITY OF CHAPTER. (a) This chapter
329-7 applies only to a county with a population of more than 1.5
329-8 million.
329-9 (b) If certificates of indebtedness were not issued under
329-10 this chapter by January 1, 1980, this chapter has no effect.
329-11 (V.A.C.S. Art. 717n-1, Sec. 1 (part).)
329-12 Sec. 1476.002. AUTHORITY TO ISSUE CERTIFICATES OF
329-13 INDEBTEDNESS FOR CERTAIN PURPOSES. A county may issue certificates
329-14 of indebtedness:
329-15 (1) in an amount not to exceed $2 million to
329-16 construct, enlarge, furnish, equip, or repair a county building or
329-17 other permanent improvement; or
329-18 (2) in an amount not to exceed $3.5 million to:
329-19 (A) purchase right-of-way in participation with
329-20 the Texas Department of Transportation in connection with a
329-21 designated state highway; or
329-22 (B) construct a curb, gutter, or drainage
329-23 facility for a designated state highway. (V.A.C.S. Art. 717n-1,
329-24 Secs. 1 (part), 2 (part).)
329-25 Sec. 1476.003. AUTHORIZATION OF CERTIFICATES OF INDEBTEDNESS
329-26 BY COMMISSIONERS COURT. Certificates of indebtedness issued under
329-27 this chapter must be authorized by order of the commissioners court
330-1 of the county. (V.A.C.S. Art. 717n-1, Sec. 2 (part).)
330-2 Sec. 1476.004. EXECUTION; REGISTRATION BY COUNTY TREASURER.
330-3 A certificate of indebtedness issued under this chapter must be:
330-4 (1) signed by the county judge;
330-5 (2) attested by the county clerk; and
330-6 (3) registered by the county treasurer. (V.A.C.S.
330-7 Art. 717n-1, Sec. 2 (part).)
330-8 Sec. 1476.005. CASH SALE. A county shall sell certificates
330-9 of indebtedness issued under this chapter for cash. (V.A.C.S.
330-10 Art. 717n-1, Sec. 2 (part).)
330-11 Sec. 1476.006. MATURITY. A certificate of indebtedness
330-12 issued under this chapter must mature not later than 35 years after
330-13 its date. (V.A.C.S. Art. 717n-1, Sec. 2 (part).)
330-14 CHAPTER 1477. OBLIGATIONS FOR OTHER COUNTY PURPOSES
330-15 SUBCHAPTER A. BONDS FOR FACILITIES TO BE LEASED
330-16 TO PUBLIC OR PRIVATE ENTITIES
330-17 Sec. 1477.001. AUTHORITY TO ACQUIRE PROPERTY FOR LEASE TO
330-18 PUBLIC OR PRIVATE ENTITY
330-19 Sec. 1477.002. AUTHORITY TO ISSUE BONDS
330-20 Sec. 1477.003. BOND PAYMENTS FROM REVENUE OR TAXES
330-21 Sec. 1477.004. ELECTION REQUIRED TO SECURE BONDS WITH TAXES
330-22 Sec. 1477.005. CONTENTS OF ORDINANCE, ORDER, OR RESOLUTION
330-23 AUTHORIZING BONDS
330-24 Sec. 1477.006. ADOPTION AND EXECUTION OF DOCUMENTS
330-25 Sec. 1477.007. MATURITY
330-26 Sec. 1477.008. IMPOSITION OF TAX
330-27 Sec. 1477.009. GRANTS FOR PRISONS OR LAW ENFORCEMENT
331-1 FACILITIES NOT PROHIBITED
331-2 (Sections 1477.010-1477.050 reserved for expansion)
331-3 SUBCHAPTER B. BONDS FOR WATER SUPPLY FOR COUNTY PURPOSES
331-4 Sec. 1477.051. APPLICABILITY OF SUBCHAPTER
331-5 Sec. 1477.052. DEFINITION
331-6 Sec. 1477.053. AUTHORITY TO ACQUIRE WATER SUPPLY
331-7 Sec. 1477.054. LIMITATION ON COST
331-8 Sec. 1477.055. AUTHORITY TO ISSUE BONDS AND IMPOSE AD VALOREM
331-9 TAXES
331-10 Sec. 1477.056. AMOUNT OF TAX
331-11 Sec. 1477.057. ELECTION
331-12 Sec. 1477.058. CONTENTS OF ORDER AUTHORIZING BONDS
331-13 Sec. 1477.059. MATURITY
331-14 Sec. 1477.060. SIGNATURES; REGISTRATION BY COUNTY
331-15 TREASURER
331-16 Sec. 1477.061. SALE OF BONDS
331-17 Sec. 1477.062. USE OF BOND PROCEEDS
331-18 Sec. 1477.063. ADDITIONAL BONDS
331-19 Sec. 1477.064. RATES AND CHARGES
331-20 Sec. 1477.065. TAXES PLEDGED TO PAY BONDS
331-21 Sec. 1477.066. BONDHOLDER'S RIGHT TO MANDAMUS
331-22 Sec. 1477.067. REFUNDING BONDS
331-23 Sec. 1477.068. EXEMPTION FROM ASSESSMENT OR TAXATION
331-24 Sec. 1477.069. COUNTY USE OF WATER
331-25 Sec. 1477.070. SALE OF WATER NOT NEEDED FOR COUNTY
331-26 PURPOSES
331-27 Sec. 1477.071. EMINENT DOMAIN
332-1 Sec. 1477.072. RELOCATION OR ALTERATION EXPENSE
332-2 Sec. 1477.073. ESSENTIAL GOVERNMENTAL FUNCTION
332-3 (Sections 1477.074-1477.100 reserved for expansion)
332-4 SUBCHAPTER C. NATURAL GAS SYSTEM FOR COUNTY BUILDINGS
332-5 IN CERTAIN COUNTIES
332-6 Sec. 1477.101. APPLICABILITY OF SUBCHAPTER
332-7 Sec. 1477.102. AUTHORITY TO ACQUIRE NATURAL GAS SYSTEM
332-8 Sec. 1477.103. NATURAL GAS SYSTEM FACILITIES
332-9 Sec. 1477.104. AUTHORITY TO ISSUE BONDS
332-10 Sec. 1477.105. BONDS NOT PAYABLE FROM TAXES
332-11 Sec. 1477.106. NOTICE OF INTENTION TO ISSUE BONDS
332-12 Sec. 1477.107. ELECTION
332-13 Sec. 1477.108. CONTENTS OF ORDER AUTHORIZING BONDS
332-14 Sec. 1477.109. MATURITY
332-15 Sec. 1477.110. SIGNATURES; REGISTRATION BY COUNTY
332-16 TREASURER
332-17 Sec. 1477.111. SALE OF BONDS
332-18 Sec. 1477.112. USE OF BOND PROCEEDS
332-19 Sec. 1477.113. ADDITIONAL BONDS
332-20 Sec. 1477.114. GAS RATES AND CHARGES
332-21 Sec. 1477.115. BONDHOLDER'S RIGHT TO MANDAMUS
332-22 Sec. 1477.116. REFUNDING BONDS
332-23 Sec. 1477.117. EXEMPTION FROM ASSESSMENT OR TAXATION
332-24 Sec. 1477.118. COUNTY USE OF GAS
332-25 Sec. 1477.119. SALE OF GAS NOT NEEDED FOR COUNTY PURPOSES
332-26 Sec. 1477.120. EMINENT DOMAIN
332-27 Sec. 1477.121. RELOCATION OR ALTERATION EXPENSE
333-1 Sec. 1477.122. ESSENTIAL GOVERNMENTAL FUNCTION
333-2 (Sections 1477.123-1477.150 reserved for expansion)
333-3 SUBCHAPTER D. OBLIGATIONS FOR FIRE-FIGHTING EQUIPMENT
333-4 Sec. 1477.151. AUTHORITY TO PURCHASE FIRE-FIGHTING
333-5 EQUIPMENT
333-6 Sec. 1477.152. AUTHORITY TO ISSUE OBLIGATIONS AND IMPOSE
333-7 TAXES
333-8 Sec. 1477.153. LIMIT ON AMOUNT OF OBLIGATIONS
333-9 (Sections 1477.154-1477.200 reserved for expansion)
333-10 SUBCHAPTER E. CERTIFICATES OF INDEBTEDNESS FOR FIREFIGHTER
333-11 TRAINING FACILITIES
333-12 Sec. 1477.201. AUTHORITY TO ISSUE CERTIFICATES OF
333-13 INDEBTEDNESS
333-14 Sec. 1477.202. AUTHORITY TO IMPOSE AND PLEDGE AD VALOREM
333-15 TAX
333-16 Sec. 1477.203. LIMIT ON AMOUNT OF INDEBTEDNESS
333-17 Sec. 1477.204. ELECTION
333-18 Sec. 1477.205. MATURITY
333-19 Sec. 1477.206. OPERATION OF FIREFIGHTER TRAINING
333-20 FACILITIES
333-21 (Sections 1477.207-1477.250 reserved for expansion)
333-22 SUBCHAPTER F. BONDS FOR SURVEYS, MAPS, AND PLATS IN
333-23 COUNTIES WITH POPULATION OF 500,000 OR MORE
333-24 Sec. 1477.251. APPLICABILITY OF SUBCHAPTER
333-25 Sec. 1477.252. AUTHORITY TO ISSUE BONDS AND IMPOSE TAXES
333-26 Sec. 1477.253. ELECTION PROPOSITION
333-27 Sec. 1477.254. BONDS OBLIGATION OF COUNTY
334-1 (Sections 1477.255-1477.300 reserved for expansion)
334-2 SUBCHAPTER G. REVENUE BONDS FOR IMPROVEMENTS TO ATTRACT
334-3 VISITORS OR TOURISTS IN CERTAIN COUNTIES
334-4 Sec. 1477.301. APPLICABILITY OF SUBCHAPTER
334-5 Sec. 1477.302. AUTHORITY FOR VISITOR OR TOURIST
334-6 ATTRACTIONS
334-7 Sec. 1477.303. AUTHORITY TO ISSUE REVENUE BONDS
334-8 Sec. 1477.304. PLEDGE OF REVENUE
334-9 Sec. 1477.305. LIEN ON FACILITY
334-10 Sec. 1477.306. BONDS NOT PAYABLE FROM TAXATION; EXCEPTION
334-11 Sec. 1477.307. CONTENTS OF ORDER AUTHORIZING BONDS
334-12 Sec. 1477.308. ADOPTION AND EXECUTION OF DOCUMENTS
334-13 Sec. 1477.309. MATURITY
334-14 Sec. 1477.310. SIGNATURES
334-15 Sec. 1477.311. SALE OF BONDS
334-16 Sec. 1477.312. USE OF BOND PROCEEDS
334-17 Sec. 1477.313. INVESTMENT OF FUNDS
334-18 Sec. 1477.314. CHARGES FOR SERVICES
334-19 Sec. 1477.315. REFUNDING BONDS
334-20 (Sections 1477.316-1477.350 reserved for expansion)
334-21 SUBCHAPTER H. REVENUE ANTICIPATION NOTES IN CERTAIN COUNTIES
334-22 Sec. 1477.351. APPLICABILITY OF SUBCHAPTER
334-23 Sec. 1477.352. AUTHORITY TO ISSUE REVENUE ANTICIPATION
334-24 NOTES
334-25 Sec. 1477.353. LIMIT ON AMOUNT OF NOTES
334-26 Sec. 1477.354. MATURITY
334-27 Sec. 1477.355. REVENUE AVAILABLE FOR PAYMENT OF NOTES
335-1 (Sections 1477.356-1477.400 reserved for expansion)
335-2 SUBCHAPTER I. OBLIGATIONS IN COUNTIES WITH POPULATION OF
335-3 LESS THAN 8,600
335-4 Sec. 1477.401. APPLICABILITY OF SUBCHAPTER
335-5 Sec. 1477.402. AUTHORITY TO BORROW
335-6 Sec. 1477.403. AUTHORITY TO ISSUE OBLIGATIONS
335-7 Sec. 1477.404. AUTHORITY TO IMPOSE AND PLEDGE TAXES AND
335-8 REVENUES
335-9 Sec. 1477.405. MATURITY
335-10 Sec. 1477.406. SIGNATURES
335-11 Sec. 1477.407. VALIDITY OF OBLIGATION
335-12 CHAPTER 1477. OBLIGATIONS FOR OTHER COUNTY PURPOSES
335-13 SUBCHAPTER A. BONDS FOR FACILITIES TO BE LEASED
335-14 TO PUBLIC OR PRIVATE ENTITIES
335-15 Sec. 1477.001. AUTHORITY TO ACQUIRE PROPERTY FOR LEASE TO
335-16 PUBLIC OR PRIVATE ENTITY. (a) The commissioners court of a county
335-17 may acquire real property and may construct or acquire a building
335-18 or other facility for the purpose of leasing the real property,
335-19 building, or other facility to:
335-20 (1) a political subdivision or state agency for public
335-21 use; or
335-22 (2) an individual, private corporation, or other
335-23 private entity for use in manufacturing or another commercial
335-24 activity.
335-25 (b) The commissioners court may not acquire real property
335-26 under Subsection (a) by eminent domain. (V.A.C.S. Art. 725d, Sec.
335-27 2.)
336-1 Sec. 1477.002. AUTHORITY TO ISSUE BONDS. To develop and
336-2 diversify the economy of this state and eliminate unemployment or
336-3 underemployment in this state under the authority granted by
336-4 Section 52-a, Article III, Texas Constitution, the commissioners
336-5 court may issue and sell bonds to finance an action taken under
336-6 Section 1477.001. (V.A.C.S. Art. 725d, Secs. 1 (part), 3.)
336-7 Sec. 1477.003. BOND PAYMENTS FROM REVENUE OR TAXES. The
336-8 commissioners court may provide for payment of the principal of and
336-9 interest on bonds issued under this subchapter by:
336-10 (1) pledging all or part of the revenue from a lease
336-11 of all or part of the real property, building, or other facility
336-12 financed by the bonds, after deduction of reasonable operation and
336-13 maintenance costs;
336-14 (2) imposing an annual ad valorem tax; or
336-15 (3) combining those sources. (V.A.C.S. Art. 725d,
336-16 Sec. 4.)
336-17 Sec. 1477.004. ELECTION REQUIRED TO SECURE BONDS WITH TAXES.
336-18 A county may not issue bonds under this subchapter that are payable
336-19 in whole or in part from ad valorem taxes unless the bonds are
336-20 authorized by a majority of the registered voters of the county
336-21 voting on the issue. (V.A.C.S. Art. 725d, Sec. 5(a).)
336-22 Sec. 1477.005. CONTENTS OF ORDINANCE, ORDER, OR RESOLUTION
336-23 AUTHORIZING BONDS. In the ordinance, order, or resolution
336-24 authorizing the issuance of bonds under this subchapter, the
336-25 commissioners court may:
336-26 (1) provide for the deposit and accounting of funds
336-27 and the establishment and maintenance of an interest and sinking
337-1 fund, a reserve fund, or other fund; and
337-2 (2) make additional covenants relating to the:
337-3 (A) bonds;
337-4 (B) pledged revenue; or
337-5 (C) operation and maintenance of any real
337-6 property, building, or other facility, the revenue of which is
337-7 pledged for bond payments. (V.A.C.S. Art. 725d, Sec. 6(c).)
337-8 Sec. 1477.006. ADOPTION AND EXECUTION OF DOCUMENTS. The
337-9 commissioners court may adopt and have executed any proceeding or
337-10 instrument necessary and convenient:
337-11 (1) in the issuance of a bond under this subchapter;
337-12 or
337-13 (2) in the acquisition and lease of any real property,
337-14 building, or other facility under Section 1477.001. (V.A.C.S.
337-15 Art. 725d, Sec. 7.)
337-16 Sec. 1477.007. MATURITY. A bond issued under this
337-17 subchapter must mature not later than 40 years after its date.
337-18 (V.A.C.S. Art. 725d, Sec. 6(b) (part).)
337-19 Sec. 1477.008. IMPOSITION OF TAX. (a) The commissioners
337-20 court may annually impose ad valorem taxes to pay the principal of
337-21 and interest on bonds issued under this subchapter that are payable
337-22 in whole or in part from ad valorem taxes only if the taxes are
337-23 approved at an election held under Section 1477.004.
337-24 (b) The commissioners court may not impose ad valorem taxes
337-25 to pay the principal of or interest on bonds issued under this
337-26 subchapter payable wholly from revenue from one or more leases or
337-27 other contracts made under this subchapter. (V.A.C.S. Art. 725d,
338-1 Sec. 10.)
338-2 Sec. 1477.009. GRANTS FOR PRISONS OR LAW ENFORCEMENT
338-3 FACILITIES NOT PROHIBITED. This subchapter does not prohibit a
338-4 county from making a grant of money or property to an agency of the
338-5 state to assist the agency in acquiring or developing a site for a:
338-6 (1) prison;
338-7 (2) law enforcement detention facility; or
338-8 (3) community corrections facility as defined by
338-9 Section 509.001. (V.A.C.S. Art. 725d, Sec. 11.)
338-10 (Sections 1477.010-1477.050 reserved for expansion)
338-11 SUBCHAPTER B. BONDS FOR WATER SUPPLY FOR COUNTY PURPOSES
338-12 Sec. 1477.051. APPLICABILITY OF SUBCHAPTER. This subchapter
338-13 applies only to a county that adopted the law codified by this
338-14 subchapter by a unanimous vote of the members of the commissioners
338-15 court before September 2, 1963. (V.A.C.S. Art. 2352e, Secs. 1,
338-16 15a.)
338-17 Sec. 1477.052. DEFINITION. In this subchapter, "project"
338-18 means any acquisition, construction, repair, or maintenance
338-19 authorized and undertaken under Section 1477.053. (V.A.C.S.
338-20 Art. 2352e, Sec. 2 (part).)
338-21 Sec. 1477.053. AUTHORITY TO ACQUIRE WATER SUPPLY. (a) The
338-22 commissioners court of the county may acquire by purchase,
338-23 construction, or otherwise an adequate source of surface or
338-24 subterranean fresh water for supplying water to the county's
338-25 courthouse or for other county purposes.
338-26 (b) To further an acquisition under Subsection (a), the
338-27 commissioners court may purchase, construct, repair, and maintain:
339-1 (1) a pool, lake, or reservoir;
339-2 (2) a well;
339-3 (3) a dam; and
339-4 (4) any water treatment and distribution facility as
339-5 may be required.
339-6 (c) The county must comply with the applicable water permit
339-7 provisions of Title 2, Water Code. (V.A.C.S. Art. 2352e, Sec. 2
339-8 (part).)
339-9 Sec. 1477.054. LIMITATION ON COST. (a) The total cost of
339-10 projects undertaken by the county under this subchapter may not
339-11 exceed $250,000, excluding interest.
339-12 (b) The par value of bonds issued under this subchapter for
339-13 a project may not exceed $250,000. (V.A.C.S. Art. 2352e, Secs. 2
339-14 (part), 4(e) (part).)
339-15 Sec. 1477.055. AUTHORITY TO ISSUE BONDS AND IMPOSE AD
339-16 VALOREM TAXES. (a) To pay the costs of a project, the county may
339-17 issue bonds payable from and secured by a pledge of the net revenue
339-18 of the project. The cost of a project may include:
339-19 (1) legal, fiscal, and engineering expenses; and
339-20 (2) interest during the construction of the project.
339-21 (b) If provided in the order issuing a bond, bonds issued
339-22 under Subsection (a) may be additionally secured by an ad valorem
339-23 tax imposed under Section 9, Article VIII, Texas Constitution. If
339-24 the county places any part of the ad valorem tax in a permanent
339-25 improvement fund, only the ad valorem taxes in that fund may be
339-26 used as the additional security.
339-27 (c) Before a county may issue bonds under Subsection (a) to
340-1 pay for a project, the bonds must be approved in an election held
340-2 under Section 1477.057. If an ad valorem tax is to be imposed
340-3 under Subsection (b) to secure bonds, the tax must also be approved
340-4 at the election held to approve the issuance of the bonds.
340-5 (V.A.C.S. Art. 2352e, Sec. 4(a) (part).)
340-6 Sec. 1477.056. AMOUNT OF TAX. (a) If bonds issued under
340-7 this subchapter are to be secured by a tax, the commissioners court
340-8 shall impose a tax sufficient to pay the interest on the bonds as
340-9 the interest accrues and the principal as the principal matures.
340-10 (b) The order authorizing the issuance of bonds may provide
340-11 that the amount of tax to be collected each year may be reduced to
340-12 the extent money is available from pledged project revenue for the
340-13 payment of interest and principal. (V.A.C.S. Art. 2352e, Sec.
340-14 4(a) (part).)
340-15 Sec. 1477.057. ELECTION. (a) Before construction of a
340-16 project may begin and before a project may be improved, repaired,
340-17 or extended under Section 1477.063, the commissioners court by
340-18 resolution must order an election.
340-19 (b) In addition to the requirements provided by Chapter 3,
340-20 Election Code, the election order must:
340-21 (1) describe the proposed project;
340-22 (2) state the amount, rate of interest, and maturity
340-23 dates of bonds to be issued to pay for the proposed project;
340-24 (3) state whether a tax will be imposed to redeem the
340-25 bonds; and
340-26 (4) state the amount of any tax to be imposed to
340-27 redeem the bonds.
341-1 (c) If a majority of the voters in the county approve the
341-2 issuance of bonds under this subchapter, the commissioners court
341-3 shall issue the bonds as provided by this subchapter. (V.A.C.S.
341-4 Art. 2352e, Secs. 4(d) (part), (e) (part).)
341-5 Sec. 1477.058. CONTENTS OF ORDER AUTHORIZING BONDS. The
341-6 order authorizing issuance of bonds under this subchapter to pay
341-7 for a project may contain:
341-8 (1) reasonable and proper provisions for protecting
341-9 and enforcing the rights and remedies of the bondholders, including
341-10 covenants that state the duties of the county relating to:
341-11 (A) the acquisition of property for the project;
341-12 (B) the construction, maintenance, operation,
341-13 repair, and insurance of the project; and
341-14 (C) the custody, protection, and application of
341-15 all money related to the project;
341-16 (2) a statement of the rights and remedies of the
341-17 bondholders; and
341-18 (3) other provisions that the commissioners court
341-19 considers reasonable and proper for the security of the
341-20 bondholders, including covenants prescribing:
341-21 (A) each event that constitutes a default; and
341-22 (B) the rights, liabilities, powers, and duties
341-23 that arise on breach by the county of a duty or obligation.
341-24 (V.A.C.S. Art. 2352e, Sec. 4(f) (part).)
341-25 Sec. 1477.059. MATURITY. A bond issued under this
341-26 subchapter must mature not later than 40 years after its date.
341-27 (V.A.C.S. Art. 2352e, Sec. 4(f) (part).)
342-1 Sec. 1477.060. SIGNATURES; REGISTRATION BY COUNTY TREASURER.
342-2 (a) A bond issued under this subchapter must be:
342-3 (1) signed by the county judge; and
342-4 (2) attested by the county clerk.
342-5 (b) The county treasurer shall register a bond issued under
342-6 this subchapter but is not required to sign the bond. (V.A.C.S.
342-7 Art. 2352e, Sec. 6 (part).)
342-8 Sec. 1477.061. SALE OF BONDS. The commissioners court shall
342-9 determine the manner of sale of bonds issued under this subchapter.
342-10 (V.A.C.S. Art. 2352e, Sec. 4(f) (part).)
342-11 Sec. 1477.062. USE OF BOND PROCEEDS. (a) The proceeds of
342-12 bonds issued under this subchapter may only be used to pay the cost
342-13 of the project for which the bonds were issued.
342-14 (b) The county shall disburse the proceeds of the bonds in
342-15 accordance with any restrictions provided in the order authorizing
342-16 the bonds.
342-17 (c) The bondholders have a lien on the proceeds until the
342-18 proceeds are applied.
342-19 (d) The bond proceeds, pending their use for the
342-20 construction of the project, may be invested in direct obligations
342-21 of the United States having maturities not more than 91 days from
342-22 the date of investment. (V.A.C.S. Art. 2352e, Sec. 4(f) (part).)
342-23 Sec. 1477.063. ADDITIONAL BONDS. (a) Unless otherwise
342-24 provided in the bond order, if the proceeds of bonds issued to pay
342-25 for a project are not sufficient to pay the cost of the project,
342-26 the county may issue additional bonds under this subchapter not to
342-27 exceed the amount of the deficit.
343-1 (b) If permitted by the order originally authorizing bonds
343-2 to pay for a project, the county may issue additional bonds for
343-3 improving, repairing, or extending the project.
343-4 (c) Bonds issued under Subsection (b):
343-5 (1) may be payable:
343-6 (A) solely from a pledge of the net revenue of
343-7 the project; or
343-8 (B) from the net revenue of the project and the
343-9 imposition of an ad valorem tax; and
343-10 (2) must be approved at an election in the same manner
343-11 as bonds originally issued to pay the costs of the project.
343-12 (V.A.C.S. Art. 2352e, Secs. 4(f) (part), 8.)
343-13 Sec. 1477.064. RATES AND CHARGES. (a) If bonds issued
343-14 under this subchapter are secured solely by a pledge of net revenue
343-15 of the project, the commissioners court shall contract for and
343-16 impose rates and charges for water supplied by the project that
343-17 will be sufficient to:
343-18 (1) operate and maintain the project;
343-19 (2) pay when due the principal of and interest on the
343-20 bonds; and
343-21 (3) establish any reserves provided in the order
343-22 authorizing the issuance of the bonds.
343-23 (b) A bond secured solely by a pledge of net revenue:
343-24 (1) is not a debt of the county issuing the bond;
343-25 (2) may be a charge only on pledged revenue of a
343-26 project;
343-27 (3) may not be included in determining the power of
344-1 the county to issue bonds or incur other debt for any purpose
344-2 authorized by law; and
344-3 (4) must contain the following provision: "The holder
344-4 of this bond is not entitled to demand payment of this obligation
344-5 out of any money raised by taxation." (V.A.C.S. Art. 2352e, Secs.
344-6 4(b), 5.)
344-7 Sec. 1477.065. TAXES PLEDGED TO PAY BONDS. A bond issued
344-8 under this subchapter that is secured wholly or partially by a
344-9 pledge of a tax imposed under Section 9, Article VIII, Texas
344-10 Constitution, is considered to be payable wholly from that tax for
344-11 the purpose of determining the availability of taxing power of the
344-12 county to pay an obligation that is payable from that tax.
344-13 (V.A.C.S. Art. 2352e, Sec. 12.)
344-14 Sec. 1477.066. BONDHOLDER'S RIGHT TO MANDAMUS. (a) The
344-15 holder of a bond issued under this subchapter is entitled, by
344-16 mandamus or other proceedings in court, to enforce the holder's
344-17 rights against:
344-18 (1) the county;
344-19 (2) the county's employees and agents; and
344-20 (3) the employees of the county's agents.
344-21 (b) A bondholder's rights include the right to require the
344-22 county to:
344-23 (1) impose and collect sufficient rates and charges to
344-24 carry out the agreements contained in the bond order; and
344-25 (2) perform all agreements and covenants contained in
344-26 the bond order and the duties arising from those agreements and
344-27 covenants. (V.A.C.S. Art. 2352e, Sec. 11.)
345-1 Sec. 1477.067. REFUNDING BONDS. Bonds issued to refund
345-2 bonds issued under this subchapter may only be:
345-3 (1) exchanged for bonds being refunded; or
345-4 (2) sold and delivered to provide money to pay matured
345-5 or redeemable bonds maturing or redeemable not later than six
345-6 months after the date of issuance of the refunding bonds.
345-7 (V.A.C.S. Art. 2352e, Sec. 9 (part).)
345-8 Sec. 1477.068. EXEMPTION FROM ASSESSMENT OR TAXATION.
345-9 (a) A county is not required to pay any assessment on a project or
345-10 any part of a project.
345-11 (b) A bond issued under this subchapter, the transfer of the
345-12 bond, and the income from the bond, including any profit made from
345-13 the sale of the bond, are exempt from taxation by this state or by
345-14 a political subdivision of this state. (V.A.C.S. Art. 2352e, Sec.
345-15 14 (part).)
345-16 Sec. 1477.069. COUNTY USE OF WATER. A county shall pay for
345-17 water used by the county for its own facilities from general funds
345-18 of the county legally available for that purpose, and free service
345-19 is prohibited. (V.A.C.S. Art. 2352e, Sec. 4(c).)
345-20 Sec. 1477.070. SALE OF WATER NOT NEEDED FOR COUNTY PURPOSES.
345-21 (a) The commissioners court may sell, deliver, and distribute any
345-22 water of the project that is not needed for county purposes to a
345-23 municipal corporation or political subdivision of this state, or an
345-24 individual, corporation, or company under terms that the court
345-25 determines are in the best interests of the county.
345-26 (b) The cost of supplying water from a project under
345-27 Subsection (a), including any increase in the cost of acquisition,
346-1 storage, treatment, and distribution facilities, is considered a
346-2 cost of the project.
346-3 (c) The commissioners court may not sell water under
346-4 Subsection (a):
346-5 (1) if an adequate public water supply is available to
346-6 the municipal corporation, political subdivision, individual,
346-7 corporation, or company at the time the law codified by this
346-8 subchapter was adopted by the county; or
346-9 (2) for irrigation purposes. (V.A.C.S. Art. 2352e,
346-10 Sec. 3.)
346-11 Sec. 1477.071. EMINENT DOMAIN. (a) In exercising any power
346-12 granted by this subchapter, a county may acquire real property and
346-13 easements by the exercise of the power of eminent domain in
346-14 accordance with Chapter 21, Property Code.
346-15 (b) The commissioners court shall determine the amount and
346-16 character of interest in real property and easements to be acquired
346-17 by the exercise of the power of eminent domain. (V.A.C.S.
346-18 Art. 2352e, Sec. 7 (part).)
346-19 Sec. 1477.072. RELOCATION OR ALTERATION EXPENSE. If a
346-20 county, in the exercise of a power granted by this subchapter,
346-21 including the power of eminent domain or the power of relocation,
346-22 makes necessary the relocation, rerouting, or alteration of the
346-23 construction of a highway, railroad, electric transmission line,
346-24 pipeline, or telephone or telegraph property or facility, the
346-25 relocation, rerouting, or alteration of construction must be
346-26 accomplished at the sole expense of the county. In this section,
346-27 "sole expense" means the actual cost of the relocation, rerouting,
347-1 or alteration of construction to provide comparable replacement
347-2 without enhancement of the facility, after deduction of the net
347-3 salvage value derived from the old facility. (V.A.C.S. Art. 2352e,
347-4 Sec. 7 (part).)
347-5 Sec. 1477.073. ESSENTIAL GOVERNMENTAL FUNCTION. A county,
347-6 in accomplishing the purposes of this subchapter, is performing an
347-7 essential governmental function. (V.A.C.S. Art. 2352e, Sec. 14
347-8 (part).)
347-9 (Sections 1477.074-1477.100 reserved for expansion)
347-10 SUBCHAPTER C. NATURAL GAS SYSTEM FOR COUNTY BUILDINGS
347-11 IN CERTAIN COUNTIES
347-12 Sec. 1477.101. APPLICABILITY OF SUBCHAPTER. This subchapter
347-13 applies only to a county in which:
347-14 (1) the commissioners court adopts this subchapter by
347-15 an order approved by a majority vote of the court's members; and
347-16 (2) the county seat is an unincorporated community or
347-17 city with a population of more than 5,000, according to the most
347-18 recent federal census, on the date on which the order is adopted.
347-19 (V.A.C.S. Art. 2372q, Sec. 1.)
347-20 Sec. 1477.102. AUTHORITY TO ACQUIRE NATURAL GAS SYSTEM. The
347-21 commissioners court of the county may purchase or construct a
347-22 natural gas system for supplying natural gas to county buildings
347-23 adequately and dependably. (V.A.C.S. Art. 2372q, Sec. 2 (part).)
347-24 Sec. 1477.103. NATURAL GAS SYSTEM FACILITIES. The county
347-25 may construct, repair, and maintain natural gas supply or
347-26 distribution facilities as required to supply natural gas to county
347-27 buildings. (V.A.C.S. Art. 2372q, Sec. 2 (part).)
348-1 Sec. 1477.104. AUTHORITY TO ISSUE BONDS. To pay the cost of
348-2 purchasing or constructing a natural gas system under this
348-3 subchapter, the county may issue bonds payable from and secured by
348-4 a pledge of the net revenue of the system. The cost of the system
348-5 may include:
348-6 (1) legal, fiscal, and engineering expenses;
348-7 (2) interest that accrues during the construction of
348-8 the system; and
348-9 (3) the cost of supplying gas under Section 1477.119,
348-10 including any increase in the cost of distribution lines or
348-11 facilities. (V.A.C.S. Art. 2372q, Secs. 3 (part), 4(a).)
348-12 Sec. 1477.105. BONDS NOT PAYABLE FROM TAXES. (a) A bond
348-13 issued under this subchapter:
348-14 (1) is not a debt of the county;
348-15 (2) may be a charge only on the revenue pledged for
348-16 the payment of the bond; and
348-17 (3) may not be included in determining the power of
348-18 the county to issue bonds or incur other indebtedness for any
348-19 purpose authorized by law.
348-20 (b) Each bond issued under this subchapter must contain the
348-21 following provision: "The holder of this obligation is not
348-22 entitled to demand payment of this obligation from any money raised
348-23 by taxation." (V.A.C.S. Art. 2372q, Sec. 5.)
348-24 Sec. 1477.106. NOTICE OF INTENTION TO ISSUE BONDS. (a) The
348-25 commissioners court of the county may not authorize bonds under
348-26 this subchapter until the court gives notice of its intention to
348-27 issue the bonds.
349-1 (b) The notice must state, as to the proposed bonds:
349-2 (1) the maximum amount of the issue;
349-3 (2) the maximum interest rate;
349-4 (3) the maximum maturity; and
349-5 (4) the time and place at which the court intends to
349-6 authorize the bonds.
349-7 (c) The notice must be published in a newspaper of general
349-8 circulation in the county once a week for two consecutive weeks,
349-9 with the first publication being before the 14th day before the
349-10 date set for authorization of the bonds.
349-11 (d) The commissioners court may authorize the bonds at the
349-12 time and place specified in the notice except as provided by
349-13 Section 1477.107. (V.A.C.S. Art. 2372q, Sec. 10 (part).)
349-14 Sec. 1477.107. ELECTION. (a) If, before the bonds are
349-15 authorized, the commissioners court receives a petition requesting
349-16 an election on the issuance of the bonds that is signed by more
349-17 than 10 percent of the county's registered voters who are resident
349-18 owners of taxable property in the county, the court may not proceed
349-19 unless a proposition for the issuance of the bonds is approved at
349-20 an election held for that purpose.
349-21 (b) The Election Code applies to an election under this
349-22 subchapter except as otherwise provided by this subchapter.
349-23 (c) In addition to the notice required by Section 4.003,
349-24 Election Code, a substantial copy of the resolution calling the
349-25 election shall be published in a newspaper of general circulation
349-26 in the county once a week for two consecutive weeks, with the first
349-27 publication being before the 14th day before the date of the
350-1 election.
350-2 (d) The election returns shall be made to the court not
350-3 later than the fifth day after the date of the election.
350-4 (e) The court may authorize the bonds only if the issuance
350-5 is approved by a majority of the qualified voters of the county
350-6 voting in the election. (V.A.C.S. Art. 2372q, Sec. 10 (part).)
350-7 Sec. 1477.108. CONTENTS OF ORDER AUTHORIZING BONDS. An
350-8 order authorizing the issuance of bonds under this subchapter may
350-9 contain:
350-10 (1) reasonable and proper provisions for protecting
350-11 and enforcing the rights or remedies of the bondholders, including
350-12 covenants that state the duties of the county relating to:
350-13 (A) the acquisition of property for the natural
350-14 gas system;
350-15 (B) the construction, maintenance, operation,
350-16 repair, and insurance of the system; and
350-17 (C) the custody, protection, and application of
350-18 all money related to the system;
350-19 (2) a statement of the rights and remedies of the
350-20 bondholders; and
350-21 (3) other provisions that the commissioners court
350-22 considers reasonable and proper for the security of the
350-23 bondholders, including covenants prescribing:
350-24 (A) each event that constitutes a default; and
350-25 (B) the rights, liabilities, powers, and duties
350-26 that arise on the breach by the county of a duty or obligation.
350-27 (V.A.C.S. Art. 2372q, Sec. 4(d) (part).)
351-1 Sec. 1477.109. MATURITY. A bond issued under this
351-2 subchapter must mature not later than 40 years after its date.
351-3 (V.A.C.S. Art. 2372q, Sec. 4(d) (part).)
351-4 Sec. 1477.110. SIGNATURES; REGISTRATION BY COUNTY TREASURER.
351-5 (a) A bond issued under this subchapter must be signed by the
351-6 county judge and attested by the county clerk.
351-7 (b) The county treasurer shall register a bond issued under
351-8 this subchapter but is not required to sign the bond. (V.A.C.S.
351-9 Art. 2372q, Sec. 6 (part).)
351-10 Sec. 1477.111. SALE OF BONDS. The commissioners court shall
351-11 determine the manner of sale of bonds issued under this subchapter.
351-12 (V.A.C.S. Art. 2372q, Sec. 4(d) (part).)
351-13 Sec. 1477.112. USE OF BOND PROCEEDS. (a) The county shall
351-14 disburse the proceeds of bonds issued under this subchapter in
351-15 accordance with any restrictions provided in the order authorizing
351-16 the bonds.
351-17 (b) The bondholders have a lien on the proceeds until the
351-18 proceeds are applied.
351-19 (c) The bond proceeds, pending their use for the
351-20 construction of the project, may be invested in direct obligations
351-21 of the United States having maturities not more than 91 days from
351-22 the date of investment. (V.A.C.S. Art. 2372q, Sec. 4(d) (part).)
351-23 Sec. 1477.113. ADDITIONAL BONDS. (a) Unless otherwise
351-24 provided by the order authorizing the bonds, if the proceeds of
351-25 bonds issued to pay for a natural gas system are not sufficient to
351-26 pay the cost of the system, the county may issue additional bonds
351-27 under this subchapter not to exceed the amount of the deficit.
352-1 (b) If permitted by the order originally authorizing bonds
352-2 to pay for a natural gas system, the county may issue additional
352-3 bonds for improving, repairing, or extending the system. (V.A.C.S.
352-4 Art. 2372q, Secs. 4(d) (part), 8.)
352-5 Sec. 1477.114. GAS RATES AND CHARGES. The commissioners
352-6 court shall contract for and impose rates and charges for gas
352-7 supplied by the natural gas system that will be sufficient to:
352-8 (1) operate and maintain the system;
352-9 (2) pay when due the principal of and interest on any
352-10 bonds issued under this subchapter; and
352-11 (3) establish any reserves provided for in the order
352-12 authorizing the issuance of the bonds. (V.A.C.S. Art. 2372q, Sec.
352-13 4(b).)
352-14 Sec. 1477.115. BONDHOLDER'S RIGHT TO MANDAMUS. (a) A
352-15 holder of a bond issued under this subchapter is entitled, by
352-16 mandamus or other proceedings in court, to enforce the holder's
352-17 rights against:
352-18 (1) the county;
352-19 (2) county employees and agents; and
352-20 (3) the employees of the county's agents.
352-21 (b) A bondholder's rights include the right to require the
352-22 county to:
352-23 (1) impose and collect sufficient rates and charges to
352-24 carry out the agreements contained in the bond order; and
352-25 (2) perform all agreements and covenants contained in
352-26 the bond order and the duties arising from those agreements or
352-27 covenants. (V.A.C.S. Art. 2372q, Sec. 12.)
353-1 Sec. 1477.116. REFUNDING BONDS. Bonds issued to refund
353-2 bonds issued under this subchapter may only be:
353-3 (1) exchanged for bonds being refunded; or
353-4 (2) sold and delivered to provide money to pay matured
353-5 or redeemable bonds maturing or redeemable not later than six
353-6 months after the date of issuance of the refunding bonds.
353-7 (V.A.C.S. Art. 2372q, Sec. 9 (part).)
353-8 Sec. 1477.117. EXEMPTION FROM ASSESSMENT OR TAXATION. (a)
353-9 A county is not required to pay any assessment on a natural gas
353-10 system or any part of a natural gas system acquired or constructed
353-11 under this subchapter.
353-12 (b) A bond issued under this subchapter, a transfer of the
353-13 bond, and the income from the bond, including any profit made from
353-14 the sale of the bond, are exempt from taxation by this state or a
353-15 political subdivision of this state. (V.A.C.S. Art. 2372q, Sec. 14
353-16 (part).)
353-17 Sec. 1477.118. COUNTY USE OF GAS. The county shall pay for
353-18 gas used by the county for its own facilities from general funds of
353-19 the county legally available for that purpose, and free service is
353-20 prohibited. (V.A.C.S. Art. 2372q, Sec. 4(c).)
353-21 Sec. 1477.119. SALE OF GAS NOT NEEDED FOR COUNTY PURPOSES.
353-22 The commissioners court may sell, deliver, and distribute natural
353-23 gas of a natural gas system purchased or constructed under this
353-24 subchapter that is not needed for county purposes to a municipal
353-25 corporation or political subdivision of this state, or an
353-26 individual, corporation, or company under terms that the court
353-27 determines are in the best interests of the county. (V.A.C.S.
354-1 Art. 2372q, Sec. 3 (part).)
354-2 Sec. 1477.120. EMINENT DOMAIN. (a) The county may not
354-3 acquire a natural gas system or a facility of a natural gas system
354-4 under this subchapter by the exercise of the power of eminent
354-5 domain or exercise the power of eminent domain under this
354-6 subchapter outside the county's boundaries. The county may acquire
354-7 land or an easement for a purpose authorized by this subchapter by
354-8 the exercise of the power of eminent domain in the manner provided
354-9 by Chapter 21, Property Code.
354-10 (b) The commissioners court shall determine the amount of
354-11 and character of interest in the land or easement to be acquired by
354-12 the exercise of the power of eminent domain. (V.A.C.S. Art. 2372q,
354-13 Secs. 2 (part), 7 (part).)
354-14 Sec. 1477.121. RELOCATION OR ALTERATION EXPENSE. If a
354-15 county, in the exercise of a power under this subchapter, including
354-16 the power of eminent domain or the power of relocation, makes
354-17 necessary the relocation or rerouting of, or alteration of the
354-18 construction of, a highway, railroad, electric transmission line or
354-19 pipeline, or telegraph or telephone property or facility, the
354-20 relocation or rerouting or alteration of construction must be
354-21 accomplished at the sole expense of the county. (V.A.C.S.
354-22 Art. 2372q, Sec. 7 (part).)
354-23 Sec. 1477.122. ESSENTIAL GOVERNMENTAL FUNCTION. A county,
354-24 in accomplishing the purposes of this subchapter, is performing an
354-25 essential governmental function. (V.A.C.S. Art. 2372q, Sec. 14
354-26 (part).)
354-27 (Sections 1477.123-1477.150 reserved for expansion)
355-1 SUBCHAPTER D. OBLIGATIONS FOR FIRE-FIGHTING EQUIPMENT
355-2 Sec. 1477.151. AUTHORITY TO PURCHASE FIRE-FIGHTING
355-3 EQUIPMENT. The commissioners court of a county may purchase fire
355-4 trucks and other fire-fighting equipment to be used for the
355-5 protection and preservation of bridges, county shops, county
355-6 warehouses, and other county property located in the county but
355-7 outside the boundaries of municipalities. (V.A.C.S. Art. 2351a-4
355-8 (part).)
355-9 Sec. 1477.152. AUTHORITY TO ISSUE OBLIGATIONS AND IMPOSE
355-10 TAXES. (a) The county may issue time warrants and bonds of the
355-11 county for a purchase under Section 1477.151 and may impose taxes
355-12 for the payment of those time warrants or bonds. The county shall
355-13 deposit the taxes in the general fund of the county.
355-14 (b) The time warrants or bonds must be authorized by a
355-15 majority of the qualified voters voting at an election held for
355-16 that purpose by the commissioners court.
355-17 (c) The county must issue the time warrants or bonds and
355-18 impose taxes in compliance with Subtitles A and C. (V.A.C.S.
355-19 Art. 2351a-4 (part).)
355-20 Sec. 1477.153. LIMIT ON AMOUNT OF OBLIGATIONS. A county may
355-21 issue time warrants or bonds under this subchapter only in an
355-22 amount that will at all times leave unencumbered taxes in an amount
355-23 sufficient to pay all current expenses from the county's general
355-24 fund. (V.A.C.S. Art. 2351a-4 (part).)
355-25 (Sections 1477.154-1477.200 reserved for expansion)
355-26 SUBCHAPTER E. CERTIFICATES OF INDEBTEDNESS FOR FIREFIGHTER
355-27 TRAINING FACILITIES
356-1 Sec. 1477.201. AUTHORITY TO ISSUE CERTIFICATES OF
356-2 INDEBTEDNESS. The commissioners court of a county may issue
356-3 certificates of indebtedness to acquire, construct, repair,
356-4 renovate, improve, or equip firefighter training facilities for the
356-5 county and to acquire property in connection with that purpose.
356-6 (V.A.C.S. Art. 2351a-7, Sec. 1 (part).)
356-7 Sec. 1477.202. AUTHORITY TO IMPOSE AND PLEDGE AD VALOREM
356-8 TAX. The commissioners court shall impose and pledge annual county
356-9 ad valorem taxes under Section 9, Article VIII, Texas Constitution,
356-10 in an amount sufficient to pay the principal of and interest on
356-11 certificates of indebtedness as they become due. (V.A.C.S.
356-12 Art. 2351a-7, Sec. 1 (part).)
356-13 Sec. 1477.203. LIMIT ON AMOUNT OF INDEBTEDNESS. The
356-14 aggregate principal amount of certificates of indebtedness issued
356-15 by a county under this subchapter may not exceed $5 million.
356-16 (V.A.C.S. Art. 2351a-7, Sec. 1 (part).)
356-17 Sec. 1477.204. ELECTION. (a) The commissioners court may
356-18 issue certificates of indebtedness under this subchapter only if
356-19 the certificates are approved by a majority of the qualified voters
356-20 voting at an election held for that purpose by the commissioners
356-21 court.
356-22 (b) An election under this subchapter shall be held on the
356-23 next uniform election date authorized by Section 41.001, Election
356-24 Code, that occurs not earlier than the 20th day after the date on
356-25 which the election is called.
356-26 (c) The commissioners court shall order the ballot at the
356-27 election to be printed to permit voting for or against the
357-1 proposition: "Issuing certificates of indebtedness by the county
357-2 to acquire, purchase, construct, repair, renovate, improve, or
357-3 equip firefighter training facilities or to purchase real or
357-4 personal property in connection with those facilities." (V.A.C.S.
357-5 Art. 2351a-7, Sec. 1 (part).)
357-6 Sec. 1477.205. MATURITY. A certificate of indebtedness
357-7 issued under this subchapter must mature not later than 40 years
357-8 after its date. (V.A.C.S. Art. 2351a-7, Sec. 1 (part).)
357-9 Sec. 1477.206. OPERATION OF FIREFIGHTER TRAINING FACILITIES.
357-10 (a) The commissioners court may:
357-11 (1) operate and maintain the county's firefighter
357-12 training facilities; and
357-13 (2) set and collect charges for:
357-14 (A) services performed at those facilities; and
357-15 (B) information furnished to others by the use
357-16 of those facilities.
357-17 (b) The commissioners court shall pay the expenses of
357-18 operating and maintaining the county's firefighter training
357-19 facilities from:
357-20 (1) charges collected under Subsection (a); and
357-21 (2) any other available county funds. (V.A.C.S.
357-22 Art. 2351a-7, Sec. 4.)
357-23 (Sections 1477.207-1477.250 reserved for expansion)
357-24 SUBCHAPTER F. BONDS FOR SURVEYS, MAPS, AND PLATS IN
357-25 COUNTIES WITH POPULATION OF 500,000 OR MORE
357-26 Sec. 1477.251. APPLICABILITY OF SUBCHAPTER. This subchapter
357-27 applies only to a county with a population of 500,000 or more.
358-1 (V.A.C.S. Art. 717l, Sec. 1 (part).)
358-2 Sec. 1477.252. AUTHORITY TO ISSUE BONDS AND IMPOSE TAXES.
358-3 (a) If the subdivisions of surveys in a county are irregularly
358-4 numbered or if the blocks and subdivisions of municipalities in the
358-5 county are not numbered or are irregularly numbered, causing
358-6 difficulties for the county tax assessor-collector, the
358-7 commissioners court of the county may:
358-8 (1) make a survey and acquire related maps and plats
358-9 of blocks and subdivisions in the county; and
358-10 (2) furnish to the county tax assessor-collector:
358-11 (A) block books showing the description of each
358-12 block and subdivision in the county;
358-13 (B) the names of the record owners of each
358-14 parcel of property in each block book, if known; and
358-15 (C) other information relating to Paragraphs (A)
358-16 and (B) that will assist in the performance of the duties of the
358-17 tax assessor-collector.
358-18 (b) The commissioners court may issue bonds to pay the cost
358-19 of taking an action under Subsection (a).
358-20 (c) The commissioners court may impose taxes under Section
358-21 9, Article VIII, Texas Constitution, to pay for bonds issued under
358-22 Subsection (b). (V.A.C.S. Art. 717l, Secs. 1 (part), 2, 4 (part).)
358-23 Sec. 1477.253. ELECTION PROPOSITION. (a) At an election to
358-24 approve the issuance of bonds under this subchapter, the
358-25 commissioners court may submit one or more separate propositions
358-26 for the issuance of bonds.
358-27 (b) Each proposition submitted at a bond election under this
359-1 subchapter may include one or more of the purposes authorized by
359-2 Section 1477.252. (V.A.C.S. Art. 717l, Sec. 3.)
359-3 Sec. 1477.254. BONDS OBLIGATION OF COUNTY. (a) A bond
359-4 issued under this subchapter is an obligation of and a charge
359-5 against the county issuing the bond.
359-6 (b) Except as provided by this subchapter, a county must
359-7 issue bonds under this subchapter and impose taxes in compliance
359-8 with applicable provisions of Subtitles A, C, and D. (V.A.C.S.
359-9 Art. 717l, Sec. 4 (part).)
359-10 (Sections 1477.255-1477.300 reserved for expansion)
359-11 SUBCHAPTER G. REVENUE BONDS FOR IMPROVEMENTS TO ATTRACT
359-12 VISITORS OR TOURISTS IN CERTAIN COUNTIES
359-13 Sec. 1477.301. APPLICABILITY OF SUBCHAPTER. This subchapter
359-14 applies only to a county:
359-15 (1) with a population of more than two million; or
359-16 (2) with a population of more than 90,000 that borders
359-17 the United Mexican States other than a county that contains three
359-18 or more municipalities that each have a population of more than
359-19 17,500. (V.A.C.S. Art. 2372d-8, Sec. 1.)
359-20 Sec. 1477.302. AUTHORITY FOR VISITOR OR TOURIST ATTRACTIONS.
359-21 A county may establish, acquire, lease as lessor or lessee,
359-22 construct, improve, enlarge, equip, repair, operate, or maintain:
359-23 (1) a public improvement or facility to attract
359-24 visitors or tourists to the county, including a civic center, a
359-25 civic center building, an auditorium, an exhibition hall, a
359-26 coliseum, stadium, or other sports facility; or
359-27 (2) a parking facility located at or in the immediate
360-1 vicinity of an improvement or facility described by Subdivision (1)
360-2 to be used in connection with the improvement or facility for
360-3 off-street parking or storage of motor vehicles or other
360-4 conveyances. (V.A.C.S. Art. 2372d-8, Sec. 2 (part).)
360-5 Sec. 1477.303. AUTHORITY TO ISSUE REVENUE BONDS. The
360-6 commissioners court of the county by order may issue revenue bonds
360-7 to provide all or part of the money to establish, acquire,
360-8 construct, improve, enlarge, equip, or repair a facility described
360-9 by Section 1477.302. (V.A.C.S. Art. 2372d-8, Secs. 3(a), (b)
360-10 (part).)
360-11 Sec. 1477.304. PLEDGE OF REVENUE. (a) Bonds issued under
360-12 this subchapter must be secured by a pledge of and be payable from
360-13 all or a designated part of the revenue from the improvement or
360-14 facility for which the bonds are issued, as provided in the order
360-15 authorizing the bonds.
360-16 (b) The pledge securing the bonds is inferior to any
360-17 previous pledge of the revenue for the payment of revenue bonds or
360-18 revenue refunding bonds that are outstanding.
360-19 (c) A county that leases a facility described by Section
360-20 1477.302 as lessee may pledge all or part of the revenue from the
360-21 facility to the lease payments. (V.A.C.S. Art. 2372d-8, Secs. 3(b)
360-22 (part), (d).)
360-23 Sec. 1477.305. LIEN ON FACILITY. Subject to any limitations
360-24 contained in previous pledges, in addition to pledging the revenue
360-25 from the improvement or facility, the commissioners court may give
360-26 a lien on the physical property acquired with the bond proceeds.
360-27 (V.A.C.S. Art. 2372d-8, Sec. 3(b) (part).)
361-1 Sec. 1477.306. BONDS NOT PAYABLE FROM TAXATION; EXCEPTION.
361-2 (a) The owner or holder of a bond issued under this subchapter is
361-3 not entitled to demand payment of the principal of or interest on
361-4 the bond from money raised by taxation.
361-5 (b) Subsection (a) does not apply to a demand for payment
361-6 from hotel occupancy taxes that are pledged under Chapter 352, Tax
361-7 Code, to the payment of the bond. (V.A.C.S. Art. 2372d-8, Sec. 8.)
361-8 Sec. 1477.307. CONTENTS OF ORDER AUTHORIZING BONDS. (a)
361-9 The order of the commissioners court authorizing the issuance of
361-10 bonds under this subchapter may provide for the flow of funds and
361-11 the establishment and maintenance of an interest and sinking fund,
361-12 a reserve fund, or other fund.
361-13 (b) The order may:
361-14 (1) prohibit the issuance of additional bonds or other
361-15 obligations payable from the pledged revenue; or
361-16 (2) reserve the right of the commissioners court,
361-17 subject to any condition in the order, to issue additional bonds
361-18 payable from the pledged revenue that are on a parity with or
361-19 subordinate to the lien and pledge on the revenue that supports the
361-20 bonds issued under the order.
361-21 (c) The commissioners court may include in the order any
361-22 other provision or covenant, including a covenant with respect to
361-23 the bonds, the use or pledge of revenue, or the operation, lease,
361-24 or maintenance of the improvement or facility. (V.A.C.S.
361-25 Art. 2372d-8, Sec. 9 (part).)
361-26 Sec. 1477.308. ADOPTION AND EXECUTION OF DOCUMENTS. The
361-27 commissioners court may adopt and have executed any other
362-1 proceeding or instrument necessary or convenient to the issuance of
362-2 bonds under this subchapter. (V.A.C.S. Art. 2372d-8, Sec. 9
362-3 (part).)
362-4 Sec. 1477.309. MATURITY. A bond issued under this
362-5 subchapter must mature not later than 40 years after its date.
362-6 (V.A.C.S. Art. 2372d-8, Secs. 11 (part), 12 (part).)
362-7 Sec. 1477.310. SIGNATURES. A bond issued under this
362-8 subchapter must be:
362-9 (1) signed by the county judge; and
362-10 (2) countersigned by the county clerk. (V.A.C.S.
362-11 Art. 2372d-8, Sec. 11 (part).)
362-12 Sec. 1477.311. SALE OF BONDS. The commissioners court may
362-13 sell bonds issued under this subchapter under terms the court
362-14 determines to be the most advantageous and reasonably obtainable.
362-15 (V.A.C.S. Art. 2372d-8, Sec. 11 (part).)
362-16 Sec. 1477.312. USE OF BOND PROCEEDS. (a) From the proceeds
362-17 of bonds issued under this subchapter, the county may appropriate
362-18 or set aside amounts to:
362-19 (1) pay interest expected to accrue during the
362-20 construction period;
362-21 (2) deposit into a reserve fund, as provided in the
362-22 order authorizing the bonds; and
362-23 (3) pay all expenses incurred in the issuance, sale,
362-24 and delivery of the bonds.
362-25 (b) The bond proceeds, until they are needed to implement
362-26 the purpose for which the bonds were issued, may be invested in
362-27 direct obligations of the United States, placed on time deposit, or
363-1 both. (V.A.C.S. Art. 2372d-8, Sec. 10 (part).)
363-2 Sec. 1477.313. INVESTMENT OF FUNDS. Money in an interest
363-3 and sinking fund, reserve fund, or any other fund established or
363-4 provided for in the bond order may be invested in the manner and in
363-5 the securities as provided in the bond order. (Art. 2372d-8, Sec.
363-6 10 (part).)
363-7 Sec. 1477.314. CHARGES FOR SERVICES. The commissioners
363-8 court shall impose and collect charges for the use of an
363-9 improvement or facility the revenue of which is pledged to secure
363-10 bonds issued under this subchapter, and for services provided in
363-11 connection with that use, in amounts at least sufficient to comply
363-12 with each covenant or provision in the order authorizing the
363-13 issuance of the bonds. (V.A.C.S. Art. 2372d-8, Sec. 3(c).)
363-14 Sec. 1477.315. REFUNDING BONDS. (a) A county by order may
363-15 issue revenue refunding bonds similarly secured to refund either
363-16 original bonds or revenue refunding bonds previously issued by the
363-17 county under this subchapter.
363-18 (b) The refunding bonds shall be executed as provided by
363-19 this subchapter for original bonds.
363-20 (c) The comptroller shall register the refunding bonds on
363-21 the surrender and cancellation of the bonds to be refunded.
363-22 (d) In lieu of issuing bonds to be registered on the
363-23 surrender and cancellation of the bonds to be refunded, the county,
363-24 in the order authorizing the issuance of the refunding bonds, may
363-25 provide for the sale of the refunding bonds and the deposit of the
363-26 proceeds in the place bonds to be refunded are payable. In that
363-27 case, the refunding bonds may be issued in an amount sufficient to
364-1 pay the principal of and interest on the bonds to be refunded to
364-2 their option or maturity date, and the comptroller shall register
364-3 the refunding bonds without the surrender and cancellation of the
364-4 bonds to be refunded. (V.A.C.S. Art. 2372d-8, Sec. 12 (part).)
364-5 (Sections 1477.316-1477.350 reserved for expansion)
364-6 SUBCHAPTER H. REVENUE ANTICIPATION NOTES IN CERTAIN COUNTIES
364-7 Sec. 1477.351. APPLICABILITY OF SUBCHAPTER. This subchapter
364-8 applies only to a county that has a county auditor. (V.A.C.S.
364-9 Art. 1676c, Sec. 1 (part).)
364-10 Sec. 1477.352. AUTHORITY TO ISSUE REVENUE ANTICIPATION
364-11 NOTES. The county may issue revenue anticipation notes to pay for
364-12 current expenses of the county only if the county auditor:
364-13 (1) recommends that action; and
364-14 (2) identifies the revenue anticipated to be used for
364-15 repayment of the notes. (V.A.C.S. Art. 1676c, Secs. 1 (part), 2
364-16 (part).)
364-17 Sec. 1477.353. LIMIT ON AMOUNT OF NOTES. (a) The total
364-18 amount of revenue anticipation notes issued by the county under
364-19 this subchapter may not exceed 50 percent of the amount of taxes
364-20 levied by the county for the year in which the notes are issued.
364-21 (b) For purposes of Subsection (a), the total amount of
364-22 revenue anticipation notes includes the:
364-23 (1) principal of the notes;
364-24 (2) interest to be paid on the notes; and
364-25 (3) cost of issuance of the notes. (V.A.C.S.
364-26 Art. 1676c, Sec. 1 (part).)
364-27 Sec. 1477.354. MATURITY. (a) A revenue anticipation note
365-1 issued under this subchapter must mature not later than the last
365-2 day of the fiscal year in which the note is issued, except as
365-3 provided by Subsection (b).
365-4 (b) A revenue anticipation note issued under this subchapter
365-5 may mature not later than the last day of the first quarter of the
365-6 fiscal year following the fiscal year in which the note is issued
365-7 if the revenue dedicated to retire the note has accrued but has not
365-8 been received by the county in the fiscal year in which the note is
365-9 issued. (V.A.C.S. Art. 1676c, Sec. 1 (part).)
365-10 Sec. 1477.355. REVENUE AVAILABLE FOR PAYMENT OF NOTES. A
365-11 county may use any revenue of the county not otherwise dedicated or
365-12 restricted, including ad valorem taxes, for the payment of a
365-13 revenue anticipation note issued under this subchapter. (V.A.C.S.
365-14 Art. 1676c, Sec. 2 (part).)
365-15 (Sections 1477.356-1477.400 reserved for expansion)
365-16 SUBCHAPTER I. OBLIGATIONS IN COUNTIES WITH POPULATION OF
365-17 LESS THAN 8,600
365-18 Sec. 1477.401. APPLICABILITY OF SUBCHAPTER. This subchapter
365-19 applies only to a county with a population of less than 8,600.
365-20 (V.A.C.S. Art. 1644c-1, Sec. 1 (part).)
365-21 Sec. 1477.402. AUTHORITY TO BORROW. (a) The county may
365-22 borrow money under this subchapter from any source.
365-23 (b) The total combined principal amount borrowed under this
365-24 subchapter may not exceed $200,000. (V.A.C.S. Art. 1644c-1, Sec. 1
365-25 (part).)
365-26 Sec. 1477.403. AUTHORITY TO ISSUE OBLIGATIONS. The
365-27 commissioners court of the county may issue time warrants or other
366-1 obligations of the county in evidence of money borrowed under
366-2 Section 1477.402. (V.A.C.S. Art. 1644c-1, Secs. 2 (part), 3
366-3 (part).)
366-4 Sec. 1477.404. AUTHORITY TO IMPOSE AND PLEDGE TAXES AND
366-5 REVENUES. The county may impose taxes and may pledge taxes and
366-6 other revenue of the county for the payment of money borrowed under
366-7 Section 1477.402. (V.A.C.S. Art. 1644c-1, Sec. 2 (part).)
366-8 Sec. 1477.405. MATURITY. A time warrant or obligation
366-9 issued under this subchapter must be payable within 10 years.
366-10 (V.A.C.S. Art. 1644c-1, Sec. 2 (part).)
366-11 Sec. 1477.406. SIGNATURES. A time warrant or obligation
366-12 issued under this subchapter must be signed by the county judge and
366-13 the county clerk. (V.A.C.S. Art. 1644c-1, Sec. 4.)
366-14 Sec. 1477.407. VALIDITY OF OBLIGATION. A time warrant or
366-15 other obligation that is issued and signed in compliance with this
366-16 subchapter is a valid obligation of the county. (V.A.C.S.
366-17 Art. 1644c-1, Sec. 5.)
366-18 (Chapters 1478-1500 reserved for expansion)
366-19 SUBTITLE J. SPECIFIC AUTHORITY FOR MUNICIPALITIES
366-20 TO ISSUE SECURITIES
366-21 CHAPTER 1501. OBLIGATIONS FOR MUNICIPAL UTILITIES
366-22 SUBCHAPTER A. REVENUE BONDS FOR CERTAIN SEWAGE
366-23 DISPOSAL FACILITIES
366-24 Sec. 1501.001. APPLICABILITY OF SUBCHAPTER
366-25 Sec. 1501.002. AUTHORITY TO ISSUE BONDS
366-26 Sec. 1501.003. PLEDGE OF REVENUE
366-27 Sec. 1501.004. AUTHORITY TO ISSUE ADDITIONAL BONDS
367-1 Sec. 1501.005. CONTRACTS
367-2 Sec. 1501.006. RATES FOR SERVICE
367-3 Sec. 1501.007. OTHER LAW APPLICABLE; ELECTION NOT REQUIRED
367-4 (Sections 1501.008-1501.050 reserved for expansion)
367-5 SUBCHAPTER B. APPLICATION OF UTILITY SYSTEM REVENUE TO
367-6 BONDED DEBT ON SYSTEM
367-7 Sec. 1501.051. AUTHORITY TO USE UTILITY REVENUE FOR SINKING
367-8 FUND OR INTEREST PAYMENTS
367-9 Sec. 1501.052. EFFECT ON TAXES
367-10 (Sections 1501.053-1501.100 reserved for expansion)
367-11 SUBCHAPTER C. REVENUE BONDS TO FINANCE CERTAIN
367-12 TEXAS-NEW MEXICO ELECTRIC PROPERTIES
367-13 Sec. 1501.101. AUTHORITY TO ACQUIRE AND OPERATE TEXAS-NEW
367-14 MEXICO ELECTRIC PLANT AND SYSTEM
367-15 Sec. 1501.102. AUTHORITY TO ISSUE REVENUE BONDS
367-16 Sec. 1501.103. AUTHORITY TO SELL ELECTRICITY OF PLANT
367-17 AND SYSTEM
367-18 (Sections 1501.104-1501.150 reserved for expansion)
367-19 SUBCHAPTER D. CERTIFICATES OF INDEBTEDNESS TO FINANCE
367-20 JUDGMENTS OR SETTLEMENTS RELATED TO MUNICIPAL NATURAL GAS
367-21 SYSTEM
367-22 Sec. 1501.151. AUTHORITY TO ISSUE CERTIFICATES OF
367-23 INDEBTEDNESS
367-24 Sec. 1501.152. NOTICE OF INTENTION TO ISSUE CERTIFICATES
367-25 OF INDEBTEDNESS
367-26 Sec. 1501.153. PETITION; ELECTION
367-27 Sec. 1501.154. MATURITY
368-1 Sec. 1501.155. SIGNATURES; SEAL
368-2 Sec. 1501.156. SALE OF CERTIFICATES
368-3 Sec. 1501.157. USE OF PROCEEDS
368-4 Sec. 1501.158. IMPOSITION OF AD VALOREM TAX
368-5 (Sections 1501.159-1501.200 reserved for expansion)
368-6 SUBCHAPTER E. BONDS FOR IMPROVEMENT OF WATER AND
368-7 SEWER SYSTEMS IN MUNICIPALITIES WITH POPULATION OF
368-8 MORE THAN 275,000
368-9 Sec. 1501.201. APPLICABILITY OF SUBCHAPTER
368-10 Sec. 1501.202. DEFINITIONS
368-11 Sec. 1501.203. AUTHORITY TO ISSUE BONDS
368-12 Sec. 1501.204. PLEDGE OF REVENUE
368-13 Sec. 1501.205. NOTICE OF INTENTION TO ISSUE BONDS
368-14 Sec. 1501.206. PETITION; ELECTION
368-15 Sec. 1501.207. SALE OF DISTRICT PROPERTY
368-16 Sec. 1501.208. INTEREST AND SINKING FUND OF DISTRICT
368-17 Sec. 1501.209. INVESTMENT OF MONEY IN INTEREST AND SINKING
368-18 FUND
368-19 Sec. 1501.210. PAYMENT OF OUTSTANDING BONDS
368-20 Sec. 1501.211. ORDINANCE SPECIFYING DATE OF PASSAGE OF
368-21 TITLE; ABOLITION OF DISTRICT
368-22 Sec. 1501.212. OPERATION AND MANAGEMENT OF PROPERTIES
368-23 Sec. 1501.213. SEGREGATION OF PROPERTIES
368-24 (Sections 1501.214-1501.250 reserved for expansion)
368-25 SUBCHAPTER F. ALTERNATIVE WATER SUPPLY FINANCING PROCEDURE
368-26 FOR MUNICIPALITIES WITH POPULATION OF MORE THAN 275,000
368-27 Sec. 1501.251. APPLICABILITY OF SUBCHAPTER
369-1 Sec. 1501.252. ALTERNATIVE FINANCING PROCEDURE
369-2 Sec. 1501.253. WATER SUPPLY PROJECT OWNERSHIP AND
369-3 RESPONSIBILITIES
369-4 Sec. 1501.254. ORDINANCE AUTHORIZING AND ISSUANCE OF BONDS
369-5 Sec. 1501.255. NOTICE OF INTENTION TO ISSUE BONDS
369-6 Sec. 1501.256. PETITION; ELECTION
369-7 Sec. 1501.257. MATURITY
369-8 Sec. 1501.258. SIGNATURES
369-9 Sec. 1501.259. SALE OF BONDS
369-10 Sec. 1501.260. INTERIM BONDS
369-11 Sec. 1501.261. RATES, TOLLS, AND CHARGES
369-12 Sec. 1501.262. DEPOSIT AND USE OF BOND PROCEEDS
369-13 Sec. 1501.263. REFUNDING BONDS
369-14 Sec. 1501.264. CONFLICT WITH OTHER LAW
369-15 CHAPTER 1501. OBLIGATIONS FOR MUNICIPAL UTILITIES
369-16 SUBCHAPTER A. REVENUE BONDS FOR CERTAIN SEWAGE
369-17 DISPOSAL FACILITIES
369-18 Sec. 1501.001. APPLICABILITY OF SUBCHAPTER. This subchapter
369-19 applies only to a municipality that owns a sewer system and
369-20 disposal plant that serves:
369-21 (1) other municipalities; and
369-22 (2) territory and military establishments outside the
369-23 municipal boundaries. (V.A.C.S. Art. 1118s, Sec. 1.)
369-24 Sec. 1501.002. AUTHORITY TO ISSUE BONDS. A municipality by
369-25 ordinance may issue bonds to finance the purchase or construction
369-26 of an additional sewage disposal facility. (V.A.C.S. Art. 1118s,
369-27 Sec. 2 (part).)
370-1 Sec. 1501.003. PLEDGE OF REVENUE. (a) A municipality may
370-2 secure bonds issued under this subchapter by a pledge of the net
370-3 revenue from sewer service provided outside the municipal
370-4 boundaries.
370-5 (b) Bonds issued under this subchapter may be additionally
370-6 secured by a pledge of all or part of the net revenue from sewer
370-7 service provided inside the municipal boundaries.
370-8 (c) In the ordinance authorizing the issuance of bonds
370-9 secured only by the net revenue from sewer service provided outside
370-10 the municipal boundaries, the municipality may:
370-11 (1) specify each item of expense or portion of the
370-12 item to be deducted to compute that net revenue; or
370-13 (2) prescribe another formula the governing body of
370-14 the municipality considers appropriate to compute that net revenue.
370-15 (V.A.C.S. Art. 1118s, Sec. 2 (part).)
370-16 Sec. 1501.004. AUTHORITY TO ISSUE ADDITIONAL BONDS. In
370-17 issuing bonds under this subchapter, the municipality may reserve
370-18 the right to issue additional bonds to the extent and subject to
370-19 any condition included in the ordinance authorizing the bonds.
370-20 (V.A.C.S. Art. 1118s, Sec. 2 (part).)
370-21 Sec. 1501.005. CONTRACTS. A municipality may contract with
370-22 another municipality, a person or corporation, or the United States
370-23 to provide sewer service. (V.A.C.S. Art. 1118s, Sec. 3 (part).)
370-24 Sec. 1501.006. RATES FOR SERVICE. (a) The governing body
370-25 of a municipality that issues bonds under this subchapter shall
370-26 establish rates for sewer service in amounts sufficient to:
370-27 (1) pay:
371-1 (A) maintenance and operation expenses;
371-2 (B) the bonds as they are scheduled to mature;
371-3 and
371-4 (C) interest on the bonds as it accrues; and
371-5 (2) establish and maintain any fund provided in the
371-6 ordinance authorizing the bonds.
371-7 (b) Notwithstanding Subsection (a), the municipality may
371-8 not, during the term of a contract for sewer service, increase the
371-9 amount of the consideration for that service specified in the
371-10 contract except:
371-11 (1) as the contract provides; or
371-12 (2) as the parties to the contract agree. (V.A.C.S.
371-13 Art. 1118s, Sec. 4.)
371-14 Sec. 1501.007. OTHER LAW APPLICABLE; ELECTION NOT REQUIRED.
371-15 (a) Subtitles A and C and Subchapter B, Chapter 1502, apply to the
371-16 issuance of bonds under this subchapter except as provided by this
371-17 subchapter.
371-18 (b) An election is not required to authorize the issuance of
371-19 bonds under this subchapter. (V.A.C.S. Art. 1118s, Sec. 5 (part).)
371-20 (Sections 1501.008-1501.050 reserved for expansion)
371-21 SUBCHAPTER B. APPLICATION OF UTILITY SYSTEM REVENUE TO
371-22 BONDED DEBT ON SYSTEM
371-23 Sec. 1501.051. AUTHORITY TO USE UTILITY REVENUE FOR SINKING
371-24 FUND OR INTEREST PAYMENTS. (a) The governing body of a
371-25 municipality may appropriate the net revenue from any municipal
371-26 public utility system, service, or enterprise, in the amount that
371-27 the governing body determines is in the best interest of the
372-1 municipality, to:
372-2 (1) the credit of the sinking fund for any bonded debt
372-3 incurred because of the utility system, service, or enterprise; or
372-4 (2) the payment of any interest on the bonded debt
372-5 incurred because of that utility system, service, or enterprise.
372-6 (b) A governing body that makes an appropriation under
372-7 Subsection (a) must make the appropriation:
372-8 (1) at the end of the municipality's fiscal year; and
372-9 (2) before the governing body adopts a tax rate for
372-10 that fiscal year. (V.A.C.S. Art. 1106 (part).)
372-11 Sec. 1501.052. EFFECT ON TAXES. (a) If in any fiscal year
372-12 the amount of revenue appropriated under Section 1501.051 is at
372-13 least equal to the amount needed for the sinking fund and to pay
372-14 interest on the bonded indebtedness in that fiscal year, the
372-15 governing body of the municipality is not required to impose a tax
372-16 for that purpose.
372-17 (b) If the amount of revenue appropriated under Section
372-18 1501.051 is less than the amount needed for the sinking fund and to
372-19 pay interest in the fiscal year, the governing body shall adopt a
372-20 tax rate for that year sufficient to generate the amount of taxes
372-21 necessary to credit or pay the deficiency in that year.
372-22 (c) This section does not authorize a municipality to exceed
372-23 a limitation on taxes. (V.A.C.S. Art. 1106 (part).)
372-24 (Sections 1501.053-1501.100 reserved for expansion)
372-25 SUBCHAPTER C. REVENUE BONDS TO FINANCE CERTAIN
372-26 TEXAS-NEW MEXICO ELECTRIC PROPERTIES
372-27 Sec. 1501.101. AUTHORITY TO ACQUIRE AND OPERATE TEXAS-NEW
373-1 MEXICO ELECTRIC PLANT AND SYSTEM. A municipality that receives
373-2 electricity from a privately owned electric plant and system, part
373-3 of which is located in New Mexico, including a facility for the
373-4 generation or transmission of electricity distributed in part to
373-5 residents of the municipality, may acquire, own, and operate all or
373-6 any part of that electric plant and system. (V.A.C.S. Art. 1108a,
373-7 Sec. 1 (part).)
373-8 Sec. 1501.102. AUTHORITY TO ISSUE REVENUE BONDS. A
373-9 municipality may issue revenue bonds in the manner provided by
373-10 general law to finance the acquisition of any part of the electric
373-11 plant and system under Section 1501.101. (V.A.C.S. Art. 1108a,
373-12 Sec. 1 (part).)
373-13 Sec. 1501.103. AUTHORITY TO SELL ELECTRICITY OF PLANT AND
373-14 SYSTEM. A municipality that acquires an electric plant and system
373-15 under Section 1501.101 may:
373-16 (1) sell electricity either at retail or wholesale for
373-17 distribution in New Mexico; and
373-18 (2) enter into a sales agreement for the electricity
373-19 as the governing body of the municipality provides. (V.A.C.S.
373-20 Art. 1108a, Sec. 2.)
373-21 (Sections 1501.104-1501.150 reserved for expansion)
373-22 SUBCHAPTER D. CERTIFICATES OF INDEBTEDNESS TO FINANCE
373-23 JUDGMENTS OR SETTLEMENTS RELATED TO MUNICIPAL NATURAL GAS
373-24 SYSTEM
373-25 Sec. 1501.151. AUTHORITY TO ISSUE CERTIFICATES OF
373-26 INDEBTEDNESS. The governing body of a general-law municipality may
373-27 authorize the issuance of certificates of indebtedness to pay:
374-1 (1) a final judgment of a court in a lawsuit arising
374-2 from the municipality's operation of a natural gas system the
374-3 municipality owns; or
374-4 (2) a settlement of such a lawsuit. (V.A.C.S.
374-5 Art. 1108b, Secs. 1, 2 (part).)
374-6 Sec. 1501.152. NOTICE OF INTENTION TO ISSUE CERTIFICATES OF
374-7 INDEBTEDNESS. (a) The governing body of the municipality may not
374-8 authorize the issuance of certificates of indebtedness under this
374-9 subchapter until the municipality gives notice of the
374-10 municipality's intention to issue the certificates.
374-11 (b) The notice must:
374-12 (1) be published in a newspaper of general circulation
374-13 in the municipality once each week for two consecutive weeks, with
374-14 the first publication being before the 14th day before the date the
374-15 governing body proposes to adopt the ordinance authorizing the
374-16 issuance of the certificates of indebtedness; and
374-17 (2) state:
374-18 (A) the time and place the governing body of the
374-19 municipality proposes to authorize the issuance;
374-20 (B) the maximum amount of the certificates to be
374-21 issued; and
374-22 (C) the purpose for which the certificates are
374-23 to be issued. (V.A.C.S. Art. 1108b, Sec. 3(a).)
374-24 Sec. 1501.153. PETITION; ELECTION. (a) If, before the
374-25 certificates of indebtedness are authorized, a petition is filed
374-26 with the secretary or clerk of the municipality protesting the
374-27 issuance of the certificates that is signed by at least five
375-1 percent of the registered voters of the municipality, the
375-2 municipality may not issue the certificates unless a proposition
375-3 for the issuance of the certificates is approved at an election
375-4 held for that purpose.
375-5 (b) The governing body shall hold the election in the manner
375-6 provided by Chapter 1251 for a bond election. (V.A.C.S.
375-7 Art. 1108b, Sec. 3(b).)
375-8 Sec. 1501.154. MATURITY. A certificate of indebtedness
375-9 issued under this subchapter must mature not later than 20 years
375-10 after its date. (V.A.C.S. Art. 1108b, Sec. 2 (part).)
375-11 Sec. 1501.155. SIGNATURES; SEAL. A certificate of
375-12 indebtedness issued under this subchapter must:
375-13 (1) be signed by the mayor and the secretary or clerk
375-14 of the municipality; and
375-15 (2) bear the seal of the municipality. (V.A.C.S.
375-16 Art. 1108b, Sec. 2 (part).)
375-17 Sec. 1501.156. SALE OF CERTIFICATES. (a) A municipality
375-18 may sell certificates of indebtedness issued under this subchapter:
375-19 (1) at a public or private sale;
375-20 (2) on terms the governing body of the municipality
375-21 determines; and
375-22 (3) with an option to prepay principal as the
375-23 governing body of the municipality considers advisable.
375-24 (b) A municipality shall sell the certificates for cash.
375-25 (V.A.C.S. Art. 1108b, Sec. 2 (part).)
375-26 Sec. 1501.157. USE OF PROCEEDS. A municipality shall use
375-27 the proceeds from the sale of certificates of indebtedness issued
376-1 under this subchapter for a purpose authorized by this subchapter.
376-2 (V.A.C.S. Art. 1108b, Sec. 2 (part).)
376-3 Sec. 1501.158. IMPOSITION OF AD VALOREM TAX. The governing
376-4 body of the municipality shall impose an annual ad valorem tax
376-5 sufficient to pay when due the principal of and interest on each
376-6 certificate of indebtedness issued under this subchapter.
376-7 (V.A.C.S. Art. 1108b, Sec. 4.)
376-8 (Sections 1501.159-1501.200 reserved for expansion)
376-9 SUBCHAPTER E. BONDS FOR IMPROVEMENT OF WATER AND
376-10 SEWER SYSTEMS IN MUNICIPALITIES WITH POPULATION OF
376-11 MORE THAN 275,000
376-12 Sec. 1501.201. APPLICABILITY OF SUBCHAPTER. This subchapter
376-13 applies only to:
376-14 (1) a municipality that has:
376-15 (A) a population of more than 275,000; and
376-16 (B) a municipal water and sewer system operated
376-17 by a water board; and
376-18 (2) a water control and improvement district that:
376-19 (A) is located in whole or in part within the
376-20 boundaries of a municipality described by Subdivision (1); and
376-21 (B) owns district property that is operated,
376-22 under a contract between a municipality described by Subdivision
376-23 (1) and the district, by a water board established by the charter
376-24 of the municipality or by ordinance. (V.A.C.S. Art. 1110d,
376-25 Sec. 1.)
376-26 Sec. 1501.202. DEFINITIONS. In this subchapter:
376-27 (1) "District property" means water or sewer property
377-1 owned by a water control and improvement district that a
377-2 municipality can use as, or use as an improvement or extension of,
377-3 the water and sewer system of the municipality.
377-4 (2) "Water board" means a board of trustees or public
377-5 service board. (V.A.C.S. Art. 1110d, Sec. 2 (part); New.)
377-6 Sec. 1501.203. AUTHORITY TO ISSUE BONDS. A municipality may
377-7 issue bonds to pay for the purchase of district property to improve
377-8 or extend the municipal water and sewer system. (V.A.C.S.
377-9 Art. 1110d, Secs. 2 (part), 3 (part).)
377-10 Sec. 1501.204. PLEDGE OF REVENUE. Bonds issued under this
377-11 subchapter must be secured by a pledge of and be payable from the
377-12 net revenue of the municipal water and sewer system, including any
377-13 district property purchased with the bond proceeds. (V.A.C.S.
377-14 Art. 1110d, Sec. 3 (part).)
377-15 Sec. 1501.205. NOTICE OF INTENTION TO ISSUE BONDS. (a) A
377-16 municipality may not issue bonds under this subchapter until the
377-17 mayor of the municipality gives notice of the municipality's
377-18 intention to issue the bonds.
377-19 (b) The notice must:
377-20 (1) be published in a newspaper of general circulation
377-21 in the municipality once each week for two consecutive weeks, with
377-22 the first publication being before the 14th day before the date the
377-23 governing body of the municipality proposes to adopt an ordinance
377-24 authorizing the issuance of the bonds; and
377-25 (2) state the maximum:
377-26 (A) amount of bonds to be issued;
377-27 (B) interest rate of the bonds; and
378-1 (C) maturity of the bonds. (V.A.C.S.
378-2 Art. 1110d, Sec. 4 (part).)
378-3 Sec. 1501.206. PETITION; ELECTION. (a) If, before the date
378-4 the governing body of the municipality proposes to adopt the
378-5 ordinance authorizing the issuance of the bonds, a petition is
378-6 filed with the secretary or clerk of the municipality requesting an
378-7 election on the issuance of the bonds that is signed by at least 10
378-8 percent of the registered voters of the municipality, the
378-9 municipality may not issue the bonds unless a proposition for the
378-10 issuance of the bonds is approved by a majority of the qualified
378-11 voters of the municipality voting at an election held for that
378-12 purpose.
378-13 (b) The governing body shall hold the election in the manner
378-14 provided by Chapter 1251. (V.A.C.S. Art. 1110d, Sec. 4 (part).)
378-15 Sec. 1501.207. SALE OF DISTRICT PROPERTY. A district may
378-16 sell to a municipality, and the municipality may buy, district
378-17 property only if the purchase price paid, when added to other
378-18 applicable money of the district, is sufficient to provide for the
378-19 payment of:
378-20 (1) all outstanding district bonds, including interest
378-21 on the bonds to:
378-22 (A) the maturity dates of the bonds; or
378-23 (B) the dates the district sets for redemption
378-24 of the bonds;
378-25 (2) any required redemption premium; and
378-26 (3) any applicable fee of the bank of payment.
378-27 (V.A.C.S. Art. 1110d, Secs. 3 (part), 5.)
379-1 Sec. 1501.208. INTEREST AND SINKING FUND OF DISTRICT. (a)
379-2 The interest and sinking fund of a district must be permanently
379-3 maintained in the bank where bonds of the district are payable.
379-4 (b) A district to which money is paid under Section 1501.207
379-5 shall promptly deposit that money, as well as other applicable
379-6 money and investments of the district, to the credit of the
379-7 interest and sinking fund of the district.
379-8 (c) A bank of payment that receives a deposit of money or an
379-9 investment shall hold that money or investment in trust for the
379-10 benefit of the holders of outstanding bonds of the district.
379-11 (V.A.C.S. Art. 1110d, Sec. 6 (part).)
379-12 Sec. 1501.209. INVESTMENT OF MONEY IN INTEREST AND SINKING
379-13 FUND. (a) The district's interest and sinking fund must be:
379-14 (1) immediately invested in direct obligations of the
379-15 United States;
379-16 (2) deposited in a bank or savings and loan
379-17 association, to the extent that the deposit is insured by an agency
379-18 of the United States; or
379-19 (3) placed in a combination of investments described
379-20 by Subdivision (1) and deposits described by Subdivision (2).
379-21 (b) An investment of the district's interest and sinking
379-22 fund must mature and produce income, without reinvestment, at times
379-23 and in amounts sufficient to pay:
379-24 (1) the principal of the district's bonds as it
379-25 becomes due;
379-26 (2) interest on the district's bonds as it becomes
379-27 due;
380-1 (3) any redemption premium on the redemption date; and
380-2 (4) any applicable fee of the bank of payment.
380-3 (c) The district shall apply money that exceeds the amount
380-4 needed under Subsection (b) to the payment of other debts of the
380-5 district.
380-6 (d) On request of the water board that operates property
380-7 purchased under this subchapter, the bank in which the interest and
380-8 sinking fund of the district is maintained shall pay to the water
380-9 board any money or investment in that fund that exceeds the amount
380-10 needed under Subsection (b). (V.A.C.S. Art. 1110d, Secs. 6 (part),
380-11 7, 8, 12.)
380-12 Sec. 1501.210. PAYMENT OF OUTSTANDING BONDS. After money
380-13 has been deposited with the bank where the outstanding district
380-14 bonds are payable, the district or the municipality may pay off any
380-15 outstanding district bonds if the money and investments that would
380-16 remain to the credit of the interest and sinking fund are
380-17 sufficient to provide for the payment of:
380-18 (1) all of the remaining outstanding bonds of the
380-19 district;
380-20 (2) the interest on the remaining outstanding bonds of
380-21 the district to:
380-22 (A) the maturity dates of the bonds; or
380-23 (B) the date set by the district for redemption
380-24 of its bonds; and
380-25 (3) any required redemption premium. (V.A.C.S.
380-26 Art. 1110d, Sec. 11.)
380-27 Sec. 1501.211. ORDINANCE SPECIFYING DATE OF PASSAGE OF
381-1 TITLE; ABOLITION OF DISTRICT. (a) After a municipality pays the
381-2 purchase money for district property and that money is invested in
381-3 compliance with Section 1501.209, the governing body of the
381-4 municipality by ordinance shall specify the date on which title to
381-5 that property passed or will pass to the municipality. The date
381-6 specified may be the first day of the fiscal year in which the
381-7 municipality purchases the district property.
381-8 (b) Title to the district property vests in the municipality
381-9 for all purposes on the date specified in the ordinance.
381-10 (c) The governing body of the municipality shall abolish the
381-11 district by the ordinance required by Subsection (a) or a
381-12 subsequent ordinance. (V.A.C.S. Art. 1110d, Sec. 9 (part).)
381-13 Sec. 1501.212. OPERATION AND MANAGEMENT OF PROPERTIES.
381-14 After the governing body of a municipality abolishes a district
381-15 under Section 1501.211, the water board that manages the other
381-16 water and sewer properties of the municipality:
381-17 (1) shall operate and manage the district property
381-18 purchased under this subchapter; and
381-19 (2) may integrate that property into the municipal
381-20 water and sewer system to any extent. (V.A.C.S. Art. 1110d, Secs.
381-21 9 (part), 10 (part).)
381-22 Sec. 1501.213. SEGREGATION OF PROPERTIES. (a)
381-23 Notwithstanding Section 1501.212(2), the payment or security of the
381-24 district's outstanding bonds may not be impaired.
381-25 (b) If money is not available at the bank of payment for the
381-26 district's bonds to pay the principal of or the interest on the
381-27 bonds as it becomes due, the water board shall segregate from the
382-1 municipal water and sewer system all district property purchased
382-2 under this subchapter, including any replacement, renewal, or
382-3 improvements of that property.
382-4 (c) The segregation of property must be accomplished so that
382-5 the district property:
382-6 (1) is a complete and operating system; and
382-7 (2) serves substantially the same area as the district
382-8 property served when title to the property vested in the
382-9 municipality.
382-10 (d) After segregation, the water board:
382-11 (1) shall maintain and operate the district system
382-12 separately;
382-13 (2) shall comply with the resolutions authorizing the
382-14 district's outstanding bonds; and
382-15 (3) has each power, duty, and obligation previously
382-16 held by the district's board of directors regarding the:
382-17 (A) maintenance and operation of the system;
382-18 (B) handling of the district's funds; and
382-19 (C) payment of the district's outstanding bonds.
382-20 (e) For purposes of Subsection (d), the water board is a
382-21 body corporate and occupies the same position as the district's
382-22 board of directors. (V.A.C.S. Art. 1110d, Sec. 10 (part).)
382-23 (Sections 1501.214-1501.250 reserved for expansion)
382-24 SUBCHAPTER F. ALTERNATIVE WATER SUPPLY FINANCING PROCEDURE FOR
382-25 MUNICIPALITIES WITH POPULATION OF MORE THAN 275,000
382-26 Sec. 1501.251. APPLICABILITY OF SUBCHAPTER. This subchapter
382-27 applies only to a municipality:
383-1 (1) that has a population of more than 275,000;
383-2 (2) in which a majority of the qualified voters voting
383-3 in an election have voted to authorize the municipality to contract
383-4 with a river authority created under Section 59, Article XVI, Texas
383-5 Constitution, to acquire a water supply project from that
383-6 authority; and
383-7 (3) that holds a permit issued by the Texas Natural
383-8 Resource Conservation Commission for the municipality to use the
383-9 water supply. (V.A.C.S. Art. 1109h, Sec. 1.)
383-10 Sec. 1501.252. ALTERNATIVE FINANCING PROCEDURE. (a) This
383-11 subchapter does not affect the right of a municipality or a river
383-12 authority to finance all of the cost of a water supply project, or
383-13 any part of the cost of the project that is not payable by the
383-14 municipality, by revenue bonds issued by the river authority and
383-15 based on the contract described by Section 1501.251(2).
383-16 (b) The municipality and river authority may amend the
383-17 contract described by Section 1501.251(2) to implement the
383-18 financing procedure provided by this subchapter, including amending
383-19 the contract to:
383-20 (1) define the extent of the municipality's rights in
383-21 the water supply project;
383-22 (2) prescribe arrangements for auditing the funds and
383-23 accounts used in the construction program; and
383-24 (3) provide procedures under which the municipality
383-25 will make available to the river authority proceeds from revenue
383-26 bonds issued under this subchapter, as necessary to pay
383-27 construction costs, including:
384-1 (A) the cost of the municipality's intake
384-2 structures and pumping and filtration equipment; and
384-3 (B) the portion of costs that, under the
384-4 contract, the river authority is not required to pay by the
384-5 proceeds of the authority's revenue bonds.
384-6 (c) The municipality may:
384-7 (1) issue its revenue bonds, payable from the revenues
384-8 of the municipality's:
384-9 (A) waterworks system; or
384-10 (B) waterworks and sanitary sewer system, if the
384-11 systems are combined in the municipality; and
384-12 (2) use the proceeds of the bonds as provided by this
384-13 subchapter. (V.A.C.S. Art. 1109h, Sec. 2.)
384-14 Sec. 1501.253. WATER SUPPLY PROJECT OWNERSHIP AND
384-15 RESPONSIBILITIES. (a) The water supply project of the river
384-16 authority may consist of:
384-17 (1) a dam;
384-18 (2) a reservoir;
384-19 (3) related outlet facilities; and
384-20 (4) land, easements, or flowage rights.
384-21 (b) The river authority shall construct and operate the
384-22 water supply project.
384-23 (c) The river authority shall own the property and each
384-24 facility of the water supply project except for any part of the
384-25 water supply project property that the municipality owns under the
384-26 contract between the municipality and the river authority.
384-27 (d) Except for the water supply project and any facility the
385-1 contract between the municipality and the river authority
385-2 specifies, the municipality shall own, construct, and operate any
385-3 other facility needed to deliver to the municipality treated water
385-4 from the water supply project, including:
385-5 (1) the intake structure;
385-6 (2) pumping stations, pipelines, and equipment;
385-7 (3) treatment and filtration plants;
385-8 (4) all intermediate and terminal reservoirs,
385-9 including intermediate reservoirs used to store water from the
385-10 water supply project; and
385-11 (5) pumping and pipeline facilities to convey water to
385-12 and from intermediate reservoirs. (V.A.C.S. Art. 1109h, Sec. 4
385-13 (part).)
385-14 Sec. 1501.254. ORDINANCE AUTHORIZING AND ISSUANCE OF BONDS.
385-15 (a) When the designs, plans, and specifications of the water
385-16 supply project of the river authority are complete to the extent
385-17 that they have been approved by the governing bodies of the
385-18 authority and the municipality, the governing body of the
385-19 municipality by ordinance may authorize the issuance of revenue
385-20 bonds in the amount estimated to be sufficient to pay:
385-21 (1) the entire cost of the water supply project to be
385-22 incurred by the river authority, including interest during
385-23 construction; or
385-24 (2) the portion of the cost of the water supply
385-25 project the municipality has contracted to pay.
385-26 (b) The governing body of the municipality may issue the
385-27 bonds in an amount sufficient to pay:
386-1 (1) the cost of providing the facilities described by
386-2 Section 1501.253(d), including any land, easement, or right-of-way
386-3 needed for a facility; and
386-4 (2) interest during construction.
386-5 (c) The ordinance may reserve the right, and specify the
386-6 conditions under which the right may be exercised, to issue
386-7 additional revenue bonds on a parity with or subordinate to the
386-8 original bonds.
386-9 (d) The ordinance must provide that all deposits to the
386-10 credit of the interest and sinking fund, the reserve fund, or
386-11 another fund must be made from the revenue from the waterworks
386-12 system of the municipality, or the waterworks and sanitary sewer
386-13 system of the municipality if those systems are combined.
386-14 (V.A.C.S. Art. 1109h, Secs. 4 (part), 5(a) (part), (b), (d)
386-15 (part).)
386-16 Sec. 1501.255. NOTICE OF INTENTION TO ISSUE BONDS. (a) The
386-17 governing body of the municipality may not adopt an ordinance
386-18 authorizing the issuance of bonds under this subchapter until the
386-19 governing body gives notice of the time it proposes to adopt the
386-20 ordinance.
386-21 (b) The notice must be published in at least two issues of a
386-22 newspaper of general circulation in the municipality, with the
386-23 first publication being before the 14th day before the date the
386-24 governing body proposes to adopt the ordinance. (V.A.C.S.
386-25 Art. 1109h, Sec. 3 (part).)
386-26 Sec. 1501.256. PETITION; ELECTION. (a) If, before the
386-27 governing body of the municipality is scheduled to adopt the
387-1 ordinance authorizing the bonds, a petition is filed with the
387-2 secretary of the municipality requesting an election on the
387-3 issuance of the bonds that is signed by at least 10 percent of the
387-4 registered voters who are resident owners of taxable property in
387-5 the municipality, the municipality may not issue the bonds unless a
387-6 proposition for the issuance of the bonds is approved by a majority
387-7 of the qualified voters of the municipality voting at an election
387-8 held for that purpose.
387-9 (b) The governing body may hold an election on the issuance
387-10 of the bonds regardless of whether a petition is filed.
387-11 (c) The governing body shall hold the election in the manner
387-12 provided by Chapter 1251. (V.A.C.S. Art. 1109h, Sec. 3 (part).)
387-13 Sec. 1501.257. MATURITY. Bonds issued under this subchapter
387-14 must mature within 40 years, as provided by the ordinance
387-15 authorizing the issuance of the bonds. (V.A.C.S. Art. 1109h, Sec.
387-16 5(a) (part).)
387-17 Sec. 1501.258. SIGNATURES. A bond issued under this
387-18 subchapter must be signed by:
387-19 (1) the mayor; and
387-20 (2) another designated officer of the municipality.
387-21 (V.A.C.S. Art. 1109h, Sec. 5(a) (part).)
387-22 Sec. 1501.259. SALE OF BONDS. A municipality may sell bonds
387-23 issued under this subchapter under terms the governing body of the
387-24 municipality determines to be the most advantageous and reasonably
387-25 obtainable. (V.A.C.S. Art. 1109h, Sec. 5(a) (part).)
387-26 Sec. 1501.260. INTERIM BONDS. Pending the issuance of
387-27 definitive bonds under this subchapter, the municipality may
388-1 authorize the delivery of negotiable interim bonds exchangeable for
388-2 definitive bonds. (V.A.C.S. Art. 1109h, Sec. 5(e).)
388-3 Sec. 1501.261. RATES, TOLLS, AND CHARGES. After bonds are
388-4 issued under this subchapter, the governing body of the
388-5 municipality shall establish the rates, tolls, and charges for
388-6 service provided by the municipality's waterworks system, or
388-7 combined waterworks and sanitary sewer system if appropriate, in
388-8 amounts sufficient to:
388-9 (1) pay the cost of operating and maintaining the
388-10 system;
388-11 (2) pay when due the principal of and interest on the
388-12 bonds; and
388-13 (3) establish and maintain the reserve fund and other
388-14 funds prescribed by the ordinance authorizing the bonds. (V.A.C.S.
388-15 Art. 1109h, Sec. 5(c).)
388-16 Sec. 1501.262. DEPOSIT AND USE OF BOND PROCEEDS. (a) The
388-17 governing body of the municipality:
388-18 (1) shall provide for the deposit of money to the
388-19 credit of the interest and sinking fund, the reserve fund, and
388-20 other funds as prescribed by the ordinance authorizing the bonds;
388-21 and
388-22 (2) may provide for all or part of the bond proceeds
388-23 to be deposited to the credit of those funds as necessary to pay
388-24 interest during construction and for an additional period not to
388-25 exceed two years.
388-26 (b) The municipality shall deposit the bond proceeds to the
388-27 credit of a fund to be used solely to pay:
389-1 (1) the cost of issuing and selling the bonds;
389-2 (2) the construction cost of any part of the water
389-3 supply project that the contract between the municipality and the
389-4 river authority obligates the municipality to provide; and
389-5 (3) the construction cost of any part of the
389-6 facilities to be constructed, owned, and operated by the
389-7 municipality as provided by Section 1501.253.
389-8 (c) Before the use of the bond proceeds for construction or
389-9 during the period of construction, the municipality may:
389-10 (1) invest the proceeds in bonds or other direct
389-11 obligations of the United States; and
389-12 (2) sell the investments as directed by the governing
389-13 body for construction purposes when necessary. (V.A.C.S.
389-14 Art. 1109h, Secs. 5(d) (part), (h).)
389-15 Sec. 1501.263. REFUNDING BONDS. (a) A municipality may
389-16 issue refunding bonds to refund outstanding bonds issued under this
389-17 subchapter and interest on the outstanding bonds. The municipality
389-18 may issue refunding bonds without holding an election to approve
389-19 the issuance.
389-20 (b) The municipality may provide additional security for the
389-21 refunding bonds.
389-22 (c) The comptroller shall register the refunding bonds on
389-23 the surrender and cancellation of the bonds to be refunded.
389-24 (d) In lieu of issuing bonds to be registered on the
389-25 surrender and cancellation of the bonds to be refunded, the
389-26 municipality, in the ordinance authorizing the issuance of the
389-27 refunding bonds, may provide for the sale of the refunding bonds
390-1 and the deposit of the proceeds in a bank at which the bonds to be
390-2 refunded are payable. In that case, the refunding bonds may be
390-3 issued in an amount sufficient to pay the interest on the bonds to
390-4 be refunded to their maturity date or redemption date and the
390-5 amount of any call premium, and the comptroller shall register the
390-6 refunding bonds without the surrender and cancellation of the bonds
390-7 to be refunded. (V.A.C.S. Art. 1109h, Sec. 5(f).)
390-8 Sec. 1501.264. CONFLICT WITH OTHER LAW. To the extent of a
390-9 conflict or inconsistency between this subchapter and another law
390-10 or a special or home-rule charter, this subchapter controls.
390-11 (V.A.C.S. Art. 1109h, Sec. 7.)
390-12 CHAPTER 1502. OBLIGATIONS FOR MUNICIPAL UTILITIES, PARKS,
390-13 OR POOLS
390-14 SUBCHAPTER A. GENERAL PROVISIONS
390-15 Sec. 1502.001. DEFINITION
390-16 (Sections 1502.002-1502.050 reserved for expansion)
390-17 SUBCHAPTER B. REVENUE BONDS FOR UTILITY SYSTEMS, PARKS, OR POOLS
390-18 Sec. 1502.051. DEFINITIONS
390-19 Sec. 1502.052. AUTHORITY TO BUILD, PURCHASE, OR ENCUMBER
390-20 UTILITY SYSTEM, SANITARY DISPOSAL EQUIPMENT,
390-21 PARK, OR POOL
390-22 Sec. 1502.053. AUTHORITY TO ISSUE BONDS, NOTES, OR
390-23 WARRANTS
390-24 Sec. 1502.054. PLEDGE OF REVENUE
390-25 Sec. 1502.055. GRANT OF FRANCHISE
390-26 Sec. 1502.056. OBLIGATIONS NOT PAYABLE FROM TAXES
390-27 Sec. 1502.057. ELECTION
391-1 Sec. 1502.058. OPERATING EXPENSES AS FIRST LIEN
391-2 Sec. 1502.059. CHARGES FOR SERVICES
391-3 Sec. 1502.060. LIMITATION ON USE OF REVENUE
391-4 Sec. 1502.061. TRANSFER OF REVENUE TO GENERAL FUND
391-5 Sec. 1502.062. USE OF BOND PROCEEDS: MUNICIPALITY WITH
391-6 POPULATION OF 75,000 OR MORE
391-7 Sec. 1502.063. REVENUE BONDS TO IMPROVE WATERWORKS SYSTEM:
391-8 TWO SERIES WITH DIFFERENT SECURITY
391-9 Sec. 1502.064. ADDITIONAL OBLIGATIONS TO IMPROVE OR EXTEND
391-10 UTILITY SYSTEM
391-11 Sec. 1502.065. LIEN PRIORITY: REFUNDING BONDS
391-12 Sec. 1502.066. BONDS FOR ACQUISITION OF HYDROELECTRIC
391-13 GENERATING FACILITIES
391-14 Sec. 1502.067. RECORDS
391-15 Sec. 1502.068. RECORDS: NONCASH BASIS
391-16 Sec. 1502.069. ANNUAL REPORT
391-17 Sec. 1502.070. OFFENSES; PENALTY
391-18 Sec. 1502.071. MANAGEMENT AND CONTROL OF ENCUMBERED
391-19 FACILITY
391-20 Sec. 1502.072. RULES
391-21 Sec. 1502.073. TRUSTEE
391-22 Sec. 1502.074. NOTICE TO GOVERNING BODY BEFORE FORECLOSURE OR
391-23 OTHER ACTION
391-24 Sec. 1502.075. APPROPRIATION OF UTILITY SYSTEM INCOME:
391-25 MUNICIPALITY WITH POPULATION OF 12,410 OR
391-26 LESS
391-27 Sec. 1502.076. CIVIL ENFORCEMENT
392-1 Sec. 1502.077. CONFLICT WITH MUNICIPAL CHARTER
392-2 (Sections 1502.078-1502.100 reserved for expansion)
392-3 SUBCHAPTER C. REVENUE BONDS FOR UTILITY SYSTEMS:
392-4 MUNICIPALITIES OWNING AND OPERATING GAS AND ELECTRIC, WATER, OR
392-5 SEWER SYSTEMS
392-6 Sec. 1502.101. DEFINITIONS
392-7 Sec. 1502.102. APPLICABILITY OF SUBCHAPTER
392-8 Sec. 1502.103. PLEDGE OF REVENUE
392-9 Sec. 1502.104. AUTHORITY TO ENCUMBER UTILITY SYSTEM
392-10 Sec. 1502.105. GRANT OF FRANCHISE
392-11 Sec. 1502.106. OBLIGATIONS NOT PAYABLE FROM TAXES
392-12 Sec. 1502.107. ELECTION
392-13 Sec. 1502.108. OPERATING EXPENSES AS FIRST LIEN
392-14 Sec. 1502.109. CHARGES FOR SERVICES
392-15 Sec. 1502.110. LIMITATION ON USE OF REVENUE
392-16 Sec. 1502.111. MANAGEMENT AND CONTROL OF ENCUMBERED SYSTEM
392-17 Sec. 1502.112. RULES
392-18 Sec. 1502.113. TRUSTEE
392-19 Sec. 1502.114. NOTICE TO GOVERNING BODY BEFORE FORECLOSURE
392-20 OR OTHER ACTION
392-21 Sec. 1502.115. RIGHT OF REPURCHASE
392-22 (Sections 1502.116-1502.150 reserved for expansion)
392-23 SUBCHAPTER D. REVENUE BONDS FOR WATER SYSTEMS:
392-24 MUNICIPALITIES WITH POPULATION OF MORE THAN 160,000
392-25 Sec. 1502.151. APPLICABILITY OF SUBCHAPTER
392-26 Sec. 1502.152. AUTHORITY TO ENCUMBER WATER SYSTEM
392-27 Sec. 1502.153. AUTHORITY TO ISSUE BONDS, NOTES, OR
393-1 OTHER OBLIGATIONS
393-2 Sec. 1502.154. PLEDGE OF REVENUE
393-3 Sec. 1502.155. GRANT OF FRANCHISE
393-4 Sec. 1502.156. OBLIGATIONS NOT PAYABLE FROM TAXES
393-5 Sec. 1502.157. ELECTION: SALE OF WATER SYSTEM
393-6 Sec. 1502.158. ELECTION: BOND OR NOTE ISSUANCE
393-7 Sec. 1502.159. OPERATING EXPENSES AS FIRST LIEN
393-8 Sec. 1502.160. CHARGES FOR SERVICES
393-9 Sec. 1502.161. ADDITIONAL OBLIGATIONS
393-10 Sec. 1502.162. AGREEMENTS REGARDING APPLICATION OF REVENUE
393-11 Sec. 1502.163. AUTHORITY TO BORROW MONEY AND ISSUE BONDS:
393-12 MUNICIPALITY WITH POPULATION OF MORE THAN
393-13 290,000
393-14 Sec. 1502.164. MANAGEMENT AND CONTROL OF ENCUMBERED SYSTEM
393-15 Sec. 1502.165. RULES
393-16 Sec. 1502.166. TRUSTEE
393-17 Sec. 1502.167. NOTICE TO GOVERNING BODY BEFORE FORECLOSURE
393-18 OR OTHER ACTION
393-19 (Sections 1502.168-1502.200 reserved for expansion)
393-20 SUBCHAPTER E. ADDITIONAL WATERWORKS BONDS OR
393-21 WATERWORKS AND SEWER BONDS
393-22 Sec. 1502.201. APPLICABILITY OF SUBCHAPTER
393-23 Sec. 1502.202. AUTHORITY TO ISSUE BONDS
393-24 Sec. 1502.203. COMBINED ISSUANCE
393-25 Sec. 1502.204. ELECTION
393-26 Sec. 1502.205. PRIORITY OF CHARGES AGAINST REVENUE
393-27 Sec. 1502.206. LIMITATION ON ISSUANCE OF ADDITIONAL BONDS
394-1 Sec. 1502.207. COMPTROLLER'S DUTIES
394-2 Sec. 1502.208. COMPTROLLER'S FEES
394-3 Sec. 1502.209. WITHDRAWAL OF DEPOSIT
394-4 Sec. 1502.210. RIGHTS OF HOLDERS
394-5 Sec. 1502.211. CONFLICT OR INCONSISTENCY WITH OTHER LAWS
394-6 (Sections 1502.212-1502.250 reserved for expansion)
394-7 SUBCHAPTER F. ADDITIONAL BONDS FOR EXTENSION, IMPROVEMENT,
394-8 OR ACQUISITION OF WATER SYSTEM
394-9 Sec. 1502.251. APPLICABILITY OF SUBCHAPTER
394-10 Sec. 1502.252. AUTHORITY TO ISSUE BONDS
394-11 Sec. 1502.253. ELECTION
394-12 Sec. 1502.254. PRIORITY OF CHARGES AGAINST REVENUE
394-13 Sec. 1502.255. SALE BY HOME-RULE MUNICIPALITY
394-14 Sec. 1502.256. LIMITATIONS ON ISSUANCE OF ADDITIONAL BONDS
394-15 Sec. 1502.257. SUBROGATION: REFUNDING WATER REVENUE BONDS
394-16 Sec. 1502.258. REFUNDING AGREEMENTS
394-17 Sec. 1502.259. COMPTROLLER'S DUTIES
394-18 Sec. 1502.260. COMPTROLLER'S FEES
394-19 Sec. 1502.261. WITHDRAWAL OF DEPOSIT
394-20 Sec. 1502.262. RIGHTS OF HOLDERS
394-21 Sec. 1502.263. CONFLICT OR INCONSISTENCY WITH OTHER LAW OR
394-22 MUNICIPAL CHARTER
394-23 (Sections 1502.264-1502.300 reserved for expansion)
394-24 SUBCHAPTER G. REFUNDING WATERWORKS AND SEWER BONDS;
394-25 ADDITIONAL BONDS: MUNICIPALITIES NOT AUTHORIZED TO ISSUE
394-26 PARITY BONDS
394-27 Sec. 1502.301. APPLICABILITY OF SUBCHAPTER
395-1 Sec. 1502.302. AUTHORITY TO ISSUE REFUNDING BONDS
395-2 Sec. 1502.303. MATURITY
395-3 Sec. 1502.304. ADDITIONAL BONDS
395-4 Sec. 1502.305. ELECTION
395-5 (Sections 1502.306-1502.350 reserved for expansion)
395-6 SUBCHAPTER H. REFUNDING BONDS: MUNICIPALITIES OWNING AND
395-7 OPERATING COMBINED WATER, SEWER, AND ELECTRIC UTILITY SYSTEMS
395-8 Sec. 1502.351. APPLICABILITY OF SUBCHAPTER
395-9 Sec. 1502.352. AUTHORITY TO ISSUE REFUNDING BONDS
395-10 Sec. 1502.353. SOURCES AVAILABLE FOR PAYMENT
395-11 Sec. 1502.354. COMBINATION ISSUANCE; SUBSEQUENT ISSUANCE
395-12 Sec. 1502.355. ELECTION
395-13 Sec. 1502.356. MATURITY
395-14 Sec. 1502.357. METHOD AND TERMS OF SALE
395-15 Sec. 1502.358. REGISTRATION WITHOUT CANCELLATION OF
395-16 OBLIGATIONS TO BE REFUNDED
395-17 Sec. 1502.359. REDEMPTION
395-18 Sec. 1502.360. INVESTMENT OF PROCEEDS
395-19 Sec. 1502.361. DEPOSIT WITH COMPTROLLER
395-20 Sec. 1502.362. CERTIFICATION OF DEPOSIT ADEQUACY
395-21 Sec. 1502.363. COMPTROLLER TO ACCEPT AND KEEP SAFE DEPOSITS
395-22 Sec. 1502.364. DEPOSITS TO BE HELD IN ESCROW; LIEN; TITLE
395-23 Sec. 1502.365. DEPOSIT BY COMPTROLLER WITH PAYING
395-24 AGENT; PAYING AGENT'S DUTIES
395-25 Sec. 1502.366. RETURN OF SURPLUS
395-26 Sec. 1502.367. COMPTROLLER'S FEES
395-27 Sec. 1502.368. AUTHORITY TO DEPOSIT DIRECTLY WITH
396-1 PAYING AGENT
396-2 Sec. 1502.369. DISCHARGE AND FINAL PAYMENT; REDEMPTION;
396-3 SUBORDINATION
396-4 Sec. 1502.370. RIGHT TO DEMAND OR RECEIVE EARLY PAYMENT
396-5 Sec. 1502.371. CONFLICT OR INCONSISTENCY WITH OTHER LAW
396-6 OR MUNICIPAL CHARTER
396-7 (Sections 1502.372-1502.400 reserved for expansion)
396-8 SUBCHAPTER I. REFUNDING BONDS: ELECTRIC UTILITY SYSTEM OR
396-9 ELECTRIC AND GAS UTILITY SYSTEM
396-10 Sec. 1502.401. APPLICABILITY OF SUBCHAPTER
396-11 Sec. 1502.402. CONSTRUCTION
396-12 Sec. 1502.403. AUTHORITY TO ISSUE REFUNDING BONDS
396-13 Sec. 1502.404. SOURCES AVAILABLE FOR PAYMENT
396-14 Sec. 1502.405. COMBINATION ISSUANCE; SUBSEQUENT ISSUANCE
396-15 Sec. 1502.406. ELECTION
396-16 Sec. 1502.407. MATURITY
396-17 Sec. 1502.408. ISSUANCE IN EXCHANGE FOR OBLIGATIONS TO BE
396-18 REFUNDED
396-19 Sec. 1502.409. CASH SALE
396-20 Sec. 1502.410. REGISTRATION WITHOUT CANCELLATION OF
396-21 OBLIGATIONS TO BE REFUNDED
396-22 Sec. 1502.411. REDEMPTION
396-23 Sec. 1502.412. DEPOSIT WITH COMPTROLLER
396-24 Sec. 1502.413. INVESTMENT OF PROCEEDS
396-25 Sec. 1502.414. DEPOSIT OF INVESTMENTS WITH COMPTROLLER;
396-26 DEPOSIT ADEQUACY
396-27 Sec. 1502.415. COMPTROLLER TO ACCEPT AND KEEP SAFE DEPOSITS
397-1 Sec. 1502.416. DEPOSIT TO BE HELD IN ESCROW; LIEN; TITLE
397-2 Sec. 1502.417. DEPOSIT BY COMPTROLLER WITH PAYING
397-3 AGENT; PAYING AGENT'S DUTIES
397-4 Sec. 1502.418. RETURN OF SURPLUS
397-5 Sec. 1502.419. COMPTROLLER'S FEES
397-6 Sec. 1502.420. AUTHORITY TO DEPOSIT DIRECTLY WITH
397-7 PAYING AGENT
397-8 Sec. 1502.421. DISCHARGE AND FINAL PAYMENT; REDEMPTION;
397-9 SUBORDINATION
397-10 Sec. 1502.422. RIGHT TO DEMAND OR RECEIVE EARLY PAYMENT
397-11 Sec. 1502.423. CONFLICT OR INCONSISTENCY WITH OTHER LAW OR
397-12 MUNICIPAL CHARTER
397-13 (Sections 1502.424-1502.450 reserved for expansion)
397-14 SUBCHAPTER J. COMBINED ISSUE OF REFUNDING AND ADDITIONAL
397-15 BONDS: MUNICIPALITY IN COUNTY WITH POPULATION OF
397-16 525,000 OR MORE
397-17 Sec. 1502.451. APPLICABILITY OF SUBCHAPTER
397-18 Sec. 1502.452. AUTHORITY TO ISSUE BONDS
397-19 Sec. 1502.453. PLEDGE OF REVENUE
397-20 Sec. 1502.454. ENCUMBRANCE OF PHYSICAL PROPERTIES; GRANT OF
397-21 FRANCHISE
397-22 Sec. 1502.455. DESIGNATION
397-23 Sec. 1502.456. MATURITY
397-24 Sec. 1502.457. ELECTION
397-25 Sec. 1502.458. ORDER OF REGISTRATION BY COMPTROLLER
397-26 (Sections 1502.459-1502.500 reserved for expansion)
397-27 SUBCHAPTER K. MISCELLANEOUS ADDITIONAL PARITY BONDS
398-1 Sec. 1502.501. ADDITIONAL BONDS TO EXTEND AND IMPROVE
398-2 ELECTRIC AND GAS UTILITY SYSTEMS
398-3 Sec. 1502.502. ADDITIONAL BONDS PAYABLE FROM WATER AND SEWER
398-4 SYSTEM AND SWIMMING POOL REVENUE
398-5 CHAPTER 1502. OBLIGATIONS FOR MUNICIPAL UTILITIES, PARKS,
398-6 OR POOLS
398-7 SUBCHAPTER A. GENERAL PROVISIONS
398-8 Sec. 1502.001. DEFINITION. In this chapter, "paying agent"
398-9 means the person, including a bank or trust company, at whose
398-10 location payment of a refunded obligation is to be made. (New.)
398-11 (Sections 1502.002-1502.050 reserved for expansion)
398-12 SUBCHAPTER B. REVENUE BONDS FOR UTILITY SYSTEMS, PARKS, OR POOLS
398-13 Sec. 1502.051. DEFINITIONS. In this subchapter:
398-14 (1) "Encumbered facility" means a utility system,
398-15 sanitary disposal system, park, or swimming pool encumbered under
398-16 this subchapter.
398-17 (2) "Utility system" means an electric, water, sewer,
398-18 or natural gas system. (New.)
398-19 Sec. 1502.052. AUTHORITY TO BUILD, PURCHASE, OR ENCUMBER
398-20 UTILITY SYSTEM, SANITARY DISPOSAL EQUIPMENT, PARK, OR POOL. (a) A
398-21 municipality may:
398-22 (1) build, purchase, or encumber a municipal utility
398-23 system, sanitary disposal equipment, a park, or a swimming pool;
398-24 (2) encumber anything acquired or to be acquired that
398-25 relates to a municipal utility system, sanitary disposal equipment,
398-26 a park, or a pool;
398-27 (3) purchase additional water powers or riparian
399-1 rights; or
399-2 (4) improve, enlarge, extend, or repair a municipal
399-3 utility system, sanitary disposal equipment, a park, or a pool.
399-4 (b) A municipality may encumber one or more municipal
399-5 utility systems, items of sanitary disposal equipment, parks, or
399-6 pools to build, purchase, improve, extend, or repair the same or
399-7 another municipal utility system, item of sanitary disposal
399-8 equipment, park, or pool. (V.A.C.S. Art. 1111 (part).)
399-9 Sec. 1502.053. AUTHORITY TO ISSUE BONDS, NOTES, OR WARRANTS.
399-10 A municipality may issue bonds, notes, or warrants to provide money
399-11 to build, purchase, improve, enlarge, extend, or repair a facility
399-12 described by Section 1502.052. (V.A.C.S. Art. 1111 (part).)
399-13 Sec. 1502.054. PLEDGE OF REVENUE. A municipality may pledge
399-14 the revenue and encumber the franchise of a facility described by
399-15 Section 1502.052 to secure the payment of obligations issued under
399-16 this subchapter. (V.A.C.S. Art. 1111 (part).)
399-17 Sec. 1502.055. GRANT OF FRANCHISE. As additional security
399-18 for the encumbrance, the municipality by the terms of the
399-19 encumbrance may grant a purchaser under sale or foreclosure a
399-20 franchise to operate the encumbered facility or property for a term
399-21 not to exceed 20 years from the date of purchase, subject to all
399-22 laws regulating same then in force. (V.A.C.S. Art. 1111 (part).)
399-23 Sec. 1502.056. OBLIGATIONS NOT PAYABLE FROM TAXES. (a) An
399-24 obligation issued under this subchapter:
399-25 (1) is not a debt of the municipality;
399-26 (2) may be a charge only on the encumbered facility or
399-27 property; and
400-1 (3) may not be included in determining the
400-2 municipality's power to issue bonds for any purpose authorized by
400-3 law.
400-4 (b) Each contract, bond, note, or other evidence of
400-5 indebtedness issued or included under this subchapter must contain
400-6 the following provision: "The holder of this obligation is not
400-7 entitled to demand payment of this obligation out of any money
400-8 raised by taxation." (V.A.C.S. Arts. 1111 (part), 1114 (part).)
400-9 Sec. 1502.057. ELECTION. (a) Unless authorized by a
400-10 majority vote of the qualified voters of the municipality, a
400-11 municipality may not:
400-12 (1) encumber a utility system, park, or swimming pool
400-13 for more than $10,000 except to:
400-14 (A) obtain money to acquire, construct, improve,
400-15 extend, or repair a utility system, park, or pool; or
400-16 (B) refund existing debt that was authorized by
400-17 law for a purpose stated in Paragraph (A); or
400-18 (2) sell a utility system, park, or pool.
400-19 (b) The governing body of the municipality shall hold an
400-20 election under this section in the manner provided for bond
400-21 elections in the municipality.
400-22 (c) The encumbrances authorized by this section apply only
400-23 to bonds payable from revenue derived from the encumbered system.
400-24 (d) This section does not apply to the sale of an
400-25 unencumbered natural gas system owned by a municipality with a
400-26 population of more than 1.2 million. (V.A.C.S. Art. 1112.)
400-27 Sec. 1502.058. OPERATING EXPENSES AS FIRST LIEN. (a) If
401-1 the revenue of a utility system, park, or swimming pool is
401-2 encumbered under this subchapter, each expense of operation and
401-3 maintenance, including all salaries, labor, materials, interest,
401-4 repairs and extensions necessary to provide efficient service, and
401-5 each proper item of expense, is a first lien against that revenue.
401-6 (b) An expense for a repair or extension is a first lien
401-7 only if, in the judgment of the governing body of the municipality,
401-8 the repair or extension is necessary to:
401-9 (1) keep the plant or utility system in operation and
401-10 provide adequate service to the municipality and its residents; or
401-11 (2) respond to a physical accident or condition that
401-12 would otherwise impair the original securities. (V.A.C.S.
401-13 Art. 1113 (part).)
401-14 Sec. 1502.059. CHARGES FOR SERVICES. (a) A municipality
401-15 shall impose and collect charges for services provided by an
401-16 encumbered system in amounts at least sufficient to pay:
401-17 (1) all operating, maintenance, depreciation,
401-18 replacement, improvement, and interest charges in connection with
401-19 the encumbered system;
401-20 (2) for an interest and sinking fund sufficient to pay
401-21 any bonds issued to purchase, construct, or improve the encumbered
401-22 system; and
401-23 (3) any outstanding debt against the system.
401-24 (b) The rates charged for services provided by an encumbered
401-25 system must be equal and uniform. A municipality may not allow any
401-26 free service except for:
401-27 (1) municipal public schools; or
402-1 (2) buildings and institutions operated by the
402-2 municipality. (V.A.C.S. Art. 1113 (part).)
402-3 Sec. 1502.060. LIMITATION ON USE OF REVENUE. (a) Except as
402-4 provided by Subsection (b) or by Section 1502.061, a municipality
402-5 may not use the revenue of an encumbered system to pay any other
402-6 debt, expense, or obligation of the municipality until the debt
402-7 secured by the revenue is finally paid.
402-8 (b) This section does not apply to a payment made in lieu of
402-9 ad valorem taxes previously paid by a private owner of an
402-10 encumbered system. (V.A.C.S. Art. 1113 (part).)
402-11 Sec. 1502.061. TRANSFER OF REVENUE TO GENERAL FUND.
402-12 Notwithstanding Section 1502.060(a) or similar law, a municipality
402-13 and its officers and utility trustees may transfer to the
402-14 municipality's general fund and may use for general or special
402-15 purposes revenue of any municipally owned utility system in the
402-16 amount and to the extent authorized in the indenture, deed of
402-17 trust, or ordinance providing for and securing payment of revenue
402-18 bonds issued under this subchapter or similar law. (V.A.C.S.
402-19 Art. 1113a.)
402-20 Sec. 1502.062. USE OF BOND PROCEEDS: MUNICIPALITY WITH
402-21 POPULATION OF 75,000 OR MORE. (a) A municipality with a
402-22 population of 75,000 or more, in issuing bonds under this
402-23 subchapter, as part of the cost of constructing new electric
402-24 utility plant facilities may set aside and use a portion of the
402-25 bond proceeds, to the extent provided in the ordinance authorizing
402-26 the issuance of the bonds:
402-27 (1) to pay interest on bonds, the proceeds of which
403-1 are for the construction of the facilities, to the first interest
403-2 payment date after the date the new electric utility facilities are
403-3 estimated to become operational; and
403-4 (2) to establish or supplement a reserve fund created
403-5 for the benefit of the bond holders.
403-6 (b) The bond proceeds, an interest and sinking fund, or a
403-7 reserve fund, pending their use for their intended purposes, may be
403-8 invested in any security, interest-bearing certificate, or time
403-9 deposit as specified in the proceedings authorizing the issuance of
403-10 the bonds.
403-11 (c) This section controls over any other state law or any
403-12 municipal charter. (V.A.C.S. Art. 1111d, Secs. 1, 2, 3 (part).)
403-13 Sec. 1502.063. REVENUE BONDS TO IMPROVE WATERWORKS SYSTEM:
403-14 TWO SERIES WITH DIFFERENT SECURITY. (a) For the purpose of
403-15 improving, enlarging, or extending a waterworks system, a
403-16 municipality may issue revenue bonds under this subchapter in two
403-17 series as follows:
403-18 (1) one series payable from and secured by a pledge of
403-19 all or part of the proceeds of a contract between the municipality
403-20 and a private corporation under which the municipality agrees to
403-21 sell water to the corporation for specified payments; and
403-22 (2) the other series payable from and secured by a
403-23 pledge of the net revenue of the waterworks system or waterworks
403-24 and sewer systems other than the proceeds of the water supply
403-25 contract.
403-26 (b) The ordinance authorizing the issuance of the bonds may
403-27 provide that the entire cost of operation, maintenance, and repair
404-1 of the system or systems shall be paid from the revenue of the
404-2 system or systems other than the proceeds of the water supply
404-3 contract.
404-4 (c) A municipality may contract to sell water to a private
404-5 corporation on terms prescribed by the municipality's governing
404-6 body for a period not to exceed 40 years. (V.A.C.S. Art. 1111c,
404-7 Sec. 1.)
404-8 Sec. 1502.064. ADDITIONAL OBLIGATIONS TO IMPROVE OR EXTEND
404-9 UTILITY SYSTEM. (a) A municipality that has outstanding bonds
404-10 secured by the net revenue of one or more of its utility systems
404-11 may issue additional bonds or other obligations to improve or
404-12 extend one or more of the utility systems. The additional bonds
404-13 may be payable from the revenue from the operation of the utility
404-14 system or systems that is pledged to the payment of outstanding
404-15 bonds.
404-16 (b) Except as provided by Subsection (c), bonds issued under
404-17 Subsection (a) constitute a lien on the revenue of the affected
404-18 system:
404-19 (1) in the order of issuance; and
404-20 (2) inferior to a lien securing payment of outstanding
404-21 bonds.
404-22 (c) A municipality may issue additional bonds or series of
404-23 bonds under this section on a parity and of equal dignity with the
404-24 outstanding bonds if the ordinance, deed of trust, or indenture of
404-25 trust authorizing or securing the outstanding bonds provides for
404-26 the subsequent issuance of additional parity bonds, subject to that
404-27 ordinance, deed of trust, or indenture of trust.
405-1 (d) To the extent of a conflict or inconsistency between
405-2 this section and another law, this section controls. (V.A.C.S.
405-3 Art. 1111a, Secs. 1 (part), 3 (part); Art. 1111b, Secs. 1 (part), 3
405-4 (part).)
405-5 Sec. 1502.065. LIEN PRIORITY: REFUNDING BONDS. (a) This
405-6 section applies only to refunding bonds issued by a municipality
405-7 that are payable from and secured by a pledge of the revenue of one
405-8 or more of the municipality's utility systems.
405-9 (b) Refunding bonds described by Subsection (a) have a
405-10 priority of lien on the revenue pledged that is on a parity with
405-11 the lien priority of the bonds being refunded.
405-12 (c) The lien of all refunding bonds issued in a single issue
405-13 to refund two or more consecutive series or issues of bonds is
405-14 equal if all of the outstanding bonds of those series or issues of
405-15 bonds are surrendered in exchange for the new refunding bonds.
405-16 (d) Refunding bonds may not have a lien priority higher than
405-17 the highest lien priority of any series or issue of bonds being
405-18 refunded. (V.A.C.S. Art. 1111a, Secs. 1 (part), 2 (part);
405-19 Art. 1111b, Secs. 1 (part), 2 (part).)
405-20 Sec. 1502.066. BONDS FOR ACQUISITION OF HYDROELECTRIC
405-21 GENERATING FACILITIES. (a) A municipality that owns an electric
405-22 distribution system, regardless of whether the municipality also
405-23 owns a facility for the generation of electricity, may issue bonds
405-24 under this subchapter to purchase and improve, maintain, and
405-25 operate a privately owned facility for the generation of
405-26 hydroelectric power having an installed capacity of not less than
405-27 2,000 kilowatts that is located within five miles of the
406-1 municipality's boundaries, including any land, flowage right or
406-2 water right, and related generating and transmission equipment and
406-3 lines. The municipality may purchase the facility with the
406-4 proceeds of the bonds or by issuing the bonds in exchange for the
406-5 facility but only if authorized at an election held in accordance
406-6 with Section 1502.057.
406-7 (b) For the purpose of the issuance and payment of the
406-8 bonds, a hydroelectric generating facility acquired under this
406-9 section may be regarded as an independent electric system that,
406-10 together with its revenue, may be pledged to the payment of the
406-11 bonds without any pledge of the municipality's other electric
406-12 facilities or the revenue of those facilities.
406-13 (c) A municipality that acquires a hydroelectric generating
406-14 facility under this section shall perform any contract in existence
406-15 at the time of acquisition for the sale of electricity generated by
406-16 the facility unless the contract is canceled by voluntary agreement
406-17 of the municipality and each party entitled to purchase
406-18 electricity under the contract.
406-19 (d) Subject to the rights of any party to an existing
406-20 contract, the municipality shall take for distribution by its
406-21 distribution system the part of the output of the acquired
406-22 generating facility needed for distribution. The municipality in
406-23 the proceedings authorizing the bonds may covenant, as the
406-24 municipality considers proper, for the use of the electricity and
406-25 for payment for the electricity from the revenue from the resale of
406-26 the electricity.
406-27 (e) The municipality may enter into long-term or short-term
407-1 contracts to sell to other purchasers any electricity generated by
407-2 the facility that the municipality does not distribute by its
407-3 system to its consumers. (V.A.C.S. Art. 1118q, Sec. 1 (part).)
407-4 Sec. 1502.067. RECORDS. The mayor of the municipality shall
407-5 establish and maintain a complete system of records for a utility
407-6 system, park, or swimming pool the revenue of which is encumbered
407-7 under this subchapter that:
407-8 (1) shows the free service provided and the value of
407-9 the service; and
407-10 (2) shows separately the amounts spent and the amounts
407-11 set aside for operation, salaries, labor, materials, repairs,
407-12 maintenance, depreciation, replacements, extensions, interest, and
407-13 the creation of a sinking fund to pay the bonds and debt.
407-14 (V.A.C.S. Art. 1113 (part).)
407-15 Sec. 1502.068. RECORDS: NONCASH BASIS. (a) A municipality
407-16 may maintain its records on facilities under this subchapter or any
407-17 other municipal records on a basis other than a cash basis to the
407-18 extent permitted or required under generally accepted accounting
407-19 principles for a governmental entity.
407-20 (b) A change in accounting methods does not affect the terms
407-21 of an existing contract with respect to the power to issue
407-22 additional obligations payable from the facilities. (V.A.C.S.
407-23 Art. 1113b.)
407-24 Sec. 1502.069. ANNUAL REPORT. (a) Not later than February
407-25 1 of each year, the superintendent or manager of a plant the
407-26 revenue of which is encumbered under this subchapter shall file
407-27 with the mayor of the municipality a detailed report of the
408-1 operation of the plant for the year ending on the preceding January
408-2 1.
408-3 (b) The report must show the total amount of money collected
408-4 and the balance due, and the total disbursements made and the
408-5 amounts remaining unpaid, resulting from the operation of the plant
408-6 during that year. (V.A.C.S. Art. 1113 (part).)
408-7 Sec. 1502.070. OFFENSES; PENALTY. (a) A mayor commits an
408-8 offense if the mayor fails to:
408-9 (1) establish the system of records required by
408-10 Section 1502.067 before the 91st day after the date the plant is
408-11 completed; or
408-12 (2) maintain the system of records required by Section
408-13 1502.067.
408-14 (b) A superintendent or manager of a plant commits an
408-15 offense if the superintendent or manager fails to file a report
408-16 required by Section 1502.069.
408-17 (c) An offense under this section is a misdemeanor
408-18 punishable by a fine of not less than $100 or more than $1,000.
408-19 (V.A.C.S. Art. 1113 (part).)
408-20 Sec. 1502.071. MANAGEMENT AND CONTROL OF ENCUMBERED
408-21 FACILITY. (a) The contract under which a facility is encumbered
408-22 may give management and control of the encumbered facility during
408-23 the time the facility is encumbered to:
408-24 (1) the municipality's governing body; or
408-25 (2) a board of trustees named in the encumbrance and
408-26 consisting of not more than five members, one of whom must be the
408-27 mayor of the municipality.
409-1 (b) The compensation of the trustees shall be specified by
409-2 the contract of encumbrance. The compensation may not exceed five
409-3 percent of the encumbered facility's gross receipts in any year.
409-4 (c) The contract of encumbrance may specify the terms of
409-5 office of the board of trustees, their powers and duties, the
409-6 manner of exercising those powers and duties, the election of
409-7 successor trustees, and any matter relating to the organization and
409-8 duties of the board. On any matter not covered by the contract,
409-9 the board of trustees is governed by the laws and rules governing
409-10 the municipality's governing body, to the extent applicable.
409-11 (V.A.C.S. Art. 1115.)
409-12 Sec. 1502.072. RULES. (a) The governing body or board of
409-13 trustees having management and control of an encumbered facility
409-14 may adopt rules to:
409-15 (1) govern the provision of and payment for service;
409-16 and
409-17 (2) provide for the discontinuance of service for
409-18 failure to pay when due until payment is made.
409-19 (b) The governing body may provide penalties for:
409-20 (1) the violation of a rule adopted under this
409-21 section;
409-22 (2) the use of service without the consent or
409-23 knowledge of the authorities in charge; or
409-24 (3) any interference with, trespass on, or injury to a
409-25 system or appliance or the premises on which the system or
409-26 appliance is located. (V.A.C.S. Art. 1116.)
409-27 Sec. 1502.073. TRUSTEE. A contract under which a facility
410-1 is encumbered may provide for:
410-2 (1) the selection of a trustee to sell the encumbered
410-3 facility on default in the payment of principal or interest under
410-4 the contract;
410-5 (2) the selection of a successor trustee if the
410-6 original trustee is disqualified or fails to act; and
410-7 (3) the collection by the trustee of a fee of not more
410-8 than five percent of the principal. (V.A.C.S. Art. 1117.)
410-9 Sec. 1502.074. NOTICE TO GOVERNING BODY BEFORE FORECLOSURE
410-10 OR OTHER ACTION. (a) Unless written notice is given to the
410-11 governing body of the municipality and to any board of trustees in
410-12 accordance with this section that there is a default in payment of
410-13 any installment of principal of or interest on an obligation issued
410-14 under this subchapter and that payment has been demanded:
410-15 (1) a collection fee may not accrue;
410-16 (2) a foreclosure proceeding may not be begun in a
410-17 court or through a trustee; and
410-18 (3) an option to mature any part of the obligation
410-19 because of the default may not be exercised.
410-20 (b) A notice under Subsection (a) must be sent by prepaid
410-21 registered mail to each member of the governing body and each
410-22 member of any board of trustees, addressed to the member at the
410-23 post office in the municipality.
410-24 (c) An action described by Subsection (a) may not be taken
410-25 before the 91st day after the date the notice is mailed.
410-26 (d) A payment of a delinquent installment of principal and
410-27 interest that is paid before the expiration of the period
411-1 prescribed by Subsection (c) and that is accompanied by a payment
411-2 of interest as prescribed in the contract, at a rate not to exceed
411-3 10 percent per year, from the date of default until the date of
411-4 payment, has the same effect as if paid on the date the installment
411-5 was originally due. (V.A.C.S. Art. 1118.)
411-6 Sec. 1502.075. APPROPRIATION OF UTILITY SYSTEM INCOME:
411-7 MUNICIPALITY WITH POPULATION OF 12,410 OR LESS. (a) This section
411-8 applies only to a municipality that:
411-9 (1) has a population of 12,410 or less; and
411-10 (2) owns and operates its light system and waterworks
411-11 system.
411-12 (b) In the annual appropriation of the income and revenue of
411-13 any public utility system, service, or enterprise, the governing
411-14 body of a municipality that has adopted this section as provided by
411-15 Subsections (c) and (d) shall provide for appropriations in the
411-16 following order:
411-17 (1) the maintenance and operating expenses of the
411-18 system, service, or enterprise;
411-19 (2) the principal and interest of any debt outstanding
411-20 against the system, service, or enterprise; and
411-21 (3) any appropriations the remaining income and
411-22 revenue of the system, service, or enterprise may justify, to be
411-23 appropriated among municipal departments or otherwise for public
411-24 uses as the governing body considers best.
411-25 (c) At a special election called for the purpose, the
411-26 governing body of a municipality may submit the question of
411-27 adoption of this section to the municipality's qualified voters.
412-1 The election shall be held as nearly as possible in compliance with
412-2 the laws applying to regular municipal elections.
412-3 (d) If a majority of the voters voting in the election favor
412-4 adoption:
412-5 (1) the governing body shall enter the election result
412-6 in its minutes; and
412-7 (2) this section applies to the municipality effective
412-8 at the time the result is entered in the minutes.
412-9 (e) This section does not:
412-10 (1) restrict a municipality's authority under other
412-11 state law to issue bonds, notes, or warrants payable from revenue
412-12 other than taxes; or
412-13 (2) affect the applicability of Section 1502.057.
412-14 (V.A.C.S. Art. 1118c, Secs. 1 (part), 2 (part), 3 (part).)
412-15 Sec. 1502.076. CIVIL ENFORCEMENT. A person who resides in a
412-16 municipality and is a taxpayer or holder of an obligation issued
412-17 under this subchapter and secured by the encumbered revenue of the
412-18 municipality's utility system, park, or swimming pool is entitled
412-19 to enforce this subchapter by appropriate civil action in a
412-20 district court in the county in which the municipality is located.
412-21 (V.A.C.S. Art. 1113 (part).)
412-22 Sec. 1502.077. CONFLICT WITH MUNICIPAL CHARTER. To the
412-23 extent of a conflict between this subchapter and a municipal
412-24 charter, this subchapter controls. (V.A.C.S. Art. 1114b (part).)
412-25 (Sections 1502.078-1502.100 reserved for expansion)
412-26 SUBCHAPTER C. REVENUE BONDS FOR UTILITY SYSTEMS:
412-27 MUNICIPALITIES OWNING AND OPERATING GAS AND ELECTRIC, WATER,
413-1 OR SEWER SYSTEMS
413-2 Sec. 1502.101. DEFINITIONS. In this subchapter:
413-3 (1) "Encumbered system" means a utility system
413-4 encumbered under this subchapter.
413-5 (2) "Utility system" means an electric, water, sewer,
413-6 or natural gas system. (New.)
413-7 Sec. 1502.102. APPLICABILITY OF SUBCHAPTER. This subchapter
413-8 applies only to a municipality that owns and operates its gas
413-9 system and its electric, water, or sewer system. (V.A.C.S.
413-10 Art. 1118a, Sec. 1 (part).)
413-11 Sec. 1502.103. PLEDGE OF REVENUE. A municipality may pledge
413-12 the revenue and encumber the franchise of a municipal utility
413-13 system or anything a municipality acquires relating to a municipal
413-14 utility system to secure the payment of money to:
413-15 (1) build, purchase, improve, enlarge, extend, or
413-16 repair the same or another municipal utility system;
413-17 (2) purchase additional water powers or riparian
413-18 rights; or
413-19 (3) purchase land or other property the governing body
413-20 considers necessary in connection with the construction, purchase,
413-21 improvement, enlargement, extension, or repair. (V.A.C.S.
413-22 Art. 1118a, Sec. 1 (part).)
413-23 Sec. 1502.104. AUTHORITY TO ENCUMBER UTILITY SYSTEM. A
413-24 municipality may encumber all or any part of one or more municipal
413-25 utility systems or anything a municipality acquires relating to a
413-26 municipal utility system to take an action authorized by Section
413-27 1502.103. (V.A.C.S. Art. 1118a, Secs. 1 (part), 8.)
414-1 Sec. 1502.105. GRANT OF FRANCHISE. As additional security
414-2 for the encumbrance, the municipality by the terms of the
414-3 encumbrance may grant a purchaser under sale or foreclosure a
414-4 franchise to operate the encumbered system or property for a term
414-5 not to exceed 20 years from the date of the purchase, subject to
414-6 all laws regulating same then in force. (V.A.C.S. Art. 1118a,
414-7 Sec. 1 (part).)
414-8 Sec. 1502.106. OBLIGATIONS NOT PAYABLE FROM TAXES. (a) An
414-9 obligation described by Section 1502.103 or 1502.104:
414-10 (1) is not a debt of the municipality;
414-11 (2) may be a charge only on the encumbered system or
414-12 property; and
414-13 (3) may not be included in determining the
414-14 municipality's power to issue bonds for any purpose authorized by
414-15 law.
414-16 (b) Each contract, bond, or note issued or executed under
414-17 this subchapter must contain the following provision: "The holder
414-18 of this obligation is not entitled to demand payment of this
414-19 obligation out of any money raised by taxation." (V.A.C.S.
414-20 Art. 1118a, Secs. 1 (part), 4.)
414-21 Sec. 1502.107. ELECTION. (a) Unless authorized by a
414-22 majority vote of the qualified voters of the municipality, a
414-23 municipality may not:
414-24 (1) encumber a utility system for more than $5,000,
414-25 except for money to purchase or repair a utility system or to
414-26 refund any existing debt that was authorized by law; or
414-27 (2) sell a utility system.
415-1 (b) The governing body of the municipality shall hold an
415-2 election under this section in the manner provided for bond
415-3 elections in the municipality.
415-4 (c) This section does not apply to the sale of an
415-5 unencumbered natural gas system owned by a municipality with a
415-6 population of more than 1.2 million. (V.A.C.S. Art. 1118a, Sec.
415-7 2.)
415-8 Sec. 1502.108. OPERATING EXPENSES AS FIRST LIEN. If the
415-9 revenue of a utility system is encumbered under this subchapter,
415-10 each expense of operation and maintenance, including all salaries,
415-11 labor, materials, interest, repairs and extensions necessary to
415-12 provide efficient service, and each proper item of expense, is a
415-13 first lien against that revenue. (V.A.C.S. Art. 1118a, Sec. 3
415-14 (part).)
415-15 Sec. 1502.109. CHARGES FOR SERVICES. (a) A municipality
415-16 shall impose and collect charges for services provided by an
415-17 encumbered system in amounts at least sufficient to pay:
415-18 (1) all operating, maintenance, depreciation,
415-19 replacement, improvement, and interest charges in connection with
415-20 the encumbered system;
415-21 (2) for an interest and sinking fund sufficient to pay
415-22 any bonds issued to purchase, construct, or improve the encumbered
415-23 system; and
415-24 (3) any outstanding debt against the system.
415-25 (b) The rates charged for services provided by an encumbered
415-26 system must be equal and uniform. A municipality may not allow any
415-27 free service except for:
416-1 (1) municipal public schools; or
416-2 (2) buildings and institutions operated by the
416-3 municipality. (V.A.C.S. Art. 1118a, Sec. 3 (part).)
416-4 Sec. 1502.110. LIMITATION ON USE OF REVENUE. (a) Except as
416-5 provided by Subsection (b), a municipality may not use the revenue
416-6 of an encumbered system to pay any other debt, expense, or
416-7 obligation of the municipality until the debt secured by the
416-8 revenue is finally paid.
416-9 (b) This section does not apply to a debt, expense, or
416-10 obligation of:
416-11 (1) the encumbered system; or
416-12 (2) another system for the benefit of which the
416-13 encumbered system was encumbered. (V.A.C.S. Art. 1118a, Sec. 9.)
416-14 Sec. 1502.111. MANAGEMENT AND CONTROL OF ENCUMBERED SYSTEM.
416-15 The contract under which the system is encumbered shall provide
416-16 that the governing body of the municipality shall manage and
416-17 control the encumbered system during the time the system is
416-18 encumbered. (V.A.C.S. Art. 1118a, Sec. 5 (part).)
416-19 Sec. 1502.112. RULES. (a) The governing body having
416-20 management and control of an encumbered system may adopt rules to:
416-21 (1) govern the provision of and payment for service;
416-22 and
416-23 (2) provide for the discontinuance of service for
416-24 failure to pay when due until payment is made.
416-25 (b) The governing body may provide penalties for:
416-26 (1) the violation of a rule adopted under this
416-27 section;
417-1 (2) the use of service without the consent or
417-2 knowledge of the authorities in charge; or
417-3 (3) any interference with, trespass on, or injury to a
417-4 system or appliance or the premises on which the system or
417-5 appliance is located. (V.A.C.S. Art. 1118a, Sec. 5 (part).)
417-6 Sec. 1502.113. TRUSTEE. A contract under which a system is
417-7 encumbered may provide for:
417-8 (1) the selection of a trustee to sell the encumbered
417-9 system on default in the payment of principal or interest under the
417-10 contract;
417-11 (2) the selection of a successor trustee if the
417-12 original trustee is disqualified or fails to act; and
417-13 (3) the collection by the trustee of a fee of not more
417-14 than five percent of the principal. (V.A.C.S. Art. 1118a, Sec. 6
417-15 (part).)
417-16 Sec. 1502.114. NOTICE TO GOVERNING BODY BEFORE FORECLOSURE
417-17 OR OTHER ACTION. (a) Unless written notice is given to the
417-18 governing body of the municipality in accordance with this section
417-19 that there is a default in payment of any installment of principal
417-20 of or interest on an obligation issued under this subchapter and
417-21 that payment has been demanded:
417-22 (1) a collection fee may not accrue;
417-23 (2) a foreclosure proceeding may not be begun in a
417-24 court or through a trustee; and
417-25 (3) an option to mature any part of the obligation
417-26 because of the default may not be exercised.
417-27 (b) A notice under Subsection (a) must be sent by prepaid
418-1 registered mail to each member of the governing body, addressed to
418-2 the member at the post office in the municipality.
418-3 (c) An action described by Subsection (a) may not be taken
418-4 before the 91st day after the date the notice is mailed.
418-5 (d) A payment of a delinquent installment of principal and
418-6 interest that is paid before the expiration of the period
418-7 prescribed by Subsection (c) and that is accompanied by a payment
418-8 of interest as prescribed in the contract, at a rate not to exceed
418-9 10 percent per year, from the date of default until the date of
418-10 payment, has the same effect as if paid on the date the installment
418-11 was originally due. (V.A.C.S. Art. 1118a, Sec. 7.)
418-12 Sec. 1502.115. RIGHT OF REPURCHASE. The terms of the
418-13 encumbrance shall provide that in the event of default and sale
418-14 under foreclosure and the granting of a franchise to operate the
418-15 system or systems and properties as provided by Section 1502.105,
418-16 the municipality has the right to repurchase the system or systems
418-17 on reasonable terms and at reasonable prices at any time during any
418-18 stipulated five-year redemption period within the franchise term.
418-19 The encumbrance agreement and the franchise agreement shall state
418-20 the terms and prices of redemption and the optional redemption
418-21 periods. (V.A.C.S. Art. 1118a, Sec. 6 (part).)
418-22 (Sections 1502.116-1502.150 reserved for expansion)
418-23 SUBCHAPTER D. REVENUE BONDS FOR WATER SYSTEMS:
418-24 MUNICIPALITIES WITH POPULATION OF MORE THAN 160,000
418-25 Sec. 1502.151. APPLICABILITY OF SUBCHAPTER. This subchapter
418-26 applies only to a municipality with a population of more than
418-27 160,000. (V.A.C.S. Art. 1109a, Sec. 1 (part).)
419-1 Sec. 1502.152. AUTHORITY TO ENCUMBER WATER SYSTEM. (a) A
419-2 municipality may:
419-3 (1) encumber a water system;
419-4 (2) encumber anything relating to a water system;
419-5 (3) acquire or encumber additional water powers or
419-6 riparian rights; or
419-7 (4) add to, extend, enlarge, or repair a water system.
419-8 (b) A municipality may encumber one or more water systems,
419-9 water powers, or riparian rights to purchase, improve, extend, or
419-10 repair the same or another water system, water power, or riparian
419-11 right. (V.A.C.S. Art. 1109a, Secs. 1 (part), 6 (part).)
419-12 Sec. 1502.153. AUTHORITY TO ISSUE BONDS, NOTES, OR OTHER
419-13 OBLIGATIONS. A municipality may borrow money and issue bonds,
419-14 notes, or other obligations to pay for any purchase, improvement,
419-15 addition, extension, enlargement, or repair authorized by Section
419-16 1502.152. (V.A.C.S. Art. 1109a, Secs. 1 (part), 3 (part), 6
419-17 (part).)
419-18 Sec. 1502.154. PLEDGE OF REVENUE. A municipality may pledge
419-19 the revenue or encumber the franchise of a system or property
419-20 described by Section 1502.152 to secure the payment of obligations
419-21 issued under this subchapter. (V.A.C.S. Art. 1109a, Secs. 1
419-22 (part), 6 (part).)
419-23 Sec. 1502.155. GRANT OF FRANCHISE. As additional security
419-24 for the encumbrance, the municipality by the terms of the
419-25 encumbrance may grant a purchaser under sale or foreclosure a
419-26 franchise to operate the encumbered system or property described by
419-27 Section 1502.152 for a term not to exceed 20 years from the date of
420-1 purchase, subject to all laws regulating the same then in force.
420-2 (V.A.C.S. Art. 1109a, Sec. 1 (part).)
420-3 Sec. 1502.156. OBLIGATIONS NOT PAYABLE FROM TAXES. (a) An
420-4 obligation issued under this subchapter:
420-5 (1) is not a debt of the municipality;
420-6 (2) may be a charge only on the encumbered system or
420-7 property; and
420-8 (3) may not be included in determining the
420-9 municipality's power to issue bonds for any purpose authorized by
420-10 law.
420-11 (b) Each contract, bond, or note executed or issued under
420-12 this subchapter must contain the following provision: "The holder
420-13 of this obligation is not entitled to demand payment of this
420-14 obligation out of any money raised by taxation." (V.A.C.S.
420-15 Art. 1109a, Secs. 2 (part), 3 (part).)
420-16 Sec. 1502.157. ELECTION: SALE OF WATER SYSTEM. (a) Unless
420-17 authorized by a majority vote of the qualified voters of the
420-18 municipality, a municipality may not sell a water system.
420-19 (b) The governing body of the municipality shall give notice
420-20 of an election under this section in the manner provided for bond
420-21 elections in the municipality.
420-22 (c) This section does not apply to the sale of a water
420-23 system that is authorized by the terms of the encumbrance of the
420-24 system. (V.A.C.S. Art. 1109a, Sec. 6 (part).)
420-25 Sec. 1502.158. ELECTION: BOND OR NOTE ISSUANCE. (a)
420-26 Unless authorized by a majority vote of the qualified voters of the
420-27 municipality, a municipality may not issue bonds or notes under
421-1 this subchapter.
421-2 (b) The governing body of the municipality shall hold an
421-3 election required by this section in the manner provided for other
421-4 bond elections in the municipality. Notwithstanding contrary
421-5 provisions of other law or of a municipal charter, other notice or
421-6 opportunities for filing petitions are not required. (V.A.C.S.
421-7 Art. 1109a, Sec. 6 (part).)
421-8 Sec. 1502.159. OPERATING EXPENSES AS FIRST LIEN. If the
421-9 revenue of a water system is encumbered under this subchapter, each
421-10 expense of operation and maintenance, including all salaries,
421-11 labor, materials, interest, repairs and extensions necessary to
421-12 provide efficient service, and each proper item of expense, is a
421-13 first lien against that revenue. (V.A.C.S. Art. 1109a, Sec. 2
421-14 (part).)
421-15 Sec. 1502.160. CHARGES FOR SERVICES. (a) A municipality
421-16 shall impose and collect charges for services provided by an
421-17 encumbered water system in amounts at least sufficient to pay:
421-18 (1) all operating, maintenance, depreciation,
421-19 replacement, improvement, and interest charges in connection with
421-20 the encumbered system;
421-21 (2) for an interest and sinking fund sufficient to pay
421-22 any bonds or notes issued to purchase, construct, or improve the
421-23 encumbered system; and
421-24 (3) any outstanding debt against the encumbered
421-25 system.
421-26 (b) The rates charged for services provided by an encumbered
421-27 system must be equal and uniform. A municipality may not allow any
422-1 free service except for:
422-2 (1) municipal public schools; or
422-3 (2) buildings and institutions operated by the
422-4 municipality. (V.A.C.S. Art. 1109a, Sec. 2 (part).)
422-5 Sec. 1502.161. ADDITIONAL OBLIGATIONS. (a) A municipality
422-6 that has outstanding bonds, notes, or other obligations secured by
422-7 the net revenue of its water system may issue additional bonds,
422-8 notes, or other obligations under this subchapter to pay for any
422-9 purchase, addition, extension, enlargement, or repair authorized by
422-10 Section 1502.152. The additional bonds, notes, or other
422-11 obligations may be payable from water system revenue pledged to the
422-12 payment of outstanding bonds, notes, or other obligations.
422-13 (b) Except as provided by Subsection (c):
422-14 (1) the additional bonds or notes must be subordinate
422-15 in every respect to each issue of outstanding bonds, notes, or
422-16 other obligations payable from the water system revenue; and
422-17 (2) each series of additional bonds, notes, or other
422-18 obligations must be subordinate, as to the lien on the revenue and
422-19 physical property of the water system, to each series of
422-20 outstanding bonds, notes, or other obligations payable from the
422-21 water system revenue.
422-22 (c) A municipality may issue additional bonds or series of
422-23 bonds under this section on a parity and of equal dignity with the
422-24 outstanding bonds if:
422-25 (1) the ordinance, deed of trust, or indenture of
422-26 trust authorizing or securing the outstanding bonds provides for
422-27 the subsequent issuance of additional parity bonds, subject to that
423-1 ordinance, deed of trust, or indenture of trust; and
423-2 (2) the ordinance, deed of trust, or indenture of
423-3 trust authorizing or securing the additional bonds provides that
423-4 those bonds are on a parity and of equal dignity with the
423-5 outstanding bonds. (V.A.C.S. Art. 1109a, Sec. 2 (part).)
423-6 Sec. 1502.162. AGREEMENTS REGARDING APPLICATION OF REVENUE.
423-7 (a) Subject to other provisions of this subchapter, the governing
423-8 body of a municipality, in authorizing the issuance of bonds,
423-9 notes, or other obligations payable from the revenue of a water
423-10 system under this subchapter, may enter into agreements and
423-11 covenants regarding the application of the revenue of the water
423-12 system as the governing body considers appropriate.
423-13 (b) The governing body may apply revenue of an encumbered
423-14 system that is not needed to pay the principal of and interest on
423-15 bonds, notes, or other obligations payable from the revenue of the
423-16 water system, or to pay operating and maintenance expenses, to the
423-17 payment of any notes, warrants, or other obligations the proceeds
423-18 of which were used to improve, repair, add to, or extend the water
423-19 system. (V.A.C.S. Art. 1109a, Sec. 2 (part).)
423-20 Sec. 1502.163. AUTHORITY TO BORROW MONEY AND ISSUE BONDS:
423-21 MUNICIPALITY WITH POPULATION OF MORE THAN 290,000. (a) This
423-22 section applies only to a municipality with a population of more
423-23 than 290,000.
423-24 (b) The governing body of a municipality may borrow money
423-25 and issue bonds or notes payable solely out of the income of a
423-26 water system or of any extension, replacement, addition, or
423-27 improvement to that system that the governing body determines to be
424-1 necessary to provide adequate service. The governing body's
424-2 determination is conclusive.
424-3 (c) The governing body may pledge and use the income of a
424-4 water system for the payment of bonds or notes authorized by this
424-5 section. An ordinance pledging the rent, income, or revenue of a
424-6 water system is part of the municipality's contract with the
424-7 holders of the bonds or notes.
424-8 (d) Section 1502.158 does not apply to the issuance of bonds
424-9 or notes authorized by this section. (V.A.C.S. Art. 1109a, Sec. 7
424-10 (part).)
424-11 Sec. 1502.164. MANAGEMENT AND CONTROL OF ENCUMBERED SYSTEM.
424-12 (a) The contract under which a water system is encumbered may give
424-13 management and control of the system during the time the system is
424-14 encumbered to:
424-15 (1) the municipality's governing body; or
424-16 (2) a board of trustees named in the encumbrance and
424-17 consisting of not more than five members, one of whom must be the
424-18 mayor of the municipality.
424-19 (b) The compensation of the trustees shall be specified by
424-20 the contract of encumbrance. The compensation may not exceed five
424-21 percent of the encumbered system's gross receipts in any year.
424-22 (c) The contract of encumbrance may specify the terms of
424-23 office of the board of trustees, their powers and duties, the
424-24 manner of exercising those powers and duties, the election of
424-25 successor trustees, and any matter relating to the organization and
424-26 duties of the board. On any matter not covered by the contract,
424-27 the board of trustees is governed by the laws and rules governing
425-1 the municipality's governing body, to the extent applicable.
425-2 (V.A.C.S. Art. 1109a, Sec. 4 (part).)
425-3 Sec. 1502.165. RULES. (a) The governing body or board of
425-4 trustees having management and control of an encumbered water
425-5 system may adopt rules to:
425-6 (1) govern the provision of and payment for service;
425-7 and
425-8 (2) provide for the discontinuance of service for
425-9 failure to pay when due until payment is made.
425-10 (b) The governing body may provide penalties for:
425-11 (1) the violation of a rule adopted under this
425-12 section;
425-13 (2) the use of service without the consent or
425-14 knowledge of the authorities in charge; or
425-15 (3) any interference with, trespass on, or injury to a
425-16 system or appliance or the premises on which the system or
425-17 appliance is located. (V.A.C.S. Art. 1109a, Sec. 4 (part).)
425-18 Sec. 1502.166. TRUSTEE. A contract under which a facility
425-19 is encumbered may:
425-20 (1) name or provide for the selection of a trustee to
425-21 sell the encumbered system on default in the payment of principal
425-22 or interest under the contract;
425-23 (2) provide for the selection of a successor trustee
425-24 if the original trustee is disqualified or fails to act; and
425-25 (3) provide for the collection by the trustee of a fee
425-26 of not more than five percent of the principal. (V.A.C.S.
425-27 Art. 1109a, Sec. 5 (part).)
426-1 Sec. 1502.167. NOTICE TO GOVERNING BODY BEFORE FORECLOSURE
426-2 OR OTHER ACTION. (a) Unless written notice is given to the
426-3 governing body of the municipality and to any board of trustees in
426-4 accordance with this section that there is a default in payment of
426-5 any installment of principal of an obligation issued under this
426-6 subchapter and that payment has been demanded:
426-7 (1) a collection fee may not accrue;
426-8 (2) a foreclosure proceeding may not be begun in a
426-9 court or through a trustee; and
426-10 (3) an option to mature any part of the obligation
426-11 because of the default may not be exercised.
426-12 (b) A notice under Subsection (a) must be sent by prepaid
426-13 registered mail to each member of the governing body and each
426-14 member of any board of trustees, addressed to the member at the
426-15 post office in the municipality.
426-16 (c) An action described by Subsection (a) may not be taken
426-17 before the 91st day after the date the notice is mailed.
426-18 (d) A payment of a delinquent installment of principal and
426-19 interest that is paid before expiration of the period prescribed by
426-20 Subsection (c) and that is accompanied by a payment of interest as
426-21 prescribed in the contract, at a rate not to exceed 10 percent per
426-22 year, from the date of default until the date of payment, has the
426-23 same effect as if paid on the date the installment was originally
426-24 due. (V.A.C.S. Art. 1109a, Sec. 5 (part).)
426-25 (Sections 1502.168-1502.200 reserved for expansion)
426-26 SUBCHAPTER E. ADDITIONAL WATERWORKS BONDS OR
426-27 WATERWORKS AND SEWER BONDS
427-1 Sec. 1502.201. APPLICABILITY OF SUBCHAPTER. This subchapter
427-2 applies only to a municipality that has:
427-3 (1) outstanding waterworks or waterworks and sewer
427-4 system revenue bonds; and
427-5 (2) through the issuance of refunding bonds or
427-6 otherwise, enough money available to pay:
427-7 (A) the bonds and interest on the bonds to the
427-8 date on which the bonds are due or may be redeemed; and
427-9 (B) any contract premium. (V.A.C.S.
427-10 Art. 1118n-5, Secs. 1 (part), 1a (part).)
427-11 Sec. 1502.202. AUTHORITY TO ISSUE BONDS. (a) A
427-12 municipality may issue additional bonds secured by a pledge of the
427-13 revenue from the operation of its waterworks system or of its
427-14 waterworks and sewer systems or in any other manner provided by
427-15 Subchapter B for the purposes authorized by Subchapter B if the
427-16 municipality has:
427-17 (1) made a deposit with the comptroller for the
427-18 benefit of its outstanding waterworks or waterworks and sewer
427-19 revenue bonds in the manner authorized by Section 1207.021 for
427-20 advance refunding of bonds under Chapter 1207; and
427-21 (2) otherwise complied with the requirements of
427-22 Section 1207.021.
427-23 (b) The deposit authorized by Subsection (a)(1) must be made
427-24 before or at the same time as the sale and delivery of additional
427-25 bonds authorized by this subchapter. All other proceedings related
427-26 to the authorization and issuance of the additional bonds
427-27 authorized by this subchapter must be made before the deposit is
428-1 made. (V.A.C.S. Art. 1118n-5, Secs. 1a (part), 2 (part), 4
428-2 (part).)
428-3 Sec. 1502.203. COMBINED ISSUANCE. Additional bonds issued
428-4 under this subchapter may be combined in a single issue with
428-5 refunding bonds. (V.A.C.S. Art. 1118n-5, Sec. 1a (part).)
428-6 Sec. 1502.204. ELECTION. A municipality may not issue
428-7 additional bonds under this subchapter unless the bonds have been
428-8 authorized at an election held in the municipality as provided by
428-9 Section 1251.003. (V.A.C.S. Art. 1118n-5, Sec. 4 (part).)
428-10 Sec. 1502.205. PRIORITY OF CHARGES AGAINST REVENUE. (a)
428-11 Except as provided by Subsections (b) and (c), additional bonds
428-12 issued under this subchapter are a first charge on the revenue of
428-13 the waterworks system or waterworks and sewer systems after the
428-14 payment of the maintenance and operation expenses of the system or
428-15 systems.
428-16 (b) The priority established by Subsection (a) is subject
428-17 only to payments that must be made to the comptroller from the
428-18 pledged revenue to prevent default in principal of or interest on
428-19 outstanding bonds, for the benefit of which a deposit was made as
428-20 provided by Section 1502.202.
428-21 (c) The right of a holder of an outstanding bond to have any
428-22 deficiency paid out of the pledged revenue is not impaired by the
428-23 priority established by Subsection (a). (V.A.C.S. Art. 1118n-5,
428-24 Sec. 4 (part).)
428-25 Sec. 1502.206. LIMITATION ON ISSUANCE OF ADDITIONAL BONDS.
428-26 A municipality may not issue additional bonds secured by a pledge
428-27 of the revenue of the waterworks system or waterworks and sewer
429-1 systems while bonds issued under this subchapter and secured by
429-2 that revenue are outstanding unless the additional bonds are issued
429-3 in accordance with limitations prescribed in the ordinance
429-4 authorizing the first bond issue under this subchapter. (V.A.C.S.
429-5 Art. 1118n-5, Sec. 5 (part).)
429-6 Sec. 1502.207. COMPTROLLER'S DUTIES. (a) The comptroller's
429-7 duties regarding the acceptance, safekeeping, and use of money or
429-8 instruments deposited with the comptroller under this subchapter
429-9 are the same as the duties prescribed by Section 1207.027 regarding
429-10 deposits made with the comptroller under Chapter 1207.
429-11 (b) The comptroller's duties regarding deposits for payment
429-12 with the paying agent and payment and cancellation of outstanding
429-13 bonds under this subchapter are the same as the duties prescribed
429-14 by Section 1207.028 regarding deposits for payment with the paying
429-15 agent and payment and cancellation of bonds being refunded under
429-16 Subchapter B, Chapter 1207. (V.A.C.S. Art. 1118n-5, Secs. 2
429-17 (part), 3.)
429-18 Sec. 1502.208. COMPTROLLER'S FEES. The comptroller may
429-19 charge for the comptroller's services under this subchapter a
429-20 reasonable fee as authorized by Section 1207.032 for services
429-21 performed under Chapter 1207. (V.A.C.S. Art. 1118n-5, Sec. 2
429-22 (part).)
429-23 Sec. 1502.209. WITHDRAWAL OF DEPOSIT. A municipality that
429-24 has made a deposit with the comptroller as authorized by Section
429-25 1502.202 may withdraw from the state treasury, in the manner
429-26 provided by Section 1207.031 for the withdrawal of advance
429-27 refunding deposits made under Subchapter B, Chapter 1207, the
430-1 amount deposited to the credit of the account of an outstanding
430-2 bond that has been refunded or redeemed. (V.A.C.S. Art. 1118n-5,
430-3 Sec. 6.)
430-4 Sec. 1502.210. RIGHTS OF HOLDERS. (a) The holder of a bond
430-5 being refunded under this subchapter by refunding bonds has the
430-6 same rights as those prescribed by Section 1207.034 for the holder
430-7 of an obligation being refunded under Chapter 1207.
430-8 (b) At any time after a municipality has made the deposit
430-9 authorized by Section 1502.202 from a source other than the
430-10 proceeds of the sale of refunding bonds, the holder of any bond for
430-11 the benefit of which the deposit was made, regardless of the bond's
430-12 maturity date, may surrender the bond to the comptroller and
430-13 receive in exchange an amount equal to the amount on deposit with
430-14 the comptroller for the benefit of that bond. After surrender and
430-15 payment, the comptroller shall cancel the bond and return the
430-16 canceled bond to the issuing municipality. (V.A.C.S. Art. 1118n-5,
430-17 Sec. 7.)
430-18 Sec. 1502.211. CONFLICT OR INCONSISTENCY WITH OTHER LAWS.
430-19 To the extent of a conflict or inconsistency between this
430-20 subchapter and another law, this subchapter controls. (V.A.C.S.
430-21 Art. 1118n-5, Sec. 10 (part).)
430-22 (Sections 1502.212-1502.250 reserved for expansion)
430-23 SUBCHAPTER F. ADDITIONAL BONDS FOR EXTENSION, IMPROVEMENT,
430-24 OR ACQUISITION OF WATER SYSTEM
430-25 Sec. 1502.251. APPLICABILITY OF SUBCHAPTER. This subchapter
430-26 applies only to a municipality that has outstanding bonds payable
430-27 from the net revenue of its waterworks system, the net revenue of
431-1 which for each of the two fiscal years preceding the date on which
431-2 the municipality issues bonds under this subchapter is equal to
431-3 twice the amount required to pay the principal of and interest on
431-4 those outstanding bonds for the year in which that amount is
431-5 greater. (V.A.C.S. Art. 1118n-7, Sec. 1.)
431-6 Sec. 1502.252. AUTHORITY TO ISSUE BONDS. (a) A
431-7 municipality may issue additional bonds in accordance with
431-8 Subchapter B secured by a pledge of the revenue from the operation
431-9 of its waterworks system for a purpose authorized by Subsection (b)
431-10 if the municipality has:
431-11 (1) made a deposit with the comptroller, for the
431-12 benefit of its outstanding waterworks revenue bonds that cannot be
431-13 obtained for refunding or redemption, in the manner authorized by
431-14 Section 1207.021 for advance refunding of bonds under Chapter
431-15 1207; and
431-16 (2) otherwise complied with the requirements of
431-17 Section 1207.021.
431-18 (b) A municipality may issue bonds under this subchapter to:
431-19 (1) extend or improve the water system;
431-20 (2) acquire any privately or publicly owned water
431-21 system facility located in or adjacent to the municipality; or
431-22 (3) acquire an additional water supply by purchase or
431-23 construction or by contribution to the construction of a reservoir
431-24 by the United States. (V.A.C.S. Art. 1118n-7, Secs. 4 (part), 5
431-25 (part), 6 (part).)
431-26 Sec. 1502.253. ELECTION. (a) A municipality may not issue
431-27 additional bonds under this subchapter unless the bonds have been
432-1 authorized by a majority vote of the qualified voters of the
432-2 municipality in an election held for that purpose.
432-3 (b) The governing body of the municipality shall hold the
432-4 election in the manner required by law for an election to authorize
432-5 the issuance of tax-supported bonds. (V.A.C.S. Art. 1118n-7,
432-6 Sec. 4 (part).)
432-7 Sec. 1502.254. PRIORITY OF CHARGES AGAINST REVENUE. (a)
432-8 Except as provided by Subsections (b) and (c), additional bonds
432-9 issued under this subchapter:
432-10 (1) shall be on a parity and of equal dignity with any
432-11 water system refunding bonds issued by the municipality;
432-12 (2) shall be secured by a first lien on and pledge of
432-13 the net revenue of the water system; and
432-14 (3) may be additionally secured by a first mortgage on
432-15 the physical properties constituting the water system.
432-16 (b) If all the municipality's outstanding water revenue
432-17 bonds cannot be obtained for refunding or redemption, the
432-18 additional revenue bonds are a first charge on the revenue and
432-19 properties of the water system, subject only to any payments that
432-20 must be made from that revenue for the benefit of the outstanding
432-21 bonds.
432-22 (c) The right of a holder of an outstanding water revenue
432-23 bond that is not refunded to have any deficiency paid out of the
432-24 pledged revenue is not impaired by the priority established by
432-25 Subsection (a).
432-26 (d) In a situation described by Subsection (b), refunding
432-27 bonds issued by the municipality have the same priority as that
433-1 established by that subsection for the additional bonds. This
433-2 subsection applies only to:
433-3 (1) refunding bonds secured by the revenue of the
433-4 municipality's waterworks system; or
433-5 (2) tax-supported general obligation bonds issued by
433-6 the municipality to provide money to refund or redeem the
433-7 municipality's outstanding water revenue bonds payable from the
433-8 revenue of the municipality's waterworks system, in an aggregate
433-9 amount not greater than the aggregate principal amount of the
433-10 outstanding water revenue bonds and the total interest on those
433-11 bonds accrued to the final date of redemption of each of those
433-12 bonds. (V.A.C.S. Art. 1118n-7, Secs. 2 (part), 4 (part).)
433-13 Sec. 1502.255. SALE BY HOME-RULE MUNICIPALITY. A home-rule
433-14 municipality, in accordance with the municipality's charter, may
433-15 sell any water system revenue bond issued under this subchapter and
433-16 an additional amount of new revenue bonds not exceeding the total
433-17 amount of revenue bonds then outstanding. (V.A.C.S. Art. 1118n-7,
433-18 Sec. 4 (part).)
433-19 Sec. 1502.256. LIMITATIONS ON ISSUANCE OF ADDITIONAL BONDS.
433-20 Regardless of any contrary provision of a law under which the
433-21 additional or refunding bonds are to be issued, a municipality may
433-22 not issue additional bonds secured by a pledge of the revenue of
433-23 the water system while refunding bonds described by Section
433-24 1502.254(d) or revenue bonds issued under this subchapter are
433-25 outstanding unless the additional bonds are issued in accordance
433-26 with limitations prescribed in the ordinance or deed of trust
433-27 authorizing or securing the first bond issue under this subchapter.
434-1 (V.A.C.S. Art. 1118n-7, Sec. 8.)
434-2 Sec. 1502.257. SUBROGATION: REFUNDING WATER REVENUE BONDS.
434-3 (a) Except as otherwise provided by this section, a municipality
434-4 that issues tax-supported general obligation bonds to refund
434-5 outstanding bonds payable from the revenue of the municipality's
434-6 waterworks system is:
434-7 (1) subrogated to the rights of the holders of the
434-8 bonds being refunded to payments from the waterworks revenue
434-9 pledged to the bonds being refunded; and
434-10 (2) entitled to have paid into the municipality's
434-11 general fund from the revenue pledged to the bonds being refunded
434-12 the amount that would have been payable on the bonds being refunded
434-13 had those bonds remained outstanding.
434-14 (b) The rights described by Subsection (a) do not limit an
434-15 encumbrance on the municipality's water system property that
434-16 secures other water revenue bonds. Such an encumbrance remains in
434-17 force for the sole benefit of the holders of any unpaid water
434-18 revenue bonds of the municipality. The right of the holders of
434-19 those bonds to enforce the encumbrance securing the bonds is
434-20 superior to the municipality's right, under Subsection (a), to
434-21 payment from its water system revenue.
434-22 (c) This section does not affect a municipality's right,
434-23 under a contract under which the municipality issues water revenue
434-24 bonds, to payments into the municipality's general fund from the
434-25 municipality's water system revenue. A payment described by this
434-26 subsection is in addition to any other payment described by this
434-27 section. (V.A.C.S. Art. 1118n-7, Sec. 3.)
435-1 Sec. 1502.258. REFUNDING AGREEMENTS. A municipality may
435-2 enter into agreements with:
435-3 (1) holders of the municipality's outstanding water
435-4 revenue bonds as necessary to refund, refinance, or redeem all or
435-5 part of those bonds; and
435-6 (2) other persons, firms, or corporations as
435-7 considered advisable by the municipality to further aid the
435-8 refunding, refinancing, or redemption. (V.A.C.S. Art. 1118n-7,
435-9 Sec. 4 (part).)
435-10 Sec. 1502.259. COMPTROLLER'S DUTIES. (a) The comptroller's
435-11 duties regarding the acceptance, safekeeping, and use of money and
435-12 instruments deposited with the comptroller under this subchapter
435-13 are the same as the duties prescribed by Section 1207.027 regarding
435-14 deposits with the comptroller under Chapter 1207.
435-15 (b) The comptroller's duties regarding deposits for payment
435-16 with the paying agent and payment and cancellation of outstanding
435-17 bonds under this subchapter are the same as the duties prescribed
435-18 by Section 1207.028 regarding deposits for payment with the paying
435-19 agent and payment and cancellation of obligations being refunded
435-20 under Subchapter B, Chapter 1207. (V.A.C.S. Art. 1118n-7, Secs. 5
435-21 (part), 6 (part).)
435-22 Sec. 1502.260. COMPTROLLER'S FEES. The comptroller may
435-23 charge for the comptroller's services under this subchapter a
435-24 reasonable fee as authorized by Section 1207.032 for services
435-25 performed under Chapter 1207. (V.A.C.S. Art. 1118n-7, Sec. 5
435-26 (part).)
435-27 Sec. 1502.261. WITHDRAWAL OF DEPOSIT. A municipality that
436-1 has made a deposit with the comptroller as authorized by Section
436-2 1502.252(a) may withdraw from the state treasury, in the manner
436-3 provided by Section 1207.031 for the withdrawal of advance
436-4 refunding deposits made under Subchapter B, Chapter 1207, the
436-5 amount deposited to the credit of the account of an outstanding
436-6 bond that has been refunded or redeemed. (V.A.C.S. Art. 1118n-7,
436-7 Sec. 9.)
436-8 Sec. 1502.262. RIGHTS OF HOLDERS. (a) The holder of an
436-9 obligation being refunded under this subchapter by refunding bonds
436-10 has the same rights as those prescribed by Section 1207.034 for the
436-11 holder of an obligation being refunded under Chapter 1207.
436-12 (b) At any time after a municipality has made the deposit
436-13 authorized by Section 1502.252(a) from a source other than the
436-14 proceeds of the sale of refunding bonds, the holder of any bond for
436-15 the benefit of which the deposit was made, regardless of the bond's
436-16 maturity date, may surrender the bond to the comptroller and
436-17 receive in exchange an amount equal to the amount on deposit with
436-18 the comptroller for the benefit of that bond. After surrender and
436-19 payment, the comptroller shall cancel the bond and return the
436-20 canceled bond to the issuing municipality. (V.A.C.S. Art. 1118n-7,
436-21 Sec. 7.)
436-22 Sec. 1502.263. CONFLICT OR INCONSISTENCY WITH OTHER LAW OR
436-23 MUNICIPAL CHARTER. (a) To the extent of any conflict or
436-24 inconsistency between this subchapter and another law or a
436-25 municipal charter, this subchapter controls.
436-26 (b) This subchapter does not affect Subchapter E. (V.A.C.S.
436-27 Art. 1118n-7, Sec. 13 (part).)
437-1 (Sections 1502.264-1502.300 reserved for expansion)
437-2 SUBCHAPTER G. REFUNDING WATERWORKS AND SEWER BONDS;
437-3 ADDITIONAL BONDS: MUNICIPALITIES NOT AUTHORIZED TO ISSUE
437-4 PARITY BONDS
437-5 Sec. 1502.301. APPLICABILITY OF SUBCHAPTER. This subchapter
437-6 applies only to a municipality that:
437-7 (1) has outstanding bonds secured by a pledge of the
437-8 net revenue of its sanitary sewer system;
437-9 (2) has other bonds secured by a lien on its
437-10 waterworks system and the revenue of that system; and
437-11 (3) is not entitled to issue additional parity bonds
437-12 payable from its waterworks revenue. (V.A.C.S. Art. 1118n-10,
437-13 Sec. 1 (part).)
437-14 Sec. 1502.302. AUTHORITY TO ISSUE REFUNDING BONDS. (a) A
437-15 municipality may issue bonds to refund outstanding waterworks
437-16 revenue bonds and sewer revenue bonds into an issue of refunding
437-17 bonds that will be secured by and payable from a pledge of revenue
437-18 of both the waterworks system and the sewer system.
437-19 (b) All or any part of the refunding bonds may be:
437-20 (1) exchanged for outstanding bonds by the comptroller
437-21 in the manner provided by Subchapter D, Chapter 1207; or
437-22 (2) sold for cash for purposes of advance refunding of
437-23 the unexchanged part of the bonds in the manner provided by
437-24 Subchapter B, Chapter 1207. (V.A.C.S. Art. 1118n-10, Sec. 2
437-25 (part).)
437-26 Sec. 1502.303. MATURITY. A refunding bond issued under this
437-27 subchapter must mature within 40 years. (V.A.C.S. Art. 1118n-10,
438-1 Sec. 2 (part).)
438-2 Sec. 1502.304. ADDITIONAL BONDS. (a) A municipality may
438-3 issue additional revenue bonds that will be on a parity with
438-4 previously issued and outstanding revenue bonds under the
438-5 conditions specified in the ordinance or ordinances authorizing the
438-6 issuance of the outstanding bonds.
438-7 (b) Subchapter B applies to bonds issued under this
438-8 subchapter except as otherwise provided by this subchapter.
438-9 (c) A municipality may issue junior lien bonds unless
438-10 prohibited by the ordinance authorizing outstanding bonds.
438-11 (V.A.C.S. Art. 1118n-10, Sec. 4.)
438-12 Sec. 1502.305. ELECTION. (a) A municipality may issue
438-13 refunding bonds under this subchapter without holding an election.
438-14 (b) If, before issuing refunding bonds under this
438-15 subchapter, the municipality has held an election authorizing the
438-16 issuance of bonds secured by a pledge of waterworks or sewer
438-17 revenue, the municipality may issue the bonds after issuing
438-18 refunding bonds and may secure the bonds with a pledge of the net
438-19 revenue of its waterworks system and sewer system without holding
438-20 an additional election. (V.A.C.S. Art. 1118n-10, Secs. 2 (part),
438-21 3.)
438-22 (Sections 1502.306-1502.350 reserved for expansion)
438-23 SUBCHAPTER H. REFUNDING BONDS: MUNICIPALITIES OWNING AND
438-24 OPERATING COMBINED WATER, SEWER, AND ELECTRIC UTILITY SYSTEMS
438-25 Sec. 1502.351. APPLICABILITY OF SUBCHAPTER. This subchapter
438-26 applies only to a municipality that:
438-27 (1) owns the water, sewer, and electric utility
439-1 systems serving the municipality;
439-2 (2) operates those utilities as a combined system; and
439-3 (3) has issued and has outstanding bonds payable from
439-4 the revenue of the combined system. (V.A.C.S. Art. 1118n-11,
439-5 Sec. 1.)
439-6 Sec. 1502.352. AUTHORITY TO ISSUE REFUNDING BONDS. (a) In
439-7 this section, "interest-bearing obligation" includes a:
439-8 (1) bond;
439-9 (2) note;
439-10 (3) warrant;
439-11 (4) certificate of obligation; or
439-12 (5) certificate of indebtedness.
439-13 (b) The governing body of a municipality by resolution,
439-14 ordinance, or other action may issue bonds to refund any
439-15 outstanding interest-bearing obligations and interest coupons
439-16 relating to the obligations if:
439-17 (1) the obligations:
439-18 (A) were issued by or on behalf of the
439-19 municipality; and
439-20 (B) have a stated maturity date or are
439-21 redeemable before maturity not more than 10 years after the
439-22 delivery date of the refunding bonds;
439-23 (2) the refunding will enable the municipality to
439-24 issue additional interest-bearing obligations that the municipality
439-25 could not have issued without the refunding because the obligations
439-26 to be refunded or the resolution, ordinance, or order authorizing
439-27 the issuance of those obligations would require a record of revenue
440-1 greater than the revenue available to the municipality and
440-2 consequently would prevent the issuance of the additional
440-3 obligations; and
440-4 (3) the municipality has demonstrated to the attorney
440-5 general before the attorney general approves the refunding bonds
440-6 that, based on then current conditions, the municipality will have
440-7 adequate pledged resources available at the time required to pay
440-8 the unrefunded part of any issue being refunded.
440-9 (c) Refunding bonds issued under this section may be issued
440-10 to refund all or any part of one or more issues of obligations and
440-11 interest coupons relating to the obligations.
440-12 (d) Subsections (b)(1)(B) and (b)(2) do not apply to
440-13 refunding bonds payable solely from the net revenue of the
440-14 municipality's combined water, sewer, and electric utility systems.
440-15 (V.A.C.S. Art. 1118n-11, Secs. 2 (part), 2A(a), (b).)
440-16 Sec. 1502.353. SOURCES AVAILABLE FOR PAYMENT. A refunding
440-17 bond issued under this subchapter may be secured by and made
440-18 payable from taxes, revenue, property, another source, or a
440-19 combination of sources, to the extent that the issuer is otherwise
440-20 authorized to secure or pay any type of interest-bearing obligation
440-21 by or from that source or those sources. (V.A.C.S. Art. 1118n-11,
440-22 Sec. 2 (part).)
440-23 Sec. 1502.354. COMBINATION ISSUANCE; SUBSEQUENT ISSUANCE.
440-24 Under the terms and with the security set forth in the proceedings
440-25 that authorize the issuance of the refunding bonds, a municipality
440-26 may issue refunding bonds:
440-27 (1) in combination with refunding bonds issued under
441-1 other law or with new bonds;
441-2 (2) with provision for the subsequent issuance of
441-3 additional parity bonds or subordinate lien bonds; or
441-4 (3) both in combination with refunding bonds issued
441-5 under other law or with new bonds and with provision for the
441-6 subsequent issuance of additional bonds. (V.A.C.S. Art. 1118n-11,
441-7 Sec. 2 (part).)
441-8 Sec. 1502.355. ELECTION. (a) Refunding bonds may be issued
441-9 without an election in connection with the issuance of the
441-10 refunding bonds or the creation of an encumbrance in connection
441-11 with the refunding bonds, except as provided by Subsection (b).
441-12 (b) If the constitution of this state requires an election
441-13 to permit a procedure, action, or matter relating to refunding
441-14 bonds, the governing body of the municipality shall hold an
441-15 election substantially in accordance, to the extent appropriate,
441-16 with Chapter 1251 to authorize the procedure, action, or matter.
441-17 (V.A.C.S. Art. 1118n-11, Sec. 2 (part).)
441-18 Sec. 1502.356. MATURITY. A refunding bond issued under this
441-19 subchapter must mature not later than 50 years after its date.
441-20 (V.A.C.S. Art. 1118n-11, Sec. 2 (part).)
441-21 Sec. 1502.357. METHOD AND TERMS OF SALE. (a) Refunding
441-22 bonds issued under this subchapter shall be sold for cash in a
441-23 principal amount:
441-24 (1) necessary to provide all or part of the money
441-25 required to:
441-26 (A) pay the principal of the obligations to be
441-27 refunded and the interest to accrue on those obligations to their
442-1 maturity; or
442-2 (B) redeem the obligations to be refunded,
442-3 before maturity, on the date or dates the obligations are subject
442-4 to redemption, including the principal, interest to accrue on the
442-5 obligations to their redemption date or dates, and any required
442-6 redemption premium; and
442-7 (2) sufficient to pay the expenses related to paying
442-8 the obligations to be refunded.
442-9 (b) The refunding bonds shall be sold in the manner
442-10 determined by the municipality's governing body. (V.A.C.S.
442-11 Art. 1118n-11, Sec. 4 (part).)
442-12 Sec. 1502.358. REGISTRATION WITHOUT CANCELLATION OF
442-13 OBLIGATIONS TO BE REFUNDED. The comptroller shall register
442-14 refunding bonds issued under this subchapter after the bonds have
442-15 been approved by the attorney general, without the surrender,
442-16 exchange, or cancellation of the obligations to be refunded.
442-17 (V.A.C.S. Art. 1118n-11, Sec. 3 (part).)
442-18 Sec. 1502.359. REDEMPTION. (a) If an obligation to be
442-19 refunded by the sale of refunding bonds under this subchapter is
442-20 subject to redemption before maturity:
442-21 (1) the obligation shall be called for redemption on
442-22 the date on which it is redeemable, according to its terms; and
442-23 (2) the proceedings relating to the redemption call
442-24 and any required notice of redemption shall be submitted to the
442-25 attorney general with the proceedings authorizing the issuance of
442-26 the refunding bonds.
442-27 (b) If notice of redemption for any obligation to be
443-1 refunded is required by the terms of the obligation to be given or
443-2 published at a time after the date of the refunding bonds:
443-3 (1) the obligation is not subject to redemption before
443-4 maturity for the purposes of this subchapter; and
443-5 (2) the amount required to be deposited with the
443-6 comptroller under this subchapter must be sufficient to pay the
443-7 principal of and interest on the obligation to be refunded as the
443-8 obligation comes due without being redeemed before maturity.
443-9 (c) This subsection applies only to refunding bonds payable
443-10 solely from the net revenue of the municipality's combined water,
443-11 sewer, and electric utility systems. If an obligation to be
443-12 refunded is not callable at the time of refunding but will be
443-13 subject to redemption before maturity, the issuer may provide in
443-14 the refunding proceedings for redeeming the obligation before
443-15 maturity. An issuer who provides for redemption before maturity
443-16 under this subsection is not required to deposit with the
443-17 comptroller under this subchapter an amount greater than the amount
443-18 necessary to pay the principal of and interest on the obligation as
443-19 it is redeemed. (V.A.C.S. Art. 1118n-11, Secs. 2A(a), (d), 4
443-20 (part).)
443-21 Sec. 1502.360. INVESTMENT OF PROCEEDS. (a) The
443-22 municipality may immediately invest all or any required part of the
443-23 proceeds from the bond sale, and any other necessary available
443-24 funds, in:
443-25 (1) direct obligations of the United States;
443-26 (2) obligations the principal of and interest on which
443-27 are unconditionally guaranteed by the United States; or
444-1 (3) obligations the attorney general of the United
444-2 States has determined to be general obligations of the United
444-3 States backed by its full faith and credit.
444-4 (b) An investment must mature, bear interest, and be
444-5 payable, at times and in amounts that, combined with any uninvested
444-6 money, will provide, without reinvestment, the money required to
444-7 pay:
444-8 (1) the principal of and interest on the obligations
444-9 to be refunded as those obligations come due;
444-10 (2) the redemption price of obligations to be refunded
444-11 and redeemed before maturity, on the date on which the obligations
444-12 have been called for redemption; and
444-13 (3) the additional amount required to pay the service
444-14 charges of any paying agent.
444-15 (c) An investment must be made in a manner providing that
444-16 the investment proceeds, without reinvestment, will be available
444-17 for deposit by the comptroller with the paying agent under Section
444-18 1502.365. (V.A.C.S. Art. 1118n-11, Secs. 5, 6(a) (part).)
444-19 Sec. 1502.361. DEPOSIT WITH COMPTROLLER. The municipality
444-20 shall immediately deposit with the comptroller:
444-21 (1) any proceeds from the bond sale that are not
444-22 invested as provided by Section 1502.360;
444-23 (2) any investment made under Section 1502.360; and
444-24 (3) any amount in addition to the deposits described
444-25 by Subdivisions (1) and (2) that is necessary to produce a total
444-26 amount sufficient to pay the principal of and interest on the
444-27 obligations to be refunded. (V.A.C.S. Art. 1118n-11, Sec. 6(a)
445-1 (part).)
445-2 Sec. 1502.362. CERTIFICATION OF DEPOSIT ADEQUACY. (a) The
445-3 comptroller shall certify to the municipality as to the adequacy of
445-4 the deposits made under Section 1502.361, considering the dates the
445-5 principal of and interest on any investments will come due.
445-6 (b) In computing the adequacy of investments required to be
445-7 deposited, the comptroller may rely on receiving both the principal
445-8 and the interest scheduled to come due on the investments in
445-9 accordance with the terms of the investments. Any additional
445-10 amount that would be required to be deposited if no interest were
445-11 scheduled to come due on the investments may be reduced
445-12 accordingly.
445-13 (c) The comptroller may rely on a certificate by the chief
445-14 clerical officer of the municipality's governing body as to the
445-15 amount of the paying agent's service charges. (V.A.C.S.
445-16 Art. 1118n-11, Sec. 6(a) (part).)
445-17 Sec. 1502.363. COMPTROLLER TO ACCEPT AND KEEP SAFE DEPOSITS.
445-18 (a) The comptroller shall:
445-19 (1) accept each deposit of money, investments, or
445-20 proceeds of money or investments received under this subchapter;
445-21 and
445-22 (2) safely keep and use the money, investments, or
445-23 proceeds only for a purpose specified in this subchapter.
445-24 (b) Money, investments, or proceeds deposited with the
445-25 comptroller under this subchapter may not be:
445-26 (1) used by or for the benefit of this state or for
445-27 the benefit of a creditor of this state, except as provided by
446-1 Section 1502.367; or
446-2 (2) commingled with other money or investments.
446-3 (c) The comptroller shall collect promptly, when due and
446-4 payable, all principal of and interest on investments deposited
446-5 with the comptroller under this subchapter.
446-6 (d) The comptroller may not invest or reinvest any money
446-7 deposited with or received by the comptroller from any investment
446-8 under this subchapter.
446-9 (e) A bondholder, the municipality, or another interested
446-10 party may bring a writ of mandamus or use any other legal remedy to
446-11 require the comptroller to perform the comptroller's duties under
446-12 this subchapter. (V.A.C.S. Art. 1118n-11, Secs. 6(a) (part), (b)
446-13 (part).)
446-14 Sec. 1502.364. DEPOSITS TO BE HELD IN ESCROW; LIEN; TITLE.
446-15 (a) The comptroller shall hold in escrow and in trust each deposit
446-16 of money or investments and proceeds of money or investments.
446-17 (b) Each deposit, including proceeds, is charged with an
446-18 irrevocable first lien and pledge in favor of the holders of the
446-19 obligations to be paid from that deposit.
446-20 (c) Each deposit, including proceeds, is public funds.
446-21 Until a deposit is paid out as provided by this subchapter, legal
446-22 title to the deposit is in the comptroller as trustee, and
446-23 equitable title is in the issuing municipality. (V.A.C.S.
446-24 Art. 1118n-11, Sec. 6(b) (part).)
446-25 Sec. 1502.365. DEPOSIT BY COMPTROLLER WITH PAYING AGENT;
446-26 PAYING AGENT'S DUTIES. (a) The comptroller shall deposit
446-27 investment proceeds with the paying agent, in current available
447-1 funds, in the required amounts, not later than one business day
447-2 before each scheduled maturity date, due date, or redemption date
447-3 of the obligations being refunded.
447-4 (b) If there is more than one paying agent for an obligation
447-5 being refunded under this subchapter, the comptroller shall make
447-6 required deposits with:
447-7 (1) the paying agent located in this state having the
447-8 largest capital and surplus; or
447-9 (2) the paying agent having the largest capital and
447-10 surplus, if no paying agent is located in this state and more than
447-11 one paying agent is located in another state.
447-12 (c) If there is more than one paying agent, the agent with
447-13 whom the comptroller made the deposit under Subsection (b) shall
447-14 make the necessary money available to any other paying agent to pay
447-15 or redeem an obligation presented for payment or redemption. The
447-16 comptroller shall instruct a paying agent regarding the agent's
447-17 duties under this subsection. (V.A.C.S. Art. 1118n-11, Secs. 6(a)
447-18 (part), (c).)
447-19 Sec. 1502.366. RETURN OF SURPLUS. The comptroller shall
447-20 return to the issuing municipality any surplus that remains with
447-21 the comptroller in connection with a deposit of money or
447-22 investments under this subchapter after the comptroller has finally
447-23 performed all the comptroller's duties relating to the deposit
447-24 under this subchapter. (V.A.C.S. Art. 1118n-11, Sec. 6(b) (part).)
447-25 Sec. 1502.367. COMPTROLLER'S FEES. The comptroller may
447-26 charge a reasonable fee for the comptroller's services under this
447-27 subchapter as authorized by Section 1207.032 for services performed
448-1 under Chapter 1207. (V.A.C.S. Art. 1118n-11, Sec. 6(a) (part).)
448-2 Sec. 1502.368. AUTHORITY TO DEPOSIT DIRECTLY WITH PAYING
448-3 AGENT. (a) Instead of making a deposit with the comptroller as
448-4 provided by Section 1502.361, a municipality may make the deposit
448-5 described by that section directly with a paying agent for the
448-6 obligations to be refunded if the paying agent:
448-7 (1) is a bank or trust company located in this state;
448-8 (2) has trust powers; and
448-9 (3) is a member of the Federal Reserve System.
448-10 (b) Except as otherwise provided by this section, a paying
448-11 agent that receives a deposit under Subsection (a) shall act in the
448-12 same capacity as the comptroller to the extent appropriate and
448-13 shall perform the comptroller's duties under this subchapter.
448-14 (c) The municipality and the paying agent shall enter into
448-15 an appropriate trust or escrow agreement under which a deposit made
448-16 under Subsection (a) shall be held for safekeeping, in escrow, and
448-17 in trust for the holders of the obligations to be refunded and is
448-18 charged with an irrevocable first lien in favor of and for the
448-19 benefit of the holders of those obligations.
448-20 (d) A deposit of money made with a paying agent under
448-21 Subsection (a) is public funds and shall be secured at all times by
448-22 a pledge of:
448-23 (1) direct obligations of the United States;
448-24 (2) obligations the principal of and interest on which
448-25 are unconditionally guaranteed by the United States; or
448-26 (3) obligations the attorney general of the United
448-27 States has determined to be general obligations of the United
449-1 States backed by its full faith and credit.
449-2 (e) If there is more than one paying agent for an obligation
449-3 to be refunded, the paying agent that receives a deposit under
449-4 Subsection (a) shall make the required current funds available, to
449-5 the extent necessary, to each other paying agent to pay or redeem
449-6 the obligation on presentment. (V.A.C.S. Art. 1118n-11, Sec. 7.)
449-7 Sec. 1502.369. DISCHARGE AND FINAL PAYMENT; REDEMPTION;
449-8 SUBORDINATION. (a) An initial deposit of money or investments
449-9 with the comptroller or directly with a paying agent under this
449-10 subchapter constitutes the making of firm banking and financial
449-11 arrangements for the discharge and final payment or redemption of
449-12 the obligations to be refunded.
449-13 (b) Obligations to be refunded continue to be obligations of
449-14 the municipality, but automatically on the making of the deposit:
449-15 (1) the obligations become secured solely by and
449-16 payable solely from the deposit and proceeds of the deposit; and
449-17 (2) any previous encumbrance existing in connection
449-18 with the obligations is finally discharged and released as a matter
449-19 of law.
449-20 (c) Obligations to be refunded remain outstanding after the
449-21 deposit is made only for the purpose of receiving the funds
449-22 provided by the municipality for payment or redemption of the
449-23 obligations under this subchapter. The obligations may not be
449-24 considered outstanding for any other purpose, including
449-25 ascertaining the municipality's power to issue bonds or computing
449-26 any limitations in connection with a municipality's issuance of
449-27 bonds.
450-1 (d) Notwithstanding Subsections (a)-(c), the municipality
450-2 may provide in the proceedings authorizing the issuance of a
450-3 refunding bond that the refunding bond is subordinate to the
450-4 obligations to be refunded. The subordination may be made only in
450-5 the manner and to the extent provided by those proceedings.
450-6 (V.A.C.S. Art. 1118n-11, Sec. 8.)
450-7 Sec. 1502.370. RIGHT TO DEMAND OR RECEIVE EARLY PAYMENT.
450-8 The holder of an obligation to be refunded under this subchapter
450-9 may not demand or receive payment of the obligation to be refunded
450-10 before its scheduled maturity date, due date, or redemption date
450-11 unless the proceedings authorizing the refunding bonds specifically
450-12 provide for the earlier payment. (V.A.C.S. Art. 1118n-11, Sec. 9.)
450-13 Sec. 1502.371. CONFLICT OR INCONSISTENCY WITH OTHER LAW OR
450-14 MUNICIPAL CHARTER. When bonds are being issued under this
450-15 subchapter, to the extent of any conflict or inconsistency between
450-16 this subchapter and another law or a municipal charter, this
450-17 subchapter controls. (V.A.C.S. Art. 1118n-11, Sec. 11 (part).)
450-18 (Sections 1502.372-1502.400 reserved for expansion)
450-19 SUBCHAPTER I. REFUNDING BONDS: ELECTRIC UTILITY SYSTEM OR
450-20 ELECTRIC AND GAS UTILITY SYSTEM
450-21 Sec. 1502.401. APPLICABILITY OF SUBCHAPTER. This subchapter
450-22 applies only to a municipality that has outstanding bonds or other
450-23 obligations secured solely by a pledge of the net revenue of, or by
450-24 a pledge of the net revenue of and a mortgage on, the
450-25 municipality's:
450-26 (1) electric utility system; or
450-27 (2) electric utility system and gas utility system.
451-1 (V.A.C.S. Art. 1118n-12, Sec. 1(a).)
451-2 Sec. 1502.402. CONSTRUCTION. This subchapter shall be
451-3 liberally construed to accomplish the purposes of this subchapter.
451-4 (V.A.C.S. Art. 1118n-12, Sec. 13 (part).)
451-5 Sec. 1502.403. AUTHORITY TO ISSUE REFUNDING BONDS. (a) The
451-6 governing body of a municipality may issue bonds to refund:
451-7 (1) all or any part of the outstanding bonds or other
451-8 interest-bearing obligations secured solely by a pledge of the net
451-9 revenue of, or by a pledge of the net revenue of and a mortgage on,
451-10 the municipality's:
451-11 (A) electric utility system; or
451-12 (B) electric utility system and gas utility
451-13 system; and
451-14 (2) any interest coupons relating to obligations
451-15 described by Subdivision (1).
451-16 (b) A municipality may issue refunding bonds under this
451-17 subchapter to refund part of an outstanding issue of bonds or other
451-18 interest-bearing obligations only if the municipality demonstrates
451-19 to the attorney general before the attorney general approves the
451-20 bonds that, based on then current conditions, the municipality
451-21 will have adequate pledged resources available at the times
451-22 required to pay the unrefunded part of the issue. (V.A.C.S.
451-23 Art. 1118n-12, Sec. 2 (part).)
451-24 Sec. 1502.404. SOURCES AVAILABLE FOR PAYMENT. (a) Except
451-25 as provided by Subsection (b), refunding bonds issued under this
451-26 subchapter and the interest on the bonds and any redemption
451-27 premium, in the manner provided by the municipality's governing
452-1 body, may be:
452-2 (1) secured by a first or subordinate lien on and
452-3 pledge of, and made payable from:
452-4 (A) the same source as the obligations to be
452-5 refunded;
452-6 (B) any other revenue, income, property, source,
452-7 or resource of the governing body or the municipality; or
452-8 (C) any combination of those sources or
452-9 resources; and
452-10 (2) additionally secured by an instrument evidencing
452-11 a lien on any property.
452-12 (b) A refunding bond issued under this subchapter may not be
452-13 secured by or made payable from any tax. (V.A.C.S. Art. 1118n-12,
452-14 Sec. 2 (part).)
452-15 Sec. 1502.405. COMBINATION ISSUANCE; SUBSEQUENT ISSUANCE.
452-16 (a) Under the terms and with the security set forth in the
452-17 proceedings that authorize the issuance of the refunding bonds, a
452-18 municipality may issue refunding bonds:
452-19 (1) in combination with new bonds;
452-20 (2) with provision for the subsequent issuance of
452-21 additional parity bonds or subordinate lien bonds; or
452-22 (3) both in combination with new bonds and with
452-23 provision for the subsequent issuance of additional bonds.
452-24 (b) In combination with refunding bonds issued under this
452-25 subchapter a municipality may issue new bonds under this subchapter
452-26 for any purpose for which the municipality is authorized by law or
452-27 by home-rule charter to issue revenue bonds or other
453-1 interest-bearing obligations. (V.A.C.S. Art. 1118n-12, Sec. 2
453-2 (part).)
453-3 Sec. 1502.406. ELECTION. Refunding bonds may be issued
453-4 without an election in connection with the issuance of the
453-5 refunding bonds or the creation of an encumbrance in connection
453-6 with the refunding bonds. (V.A.C.S. Art. 1118n-12, Sec. 2 (part).)
453-7 Sec. 1502.407. MATURITY. A bond issued under this
453-8 subchapter must mature not later than 50 years after its date.
453-9 (V.A.C.S. Art. 1118n-12, Sec. 2 (part).)
453-10 Sec. 1502.408. ISSUANCE IN EXCHANGE FOR OBLIGATIONS TO BE
453-11 REFUNDED. (a) Refunding bonds may be issued to be exchanged under
453-12 this subchapter for, and on the surrender and cancellation of, the
453-13 obligations to be refunded.
453-14 (b) The comptroller shall register a refunding bond and
453-15 deliver it to the holder of the obligation to be refunded, in
453-16 accordance with the proceedings authorizing the refunding bond.
453-17 The exchange may be made in one delivery or installment deliveries.
453-18 (V.A.C.S. Art. 1118n-12, Sec. 5 (part).)
453-19 Sec. 1502.409. CASH SALE. (a) Instead of issuing refunding
453-20 bonds to be exchanged for the obligations to be refunded, the
453-21 governing body of a municipality may issue refunding bonds to be
453-22 sold for cash in a principal amount:
453-23 (1) necessary to provide all or part of the money
453-24 required to:
453-25 (A) pay the principal of the obligations to be
453-26 refunded and the interest to accrue on those obligations to their
453-27 maturity; or
454-1 (B) redeem the obligations to be refunded,
454-2 before maturity, on the date or dates the obligations are subject
454-3 to redemption, including the principal, interest to accrue on the
454-4 obligations to their redemption date or dates, and any required
454-5 redemption premium; and
454-6 (2) sufficient to:
454-7 (A) pay the expenses related to the issuance of
454-8 the bonds;
454-9 (B) pay the expenses related to paying the
454-10 obligations to be refunded;
454-11 (C) provide any amount the governing body
454-12 considers necessary to fund deposits in:
454-13 (i) a debt service reserve fund;
454-14 (ii) an interest and sinking fund; or
454-15 (iii) any other fund created in the
454-16 proceedings authorizing the bonds;
454-17 (D) pay interest on all bonds issued under this
454-18 subchapter for the period prescribed by the governing body; and
454-19 (E) provide for any other amount the governing
454-20 body considers necessary.
454-21 (b) The refunding bonds:
454-22 (1) shall be sold under the terms and procedures for
454-23 the sale as determined by the governing body; and
454-24 (2) may be sold at public or private sale. (V.A.C.S.
454-25 Art. 1118n-12, Sec. 5 (part).)
454-26 Sec. 1502.410. REGISTRATION WITHOUT CANCELLATION OF
454-27 OBLIGATIONS TO BE REFUNDED. If a municipality's governing body
455-1 authorizes refunding bonds or new bonds in combination with
455-2 refunding bonds to be sold for cash under this subchapter, the
455-3 comptroller shall register the refunding bonds and new bonds in
455-4 combination with the refunding bonds after the bonds have been
455-5 approved by the attorney general, without the surrender, exchange,
455-6 or cancellation of the obligations to be refunded. (V.A.C.S.
455-7 Art. 1118n-12, Sec. 5 (part).)
455-8 Sec. 1502.411. REDEMPTION. (a) If an obligation to be
455-9 refunded by the sale of bonds under this subchapter is subject to
455-10 redemption before maturity, the municipality's governing body may
455-11 call the obligation for redemption on any date on which it is
455-12 redeemable.
455-13 (b) If the governing body calls an obligation for redemption
455-14 under this section, the proceedings relating to the call shall be
455-15 submitted to the attorney general along with the proceedings
455-16 authorizing the issuance of the refunding bonds. (V.A.C.S.
455-17 Art. 1118n-12, Sec. 5 (part).)
455-18 Sec. 1502.412. DEPOSIT WITH COMPTROLLER. (a) Except as
455-19 provided by Section 1502.413, after a refunding bond issued under
455-20 this subchapter is sold and delivered to the purchaser, the
455-21 municipality's governing body immediately shall deposit with the
455-22 comptroller, from the proceeds of the sale and any other funds
455-23 available for the purpose, the amount required to:
455-24 (1) pay the principal of the obligations to be
455-25 refunded and the interest to accrue on those obligations to their
455-26 maturity; or
455-27 (2) redeem the obligations to be refunded, before
456-1 maturity, on the date or dates the obligations are subject to
456-2 redemption, including the principal, interest to accrue on the
456-3 obligations to their redemption date or dates, and any required
456-4 redemption premium.
456-5 (b) The municipality shall file with the comptroller a
456-6 certificate or other instrument or document that clearly shows:
456-7 (1) the date the principal of an obligation to be
456-8 refunded matures and the principal amount;
456-9 (2) the date the interest on an obligation to be
456-10 refunded becomes due and the amount of the interest;
456-11 (3) any date on which an obligation to be refunded has
456-12 been called for redemption before maturity;
456-13 (4) the redemption price;
456-14 (5) any paying agent for an obligation to be refunded;
456-15 and
456-16 (6) the charges to be made by the paying agent for
456-17 paying and redeeming the obligation.
456-18 (c) The comptroller may rely on a certificate or other
456-19 instrument or document filed under Subsection (b). (V.A.C.S.
456-20 Art. 1118n-12, Sec. 6 (part).)
456-21 Sec. 1502.413. INVESTMENT OF PROCEEDS. (a) Except as
456-22 provided by Subsection (d), instead of making the deposit required
456-23 by Section 1502.412, the municipality's governing body may
456-24 immediately invest all or any part of the proceeds from the bond
456-25 sale, and any other necessary available money, in:
456-26 (1) direct obligations of the United States;
456-27 (2) obligations the principal of and interest on which
457-1 are unconditionally guaranteed by the United States; or
457-2 (3) obligations the attorney general of the United
457-3 States has determined to be general obligations of the United
457-4 States backed by its full faith and credit.
457-5 (b) An investment must mature, bear interest, and be payable
457-6 at times and in amounts that, without reinvestment and in addition
457-7 to any money initially deposited for the purpose, will provide the
457-8 money required to pay:
457-9 (1) the principal of and interest on the obligations
457-10 to be refunded as those obligations come due;
457-11 (2) the redemption price of obligations to be refunded
457-12 and redeemed before maturity, on the date on which the obligations
457-13 have been called for redemption, including principal, any interest
457-14 accrued to the redemption date, and any required redemption
457-15 premium; and
457-16 (3) the additional amount required to pay the service
457-17 charges of any paying agent.
457-18 (c) An investment must be made in such a manner that the
457-19 investment proceeds, without reinvestment, will be available for
457-20 deposit by the comptroller with the paying agent under Section
457-21 1502.417.
457-22 (d) The municipality shall deposit comptroller's fees in
457-23 cash with the comptroller regardless of whether the municipality
457-24 chooses to invest bond proceeds under this section. (V.A.C.S.
457-25 Art. 1118n-12, Sec. 7 (part).)
457-26 Sec. 1502.414. DEPOSIT OF INVESTMENTS WITH COMPTROLLER;
457-27 DEPOSIT ADEQUACY. (a) The municipality's governing body
458-1 immediately shall deposit any investment made under Section
458-2 1502.413 with the comptroller.
458-3 (b) In computing the amount of the investment required to be
458-4 deposited, the municipality and the comptroller shall rely on
458-5 receiving both the principal and any interest scheduled to mature
458-6 and accrue or come due on the investment, to the extent that the
458-7 principal and interest are scheduled to mature and accrue or come
458-8 due before the maturity date, due date, or redemption date,
458-9 respectively, of the obligations to be refunded.
458-10 (c) Any amount that would be required to be deposited if no
458-11 interest or increase were scheduled to accrue or come due may, at
458-12 the governing body's option, be reduced accordingly. (V.A.C.S.
458-13 Art. 1118n-12, Sec. 7 (part).)
458-14 Sec. 1502.415. COMPTROLLER TO ACCEPT AND KEEP SAFE DEPOSITS.
458-15 (a) The comptroller shall:
458-16 (1) accept each deposit of money, investments, or
458-17 proceeds of money or investments received under this subchapter;
458-18 and
458-19 (2) safely keep and use the money, investments, or
458-20 proceeds only for a purpose specified in this subchapter.
458-21 (b) Money, investments, or proceeds deposited with the
458-22 comptroller under this subchapter may not be:
458-23 (1) used by or for the benefit of this state or for
458-24 the benefit of a creditor of this state, except as provided by
458-25 Section 1502.419; or
458-26 (2) commingled with the general revenue fund of this
458-27 state or any other special funds or accounts held by the
459-1 comptroller.
459-2 (c) The comptroller shall collect promptly, when due and
459-3 payable, all principal of and interest on investments deposited
459-4 with the comptroller under this subchapter.
459-5 (d) The comptroller may not invest or reinvest any money
459-6 deposited with the comptroller or received by the comptroller from
459-7 any investment deposited with the comptroller under this
459-8 subchapter.
459-9 (e) The part of a deposit of money or investments or the
459-10 proceeds of money or investments that represents the amount paid
459-11 for the comptroller's fees is the only part of any deposit with the
459-12 comptroller under this subchapter that is in the state treasury.
459-13 (f) A bondholder, the municipality, or another interested
459-14 party may bring a writ of mandamus or use any other legal or
459-15 equitable remedy to require the comptroller to perform the
459-16 comptroller's duties under this subchapter. (V.A.C.S.
459-17 Art. 1118n-12, Secs. 7 (part), 8 (part).)
459-18 Sec. 1502.416. DEPOSIT TO BE HELD IN ESCROW; LIEN; TITLE.
459-19 (a) The comptroller shall hold in escrow and in trust each deposit
459-20 of money or investments and proceeds of money or investments on
459-21 behalf of the holders of the obligations to be paid from the
459-22 deposit.
459-23 (b) Each deposit, including proceeds, is charged with an
459-24 irrevocable first lien and pledge in favor of the holders of the
459-25 obligations to be paid from that deposit.
459-26 (c) Each deposit, including proceeds, is public funds.
459-27 Until a deposit is paid out as provided by this subchapter, legal
460-1 title to the deposit is in the comptroller as trustee, and
460-2 equitable title is in the issuing municipality. (V.A.C.S.
460-3 Art. 1118n-12, Sec. 8 (part).)
460-4 Sec. 1502.417. DEPOSIT BY COMPTROLLER WITH PAYING AGENT;
460-5 PAYING AGENT'S DUTIES. (a) To pay the amounts required on each
460-6 scheduled maturity date, due date, or redemption date of the
460-7 obligations being refunded and the paying agent's service charges,
460-8 the comptroller shall deposit the amounts required with the paying
460-9 agent in current available funds not later than each scheduled
460-10 maturity date, due date, or redemption date from:
460-11 (1) the deposit made under Section 1502.412, if the
460-12 bond sale proceeds are deposited with the comptroller under that
460-13 section; or
460-14 (2) the investment proceeds, if the bond sale proceeds
460-15 are invested under Section 1502.413.
460-16 (b) If there is more than one paying agent for an obligation
460-17 being refunded under this subchapter, the comptroller shall make
460-18 required deposits with:
460-19 (1) the paying agent located in this state, if only
460-20 one paying agent is located in this state;
460-21 (2) the paying agent located in this state having the
460-22 largest capital and surplus, if more than one paying agent is
460-23 located in this state; or
460-24 (3) the paying agent having the largest capital and
460-25 surplus, if no paying agent is located in this state and more than
460-26 one paying agent is located in another state.
460-27 (c) If there is more than one paying agent, the agent with
461-1 whom the comptroller made the deposit under Subsection (b) shall
461-2 make the necessary money available to any other paying agent to pay
461-3 or redeem an obligation when due. The comptroller shall instruct a
461-4 paying agent regarding the agent's duties under this subsection.
461-5 (V.A.C.S. Art. 1118n-12, Secs. 6 (part), 7 (part), 9 (part).)
461-6 Sec. 1502.418. RETURN OF SURPLUS. The comptroller shall
461-7 return to the issuing municipality any surplus that remains with
461-8 the comptroller in connection with a deposit of money or
461-9 investments under this subchapter or the proceeds of money or
461-10 investments deposited under this subchapter. (V.A.C.S.
461-11 Art. 1118n-12, Sec. 8 (part).)
461-12 Sec. 1502.419. COMPTROLLER'S FEES. The comptroller may
461-13 charge a reasonable fee for the comptroller's services under this
461-14 subchapter as authorized by Section 1207.032 for services performed
461-15 under Chapter 1207. (V.A.C.S. Art. 1118n-12, Sec. 6 (part).)
461-16 Sec. 1502.420. AUTHORITY TO DEPOSIT DIRECTLY WITH PAYING
461-17 AGENT. (a) Instead of making a deposit with the comptroller as
461-18 provided by Section 1502.412 for bond proceeds or by Section
461-19 1502.414 for investments of bond proceeds, a municipality may
461-20 deposit bond proceeds or investments for the obligations to be
461-21 refunded directly with:
461-22 (1) a paying agent for the obligations to be refunded;
461-23 or
461-24 (2) the trustee under a trust indenture, trust
461-25 agreement, deed of trust, or other instrument securing the
461-26 obligations to be refunded.
461-27 (b) Except as otherwise provided by this section, a paying
462-1 agent or trustee that receives a deposit under Subsection (a) shall
462-2 act in the same capacity as the comptroller and shall perform the
462-3 comptroller's functions and duties under this subchapter to the
462-4 extent appropriate.
462-5 (c) The municipality and the paying agent may enter into an
462-6 appropriate trust or escrow agreement. A deposit made under
462-7 Subsection (a) shall be held for safekeeping, in escrow, and in
462-8 trust for the holders of the obligations being refunded and is
462-9 charged with an irrevocable first lien in favor of and for the
462-10 benefit of the holders of those obligations.
462-11 (d) The agreement described in Subsection (c) may provide
462-12 that a deposit of money may be:
462-13 (1) invested in obligations that are:
462-14 (A) direct obligations of the United States;
462-15 (B) obligations the interest on and principal of
462-16 which are unconditionally guaranteed by the United States; or
462-17 (C) obligations the attorney general of the
462-18 United States has determined to be general obligations of the
462-19 United States backed by its full faith and credit; or
462-20 (2) deposited in interest-bearing time deposits
462-21 secured at all times by an equal amount in market value of any of
462-22 the obligations described in Subdivision (1).
462-23 (e) The agreement described in Subsection (c) shall provide
462-24 for deposits with each paying agent to pay or redeem the
462-25 obligations to be refunded when due and may provide that if the
462-26 amount of money and investments held in escrow exceeds the amount
462-27 required for purposes of this subchapter, the excess shall be
463-1 transferred and delivered to the municipality or as directed by the
463-2 municipality's governing body, to be used for any purpose
463-3 authorized by law, including payment of revenue bonds issued under
463-4 this subchapter or other law.
463-5 (f) Sections 1502.417(b) and (c) do not apply to a deposit
463-6 made under this section. (V.A.C.S. Art. 1118n-12, Secs. 9 (part),
463-7 10.)
463-8 Sec. 1502.421. DISCHARGE AND FINAL PAYMENT; REDEMPTION;
463-9 SUBORDINATION. (a) An initial deposit of money or investments
463-10 with the comptroller or directly with a paying agent or trustee
463-11 under this subchapter constitutes the making of firm banking and
463-12 financial arrangements for the discharge and final payment or
463-13 redemption of the obligations to be refunded.
463-14 (b) Obligations to be refunded continue to be obligations of
463-15 the municipality, but automatically on the making of the deposit:
463-16 (1) the obligations become secured solely by and
463-17 payable solely from the deposit and proceeds of the deposit; and
463-18 (2) any previous encumbrance existing in connection
463-19 with the obligations is finally discharged and released as a matter
463-20 of law.
463-21 (c) Obligations to be refunded remain outstanding after the
463-22 deposit is made only for the purpose of receiving the funds
463-23 provided by the municipality for payment or redemption of the
463-24 obligations under this subchapter. The obligations may not be
463-25 considered outstanding for any other purpose, including
463-26 ascertaining the municipality's power to issue bonds or computing
463-27 any limitations in connection with a municipality's issuance of
464-1 bonds.
464-2 (d) Notwithstanding Subsections (a)-(c), the municipality
464-3 may provide in the proceedings authorizing the issuance of a
464-4 refunding bond that the refunding bond is subordinate to the
464-5 obligations to be refunded. The subordination may be made only in
464-6 the manner and to the extent provided by those proceedings.
464-7 (V.A.C.S. Art. 1118n-12, Sec. 12.)
464-8 Sec. 1502.422. RIGHT TO DEMAND OR RECEIVE EARLY PAYMENT.
464-9 The holder of an obligation to be refunded under this subchapter
464-10 may not demand or receive payment of the obligation to be refunded
464-11 before its scheduled maturity date, due date, or redemption date
464-12 unless the proceedings authorizing the refunding bonds specifically
464-13 provide for the earlier payment. (V.A.C.S. Art. 1118n-12, Sec.
464-14 11.)
464-15 Sec. 1502.423. CONFLICT OR INCONSISTENCY WITH OTHER LAW OR
464-16 MUNICIPAL CHARTER. To the extent of any conflict or inconsistency
464-17 between this subchapter and another law or a municipal charter,
464-18 this subchapter controls. (V.A.C.S. Art. 1118n-12, Sec. 13
464-19 (part).)
464-20 (Sections 1502.424-1502.450 reserved for expansion)
464-21 SUBCHAPTER J. COMBINED ISSUE OF REFUNDING AND ADDITIONAL
464-22 BONDS: MUNICIPALITY IN COUNTY WITH POPULATION OF
464-23 525,000 OR MORE
464-24 Sec. 1502.451. APPLICABILITY OF SUBCHAPTER. This subchapter
464-25 applies only to a municipality that:
464-26 (1) is in a county with a population of 525,000 or
464-27 more; and
465-1 (2) has issued bonds, notes, warrants, or other
465-2 obligations payable from the revenue of the municipality's water or
465-3 sewer system or sewage disposal plant, or any combination of those
465-4 systems, all or any part of which are outstanding. (V.A.C.S.
465-5 Art. 1118p, Sec. 1 (part).)
465-6 Sec. 1502.452. AUTHORITY TO ISSUE BONDS. A municipality may
465-7 issue new bonds payable from the net revenue of the municipality's
465-8 water or sewer system or sewage disposal plant or any combination
465-9 of those systems to:
465-10 (1) refund outstanding bonds, warrants, notes, or
465-11 other obligations described by Section 1502.451(2); and
465-12 (2) further build, improve, enlarge, extend, or repair
465-13 one or more of those systems. (V.A.C.S. Art. 1118p, Sec. 1
465-14 (part).)
465-15 Sec. 1502.453. PLEDGE OF REVENUE. A municipality may pledge
465-16 the net revenue of its water or sewer system or sewage disposal
465-17 plant or any combination of those systems to pay the principal of
465-18 and interest on the refunding and further construction bonds
465-19 authorized by Section 1502.452. (V.A.C.S. Art. 1118p, Sec. 1
465-20 (part).)
465-21 Sec. 1502.454. ENCUMBRANCE OF PHYSICAL PROPERTIES; GRANT OF
465-22 FRANCHISE. The governing body of the municipality may:
465-23 (1) encumber the physical properties of the system or
465-24 systems; and
465-25 (2) grant a franchise to a purchaser under foreclosure
465-26 to operate the system or systems for a period not to exceed 20
465-27 years after purchase, subject to all laws regulating the same then
466-1 in force. (V.A.C.S. Art. 1118p, Sec. 1 (part).)
466-2 Sec. 1502.455. DESIGNATION. Bonds issued under this
466-3 subchapter may be called "__________ Refunding and Further
466-4 Construction Bonds." (V.A.C.S. Art. 1118p, Sec. 2 (part).)
466-5 Sec. 1502.456. MATURITY. A bond issued under this
466-6 subchapter must mature not later than 30 years after its date.
466-7 (V.A.C.S. Art. 1118p, Sec. 2 (part).)
466-8 Sec. 1502.457. ELECTION. (a) A municipality may not issue
466-9 bonds under this subchapter unless the bonds have been authorized
466-10 by a majority vote of the qualified voters of the municipality in
466-11 an election held for that purpose.
466-12 (b) The governing body of the municipality shall hold the
466-13 election in the manner required by law for an election to authorize
466-14 the issuance of tax-supported bonds. (V.A.C.S. Art. 1118p, Sec.
466-15 3.)
466-16 Sec. 1502.458. ORDER OF REGISTRATION BY COMPTROLLER. (a)
466-17 The comptroller may register that part of the bonds issued under
466-18 this subchapter equal in principal amount to the outstanding bonds,
466-19 notes, warrants, and other obligations that are being refunded only
466-20 on surrender and cancellation of those obligations.
466-21 (b) After all bonds, notes, warrants, and other obligations
466-22 that are being refunded have been surrendered and canceled, and an
466-23 equal amount of new bonds have been registered and delivered in
466-24 exchange for those obligations, the comptroller shall register the
466-25 remaining new bonds and deliver those bonds to the municipality's
466-26 mayor or in accordance with the mayor's order.
466-27 (c) After registration and delivery, the municipality's
467-1 governing body may sell the bonds and use the proceeds for the
467-2 purposes authorized by Section 1502.452(2). (V.A.C.S. Art. 1118p,
467-3 Sec. 4 (part).)
467-4 (Sections 1502.459-1502.500 reserved for expansion)
467-5 SUBCHAPTER K. MISCELLANEOUS ADDITIONAL PARITY BONDS
467-6 Sec. 1502.501. ADDITIONAL BONDS TO EXTEND AND IMPROVE
467-7 ELECTRIC AND GAS UTILITY SYSTEMS. (a) This section applies only
467-8 to a municipality that has outstanding revenue bonds issued under
467-9 Subchapter B or similar law:
467-10 (1) to acquire the municipality's electric and gas
467-11 systems; or
467-12 (2) to refund bonds issued for that purpose.
467-13 (b) In the manner and to the extent authorized by the
467-14 ordinance or trust indenture authorizing the outstanding bonds, a
467-15 municipality, to extend and improve its electric and gas systems,
467-16 may issue additional bonds that are:
467-17 (1) payable from the net revenue of its electric and
467-18 gas systems; and
467-19 (2) on a parity with the outstanding bonds.
467-20 (c) The municipality must publish notice of intent to issue
467-21 bonds under this section in the manner provided by Section
467-22 1253.022, except that the notice must describe by name and amount
467-23 outstanding any bond or other debt payable from the net revenue of
467-24 the electric and gas systems.
467-25 (d) Notice not complying with Subsection (c) has no effect,
467-26 and another notice as required by that subsection must be given
467-27 before the bonds are authorized.
468-1 (e) The governing body of the municipality is not required
468-2 to hold an election on issuance of the bonds unless a petition is
468-3 filed in accordance with Section 1253.023. The governing body
468-4 shall hold an election in accordance with Section 1253.023 if a
468-5 petition is filed. The municipality may submit the question
468-6 whether the bonds shall be issued:
468-7 (1) in a single proposition; and
468-8 (2) without designating the amount of bond proceeds to
468-9 be spent on each system.
468-10 (f) To the extent of a conflict between this section and
468-11 another law or a municipal charter, this section controls.
468-12 (V.A.C.S. Art. 1118t, Secs. 1, 2.)
468-13 Sec. 1502.502. ADDITIONAL BONDS PAYABLE FROM WATER AND SEWER
468-14 SYSTEM AND SWIMMING POOL REVENUE. A municipality that has
468-15 outstanding bonds payable from and secured by a pledge of revenue
468-16 of its waterworks system, sewer system, and swimming pool may issue
468-17 additional parity bonds payable from and secured by a pledge of the
468-18 waterworks and sewer system revenue and, at the municipality's
468-19 option, additionally secured by a pledge of the swimming pool
468-20 revenue if the municipality:
468-21 (1) retained in the instrument authorizing the
468-22 outstanding bonds the right to issue additional parity bonds
468-23 payable from and secured by a pledge of the same revenue; and
468-24 (2) holds an election that favors the issuance of the
468-25 additional bonds. (V.A.C.S. Art. 1118u, Secs. 1, 2 (part).)
468-26 CHAPTER 1503. OBLIGATIONS FOR MUNICIPAL AIRPORTS
468-27 SUBCHAPTER A. REVENUE BONDS FOR AIRPORTS
469-1 Sec. 1503.001. AUTHORITY TO ISSUE REVENUE BONDS
469-2 Sec. 1503.002. BONDS PAYABLE FROM REVENUE
469-3 Sec. 1503.003. PLEDGE OF TAX FOR OPERATION AND MAINTENANCE
469-4 EXPENSES; PROCEEDS
469-5 Sec. 1503.004. CONTENTS OF ORDINANCE AUTHORIZING BONDS
469-6 Sec. 1503.005. ADOPTION AND EXECUTION OF DOCUMENTS
469-7 Sec. 1503.006. MATURITY
469-8 Sec. 1503.007. SIGNATURES
469-9 Sec. 1503.008. SALE OF BONDS
469-10 Sec. 1503.009. INVESTMENT OF BOND PROCEEDS AND FUNDS
469-11 Sec. 1503.010. REFUNDING BONDS
469-12 Sec. 1503.011. APPLICABILITY OF OTHER LAW
469-13 (Sections 1503.012-1503.050 reserved for expansion)
469-14 SUBCHAPTER B. BONDS AND WARRANTS FOR AIRPORTS IN
469-15 MUNICIPALITIES WITH POPULATION OF MORE THAN 40,000
469-16 Sec. 1503.051. APPLICABILITY OF SUBCHAPTER
469-17 Sec. 1503.052. DEFINITION
469-18 Sec. 1503.053. AUTHORITY TO ISSUE BONDS AND WARRANTS
469-19 Sec. 1503.054. PLEDGE OF REVENUE
469-20 Sec. 1503.055. MATURITY
469-21 Sec. 1503.056. LIMIT ON AMOUNT OF WARRANTS
469-22 Sec. 1503.057. SALE OF WARRANTS
469-23 Sec. 1503.058. ACTION TO COLLECT WARRANTS; EVIDENCE
469-24 Sec. 1503.059. AUTHORITY TO IMPOSE TAX
469-25 Sec. 1503.060. CHARGES FOR SERVICE OR FACILITY
469-26 Sec. 1503.061. CONFLICT WITH OTHER LAW OR MUNICIPAL
469-27 CHARTER
470-1 (Sections 1503.062-1503.100 reserved for expansion)
470-2 SUBCHAPTER C. REVENUE BONDS FOR AIRPORTS IN MUNICIPALITIES
470-3 WITH POPULATION OF MORE THAN 70,000
470-4 Sec. 1503.101. APPLICABILITY OF SUBCHAPTER
470-5 Sec. 1503.102. AUTHORITY TO ISSUE REVENUE BONDS
470-6 Sec. 1503.103. PLEDGE OF REVENUE
470-7 Sec. 1503.104. LIEN ON AIRPORT
470-8 Sec. 1503.105. BONDS NOT PAYABLE FROM TAXES
470-9 Sec. 1503.106. MATURITY
470-10 Sec. 1503.107. CHARGES FOR SERVICES; RESERVES
470-11 Sec. 1503.108. REFUNDING BONDS
470-12 Sec. 1503.109. PLEDGE AND USE OF PROCEEDS OF TAX BY
470-13 MUNICIPALITIES WITH POPULATION OF 125,000
470-14 OR MORE
470-15 Sec. 1503.110. PLEDGE AND USE OF PROCEEDS OF TAX BY
470-16 MUNICIPALITIES WITH POPULATION OF 200,000
470-17 OR MORE
470-18 (Sections 1503.111-1503.150 reserved for expansion)
470-19 SUBCHAPTER D. ENCUMBRANCE OF AIRPORTS
470-20 IN MUNICIPALITIES WITH POPULATION OF MORE THAN 160,000
470-21 Sec. 1503.151. APPLICABILITY OF SUBCHAPTER
470-22 Sec. 1503.152. PLEDGE OF INCOME
470-23 Sec. 1503.153. ENCUMBRANCE OF AIRPORT
470-24 Sec. 1503.154. GRANT OF FRANCHISE
470-25 Sec. 1503.155. OBLIGATION NOT DEBT
470-26 Sec. 1503.156. AUTHORITY TO ISSUE NOTES AND WARRANTS WITHOUT
470-27 ELECTION
471-1 (Sections 1503.157-1503.200 reserved for expansion)
471-2 SUBCHAPTER E. ADDITIONAL POWERS OF MUNICIPALITIES WITH
471-3 POPULATION OF 1.2 MILLION OR MORE
471-4 Sec. 1503.201. APPLICABILITY OF SUBCHAPTER
471-5 Sec. 1503.202. COMPETITIVE BIDS AND PAYMENT OR PERFORMANCE
471-6 BONDS NOT REQUIRED
471-7 Sec. 1503.203. PAYMENT OF PREVAILING WAGE RATES
471-8 CHAPTER 1503. OBLIGATIONS FOR MUNICIPAL AIRPORTS
471-9 SUBCHAPTER A. REVENUE BONDS FOR AIRPORTS
471-10 Sec. 1503.001. AUTHORITY TO ISSUE REVENUE BONDS. (a) A
471-11 municipality by ordinance may issue revenue bonds to:
471-12 (1) establish, improve, enlarge, extend, or repair:
471-13 (A) an airport of the municipality; or
471-14 (B) a building, improvement, landing field, or
471-15 other facility or service the municipality considers necessary,
471-16 desirable, or convenient for the efficient operation and
471-17 maintenance of an airport; or
471-18 (2) acquire land for an airport.
471-19 (b) The municipality shall issue the bonds in the manner
471-20 provided by Subchapter C. (V.A.C.S. Art. 1269j-5.1, Sec. 2(a)
471-21 (part).)
471-22 Sec. 1503.002. BONDS PAYABLE FROM REVENUE. Bonds issued
471-23 under this subchapter must be payable from all or a designated part
471-24 of the revenue from the airport for which the bonds are issued, as
471-25 provided in the ordinance authorizing the bonds. (V.A.C.S.
471-26 Art. 1269j-5.1, Sec. 2(a) (part).)
471-27 Sec. 1503.003. PLEDGE OF TAX FOR OPERATION AND MAINTENANCE
472-1 EXPENSES; PROCEEDS. (a) In addition to or instead of the pledge
472-2 of revenue and income of the airport authorized by Subchapter C, a
472-3 municipality may impose and pledge to the payment of the operation
472-4 and maintenance expenses of the airport a continuing annual ad
472-5 valorem tax at a rate sufficient for that purpose, as provided in
472-6 the ordinance authorizing the issuance of bonds under this
472-7 subchapter.
472-8 (b) A tax under this section:
472-9 (1) must be imposed at a rate within any limit
472-10 contained in the municipal charter; and
472-11 (2) may not be used for the payment of the principal
472-12 of or interest on the bonds.
472-13 (c) The proceeds of a tax pledged under this section shall
472-14 be used annually, to the extent required by or provided in the
472-15 ordinance authorizing the bonds, for the operation and maintenance
472-16 of the airport. (V.A.C.S. Art. 1269j-5.1, Sec. 2(a) (part).)
472-17 Sec. 1503.004. CONTENTS OF ORDINANCE AUTHORIZING BONDS. (a)
472-18 The ordinance authorizing the issuance of bonds under this
472-19 subchapter may:
472-20 (1) provide for the flow of funds and the
472-21 establishment and maintenance of an interest and sinking fund,
472-22 reserve fund, or other fund;
472-23 (2) make additional covenants relating to the bonds
472-24 and pledged revenue and the operation and maintenance of the
472-25 improvement or facility the revenue of which is pledged, including
472-26 providing for the operation or lease of all or part of the
472-27 improvement or facility and the use or pledge of money derived from
473-1 operation contracts and leases; or
473-2 (3) provide that the municipality will pay all or
473-3 certain costs of operating and maintaining the airport from the
473-4 proceeds of a tax imposed under Section 1503.003.
473-5 (b) The ordinance may:
473-6 (1) prohibit the further issuance of additional bonds
473-7 or other obligations payable from the pledged revenue; or
473-8 (2) reserve the right to issue additional bonds
473-9 secured by a pledge of and payable from the revenue on a parity
473-10 with, or subordinate to, the lien and pledge in support of the
473-11 bonds being issued, subject to any condition provided by the
473-12 ordinance.
473-13 (c) The ordinance may contain other provisions and
473-14 covenants. (V.A.C.S. Art. 1269j-5.1, Secs. 2(a) (part), (b)
473-15 (part).)
473-16 Sec. 1503.005. ADOPTION AND EXECUTION OF DOCUMENTS. A
473-17 municipality may adopt or have executed any other proceeding or
473-18 instrument necessary or convenient for the issuance of bonds under
473-19 this subchapter. (V.A.C.S. Art. 1269j-5.1, Sec. 2(b) (part).)
473-20 Sec. 1503.006. MATURITY. A bond issued under this
473-21 subchapter must mature not later than 40 years after its date.
473-22 (V.A.C.S. Art. 1269j-5.1, Secs. 2(d) (part), (e) (part).)
473-23 Sec. 1503.007. SIGNATURES. A bond issued under this
473-24 subchapter must be signed by the mayor of the municipality and
473-25 countersigned by the secretary or clerk of the municipality.
473-26 (V.A.C.S. Art. 1269j-5.1, Secs. 2(d) (part), (e) (part).)
473-27 Sec. 1503.008. SALE OF BONDS. A municipality may sell bonds
474-1 issued under this subchapter under the terms determined by the
474-2 governing body of the municipality to be the most advantageous and
474-3 reasonably obtainable. (V.A.C.S. Art. 1269j-5.1, Sec. 2(d)
474-4 (part).)
474-5 Sec. 1503.009. INVESTMENT OF BOND PROCEEDS AND FUNDS. (a)
474-6 The bond proceeds, until they are needed for the purpose for which
474-7 the bonds were issued, may be invested in direct obligations of the
474-8 United States, placed on time deposit, or both.
474-9 (b) Money in an interest and sinking fund, reserve fund, or
474-10 any other fund established or provided for in the ordinance
474-11 authorizing the bonds may be invested in the manner and in the
474-12 securities as provided in that ordinance. (Art. 1269j-5.1, Sec.
474-13 2(c) (part).)
474-14 Sec. 1503.010. REFUNDING BONDS. (a) A municipality by
474-15 ordinance may issue revenue refunding bonds to refund original
474-16 bonds or refunding bonds issued under this subchapter or Subchapter
474-17 C.
474-18 (b) The comptroller shall register the refunding bonds on
474-19 the surrender and cancellation of the bonds to be refunded.
474-20 (c) In lieu of issuing bonds to be registered on the
474-21 surrender and cancellation of the bonds to be refunded, the
474-22 municipality, in the ordinance authorizing the issuance of the
474-23 refunding bonds, may provide for the sale of the refunding bonds
474-24 and the deposit of the proceeds at a place at which the bonds to be
474-25 refunded are payable. In that case, the refunding bonds may be
474-26 issued in an amount sufficient to pay the interest on the bonds to
474-27 be refunded to their maturity date or option date, and the
475-1 comptroller shall register the refunding bonds without the
475-2 surrender and cancellation of the bonds to be refunded. (V.A.C.S.
475-3 Art. 1269j-5.1, Sec. 2(e) (part).)
475-4 Sec. 1503.011. APPLICABILITY OF OTHER LAW. Except to the
475-5 extent of a conflict with this subchapter, Subchapter C applies to
475-6 bonds issued under this subchapter. (V.A.C.S. Art. 1269j-5.1, Sec.
475-7 2(a) (part).)
475-8 (Sections 1503.012-1503.050 reserved for expansion)
475-9 SUBCHAPTER B. BONDS AND WARRANTS FOR AIRPORTS IN MUNICIPALITIES
475-10 WITH POPULATION OF MORE THAN 40,000
475-11 Sec. 1503.051. APPLICABILITY OF SUBCHAPTER. This subchapter
475-12 applies only to a municipality with a population of more than
475-13 40,000. (V.A.C.S. Art. 1269j, Sec. 1 (part).)
475-14 Sec. 1503.052. DEFINITION. In this subchapter, "airport"
475-15 includes all land and any building or other improvement necessary
475-16 or convenient to establish or operate an airport, including land or
475-17 an improvement necessary to:
475-18 (1) assemble or manufacture aircraft for military use
475-19 or another governmental purpose; or
475-20 (2) provide housing or office space for employees
475-21 necessary or incidental to such purposes. (V.A.C.S. Art. 1269j,
475-22 Sec. 1 (part).)
475-23 Sec. 1503.053. AUTHORITY TO ISSUE BONDS AND WARRANTS. (a)
475-24 A municipality may borrow money and may issue bonds and warrants to
475-25 finance all or part of the cost of acquiring, constructing,
475-26 improving, enlarging, extending, or repairing an airport.
475-27 (b) Warrants may be authorized under this subchapter by
476-1 ordinance. A majority of all of the members of the governing body
476-2 of the municipality, at the meeting at which the ordinance is
476-3 introduced, may adopt the ordinance. The ordinance takes effect
476-4 immediately.
476-5 (c) A municipality that issues warrants under this
476-6 subchapter must comply with the provisions of Chapter 252, Local
476-7 Government Code, relating to bidders, notice of intention to issue
476-8 the warrants, and the right to a referendum. Except as provided by
476-9 that chapter, an election is not necessary to authorize the
476-10 issuance of warrants under this subchapter. (V.A.C.S. Art. 1269j,
476-11 Secs. 1 (part), 2 (part), 4.)
476-12 Sec. 1503.054. PLEDGE OF REVENUE. In addition to taxes, a
476-13 municipality may pledge to the timely payment of the principal of
476-14 and interest on warrants issued under this subchapter all or part
476-15 of the receipts derived from the operation of the airport,
476-16 including income, rent, revenue, and tolls. (V.A.C.S. Art. 1269j,
476-17 Sec. 1 (part).)
476-18 Sec. 1503.055. MATURITY. Warrants issued under this
476-19 subchapter must mature annually in such amounts so that the
476-20 aggregate amount of principal and interest due in each year is
476-21 substantially equal over a period not to exceed 30 years after
476-22 their date. (V.A.C.S. Art. 1269j, Sec. 2 (part).)
476-23 Sec. 1503.056. LIMIT ON AMOUNT OF WARRANTS. A municipality
476-24 may not issue warrants under this subchapter in an aggregate amount
476-25 in excess of $125,000. (V.A.C.S. Art. 1269j, Sec. 3.)
476-26 Sec. 1503.057. SALE OF WARRANTS. A municipality may sell
476-27 warrants issued under this subchapter at a public or private sale.
477-1 (V.A.C.S. Art. 1269j, Sec. 2 (part).)
477-2 Sec. 1503.058. ACTION TO COLLECT WARRANTS; EVIDENCE. In any
477-3 action brought to enforce the collection of warrants issued under
477-4 this subchapter that have been approved by the attorney general and
477-5 registered by the comptroller, the certificate of the attorney
477-6 general or a certified copy of the certificate shall be admitted as
477-7 evidence of the validity of the warrants and the coupons attached
477-8 to the warrants. (V.A.C.S. Art. 1269j, Sec. 9 (part).)
477-9 Sec. 1503.059. AUTHORITY TO IMPOSE TAX. (a) A municipality
477-10 that issues warrants under this subchapter shall annually impose a
477-11 tax in an amount sufficient to pay when due the principal of and
477-12 interest on the warrants. The tax shall be imposed and paid in the
477-13 same manner as other taxes of the municipality.
477-14 (b) If the warrants are additionally secured by a pledge of
477-15 the receipts derived from the operation of the airport for which
477-16 the warrants are issued, the municipality may reduce the tax
477-17 imposed under this section by the amount of money available that is
477-18 pledged to the payment of the principal of and interest on the
477-19 warrants. (V.A.C.S. Art. 1269j, Secs. 1 (part), 5.)
477-20 Sec. 1503.060. CHARGES FOR SERVICE OR FACILITY. (a) The
477-21 governing body of a municipality that issues warrants under this
477-22 subchapter shall prescribe by ordinance and collect a reasonable
477-23 rate, rent, or other charge for the service or facility furnished
477-24 by the airport for which the warrants are issued.
477-25 (b) The charges under Subsection (a) must be in an amount
477-26 that will produce revenue sufficient to:
477-27 (1) pay when due the principal of and interest on all
478-1 warrants for which the revenue has been pledged, including
478-2 reserves; and
478-3 (2) provide for all expenses of operation and
478-4 maintenance of the airport for which the warrants were issued,
478-5 including reserves. (V.A.C.S. Art. 1269j, Secs. 1 (part), 6.)
478-6 Sec. 1503.061. CONFLICT WITH OTHER LAW OR MUNICIPAL CHARTER.
478-7 To the extent of a conflict between this subchapter and another law
478-8 or a municipal charter, this subchapter controls. (V.A.C.S.
478-9 Art. 1269j, Sec. 10 (part).)
478-10 (Sections 1503.062-1503.100 reserved for expansion)
478-11 SUBCHAPTER C. REVENUE BONDS FOR AIRPORTS IN MUNICIPALITIES WITH
478-12 POPULATION OF MORE THAN 70,000
478-13 Sec. 1503.101. APPLICABILITY OF SUBCHAPTER. This subchapter
478-14 applies only to a municipality with a population of more than
478-15 70,000. (V.A.C.S. Art. 1269j-5, Sec. 1 (part).)
478-16 Sec. 1503.102. AUTHORITY TO ISSUE REVENUE BONDS. (a) In
478-17 this section, "improvement" includes the construction or
478-18 enlargement of a hangar or a related building for use by a tenant
478-19 or concessionaire of an airport, including a person, firm, or
478-20 corporation who furnishes repairs or other services to air
478-21 carriers.
478-22 (b) The governing body of a municipality by ordinance may
478-23 issue revenue bonds for improving, enlarging, extending, or
478-24 repairing its airport. (V.A.C.S. Art. 1269j-5, Sec. 1 (part).)
478-25 Sec. 1503.103. PLEDGE OF REVENUE. (a) Bonds issued under
478-26 this subchapter must be secured by a pledge of all or a designated
478-27 part of the revenue from the operation of the airport for which the
479-1 bonds are issued, including rents for any hangar or building, as
479-2 prescribed in the ordinance authorizing the bonds.
479-3 (b) To the extent that the revenue from the airport is
479-4 pledged for the payment of outstanding revenue bonds, the pledge
479-5 securing the bonds is inferior to the previous pledge. (V.A.C.S.
479-6 Art. 1269j-5, Sec. 1 (part).)
479-7 Sec. 1503.104. LIEN ON AIRPORT. Subject to a limitation
479-8 contained in a previous pledge, if any, and in addition to the
479-9 pledge of revenue under Section 1503.103, the governing body of the
479-10 municipality may give a lien on all or part of the physical
479-11 property of the airport. (V.A.C.S. Art. 1269j-5, Sec. 1 (part).)
479-12 Sec. 1503.105. BONDS NOT PAYABLE FROM TAXES. A municipality
479-13 may not use proceeds of a tax to pay the principal of or interest
479-14 on:
479-15 (1) bonds issued under this subchapter; or
479-16 (2) bonds issued to refund bonds issued under this
479-17 subchapter. (V.A.C.S. Art. 1269j-5, Sec. 2 (part).)
479-18 Sec. 1503.106. MATURITY. A bond issued under this
479-19 subchapter must mature not later than 30 years after its date.
479-20 (V.A.C.S. Art. 1269j-5, Sec. 3 (part).)
479-21 Sec. 1503.107. CHARGES FOR SERVICES; RESERVES. If the
479-22 governing body of a municipality pledges the revenue of a property
479-23 or facility of an airport to the payment of bonds issued under this
479-24 subchapter, the governing body shall impose and collect a charge
479-25 for services rendered in connection with the use of the property or
479-26 facility in an amount at least sufficient to:
479-27 (1) provide for the maintenance and operation expenses
480-1 of the property or facility;
480-2 (2) pay the principal of and interest on the bonds as
480-3 required by the ordinance authorizing the bonds; and
480-4 (3) provide any reserve fund required by the ordinance
480-5 authorizing the bonds. (V.A.C.S. Art. 1269j-5, Sec. 2 (part).)
480-6 Sec. 1503.108. REFUNDING BONDS. A municipality may issue
480-7 refunding bonds to be exchanged for or to provide money to redeem
480-8 bonds issued under this subchapter. (V.A.C.S. Art. 1269j-5, Sec. 4
480-9 (part).)
480-10 Sec. 1503.109. PLEDGE AND USE OF PROCEEDS OF TAX BY
480-11 MUNICIPALITIES WITH POPULATION OF 125,000 OR MORE. (a) This
480-12 section applies only to a home-rule municipality that:
480-13 (1) has a population of 125,000 or more; and
480-14 (2) operates for airport purposes real property that
480-15 is owned, leased, or controlled by the municipality.
480-16 (b) A municipality that issues bonds under this subchapter
480-17 or that issues bonds to refund bonds issued under this subchapter
480-18 may impose and pledge to the payment of the operation and
480-19 maintenance expenses of the airport all or part of the proceeds of
480-20 an ad valorem tax authorized by Section 22.051, Transportation
480-21 Code, to supplement the pledge of revenue for payment of the
480-22 operation and maintenance expenses and principal of and interest on
480-23 the bonds.
480-24 (c) A municipality shall use annually the proceeds of a tax
480-25 pledged under Subsection (b) to the extent required by the
480-26 ordinance authorizing the issuance of the bonds to assure the
480-27 efficient operation and maintenance of the airport.
481-1 (d) In the proceedings authorizing the issuance of bonds, a
481-2 municipality may covenant that the municipality will pay certain
481-3 costs of operating and maintaining the airport for which the bonds
481-4 were issued, as specified in the proceedings, from the proceeds of
481-5 the tax prescribed by Subsection (b). (V.A.C.S. Art. 1269j-5.2.)
481-6 Sec. 1503.110. PLEDGE AND USE OF PROCEEDS OF TAX BY
481-7 MUNICIPALITIES WITH POPULATION OF 200,000 OR MORE. (a) This
481-8 section applies only to a home-rule municipality that:
481-9 (1) has a population of 200,000 or more; and
481-10 (2) owns real property acquired for airport purposes
481-11 that is leased, wholly or partly, to an airport operating company
481-12 or corporation.
481-13 (b) A municipality that issues bonds under this subchapter
481-14 to acquire improvements constructed by an airport operating company
481-15 or corporation or to further improve its airport, or that issues
481-16 bonds to refund bonds issued under this subchapter for those
481-17 purposes, may impose and pledge to the payment of the operation and
481-18 maintenance expenses of the airport all or part of the proceeds of
481-19 an ad valorem tax authorized by Section 22.051, Transportation
481-20 Code, in the manner provided by Section 1503.109. (V.A.C.S.
481-21 Art. 1269h-2, Secs. 1, 2 (part).)
481-22 (Sections 1503.111-1503.150 reserved for expansion)
481-23 SUBCHAPTER D. ENCUMBRANCE OF AIRPORTS
481-24 IN MUNICIPALITIES WITH POPULATION OF MORE THAN 160,000
481-25 Sec. 1503.151. APPLICABILITY OF SUBCHAPTER. This subchapter
481-26 applies only to a municipality with a population of more than
481-27 160,000. (V.A.C.S. Art. 1269i, Secs. 1 (part), 2 (part).)
482-1 Sec. 1503.152. PLEDGE OF INCOME. A municipality may pledge
482-2 the income from its airport and anything the municipality acquires
482-3 relating to the airport to secure the payment of money to:
482-4 (1) purchase the airport; or
482-5 (2) construct, improve, enlarge, extend, or repair a
482-6 permanent improvement, including a building, repair shop, or other
482-7 structure. (V.A.C.S. Art. 1269i, Sec. 2 (part).)
482-8 Sec. 1503.153. ENCUMBRANCE OF AIRPORT. A municipality may
482-9 encumber its airport and anything the municipality acquires
482-10 relating to the airport to secure the payment of money to:
482-11 (1) purchase the airport; or
482-12 (2) construct, improve, enlarge, extend, or repair a
482-13 permanent improvement, including a building, repair shop, or other
482-14 structure. (V.A.C.S. Art. 1269i, Sec. 1 (part).)
482-15 Sec. 1503.154. GRANT OF FRANCHISE. As additional security
482-16 for the encumbrance, a municipality that encumbers an airport under
482-17 Section 1503.153 may provide in the encumbrance for a grant, to the
482-18 purchaser under sale or foreclosure, of a franchise to operate the
482-19 airport and the improvements situated on the airport for a term not
482-20 to exceed 30 years from the date of the purchase. (V.A.C.S.
482-21 Art. 1269i, Secs. 1 (part), 2 (part).)
482-22 Sec. 1503.155. OBLIGATION NOT DEBT. An obligation described
482-23 by Section 1503.152 or 1503.153:
482-24 (1) may be a charge only on the property encumbered;
482-25 (2) is not a debt of the municipality; and
482-26 (3) may not be included in determining the power of
482-27 the municipality to issue bonds for any purpose authorized by law.
483-1 (V.A.C.S. Art. 1269i, Secs. 1 (part), 2 (part).)
483-2 Sec. 1503.156. AUTHORITY TO ISSUE NOTES AND WARRANTS WITHOUT
483-3 ELECTION. (a) A municipality may issue notes or warrants in an
483-4 amount not to exceed $100,000 for the purposes described by this
483-5 subchapter without an election.
483-6 (b) To the extent of a conflict between this section and a
483-7 municipal charter, this section controls. (V.A.C.S. Art. 1269i,
483-8 Sec. 3.)
483-9 (Sections 1503.157-1503.200 reserved for expansion)
483-10 SUBCHAPTER E. ADDITIONAL POWERS OF MUNICIPALITIES WITH
483-11 POPULATION OF 1.2 MILLION OR MORE
483-12 Sec. 1503.201. APPLICABILITY OF SUBCHAPTER. This subchapter
483-13 applies only to a municipality with a population of 1.2 million or
483-14 more. (V.A.C.S. Art. 1269j-5.3, Sec. 1.)
483-15 Sec. 1503.202. COMPETITIVE BIDS AND PAYMENT OR PERFORMANCE
483-16 BONDS NOT REQUIRED. (a) A municipality that issues revenue bonds
483-17 to finance the construction or acquisition of a building,
483-18 improvement, or facility at an airport owned and operated by the
483-19 municipality may spend all or part of the bond proceeds without
483-20 inviting, advertising for, or otherwise requiring competitive bids
483-21 for constructing or acquiring the building, improvement, or
483-22 facility or requiring or obtaining payment bonds or performance
483-23 bonds in connection with the construction or acquisition of the
483-24 building, improvement, or facility if:
483-25 (1) the building, improvement, or facility is leased
483-26 by the municipality to a private entity under a lease agreement
483-27 under which the lessee is:
484-1 (A) obligated to maintain the building,
484-2 improvement, or facility solely at the lessee's expense; and
484-3 (B) unconditionally obligated, for the term of
484-4 the bonds, to make payments of net rent that are pledged to the
484-5 payment of the bonds in an amount and at a time that is sufficient
484-6 to provide for the timely payment of principal, interest,
484-7 redemption premiums, and other expenses arising in connection with
484-8 the payment of the bonds; and
484-9 (2) the bonds:
484-10 (A) provide by their terms that the bonds:
484-11 (i) are payable solely from net rent as
484-12 prescribed by Subsection (a)(1)(B); and
484-13 (ii) may not be repaid under any
484-14 circumstances from proceeds of a tax; and
484-15 (B) do not create or provide for the creation of
484-16 a lien on real property owned by the municipality.
484-17 (b) This subchapter does not affect the obligation of a
484-18 municipality to obtain competitive bids or require a payment bond
484-19 or performance bond in connection with a contract for the
484-20 construction of a building, improvement, or facility if the
484-21 contract is awarded by the municipality. (V.A.C.S. Art. 1269j-5.3,
484-22 Secs. 2(a), (b), (c), (d).)
484-23 Sec. 1503.203. PAYMENT OF PREVAILING WAGE RATES. An
484-24 expenditure of or agreement to spend bond proceeds covered by this
484-25 subchapter for the construction of a building, improvement, or
484-26 facility must be conditioned on the payment of not less than the
484-27 rate of per diem wages for work of a similar character in the
485-1 municipality as determined by the governing body of the
485-2 municipality under Chapter 2258. (V.A.C.S. Art. 1269j-5.3, Sec.
485-3 2(e).)
485-4 CHAPTER 1504. OBLIGATIONS FOR MUNICIPAL BUILDINGS
485-5 SUBCHAPTER A. REVENUE BONDS FOR CULTURAL OR ATHLETIC FACILITIES
485-6 Sec. 1504.001. AUTHORITY FOR CULTURAL OR ATHLETIC
485-7 FACILITIES
485-8 Sec. 1504.002. AUTHORITY TO ISSUE REVENUE BONDS
485-9 Sec. 1504.003. PLEDGE OF REVENUE
485-10 Sec. 1504.004. LIEN ON FACILITY
485-11 Sec. 1504.005. BONDS NOT PAYABLE FROM TAXES; EXCEPTION
485-12 Sec. 1504.006. CONTENTS OF ORDINANCE AUTHORIZING BONDS
485-13 Sec. 1504.007. ADOPTION AND EXECUTION OF DOCUMENTS
485-14 Sec. 1504.008. MATURITY
485-15 Sec. 1504.009. SIGNATURES
485-16 Sec. 1504.010. SALE OF BONDS
485-17 Sec. 1504.011. INVESTMENT OF BOND PROCEEDS AND FUNDS
485-18 Sec. 1504.012. TERM OF CERTAIN LEASES
485-19 Sec. 1504.013. CHARGES FOR SERVICES
485-20 Sec. 1504.014. REFUNDING BONDS
485-21 Sec. 1504.015. CONFLICT WITH MUNICIPAL CHARTER
485-22 (Sections 1504.016-1504.050 reserved for expansion)
485-23 SUBCHAPTER B. REVENUE BONDS FOR BUILDINGS IN MUNICIPALITIES
485-24 WITH POPULATION OF MORE THAN 50,000
485-25 Sec. 1504.051. APPLICABILITY OF SUBCHAPTER
485-26 Sec. 1504.052. AUTHORITY FOR MUNICIPAL BUILDINGS
485-27 Sec. 1504.053. AUTHORITY TO ISSUE REVENUE BONDS
486-1 Sec. 1504.054. PLEDGE OF REVENUE
486-2 Sec. 1504.055. ELECTION
486-3 Sec. 1504.056. ELECTION PROPOSITION
486-4 Sec. 1504.057. CONTENTS OF ORDINANCE AUTHORIZING BONDS
486-5 Sec. 1504.058. MATURITY
486-6 Sec. 1504.059. ADDITIONAL BONDS
486-7 Sec. 1504.060. SEPARATE BOOKS AND ACCOUNTS REQUIRED
486-8 (Sections 1504.061-1504.100 reserved for expansion)
486-9 SUBCHAPTER C. OBLIGATIONS FOR AUDITORIUMS AND EXHIBITION
486-10 FACILITIES IN MUNICIPALITIES WITH POPULATION OF MORE
486-11 THAN 125,000
486-12 Sec. 1504.101. APPLICABILITY OF SUBCHAPTER
486-13 Sec. 1504.102. AUTHORITY FOR AUDITORIUMS AND EXHIBITION
486-14 FACILITIES
486-15 Sec. 1504.103. AUTHORITY TO ISSUE BONDS, NOTES, AND
486-16 WARRANTS
486-17 Sec. 1504.104. PLEDGE OF REVENUE
486-18 Sec. 1504.105. OBLIGATIONS NOT PAYABLE FROM TAXES
486-19 Sec. 1504.106. ELECTION
486-20 Sec. 1504.107. OPERATING EXPENSES AS FIRST LIEN
486-21 Sec. 1504.108. CHARGES FOR SERVICES
486-22 Sec. 1504.109. USE OF REVENUE FOR OTHER PURPOSES
486-23 PROHIBITED
486-24 Sec. 1504.110. RECORDS
486-25 Sec. 1504.111. ANNUAL REPORT
486-26 Sec. 1504.112. OFFENSE
486-27 Sec. 1504.113. CIVIL ENFORCEMENT
487-1 (Sections 1504.114-1504.150 reserved for expansion)
487-2 SUBCHAPTER D. REVENUE BONDS FOR AIR CONDITIONING EQUIPMENT
487-3 IN AUDITORIUMS OR THEATERS IN MUNICIPALITIES WITH POPULATION
487-4 OF 175,000 OR MORE
487-5 Sec. 1504.151. APPLICABILITY OF SUBCHAPTER
487-6 Sec. 1504.152. AUTHORITY TO ISSUE REVENUE BONDS
487-7 Sec. 1504.153. PLEDGE OF REVENUE
487-8 Sec. 1504.154. BONDS NOT PAYABLE FROM TAXES
487-9 Sec. 1504.155. ELECTION
487-10 Sec. 1504.156. MATURITY
487-11 Sec. 1504.157. SIGNATURES
487-12 Sec. 1504.158. ADDITIONAL BONDS
487-13 Sec. 1504.159. EXEMPTION FROM TAXATION
487-14 Sec. 1504.160. PERSONNEL; OPERATION AND MAINTENANCE
487-15 EXPENSES
487-16 Sec. 1504.161. CHARGES FOR SERVICES; RESERVES
487-17 (Sections 1504.162-1504.200 reserved for expansion)
487-18 SUBCHAPTER E. OBLIGATIONS FOR EXPOSITION AND CONVENTION
487-19 HALLS IN MUNICIPALITIES WITH POPULATION OF 290,000 OR MORE
487-20 Sec. 1504.201. APPLICABILITY OF SUBCHAPTER
487-21 Sec. 1504.202. AUTHORITY FOR EXPOSITION AND CONVENTION HALLS
487-22 Sec. 1504.203. AUTHORITY TO ISSUE BONDS, NOTES, AND
487-23 WARRANTS
487-24 Sec. 1504.204. PLEDGE OF INCOME
487-25 Sec. 1504.205. OBLIGATIONS NOT PAYABLE FROM TAXES
487-26 Sec. 1504.206. OPERATING EXPENSES AS FIRST LIEN
487-27 Sec. 1504.207. CHARGES FOR SERVICES
488-1 Sec. 1504.208. USE OF INCOME FOR OTHER PURPOSES
488-2 PROHIBITED
488-3 Sec. 1504.209. MANAGEMENT AND CONTROL
488-4 Sec. 1504.210. TRUSTEE
488-5 Sec. 1504.211. RECEIVER
488-6 Sec. 1504.212. NOTICE TO GOVERNING BODY BEFORE FORECLOSURE OR
488-7 OTHER ACTION
488-8 (Sections 1504.213-1504.250 reserved for expansion)
488-9 SUBCHAPTER F. REVENUE BONDS FOR CULTURAL FACILITIES IN HOME-RULE
488-10 MUNICIPALITIES WITH POPULATION OF 1.2 MILLION OR MORE
488-11 Sec. 1504.251. APPLICABILITY OF SUBCHAPTER
488-12 Sec. 1504.252. AUTHORITY FOR CULTURAL AND PARKING
488-13 FACILITIES
488-14 Sec. 1504.253. AUTHORITY TO ISSUE REVENUE BONDS
488-15 Sec. 1504.254. PLEDGE OF REVENUE
488-16 Sec. 1504.255. LIEN ON FACILITY
488-17 Sec. 1504.256. PLEDGE OF MIXED BEVERAGE TAX RECEIPTS
488-18 Sec. 1504.257. SHORTAGE OF MIXED BEVERAGE TAX RECEIPTS
488-19 Sec. 1504.258. ADDITIONAL USE OF MIXED BEVERAGE TAX
488-20 RECEIPTS
488-21 Sec. 1504.259. BONDS NOT PAYABLE FROM TAXES; EXCEPTION
488-22 Sec. 1504.260. CONTENTS OF ORDINANCE AUTHORIZING BONDS
488-23 Sec. 1504.261. ADOPTION AND EXECUTION OF DOCUMENTS
488-24 Sec. 1504.262. SIGNATURES
488-25 Sec. 1504.263. SALE OF BONDS
488-26 Sec. 1504.264. INTERIM RECEIPTS
488-27 Sec. 1504.265. USE OF BOND PROCEEDS
489-1 Sec. 1504.266. CHARGES FOR SERVICES
489-2 Sec. 1504.267. USE OF REVENUE
489-3 Sec. 1504.268. CONFLICT WITH MUNICIPAL CHARTER
489-4 CHAPTER 1504. OBLIGATIONS FOR MUNICIPAL BUILDINGS
489-5 SUBCHAPTER A. REVENUE BONDS FOR CULTURAL OR
489-6 ATHLETIC FACILITIES
489-7 Sec. 1504.001. AUTHORITY FOR CULTURAL OR ATHLETIC
489-8 FACILITIES. A municipality may establish, acquire, lease as lessee
489-9 or lessor, construct, improve, enlarge, equip, repair, operate, or
489-10 maintain a cultural or athletic facility, including:
489-11 (1) a civic center, auditorium, opera house, music
489-12 hall, exhibition hall, coliseum, museum, library, or other
489-13 municipal building;
489-14 (2) a golf course, tennis court, or other similar
489-15 recreational facility;
489-16 (3) a hotel owned by a municipality or a nonprofit
489-17 municipally sponsored local government corporation created under
489-18 Chapter 431, Transportation Code, that is located not more than
489-19 1,000 feet from a convention center owned by a municipality with a
489-20 population of 1,500,000 or more;
489-21 (4) a historic hotel owned by a municipality or a
489-22 nonprofit municipally sponsored local government corporation
489-23 created under Chapter 431, Transportation Code, that is located not
489-24 more than one mile from a convention center owned by a municipality
489-25 with a population of 1,500,000 or more; or
489-26 (5) a parking facility at or in the immediate vicinity
489-27 of a cultural or athletic facility described by Subdivisions
490-1 (1)-(4) for use in connection with that facility for off-street
490-2 parking or storage of motor vehicles or other conveyances.
490-3 (V.A.C.S. Art. 1269j-4.1, Sec. 2(a) (part).)
490-4 Sec. 1504.002. AUTHORITY TO ISSUE REVENUE BONDS. The
490-5 governing body of a municipality by ordinance may issue revenue
490-6 bonds to provide all or part of the money to establish, acquire,
490-7 construct, improve, enlarge, equip, or repair a facility described
490-8 by Section 1504.001. (V.A.C.S. Art. 1269j-4.1, Secs. 3(a), (b)
490-9 (part).)
490-10 Sec. 1504.003. PLEDGE OF REVENUE. (a) Bonds issued under
490-11 this subchapter must be secured by a pledge of and be payable from
490-12 all or a designated part of the revenue from the facility for which
490-13 the bonds are issued, as provided in the ordinance authorizing the
490-14 issuance of the bonds.
490-15 (b) The pledge securing the bonds is inferior to any
490-16 previous pledge of the revenue for the payment of revenue bonds or
490-17 revenue refunding bonds that are outstanding.
490-18 (c) A municipality that leases as lessee a facility
490-19 described by Section 1504.001 may pledge all or part of the revenue
490-20 from the facility to the lease payments the municipality must make.
490-21 (V.A.C.S. Art. 1269j-4.1, Secs. 3(b) (part), (d).)
490-22 Sec. 1504.004. LIEN ON FACILITY. Subject to any limitation
490-23 contained in any previous pledge, the governing body of the
490-24 municipality may, in addition to pledging the revenue from a
490-25 facility, give a lien on all or part of the physical property of
490-26 the facility acquired with the proceeds of bonds issued under this
490-27 subchapter. (V.A.C.S. Art. 1269j-4.1, Sec. 3(b) (part).)
491-1 Sec. 1504.005. BONDS NOT PAYABLE FROM TAXES; EXCEPTION. (a)
491-2 The owner or holder of a bond issued under this subchapter is not
491-3 entitled to demand payment of the principal of or interest on the
491-4 bond from money raised by taxation.
491-5 (b) Subsection (a) does not apply to a demand for payment
491-6 from hotel occupancy taxes that are pledged under Chapter 351, Tax
491-7 Code, to the payment of the bond. (V.A.C.S. Art. 1269j-4.1, Sec.
491-8 4.)
491-9 Sec. 1504.006. CONTENTS OF ORDINANCE AUTHORIZING BONDS. (a)
491-10 The ordinance authorizing the issuance of bonds under this
491-11 subchapter may provide for the flow of funds and the establishment
491-12 and maintenance of an interest and sinking fund, reserve fund, or
491-13 other fund.
491-14 (b) The ordinance may:
491-15 (1) prohibit the issuance of additional bonds or other
491-16 obligations payable from the pledged revenue; or
491-17 (2) reserve the right to issue additional bonds to be
491-18 secured by a pledge of and payable from the revenue on a parity
491-19 with, or subordinate to, the lien and pledge in support of the
491-20 bonds being issued, subject to the conditions prescribed by the
491-21 ordinance.
491-22 (c) The ordinance may contain any other provision or
491-23 covenant, including a covenant with respect to the bonds, the
491-24 pledged revenue, or the operation or maintenance of the facility
491-25 the revenue of which is pledged. The ordinance may provide for the
491-26 operation or lease of all or part of the facility and the use or
491-27 pledge of money derived from operation contracts and leases.
492-1 (V.A.C.S. Art. 1269j-4.1, Sec. 5 (part).)
492-2 Sec. 1504.007. ADOPTION AND EXECUTION OF DOCUMENTS. The
492-3 municipality may adopt and have executed any other proceeding or
492-4 instrument necessary or convenient to the issuance of bonds under
492-5 this subchapter. (V.A.C.S. Art. 1269j-4.1, Sec. 5 (part).)
492-6 Sec. 1504.008. MATURITY. A bond issued under this
492-7 subchapter must mature not later than 40 years after its date.
492-8 (V.A.C.S. Art. 1269j-4.1, Secs. 7 (part), 8 (part).)
492-9 Sec. 1504.009. SIGNATURES. A bond issued under this
492-10 subchapter must be signed by the mayor of the municipality and
492-11 countersigned by the secretary or clerk of the municipality.
492-12 (V.A.C.S. Art. 1269j-4.1, Sec. 7 (part).)
492-13 Sec. 1504.010. SALE OF BONDS. A municipality may sell bonds
492-14 issued under this subchapter under the terms the governing body of
492-15 the municipality determines to be the most advantageous and
492-16 reasonably obtainable. (V.A.C.S. Art. 1269j-4.1, Sec. 7 (part).)
492-17 Sec. 1504.011. INVESTMENT OF BOND PROCEEDS AND FUNDS.
492-18 (a) The bond proceeds, until they are needed to implement the
492-19 purpose for which the bonds were issued, may be invested in direct
492-20 obligations of the United States, placed on time deposit, or both.
492-21 (b) Money in an interest and sinking fund, reserve fund, or
492-22 any other fund established or provided for in the bond ordinance
492-23 may be invested in the manner and in the securities as provided in
492-24 the bond ordinance. (Art. 1269j-4.1, Sec. 6 (part).)
492-25 Sec. 1504.012. TERM OF CERTAIN LEASES. In a municipality
492-26 with a population of 1.5 million or more, a lease entered into
492-27 under Section 1504.001 may have a term not to exceed 60 years if:
493-1 (1) the lessee proposes to invest more than $20
493-2 million to renovate or redevelop an existing civic center building
493-3 and facilities that are used in connection with and are located at
493-4 or in the immediate vicinity of that building; and
493-5 (2) the governing body of the municipality finds that:
493-6 (A) the renovated or redeveloped building and
493-7 facilities will generate additional revenue for the municipality;
493-8 and
493-9 (B) a term that exceeds 30 years is necessary to
493-10 enable the lessee to recoup its investment or to obtain financing
493-11 for the project. (V.A.C.S. Art. 1269j-4.1, Sec. 2(b).)
493-12 Sec. 1504.013. CHARGES FOR SERVICES. The governing body of
493-13 the municipality shall impose and collect charges for the use of a
493-14 facility the revenue of which is pledged to secure bonds issued
493-15 under this subchapter, and for services provided in connection with
493-16 that use, in amounts at least sufficient to comply with each
493-17 covenant or provision in the ordinance authorizing the issuance of
493-18 the bonds. (V.A.C.S. Art. 1269j-4.1, Sec. 3(c).)
493-19 Sec. 1504.014. REFUNDING BONDS. (a) A municipality by
493-20 ordinance may issue revenue refunding bonds similarly secured to
493-21 refund either original bonds or revenue refunding bonds previously
493-22 issued by the municipality under this subchapter.
493-23 (b) The refunding bonds shall be executed as provided by
493-24 this subchapter for original bonds.
493-25 (c) The comptroller shall register the refunding bonds on
493-26 the surrender and cancellation of the bonds to be refunded.
493-27 (d) In lieu of issuing bonds to be registered on the
494-1 surrender and cancellation of the bonds to be refunded, the
494-2 municipality, in the ordinance authorizing the issuance of the
494-3 refunding bonds, may provide for the sale of the refunding bonds
494-4 and the deposit of the proceeds in the place the bonds to be
494-5 refunded are payable. In that case, the refunding bonds may be
494-6 issued in an amount sufficient to pay the principal of and interest
494-7 on the bonds to be refunded to their option or maturity date, and
494-8 the comptroller shall register the refunding bonds without the
494-9 surrender and cancellation of the bonds to be refunded. (V.A.C.S.
494-10 Art. 1269j-4.1, Sec. 8 (part).)
494-11 Sec. 1504.015. CONFLICT WITH MUNICIPAL CHARTER. To the
494-12 extent of a conflict between this subchapter and a municipal
494-13 charter, this subchapter controls. (V.A.C.S. Art. 1269j-4.1, Sec.
494-14 10 (part).)
494-15 (Sections 1504.016-1504.050 reserved for expansion)
494-16 SUBCHAPTER B. REVENUE BONDS FOR BUILDINGS IN
494-17 MUNICIPALITIES WITH POPULATION OF MORE THAN 50,000
494-18 Sec. 1504.051. APPLICABILITY OF SUBCHAPTER. This subchapter
494-19 applies only to a municipality with a population of more than
494-20 50,000 that owns and operates a natural gas distribution system
494-21 serving the residents of all or part of the municipality.
494-22 (V.A.C.S. Art. 1015h, Sec. 1 (part).)
494-23 Sec. 1504.052. AUTHORITY FOR MUNICIPAL BUILDINGS. A
494-24 municipality may purchase, construct, improve, equip, repair,
494-25 remodel, or enlarge:
494-26 (1) a coliseum, exposition and convention hall, city
494-27 hall, or other public building; or
495-1 (2) a necessary site for a building described by
495-2 Subdivision (1). (V.A.C.S. Art. 1015h, Sec. 1 (part).)
495-3 Sec. 1504.053. AUTHORITY TO ISSUE REVENUE BONDS. (a) The
495-4 governing body of a municipality by ordinance may issue revenue
495-5 bonds to purchase, construct, improve, equip, repair, remodel, or
495-6 enlarge:
495-7 (1) a building described by Section 1504.052; or
495-8 (2) a site for a building described by Section
495-9 1504.052.
495-10 (b) The governing body shall issue bonds under this
495-11 subchapter in compliance with Chapter 1502, except as provided by
495-12 this subchapter. (V.A.C.S. Art. 1015h, Secs. 1 (part), 2 (part).)
495-13 Sec. 1504.054. PLEDGE OF REVENUE. Bonds issued under this
495-14 subchapter may be secured by:
495-15 (1) a pledge of the net revenue from the building for
495-16 which the bonds are issued; and
495-17 (2) an additional pledge of all or part of the net
495-18 revenue from the municipality's gas distribution system. (V.A.C.S.
495-19 Art. 1015h, Sec. 2 (part).)
495-20 Sec. 1504.055. ELECTION. (a) A municipality may not issue
495-21 bonds under this subchapter unless the bonds are authorized by a
495-22 majority of the qualified voters voting at an election held for
495-23 that purpose.
495-24 (b) The governing body of the municipality shall hold an
495-25 election to issue bonds under this subchapter in the manner
495-26 provided for other bond elections in the municipality. (V.A.C.S.
495-27 Art. 1015h, Sec. 2 (part).)
496-1 Sec. 1504.056. ELECTION PROPOSITION. The governing body of
496-2 the municipality may submit the issuance of bonds to provide money
496-3 to acquire one or more buildings for one or more of the purposes
496-4 described by Section 1504.052 as one proposition at an election if
496-5 all the bonds included in the proposition are to be secured by a
496-6 pledge of the same revenue. (V.A.C.S. Art. 1015h, Sec. 2 (part).)
496-7 Sec. 1504.057. CONTENTS OF ORDINANCE AUTHORIZING BONDS. The
496-8 ordinance authorizing the issuance of bonds under this subchapter
496-9 may contain provisions regarding:
496-10 (1) the terms on which the revenue or a designated
496-11 part of the revenue is to be pledged;
496-12 (2) the method of securing the payment of the bonds;
496-13 (3) the use of the pledged revenue;
496-14 (4) the establishment of reserves for depreciation,
496-15 replacements, and improvements;
496-16 (5) the municipality's duties regarding the use,
496-17 maintenance, and operation of the facility the revenue of which is
496-18 pledged; and
496-19 (6) the use by the municipality of surplus revenue for
496-20 any other lawful purpose. (V.A.C.S. Art. 1015h, Secs. 3 (part), 4
496-21 (part).)
496-22 Sec. 1504.058. MATURITY. A bond issued under this
496-23 subchapter must mature not later than 30 years after its date.
496-24 (V.A.C.S. Art. 1015h, Sec. 2 (part).)
496-25 Sec. 1504.059. ADDITIONAL BONDS. (a) The governing body of
496-26 a municipality may issue additional bonds for a purpose authorized
496-27 under Section 1504.052. Additional bonds may be secured by a
497-1 pledge of all or part of the net revenue that is pledged to the
497-2 payment of outstanding bonds to the extent and in the manner
497-3 permitted by the ordinance authorizing the outstanding bonds.
497-4 (b) The governing body may issue additional bonds only after
497-5 issuance of the bonds is authorized at an election held as provided
497-6 for an original issue. (V.A.C.S. Art. 1015h, Sec. 4 (part).)
497-7 Sec. 1504.060. SEPARATE BOOKS AND ACCOUNTS REQUIRED. The
497-8 municipality shall maintain separate books and accounts for each
497-9 property the revenue of which is pledged for the payment of bonds
497-10 issued under this subchapter. (V.A.C.S. Art. 1015h, Sec. 3
497-11 (part).)
497-12 (Sections 1504.061-1504.100 reserved for expansion)
497-13 SUBCHAPTER C. OBLIGATIONS FOR AUDITORIUMS AND EXHIBITION
497-14 FACILITIES IN MUNICIPALITIES WITH POPULATION
497-15 OF MORE THAN 125,000
497-16 Sec. 1504.101. APPLICABILITY OF SUBCHAPTER. This subchapter
497-17 applies only to a municipality with a population of more than
497-18 125,000. (V.A.C.S. Art. 1269j-4, Sec. 1 (part).)
497-19 Sec. 1504.102. AUTHORITY FOR AUDITORIUMS AND EXHIBITION
497-20 FACILITIES. A municipality may:
497-21 (1) construct, purchase, or encumber a municipal
497-22 auditorium, exhibition hall, coliseum, or other building or
497-23 structure used for public gatherings;
497-24 (2) encumber anything acquired or to be acquired that
497-25 relates to a building or structure described by Subdivision (1);
497-26 (3) purchase additional real property and facilities
497-27 for a building or structure described by Subdivision (1);
498-1 (4) improve, enlarge, extend, or repair a building or
498-2 structure described by Subdivision (1); or
498-3 (5) purchase equipment and appliances necessary in the
498-4 operation of a building or structure described by Subdivision (1).
498-5 (V.A.C.S. Art. 1269j-4, Sec. 1 (part).)
498-6 Sec. 1504.103. AUTHORITY TO ISSUE BONDS, NOTES, AND
498-7 WARRANTS. A municipality may issue bonds, notes, or warrants to
498-8 provide the money to purchase, construct, improve, enlarge, extend,
498-9 repair, or equip a building or structure described by Section
498-10 1504.102. (V.A.C.S. Art. 1269j-4, Sec. 1 (part).)
498-11 Sec. 1504.104. PLEDGE OF REVENUE. A municipality may pledge
498-12 the revenue from a building or structure described by Section
498-13 1504.102 to the payment of an obligation issued under this
498-14 subchapter. (V.A.C.S. Art. 1269j-4, Sec. 1 (part).)
498-15 Sec. 1504.105. OBLIGATIONS NOT PAYABLE FROM TAXES. (a) An
498-16 obligation issued under this subchapter:
498-17 (1) is not a debt of the municipality;
498-18 (2) may be a charge only on the revenue pledged for
498-19 the payment of the obligation; and
498-20 (3) may not be included in determining the power of
498-21 the municipality to issue bonds for any purpose authorized by law.
498-22 (b) Each contract, bond, note, or other evidence of
498-23 indebtedness issued or included under this subchapter must contain
498-24 the following provision: "The holder of this obligation is not
498-25 entitled to demand payment of this obligation out of any money
498-26 raised by taxation." (V.A.C.S. Art. 1269j-4, Secs. 1 (part), 4
498-27 (part).)
499-1 Sec. 1504.106. ELECTION. (a) Unless authorized by a
499-2 majority vote of the qualified voters of the municipality, a
499-3 municipality may not:
499-4 (1) encumber a building or structure described by
499-5 Section 1504.102 for more than $5,000, except for purchase money or
499-6 to refund existing debt that was authorized by law; or
499-7 (2) sell a building or structure described by Section
499-8 1504.102.
499-9 (b) The governing body shall hold an election under this
499-10 section in the manner provided for other bond elections in the
499-11 municipality. (V.A.C.S. Art. 1269j-4, Sec. 2.)
499-12 Sec. 1504.107. OPERATING EXPENSES AS FIRST LIEN. (a) If
499-13 the revenue from a building or structure described by Section
499-14 1504.102 is encumbered under this subchapter, each expense of
499-15 operation and maintenance, including all salaries, labor,
499-16 materials, interest, repairs and additions necessary to provide
499-17 efficient service, and each proper item of expense, is a first lien
499-18 against that revenue.
499-19 (b) An expense for a repair or addition is a first lien only
499-20 if, in the judgment of the governing body of the municipality, the
499-21 repair or addition is necessary to:
499-22 (1) keep the building or structure in operation and
499-23 provide adequate service to the municipality and its residents; or
499-24 (2) respond to a physical accident or condition that
499-25 would otherwise impair the original security. (V.A.C.S.
499-26 Art. 1269j-4, Sec. 3 (part).)
499-27 Sec. 1504.108. CHARGES FOR SERVICES. (a) A municipality
500-1 shall impose and collect charges for the use of a building or
500-2 structure described by Section 1504.102 and for services provided
500-3 in connection with that use in amounts at least sufficient to pay:
500-4 (1) all operating, maintenance, depreciation,
500-5 replacement, improvement, and interest charges in connection with
500-6 the building or structure;
500-7 (2) for an interest and sinking fund sufficient to pay
500-8 any bonds issued to purchase, construct, or improve the building or
500-9 structure; and
500-10 (3) any outstanding debt against the building or
500-11 structure.
500-12 (b) The rates charged for the use of and for services
500-13 provided in connection with the use of a building or structure
500-14 described by Section 1504.102 must be equal and uniform. A
500-15 municipality may not allow any free use of or free service in
500-16 connection with the building or structure except for an activity or
500-17 institution operated by the municipality. (V.A.C.S. Art. 1269j-4,
500-18 Sec. 3 (part).)
500-19 Sec. 1504.109. USE OF REVENUE FOR OTHER PURPOSES PROHIBITED.
500-20 A municipality may not use the revenue from a building or structure
500-21 described by Section 1504.102 to pay any other debt, expense, or
500-22 obligation of the municipality until the debt secured by the
500-23 revenue is fully paid. (V.A.C.S. Art. 1269j-4, Sec. 3 (part).)
500-24 Sec. 1504.110. RECORDS. The chief executive officer of the
500-25 municipality shall establish and maintain a complete system of
500-26 records that:
500-27 (1) shows each free use of and free service provided
501-1 in connection with the use of a building or structure described by
501-2 Section 1504.102 and the value of the use or service; and
501-3 (2) shows separately the amounts spent and the amounts
501-4 set aside for operation, salaries, labor, materials, repairs,
501-5 maintenance, depreciation, replacements, additions, interest, and
501-6 the creation of a sinking fund to pay the bonds and debt.
501-7 (V.A.C.S. Art. 1269j-4, Sec. 3 (part).)
501-8 Sec. 1504.111. ANNUAL REPORT. (a) Not later than February
501-9 1 of each year, the superintendent or manager of a building or
501-10 structure described by Section 1504.102 shall file with the chief
501-11 executive officer of the municipality a detailed report of the
501-12 operation of the building or structure for the year ending on the
501-13 preceding January 1.
501-14 (b) The report must show the total amount of money collected
501-15 and the balance due, and the total disbursements made and the
501-16 amounts remaining unpaid, resulting from the operation of the
501-17 building or structure during that year. (V.A.C.S. Art. 1269j-4,
501-18 Sec. 3 (part).)
501-19 Sec. 1504.112. OFFENSE. (a) A chief executive officer of a
501-20 municipality commits an offense if the chief executive officer
501-21 fails to:
501-22 (1) establish the system of records required by
501-23 Section 1504.110 before the 91st day after the date the building or
501-24 structure is completed; or
501-25 (2) maintain the system of records required by Section
501-26 1504.110.
501-27 (b) A superintendent or manager of a building or structure
502-1 described by Section 1504.102 commits an offense if the
502-2 superintendent or manager fails to file a report required by
502-3 Section 1504.111.
502-4 (c) An offense under this section is a misdemeanor
502-5 punishable by a fine of not less than $100 or more than $1,000.
502-6 (V.A.C.S. Art. 1269j-4, Sec. 3 (part).)
502-7 Sec. 1504.113. CIVIL ENFORCEMENT. A person who resides in a
502-8 municipality and is a taxpayer or holder of an obligation issued
502-9 under this subchapter and secured by the encumbered income of a
502-10 building or structure described by Section 1504.102 is entitled to
502-11 enforce the provisions of this subchapter by appropriate civil
502-12 action in a district court in the county in which the municipality
502-13 is located. (V.A.C.S. Art. 1269j-4, Sec. 3 (part).)
502-14 (Sections 1504.114-1504.150 reserved for expansion)
502-15 SUBCHAPTER D. REVENUE BONDS FOR AIR CONDITIONING EQUIPMENT IN
502-16 AUDITORIUMS OR THEATERS IN MUNICIPALITIES WITH POPULATION
502-17 OF 175,000 OR MORE
502-18 Sec. 1504.151. APPLICABILITY OF SUBCHAPTER. This subchapter
502-19 applies only to a municipality with a population of 175,000 or
502-20 more. (V.A.C.S. Art. 835j, Sec. 1 (part).)
502-21 Sec. 1504.152. AUTHORITY TO ISSUE REVENUE BONDS. The
502-22 governing body of a municipality may issue revenue bonds to acquire
502-23 or install air conditioning equipment in an auditorium or theater
502-24 owned and operated by the municipality. (V.A.C.S. Art. 835j, Sec.
502-25 1 (part).)
502-26 Sec. 1504.153. PLEDGE OF REVENUE. (a) In this section,
502-27 "net revenue" means gross revenue minus all operation and
503-1 maintenance expenses.
503-2 (b) Bonds issued under this subchapter may be secured only
503-3 by a pledge of and be payable from the net revenue from the
503-4 auditorium or theater. (V.A.C.S. Art. 835j, Sec. 1 (part).)
503-5 Sec. 1504.154. BONDS NOT PAYABLE FROM TAXES. (a) A bond
503-6 issued under this subchapter:
503-7 (1) is not a debt of the municipality;
503-8 (2) may be a charge only on the revenue pledged for
503-9 the payment of the bond; and
503-10 (3) may not be included in determining the power of
503-11 the municipality to issue bonds payable from taxation.
503-12 (b) A bond issued under this subchapter must contain on its
503-13 face the following provision: "The holder of this obligation is
503-14 not entitled to demand payment of this obligation out of any money
503-15 raised by taxation." (V.A.C.S. Art. 835j, Sec. 1 (part).)
503-16 Sec. 1504.155. ELECTION. A municipality may issue bonds
503-17 under this subchapter without an election, but the governing body
503-18 of the municipality may hold an election in compliance with Chapter
503-19 1251 to determine whether a majority of the qualified voters
503-20 approve the issuance of the bonds. (V.A.C.S. Art. 835j, Sec. 2
503-21 (part).)
503-22 Sec. 1504.156. MATURITY. A bond issued under this
503-23 subchapter must:
503-24 (1) be payable serially; and
503-25 (2) mature not later than 40 years after its date.
503-26 (V.A.C.S. Art. 835j, Sec. 2 (part).)
503-27 Sec. 1504.157. SIGNATURES. A bond issued under this
504-1 subchapter must be signed by the mayor of the municipality and
504-2 countersigned by the secretary of the municipality. (V.A.C.S.
504-3 Art. 835j, Sec. 2 (part).)
504-4 Sec. 1504.158. ADDITIONAL BONDS. While any bonds issued
504-5 under this subchapter are outstanding, the municipality may not
504-6 issue additional bonds of equal dignity against the pledged
504-7 revenue, except to the extent and in the manner expressly permitted
504-8 in the ordinance authorizing the issuance of the outstanding bonds.
504-9 (V.A.C.S. Art. 835j, Sec. 4.)
504-10 Sec. 1504.159. EXEMPTION FROM TAXATION. A bond issued under
504-11 this subchapter is exempt from taxation by this state or by a
504-12 municipal corporation or any other political subdivision of this
504-13 state. (V.A.C.S. Art. 835j, Sec. 5.)
504-14 Sec. 1504.160. PERSONNEL; OPERATION AND MAINTENANCE
504-15 EXPENSES. A municipality may employ personnel necessary to operate
504-16 and maintain a municipal auditorium or theater for which bonds are
504-17 issued under this subchapter. The costs of operation and
504-18 maintenance are a first lien against the income from the operation
504-19 of the auditorium or theater. (V.A.C.S. Art. 835j, Sec. 3 (part).)
504-20 Sec. 1504.161. CHARGES FOR SERVICES; RESERVES. (a) While
504-21 the principal of or interest on a bond issued under this subchapter
504-22 is outstanding, the municipality shall impose and collect charges
504-23 for the use of the auditorium or theater in amounts at least
504-24 sufficient to:
504-25 (1) pay all operating and maintenance expenses in
504-26 connection with the auditorium or theater;
504-27 (2) pay the principal of and interest on the
505-1 outstanding bonds as the principal matures and as the interest
505-2 accrues; and
505-3 (3) establish and maintain any reserves prescribed in
505-4 the ordinance authorizing the issuance of the bonds.
505-5 (b) Charges imposed under this section must be equal and
505-6 uniform within classes defined by the governing body of the
505-7 municipality. (V.A.C.S. Art. 835j, Sec. 3 (part).)
505-8 (Sections 1504.162-1504.200 reserved for expansion)
505-9 SUBCHAPTER E. OBLIGATIONS FOR EXPOSITION AND CONVENTION HALLS
505-10 IN MUNICIPALITIES WITH POPULATION OF 290,000 OR MORE
505-11 Sec. 1504.201. APPLICABILITY OF SUBCHAPTER. This subchapter
505-12 applies only to a municipality with a population of 290,000 or
505-13 more. (V.A.C.S. Art. 1182e, Sec. 1 (part).)
505-14 Sec. 1504.202. AUTHORITY FOR EXPOSITION AND CONVENTION
505-15 HALLS. A municipality may purchase, construct, encumber, renovate,
505-16 or repair an exposition or convention hall. (V.A.C.S. Art. 1182e,
505-17 Sec. 1 (part).)
505-18 Sec. 1504.203. AUTHORITY TO ISSUE BONDS, NOTES, AND
505-19 WARRANTS. A municipality may issue bonds, notes, or warrants to
505-20 evidence an obligation incurred to purchase, construct, renovate,
505-21 or repair an exposition or convention hall. (V.A.C.S. Art. 1182e,
505-22 Sec. 1 (part).)
505-23 Sec. 1504.204. PLEDGE OF INCOME. A municipality may pledge
505-24 the income from an exposition or convention hall to the payment of
505-25 an obligation issued under this subchapter. (V.A.C.S. Art. 1182e,
505-26 Sec. 1 (part).)
505-27 Sec. 1504.205. OBLIGATIONS NOT PAYABLE FROM TAXES. (a) An
506-1 obligation issued under this subchapter:
506-2 (1) is not a debt of the municipality;
506-3 (2) may be a charge only on the property of the
506-4 exposition or convention hall encumbered; and
506-5 (3) may not be included in determining the power of
506-6 the municipality to issue bonds for any purpose authorized by law.
506-7 (b) Each contract, bond, or note issued or executed under
506-8 this subchapter must contain the following provision: "The holder
506-9 of this obligation is not entitled to demand payment of this
506-10 obligation out of any money raised by taxation." (V.A.C.S.
506-11 Art. 1182e, Secs. 1 (part), 4.)
506-12 Sec. 1504.206. OPERATING EXPENSES AS FIRST LIEN. If the
506-13 income from an exposition or convention hall is encumbered under
506-14 this subchapter, each expense of operation and maintenance,
506-15 including all salaries, labor, materials, interest, repairs, and
506-16 additions necessary to properly maintain the exposition or
506-17 convention hall, and each proper item of expense, is a first lien
506-18 against that income. (V.A.C.S. Art. 1182e, Sec. 3 (part).)
506-19 Sec. 1504.207. CHARGES FOR SERVICES. (a) A municipality
506-20 shall impose and collect charges for the use of an encumbered
506-21 exposition or convention hall in amounts determined by the
506-22 governing body to be sufficient to pay:
506-23 (1) all operating, maintenance, depreciation,
506-24 replacement, improvement, and interest charges in connection with
506-25 the hall;
506-26 (2) for an interest and sinking fund sufficient to pay
506-27 any bonds issued to purchase, construct, or improve the hall; and
507-1 (3) any outstanding debt against the hall.
507-2 (b) A municipality may not allow any free use of or free
507-3 service in connection with the exposition or convention hall.
507-4 (V.A.C.S. Art. 1182e, Sec. 3 (part).)
507-5 Sec. 1504.208. USE OF INCOME FOR OTHER PURPOSES PROHIBITED.
507-6 A municipality may not use the income from the exposition or
507-7 convention hall to pay any other debt, expense, or obligation of
507-8 the municipality until the debt secured by the income is fully
507-9 paid. (V.A.C.S. Art. 1182e, Sec. 8.)
507-10 Sec. 1504.209. MANAGEMENT AND CONTROL. (a) The contract
507-11 under which an exposition or convention hall is encumbered must
507-12 provide that the governing body of the municipality shall manage
507-13 and control the hall during the time the hall is encumbered.
507-14 (b) The governing body may:
507-15 (1) adopt rules governing the use and rental of the
507-16 exposition or convention hall and for the payment of those rents;
507-17 and
507-18 (2) provide penalties for:
507-19 (A) the violation of rules adopted under
507-20 Subdivision (1);
507-21 (B) the use of the hall without the consent or
507-22 knowledge of the authorities in charge of the hall; or
507-23 (C) any interference with, trespass on, or
507-24 injury to the hall or the property on which the hall is located.
507-25 (V.A.C.S. Art. 1182e, Sec. 5.)
507-26 Sec. 1504.210. TRUSTEE. A contract under which an
507-27 exposition or convention hall is encumbered may provide for:
508-1 (1) the selection of a trustee to sell the hall on a
508-2 default in the payment of principal or interest or another default
508-3 under the contract;
508-4 (2) the selection of a successor trustee, if the
508-5 original trustee is disqualified or fails to act; and
508-6 (3) the collection by the trustee of a fee of not more
508-7 than five percent of the principal. (V.A.C.S. Art. 1182e, Sec. 6
508-8 (part).)
508-9 Sec. 1504.211. RECEIVER. (a) The trustee may apply to a
508-10 court for the appointment of a receiver if:
508-11 (1) the contract under which the exposition or
508-12 convention hall is encumbered provides for the appointment of a
508-13 receiver; and
508-14 (2) there is a default in the payment of principal and
508-15 interest or another default under the contract that continues for
508-16 at least 30 days.
508-17 (b) A receiver appointed under this section may, subject to
508-18 the order of the court:
508-19 (1) enter and take possession of the exposition or
508-20 convention hall; and
508-21 (2) operate and maintain the hall and apply the net
508-22 revenue to the liquidation of the debt.
508-23 (c) The receiver may use or rent any part of the hall for
508-24 any purpose consistent with the continued use of the major part of
508-25 the hall as an exposition or convention hall, or, if authorized by
508-26 the court, rent the hall for any lawful use.
508-27 (d) The receiver may rent all or any part of the exposition
509-1 or convention hall to the municipality, and the municipality may
509-2 lease the hall from the receiver.
509-3 (e) An exposition or convention hall that is operated by a
509-4 receiver under this section is free from taxation until the debt
509-5 secured by the hall is fully paid.
509-6 (f) All rights of the receiver and of any lessee or other
509-7 person holding under the receiver end when the debt is paid or the
509-8 trustee, in the exercise of the trustee's powers, sells the
509-9 exposition or convention hall. The trustee may agree with a person
509-10 leasing the hall from the receiver not to sell the hall during the
509-11 term of the person's lease.
509-12 (g) If the principal of all the bonds has not been declared
509-13 due or if a declaration that the principal of all the bonds is due
509-14 is annulled under the contract under which the exposition or
509-15 convention hall is encumbered:
509-16 (1) on application to the court, the rights of the
509-17 receiver may be terminated and the receiver discharged by remedy or
509-18 waiver of the default; and
509-19 (2) the rights of a person leasing the hall from the
509-20 receiver are subject to adjudication and may be terminated or
509-21 adjusted by the court. (V.A.C.S. Art. 1182e, Sec. 6 (part).)
509-22 Sec. 1504.212. NOTICE TO GOVERNING BODY BEFORE FORECLOSURE
509-23 OR OTHER ACTION. (a) Unless written notice is given to the
509-24 governing body of the municipality in accordance with this section
509-25 that there is a default in payment of any installment of principal
509-26 of or interest on an obligation issued under this subchapter and
509-27 that payment has been demanded:
510-1 (1) a collection fee may not accrue;
510-2 (2) a foreclosure proceeding may not be begun in a
510-3 court or through a trustee; and
510-4 (3) an option to mature any part of the obligation
510-5 because of the default may not be exercised.
510-6 (b) A notice under Subsection (a) must be sent by prepaid
510-7 registered mail to each member of the governing body of the
510-8 municipality, addressed to the member at the post office in the
510-9 municipality.
510-10 (c) An action described by Subsection (a) may not be taken
510-11 before the 91st day after the date the notice is mailed.
510-12 (d) A payment of a delinquent installment of principal and
510-13 interest that is paid before the expiration of the period
510-14 prescribed by Subsection (c) and that is accompanied by a payment
510-15 of interest as prescribed in the contract, at a rate not to exceed
510-16 10 percent per year, from the date of default until the date of
510-17 payment, has the same effect as if paid on the date the installment
510-18 was originally due. (V.A.C.S. Art. 1182e, Sec. 7.)
510-19 (Sections 1504.213-1504.250 reserved for expansion)
510-20 SUBCHAPTER F. REVENUE BONDS FOR CULTURAL FACILITIES IN
510-21 HOME-RULE MUNICIPALITIES WITH POPULATION OF 1.2 MILLION OR MORE
510-22 Sec. 1504.251. APPLICABILITY OF SUBCHAPTER. This subchapter
510-23 applies only to a home-rule municipality with a population of 1.2
510-24 million or more. (V.A.C.S. Art. 1182j, Sec. 1.)
510-25 Sec. 1504.252. AUTHORITY FOR CULTURAL AND PARKING
510-26 FACILITIES. A municipality may acquire sites for and establish,
510-27 acquire, lease as lessee or lessor, construct, improve, enlarge,
511-1 equip, repair, operate, or maintain:
511-2 (1) a cultural facility, such as an opera house,
511-3 ballet or symphony hall, theater, or similar building;
511-4 (2) a building combining cultural facilities listed in
511-5 Subdivision (1); or
511-6 (3) a parking facility at or in the immediate vicinity
511-7 of a cultural facility listed in Subdivision (1) for use in
511-8 connection with that facility and otherwise for off-street parking
511-9 or storage of motor vehicles or other conveyances. (V.A.C.S.
511-10 Art. 1182j, Sec. 2(a) (part).)
511-11 Sec. 1504.253. AUTHORITY TO ISSUE REVENUE BONDS. The
511-12 governing body of a municipality by ordinance may issue revenue
511-13 bonds to provide all or part of the money to establish, acquire,
511-14 construct, improve, enlarge, equip, repair, operate, or maintain a
511-15 cultural or parking facility described by Section 1504.252.
511-16 (V.A.C.S. Art. 1182j, Secs. 3(a), (b) (part).)
511-17 Sec. 1504.254. PLEDGE OF REVENUE. (a) Bonds issued under
511-18 this subchapter must be secured by a pledge of and be payable from
511-19 all or a designated part of the revenue from the cultural or
511-20 parking facility for which the bonds are issued, as provided in the
511-21 ordinance authorizing the issuance of the bonds.
511-22 (b) The pledge securing the bonds is inferior to any
511-23 previous pledge of the revenue for the payment of revenue bonds or
511-24 refunding bonds that are outstanding.
511-25 (c) A municipality that leases as lessee a cultural or
511-26 parking facility described by Section 1504.252 may pledge all or
511-27 part of the revenue from the facility to the lease payments the
512-1 municipality must make. (V.A.C.S. Art. 1182j, Secs. 3(b) (part),
512-2 (d).)
512-3 Sec. 1504.255. LIEN ON FACILITY. Subject to any limitation
512-4 contained in any previous pledge, the governing body of the
512-5 municipality may, in addition to pledging the revenue from a
512-6 cultural or parking facility, give a lien on all or part of the
512-7 physical property and facilities constructed or acquired with the
512-8 proceeds of bonds issued under this subchapter. (V.A.C.S.
512-9 Art. 1182j, Sec. 3(b) (part).)
512-10 Sec. 1504.256. PLEDGE OF MIXED BEVERAGE TAX RECEIPTS. (a)
512-11 The governing body of a municipality by official action may pledge
512-12 for the purposes provided by this subchapter a portion of the mixed
512-13 beverage tax that is remitted to the municipality under Section
512-14 183.051, Tax Code.
512-15 (b) The total amount of mixed beverage tax receipts pledged
512-16 under Subsection (a) may not exceed an amount equal to 1-1/2
512-17 percent of the gross receipts subject to taxation under Chapter
512-18 183, Tax Code, from permittees within the municipality. (V.A.C.S.
512-19 Art. 1182j, Sec. 4(a).)
512-20 Sec. 1504.257. SHORTAGE OF MIXED BEVERAGE TAX RECEIPTS. If
512-21 at the time of a remittance of mixed beverage tax receipts by the
512-22 comptroller under Section 183.051, Tax Code, the amount collected
512-23 by the comptroller from permittees in a municipality that has
512-24 pledged a portion of its mixed beverage tax receipts under Section
512-25 1504.256 is less than the total amount required to be collected
512-26 from those permittees by Chapter 183, Tax Code, then the amount to
512-27 be pledged under Section 1504.256 is an amount equal to the total
513-1 amount actually collected from permittees in the municipality
513-2 multiplied by a fraction, the numerator of which is the amount of
513-3 mixed beverage tax receipts pledged under Section 1504.256 for the
513-4 quarterly period and the denominator of which is the total amount
513-5 required to be collected from permittees in the municipality during
513-6 that period. (V.A.C.S. Art. 1182j, Sec. 4(c).)
513-7 Sec. 1504.258. ADDITIONAL USE OF MIXED BEVERAGE TAX
513-8 RECEIPTS. A municipality may spend money derived from the portion
513-9 of the mixed beverage tax receipts authorized to be pledged under
513-10 Section 1504.256 for:
513-11 (1) advertising and promotion of events to take place
513-12 in a cultural facility described by Section 1504.252;
513-13 (2) the attraction of events to a cultural facility
513-14 described by Section 1504.252, either by the municipality or
513-15 through a contract with a person or organization selected by the
513-16 municipality; and
513-17 (3) the encouragement, promotion, improvement, and
513-18 application of the cultural arts, including opera, ballet,
513-19 symphony, and theater, and the arts related to the presentation,
513-20 performance, execution, and exhibition of those major art forms.
513-21 (V.A.C.S. Art. 1182j, Sec. 2(b).)
513-22 Sec. 1504.259. BONDS NOT PAYABLE FROM TAXES; EXCEPTION. (a)
513-23 The owner or holder of a bond issued under this subchapter is not
513-24 entitled to demand payment of the principal of or interest on the
513-25 bond from money raised by taxation.
513-26 (b) Subsection (a) does not apply to a demand for payment
513-27 from mixed beverage tax receipts that are pledged under Section
514-1 1504.256. (V.A.C.S. Art. 1182j, Sec. 6.)
514-2 Sec. 1504.260. CONTENTS OF ORDINANCE AUTHORIZING BONDS. (a)
514-3 The ordinance authorizing the issuance of bonds under this
514-4 subchapter may provide for the flow of funds and the establishment
514-5 and maintenance of an interest and sinking fund, reserve fund, or
514-6 other fund.
514-7 (b) The ordinance may:
514-8 (1) prohibit the issuance of additional bonds or other
514-9 obligations payable from the pledged revenue; or
514-10 (2) reserve the right to issue additional bonds to be
514-11 secured by a pledge of and payable from the revenue on a parity
514-12 with, or subordinate to, the lien and pledge in support of the
514-13 bonds being issued, subject to the conditions prescribed by the
514-14 ordinance.
514-15 (c) The ordinance may contain any other provision or
514-16 covenant, including a covenant with respect to the bonds, the
514-17 pledged revenue, or the operation or maintenance of the cultural or
514-18 parking facility the revenue of which is pledged. The ordinance
514-19 may provide for the operation or lease of all or part of the
514-20 facility and the use or pledge of money derived from operation
514-21 contracts and leases. (V.A.C.S. Art. 1182j, Sec. 8 (part).)
514-22 Sec. 1504.261. ADOPTION AND EXECUTION OF DOCUMENTS. The
514-23 municipality may adopt and have executed any other proceeding or
514-24 instrument necessary or convenient to the issuance of bonds under
514-25 this subchapter. (V.A.C.S. Art. 1182j, Sec. 8 (part).)
514-26 Sec. 1504.262. SIGNATURES. A bond issued under this
514-27 subchapter must be signed by the mayor of the municipality and
515-1 countersigned by the secretary or clerk of the municipality.
515-2 (V.A.C.S. Art. 1182j, Sec. 7 (part).)
515-3 Sec. 1504.263. SALE OF BONDS. A municipality may sell bonds
515-4 issued under this subchapter at public or private sale in the
515-5 manner and on the terms provided by the ordinance under which the
515-6 bonds are issued. (V.A.C.S. Art. 1182j, Sec. 7 (part).)
515-7 Sec. 1504.264. INTERIM RECEIPTS. Pending the preparation of
515-8 a definitive bond, a municipality may provide to the purchaser of a
515-9 bond sold under this subchapter an interim receipt or certificate
515-10 in the form and with the provisions specified in the ordinance
515-11 authorizing the issuance of the bonds. (V.A.C.S. Art. 1182j, Sec.
515-12 7 (part).)
515-13 Sec. 1504.265. USE OF BOND PROCEEDS. From the proceeds of
515-14 bonds issued under this subchapter, a municipality may appropriate
515-15 or set aside amounts:
515-16 (1) to pay interest and administrative and operating
515-17 expenses expected to accrue during the period of construction;
515-18 (2) to be deposited into the reserve fund as provided
515-19 in the ordinance authorizing the issuance of the bonds; and
515-20 (3) to pay all expenses incurred in the issuance,
515-21 sale, and delivery of the bonds. (V.A.C.S. Art. 1182j, Sec. 9.)
515-22 Sec. 1504.266. CHARGES FOR SERVICES. The governing body of
515-23 the municipality shall impose and collect charges for the use of a
515-24 cultural or parking facility the revenue of which is pledged to
515-25 secure bonds issued under this subchapter, and for services
515-26 provided in connection with that use, in amounts at least
515-27 sufficient to comply with each covenant or provision in the
516-1 ordinance authorizing the issuance of the bonds. (V.A.C.S.
516-2 Art. 1182j, Sec. 3(c).)
516-3 Sec. 1504.267. USE OF REVENUE. (a) A municipality shall
516-4 use revenue derived from that portion of mixed beverage tax
516-5 receipts authorized to be pledged under Section 1504.256 for the
516-6 purposes described by Sections 1504.252 and 1504.258, including the
516-7 pledge of that revenue to the payment of bonds issued for a purpose
516-8 described by Section 1504.252.
516-9 (b) Amounts received by a municipality from that portion of
516-10 the mixed beverage tax receipts authorized to be pledged under
516-11 Section 1504.256 and pledged to the payment of bonds as provided by
516-12 Subsection (a) that exceed the amounts required by the ordinance
516-13 under which the bonds are issued may be used for any other purpose
516-14 described by Section 1504.252 or 1504.258. The governing body of
516-15 the municipality may determine that any remaining amounts are
516-16 excess money and may use those amounts for any lawful purpose if
516-17 that use does not violate an ordinance adopted by the governing
516-18 body in connection with the issued bonds. (V.A.C.S. Art. 1182j,
516-19 Sec. 5.)
516-20 Sec. 1504.268. CONFLICT WITH MUNICIPAL CHARTER. To the
516-21 extent of a conflict between this subchapter and a municipal
516-22 charter, this subchapter controls. (V.A.C.S. Art. 1182j, Sec. 12
516-23 (part).)
516-24 CHAPTER 1505. OBLIGATIONS FOR COASTAL MUNICIPALITIES
516-25 FOR COASTAL MATTERS
516-26 SUBCHAPTER A. BONDS FOR HARBOR IMPROVEMENTS IN
516-27 MUNICIPALITIES BORDERING GULF OF MEXICO
517-1 Sec. 1505.001. APPLICABILITY OF SUBCHAPTER
517-2 Sec. 1505.002. AUTHORITY TO ISSUE BONDS FOR HARBOR
517-3 IMPROVEMENTS
517-4 Sec. 1505.003. AMOUNT OF BONDS
517-5 Sec. 1505.004. SURPLUS BONDS
517-6 (Sections 1505.005-1505.050 reserved for expansion)
517-7 SUBCHAPTER B. BONDS FOR NAVIGATIONAL FACILITIES IN CERTAIN
517-8 COASTAL MUNICIPALITIES
517-9 Sec. 1505.051. APPLICABILITY OF SUBCHAPTER
517-10 Sec. 1505.052. DEFINITION
517-11 Sec. 1505.053. AUTHORITY FOR NAVIGATIONAL FACILITIES
517-12 Sec. 1505.054. AUTHORITY TO ISSUE BONDS
517-13 Sec. 1505.055. AUTHORITY TO BORROW FROM UNITED STATES
517-14 Sec. 1505.056. PAYMENT OF BONDS
517-15 Sec. 1505.057. ENCUMBRANCE AS ADDITIONAL SECURITY
517-16 Sec. 1505.058. ADDITIONAL SECURITY FOR PROJECT RELATED TO
517-17 ACQUISITION OR CONSTRUCTION OF BRIDGE
517-18 Sec. 1505.059. BONDS NOT PAYABLE FROM TAXES
517-19 Sec. 1505.060. ESTIMATE OF PROJECT COST; NOTICE OF INTENTION
517-20 TO APPROVE PROJECT AND ISSUE BONDS
517-21 Sec. 1505.061. ELECTION
517-22 Sec. 1505.062. CONTENTS OF ORDINANCE AUTHORIZING ISSUANCE
517-23 OF BONDS
517-24 Sec. 1505.063. MATURITY
517-25 Sec. 1505.064. MEDIUM OF PAYMENT
517-26 Sec. 1505.065. ADDITIONAL BONDS
517-27 Sec. 1505.066. SALE OF BONDS
518-1 Sec. 1505.067. DEPOSIT OF BOND PROCEEDS
518-2 Sec. 1505.068. OPERATING EXPENSES AS FIRST LIEN
518-3 Sec. 1505.069. SALE OR LEASE OF RECLAIMED OR RECONSTRUCTED
518-4 LAND
518-5 Sec. 1505.070. CHARGES
518-6 Sec. 1505.071. DEPOSITS TO BOND AND INTEREST REDEMPTION
518-7 FUND
518-8 Sec. 1505.072. DISPOSITION OF CERTAIN SURPLUS MONEY
518-9 Sec. 1505.073. SEPARATE RECORDS
518-10 Sec. 1505.074. REQUIRED PAYMENT FOR SERVICES RENDERED TO
518-11 MUNICIPALITY
518-12 Sec. 1505.075. AUTHORITY TO REGULATE OPERATION OF BRIDGES
518-13 AND TRAFFIC ON BRIDGES
518-14 Sec. 1505.076. COMMISSIONERS OF NAVIGATION DISTRICT
518-15 Sec. 1505.077. AUTHORITY FOR COUNTY APPROPRIATIONS
518-16 Sec. 1505.078. AUTHORITY FOR TEXAS DEPARTMENT OF
518-17 TRANSPORTATION EXPENDITURES
518-18 Sec. 1505.079. CERTAIN COUNTY AND MUNICIPAL EXPENDITURES NOT
518-19 PROHIBITED
518-20 Sec. 1505.080. UNEXPENDED BALANCE
518-21 Sec. 1505.081. EXEMPTION FROM TAXATION
518-22 (Sections 1505.082-1505.100 reserved for expansion)
518-23 SUBCHAPTER C. OBLIGATIONS FOR TOLL BRIDGES AND OTHER FACILITIES
518-24 IN CERTAIN COASTAL MUNICIPALITIES
518-25 Sec. 1505.101. APPLICABILITY OF SUBCHAPTER
518-26 Sec. 1505.102. DEFINITIONS
518-27 Sec. 1505.103. AUTHORITY TO ISSUE OBLIGATIONS FOR CERTAIN
519-1 FACILITIES
519-2 Sec. 1505.104. AUTHORITY TO BORROW MONEY
519-3 Sec. 1505.105. SECURITY FOR PAYMENT OF OBLIGATIONS
519-4 Sec. 1505.106. OBLIGATIONS NOT PAYABLE FROM TAXES
519-5 Sec. 1505.107. ELECTION
519-6 Sec. 1505.108. MATURITY
519-7 Sec. 1505.109. ACCOUNTS REQUIRED TO BE CREATED BY
519-8 ORDINANCE
519-9 Sec. 1505.110. OPERATING EXPENSES AS FIRST LIEN
519-10 Sec. 1505.111. EXECUTION OF INDENTURE OR DEED OF TRUST
519-11 Sec. 1505.112. AUTHORITY TO REMOVE OR DEMOLISH
519-12 BRIDGE OR TUNNEL
519-13 Sec. 1505.113. CONVERSION OF BRIDGE OR TUNNEL TO
519-14 TOLL BRIDGE OR TUNNEL
519-15 Sec. 1505.114. EMINENT DOMAIN
519-16 Sec. 1505.115. COMMISSIONERS OF NAVIGATION DISTRICT
519-17 (Sections 1505.116-1505.150 reserved for expansion)
519-18 SUBCHAPTER D. OBLIGATIONS FOR FISH MARKETS BY CERTAIN
519-19 COASTAL MUNICIPALITIES
519-20 Sec. 1505.151. APPLICABILITY OF SUBCHAPTER
519-21 Sec. 1505.152. AUTHORITY TO ACQUIRE OR CONSTRUCT FISH
519-22 MARKET
519-23 Sec. 1505.153. AUTHORITY TO ISSUE OBLIGATIONS
519-24 Sec. 1505.154. AUTHORITY TO ACCEPT LOANS AND GRANTS FROM
519-25 UNITED STATES
519-26 Sec. 1505.155. SECURITY FOR PAYMENT OF OBLIGATIONS
519-27 Sec. 1505.156. OBLIGATIONS NOT PAYABLE FROM TAXES
520-1 Sec. 1505.157. MATURITY
520-2 Sec. 1505.158. OPERATING EXPENSES AS FIRST LIEN
520-3 Sec. 1505.159. USE OF REVENUE
520-4 Sec. 1505.160. SUBORDINATE OBLIGATIONS
520-5 Sec. 1505.161. LEASE AND SALE OF FACILITIES
520-6 (Sections 1505.162-1505.200 reserved for expansion)
520-7 SUBCHAPTER E. BONDS FOR HARBOR IMPROVEMENTS AND FACILITIES
520-8 IN COASTAL MUNICIPALITIES WITH POPULATION OF LESS THAN 12,000
520-9 Sec. 1505.201. APPLICABILITY OF SUBCHAPTER
520-10 Sec. 1505.202. DEFINITIONS
520-11 Sec. 1505.203. AUTHORITY TO ISSUE REVENUE BONDS
520-12 Sec. 1505.204. AUTHORITY TO ACCEPT LOANS AND GRANTS
520-13 Sec. 1505.205. LOCATION OF HARBOR IMPROVEMENT OR FACILITY
520-14 Sec. 1505.206. PLEDGE OF REVENUE
520-15 Sec. 1505.207. GRANT OF FRANCHISE
520-16 Sec. 1505.208. BONDS NOT PAYABLE FROM TAXES
520-17 Sec. 1505.209. ELECTION
520-18 Sec. 1505.210. ADDITIONAL BONDS
520-19 Sec. 1505.211. TRANSFER OF PLEDGED REVENUE
520-20 Sec. 1505.212. RATES
520-21 Sec. 1505.213. APPOINTMENT OF RECEIVER
520-22 Sec. 1505.214. EXEMPTION FROM ASSESSMENT OR TAXATION
520-23 Sec. 1505.215. AUTHORITY TO ISSUE REFUNDING BONDS
520-24 Sec. 1505.216. TERMS OF ISSUANCE OF REFUNDING BONDS
520-25 Sec. 1505.217. REGISTRATION OF REFUNDING BONDS BY
520-26 COMPTROLLER
520-27 (Sections 1505.218-1505.250 reserved for expansion)
521-1 SUBCHAPTER F. BONDS FOR HARBOR, WHARF, AND DOCK FACILITIES IN
521-2 COASTAL MUNICIPALITIES WITH POPULATION OF 5,000 OR LESS
521-3 Sec. 1505.251. APPLICABILITY OF SUBCHAPTER
521-4 Sec. 1505.252. AUTHORITY FOR HARBOR, WHARF, AND DOCK
521-5 FACILITIES
521-6 Sec. 1505.253. AUTHORITY TO ISSUE BONDS
521-7 Sec. 1505.254. ELECTION
521-8 CHAPTER 1505. OBLIGATIONS FOR COASTAL MUNICIPALITIES
521-9 FOR COASTAL MATTERS
521-10 SUBCHAPTER A. BONDS FOR HARBOR IMPROVEMENTS IN
521-11 MUNICIPALITIES BORDERING GULF OF MEXICO
521-12 Sec. 1505.001. APPLICABILITY OF SUBCHAPTER. This subchapter
521-13 applies only to a municipality that borders the Gulf of Mexico.
521-14 (V.A.C.S. Art. 835 (part).)
521-15 Sec. 1505.002. AUTHORITY TO ISSUE BONDS FOR HARBOR
521-16 IMPROVEMENTS. A municipality may issue bonds necessary to improve
521-17 or aid the improvement of a harbor of the municipality or a bar at
521-18 the entrance of the harbor. (V.A.C.S. Art. 835 (part).)
521-19 Sec. 1505.003. AMOUNT OF BONDS. A municipality may issue
521-20 bonds under this subchapter in an amount:
521-21 (1) the municipality considers necessary; and
521-22 (2) that does not exceed a limit on debt set by the
521-23 municipal charter. (V.A.C.S. Art. 835 (part).)
521-24 Sec. 1505.004. SURPLUS BONDS. A municipality may sell any
521-25 available bonds not needed for the purpose for which the bonds were
521-26 issued to improve or aid the improvement of a harbor of the
521-27 municipality or a bar at the entrance of the harbor. (V.A.C.S.
522-1 Art. 835 (part).)
522-2 (Sections 1505.005-1505.050 reserved for expansion)
522-3 SUBCHAPTER B. BONDS FOR NAVIGATIONAL FACILITIES IN CERTAIN
522-4 COASTAL MUNICIPALITIES
522-5 Sec. 1505.051. APPLICABILITY OF SUBCHAPTER. This subchapter
522-6 applies only to a municipality that:
522-7 (1) is located in a navigation district organized
522-8 under the general laws of this state; and
522-9 (2) has a deepwater port located in the municipality.
522-10 (V.A.C.S. Art. 1187a, Sec. 1 (part).)
522-11 Sec. 1505.052. DEFINITION. In this subchapter, "project"
522-12 means:
522-13 (1) a facility purchased, constructed, improved,
522-14 enlarged, or repaired by a municipality as described by Section
522-15 1505.053; and
522-16 (2) land acquired or improved by a municipality as
522-17 described by Section 1505.053. (New.)
522-18 Sec. 1505.053. AUTHORITY FOR NAVIGATIONAL FACILITIES. A
522-19 municipality may:
522-20 (1) own, purchase, construct, operate, improve,
522-21 enlarge, repair, or maintain a bridge over or across any stream,
522-22 inlet, or arm of the Gulf of Mexico or entrance canal to the
522-23 deepwater port of the municipality that connects any of the public
522-24 streets, highways, or thoroughfares of the municipality;
522-25 (2) own, purchase, construct, repair, maintain,
522-26 operate, or lease:
522-27 (A) a wharf, pier, pavilion, or boathouse; or
523-1 (B) a dam, dyke, or spillway with a road or
523-2 bridge on or over it to create a freshwater supply basin for
523-3 domestic, irrigation, and other purposes in the navigation district
523-4 in which the municipality is located or in a county adjacent to the
523-5 freshwater basin;
523-6 (3) acquire, reclaim, reconstruct, or fill in any
523-7 submerged land along the waterfront of the municipality and
523-8 construct, operate, or maintain a water main, gas main, storm
523-9 sewer, sanitary sewer, sidewalk, street, or similar improvement in
523-10 connection with that land;
523-11 (4) construct a seawall, breakwater, or other shore
523-12 protection to protect the waterfront of the municipality; and
523-13 (5) construct, reconstruct, maintain, operate, or
523-14 dredge a channel in connection with a deepwater port in aid of
523-15 navigation within the municipality. (V.A.C.S. Art. 1187a, Sec. 1
523-16 (part).)
523-17 Sec. 1505.054. AUTHORITY TO ISSUE BONDS. A municipality may
523-18 borrow money and by ordinance may issue bonds for a purpose
523-19 described by Section 1505.053. (V.A.C.S. Art. 1187a, Sec. 5
523-20 (part).)
523-21 Sec. 1505.055. AUTHORITY TO BORROW FROM UNITED STATES. (a)
523-22 To construct and maintain a project, a municipality may borrow
523-23 money from the United States or an agency of the United States
523-24 created for the purpose of making such a loan.
523-25 (b) To obtain the loan, a municipality may encumber:
523-26 (1) the property and facilities of the project
523-27 acquired or to be acquired;
524-1 (2) the revenue and income from the operation of the
524-2 project acquired or to be acquired; and
524-3 (3) anything relating to the project acquired or to be
524-4 acquired.
524-5 (c) As additional security for the loan, the municipality
524-6 may:
524-7 (1) encumber the net revenue and income from the
524-8 operation of all projects; and
524-9 (2) provide in the encumbrance for a grant, to a
524-10 purchaser under sale or foreclosure, of a franchise to operate the
524-11 encumbered project for a term not to exceed 20 years from the date
524-12 of purchase, subject to all laws regulating the same then in force.
524-13 (V.A.C.S. Art. 1187a, Sec. 28.)
524-14 Sec. 1505.056. PAYMENT OF BONDS. The principal of and
524-15 interest on bonds issued under this subchapter are payable solely
524-16 from revenue, including rents and other charges received from any
524-17 reclaimed or reconstructed land, derived from the project for
524-18 which the bonds were issued. (V.A.C.S. Art. 1187a, Sec. 5 (part).)
524-19 Sec. 1505.057. ENCUMBRANCE AS ADDITIONAL SECURITY. (a) As
524-20 additional security for the payment of the principal of and
524-21 interest on bonds issued under this subchapter, a municipality may
524-22 encumber any part or all of a project undertaken with funds derived
524-23 from the bonds.
524-24 (b) An encumbrance entered into under this section:
524-25 (1) may provide for a grant, to a purchaser under sale
524-26 or foreclosure, of a franchise to operate the encumbered project
524-27 for a term not to exceed 20 years from the date of purchase,
525-1 subject to all laws regulating the same then in force; and
525-2 (2) shall:
525-3 (A) provide for a trustee to enforce
525-4 foreclosure; and
525-5 (B) provide the municipality with the option at
525-6 any five-year period within the 20-year term after purchase to
525-7 repurchase a project, other than reclaimed land acquired by an
525-8 individual purchaser, under reasonable terms and at a reasonable
525-9 price stated in the encumbrance.
525-10 (c) Subject to Section 1505.076, the governing body of the
525-11 municipality shall manage and control a project while it is
525-12 encumbered under this section. (V.A.C.S. Art. 1187a, Secs. 5
525-13 (part), 6 (part), 7, 8 (part).)
525-14 Sec. 1505.058. ADDITIONAL SECURITY FOR PROJECT RELATED TO
525-15 ACQUISITION OR CONSTRUCTION OF BRIDGE. As additional security, a
525-16 municipality that acquires or constructs a bridge using bonds
525-17 issued under this subchapter may pledge revenue from any project
525-18 carried out in connection with the acquisition or construction of
525-19 the bridge, including revenue or income from any submerged land
525-20 reclaimed or reconstructed and any improvement built on the land,
525-21 including a water main, gas main, storm sewer, sanitary sewer,
525-22 sidewalk, or street. (V.A.C.S. Art. 1187a, Sec. 5 (part).)
525-23 Sec. 1505.059. BONDS NOT PAYABLE FROM TAXES. (a) A bond
525-24 issued under this subchapter:
525-25 (1) is not a debt of the municipality within the
525-26 meaning of any state constitutional or statutory limitation; and
525-27 (2) may not be included in determining the power of
526-1 the municipality to issue bonds for any purpose authorized by law.
526-2 (b) Each bond and coupon issued under this subchapter must
526-3 state on its face that:
526-4 (1) the bond or coupon is issued under this
526-5 subchapter;
526-6 (2) the bond or coupon is not a debt of the
526-7 municipality within the meaning of any state constitutional or
526-8 statutory limitation; and
526-9 (3) the holder of the bond or coupon is not entitled
526-10 to demand payment of the bond or coupon from any money raised by
526-11 taxation. (V.A.C.S. Art. 1187a, Sec. 5 (part).)
526-12 Sec. 1505.060. ESTIMATE OF PROJECT COST; NOTICE OF INTENTION
526-13 TO APPROVE PROJECT AND ISSUE BONDS. (a) Before approving a
526-14 project under this subchapter, the governing body of the
526-15 municipality shall:
526-16 (1) obtain an estimate of the cost of the project; and
526-17 (2) give notice of its intention to approve the
526-18 project.
526-19 (b) The notice must:
526-20 (1) describe the proposed project;
526-21 (2) state the estimated cost of the proposed project;
526-22 (3) state the amount, location, and use or disposition
526-23 of any land to be reclaimed;
526-24 (4) state the time the governing body proposes to
526-25 adopt the ordinance authorizing the proposed project and the
526-26 issuance of the bonds; and
526-27 (5) refer to the right to petition for an election as
527-1 authorized by Section 1505.061.
527-2 (c) The notice must be published in a newspaper of general
527-3 circulation in the municipality once a week for four consecutive
527-4 weeks, with the last publication being before the 20th day before
527-5 the date set for authorization of the proposed project and issuance
527-6 of the bonds. (V.A.C.S. Art. 1187a, Sec. 4 (part).)
527-7 Sec. 1505.061. ELECTION. (a) If, before the time set for
527-8 action on the ordinance authorizing the proposed project and the
527-9 issuance of the bonds, a petition is filed with the municipal
527-10 secretary or municipal clerk requesting an election on the approval
527-11 of the project and the issuance of the bonds that is signed by at
527-12 least 100 registered voters of the municipality who are listed on
527-13 the most recent tax roll of the municipality as owning property,
527-14 the governing body of the municipality may not approve the project
527-15 or issue the bonds unless a proposition for the approval of the
527-16 project and the issuance of the bonds is approved by a majority of
527-17 the votes cast at an election held for that purpose.
527-18 (b) The governing body shall conduct the election in the
527-19 manner provided by Chapter 1251.
527-20 (c) The governing body may hold an election on approval of
527-21 the project and issuance of the bonds regardless of whether a
527-22 petition is filed. (V.A.C.S. Art. 1187a, Sec. 4 (part).)
527-23 Sec. 1505.062. CONTENTS OF ORDINANCE AUTHORIZING ISSUANCE OF
527-24 BONDS. (a) An ordinance authorizing the issuance of bonds for
527-25 a project under this subchapter must:
527-26 (1) briefly describe the proposed project;
527-27 (2) state the estimated cost of the project;
528-1 (3) include the amount, maximum rate of interest, time
528-2 and place of payment, and other details in connection with the
528-3 issuance;
528-4 (4) specify:
528-5 (A) whether the project is to be operated on the
528-6 basis of a calendar, operating, or fiscal year; and
528-7 (B) the beginning and ending dates of that year;
528-8 (5) provide for:
528-9 (A) an operation and maintenance account; and
528-10 (B) a bond and interest redemption fund; and
528-11 (6) contain a substantial description of any franchise
528-12 provided in an encumbrance entered into under Section 1505.057.
528-13 (b) The governing body of the municipality shall covenant in
528-14 the ordinance, and on the face of each bond issued under this
528-15 subchapter, to at all times maintain charges for services provided
528-16 by the project in amounts sufficient to:
528-17 (1) pay:
528-18 (A) the principal of and interest on the bonds
528-19 when payable;
528-20 (B) administration and operation expenses; and
528-21 (C) expenses necessary to maintain the project;
528-22 (2) create the bond and interest redemption fund; and
528-23 (3) fund:
528-24 (A) a reserve for depreciation of the project;
528-25 and
528-26 (B) a reserve for improvements and extensions of
528-27 the project other than those necessary to maintain the project.
529-1 (c) In the ordinance, the municipality may provide for
529-2 additional bonds for extensions and permanent improvements to the
529-3 project. (V.A.C.S. Art. 1187a, Secs. 5 (part), 6 (part), 16
529-4 (part), 18 (part), 20 (part), 21.)
529-5 Sec. 1505.063. MATURITY. A bond issued under this
529-6 subchapter must mature not later than 45 years after its date.
529-7 (V.A.C.S. Art. 1187a, Sec. 5 (part).)
529-8 Sec. 1505.064. MEDIUM OF PAYMENT. A bond or coupon issued
529-9 under this subchapter after October 27, 1977, may be made payable
529-10 in:
529-11 (1) United States currency; or
529-12 (2) gold coin of or equal to the standard of weight
529-13 and fineness existing on its date of payment. (V.A.C.S.
529-14 Art. 1187a, Sec. 5 (part).)
529-15 Sec. 1505.065. ADDITIONAL BONDS. (a) As provided in the
529-16 ordinance authorizing the issuance of bonds under this subchapter,
529-17 the municipality may issue and negotiate additional bonds as
529-18 necessary.
529-19 (b) Additional bonds that are sold are on a parity with
529-20 bonds of the same issue. (V.A.C.S. Art. 1187a, Sec. 16 (part).)
529-21 Sec. 1505.066. SALE OF BONDS. (a) A municipality shall
529-22 sell bonds issued under this subchapter in the manner and under the
529-23 terms that the governing body of the municipality considers to be
529-24 in the best interest of the municipality.
529-25 (b) A municipality may make payments under a contract for a
529-26 project in bonds issued under this subchapter. (V.A.C.S.
529-27 Art. 1187a, Sec. 5 (part).)
530-1 Sec. 1505.067. DEPOSIT OF BOND PROCEEDS. The governing body
530-2 of a municipality that issues bonds under this subchapter shall:
530-3 (1) if practicable, require that:
530-4 (A) the bond proceeds be deposited in an account
530-5 in a bank that is a member of the Federal Reserve System; and
530-6 (B) each deposit be secured by direct
530-7 obligations of the United States that have an aggregate market
530-8 value at least equal to the amount of proceeds then on deposit; or
530-9 (2) if it is not practicable for the bond proceeds to
530-10 be deposited as provided by Subdivision (1), deposit the proceeds
530-11 in a bank or other depository that will secure the deposit to the
530-12 governing body's satisfaction. (V.A.C.S. Art. 1187a, Sec. 12.)
530-13 Sec. 1505.068. OPERATING EXPENSES AS FIRST LIEN. The
530-14 reasonable costs of administering and operating and the reasonable
530-15 expense of maintaining the project are a first lien against the
530-16 revenue and income from the operation of a project, superior to the
530-17 lien of any encumbrance on the project. From the revenue of a
530-18 project, the municipality shall, monthly or more frequently if
530-19 necessary, first deposit to the credit of the operation and
530-20 maintenance account an amount sufficient to pay those expenses.
530-21 (V.A.C.S. Art. 1187a, Secs. 19, 20 (part).)
530-22 Sec. 1505.069. SALE OR LEASE OF RECLAIMED OR RECONSTRUCTED
530-23 LAND. A municipality that reclaims or reconstructs submerged land
530-24 under this subchapter may:
530-25 (1) sell, lease, or grant a franchise for the use of
530-26 the land; and
530-27 (2) use revenue from the sale, lease, or franchise as
531-1 provided by this subchapter. (V.A.C.S. Art. 1187a, Sec. 1 (part).)
531-2 Sec. 1505.070. CHARGES. (a) The governing body of a
531-3 municipality shall set and at all times maintain charges for
531-4 services and facilities of the project, and for the sale of
531-5 reclaimed land, in amounts sufficient to pay, create, or fund, as
531-6 appropriate, each item listed in Section 1505.062(b).
531-7 (b) A state bureau, board, commission, agency, or
531-8 instrumentality may not supervise or regulate the amount of a
531-9 charge of the municipality. This subchapter does not affect a
531-10 power or duty of the Texas Board of Health. (V.A.C.S. Art. 1187a,
531-11 Secs. 18 (part), 25.)
531-12 Sec. 1505.071. DEPOSITS TO BOND AND INTEREST REDEMPTION
531-13 FUND. (a) The municipality shall, monthly or more frequently if
531-14 necessary, deposit to the credit of the bond and interest
531-15 redemption fund an amount of money from the gross income and
531-16 revenue of the project sufficient to pay, when due, the principal
531-17 of and interest on the bonds.
531-18 (b) The governing body of the municipality may deposit a
531-19 reasonable amount to the credit of the bond and interest redemption
531-20 fund in excess of the amount required to pay bonds maturing during
531-21 the earlier years of maturities of the bonds to provide a reserve
531-22 fund to prevent a deficiency in payment of bonds maturing in later
531-23 years. (V.A.C.S. Art. 1187a, Sec. 20 (part).)
531-24 Sec. 1505.072. DISPOSITION OF CERTAIN SURPLUS MONEY. The
531-25 governing body of the municipality may provide for the disposition
531-26 of surplus money in the operation and maintenance account or a
531-27 depreciation account by having the money:
532-1 (1) transferred to the bond and interest redemption
532-2 fund;
532-3 (2) invested; or
532-4 (3) otherwise disposed of. (V.A.C.S. Art. 1187a, Sec.
532-5 22.)
532-6 Sec. 1505.073. SEPARATE RECORDS. (a) A municipality that
532-7 issues bonds under this subchapter shall establish and maintain
532-8 proper records into which full and correct entries shall be made of
532-9 all dealings or transactions of or in relation to the property,
532-10 business, or affairs of the project.
532-11 (b) The records:
532-12 (1) must be separate from other records of the
532-13 municipality; and
532-14 (2) shall be open for examination and inspection by
532-15 any:
532-16 (A) taxpayer;
532-17 (B) user of a service furnished by the project;
532-18 (C) holder of a bond issued under this
532-19 subchapter; or
532-20 (D) person acting for or on behalf of the
532-21 taxpayer, user, or holder. (V.A.C.S. Art. 1187a, Sec. 26.)
532-22 Sec. 1505.074. REQUIRED PAYMENT FOR SERVICES RENDERED TO
532-23 MUNICIPALITY. (a) A municipality shall be charged the reasonable
532-24 cost or value of a service rendered to the municipality by a
532-25 project.
532-26 (b) The municipality shall pay the charges, as the service
532-27 accrues, from:
533-1 (1) current funds of the municipality; or
533-2 (2) the proceeds of taxes imposed at a rate sufficient
533-3 for that purpose.
533-4 (c) Money received by the project under this section must be
533-5 accounted for in the same manner as other revenue of the project.
533-6 (V.A.C.S. Art. 1187a, Sec. 15.)
533-7 Sec. 1505.075. AUTHORITY TO REGULATE OPERATION OF BRIDGES
533-8 AND TRAFFIC ON BRIDGES. Except as provided by Section 1505.076, a
533-9 municipality may adopt reasonable and necessary ordinances to
533-10 regulate:
533-11 (1) the operation of a bridge that is constructed,
533-12 maintained, or operated under this subchapter; and
533-13 (2) traffic on the bridge. (V.A.C.S. Art. 1187a, Sec.
533-14 2.)
533-15 Sec. 1505.076. COMMISSIONERS OF NAVIGATION DISTRICT. (a) A
533-16 municipality may not construct, maintain, or operate a bridge over
533-17 or across an entrance channel to a deepwater port operated by a
533-18 navigation district without a permit issued by the commissioners of
533-19 the district. Plans and specifications for the bridge must be
533-20 jointly approved by the commissioners and the governing body of the
533-21 municipality.
533-22 (b) If a bridge over or across the entrance channel to the
533-23 port is constructed, maintained, or operated under this subchapter,
533-24 the commissioners of the navigation district:
533-25 (1) may prescribe reasonable rules for the operation
533-26 of the bridge in aid of navigation;
533-27 (2) shall exercise direct control over the maintenance
534-1 and operation of the mechanical facilities of the bridge that
534-2 provide clearance of the channel for vessels to enter or leave the
534-3 port;
534-4 (3) may employ and direct all agencies in the
534-5 management and operation of those facilities; and
534-6 (4) may appropriate and use any available revenue of
534-7 the district to defray the cost of maintaining or operating the
534-8 bridge.
534-9 (c) A municipality may not construct, maintain, or operate a
534-10 bridge over or across an entrance channel to a deepwater port
534-11 operated by a navigation district except as provided by this
534-12 section.
534-13 (d) This section does not apply after land or a facility
534-14 mortgaged by a municipality is sold on foreclosure. (V.A.C.S.
534-15 Art. 1187a, Secs. 8 (part), 29.)
534-16 Sec. 1505.077. AUTHORITY FOR COUNTY APPROPRIATIONS. A
534-17 county in which is located a municipality to which this chapter
534-18 applies may:
534-19 (1) appropriate any available revenue of the county to
534-20 the municipality for use in:
534-21 (A) constructing a bridge;
534-22 (B) reclaiming or reconstructing submerged land;
534-23 or
534-24 (C) constructing seawall or breakwater
534-25 protection for its waterfront; or
534-26 (2) appropriate and apply any available revenue to the
534-27 operation or maintenance of any such project. (V.A.C.S.
535-1 Art. 1187a, Sec. 30.)
535-2 Sec. 1505.078. AUTHORITY FOR TEXAS DEPARTMENT OF
535-3 TRANSPORTATION EXPENDITURES. The Texas Department of
535-4 Transportation, with the approval of the governor, may apply any of
535-5 the available revenue of the department to aid in:
535-6 (1) the construction, operation, or maintenance of a
535-7 bridge acquired or constructed under this subchapter, including any
535-8 approach to the bridge; or
535-9 (2) the acquisition of any property in connection with
535-10 or in furtherance of those activities. (V.A.C.S. Art. 1187a, Sec.
535-11 31.)
535-12 Sec. 1505.079. CERTAIN COUNTY AND MUNICIPAL EXPENDITURES NOT
535-13 PROHIBITED. This subchapter does not prohibit a county or
535-14 municipality from appropriating or using any available income and
535-15 revenue of the county or municipality derived from any source,
535-16 other than from the operation of the project by a municipality, to:
535-17 (1) pay an immediate expense of maintaining or
535-18 operating a project; or
535-19 (2) aid in financing any part of constructing a bridge
535-20 or reclaiming any submerged land. (V.A.C.S. Art. 1187a, Sec. 24.)
535-21 Sec. 1505.080. UNEXPENDED BALANCE. (a) Any proceeds of the
535-22 sale of bonds issued under this subchapter that are unspent after
535-23 completion of the project for which the bonds were issued:
535-24 (1) shall be deposited to the credit of the bond and
535-25 interest redemption fund for the bonds; and
535-26 (2) may be used only to:
535-27 (A) pay the principal of the bonds; or
536-1 (B) purchase outstanding bonds of the issue from
536-2 which the proceeds were derived.
536-3 (b) A bond may not be purchased under Subsection (a)(2)(B)
536-4 for a price that exceeds, excluding accrued interest, the face
536-5 amount of the bond.
536-6 (c) A bond purchased under Subsection (a)(2)(B) must be
536-7 canceled and may not be reissued. (V.A.C.S. Art. 1187a, Sec. 13
536-8 (part).)
536-9 Sec. 1505.081. EXEMPTION FROM TAXATION. (a) A bond or
536-10 interest coupon issued under this subchapter is exempt from
536-11 taxation under any law of this state.
536-12 (b) In addition to the provisions required by Section
536-13 1505.059(b), each bond issued under this subchapter must state on
536-14 its face the following provision: "The principal of and interest
536-15 on this bond are exempt from taxation under any law of the State of
536-16 Texas." (V.A.C.S. Art. 1187a, Sec. 10.)
536-17 (Sections 1505.082-1505.100 reserved for expansion)
536-18 SUBCHAPTER C. OBLIGATIONS FOR TOLL BRIDGES AND OTHER FACILITIES
536-19 IN CERTAIN COASTAL MUNICIPALITIES
536-20 Sec. 1505.101. APPLICABILITY OF SUBCHAPTER. This subchapter
536-21 applies only to a municipality that:
536-22 (1) is located in a navigation district organized
536-23 under the general laws of this state; and
536-24 (2) has a deepwater port located in the district.
536-25 (V.A.C.S. Art. 1187b, Sec. 1 (part).)
536-26 Sec. 1505.102. DEFINITIONS. In this subchapter:
536-27 (1) "Bridge or tunnel" means a bridge over, or a tube,
537-1 underpass, or tunnel under, any stream, inlet, or arm of the Gulf
537-2 of Mexico or entrance channel to the deepwater port of a
537-3 municipality that connects any public streets or thoroughfares of,
537-4 in, or to the municipality.
537-5 (2) "Obligation" means a bond, note, or warrant.
537-6 (3) "Project" means:
537-7 (A) a facility constructed, maintained,
537-8 operated, extended, improved, or replaced by a municipality as
537-9 described by Section 1505.103; and
537-10 (B) land acquired or improved by a municipality
537-11 as described by Section 1505.103. (V.A.C.S. Art. 1187b, Sec. 16a;
537-12 New.)
537-13 Sec. 1505.103. AUTHORITY TO ISSUE OBLIGATIONS FOR CERTAIN
537-14 FACILITIES. A municipality may issue revenue obligations to:
537-15 (1) construct, maintain, or operate a toll bridge or
537-16 tunnel;
537-17 (2) construct, maintain, operate, or extend a sewage
537-18 disposal plant, without regard to whether the plant is inside or
537-19 outside the municipality;
537-20 (3) construct, maintain, extend, or improve a sanitary
537-21 sewer line or storm sewer line, without regard to whether the line
537-22 is inside or outside the municipality;
537-23 (4) if found necessary by the governing body of the
537-24 municipality, construct, maintain, extend, or improve a water main
537-25 or water line from the source of water supply of the municipality
537-26 to any location inside the municipality;
537-27 (5) acquire, reclaim, reconstruct, elevate, or fill in
538-1 any submerged land or lowland along a waterfront of the
538-2 municipality and construct a sidewalk, street, or gas line on the
538-3 land;
538-4 (6) construct, maintain, extend, or improve a seawall,
538-5 breakwater, or other shore protection to protect the waterfront of
538-6 the municipality;
538-7 (7) construct, reconstruct, maintain, operate, or
538-8 dredge a channel or boat basin in connection with any deepwater
538-9 port of the municipality; or
538-10 (8) construct, maintain, replace, or operate:
538-11 (A) a boat basin or boat slip; or
538-12 (B) a structure in connection with the basin or
538-13 slip, including a dry dock, boat service station, wall, pier, or
538-14 wharf. (V.A.C.S. Art. 1187b, Sec. 1 (part).)
538-15 Sec. 1505.104. AUTHORITY TO BORROW MONEY. (a) In the
538-16 amount and under the terms that are agreed to by the municipality
538-17 and the lender, a municipality may borrow money for a project from:
538-18 (1) the United States;
538-19 (2) an agency of the United States authorized to make
538-20 a loan to a municipality; or
538-21 (3) any person, firm, or corporation.
538-22 (b) The loan shall be evidenced by obligations issued under
538-23 this subchapter if the project is financed under this subchapter.
538-24 (V.A.C.S. Art. 1187b, Sec. 7.)
538-25 Sec. 1505.105. SECURITY FOR PAYMENT OF OBLIGATIONS. (a) An
538-26 obligation issued under this subchapter, and interest on the
538-27 obligation, must be paid by an appropriation or pledge of all
539-1 revenue derived from:
539-2 (1) one or more projects;
539-3 (2) any tolls authorized under Section 1505.113 and
539-4 collected from the operation of an existing bridge or tunnel; or
539-5 (3) both the project and the tolls.
539-6 (b) Payment of the obligation may additionally be secured by
539-7 a mortgage on any project, including a toll bridge or tunnel or
539-8 reclaimed land.
539-9 (c) Any revenue or income derived from one project may be
539-10 pledged to the payment of an obligation issued to provide for a
539-11 different project. (V.A.C.S. Art. 1187b, Sec. 3 (part).)
539-12 Sec. 1505.106. OBLIGATIONS NOT PAYABLE FROM TAXES. (a) An
539-13 obligation issued under this subchapter:
539-14 (1) is not a debt of the municipality;
539-15 (2) may be a charge only against the revenue,
539-16 property, or improvement pledged for the payment of the obligation;
539-17 and
539-18 (3) may not be included in determining the power of
539-19 the municipality to issue bonds or lend its credit for any purpose
539-20 authorized by law.
539-21 (b) Each obligation issued under this subchapter must
539-22 contain the following provision: "The holder of this obligation is
539-23 not entitled to demand payment of this obligation from any money
539-24 raised by taxation." (V.A.C.S. Art. 1187b, Secs. 2, 6 (part).)
539-25 Sec. 1505.107. ELECTION. (a) A municipality may not issue
539-26 an obligation under this subchapter unless the issuance is
539-27 authorized by a majority vote of the qualified voters voting at an
540-1 election held for that purpose under Chapter 1251.
540-2 (b) On approval by the voters, the municipality shall issue
540-3 the approved obligations as soon as practicable. (V.A.C.S.
540-4 Art. 1187b, Sec. 4.)
540-5 Sec. 1505.108. MATURITY. An obligation issued under this
540-6 subchapter must mature not later than 30 years after its date.
540-7 (V.A.C.S. Art. 1187b, Sec. 5 (part).)
540-8 Sec. 1505.109. ACCOUNTS REQUIRED TO BE CREATED BY ORDINANCE.
540-9 An ordinance authorizing the issuance of obligations under this
540-10 subchapter must provide for:
540-11 (1) an operation and maintenance account; and
540-12 (2) an interest and sinking fund account. (V.A.C.S.
540-13 Art. 1187b, Sec. 13 (part).)
540-14 Sec. 1505.110. OPERATING EXPENSES AS FIRST LIEN. (a) The
540-15 reasonable costs of administering and operating and the reasonable
540-16 expense of maintaining the project are a first lien against the
540-17 revenue and income from the operation of the project, superior to
540-18 the lien of any indenture or deed of trust on the project.
540-19 (b) From the revenue and income of the project, the
540-20 municipality shall, monthly or more frequently if necessary:
540-21 (1) first deposit to the credit of the operation and
540-22 maintenance account an amount sufficient to pay the costs and
540-23 expense described in Subsection (a); and
540-24 (2) deposit to the credit of the interest and sinking
540-25 fund account an amount sufficient to pay when due the principal of
540-26 and interest on the obligation.
540-27 (c) Revenue or income from a project may not be used except
541-1 as provided by this section while an obligation related to the
541-2 project remains outstanding. (V.A.C.S. Art. 1187b, Secs. 12, 13
541-3 (part), 14 (part).)
541-4 Sec. 1505.111. EXECUTION OF INDENTURE OR DEED OF TRUST.
541-5 (a) Before an obligation issued under this subchapter is offered
541-6 for sale, the mayor and the municipal treasurer or finance
541-7 commissioner, if authorized by an ordinance adopted by the
541-8 governing body of the municipality, may execute an indenture or
541-9 deed of trust that:
541-10 (1) makes effective the mortgage lien on any property
541-11 pledged to secure payment of the principal of and interest on the
541-12 obligation; and
541-13 (2) names a bank or banking institution with trust
541-14 powers.
541-15 (b) The indenture or deed of trust may provide for a grant
541-16 to a purchaser, under sale or foreclosure, of a franchise to
541-17 operate the encumbered property for a term not to exceed 20 years
541-18 from the date of purchase, subject to Subsection (c) and to all
541-19 laws regulating the same then in force.
541-20 (c) The municipality may, at any five-year period within the
541-21 20-year term, repurchase the property designated in the franchise
541-22 under reasonable terms and at a reasonable price, as stated in the
541-23 encumbrance. This subsection does not apply to any land or
541-24 property in a reclaimed area that is acquired from the municipality
541-25 by an individual purchaser.
541-26 (d) The indenture or deed of trust shall be recorded in the
541-27 deed of trust and mortgage records of each county in which any of
542-1 the indentured property is located. (V.A.C.S. Art. 1187b, Sec.
542-2 11.)
542-3 Sec. 1505.112. AUTHORITY TO REMOVE OR DEMOLISH BRIDGE OR
542-4 TUNNEL. The governing body of a municipality may remove or
542-5 demolish any structure owned and operated by the municipality,
542-6 including a bridge or tunnel, if the removal or demolition is
542-7 necessary to complete a project. (V.A.C.S. Art. 1187b, Sec. 8.)
542-8 Sec. 1505.113. CONVERSION OF BRIDGE OR TUNNEL TO TOLL BRIDGE
542-9 OR TUNNEL. (a) The governing body of a municipality by ordinance
542-10 may convert a bridge or tunnel to a toll bridge or tunnel if:
542-11 (1) the bridge or tunnel is owned or operated by the
542-12 municipality; and
542-13 (2) the governing body finds that it is not necessary
542-14 or practicable to construct a toll bridge or tunnel under this
542-15 subchapter.
542-16 (b) The governing body, if authorized at the election
542-17 ordered by the governing body on the issuance of the obligations:
542-18 (1) may set and collect tolls for the use of the toll
542-19 bridge or tunnel in amounts determined by the governing body to be
542-20 reasonable and sufficient, when combined with other revenue and
542-21 income from a project, to pay the principal of and interest on
542-22 obligations issued under this subchapter as they mature; and
542-23 (2) shall deposit money received under Subdivision (1)
542-24 to the credit of the interest and sinking fund account and shall
542-25 use the money only to pay the principal of and interest on the
542-26 obligations. (V.A.C.S. Art. 1187b, Sec. 10.)
542-27 Sec. 1505.114. EMINENT DOMAIN. (a) A municipality may
543-1 exercise the power of eminent domain to acquire the fee simple
543-2 title to, an easement in, or a right-of-way over or through any
543-3 property, including water or land under water, that the governing
543-4 body of the municipality determines necessary to accomplish a
543-5 purpose provided by Section 1505.103 without regard to whether the
543-6 property is inside or outside the municipality.
543-7 (b) A municipality may not condemn property under Subsection
543-8 (a) if the property is used for cemetery purposes.
543-9 (c) A municipality shall pay adequate compensation to the
543-10 owner of property that is taken, damaged, or destroyed in the
543-11 accomplishment of a purpose provided by Section 1505.103.
543-12 (d) A municipality shall pay compensation and damages
543-13 adjudicated in a condemnation proceeding or damage to the property
543-14 of a person or corporation in the accomplishment of a purpose
543-15 provided by Section 1505.103 from the proceeds of obligations
543-16 issued under this subchapter.
543-17 (e) Chapter 21, Property Code, governs the procedure for the
543-18 exercise of the power of eminent domain under this section.
543-19 (V.A.C.S. Art. 1187b, Sec. 9.)
543-20 Sec. 1505.115. COMMISSIONERS OF NAVIGATION DISTRICT. (a) A
543-21 municipality may not construct, maintain, or operate a toll bridge
543-22 or tunnel over, across, or under an entrance channel to a deepwater
543-23 port operated by a navigation district without a permit issued by
543-24 the commissioners of the district. Plans and specifications for
543-25 the bridge or tunnel must be jointly approved by the commissioners
543-26 and the governing body of the municipality.
543-27 (b) If a toll bridge or tunnel over, across, or under the
544-1 entrance channel to the port is constructed, maintained, or
544-2 operated under this subchapter, the commissioners of the navigation
544-3 district:
544-4 (1) may prescribe reasonable rules for the operation
544-5 of the bridge or tunnel in aid of navigation;
544-6 (2) shall exercise direct control over the maintenance
544-7 and operation of the mechanical facilities of the bridge or tunnel
544-8 that provide clearance of the channel for vessels to enter or leave
544-9 the port; and
544-10 (3) may employ and direct all agencies in the
544-11 management and operation of those facilities.
544-12 (c) The municipality shall bear the cost of maintaining and
544-13 operating the facilities described by Subsection (b)(2).
544-14 (d) A municipality may not construct, maintain, or operate a
544-15 toll bridge over or across, or a tunnel under, an entrance channel
544-16 to a deepwater port operated by a navigation district except as
544-17 provided by this section. (V.A.C.S. Art. 1187b, Sec. 15.)
544-18 (Sections 1505.116-1505.150 reserved for expansion)
544-19 SUBCHAPTER D. OBLIGATIONS FOR FISH MARKETS BY CERTAIN
544-20 COASTAL MUNICIPALITIES
544-21 Sec. 1505.151. APPLICABILITY OF SUBCHAPTER. This subchapter
544-22 applies only to a municipality:
544-23 (1) that has a population of more than 1,000;
544-24 (2) that is located within five miles of the coast or
544-25 of any gulf, bay, or inlet of the coast; and
544-26 (3) in which commercial fishing and shrimping is an
544-27 established industry. (V.A.C.S. Art. 1187c, Sec. 1 (part).)
545-1 Sec. 1505.152. AUTHORITY TO ACQUIRE OR CONSTRUCT FISH
545-2 MARKET. (a) A municipality may:
545-3 (1) acquire or construct a municipal fish market to
545-4 encourage, develop, and standardize the fishing and shrimping
545-5 industry; and
545-6 (2) acquire any real property necessary for the site
545-7 of the fish market.
545-8 (b) The fish market must provide sanitary facilities and
545-9 equipment for cleaning, packing, shucking, canning, and cold
545-10 storage of shrimp, oysters, and other seafood. (V.A.C.S.
545-11 Art. 1187c, Sec. 1 (part).)
545-12 Sec. 1505.153. AUTHORITY TO ISSUE OBLIGATIONS. A
545-13 municipality may issue bonds or revenue notes to acquire or
545-14 construct a municipal fish market. (V.A.C.S. Art. 1187c, Sec. 1
545-15 (part).)
545-16 Sec. 1505.154. AUTHORITY TO ACCEPT LOANS AND GRANTS FROM
545-17 UNITED STATES. (a) A municipality may accept a loan or a grant
545-18 from the United States to acquire or construct a municipal fish
545-19 market, including the necessary real property on which it is
545-20 located, only if the acquisition or construction of the market is
545-21 approved:
545-22 (1) by the Texas Department of Health on a
545-23 determination that the market is conducive to the health of the
545-24 people of this state who consume food products from the coastal
545-25 waters of this state; and
545-26 (2) by the Parks and Wildlife Department on a
545-27 determination that:
546-1 (A) the market is feasible and of economic
546-2 importance to the fishing industry generally in the entire district
546-3 to be served by the market, as distinguished from the local or
546-4 civic benefits to be derived from the market by the municipality;
546-5 and
546-6 (B) the economic need for the market is not
546-7 adequately met by a similar existing facility accessible to the
546-8 district to be served.
546-9 (b) Any such market is subject to all applicable health and
546-10 sanitation rules adopted by the Texas Department of Health.
546-11 (V.A.C.S. Art. 1187c, Secs. 1 (part), 2.)
546-12 Sec. 1505.155. SECURITY FOR PAYMENT OF OBLIGATIONS. (a) A
546-13 municipality may secure the payment of an obligation issued under
546-14 this subchapter by:
546-15 (1) mortgaging the physical property acquired or
546-16 constructed or to be acquired or constructed and pledging the net
546-17 revenue derived from the property; or
546-18 (2) pledging the net revenue derived from the property
546-19 without a mortgage on the property.
546-20 (b) A municipality that mortgages the property may provide
546-21 in the encumbrance for a grant, to a purchaser under sale or
546-22 foreclosure, of a permit to operate the fish market, subject to all
546-23 laws then in force regulating the operation of such an industry.
546-24 (V.A.C.S. Art. 1187c, Sec. 1 (part).)
546-25 Sec. 1505.156. OBLIGATIONS NOT PAYABLE FROM TAXES. (a) An
546-26 obligation issued under this subchapter:
546-27 (1) is not a debt of the municipality;
547-1 (2) may be a charge only against the revenue or
547-2 property pledged for the payment of the obligation; and
547-3 (3) may not be included in determining the power of
547-4 the municipality to issue bonds for any purpose authorized by law.
547-5 (b) Each obligation issued under this subchapter must
547-6 contain the following provision: "The holder of this obligation is
547-7 not entitled to demand payment of this obligation from any money
547-8 raised by taxation." (V.A.C.S. Art. 1187c, Secs. 1 (part), 6.)
547-9 Sec. 1505.157. MATURITY. An obligation issued under this
547-10 subchapter must mature not later than 40 years after its date.
547-11 (V.A.C.S. Art. 1187c, Sec. 1 (part).)
547-12 Sec. 1505.158. OPERATING EXPENSES AS FIRST LIEN. The
547-13 expenses of operating and maintaining a fish market acquired or
547-14 constructed under this subchapter, including all salaries, labor,
547-15 materials, and repairs necessary to permit the market to provide
547-16 efficient service, are a first lien on the revenue from the
547-17 operation of the market. (V.A.C.S. Art. 1187c, Sec. 4 (part).)
547-18 Sec. 1505.159. USE OF REVENUE. Except as provided by
547-19 Section 1505.160, a municipality may only use the gross revenue of
547-20 a fish market acquired or constructed under this subchapter:
547-21 (1) to pay the expenses of operating and maintaining
547-22 the market;
547-23 (2) after payment of operating and maintenance
547-24 expenses, to pay the principal of and interest on any obligation
547-25 issued to acquire or construct the market; and
547-26 (3) after payment of operating and maintenance
547-27 expenses and debt service, to:
548-1 (A) redeem any obligation issued to acquire or
548-2 construct the market before maturity; or
548-3 (B) invest in any security specified in a
548-4 contract under which money for the acquisition or construction of
548-5 the market is provided to the municipality. (V.A.C.S. Art. 1187c,
548-6 Sec. 4 (part).)
548-7 Sec. 1505.160. SUBORDINATE OBLIGATIONS. (a) If the
548-8 governing body of a municipality considers it necessary to extend
548-9 or enlarge the fish market, the governing body may:
548-10 (1) issue subordinate bonds or notes; and
548-11 (2) pledge the revenue of the fish market to the
548-12 payment of those bonds or notes.
548-13 (b) A pledge of the revenue for subordinate bonds or notes
548-14 is inferior to any prior pledge.
548-15 (c) The municipality shall establish, deposit, and secure
548-16 the funds to facilitate the payment of the principal of and
548-17 interest on the bonds or notes. (V.A.C.S. Art. 1187c, Sec. 4
548-18 (part).)
548-19 Sec. 1505.161. LEASE AND SALE OF FACILITIES. Subject to any
548-20 prior covenant or agreement relating to an outstanding revenue bond
548-21 issued to acquire or construct a fish market under this subchapter,
548-22 the governing body of a municipality may:
548-23 (1) lease all or part of the facilities of the market
548-24 and property associated with the market for a period not longer
548-25 than 20 years to any person, firm, or corporation; and
548-26 (2) sell all or part of the facilities of the market
548-27 and property associated with the market to any person, firm, or
549-1 corporation. (V.A.C.S. Art. 1187c, Sec. 7 (part).)
549-2 (Sections 1505.162-1505.200 reserved for expansion)
549-3 SUBCHAPTER E. BONDS FOR HARBOR IMPROVEMENTS AND FACILITIES
549-4 IN COASTAL MUNICIPALITIES WITH POPULATION OF LESS THAN 12,000
549-5 Sec. 1505.201. APPLICABILITY OF SUBCHAPTER. This subchapter
549-6 applies only to a municipality that:
549-7 (1) has a population of less than 12,000; and
549-8 (2) is located on the Gulf of Mexico or a channel,
549-9 canal, bay, or inlet connected with that gulf. (V.A.C.S.
549-10 Art. 1187e, Secs. 1(a) (part), 6(b) (part).)
549-11 Sec. 1505.202. DEFINITIONS. In this subchapter:
549-12 (1) "Bond authorization" means an ordinance or
549-13 resolution authorizing the issuance of bonds.
549-14 (2) "Harbor improvement or facility" means a harbor,
549-15 port, or navigational facility described by Section 1505.203.
549-16 (New.)
549-17 Sec. 1505.203. AUTHORITY TO ISSUE REVENUE BONDS. (a) A
549-18 municipality may issue revenue bonds to construct, acquire, lease,
549-19 improve, enlarge, extend, repair, maintain, replace, develop,
549-20 operate, regulate, or encumber a harbor or port of the municipality
549-21 or a navigational facility that pertains or is an aid to the harbor
549-22 or port, including:
549-23 (1) land or fill;
549-24 (2) a boathouse or boat piling;
549-25 (3) a seawall, breakwater, or shore protection;
549-26 (4) a wharf, dock, or pier;
549-27 (5) a walk or way;
550-1 (6) a wall or bulkhead;
550-2 (7) a canal, channel, slip, pool, waterway, or turning
550-3 basin;
550-4 (8) a dry dock, service facility, floating plant,
550-5 loading device, lightering facility, bunkering facility, or towing
550-6 facility;
550-7 (9) a bridge, tube, underpass, tunnel, or ferry;
550-8 (10) equipment;
550-9 (11) a pavilion, building, warehouse, or structure;
550-10 (12) an aid to navigation; and
550-11 (13) any other facility, improvement, or aid incident
550-12 to or necessary or desirable in connection with the harbor or port.
550-13 (b) This subchapter does not authorize a municipality to
550-14 issue bonds that are payable from taxes. (V.A.C.S. Art. 1187e,
550-15 Secs. 1(a) (part), (b) (part), 6(a).)
550-16 Sec. 1505.204. AUTHORITY TO ACCEPT LOANS AND GRANTS. For a
550-17 purpose described by Section 1505.203, a municipality may accept a
550-18 loan or grant from any source, including:
550-19 (1) the United States, a state, or a county; and
550-20 (2) an agency of a state or county. (V.A.C.S.
550-21 Art. 1187e, Sec. 1(a) (part).)
550-22 Sec. 1505.205. LOCATION OF HARBOR IMPROVEMENT OR FACILITY.
550-23 A harbor improvement or facility financed by bonds or a loan or
550-24 grant authorized under this subchapter must be located inside
550-25 municipal boundaries. (V.A.C.S. Art. 1187e, Sec. 6(c).)
550-26 Sec. 1505.206. PLEDGE OF REVENUE. (a) In this section,
550-27 "net revenue" means the gross revenue derived from a harbor
551-1 improvement or facility less the amount necessary to pay the cost
551-2 of maintaining and operating the harbor improvement or facility.
551-3 (b) A bond issued under this subchapter is payable from
551-4 revenue pledged by the governing body of the municipality to the
551-5 payment of the bond.
551-6 (c) To secure payment of principal of and interest on bonds
551-7 issued under this subchapter, the governing body of the
551-8 municipality may pledge:
551-9 (1) the gross or net revenue of:
551-10 (A) a harbor improvement or facility to be
551-11 financed by the bonds; or
551-12 (B) a harbor improvement or facility in
551-13 existence before the issuance of the bonds, if that revenue may be
551-14 pledged;
551-15 (2) unless the bond authorization specifies a
551-16 different amount, the entire amount of revenue due the municipality
551-17 under a contract in existence before the issuance of the bonds or
551-18 to be entered into after the issuance, if that revenue may be
551-19 pledged; or
551-20 (3) any other revenue specified by the bond
551-21 authorization that may be pledged. (V.A.C.S. Art. 1187e, Secs.
551-22 1(b) (part), 2(b) (part).)
551-23 Sec. 1505.207. GRANT OF FRANCHISE. As additional security
551-24 for the encumbrance, a municipality that encumbers a harbor
551-25 improvement or facility under Section 1505.203 may provide in the
551-26 encumbrance for a grant, to a purchaser under sale or foreclosure,
551-27 of a franchise to operate the harbor improvement or facility,
552-1 including any improvement, for a term not to exceed 30 years from
552-2 the date of purchase, subject to all laws regulating the same then
552-3 in force. (V.A.C.S. Art. 1187e, Sec. 1(a) (part).)
552-4 Sec. 1505.208. BONDS NOT PAYABLE FROM TAXES. (a) A bond
552-5 issued under this subchapter:
552-6 (1) is not a debt of the municipality; and
552-7 (2) may be a charge only against the property,
552-8 facilities, and contracts authorized by the bond authorization.
552-9 (b) Each bond issued under this subchapter must state on its
552-10 face the following provision: "The holder of this obligation is
552-11 not entitled to demand payment of this obligation from any money
552-12 raised by taxation." (V.A.C.S. Art. 1187e, Sec. 2(c) (part).)
552-13 Sec. 1505.209. ELECTION. (a) A municipality may not issue
552-14 bonds under this subchapter unless the issuance is authorized by a
552-15 majority of the qualified voters voting at an election held for
552-16 that purpose under Chapter 1251.
552-17 (b) The municipality shall hold the election in the manner
552-18 provided for the issuance of other bonds of the municipality.
552-19 (c) This section does not apply to refunding bonds.
552-20 (V.A.C.S. Art. 1187e, Secs. 1(b) (part), (c) (part), 3.)
552-21 Sec. 1505.210. ADDITIONAL BONDS. The bond authorization may
552-22 reserve the right to issue additional bonds on a parity with, or
552-23 subordinate to, the bond being issued, subject to the conditions
552-24 prescribed by the bond authorization. (V.A.C.S. Art. 1187e, Sec.
552-25 2(b) (part).)
552-26 Sec. 1505.211. TRANSFER OF PLEDGED REVENUE. (a) A
552-27 municipality may, in the bond authorization, transfer pledged
553-1 revenue from the harbor improvement or facility to the general fund
553-2 of the municipality.
553-3 (b) The transferred revenue:
553-4 (1) must be in the amount authorized in the bond
553-5 authorization; and
553-6 (2) to the extent authorized in the bond
553-7 authorization, may be used for general or special purposes.
553-8 (V.A.C.S. Art. 1187e, Sec. 2(b) (part).)
553-9 Sec. 1505.212. RATES. The governing body of the
553-10 municipality shall set the rates for municipal charges, rents, and
553-11 leases and for services rendered by the municipality in connection
553-12 with a harbor improvement or facility, the revenue of which is
553-13 pledged, in an amount sufficient to:
553-14 (1) pay the expense of operating and maintaining the
553-15 improvement or facility;
553-16 (2) pay the interest on the bond as it accrues;
553-17 (3) pay the principal of the bond as it matures; and
553-18 (4) maintain the reserve and other funds as provided
553-19 in the bond authorization, unless otherwise specifically provided
553-20 for in the bond authorization. (V.A.C.S. Art. 1187e, Sec. 2(c)
553-21 (part).)
553-22 Sec. 1505.213. APPOINTMENT OF RECEIVER. (a) On default or
553-23 threatened default in the payment of principal of or interest on an
553-24 issue of bonds under this subchapter, a court may, on petition of
553-25 the holders of 25 percent of the outstanding bonds, appoint a
553-26 receiver with authority to:
553-27 (1) collect and receive the income from a harbor
554-1 improvement or facility or a contract the revenue of which is
554-2 pledged;
554-3 (2) employ an agent or employee;
554-4 (3) take charge of money on hand; and
554-5 (4) manage without consent or hindrance by the
554-6 governing body of the municipality the proprietary affairs of the
554-7 harbor improvement or facility or the contract the revenue of which
554-8 is pledged.
554-9 (b) The court may also:
554-10 (1) authorize the receiver to lease the harbor
554-11 improvement or facility the revenue of which is pledged and renew
554-12 the contract with the approval of the court; and
554-13 (2) vest the receiver with any other power or duty the
554-14 court finds necessary for the protection of the bondholders.
554-15 (V.A.C.S. Art. 1187e, Sec. 2(f).)
554-16 Sec. 1505.214. EXEMPTION FROM ASSESSMENT OR TAXATION. (a)
554-17 A municipality is not required to pay any assessment on a harbor
554-18 improvement or facility.
554-19 (b) A bond issued under this subchapter, the transfer of the
554-20 bond, and the income from the bond, including any profit made from
554-21 the sale of the bond, are exempt from taxation by this state or a
554-22 political subdivision of this state. (V.A.C.S. Art. 1187e, Sec. 7
554-23 (part).)
554-24 Sec. 1505.215. AUTHORITY TO ISSUE REFUNDING BONDS. A
554-25 municipality by resolution may issue refunding bonds to refund
554-26 outstanding bonds, and the interest on those bonds, issued by the
554-27 municipality under this subchapter. (V.A.C.S. Art. 1187e, Sec.
555-1 1(c) (part).)
555-2 Sec. 1505.216. TERMS OF ISSUANCE OF REFUNDING BONDS.
555-3 (a) Refunding bonds may:
555-4 (1) be issued under this subchapter to refund bonds
555-5 of:
555-6 (A) a single issue or two or more consecutive
555-7 issues; or
555-8 (B) a single series or two or more consecutive
555-9 series;
555-10 (2) combine the pledges related to bonds to be
555-11 refunded to secure the refunding bonds; or
555-12 (3) be secured by a pledge of other or additional
555-13 revenue.
555-14 (b) Refunding bonds issued under this subchapter have the
555-15 same priority of lien on the revenue pledged to their payment as is
555-16 pledged to the bonds to be refunded.
555-17 (c) If two or more consecutive series or issues of bonds are
555-18 refunded in a single issue of refunding bonds, the lien on all the
555-19 refunding bonds is equal if all bonds of the several series or
555-20 issues of bonds to be refunded are surrendered in exchange for the
555-21 refunding bonds.
555-22 (d) Refunding bonds issued under this subchapter may not
555-23 have a priority of lien greater than the highest priority of lien
555-24 of a series or issue of bonds to be refunded. (V.A.C.S.
555-25 Art. 1187e, Sec. 1(c) (part).)
555-26 Sec. 1505.217. REGISTRATION OF REFUNDING BONDS BY
555-27 COMPTROLLER. (a) The comptroller shall register the refunding
556-1 bonds on the surrender and cancellation of the bonds to be
556-2 refunded.
556-3 (b) In lieu of issuing bonds to be registered on the
556-4 surrender and cancellation of the bonds to be refunded, the
556-5 municipality, in the resolution authorizing the issuance of the
556-6 refunding bonds, may provide for the sale of the refunding bonds
556-7 and the deposit of the proceeds in the bank where the bonds to be
556-8 refunded are payable. In that case, the refunding bonds may be
556-9 issued in an amount sufficient to pay the interest on the bonds to
556-10 be refunded to their option or maturity date, and the comptroller
556-11 shall register the refunding bonds without the surrender and
556-12 cancellation of the bonds to be refunded. (V.A.C.S. Art. 1187e,
556-13 Sec. 1(c) (part).)
556-14 (Sections 1505.218-1505.250 reserved for expansion)
556-15 SUBCHAPTER F. BONDS FOR HARBOR, WHARF, AND DOCK FACILITIES IN
556-16 COASTAL MUNICIPALITIES WITH POPULATION OF 5,000 OR LESS
556-17 Sec. 1505.251. APPLICABILITY OF SUBCHAPTER. This subchapter
556-18 applies only to a general-law municipality that:
556-19 (1) has a population of 5,000 or less; and
556-20 (2) is located on the Gulf of Mexico or a channel,
556-21 canal, bay, or inlet connected with that gulf. (V.A.C.S.
556-22 Art. 835l, Sec. 1 (part).)
556-23 Sec. 1505.252. AUTHORITY FOR HARBOR, WHARF, AND DOCK
556-24 FACILITIES. A municipality may purchase, condemn, construct, own,
556-25 maintain, improve, repair, operate, or lease:
556-26 (1) a wharf, pier, pavilion, dock, harbor, or boat
556-27 basin; and
557-1 (2) another facility associated with a facility listed
557-2 in Subdivision (1) that the municipality considers advisable,
557-3 including a ferry, marina, elevated platform, parking facility,
557-4 restaurant, hotel, motel, club, or other commercial establishment
557-5 or municipal building. (V.A.C.S. Art. 835l, Sec. 1 (part).)
557-6 Sec. 1505.253. AUTHORITY TO ISSUE BONDS. A municipality
557-7 may:
557-8 (1) issue bonds for a purpose described by Section
557-9 1505.252 and provide for the payment of the principal of and
557-10 interest on the bonds from the income of the facility, including
557-11 income from leasing the facility, less the reasonable cost of the
557-12 operation and maintenance of the facility; or
557-13 (2) issue bonds for that purpose in the manner
557-14 provided for the issuance of other municipal bonds payable from an
557-15 ad valorem tax imposed on taxable property in the municipality.
557-16 (V.A.C.S. Art. 835l, Sec. 2.)
557-17 Sec. 1505.254. ELECTION. (a) The governing body of a
557-18 municipality may not issue bonds under this subchapter that are
557-19 payable from ad valorem taxes unless authorized by a majority of
557-20 the qualified voters voting at an election.
557-21 (b) The governing body of a municipality may issue bonds
557-22 under this subchapter that are payable from the income of a
557-23 facility without notice or an election in connection with the
557-24 issuance of the bonds. (V.A.C.S. Art. 835l, Sec. 3 (part).)
557-25 CHAPTER 1506. BONDS FOR MUNICIPAL PARKING AND TRANSPORTATION
557-26 FACILITIES
557-27 SUBCHAPTER A. REVENUE BONDS FOR PARKING FACILITIES IN
558-1 HOME-RULE MUNICIPALITIES WITH POPULATION OF LESS THAN 60,000
558-2 Sec. 1506.001. APPLICABILITY OF SUBCHAPTER
558-3 Sec. 1506.002. AUTHORITY TO ISSUE REVENUE BONDS
558-4 Sec. 1506.003. PLEDGE OF REVENUE
558-5 Sec. 1506.004. BONDS NOT PAYABLE FROM TAXES
558-6 Sec. 1506.005. ELECTION
558-7 Sec. 1506.006. MATURITY
558-8 Sec. 1506.007. SIGNATURES
558-9 Sec. 1506.008. EXEMPTION FROM TAXATION
558-10 Sec. 1506.009. PERSONNEL; OPERATION AND MAINTENANCE
558-11 EXPENSES
558-12 Sec. 1506.010. FEES FOR SERVICES; RESERVES
558-13 Sec. 1506.011. ADDITIONAL BONDS
558-14 (Sections 1506.012-1506.050 reserved for expansion)
558-15 SUBCHAPTER B. BONDS FOR PARKING FACILITIES IN HOME-RULE
558-16 MUNICIPALITIES
558-17 Sec. 1506.051. APPLICABILITY OF SUBCHAPTER
558-18 Sec. 1506.052. AUTHORITY FOR PARKING FACILITIES
558-19 Sec. 1506.053. AUTHORITY TO ESTABLISH IMPROVEMENT DISTRICTS
558-20 AND ISSUE BONDS
558-21 Sec. 1506.054. ELECTION
558-22 Sec. 1506.055. FORM OF BOND
558-23 Sec. 1506.056. SALE OF BONDS
558-24 Sec. 1506.057. INTEREST AND SINKING FUND TAX
558-25 Sec. 1506.058. PROCEEDS OF TAX
558-26 Sec. 1506.059. INVESTMENT OF SINKING FUND
558-27 Sec. 1506.060. EMINENT DOMAIN
559-1 Sec. 1506.061. RELOCATION OR ALTERATION EXPENSE
559-2 (Sections 1506.062-1506.100 reserved for expansion)
559-3 SUBCHAPTER C. REVENUE BONDS FOR PARKING IMPROVEMENTS
559-4 IN CERTAIN COASTAL MUNICIPALITIES
559-5 Sec. 1506.101. APPLICABILITY OF SUBCHAPTER
559-6 Sec. 1506.102. DEFINITION
559-7 Sec. 1506.103. AUTHORITY FOR PARKING IMPROVEMENTS
559-8 Sec. 1506.104. AUTHORITY TO ISSUE REVENUE BONDS
559-9 Sec. 1506.105. PLEDGE OF REVENUE
559-10 Sec. 1506.106. LIEN ON PARKING IMPROVEMENT
559-11 Sec. 1506.107. BONDS NOT PAYABLE FROM TAXES
559-12 Sec. 1506.108. CONTENTS OF ORDINANCE AUTHORIZING BONDS
559-13 Sec. 1506.109. ADOPTION AND EXECUTION OF DOCUMENTS
559-14 Sec. 1506.110. MATURITY
559-15 Sec. 1506.111. SIGNATURES
559-16 Sec. 1506.112. SALE OF BONDS
559-17 Sec. 1506.113. INVESTMENT OF BOND PROCEEDS AND FUNDS
559-18 Sec. 1506.114. CHARGES FOR SERVICES
559-19 Sec. 1506.115. REFUNDING BONDS
559-20 Sec. 1506.116. CONFLICT WITH MUNICIPAL CHARTER
559-21 (Sections 1506.117-1506.150 reserved for expansion)
559-22 SUBCHAPTER D. REVENUE BONDS FOR PARKING AND TRANSPORTATION
559-23 FACILITIES IN MUNICIPALITIES WITH POPULATION OF MORE THAN 650,000
559-24 Sec. 1506.151. APPLICABILITY OF SUBCHAPTER
559-25 Sec. 1506.152. AUTHORITY FOR PARKING AND TRANSPORTATION
559-26 FACILITIES
559-27 Sec. 1506.153. CONTRACTS AND LEASES; JOINT DEVELOPMENT
560-1 Sec. 1506.154. AUTHORITY TO ISSUE REVENUE BONDS
560-2 Sec. 1506.155. PLEDGE OF REVENUE
560-3 Sec. 1506.156. ADDITIONAL SECURITY
560-4 Sec. 1506.157. MATURITY
560-5 Sec. 1506.158. ADDITIONAL BONDS
560-6 Sec. 1506.159. SALE OF BONDS
560-7 Sec. 1506.160. REVIEW AND APPROVAL OF CONTRACTS RELATING TO
560-8 BONDS
560-9 Sec. 1506.161. CHARGES
560-10 Sec. 1506.162. REFUNDING BONDS
560-11 Sec. 1506.163. PUBLIC PURPOSE
560-12 Sec. 1506.164. CONFLICT WITH OTHER LAW
560-13 CHAPTER 1506. BONDS FOR MUNICIPAL PARKING AND TRANSPORTATION
560-14 FACILITIES
560-15 SUBCHAPTER A. REVENUE BONDS FOR PARKING FACILITIES IN
560-16 HOME-RULE MUNICIPALITIES WITH POPULATION OF LESS THAN 60,000
560-17 Sec. 1506.001. APPLICABILITY OF SUBCHAPTER. This subchapter
560-18 applies only to a home-rule municipality that:
560-19 (1) has a population of less than 60,000; and
560-20 (2) on January 1, 1949, owned and operated a public
560-21 parking lot. (V.A.C.S. Art. 835h, Sec. 1 (part).)
560-22 Sec. 1506.002. AUTHORITY TO ISSUE REVENUE BONDS. The
560-23 governing body of a municipality by ordinance may issue revenue
560-24 bonds to construct a building or other permanent improvement on a
560-25 parking lot owned and operated by the municipality on January 1,
560-26 1949, for public parking or storage of motor vehicles. (V.A.C.S.
560-27 Art. 835h, Sec. 1 (part).)
561-1 Sec. 1506.003. PLEDGE OF REVENUE. (a) In this section,
561-2 "net revenue" means gross revenue minus all operation and
561-3 maintenance expenses.
561-4 (b) Bonds issued under this subchapter may be secured only
561-5 by a pledge of and be payable from the net revenue from the
561-6 building or other improvement for which the bonds are issued and
561-7 the parking lot on which the building or improvement is located.
561-8 (V.A.C.S. Art. 835h, Sec. 1 (part).)
561-9 Sec. 1506.004. BONDS NOT PAYABLE FROM TAXES. (a) A bond
561-10 issued under this subchapter:
561-11 (1) is not a debt of the municipality;
561-12 (2) may be a charge only on the revenue pledged for
561-13 the payment of the bond; and
561-14 (3) may not be included in determining the power of
561-15 the municipality to issue bonds payable from taxation.
561-16 (b) A bond issued under this subchapter must contain on its
561-17 face the following provision: "The holder of this obligation is
561-18 not entitled to demand payment of this obligation out of any money
561-19 raised by taxation." (V.A.C.S. Art. 835h, Sec. 1 (part).)
561-20 Sec. 1506.005. ELECTION. A municipality may issue bonds
561-21 under this subchapter without an election, but the governing body
561-22 of the municipality may hold an election in compliance with Chapter
561-23 1251 to determine whether a majority of the qualified voters of the
561-24 municipality voting in the election approve the issuance of the
561-25 bonds. (V.A.C.S. Art. 835h, Sec. 2 (part).)
561-26 Sec. 1506.006. MATURITY. A bond issued under this
561-27 subchapter must:
562-1 (1) be payable serially; and
562-2 (2) mature not later than 40 years after its date.
562-3 (V.A.C.S. Art. 835h, Sec. 2 (part).)
562-4 Sec. 1506.007. SIGNATURES. A bond issued under this
562-5 subchapter must be signed by the mayor of the municipality and
562-6 countersigned by the secretary of the municipality. (V.A.C.S.
562-7 Art. 835h, Sec. 2 (part).)
562-8 Sec. 1506.008. EXEMPTION FROM TAXATION. A bond issued under
562-9 this subchapter is exempt from taxation by this state or by a
562-10 municipal corporation or any other political subdivision of this
562-11 state. (V.A.C.S. Art. 835h, Sec. 5.)
562-12 Sec. 1506.009. PERSONNEL; OPERATION AND MAINTENANCE
562-13 EXPENSES. A municipality may employ personnel necessary to operate
562-14 a building or other improvement financed under this subchapter.
562-15 The costs of operation and maintenance of the building or other
562-16 improvement and the parking lot on which the building or other
562-17 improvement is located are a first lien against the income from the
562-18 operation of the facility. (V.A.C.S. Art. 835h, Sec. 3 (part).)
562-19 Sec. 1506.010. FEES FOR SERVICES; RESERVES. (a) A
562-20 municipality may establish and enforce fees for the use of a
562-21 building or other improvement financed under this subchapter and
562-22 the parking lot on which the building or other improvement is
562-23 located.
562-24 (b) While the principal of or interest on a bond issued
562-25 under this subchapter is outstanding, the municipality shall charge
562-26 the fees in amounts at least sufficient to:
562-27 (1) pay all operating and maintenance expenses in
563-1 connection with the building or other improvement and the parking
563-2 lot;
563-3 (2) pay the principal of and interest on the
563-4 outstanding bonds as the principal matures and as the interest
563-5 accrues; and
563-6 (3) establish and maintain any reserves prescribed in
563-7 the ordinance authorizing the issuance of the bonds.
563-8 (c) Fees charged under this section must be equal and
563-9 uniform within classes defined by the governing body of the
563-10 municipality. (V.A.C.S. Art. 835h, Sec. 3 (part).)
563-11 Sec. 1506.011. ADDITIONAL BONDS. While any bonds issued
563-12 under this subchapter are outstanding, the municipality may not
563-13 issue additional bonds of equal dignity against the pledged
563-14 revenue, except to the extent and in the manner expressly permitted
563-15 in the ordinance authorizing the issuance of the outstanding bonds.
563-16 (V.A.C.S. Art. 835h, Sec. 4.)
563-17 (Sections 1506.012-1506.050 reserved for expansion)
563-18 SUBCHAPTER B. BONDS FOR PARKING FACILITIES IN HOME-RULE
563-19 MUNICIPALITIES
563-20 Sec. 1506.051. APPLICABILITY OF SUBCHAPTER. This subchapter
563-21 applies only to a home-rule municipality. (V.A.C.S. Art. 1175e,
563-22 Sec. 1 (part).)
563-23 Sec. 1506.052. AUTHORITY FOR PARKING FACILITIES. (a) A
563-24 municipality may establish, acquire, lease as lessor or lessee,
563-25 construct, improve, enlarge, equip, repair, operate, or maintain a
563-26 structure, parking area, parking garage, or facility for off-street
563-27 parking or storage of motor vehicles or other conveyances.
564-1 (b) The municipality may:
564-2 (1) regulate the use of a facility authorized by
564-3 Subsection (a); and
564-4 (2) establish charges for use of the facility.
564-5 (V.A.C.S. Art. 1175e, Secs. 1 (part), 2 (part).)
564-6 Sec. 1506.053. AUTHORITY TO ESTABLISH IMPROVEMENT DISTRICTS
564-7 AND ISSUE BONDS. The governing body of a municipality may:
564-8 (1) designate by clearly defined boundaries one or
564-9 more improvement districts within the municipality; and
564-10 (2) borrow money on the credit of the municipality by
564-11 issuing bonds as provided by this subchapter to acquire or
564-12 construct a facility authorized by Section 1506.052. (V.A.C.S.
564-13 Art. 1175e, Sec. 3 (part).)
564-14 Sec. 1506.054. ELECTION. (a) A municipality may not issue
564-15 bonds to acquire or construct a facility in an improvement district
564-16 under this subchapter unless a majority of the qualified voters of
564-17 the improvement district voting at an election held for that
564-18 purpose approve the issuance of the bonds.
564-19 (b) Each proposition to issue bonds in an improvement
564-20 district under this subchapter must distinctly specify the purpose
564-21 for which the bonds are to be issued and the facility to be
564-22 acquired or constructed. (V.A.C.S. Art. 1175e, Sec. 3 (part).)
564-23 Sec. 1506.055. FORM OF BOND. A bond issued under this
564-24 subchapter must specify the purpose for which it is issued.
564-25 (V.A.C.S. Art. 1175e, Sec. 3 (part).)
564-26 Sec. 1506.056. SALE OF BONDS. A municipality may sell bonds
564-27 issued under this subchapter in lots as the governing body of the
565-1 municipality directs. (V.A.C.S. Art. 1175e, Sec. 3 (part).)
565-2 Sec. 1506.057. INTEREST AND SINKING FUND TAX. (a) A
565-3 municipality may not issue bonds under this subchapter creating a
565-4 debt against the municipality or an improvement district unless the
565-5 municipality provides for the imposition of an annual ad valorem
565-6 tax on property in the improvement district at a rate sufficient
565-7 to:
565-8 (1) pay the interest on the bonds; and
565-9 (2) create a sinking fund of at least two percent on
565-10 the bonds.
565-11 (b) The rate of the tax may not exceed 50 cents on the $100
565-12 valuation of property taxable by the municipality.
565-13 (c) The tax is in addition to other taxes imposed by the
565-14 municipality or authorized to be imposed by the municipal charter.
565-15 (V.A.C.S. Art. 1175e, Sec. 3 (part).)
565-16 Sec. 1506.058. PROCEEDS OF TAX. The municipal treasurer
565-17 shall keep money from the tax imposed under Section 1506.057 in a
565-18 fund separate from other funds. (V.A.C.S. Art. 1175e, Sec. 3
565-19 (part).)
565-20 Sec. 1506.059. INVESTMENT OF SINKING FUND. The sinking fund
565-21 for bonds issued under this subchapter may be invested in
565-22 securities that are permitted by law for the investment of sinking
565-23 funds for other municipal bonds. (V.A.C.S. Art. 1175e, Sec. 3
565-24 (part).)
565-25 Sec. 1506.060. EMINENT DOMAIN. A municipality may exercise
565-26 the power of eminent domain to acquire the fee simple title to
565-27 property to provide a site for a facility authorized by Section
566-1 1506.052. (V.A.C.S. Art. 1175e, Sec. 2 (part).)
566-2 Sec. 1506.061. RELOCATION OR ALTERATION EXPENSE. If a
566-3 municipality, in the exercise of a power under this subchapter,
566-4 including the power of relocation, makes necessary the relocation
566-5 or rerouting of, or alteration of the construction of, a highway,
566-6 railroad, electric transmission line, telegraph or telephone
566-7 property or facility, or pipeline, the relocation or rerouting or
566-8 alteration of construction must be accomplished at the sole expense
566-9 of the municipality. In this section, "sole expense" means the
566-10 actual cost of the relocation or rerouting or alteration of
566-11 construction to provide comparable replacement without enhancement
566-12 of the facility, after deduction of the net salvage value derived
566-13 from the old facility. (V.A.C.S. Art. 1175e, Sec. 2 (part).)
566-14 (Sections 1506.062-1506.100 reserved for expansion)
566-15 SUBCHAPTER C. REVENUE BONDS FOR PARKING IMPROVEMENTS
566-16 IN CERTAIN COASTAL MUNICIPALITIES
566-17 Sec. 1506.101. APPLICABILITY OF SUBCHAPTER. This subchapter
566-18 applies only to a municipality that:
566-19 (1) is located on the Gulf of Mexico or on a channel,
566-20 canal, bay, or inlet connected to the Gulf of Mexico; and
566-21 (2) has a population of:
566-22 (A) more than 60,000 and less than 75,000; or
566-23 (B) more than 110,000 and less than 120,000.
566-24 (V.A.C.S. Art. 1269j-4.3, Sec. 1.)
566-25 Sec. 1506.102. DEFINITION. In this subchapter, "parking
566-26 improvement" means a permanent public improvement consisting of a
566-27 structure, parking area, or facility for off-street parking or
567-1 storage of motor vehicles or other conveyances. (V.A.C.S.
567-2 Art. 1269j-4.3, Sec. 2 (part).)
567-3 Sec. 1506.103. AUTHORITY FOR PARKING IMPROVEMENTS. A
567-4 municipality may establish, acquire, lease as lessor or lessee,
567-5 construct, improve, enlarge, equip, repair, operate, or maintain a
567-6 parking improvement. (V.A.C.S. Art. 1269j-4.3, Sec. 2 (part).)
567-7 Sec. 1506.104. AUTHORITY TO ISSUE REVENUE BONDS. The
567-8 governing body of a municipality by ordinance may issue revenue
567-9 bonds to provide all or part of the money to establish, acquire,
567-10 lease, construct, improve, enlarge, equip, or repair a parking
567-11 improvement. (V.A.C.S. Art. 1269j-4.3, Secs. 3(a), (b) (part).)
567-12 Sec. 1506.105. PLEDGE OF REVENUE. (a) Bonds issued under
567-13 this subchapter must be secured by a pledge of and be payable from
567-14 all or a designated part of the revenue from the parking
567-15 improvement for which the bonds are issued, as provided in the
567-16 ordinance authorizing the issuance of the bonds.
567-17 (b) The pledge securing the bonds is inferior to any
567-18 previous pledge of the revenue for the payment of revenue bonds or
567-19 revenue refunding bonds that are outstanding. (V.A.C.S.
567-20 Art. 1269j-4.3, Sec. 3(b) (part).)
567-21 Sec. 1506.106. LIEN ON PARKING IMPROVEMENT. Subject to any
567-22 limitation contained in any previous pledge, the governing body of
567-23 a municipality may, in addition to pledging the revenue from a
567-24 parking improvement, give a lien on all or part of the physical
567-25 property acquired with the proceeds from the sale of bonds issued
567-26 under this subchapter. (V.A.C.S. Art. 1269j-4.3, Sec. 3(b)
567-27 (part).)
568-1 Sec. 1506.107. BONDS NOT PAYABLE FROM TAXES. The owner or
568-2 holder of a bond issued under this subchapter is not entitled to
568-3 demand payment of the principal of or interest on the bond from
568-4 money raised by taxation. (V.A.C.S. Art. 1269j-4.3, Sec. 4.)
568-5 Sec. 1506.108. CONTENTS OF ORDINANCE AUTHORIZING BONDS. (a)
568-6 The ordinance authorizing the issuance of bonds under this
568-7 subchapter may provide for the flow of funds and the establishment
568-8 and maintenance of an interest and sinking fund, reserve fund, or
568-9 other fund.
568-10 (b) The ordinance may:
568-11 (1) prohibit the issuance of additional bonds or other
568-12 obligations payable from the pledged revenue; or
568-13 (2) reserve the right to issue additional bonds to be
568-14 secured by a pledge of and payable from the revenue on a parity
568-15 with, or subordinate to, the lien and pledge in support of the
568-16 bonds being issued, subject to the conditions prescribed by the
568-17 ordinance.
568-18 (c) The ordinance may contain any other provision or
568-19 covenant, including a covenant with respect to the bonds, the
568-20 pledged revenue, or the operation and maintenance of the parking
568-21 improvement the revenue of which is pledged. The ordinance may
568-22 provide for the operation or lease, as lessor or lessee, of all or
568-23 part of the parking improvement and the use or pledge of money
568-24 derived from operation contracts and leases. (V.A.C.S.
568-25 Art. 1269j-4.3, Sec. 5 (part).)
568-26 Sec. 1506.109. ADOPTION AND EXECUTION OF DOCUMENTS. The
568-27 municipality may adopt and have executed any other proceeding or
569-1 instrument necessary or convenient to the issuance of bonds under
569-2 this subchapter. (V.A.C.S. Art. 1269j-4.3, Sec. 5 (part).)
569-3 Sec. 1506.110. MATURITY. A bond issued under this
569-4 subchapter must mature not later than 40 years after its date.
569-5 (V.A.C.S. Art. 1269j-4.3, Sec. 7 (part).)
569-6 Sec. 1506.111. SIGNATURES. A bond issued under this
569-7 subchapter must be signed by the mayor of the municipality and
569-8 countersigned by the secretary or clerk of the municipality.
569-9 (V.A.C.S. Art. 1269j-4.3, Sec. 7 (part).)
569-10 Sec. 1506.112. SALE OF BONDS. A municipality may sell bonds
569-11 issued under this subchapter under the terms determined by the
569-12 governing body of the municipality to be the most advantageous and
569-13 reasonably obtainable. (V.A.C.S. Art. 1269j-4.3, Sec. 7 (part).)
569-14 Sec. 1506.113. INVESTMENT OF BOND PROCEEDS AND FUNDS. (a)
569-15 The bond proceeds, until they are needed to implement the purpose
569-16 for which the bonds were issued, may be invested in direct
569-17 obligations of the United States, placed on time deposit, or both.
569-18 (b) Money in an interest and sinking fund, reserve fund, or
569-19 any other fund established or provided for in the bond ordinance
569-20 may be invested in the manner and in the securities as provided in
569-21 the bond ordinance. (V.A.C.S. Art. 1269j-4.3, Sec. 6 (part).)
569-22 Sec. 1506.114. CHARGES FOR SERVICES. The governing body of
569-23 a municipality shall impose and collect charges for services
569-24 provided in connection with a parking improvement the revenue of
569-25 which is pledged to secure bonds issued under this subchapter in
569-26 amounts at least sufficient to comply with each covenant or
569-27 provision in the ordinance authorizing the issuance of the bonds.
570-1 (V.A.C.S. Art. 1269j-4.3, Sec. 3(c).)
570-2 Sec. 1506.115. REFUNDING BONDS. (a) The governing body of
570-3 a municipality by ordinance may issue revenue refunding bonds to
570-4 refund bonds, including revenue refunding bonds, issued under this
570-5 subchapter.
570-6 (b) Refunding bonds issued under this section must be
570-7 executed and mature as provided by this subchapter for original
570-8 bonds.
570-9 (c) The comptroller shall register refunding bonds on
570-10 surrender and cancellation of the bonds to be refunded.
570-11 (d) The comptroller shall register refunding bonds without
570-12 the surrender and cancellation of the bonds to be refunded if the
570-13 ordinance authorizing the issuance of the refunding bonds requires
570-14 the obligation to be sold and the proceeds from the sale to be
570-15 deposited in a place where the bonds to be refunded are payable.
570-16 (e) Refunding bonds to which Subsection (d) applies may be
570-17 issued in an amount sufficient to pay:
570-18 (1) the principal of the bonds to be refunded; and
570-19 (2) the interest on the bonds to be refunded to the
570-20 option or maturity date of the bonds. (V.A.C.S. Art. 1269j-4.3,
570-21 Sec. 8 (part).)
570-22 Sec. 1506.116. CONFLICT WITH MUNICIPAL CHARTER. To the
570-23 extent of a conflict between this subchapter and a municipal
570-24 charter, this subchapter controls. (V.A.C.S. Art. 1269j-4.3, Sec.
570-25 10 (part).)
570-26 (Sections 1506.117-1506.150 reserved for expansion)
570-27 SUBCHAPTER D. REVENUE BONDS FOR PARKING AND TRANSPORTATION
571-1 FACILITIES IN MUNICIPALITIES WITH POPULATION OF MORE THAN 650,000
571-2 Sec. 1506.151. APPLICABILITY OF SUBCHAPTER. This subchapter
571-3 applies only to a municipality with a population of more than
571-4 650,000. (V.A.C.S. Art. 1269j-4.8, Sec. 1.)
571-5 Sec. 1506.152. AUTHORITY FOR PARKING AND TRANSPORTATION
571-6 FACILITIES. (a) A municipality may acquire, lease as lessor or
571-7 lessee, construct, improve, enlarge, equip, and operate:
571-8 (1) an off-street parking facility; or
571-9 (2) a terminal or station and related properties and
571-10 facilities for use by:
571-11 (A) passengers, commuters, travelers, shippers,
571-12 and other members of the public; and
571-13 (B) companies or individuals engaged in the
571-14 business of transporting the public or freight by bus, truck, or
571-15 rail.
571-16 (b) A municipality may create an off-street parking system
571-17 by combining one or more parking facilities established under
571-18 Subsection (a) with one or more other parking facilities
571-19 previously owned by the municipality or acquired under a law other
571-20 than this subchapter that authorizes the municipality to own and
571-21 operate parking facilities, whether or not the other facility or
571-22 facilities are operated in connection with any other municipally
571-23 owned facility. (V.A.C.S. Art. 1269j-4.8, Secs. 2, 6(d).)
571-24 Sec. 1506.153. CONTRACTS AND LEASES; JOINT DEVELOPMENT. (a)
571-25 A municipality may contract with any person to perform any function
571-26 related to a facility described by Section 1506.152(a).
571-27 (b) A municipality may lease a facility or other property
572-1 described by Section 1506.152(a) to any person on the terms
572-2 approved by the governing body of the municipality, including the
572-3 amounts of rental, revenue, and payments and the period of years.
572-4 (c) A facility or other property described by Section
572-5 1506.152(a) may be developed with another public or private
572-6 development under an agreement with the owner of the development on
572-7 the terms approved by the municipality. The municipality may
572-8 include as a part of an agreement the provisions the municipality
572-9 determines are appropriate for the use, lease, or sale of any part
572-10 of the subsurface, or airspace above the surface, of the
572-11 municipality's property that the municipality determines is not
572-12 necessary for the purposes of the facility or other property.
572-13 (V.A.C.S. Art. 1269j-4.8, Secs. 5(b), (c).)
572-14 Sec. 1506.154. AUTHORITY TO ISSUE REVENUE BONDS. (a) The
572-15 governing body of a municipality by ordinance may issue revenue
572-16 bonds for a purpose authorized by Section 1506.152(a).
572-17 (b) A municipality that proposes to create an off-street
572-18 parking system under Section 1506.152(b) may by ordinance issue
572-19 bonds for the purposes of creating, extending, or improving the
572-20 system to the same extent otherwise provided by this subchapter for
572-21 bonds issued for a single parking facility. (V.A.C.S.
572-22 Art. 1269j-4.8, Secs. 3 (part), 6(e) (part).)
572-23 Sec. 1506.155. PLEDGE OF REVENUE. (a) A municipality may
572-24 pledge all or part of the revenue, income, or receipts from the
572-25 charges authorized by Section 1506.161 to the payment of bonds
572-26 issued under Section 1506.154(a), including principal, interest,
572-27 and any other amounts required or permitted in connection with the
573-1 bonds.
573-2 (b) A municipality may pledge to the payment of bonds issued
573-3 under Section 1506.154(b) all or part of the revenue, income, or
573-4 receipts from:
573-5 (1) the ownership or operation of any facility
573-6 included in the municipality's parking system established under
573-7 Section 1506.152(b); or
573-8 (2) parking meters on or adjacent to the public
573-9 streets of the municipality. (V.A.C.S. Art. 1269j-4.8, Secs. 3
573-10 (part), 6(a) (part), (e) (part).)
573-11 Sec. 1506.156. ADDITIONAL SECURITY. (a) Bonds issued under
573-12 this subchapter may be additionally secured by:
573-13 (1) an encumbrance on any real property relating to a
573-14 facility authorized by this subchapter owned or to be acquired by
573-15 the municipality;
573-16 (2) an encumbrance on any personal property
573-17 appurtenant to that real property; or
573-18 (3) a pledge of any portion of a grant, donation,
573-19 revenue, or income received or to be received from the United
573-20 States or any other public or private source.
573-21 (b) The governing body of the municipality may authorize the
573-22 execution of a trust indenture, mortgage, deed of trust, or other
573-23 instrument as evidence of the encumbrance. (V.A.C.S.
573-24 Art. 1269j-4.8, Secs. 6(b), (c).)
573-25 Sec. 1506.157. MATURITY. A bond issued under this
573-26 subchapter must mature not later than 40 years after its date.
573-27 (V.A.C.S. Art. 1269j-4.8, Sec. 4(a) (part).)
574-1 Sec. 1506.158. ADDITIONAL BONDS. The ordinance authorizing
574-2 the issuance of bonds under this subchapter may provide for the
574-3 subsequent issuance of additional parity bonds or subordinate lien
574-4 bonds under terms specified in the ordinance. (V.A.C.S.
574-5 Art. 1269j-4.8, Sec. 4(a) (part).)
574-6 Sec. 1506.159. SALE OF BONDS. A municipality may sell bonds
574-7 issued under this subchapter in the manner and under the terms
574-8 provided by the ordinance authorizing the issuance of the bonds.
574-9 (V.A.C.S. Art. 1269j-4.8, Sec. 4(b) (part).)
574-10 Sec. 1506.160. REVIEW AND APPROVAL OF CONTRACTS RELATING TO
574-11 BONDS. (a) If bonds issued under this subchapter state that they
574-12 are secured by a pledge of revenue or rents from a contract,
574-13 including a lease contract, a copy of the contract and the
574-14 proceedings related to it must be submitted to the attorney
574-15 general.
574-16 (b) If the attorney general finds that the bonds have been
574-17 authorized and the contract has been made in accordance with law,
574-18 the attorney general shall approve the contract.
574-19 (c) After the bonds are approved and registered as provided
574-20 by Chapter 1202 and the contract is approved as provided by
574-21 Subsection (b), the contract is incontestable in a court or other
574-22 forum for any reason and is a valid and binding obligation for all
574-23 purposes in accordance with its terms. (V.A.C.S. Art. 1269j-4.8,
574-24 Sec. 9 (part).)
574-25 Sec. 1506.161. CHARGES. (a) The governing body of a
574-26 municipality may impose and collect charges for the use or
574-27 availability of a facility or other property described by Section
575-1 1506.152(a) in the amounts and manner determined by the governing
575-2 body.
575-3 (b) A municipality shall impose pledged charges in amounts
575-4 that will be at least sufficient, with any other pledged resources,
575-5 to provide for the payment of:
575-6 (1) the principal of, interest on, and any other
575-7 amounts required in connection with the bonds to which the charges
575-8 are pledged; and
575-9 (2) to the extent required by the ordinance
575-10 authorizing the issuance of the bonds:
575-11 (A) expenses incurred in connection with the
575-12 bonds; and
575-13 (B) operation, maintenance, and other expenses
575-14 incurred in connection with the facility. (V.A.C.S.
575-15 Art. 1269j-4.8, Secs. 5(a), 6(a) (part).)
575-16 Sec. 1506.162. REFUNDING BONDS. (a) A municipality may
575-17 refund or otherwise refinance bonds issued under this subchapter by
575-18 issuing refunding bonds under any terms provided by ordinance of
575-19 the governing body of the municipality.
575-20 (b) All appropriate provisions of this subchapter apply to
575-21 the refunding bonds. The refunding bonds shall be issued in the
575-22 manner provided by this subchapter for other bonds.
575-23 (c) The refunding bonds may be sold and delivered in amounts
575-24 sufficient to pay the principal of and interest and any redemption
575-25 premium on the bonds to be refunded, at maturity or on any
575-26 redemption date.
575-27 (d) The refunding bonds may be issued to be exchanged for
576-1 the bonds being refunded by them. In that case, the comptroller
576-2 shall register the refunding bonds and deliver them to the holder
576-3 of the bonds being refunded as provided by the ordinance
576-4 authorizing the refunding bonds. The exchange may be made in one
576-5 delivery or in installment deliveries. (V.A.C.S. Art. 1269j-4.8,
576-6 Secs. 8(a), (b).)
576-7 Sec. 1506.163. PUBLIC PURPOSE. The acquisition,
576-8 construction, improvement, enlargement, equipment, operation, and
576-9 maintenance of a facility or other property described by Section
576-10 1506.152(a) is a public purpose and proper municipal function.
576-11 (V.A.C.S. Art. 1269j-4.8, Sec. 7.)
576-12 Sec. 1506.164. CONFLICT WITH OTHER LAW. When bonds are
576-13 issued under this subchapter, to the extent of any conflict between
576-14 this subchapter and another law, this subchapter controls.
576-15 (V.A.C.S. Art. 1269j-4.8, Sec. 11 (part).)
576-16 CHAPTER 1507. OBLIGATIONS RELATING TO MUNICIPAL
576-17 DEBT AND EXPENSES
576-18 SUBCHAPTER A. BONDS FOR PAYMENT OF JUDGMENTS
576-19 Sec. 1507.001. AUTHORITY TO ISSUE BONDS
576-20 Sec. 1507.002. ELECTION
576-21 Sec. 1507.003. MATURITY
576-22 (Sections 1507.004-1507.050 reserved for expansion)
576-23 SUBCHAPTER B. REFUNDING OF REFUNDING BONDS ISSUED UNDER
576-24 BANKRUPTCY PLAN
576-25 Sec. 1507.051. AUTHORITY TO ISSUE REFUNDING BONDS
576-26 Sec. 1507.052. SALE OF BONDS
576-27 Sec. 1507.053. SIGNATURES
577-1 Sec. 1507.054. APPLICABILITY OF MUNICIPAL CHARTER
577-2 (Sections 1507.055-1507.100 reserved for expansion)
577-3 SUBCHAPTER C. REFUNDING OF REFUNDING BONDS ADJUDICATED
577-4 AS VALID OR ISSUED UNDER BANKRUPTCY PLAN
577-5 Sec. 1507.101. AUTHORITY TO ISSUE REFUNDING BONDS
577-6 Sec. 1507.102. SALE OF BONDS
577-7 Sec. 1507.103. SIGNATURES
577-8 Sec. 1507.104. APPLICABILITY OF MUNICIPAL CHARTER
577-9 (Sections 1507.105-1507.150 reserved for expansion)
577-10 SUBCHAPTER D. TAX BONDS FOR PAYMENT OF CURRENT EXPENSES
577-11 Sec. 1507.151. AUTHORITY TO ISSUE BONDS
577-12 Sec. 1507.152. PLEDGE OF TAX
577-13 Sec. 1507.153. ELECTION
577-14 Sec. 1507.154. LIMITATION
577-15 Sec. 1507.155. MATURITY
577-16 Sec. 1507.156. SALE OF BONDS
577-17 Sec. 1507.157. NO WAIVER OF CLAIMS
577-18 Sec. 1507.158. REDEMPTION OF BONDS
577-19 Sec. 1507.159. CONFLICT WITH MUNICIPAL CHARTER
577-20 Sec. 1507.160. CONSTRUCTION
577-21 (Sections 1507.161-1507.200 reserved for expansion)
577-22 SUBCHAPTER E. NOTES TO FUND OR REFUND GENERAL OPERATING
577-23 EXPENSES IN MUNICIPALITIES WITH A POPULATION OF
577-24 35,000 TO 45,000
577-25 Sec. 1507.201. APPLICABILITY OF SUBCHAPTER
577-26 Sec. 1507.202. AUTHORITY TO ISSUE NOTES
577-27 Sec. 1507.203. ELECTION
578-1 Sec. 1507.204. AUTHORITY TO PASS ORDINANCES AND
578-2 RESOLUTIONS
578-3 Sec. 1507.205. MATURITY
578-4 Sec. 1507.206. PLEDGE
578-5 Sec. 1507.207. PAYMENT OF WARRANTS WHILE NOTES ARE
578-6 OUTSTANDING
578-7 (Sections 1507.208-1507.250 reserved for expansion)
578-8 SUBCHAPTER F. BONDS FOR PAYMENT OF CURRENT EXPENSES IN
578-9 MUNICIPALITIES WITH A POPULATION OF 161,000 OR MORE
578-10 Sec. 1507.251. APPLICABILITY OF SUBCHAPTER
578-11 Sec. 1507.252. AUTHORITY TO ISSUE WARRANTS OR NOTES
578-12 Sec. 1507.253. PLEDGE OF REVENUE; PAYMENT
578-13 Sec. 1507.254. LIMITATION ON AMOUNT OF WARRANTS AND NOTES
578-14 ISSUED
578-15 Sec. 1507.255. SALE OF WARRANTS OR NOTES
578-16 CHAPTER 1507. OBLIGATIONS RELATING TO MUNICIPAL
578-17 DEBT AND EXPENSES
578-18 SUBCHAPTER A. BONDS FOR PAYMENT OF JUDGMENTS
578-19 Sec. 1507.001. AUTHORITY TO ISSUE BONDS. A municipality may
578-20 issue, sell, and deliver bonds in an amount sufficient to pay a
578-21 final judgment of a court, plus the interest and the costs and
578-22 expenses connected with the judgment, if:
578-23 (1) the judgment is against the municipality or the
578-24 payment of the judgment is the legal responsibility of the
578-25 municipality;
578-26 (2) the judgment awards the plaintiff an amount in
578-27 cash; and
579-1 (3) the municipality does not have money available to
579-2 pay the amount of the judgment plus the interest and the cost and
579-3 expenses connected with the judgment or decree. (V.A.C.S.
579-4 Art. 835r, Sec. 1 (part).)
579-5 Sec. 1507.002. ELECTION. (a) A municipality may not issue
579-6 bonds under this subchapter unless the bonds are authorized by a
579-7 majority vote of the qualified voters of the municipality voting at
579-8 an election held for that purpose.
579-9 (b) A municipality shall hold an election to issue bonds
579-10 under this subchapter in the manner provided for other bond
579-11 elections in the municipality. (V.A.C.S. Art. 835r, Sec. 1
579-12 (part).)
579-13 Sec. 1507.003. MATURITY. A bond issued under this
579-14 subchapter must mature not later than 40 years after its date.
579-15 (V.A.C.S. Art. 835r, Sec. 1 (part).)
579-16 (Sections 1507.004-1507.050 reserved for expansion)
579-17 SUBCHAPTER B. REFUNDING OF REFUNDING BONDS ISSUED UNDER
579-18 BANKRUPTCY PLAN
579-19 Sec. 1507.051. AUTHORITY TO ISSUE REFUNDING BONDS. (a) The
579-20 governing body of a municipality by ordinance may issue refunding
579-21 bonds in accordance with Subchapters A and D, Chapter 1207, to
579-22 refund outstanding refunding bonds if:
579-23 (1) the bonds to be refunded were issued under a plan
579-24 for the adjustment of the municipality's debts confirmed by a
579-25 bankruptcy court under Title 11, United States Code; and
579-26 (2) the bonds do not mature in annual installments.
579-27 (b) The governing body of a municipality that issues bonds
580-1 under this subchapter to refund revenue bonds may secure the bonds
580-2 issued under this subchapter by a deed of trust on the
580-3 municipality's utility system or by a pledge of the net revenue of
580-4 the system if the bonds being refunded provide for that pledge.
580-5 (V.A.C.S. Art. 802g, Secs. 1, 2 (part), 5 (part).)
580-6 Sec. 1507.052. SALE OF BONDS. (a) Instead of exchanging
580-7 refunding bonds issued under this subchapter for the bonds being
580-8 refunded, a municipality may, at any time after calling the bonds
580-9 being refunded for redemption in the manner provided in those
580-10 bonds, sell the refunding bonds or the unexchanged portion of the
580-11 refunding bonds.
580-12 (b) The municipality shall deposit the principal amount
580-13 received from the sale of the refunding bonds, and the additional
580-14 amount necessary to pay the interest to the call date, with the
580-15 bank at which the bonds being refunded are payable.
580-16 (c) The municipality shall send to the comptroller a
580-17 certified copy of the ordinance authorizing the refunding bonds.
580-18 The comptroller shall register the refunding bonds without the
580-19 cancellation of the bonds being refunded and shall deliver the
580-20 refunding bonds as provided in the ordinance. (V.A.C.S.
580-21 Art. 802g, Sec. 3 (part).)
580-22 Sec. 1507.053. SIGNATURES. A bond issued under this
580-23 subchapter must be signed by the mayor of the municipality and the
580-24 secretary or clerk of the municipality. (V.A.C.S. Art. 802g, Sec.
580-25 5 (part).)
580-26 Sec. 1507.054. APPLICABILITY OF MUNICIPAL CHARTER. A
580-27 provision of a municipal charter relating to the terms, issuance,
581-1 sale, or delivery of bonds does not apply to a bond issued under
581-2 this subchapter. (V.A.C.S. Art. 802g, Sec. 3 (part).)
581-3 (Sections 1507.055-1507.100 reserved for expansion)
581-4 SUBCHAPTER C. REFUNDING OF REFUNDING BONDS ADJUDICATED AS
581-5 VALID OR ISSUED UNDER BANKRUPTCY PLAN
581-6 Sec. 1507.101. AUTHORITY TO ISSUE REFUNDING BONDS. The
581-7 governing body of a municipality by ordinance may issue refunding
581-8 bonds in accordance with Subchapters A and D, Chapter 1207, to
581-9 refund outstanding refunding bonds:
581-10 (1) that:
581-11 (A) a federal court by decree adjudicated to be
581-12 valid; or
581-13 (B) were issued under a plan for the adjustment
581-14 of the municipality's debts confirmed by a bankruptcy court under
581-15 Title 11, United States Code; and
581-16 (2) that were issued under the authority of an
581-17 ordinance specifying a minimum fixed tax rate to be imposed in each
581-18 year during which any of those bonds or interest on those bonds is
581-19 outstanding. (V.A.C.S. Art. 802h, Secs. 1, 2 (part), 4 (part).)
581-20 Sec. 1507.102. SALE OF BONDS. (a) Instead of exchanging
581-21 refunding bonds issued under this subchapter for the bonds being
581-22 refunded, a municipality may sell the refunding bonds or the
581-23 unexchanged portion of the refunding bonds.
581-24 (b) The municipality shall deposit the principal amount
581-25 received from the sale of the refunding bonds, and the additional
581-26 amount necessary to pay the interest to the call date or maturity
581-27 dates, with the bank at which the original refunding bonds are
582-1 payable.
582-2 (c) The municipality shall send to the comptroller a
582-3 certified copy of the ordinance authorizing the refunding bonds.
582-4 The comptroller shall register the refunding bonds without the
582-5 cancellation of the bonds being refunded and shall deliver the
582-6 refunding bonds as provided in the ordinance. (V.A.C.S. Art. 802h,
582-7 Sec. 3 (part).)
582-8 Sec. 1507.103. SIGNATURES. A bond issued under this
582-9 subchapter must be signed by the mayor of the municipality and the
582-10 secretary or clerk of the municipality. (V.A.C.S. Art. 802h, Sec.
582-11 4 (part).)
582-12 Sec. 1507.104. APPLICABILITY OF MUNICIPAL CHARTER. A
582-13 provision of a municipal charter relating to the terms, issuance,
582-14 sale, or delivery of bonds does not apply to a bond issued under
582-15 this subchapter. (V.A.C.S. Art. 802h, Sec. 3 (part).)
582-16 (Sections 1507.105-1507.150 reserved for expansion)
582-17 SUBCHAPTER D. TAX BONDS FOR PAYMENT OF CURRENT EXPENSES
582-18 Sec. 1507.151. AUTHORITY TO ISSUE BONDS. (a) The governing
582-19 body of a municipality by ordinance may issue bonds secured by and
582-20 payable from ad valorem taxes to provide for the payment of all or
582-21 part of the municipality's current expenses for a fiscal year if:
582-22 (1) in that fiscal year the municipality has lost or
582-23 is likely to lose an amount that is:
582-24 (A) more than $15 million; and
582-25 (B) more than 15 percent of the municipality's
582-26 budget for the fiscal year, not including the amount necessary for
582-27 debt service; and
583-1 (2) the loss or potential loss is the result of a
583-2 person who received municipal funds seeking or acceding to
583-3 protection under Title 11, United States Code.
583-4 (b) A determination by the municipality's governing body
583-5 that a loss has occurred or is likely to occur, or of the amount of
583-6 a loss or anticipated loss, is conclusive. (V.A.C.S. Art. 1066g,
583-7 Secs. 1(a), (b), (c).)
583-8 Sec. 1507.152. PLEDGE OF TAX. The governing body may pledge
583-9 to the payment of the bonds issued under this subchapter an ad
583-10 valorem tax sufficient to pay when due the principal of and
583-11 interest on the bonds. (V.A.C.S. Art. 1066g, Sec. 3 (part).)
583-12 Sec. 1507.153. ELECTION. The governing body of a
583-13 municipality may issue bonds under this subchapter without an
583-14 election. (V.A.C.S. Art. 1066g, Sec. 2 (part).)
583-15 Sec. 1507.154. LIMITATION. A municipality may not issue
583-16 bonds under this subchapter in a principal amount that:
583-17 (1) exceeds the amount of loss sustained or
583-18 anticipated by the municipality and the cost of issuing the bonds;
583-19 or
583-20 (2) would result in the outstanding aggregate
583-21 principal amount of tax bond indebtedness of the municipality
583-22 exceeding 10 percent of the assessed valuation of taxable property
583-23 in the municipality according to the most recent ad valorem tax
583-24 roll of the municipality. (V.A.C.S. Art. 1066g, Sec. 4.)
583-25 Sec. 1507.155. MATURITY. Bonds issued under this subchapter
583-26 must mature not later than five years after their date of issuance
583-27 as provided by the ordinance authorizing the issuance and sale of
584-1 the bonds. (V.A.C.S. Art. 1066g, Sec. 2 (part).)
584-2 Sec. 1507.156. SALE OF BONDS. A municipality may sell bonds
584-3 issued under this subchapter at a public or private sale as
584-4 provided by the ordinance authorizing the issuance and sale of the
584-5 bonds. (V.A.C.S. Art. 1066g, Sec. 2 (part).)
584-6 Sec. 1507.157. NO WAIVER OF CLAIMS. (a) A municipality's
584-7 action under this subchapter does not affect or abrogate any claim
584-8 the municipality may have with respect to a loss described by
584-9 Section 1507.151.
584-10 (b) A municipality that issues bonds under this subchapter:
584-11 (1) does not waive any claim of the municipality;
584-12 (2) is not estopped from recovering on a claim of the
584-13 municipality; and
584-14 (3) does not ratify any prior action by the
584-15 municipality in connection with the loss.
584-16 (c) A municipality may reserve any claim the municipality
584-17 may have in its action authorizing the bonds. (V.A.C.S.
584-18 Art. 1066g, Sec. 1(d).)
584-19 Sec. 1507.158. REDEMPTION OF BONDS. After the recovery of a
584-20 loss described by Section 1507.151 or the failure of an anticipated
584-21 loss described by Section 1507.151 to occur, the governing body
584-22 shall promptly redeem bonds issued to cover the loss or anticipated
584-23 loss in a principal amount equal to the amount recovered or the
584-24 amount of anticipated loss that did not occur. (V.A.C.S.
584-25 Art. 1066g, Sec. 8.)
584-26 Sec. 1507.159. CONFLICT WITH MUNICIPAL CHARTER. To the
584-27 extent of a conflict between this subchapter and a municipal
585-1 charter, this subchapter controls. (V.A.C.S. Art. 1066g, Sec. 9
585-2 (part).)
585-3 Sec. 1507.160. CONSTRUCTION. This subchapter shall be
585-4 liberally construed to achieve the legislative intent and purposes
585-5 of this subchapter. A power granted by this subchapter shall be
585-6 broadly interpreted to achieve that intent and those purposes.
585-7 (V.A.C.S. Art. 1066g, Sec. 10.)
585-8 (Sections 1507.161-1507.200 reserved for expansion)
585-9 SUBCHAPTER E. NOTES TO FUND OR REFUND GENERAL OPERATING EXPENSES
585-10 IN MUNICIPALITIES WITH A POPULATION OF 35,000 TO 45,000
585-11 Sec. 1507.201. APPLICABILITY OF SUBCHAPTER. This subchapter
585-12 applies only to a home-rule or special-law municipality with a
585-13 population of 35,000 to 45,000. (V.A.C.S. Art. 802b-3, Sec. 1
585-14 (part).)
585-15 Sec. 1507.202. AUTHORITY TO ISSUE NOTES. A municipality may
585-16 issue notes to fund or refund outstanding warrants that were drawn
585-17 against the municipality's general fund for general operating
585-18 expenses and issued during the calendar year preceding the calendar
585-19 year in which the notes are issued. (V.A.C.S. Art. 802b-3, Secs. 1
585-20 (part), 3 (part).)
585-21 Sec. 1507.203. ELECTION. (a) Before a municipality may
585-22 issue notes under this subchapter, the governing body of the
585-23 municipality shall order an election on the question of authorizing
585-24 the governing body to issue the notes.
585-25 (b) The governing body shall hold, give notice of, and
585-26 declare the results of an election under this section in the manner
585-27 provided by general law for bond elections in the municipality.
586-1 (V.A.C.S. Art. 802b-3, Sec. 2 (part).)
586-2 Sec. 1507.204. AUTHORITY TO PASS ORDINANCES AND RESOLUTIONS.
586-3 If the issuance of the notes is authorized at the election, the
586-4 governing body of the municipality may pass ordinances and
586-5 resolutions for the issuance of the notes. (V.A.C.S. Art. 802b-3,
586-6 Sec. 3 (part).)
586-7 Sec. 1507.205. MATURITY. A note issued under this
586-8 subchapter must mature not later than 10 years after its date.
586-9 (V.A.C.S. Art. 802b-3, Sec. 3 (part).)
586-10 Sec. 1507.206. PLEDGE. A municipality may pledge the full
586-11 faith and credit of the municipality to the payment of a note
586-12 issued under this subchapter and the interest on the note.
586-13 (V.A.C.S. Art. 802b-3, Sec. 3 (part).)
586-14 Sec. 1507.207. PAYMENT OF WARRANTS WHILE NOTES ARE
586-15 OUTSTANDING. If a warrant is drawn against the municipality's
586-16 general fund during a calendar year in which a note issued under
586-17 this subchapter is outstanding, the municipality shall pay the
586-18 warrant from current funds appropriated for the purpose for which
586-19 the warrant is drawn. The municipality may not fund or refund the
586-20 warrant. (V.A.C.S. Art. 802b-3, Sec. 3 (part).)
586-21 (Sections 1507.208-1507.250 reserved for expansion)
586-22 SUBCHAPTER F. BONDS FOR PAYMENT OF CURRENT EXPENSES IN
586-23 MUNICIPALITIES WITH A POPULATION OF 161,000 OR MORE
586-24 Sec. 1507.251. APPLICABILITY OF SUBCHAPTER. This subchapter
586-25 applies only to a municipality with a population of 161,000 or
586-26 more. (V.A.C.S. Art. 1264 (part).)
586-27 Sec. 1507.252. AUTHORITY TO ISSUE WARRANTS OR NOTES. (a)
587-1 The governing body of a municipality may issue warrants or notes
587-2 drawn against the current revenues of the municipality for the
587-3 fiscal year to:
587-4 (1) provide for the payment of the municipality's
587-5 expenses for the fiscal year in which the warrants or notes are
587-6 issued or for any portion of that fiscal year; or
587-7 (2) refund the principal of and interest on warrants
587-8 and notes issued under this subchapter.
587-9 (b) Warrants and notes issued under this subchapter must be
587-10 dated and numbered consecutively as issued. (V.A.C.S. Art. 1264
587-11 (part).)
587-12 Sec. 1507.253. PLEDGE OF REVENUE; PAYMENT. (a) A warrant
587-13 or note issued under this subchapter is a lien on:
587-14 (1) the revenue of the municipality for the fiscal
587-15 year during which the warrant or note is issued that is available
587-16 for payment of the warrant or note; or
587-17 (2) a designated portion of that revenue.
587-18 (b) A municipality shall pay a warrant or note:
587-19 (1) consecutively according to its respective date and
587-20 number as money for payment becomes available; or
587-21 (2) on a date during the fiscal year on which, in the
587-22 estimate of the governing body, sufficient revenue will be
587-23 available for payment of the warrant or note. (V.A.C.S. Art. 1264
587-24 (part).)
587-25 Sec. 1507.254. LIMITATION ON AMOUNT OF WARRANTS AND NOTES
587-26 ISSUED. (a) The governing body may not issue warrants or notes
587-27 under this subchapter in an amount exceeding 80 percent of the
588-1 difference between:
588-2 (1) the estimated revenue of the municipality for the
588-3 fiscal year; and
588-4 (2) the sum of:
588-5 (A) the interest on the bonded indebtedness of
588-6 the municipality to be paid from that revenue; and
588-7 (B) any amount that the municipality is required
588-8 to pay from that revenue into a sinking fund, special fund, or
588-9 special trust fund of the municipality.
588-10 (b) The limitation prescribed by Subsection (a) does not
588-11 apply to warrants or notes issued for refunding purposes.
588-12 (c) The aggregate principal amount of warrants or notes
588-13 issued under this subchapter and outstanding at any time in a
588-14 fiscal year may not exceed the greatest amount by which the
588-15 proposed expenditures for the fiscal year are estimated by the
588-16 governing body to exceed the estimated revenue available for
588-17 payment of warrants and notes during the fiscal year, as computed
588-18 under Subsection (a). (V.A.C.S. Art. 1264 (part).)
588-19 Sec. 1507.255. SALE OF WARRANTS OR NOTES. A municipality
588-20 may sell warrants or notes issued under this subchapter at a public
588-21 or private sale as provided in the ordinance authorizing the
588-22 issuance and sale of the warrants or notes. (V.A.C.S. Art. 1264
588-23 (part).)
588-24 CHAPTER 1508. OBLIGATIONS FOR MUNICIPAL PARKS,
588-25 RECREATIONAL FACILITIES, AND AIRPORTS
588-26 SUBCHAPTER A. OBLIGATIONS FOR PARKS, RECREATIONAL FACILITIES,
588-27 AND AIRPORTS
589-1 Sec. 1508.001. AUTHORITY FOR PARKS, RECREATIONAL
589-2 FACILITIES, AND AIRPORTS
589-3 Sec. 1508.002. AUTHORITY TO ISSUE BONDS, NOTES, AND WARRANTS
589-4 Sec. 1508.003. PLEDGE OF INCOME
589-5 Sec. 1508.004. AUTHORITY TO GRANT FRANCHISE
589-6 Sec. 1508.005. OBLIGATIONS NOT DEBT OF MUNICIPALITY
589-7 Sec. 1508.006. ELECTION
589-8 Sec. 1508.007. RECORDS
589-9 Sec. 1508.008. ANNUAL REPORT
589-10 Sec. 1508.009. OFFENSE
589-11 Sec. 1508.010. CIVIL ENFORCEMENT
589-12 (Sections 1508.011-1508.050 reserved for expansion)
589-13 SUBCHAPTER B. REVENUE BONDS FOR SWIMMING POOLS
589-14 Sec. 1508.051. AUTHORITY FOR SWIMMING POOLS
589-15 Sec. 1508.052. AUTHORITY TO ISSUE REVENUE BONDS
589-16 Sec. 1508.053. ISSUANCE OF BONDS
589-17 Sec. 1508.054. BONDS NOT DEBT OF MUNICIPALITY
589-18 Sec. 1508.055. EFFECT ON OTHER LAW
589-19 (Sections 1508.056-1508.100 reserved for expansion)
589-20 SUBCHAPTER C. OBLIGATIONS FOR HEALTH AND RECREATIONAL
589-21 FACILITIES IN MUNICIPALITIES WITH POPULATION OF 230,000 OR MORE
589-22 Sec. 1508.101. APPLICABILITY OF SUBCHAPTER
589-23 Sec. 1508.102. AUTHORITY FOR CERTAIN HEALTH OR
589-24 RECREATIONAL FACILITIES
589-25 Sec. 1508.103. AUTHORITY TO ISSUE BONDS, NOTES, AND
589-26 WARRANTS
589-27 Sec. 1508.104. PLEDGE OF INCOME
590-1 Sec. 1508.105. MORTGAGE
590-2 Sec. 1508.106. OBLIGATION NOT PAYABLE FROM TAXES
590-3 Sec. 1508.107. APPLICATION OF OTHER LAW
590-4 Sec. 1508.108. OPERATING EXPENSES AS FIRST LIEN
590-5 Sec. 1508.109. RENTS AND CONCESSION CHARGES
590-6 Sec. 1508.110. USE OF INCOME FOR OTHER PURPOSE
590-7 PROHIBITED
590-8 Sec. 1508.111. MANAGEMENT AND CONTROL
590-9 Sec. 1508.112. APPOINTMENT OF TRUSTEE; ATTORNEY'S FEES
590-10 Sec. 1508.113. NOTICE TO GOVERNING BODY BEFORE
590-11 FORECLOSURE OR OTHER ACTION
590-12 (Sections 1508.114-1508.150 reserved for expansion)
590-13 SUBCHAPTER D. BONDS FOR PARKS AND RECREATIONAL FACILITIES
590-14 IN MUNICIPALITIES WITH POPULATION OF 1.2 MILLION OR MORE
590-15 Sec. 1508.151. APPLICABILITY OF SUBCHAPTER
590-16 Sec. 1508.152. AUTHORITY FOR PARK FACILITIES
590-17 Sec. 1508.153. AUTHORITY TO ISSUE REVENUE BONDS
590-18 Sec. 1508.154. PLEDGE OF REVENUE
590-19 Sec. 1508.155. ADDITIONAL SECURITY
590-20 Sec. 1508.156. MATURITY
590-21 Sec. 1508.157. ADDITIONAL BONDS
590-22 Sec. 1508.158. SALE OF BONDS
590-23 Sec. 1508.159. REVIEW AND APPROVAL OF CONTRACTS BY ATTORNEY
590-24 GENERAL
590-25 Sec. 1508.160. CHARGES
590-26 Sec. 1508.161. USE OF AD VALOREM TAXES
590-27 Sec. 1508.162. REFUNDING BONDS
591-1 Sec. 1508.163. PUBLIC PURPOSE
591-2 Sec. 1508.164. CONFLICT WITH OTHER LAW
591-3 (Sections 1508.165-1508.200 reserved for expansion)
591-4 SUBCHAPTER E. CERTIFICATES OF INDEBTEDNESS FOR
591-5 SEA LIFE PARK AND OCEANARIUM
591-6 Sec. 1508.201. APPLICABILITY OF SUBCHAPTER
591-7 Sec. 1508.202. AUTHORITY TO ISSUE CERTIFICATES OF
591-8 INDEBTEDNESS
591-9 Sec. 1508.203. SECURITY FOR CERTIFICATES
591-10 Sec. 1508.204. SALE OR DELIVERY OF CERTIFICATES
591-11 Sec. 1508.205. AUTHORITY TO ENTER INTO AGREEMENT
591-12 REGARDING PUBLIC FACILITIES
591-13 Sec. 1508.206. ACQUISITION OF PUBLIC FACILITY FROM
591-14 OPERATOR
591-15 Sec. 1508.207. DISCONTINUATION OF SEA LIFE PARK AND
591-16 OCEANARIUM; SALE OR LEASE OF SURPLUS
591-17 PROPERTY
591-18 Sec. 1508.208. CONFLICT WITH OTHER LAW
591-19 CHAPTER 1508. OBLIGATIONS FOR MUNICIPAL PARKS,
591-20 RECREATIONAL FACILITIES, AND AIRPORTS
591-21 SUBCHAPTER A. OBLIGATIONS FOR PARKS, RECREATIONAL FACILITIES,
591-22 AND AIRPORTS
591-23 Sec. 1508.001. AUTHORITY FOR PARKS, RECREATIONAL FACILITIES,
591-24 AND AIRPORTS. (a) A municipality may:
591-25 (1) construct, purchase, or encumber:
591-26 (A) a park, swimming pool, golf course, golf
591-27 course clubhouse, or ballpark;
592-1 (B) a fairground or an exposition building;
592-2 (C) an airport; or
592-3 (D) land on which a facility described by
592-4 Paragraphs (A)-(C) is located; or
592-5 (2) encumber anything acquired or to be acquired that
592-6 relates to a facility or land constructed or purchased under
592-7 Subdivision (1).
592-8 (b) A municipality may secure the payment of funds to
592-9 construct, purchase, or equip a facility or land described by
592-10 Subsection (a)(1). (V.A.C.S. Art. 1015c, Sec. 1 (part).)
592-11 Sec. 1508.002. AUTHORITY TO ISSUE BONDS, NOTES, AND
592-12 WARRANTS. A municipality may issue bonds, notes, or warrants to
592-13 provide the money to construct or purchase a facility or land
592-14 described by Section 1508.001. (V.A.C.S. Art. 1015c, Sec. 1
592-15 (part).)
592-16 Sec. 1508.003. PLEDGE OF INCOME. A municipality may pledge
592-17 the income from a facility or land described by Section 1508.001 to
592-18 the payment of obligations issued under this subchapter. (V.A.C.S.
592-19 Art. 1015c, Sec. 1 (part).)
592-20 Sec. 1508.004. AUTHORITY TO GRANT FRANCHISE. As additional
592-21 security for an obligation described by Section 1508.002, a
592-22 municipality may, under the terms of the encumbrance, grant to the
592-23 purchaser under sale or foreclosure a franchise to operate the
592-24 facility or land for a term not to exceed 20 years from the date of
592-25 purchase, subject to all laws regulating same then in force.
592-26 (V.A.C.S. Art. 1015c, Sec. 1 (part).)
592-27 Sec. 1508.005. OBLIGATIONS NOT DEBT OF MUNICIPALITY. An
593-1 obligation issued under this subchapter:
593-2 (1) is not a debt of the municipality;
593-3 (2) may be a charge only on the facility or land
593-4 pledged for the payment of the obligation; and
593-5 (3) may not be included in determining the power of
593-6 the municipality to issue bonds for any purpose authorized by law.
593-7 (V.A.C.S. Art. 1015c, Sec. 1 (part).)
593-8 Sec. 1508.006. ELECTION. (a) Unless authorized at an
593-9 election by a majority vote of the qualified voters of the
593-10 municipality, a municipality may not:
593-11 (1) encumber a facility or land described by Section
593-12 1508.001 for more than $5,000 except:
593-13 (A) for purchase money;
593-14 (B) for funds to construct and equip the
593-15 facility; or
593-16 (C) to refund existing debt that was authorized
593-17 by law; or
593-18 (2) sell a facility or land described by Section
593-19 1508.001.
593-20 (b) The governing body of the municipality shall hold an
593-21 election under this section in the manner provided for other bond
593-22 elections in the municipality.
593-23 (c) If approved by a majority vote of the qualified voters
593-24 at an election held for that purpose before November 14, 1935, an
593-25 election is not required to encumber:
593-26 (1) a golf course or golf course clubhouse;
593-27 (2) a fairground or an exposition building;
594-1 (3) an airport; or
594-2 (4) land for a facility described by Subdivisions
594-3 (1)-(3). (V.A.C.S. Art. 1015c, Sec. 2.)
594-4 Sec. 1508.007. RECORDS. The mayor of a municipality that
594-5 has a facility or land described by Section 1508.001 shall
594-6 establish and maintain a complete system of records that:
594-7 (1) show each free service provided in connection with
594-8 the facility or land and the value of the service; and
594-9 (2) show separately the amounts spent and amounts set
594-10 aside for operation, salaries, labor, materials, repairs,
594-11 maintenance, depreciation, replacements, extensions, interest, and
594-12 the creation of a sinking fund to pay the bonds or debt. (V.A.C.S.
594-13 Art. 1015c, Sec. 4 (part).)
594-14 Sec. 1508.008. ANNUAL REPORT. (a) Not later than February
594-15 1 of each year, the superintendent or manager of a facility or land
594-16 described by Section 1508.001 shall file with the mayor of the
594-17 municipality a detailed report of the operation of the facility or
594-18 land for the year ending the preceding January 1.
594-19 (b) The report must show the total amount of money collected
594-20 and the balance due, and the total disbursements made and the
594-21 amounts remaining unpaid, resulting from the operation of the
594-22 facility or land during that year. (V.A.C.S. Art. 1015c, Sec. 4
594-23 (part).)
594-24 Sec. 1508.009. OFFENSE. (a) A mayor commits an offense if
594-25 the mayor fails to:
594-26 (1) establish the system of records required by
594-27 Section 1508.007 before the 91st day after the date the
595-1 construction or purchase of the facility or land is completed; or
595-2 (2) maintain the system of records required by Section
595-3 1508.007.
595-4 (b) A superintendent or manager of a facility or land
595-5 described by Section 1508.001 commits an offense if the
595-6 superintendent or manager fails to file a report required by
595-7 Section 1508.008.
595-8 (c) An offense under this section is a misdemeanor
595-9 punishable by a fine of not less than $100 or more than $1,000.
595-10 (V.A.C.S. Art. 1015c, Sec. 4 (part).)
595-11 Sec. 1508.010. CIVIL ENFORCEMENT. A taxpayer who resides in
595-12 the municipality or a holder of an obligation issued under this
595-13 subchapter and secured by the encumbered revenue from a facility or
595-14 land described by Section 1508.001 is entitled to enforce this
595-15 subchapter by appropriate civil action in a district court in the
595-16 county in which the municipality is located. (V.A.C.S. Art. 1015c,
595-17 Sec. 4 (part).)
595-18 (Sections 1508.011-1508.050 reserved for expansion)
595-19 SUBCHAPTER B. REVENUE BONDS FOR SWIMMING POOLS
595-20 Sec. 1508.051. AUTHORITY FOR SWIMMING POOLS. A municipality
595-21 may:
595-22 (1) purchase, construct, improve, enlarge, or repair a
595-23 municipal swimming pool; or
595-24 (2) encumber:
595-25 (A) a municipal swimming pool or anything
595-26 acquired that relates to the pool; or
595-27 (B) the gross income and revenue from a
596-1 municipal pool. (V.A.C.S. Art. 1015c-2, Sec. 1 (part).)
596-2 Sec. 1508.052. AUTHORITY TO ISSUE REVENUE BONDS. A
596-3 municipality may issue revenue bonds to purchase, construct,
596-4 improve, enlarge, or repair a municipal swimming pool. (V.A.C.S.
596-5 Art. 1015c-2, Sec. 1 (part).)
596-6 Sec. 1508.053. ISSUANCE OF BONDS. Except as provided by
596-7 this subchapter, a municipality shall issue bonds for a purpose
596-8 described by Section 1508.052, including additional bonds and
596-9 refunding bonds, in the manner provided by Subchapter B, Chapter
596-10 1502. (V.A.C.S. Art. 1015c-2, Sec. 2.)
596-11 Sec. 1508.054. BONDS NOT DEBT OF MUNICIPALITY. A bond
596-12 issued under this subchapter:
596-13 (1) is not a debt of the municipality;
596-14 (2) may be a charge only on the property or income
596-15 pledged for the payment of the bond; and
596-16 (3) may not be included in determining the power of
596-17 the municipality to issue bonds for any other purpose authorized by
596-18 law. (V.A.C.S. Art. 1015c-2, Sec. 1 (part).)
596-19 Sec. 1508.055. EFFECT ON OTHER LAW. This subchapter does
596-20 not affect any other law relating to the issuance of revenue bonds
596-21 by a municipality, including Subchapter B, Chapter 1502. (V.A.C.S.
596-22 Art. 1015c-2, Sec. 5 (part).)
596-23 (Sections 1508.056-1508.100 reserved for expansion)
596-24 SUBCHAPTER C. OBLIGATIONS FOR HEALTH AND RECREATIONAL
596-25 FACILITIES IN MUNICIPALITIES WITH POPULATION OF 230,000 OR MORE
596-26 Sec. 1508.101. APPLICABILITY OF SUBCHAPTER. This subchapter
596-27 applies only to a municipality with a population of 230,000 or
597-1 more. (V.A.C.S. Art. 1180b, Sec. 1 (part).)
597-2 Sec. 1508.102. AUTHORITY FOR CERTAIN HEALTH OR RECREATIONAL
597-3 FACILITIES. (a) A municipality may acquire, encumber, construct,
597-4 maintain, operate, repair, or remodel:
597-5 (1) a health and recreational facility, park,
597-6 playground, hotel, bathhouse, or swimming pool or facility; or
597-7 (2) an installation or establishment necessary or
597-8 desirable as a part of a facility described by Subdivision (1).
597-9 (b) A municipality may not encumber under this section a
597-10 project acquired on or before November 14, 1935. (V.A.C.S.
597-11 Art. 1180b, Sec. 1 (part).)
597-12 Sec. 1508.103. AUTHORITY TO ISSUE BONDS, NOTES, AND
597-13 WARRANTS. A municipality may issue bonds, notes, or warrants to
597-14 provide money for an acquisition or an activity authorized by
597-15 Section 1508.102. (V.A.C.S. Art. 1180b, Sec. 1 (part).)
597-16 Sec. 1508.104. PLEDGE OF INCOME. A municipality may pledge
597-17 the income from a project described by Section 1508.102 to the
597-18 payment of an obligation issued under this subchapter. (V.A.C.S.
597-19 Art. 1180b, Sec. 1 (part).)
597-20 Sec. 1508.105. MORTGAGE. A municipality may secure the
597-21 payment of funds for a purchase under this subchapter with an
597-22 instrument of pledge or mortgage as desired by the municipality.
597-23 (V.A.C.S. Art. 1180b, Sec. 1 (part).)
597-24 Sec. 1508.106. OBLIGATION NOT PAYABLE FROM TAXES. (a) An
597-25 obligation issued under this subchapter:
597-26 (1) is not a debt of the municipality;
597-27 (2) may be a charge only on the property and revenue
598-1 encumbered; and
598-2 (3) may not be included in determining the power of
598-3 the municipality to issue bonds for any purpose authorized by law.
598-4 (b) A contract, bond, warrant, or note issued or executed
598-5 under this subchapter must contain the following provision: "The
598-6 holder of this obligation is not entitled to demand payment of this
598-7 obligation out of any money raised by taxation." (V.A.C.S.
598-8 Art. 1180b, Secs. 1 (part), 4.)
598-9 Sec. 1508.107. APPLICATION OF OTHER LAW. The provisions of
598-10 Chapter 252, Local Government Code, regarding notice, competitive
598-11 bids, and the right to referendum do not apply to a municipality
598-12 issuing revenue bonds under this subchapter. (V.A.C.S. Art. 1180b,
598-13 Sec. 2.)
598-14 Sec. 1508.108. OPERATING EXPENSES AS FIRST LIEN. If the
598-15 income from a project described by Section 1508.102 is encumbered
598-16 under this subchapter, each expense of operation and maintenance of
598-17 the project, including all salaries, labor, materials, interest,
598-18 repairs, and extensions necessary to maintain the project, and each
598-19 proper item of expense, is a first lien and charge against the
598-20 income. (V.A.C.S. Art. 1180b, Sec. 3 (part).)
598-21 Sec. 1508.109. RENTS AND CONCESSION CHARGES. (a) The
598-22 governing body that manages and controls a project under Section
598-23 1508.111 shall impose and collect rents and concession charges for
598-24 the use of the project in an amount sufficient to pay:
598-25 (1) all operating and maintenance expenses,
598-26 depreciation, replacements, salaries, and interest charges;
598-27 (2) for an interest and sinking fund sufficient to pay
599-1 any bonds issued to purchase, construct, maintain, or improve the
599-2 project; and
599-3 (3) any outstanding debt against the project.
599-4 (b) The governing body may not allow any free use of or free
599-5 service in connection with the project.
599-6 (c) The charges imposed under Subsection (a) must comply
599-7 with the requirements of any governmental agency lending or
599-8 providing funds for the project. (V.A.C.S. Art. 1180b, Sec. 3
599-9 (part).)
599-10 Sec. 1508.110. USE OF INCOME FOR OTHER PURPOSE PROHIBITED.
599-11 A municipality may not use the income from a project described by
599-12 Section 1508.102 to pay another debt, expense, or obligation of the
599-13 municipality until the debt secured by the income is fully paid.
599-14 (V.A.C.S. Art. 1180b, Sec. 8.)
599-15 Sec. 1508.111. MANAGEMENT AND CONTROL. (a) The contract
599-16 under which a project authorized by Section 1508.102 is encumbered
599-17 must provide for the placement of the management and control of the
599-18 project during the time the project is encumbered in:
599-19 (1) the governing body of the municipality; or
599-20 (2) another governing body established for that
599-21 purpose by the governing body of the municipality.
599-22 (b) The governing body that manages and controls a project
599-23 under Subsection (a) may:
599-24 (1) adopt rules governing the use and rental of the
599-25 project and for the payment of rents and concession charges; and
599-26 (2) provide penalties for:
599-27 (A) the violation of rules adopted under
600-1 Subdivision (1);
600-2 (B) the use of the project without the consent
600-3 or knowledge of the authorities in charge of the project; or
600-4 (C) any interference with, trespass on, or
600-5 injury to the project or the property on which the project is
600-6 located. (V.A.C.S. Art. 1180b, Sec. 5.)
600-7 Sec. 1508.112. APPOINTMENT OF TRUSTEE; ATTORNEY'S FEES. A
600-8 contract under which a project is encumbered under this subchapter
600-9 may provide for:
600-10 (1) the selection of a trustee to sell the project on:
600-11 (A) a default in the payment of principal or
600-12 interest; or
600-13 (B) a violation of the terms of the encumbrance;
600-14 (2) the selection of a successor trustee if the
600-15 original trustee or a substitute trustee is disqualified or fails
600-16 to act; and
600-17 (3) attorney's fees in an amount not to exceed 10
600-18 percent of the unpaid principal. (V.A.C.S. Art. 1180b, Sec. 6.)
600-19 Sec. 1508.113. NOTICE TO GOVERNING BODY BEFORE FORECLOSURE
600-20 OR OTHER ACTION. (a) Unless written notice is given to the
600-21 governing body of the municipality in accordance with this section
600-22 that there is a default in payment of any installment of principal
600-23 of or interest on an obligation issued under this subchapter or
600-24 another violation of the terms of the pledge or loan:
600-25 (1) a collection fee may not accrue;
600-26 (2) a foreclosure proceeding may not be initiated in a
600-27 court or through a trustee; and
601-1 (3) an option to mature any part of an obligation
601-2 because of the default may not be exercised.
601-3 (b) A notice under Subsection (a) must be sent by prepaid
601-4 registered mail to each member of the governing body of the
601-5 municipality, addressed to the member at the post office in the
601-6 municipality.
601-7 (c) An action described by Subsection (a) may not be taken:
601-8 (1) before the 91st day after the date the notice is
601-9 mailed; or
601-10 (2) if the default that gave rise to the action is
601-11 cured within the time described by Subdivision (1). (V.A.C.S.
601-12 Art. 1180b, Sec. 7.)
601-13 (Sections 1508.114-1508.150 reserved for expansion)
601-14 SUBCHAPTER D. BONDS FOR PARKS AND RECREATIONAL FACILITIES
601-15 IN MUNICIPALITIES WITH POPULATION OF 1.2 MILLION OR MORE
601-16 Sec. 1508.151. APPLICABILITY OF SUBCHAPTER. This subchapter
601-17 applies only to a municipality with a population of 1.2 million or
601-18 more. (V.A.C.S. Art. 1269j-4.15, Sec. 1.)
601-19 Sec. 1508.152. AUTHORITY FOR PARK FACILITIES. (a) A
601-20 municipality may acquire by any means or construct, improve, or
601-21 equip property for park purposes, including establishing,
601-22 acquiring, leasing or contracting for as lessee or lessor,
601-23 constructing, improving, enlarging, equipping, maintaining,
601-24 repairing, or operating:
601-25 (1) a golf course, clubhouse, or pro shop;
601-26 (2) a tennis court or facility;
601-27 (3) a swimming pool;
602-1 (4) a marina;
602-2 (5) a recreation center;
602-3 (6) a rugby field;
602-4 (7) a baseball field;
602-5 (8) a zoo;
602-6 (9) a clarification lake or pool;
602-7 (10) a park transportation system or equipment;
602-8 (11) a theater;
602-9 (12) a bicycle trail;
602-10 (13) a multipurpose shelter;
602-11 (14) a service facility;
602-12 (15) a recreational facility;
602-13 (16) a water, sewer, or drainage facility necessary
602-14 for a facility described by Subdivisions (1)-(15); or
602-15 (17) a structure, area, or facility to be used in
602-16 connection with a facility described by Subdivisions (1)-(15) for
602-17 parking and storage of motor vehicles or other conveyances.
602-18 (b) A municipality may enter into an agreement under which a
602-19 facility described by Subsection (a) is operated on behalf of the
602-20 municipality. (V.A.C.S. Art. 1269j-4.15, Sec. 2 (part).)
602-21 Sec. 1508.153. AUTHORITY TO ISSUE REVENUE BONDS. The
602-22 governing body of a municipality by ordinance may issue revenue
602-23 bonds for a purpose authorized by Section 1508.152. (V.A.C.S.
602-24 Art. 1269j-4.15, Secs. 3 (part), 4(a) (part).)
602-25 Sec. 1508.154. PLEDGE OF REVENUE. A municipality may pledge
602-26 all or part of the revenue, income, or receipts from a facility
602-27 described by Section 1508.152(a) to the payment of bonds, including
603-1 principal, interest, and any other amounts required or permitted in
603-2 connection with the bonds. (V.A.C.S. Art. 1269j-4.15, Secs. 3
603-3 (part), 6(a) (part).)
603-4 Sec. 1508.155. ADDITIONAL SECURITY. (a) The bonds may be
603-5 additionally secured by:
603-6 (1) an encumbrance on any real property relating to a
603-7 facility described by Section 1508.152(a) owned or to be acquired
603-8 by the municipality; or
603-9 (2) an encumbrance on any personal property
603-10 appurtenant to that real property.
603-11 (b) The governing body of the municipality may authorize the
603-12 execution of a trust indenture, mortgage, deed of trust, or other
603-13 form of encumbrance as evidence of the debt.
603-14 (c) The municipality may also pledge to the payment of the
603-15 bonds all or part of any grant, donation, revenue, or income
603-16 received or to be received from the United States or any other
603-17 public or private source. (V.A.C.S. Art. 1269j-4.15, Secs. 6(b),
603-18 (c).)
603-19 Sec. 1508.156. MATURITY. A bond issued under this
603-20 subchapter must mature not later than 40 years after its date.
603-21 (V.A.C.S. Art. 1269j-4.15, Sec. 4(a) (part).)
603-22 Sec. 1508.157. ADDITIONAL BONDS. The ordinance that
603-23 authorizes the issuance of bonds under this subchapter may provide
603-24 for the issuance of additional parity bonds or subordinate lien
603-25 bonds under the terms specified in the ordinance. (V.A.C.S.
603-26 Art. 1269j-4.15, Sec. 4(a) (part).)
603-27 Sec. 1508.158. SALE OF BONDS. A municipality may sell bonds
604-1 issued under this subchapter in the manner and under the terms
604-2 provided in the ordinance authorizing the issuance of the bonds.
604-3 (V.A.C.S. Art. 1269j-4.15, Sec. 4(b) (part).)
604-4 Sec. 1508.159. REVIEW AND APPROVAL OF CONTRACTS BY ATTORNEY
604-5 GENERAL. (a) If the bonds state that they are secured by a pledge
604-6 of revenue or rents from a contract, including a lease contract, a
604-7 copy of the contract and the proceedings relating to it must also
604-8 be submitted to the attorney general.
604-9 (b) If the attorney general finds that the bonds have been
604-10 authorized and the contract has been made in accordance with law,
604-11 the attorney general shall approve the contract.
604-12 (c) After the bonds are approved and registered under
604-13 Chapter 1202 and the contract is approved under Subsection (b), the
604-14 contract is incontestable for any reason and is a binding
604-15 obligation for all purposes in accordance with its terms.
604-16 (V.A.C.S. Art. 1269j-4.15, Sec. 8 (part).)
604-17 Sec. 1508.160. CHARGES. (a) The governing body of a
604-18 municipality may impose and collect charges for the use of a
604-19 facility described by Section 1508.152(a).
604-20 (b) A municipality shall impose and collect charges in an
604-21 amount that will be at least sufficient, with any other pledged
604-22 resources, to provide for the payment of:
604-23 (1) the principal of, interest on, and any other
604-24 amounts required in connection with the bonds; and
604-25 (2) to the extent required by the ordinance
604-26 authorizing the issuance of the bonds:
604-27 (A) expenses incurred in connection with the
605-1 bonds; and
605-2 (B) operation, maintenance, and other expenses
605-3 incurred in connection with the facility. (V.A.C.S.
605-4 Art. 1269j-4.15, Secs. 5, 6(a) (part).)
605-5 Sec. 1508.161. USE OF AD VALOREM TAXES. (a) In addition to
605-6 or instead of a pledge of revenue, a municipality may impose and
605-7 pledge to the payment of any portion of the operation and
605-8 maintenance costs of a facility described by Section 1508.152(a) a
605-9 continuing annual ad valorem tax imposed at a rate sufficient for
605-10 that purpose as provided in the ordinance authorizing the issuance
605-11 of bonds under this subchapter.
605-12 (b) A tax under this section:
605-13 (1) must be imposed at a rate within any limit
605-14 contained in the municipal charter; and
605-15 (2) may not be used for the payment of the principal
605-16 of or interest on the bonds.
605-17 (c) The proceeds of a tax pledged under this section shall
605-18 be used annually, to the extent required by or provided in the
605-19 ordinance authorizing the issuance of the bonds, for the operation
605-20 and maintenance of the facility. (V.A.C.S. Art. 1269j-4.15, Sec.
605-21 4(d).)
605-22 Sec. 1508.162. REFUNDING BONDS. (a) A municipality may
605-23 refund or otherwise refinance bonds issued under this subchapter by
605-24 issuing refunding bonds under any terms provided by the ordinance
605-25 authorizing the issuance of the bonds. All appropriate provisions
605-26 of this subchapter apply to the refunding bonds. The refunding
605-27 bonds shall be issued in the manner provided by this subchapter for
606-1 other bonds.
606-2 (b) The refunding bonds may be sold and delivered in amounts
606-3 necessary to pay the principal of and interest and any redemption
606-4 premium on the bonds to be refunded, at maturity or on any
606-5 redemption date.
606-6 (c) The refunding bonds may be issued to be exchanged for
606-7 the bonds being refunded by them. In that case, the comptroller
606-8 shall register the refunding bonds and deliver them to the holder
606-9 of the bonds being refunded as provided by the ordinance
606-10 authorizing the issuance of the bonds. The exchange may be made in
606-11 one delivery or in installment deliveries. (V.A.C.S.
606-12 Art. 1269j-4.15, Secs. 7(a), (b).)
606-13 Sec. 1508.163. PUBLIC PURPOSE. Each purpose authorized by
606-14 Section 1508.152 is a public purpose and a proper municipal
606-15 function. (V.A.C.S. Art. 1269j-4.15, Sec. 2 (part).)
606-16 Sec. 1508.164. CONFLICT WITH OTHER LAW. When bonds are
606-17 issued under this subchapter, to the extent of any conflict between
606-18 this subchapter and another law or a charter provision of a
606-19 home-rule municipality, this subchapter controls. (V.A.C.S.
606-20 Art. 1269j-4.15, Sec. 10 (part).)
606-21 (Sections 1508.165-1508.200 reserved for expansion)
606-22 SUBCHAPTER E. CERTIFICATES OF INDEBTEDNESS FOR
606-23 SEA LIFE PARK AND OCEANARIUM
606-24 Sec. 1508.201. APPLICABILITY OF SUBCHAPTER. This subchapter
606-25 applies only to a municipality that owns a sea life park and
606-26 oceanarium for which any portion of the costs of construction,
606-27 equipment, or development is paid from the proceeds of general
607-1 obligation park bonds authorized by an election held in the
607-2 municipality. (V.A.C.S. Art. 1269j-4.4, Sec. 1 (part).)
607-3 Sec. 1508.202. AUTHORITY TO ISSUE CERTIFICATES OF
607-4 INDEBTEDNESS. (a) The governing body of a municipality by
607-5 ordinance may issue certificates of indebtedness to obtain money
607-6 to:
607-7 (1) operate, maintain, repair, develop, or expand the
607-8 sea life park and oceanarium;
607-9 (2) acquire equipment and inventories for the sea life
607-10 park and oceanarium;
607-11 (3) pay for services when performed, or for items when
607-12 acquired, for the benefit of the municipality under an agreement
607-13 relating to the development, operation, equipping, staffing, or
607-14 maintenance of the sea life park and oceanarium, including a lease,
607-15 use, purchase, concession, or operating agreement; or
607-16 (4) acquire a facility, asset, or right from an
607-17 operator under Section 1508.206.
607-18 (b) A municipality may issue certificates of indebtedness
607-19 for a purpose described by Subsections (a)(1)-(3) in connection
607-20 with another public facility:
607-21 (1) owned by the municipality in conjunction with the
607-22 sea life park and oceanarium; and
607-23 (2) authorized under Subchapter B, Chapter 305, Local
607-24 Government Code, or Subchapter A, Chapter 1504. (V.A.C.S.
607-25 Art. 1269j-4.4, Secs. 1 (part), 1(a) (part), 2 (part).)
607-26 Sec. 1508.203. SECURITY FOR CERTIFICATES. (a) Certificates
607-27 of indebtedness issued under this subchapter may be secured by and
608-1 made payable from:
608-2 (1) taxes;
608-3 (2) revenue; or
608-4 (3) both taxes and revenue.
608-5 (b) To secure the repayment of certificates of indebtedness
608-6 issued under this subchapter or bonds issued to refund certificates
608-7 of indebtedness issued under this subchapter, the governing body of
608-8 a municipality may:
608-9 (1) pledge any portion of the revenue from the
608-10 ownership or operation of any facility, asset, or right under this
608-11 subchapter; or
608-12 (2) execute a deed of trust or mortgage lien on any
608-13 portion of a facility described by Section 1508.202. (V.A.C.S.
608-14 Art. 1269j-4.4, Secs. 2 (part), 2(a) (part).)
608-15 Sec. 1508.204. SALE OR DELIVERY OF CERTIFICATES. The
608-16 ordinance authorizing the issuance of certificates of indebtedness
608-17 under this subchapter may include provisions for any manner of:
608-18 (1) sale of the certificates;
608-19 (2) exchange of the certificates for property or
608-20 services; or
608-21 (3) delivery of the certificates. (V.A.C.S.
608-22 Art. 1269j-4.4, Sec. 2 (part).)
608-23 Sec. 1508.205. AUTHORITY TO ENTER INTO AGREEMENT REGARDING
608-24 PUBLIC FACILITIES. (a) The governing body of a municipality may
608-25 enter into an agreement relating to the operation, maintenance,
608-26 development, expansion, equipment, or supplying of a public
608-27 facility described by Section 1508.202.
609-1 (b) An agreement authorized by Subsection (a) may be entered
609-2 into only:
609-3 (1) on the issuance of certificates of indebtedness
609-4 under this subchapter; or
609-5 (2) in anticipation of:
609-6 (A) the issuance of certificates of indebtedness
609-7 under this subchapter; or
609-8 (B) the receipt of revenue from a public
609-9 facility instead of the issuance of certificates of indebtedness.
609-10 (c) The agreement may be of a type, on the terms, and
609-11 entered into under procedures that the governing body determines
609-12 best, necessary, and proper.
609-13 (d) The proceeds from the certificates of indebtedness, or
609-14 the revenue received instead of issuing certificates, may be used
609-15 to satisfy an agreement under this section. (V.A.C.S.
609-16 Art. 1269j-4.4, Sec. 6.)
609-17 Sec. 1508.206. ACQUISITION OF PUBLIC FACILITY FROM OPERATOR.
609-18 (a) A municipality may acquire any portion of a public facility
609-19 described by Section 1508.202, or an asset or right related to the
609-20 facility, including broadcasting or similar rights, from a person
609-21 or corporation that operates any portion of the facility on behalf
609-22 of the municipality under an agreement, including a lease, use,
609-23 purchase, concession, or operating agreement, if:
609-24 (1) the governing body of the municipality determines
609-25 that the facility could be better and more efficiently operated
609-26 directly by the municipality or through another method; and
609-27 (2) the person or corporation consents to the
610-1 acquisition.
610-2 (b) The method used by the municipality to operate the
610-3 facility may include the use of an operating board appointed by the
610-4 governing body, with the board's powers granted by ordinance or
610-5 another method.
610-6 (c) A facility, asset, or right acquired under this section
610-7 may be used or sold by the municipality. In conjunction with the
610-8 use or sale, the municipality may promote or advertise:
610-9 (1) the municipality;
610-10 (2) the facility; or
610-11 (3) an event conducted in or in connection with the
610-12 facility. (V.A.C.S. Art. 1269j-4.4, Sec. 1(a) (part).)
610-13 Sec. 1508.207. DISCONTINUATION OF SEA LIFE PARK AND
610-14 OCEANARIUM; SALE OR LEASE OF SURPLUS PROPERTY. (a) The governing
610-15 body of a municipality by ordinance may abandon the use of property
610-16 for a sea life park and oceanarium and sell or lease the property
610-17 for any purpose the governing body determines is appropriate and in
610-18 the interest of the residents of the municipality if:
610-19 (1) the property was partly or wholly financed under
610-20 this subchapter; and
610-21 (2) the governing body finds that use of the property
610-22 as a sea life park and oceanarium should be abandoned because:
610-23 (A) the sea life park and oceanarium is no
610-24 longer economically feasible; and
610-25 (B) the continued use of the property as a sea
610-26 life park and oceanarium would be unprofitable.
610-27 (b) The municipality must sell property under this section
611-1 only to the highest and best bidder as required for other property
611-2 sold by the municipality.
611-3 (c) The municipality may lease property under this section
611-4 for another purpose for a term and under such other provisions as
611-5 agreed to by the governing body.
611-6 (d) The municipality shall apply rent received under a lease
611-7 under Subsection (c) as required by any ordinance authorizing the
611-8 issuance of certificates of indebtedness secured in whole or in
611-9 part by revenue derived from the sea life park and oceanarium.
611-10 (V.A.C.S. Art. 1269j-4.4, Sec. 6a (part).)
611-11 Sec. 1508.208. CONFLICT WITH OTHER LAW. When any
611-12 certificates of indebtedness are being issued or any act or
611-13 contract is undertaken under this subchapter, to the extent of any
611-14 conflict between this subchapter and another law applicable to the
611-15 municipality, this subchapter controls. (V.A.C.S. Art. 1269j-4.4,
611-16 Sec. 7 (part).)
611-17 CHAPTER 1509. OBLIGATIONS FOR OTHER MUNICIPAL PURPOSES
611-18 SUBCHAPTER A. BONDS FOR FACILITIES TO BE SOLD OR LEASED
611-19 TO PUBLIC OR PRIVATE ENTITIES
611-20 Sec. 1509.001. AUTHORITY TO ACQUIRE PROPERTY FOR LEASE
611-21 TO PUBLIC OR PRIVATE ENTITY
611-22 Sec. 1509.002. AUTHORITY TO ACQUIRE PROPERTY FOR SALE OR
611-23 LEASE TO INSTITUTION OF HIGHER EDUCATION
611-24 Sec. 1509.003. AUTHORITY TO ISSUE BONDS
611-25 Sec. 1509.004. BOND PAYMENTS FROM REVENUE OR TAXES
611-26 Sec. 1509.005. ELECTION REQUIRED TO SECURE BONDS
611-27 WITH TAX REVENUE
612-1 Sec. 1509.006. CONTENTS OF ORDINANCE, ORDER, OR RESOLUTION
612-2 AUTHORIZING BONDS
612-3 Sec. 1509.007. ADOPTION AND EXECUTION OF DOCUMENTS
612-4 Sec. 1509.008. MATURITY
612-5 Sec. 1509.009. IMPOSITION OF TAX
612-6 Sec. 1509.010. GRANTS FOR PRISONS OR LAW ENFORCEMENT
612-7 FACILITIES NOT PROHIBITED
612-8 (Sections 1509.011-1509.050 reserved for expansion)
612-9 SUBCHAPTER B. BONDS FOR FIRE-FIGHTING EQUIPMENT IN
612-10 MUNICIPALITIES WITH POPULATION OF LESS THAN 5,000
612-11 Sec. 1509.051. APPLICABILITY OF SUBCHAPTER
612-12 Sec. 1509.052. AUTHORITY TO ISSUE BONDS
612-13 (Sections 1509.053-1509.100 reserved for expansion)
612-14 SUBCHAPTER C. BONDS FOR FARMERS' MARKETS IN
612-15 MUNICIPALITIES WITH POPULATION OF MORE THAN 650,000
612-16 Sec. 1509.101. APPLICABILITY OF SUBCHAPTER
612-17 Sec. 1509.102. DEFINITION
612-18 Sec. 1509.103. AUTHORITY FOR FARMERS' MARKET
612-19 Sec. 1509.104. AUTHORITY TO ISSUE REVENUE BONDS
612-20 Sec. 1509.105. PLEDGE OF REVENUE
612-21 Sec. 1509.106. ADDITIONAL SECURITY
612-22 Sec. 1509.107. MATURITY
612-23 Sec. 1509.108. ADDITIONAL BONDS
612-24 Sec. 1509.109. SALE OF BONDS
612-25 Sec. 1509.110. REVIEW AND APPROVAL OF CONTRACTS RELATING
612-26 TO BONDS
612-27 Sec. 1509.111. CHARGES
613-1 Sec. 1509.112. REFUNDING BONDS
613-2 Sec. 1509.113. PUBLIC PURPOSE
613-3 Sec. 1509.114. CONFLICT WITH OTHER LAW
613-4 (Sections 1509.115-1509.150 reserved for expansion)
613-5 SUBCHAPTER D. BONDS FOR GARBAGE RECLAMATION PROJECTS
613-6 Sec. 1509.151. DEFINITION
613-7 Sec. 1509.152. AUTHORITY FOR GARBAGE RECLAMATION
613-8 PROJECTS
613-9 Sec. 1509.153. AUTHORITY TO ISSUE BONDS
613-10 Sec. 1509.154. BOND PAYMENTS FROM REVENUE OR TAXES
613-11 Sec. 1509.155. ADDITIONAL SECURITY
613-12 Sec. 1509.156. ELECTION
613-13 Sec. 1509.157. BALLOT PROPOSITION
613-14 Sec. 1509.158. CONTENTS OF ORDER OR RESOLUTION
613-15 AUTHORIZING BONDS
613-16 Sec. 1509.159. ADOPTION AND EXECUTION OF DOCUMENTS
613-17 Sec. 1509.160. MATURITY
613-18 Sec. 1509.161. IMPOSITION OF TAX
613-19 Sec. 1509.162. REFUNDING BONDS
613-20 Sec. 1509.163. EXEMPTION FROM TAXATION
613-21 (Sections 1509.164-1509.200 reserved for expansion)
613-22 SUBCHAPTER E. BONDS FOR ACQUISITION OF PROPERTY BY
613-23 MUNICIPALITY OPERATING TOLL BRIDGE OVER RIO GRANDE
613-24 Sec. 1509.201. APPLICABILITY OF SUBCHAPTER
613-25 Sec. 1509.202. AUTHORITY FOR PROPERTY, FACILITY, OR
613-26 ACTIVITY
613-27 Sec. 1509.203. AUTHORITY TO ISSUE REVENUE BONDS
614-1 Sec. 1509.204. PLEDGE OF REVENUE
614-2 Sec. 1509.205. ADDITIONAL SECURITY
614-3 Sec. 1509.206. BONDS NOT PAYABLE FROM TAXES
614-4 Sec. 1509.207. MATURITY
614-5 Sec. 1509.208. ADDITIONAL BONDS
614-6 Sec. 1509.209. SALE OF BONDS
614-7 Sec. 1509.210. CHARGES
614-8 Sec. 1509.211. LEASE OR RENTAL OF PROPERTY OR FACILITY TO
614-9 UNITED STATES
614-10 Sec. 1509.212. REFUNDING BONDS
614-11 Sec. 1509.213. PUBLIC PURPOSE
614-12 Sec. 1509.214. CONFLICT WITH OTHER LAW
614-13 (Sections 1509.215-1509.250 reserved for expansion)
614-14 SUBCHAPTER F. ENCUMBRANCE OF SLAUGHTERHOUSES IN CERTAIN
614-15 COASTAL MUNICIPALITIES
614-16 Sec. 1509.251. APPLICABILITY OF SUBCHAPTER
614-17 Sec. 1509.252. ENCUMBRANCE OF SLAUGHTERHOUSE
614-18 Sec. 1509.253. OBLIGATIONS NOT DEBT OF MUNICIPALITY
614-19 Sec. 1509.254. ELECTION NOT REQUIRED FOR CERTAIN
614-20 OBLIGATIONS
614-21 (Sections 1509.255-1509.900 reserved for expansion)
614-22 SUBCHAPTER Z. MISCELLANEOUS PROVISIONS
614-23 Sec. 1509.901. PLEDGE OF REVENUE FROM TOLL BRIDGE
614-24 CONTRACT
614-25 Sec. 1509.902. AUTHORITY TO ISSUE BONDS PAYABLE FROM TOLL
614-26 BRIDGE REVENUE; PLEDGE OF TOLL BRIDGE
614-27 REVENUE
615-1 CHAPTER 1509. OBLIGATIONS FOR OTHER MUNICIPAL PURPOSES
615-2 SUBCHAPTER A. BONDS FOR FACILITIES TO BE SOLD OR LEASED
615-3 TO PUBLIC OR PRIVATE ENTITIES
615-4 Sec. 1509.001. AUTHORITY TO ACQUIRE PROPERTY FOR LEASE TO
615-5 PUBLIC OR PRIVATE ENTITY. (a) A municipality may acquire land and
615-6 may construct or acquire a building or other facility for the
615-7 purpose of leasing the land, building, or other facility to:
615-8 (1) a political subdivision or state agency for public
615-9 use; or
615-10 (2) an individual, private corporation, or other
615-11 private entity for use in manufacturing or another commercial
615-12 activity.
615-13 (b) A municipality may not acquire land under Subsection (a)
615-14 by eminent domain. (V.A.C.S. Art. 835s, Sec. 2.)
615-15 Sec. 1509.002. AUTHORITY TO ACQUIRE PROPERTY FOR SALE OR
615-16 LEASE TO INSTITUTION OF HIGHER EDUCATION. (a) In this section,
615-17 "institution of higher education" has the meaning assigned by
615-18 Section 61.003, Education Code.
615-19 (b) This section applies only to a municipality that:
615-20 (1) has a population of more than 8,000 but less than
615-21 10,000; and
615-22 (2) is located in two counties with populations of
615-23 225,000 or more but less than 2,818,199.
615-24 (c) A municipality may acquire land and may construct or
615-25 acquire a building or other facility for the purpose of selling or
615-26 leasing the land, building, or other facility to an institution of
615-27 higher education that will provide a significant number of
616-1 vocational and vocational-technical education courses in the
616-2 facility for public use.
616-3 (d) The municipality may sell or lease the property:
616-4 (1) without public notice or bidding; and
616-5 (2) on terms the governing body of the municipality
616-6 finds acceptable.
616-7 (e) A municipality may not acquire land under this section
616-8 by eminent domain.
616-9 (f) A sale under Subsection (c) may be by an installment
616-10 sale agreement or otherwise. (V.A.C.S. Art. 835s, Sec. 2A.)
616-11 Sec. 1509.003. AUTHORITY TO ISSUE BONDS. To develop and
616-12 diversify the economy of this state and eliminate unemployment or
616-13 underemployment in this state under the authority granted by
616-14 Section 52-a, Article III, Texas Constitution, a municipality may
616-15 issue and sell bonds to finance an action taken under Section
616-16 1509.001 or 1509.002. (V.A.C.S. Art. 835s, Secs. 1 (part), 3.)
616-17 Sec. 1509.004. BOND PAYMENTS FROM REVENUE OR TAXES. (a) A
616-18 municipality may provide for payment of the principal of and
616-19 interest on bonds issued under this subchapter by:
616-20 (1) pledging all or part of the revenue from the sale
616-21 or lease of all or part of the land, building, or other facility
616-22 financed by the bonds, after deduction of reasonable operation and
616-23 maintenance costs;
616-24 (2) imposing an annual ad valorem tax; or
616-25 (3) combining those sources.
616-26 (b) A municipality with a population of 80,000 or more may
616-27 also provide for the payment of the principal of or interest on the
617-1 bonds by pledging all or any part of other municipal revenue that
617-2 is not prohibited from being used for that payment. (V.A.C.S.
617-3 Art. 835s, Sec. 4.)
617-4 Sec. 1509.005. ELECTION REQUIRED TO SECURE BONDS WITH TAX
617-5 REVENUE. Bonds to be issued under this subchapter that are payable
617-6 in whole or in part from ad valorem taxes must be approved, before
617-7 issuance, by a vote of a majority of the registered voters of the
617-8 municipality voting on the issue. (V.A.C.S. Art. 835s, Sec. 5(a).)
617-9 Sec. 1509.006. CONTENTS OF ORDINANCE, ORDER, OR RESOLUTION
617-10 AUTHORIZING BONDS. (a) In the ordinance, order, or resolution
617-11 authorizing the issuance of bonds under this subchapter, the
617-12 governing body of a municipality may provide for the deposit and
617-13 accounting of money and the establishment and maintenance of an
617-14 interest and sinking fund, a reserve fund, or another fund.
617-15 (b) The ordinance, order, or resolution may make additional
617-16 covenants relating to the bonds, the pledged revenue, or the
617-17 operation and maintenance of any land, building, or other facility
617-18 the revenue of which is pledged for bond payments. (V.A.C.S.
617-19 Art. 835s, Sec. 6(c).)
617-20 Sec. 1509.007. ADOPTION AND EXECUTION OF DOCUMENTS. The
617-21 governing body of a municipality may adopt and have executed any
617-22 proceeding or instrument necessary and convenient in:
617-23 (1) the issuance of bonds under this subchapter; or
617-24 (2) the acquisition and sale or lease of any land,
617-25 building, or other facility under Section 1509.001 or 1509.002.
617-26 (V.A.C.S. Art. 835s, Sec. 7.)
617-27 Sec. 1509.008. MATURITY. A bond issued under this
618-1 subchapter must mature not later than 40 years after its date.
618-2 (V.A.C.S. Art. 835s, Sec. 6(b) (part).)
618-3 Sec. 1509.009. IMPOSITION OF TAX. (a) The governing body
618-4 of a municipality may annually impose ad valorem taxes to pay the
618-5 principal of and interest on bonds issued under this subchapter
618-6 that are payable in whole or in part from ad valorem taxes only if
618-7 the taxes are approved at an election held under Section 1509.005.
618-8 (b) A municipality may not impose ad valorem taxes to pay
618-9 the principal of or interest on bonds issued under this subchapter
618-10 payable wholly from revenue from one or more leases or other
618-11 contracts made under this subchapter. (V.A.C.S. Art. 835s, Sec.
618-12 10.)
618-13 Sec. 1509.010. GRANTS FOR PRISONS OR LAW ENFORCEMENT
618-14 FACILITIES NOT PROHIBITED. This subchapter does not prohibit a
618-15 municipality from making a grant of money or property to an agency
618-16 of this state to assist the agency in acquiring or developing a
618-17 site for a prison or other law enforcement detention facility,
618-18 regardless of whether the site is located inside or outside the
618-19 municipal boundaries. (V.A.C.S. Art. 835s, Sec. 11.)
618-20 (Sections 1509.011-1509.050 reserved for expansion)
618-21 SUBCHAPTER B. BONDS FOR FIRE-FIGHTING EQUIPMENT IN
618-22 MUNICIPALITIES WITH POPULATION OF LESS THAN 5,000
618-23 Sec. 1509.051. APPLICABILITY OF SUBCHAPTER. This subchapter
618-24 applies only to a municipality with a population of less than
618-25 5,000. (V.A.C.S. Art. 835n (part).)
618-26 Sec. 1509.052. AUTHORITY TO ISSUE BONDS. A municipality
618-27 may, in compliance with Subtitles A and C, issue bonds to purchase
619-1 fire-fighting equipment. (V.A.C.S. Art. 835n (part).)
619-2 (Sections 1509.053-1509.100 reserved for expansion)
619-3 SUBCHAPTER C. BONDS FOR FARMERS' MARKETS IN MUNICIPALITIES
619-4 WITH POPULATION OF MORE THAN 650,000
619-5 Sec. 1509.101. APPLICABILITY OF SUBCHAPTER. This subchapter
619-6 applies only to a municipality with a population of more than
619-7 650,000. (V.A.C.S. Art. 1269j-4.9, Sec. 2.)
619-8 Sec. 1509.102. DEFINITION. In this subchapter, "farmers'
619-9 market" means a public marketplace where a person is permitted to
619-10 sell agricultural and other products. (V.A.C.S. Art. 1269j-4.9,
619-11 Sec. 1.)
619-12 Sec. 1509.103. AUTHORITY FOR FARMERS' MARKET. A
619-13 municipality may:
619-14 (1) acquire, lease as lessor or lessee, construct,
619-15 improve, enlarge, or operate a farmers' market; and
619-16 (2) contract with any public or private entity to
619-17 perform any function authorized by this section. (V.A.C.S.
619-18 Art. 1269j-4.9, Sec. 3.)
619-19 Sec. 1509.104. AUTHORITY TO ISSUE REVENUE BONDS. The
619-20 governing body of a municipality may issue revenue bonds for a
619-21 purpose authorized by Section 1509.103. (V.A.C.S. Art. 1269j-4.9,
619-22 Sec. 4 (part).)
619-23 Sec. 1509.105. PLEDGE OF REVENUE. A municipality may pledge
619-24 all or part of the revenue, income, or receipts from the farmers'
619-25 market to the payment of the bonds, including principal, interest,
619-26 and any other amounts required or permitted in connection with the
619-27 bonds. (V.A.C.S. Art. 1269j-4.9, Secs. 4 (part), 7(a) (part).)
620-1 Sec. 1509.106. ADDITIONAL SECURITY. (a) Bonds issued under
620-2 this subchapter may be additionally secured by:
620-3 (1) an encumbrance on any real property relating to a
620-4 farmers' market owned or to be acquired by the municipality;
620-5 (2) an encumbrance on any personal property
620-6 appurtenant to real property described by Subdivision (1); or
620-7 (3) a pledge of any portion of a grant, donation, or
620-8 revenue, or income received or to be received from the United
620-9 States or any other public or private source.
620-10 (b) The governing body of the municipality may authorize the
620-11 execution of a trust indenture, mortgage, deed of trust, or other
620-12 instrument as evidence of the encumbrance. (V.A.C.S.
620-13 Art. 1269j-4.9, Secs. 7(b), (c).)
620-14 Sec. 1509.107. MATURITY. A bond issued under this
620-15 subchapter must mature not later than 40 years after its date.
620-16 (V.A.C.S. Art. 1269j-4.9, Sec. 5(a) (part).)
620-17 Sec. 1509.108. ADDITIONAL BONDS. The ordinance authorizing
620-18 the issuance of bonds under this subchapter may provide for the
620-19 subsequent issuance of additional parity bonds or subordinate lien
620-20 bonds under terms specified in the ordinance. (V.A.C.S.
620-21 Art. 1269j-4.9, Sec. 5(a) (part).)
620-22 Sec. 1509.109. SALE OF BONDS. A municipality may sell bonds
620-23 issued under this subchapter in the manner and under the terms
620-24 provided by the ordinance authorizing the issuance of the bonds.
620-25 (V.A.C.S. Art. 1269j-4.9, Sec. 5(b) (part).)
620-26 Sec. 1509.110. REVIEW AND APPROVAL OF CONTRACTS RELATING TO
620-27 BONDS. (a) If bonds issued under this subchapter state that the
621-1 bonds are secured by a pledge of revenue or rents from a contract,
621-2 including a lease contract, a copy of the contract and the
621-3 proceedings related to it must be submitted to the attorney
621-4 general.
621-5 (b) If the attorney general finds that the bonds have been
621-6 authorized and the contract has been made in accordance with law,
621-7 the attorney general shall approve the contract.
621-8 (c) After the bonds are approved and registered as provided
621-9 by Chapter 1202 and the contract is approved under Subsection (b),
621-10 the contract is incontestable in a court or other forum for any
621-11 reason and is a valid and binding obligation for all purposes in
621-12 accordance with its terms. (V.A.C.S. Art. 1269j-4.9, Sec. 10
621-13 (part).)
621-14 Sec. 1509.111. CHARGES. (a) The governing body of a
621-15 municipality may impose and collect charges for the use or
621-16 availability of the farmers' market.
621-17 (b) The municipality shall impose and collect pledged
621-18 charges in an amount that will be at least sufficient, with any
621-19 other pledged resources, to provide for the payment of:
621-20 (1) the principal of, interest on, and any other
621-21 amounts required in connection with the bonds; and
621-22 (2) to the extent required by the ordinance
621-23 authorizing the issuance of the bonds:
621-24 (A) expenses incurred in connection with the
621-25 bonds; and
621-26 (B) operation, maintenance, and other expenses
621-27 incurred in connection with the farmers' market. (V.A.C.S.
622-1 Art. 1269j-4.9, Secs. 6, 7(a) (part).)
622-2 Sec. 1509.112. REFUNDING BONDS. (a) A municipality may
622-3 refund or otherwise refinance bonds issued under this subchapter by
622-4 issuing refunding bonds under any terms provided by an ordinance of
622-5 the governing body of the municipality.
622-6 (b) All appropriate provisions of this subchapter apply to
622-7 the refunding bonds. The refunding bonds shall be issued in the
622-8 manner provided by this subchapter for other bonds.
622-9 (c) The refunding bonds may be sold and delivered in amounts
622-10 sufficient to pay the principal of and interest and any redemption
622-11 premium on the bonds to be refunded, at maturity or on any
622-12 redemption date.
622-13 (d) The refunding bonds may be issued to be exchanged for
622-14 the bonds to be refunded by them. In that case, the comptroller
622-15 shall register the refunding bonds and deliver them to the holder
622-16 of the bonds to be refunded as provided by the ordinance
622-17 authorizing the refunding bonds. The exchange may be made in one
622-18 delivery or in installment deliveries. (V.A.C.S. Art. 1269j-4.9,
622-19 Secs. 9(a), (b).)
622-20 Sec. 1509.113. PUBLIC PURPOSE. The acquisition,
622-21 construction, improvement, enlargement, equipment, operation, or
622-22 maintenance of property or a facility for providing a farmers'
622-23 market is a public purpose and a proper municipal function.
622-24 (V.A.C.S. Art. 1269j-4.9, Sec. 8.)
622-25 Sec. 1509.114. CONFLICT WITH OTHER LAW. When bonds are
622-26 issued under this subchapter, to the extent of any conflict between
622-27 this subchapter and another law, this subchapter controls.
623-1 (V.A.C.S. Art. 1269j-4.9, Sec. 12 (part).)
623-2 (Sections 1509.115-1509.150 reserved for expansion)
623-3 SUBCHAPTER D. BONDS FOR GARBAGE RECLAMATION PROJECTS
623-4 Sec. 1509.151. DEFINITION. In this chapter, "garbage
623-5 reclamation project" means an undertaking by which solid waste
623-6 products are converted into a form usable by persons for any
623-7 purpose, including the production of energy. (V.A.C.S.
623-8 Art. 4477-7b, Sec. 1(2).)
623-9 Sec. 1509.152. AUTHORITY FOR GARBAGE RECLAMATION PROJECTS.
623-10 A municipality may own and operate a garbage reclamation project.
623-11 (V.A.C.S. Art. 4477-7b, Sec. 2.)
623-12 Sec. 1509.153. AUTHORITY TO ISSUE BONDS. If necessary to
623-13 exercise the authority granted by Section 1509.152, the governing
623-14 body of a municipality may issue and sell bonds to finance:
623-15 (1) the purchase, lease, or acquisition by another
623-16 method of land, a facility, equipment, or supplies;
623-17 (2) the construction or improvement of a facility; and
623-18 (3) the installation of equipment. (V.A.C.S.
623-19 Art. 4477-7b, Sec. 3.)
623-20 Sec. 1509.154. BOND PAYMENTS FROM REVENUE OR TAXES. The
623-21 governing body of the municipality may provide for payment of the
623-22 principal of and interest on bonds issued under this subchapter by:
623-23 (1) pledging all or part of the revenue from the
623-24 ownership or operation of a garbage reclamation project;
623-25 (2) imposing an ad valorem tax; or
623-26 (3) combining those sources. (V.A.C.S. Art. 4477-7b,
623-27 Sec. 4.)
624-1 Sec. 1509.155. ADDITIONAL SECURITY. (a) Bonds issued under
624-2 this subchapter may be secured additionally by an encumbrance on
624-3 part or all of the physical property of the garbage reclamation
624-4 project and each right relating to that property, vesting in the
624-5 trustee the power to:
624-6 (1) operate the property;
624-7 (2) sell the property to pay the debt; or
624-8 (3) take any other action to secure the bonds.
624-9 (b) Regardless of an encumbrance on the property, a trust
624-10 indenture on the property may:
624-11 (1) contain any provision that the governing body of
624-12 the municipality prescribes for the security of the bonds and the
624-13 preservation of the trust estate;
624-14 (2) provide for amendment or modification of the trust
624-15 indenture; and
624-16 (3) provide for investment of revenue from the garbage
624-17 reclamation project.
624-18 (c) A purchaser under a sale under the encumbrance of the
624-19 property:
624-20 (1) is the absolute owner of the property and the
624-21 rights purchased; and
624-22 (2) may maintain and operate the property. (V.A.C.S.
624-23 Art. 4477-7b, Sec. 5.)
624-24 Sec. 1509.156. ELECTION. (a) The governing body of the
624-25 municipality may not issue bonds under this subchapter unless the
624-26 issuance is authorized by a majority of the qualified voters of the
624-27 municipality voting at an election held for that purpose.
625-1 (b) The governing body shall hold the election, to the
625-2 extent practicable, in compliance with Chapter 1251. (V.A.C.S.
625-3 Art. 4477-7b, Secs. 6(a), (b).)
625-4 Sec. 1509.157. BALLOT PROPOSITION. (a) At an election to
625-5 authorize bonds payable wholly from revenue from the garbage
625-6 reclamation project, the ballots shall be printed to provide for
625-7 voting for or against the proposition: "The issuance of bonds for a
625-8 garbage reclamation project in the amount of $__________ and the
625-9 pledge of net revenue from the project for the payment of the
625-10 bonds."
625-11 (b) At an election to authorize bonds payable wholly from ad
625-12 valorem taxes, the ballots shall be printed to provide for voting
625-13 for or against the proposition: "The issuance of bonds for a
625-14 garbage reclamation project in the amount of $__________ and the
625-15 imposition of taxes for payment of the bonds."
625-16 (c) At an election to authorize bonds payable from both
625-17 revenue from the garbage reclamation project and ad valorem taxes,
625-18 the ballots shall be printed to provide for voting for or against
625-19 the proposition: "The issuance of bonds for a garbage reclamation
625-20 project in the amount of $__________ and the pledge of net revenue
625-21 and the imposition of ad valorem taxes adequate to provide for the
625-22 payment of the bonds." (V.A.C.S. Art. 4477-7b, Sec. 6(c).)
625-23 Sec. 1509.158. CONTENTS OF ORDER OR RESOLUTION AUTHORIZING
625-24 BONDS. (a) An order or resolution of the governing body of the
625-25 municipality authorizing the issuance of bonds under this
625-26 subchapter may provide for the flow of funds and the establishment
625-27 and maintenance of an interest and sinking fund, a reserve fund, or
626-1 another fund.
626-2 (b) The order or resolution may:
626-3 (1) prohibit the further issuance of bonds or other
626-4 obligations payable from the pledged revenue; or
626-5 (2) reserve the right to issue additional bonds to be
626-6 secured by a pledge of and payable from the revenue that are on a
626-7 parity with, or subordinate to, the lien and pledge on the revenue
626-8 being used to support the bonds being issued.
626-9 (c) The order or resolution may contain any other provision
626-10 or covenant, including a covenant with respect to the bonds, the
626-11 pledged revenue, or the operation and maintenance of the garbage
626-12 reclamation project the revenue of which is pledged. (V.A.C.S.
626-13 Art. 4477-7b, Secs. 8(a), (b), (c).)
626-14 Sec. 1509.159. ADOPTION AND EXECUTION OF DOCUMENTS. The
626-15 governing body of the municipality may adopt and have executed any
626-16 other proceeding or instrument necessary and convenient in the
626-17 issuance of bonds under this subchapter. (V.A.C.S. Art. 4477-7b,
626-18 Sec. 8(d).)
626-19 Sec. 1509.160. MATURITY. A bond issued under this
626-20 subchapter must mature not later than 40 years after its date.
626-21 (V.A.C.S. Art. 4477-7b, Secs. 7(b) (part), 10(b) (part).)
626-22 Sec. 1509.161. IMPOSITION OF TAX. (a) The governing body
626-23 of the municipality may annually impose ad valorem taxes to pay
626-24 bonds issued under this subchapter that are payable in whole or in
626-25 part from ad valorem taxes.
626-26 (b) The governing body may not impose ad valorem taxes to
626-27 pay the principal of or interest on bonds issued under this
627-1 subchapter payable wholly from revenue from a garbage reclamation
627-2 project. (V.A.C.S. Art. 4477-7b, Sec. 14.)
627-3 Sec. 1509.162. REFUNDING BONDS. (a) A municipality may
627-4 issue refunding bonds to refund all or any part of its outstanding
627-5 bonds issued under this subchapter, including matured but unpaid
627-6 interest coupons. The comptroller shall register refunding bonds
627-7 on the surrender and cancellation of the bonds being refunded. The
627-8 refunding may take place in one delivery or in installment
627-9 deliveries.
627-10 (b) The refunding bonds may be payable from the same sources
627-11 as the bonds to be refunded or from other additional sources.
627-12 (c) A municipality may, in the order or resolution
627-13 authorizing the issuance of the refunding bonds, provide for the
627-14 sale of the refunding bonds and the deposit of the proceeds in the
627-15 place at which the bonds to be refunded are payable. In that case,
627-16 the refunding bonds may be issued before the cancellation of the
627-17 bonds to be refunded.
627-18 (d) If refunding bonds are issued before cancellation of the
627-19 bonds to be refunded, the municipality shall deposit an amount
627-20 sufficient to pay the principal of and interest on the bonds to be
627-21 refunded to their maturity dates, or to their option dates if the
627-22 bonds have been called for payment before maturity according to
627-23 their terms, in each place at which the bonds to be refunded are
627-24 payable. The comptroller shall register the refunding bonds
627-25 without the surrender and cancellation of bonds to be refunded.
627-26 (V.A.C.S. Art. 4477-7b, Secs. 10(a), (c), (d) (part), (e), (f)
627-27 (part).)
628-1 Sec. 1509.163. EXEMPTION FROM TAXATION. A bond issued under
628-2 this subchapter, any transaction related to the bond, and profits
628-3 made in the sale of the bond are exempt from taxation by this state
628-4 or by a municipality or other political subdivision of this state.
628-5 (V.A.C.S. Art. 4477-7b, Sec. 13 (part).)
628-6 (Sections 1509.164-1509.200 reserved for expansion)
628-7 SUBCHAPTER E. BONDS FOR ACQUISITION OF PROPERTY BY
628-8 MUNICIPALITY OPERATING TOLL BRIDGE OVER RIO GRANDE
628-9 Sec. 1509.201. APPLICABILITY OF SUBCHAPTER. This subchapter
628-10 applies only to a municipality that owns and operates a portion of
628-11 a toll bridge over the Rio Grande. (V.A.C.S. Art. 1015g-4,
628-12 Sec. 1.)
628-13 Sec. 1509.202. AUTHORITY FOR PROPERTY, FACILITY, OR
628-14 ACTIVITY. A municipality may acquire, construct, improve, enlarge,
628-15 equip, operate, or maintain property, a facility, or an activity
628-16 for a public purpose. (V.A.C.S. Art. 1015g-4, Sec. 2.)
628-17 Sec. 1509.203. AUTHORITY TO ISSUE REVENUE BONDS. To provide
628-18 money to acquire, construct, improve, enlarge, or equip property or
628-19 a facility for a public purpose, the governing body of a
628-20 municipality may issue revenue bonds that are payable from and
628-21 secured by a lien on and pledge of all or any part of the revenue,
628-22 income, or receipts the municipality receives from its ownership
628-23 and operation of:
628-24 (1) a portion of a toll bridge over the Rio Grande; or
628-25 (2) property, a facility, or an activity. (V.A.C.S.
628-26 Art. 1015g-4, Sec. 3.)
628-27 Sec. 1509.204. PLEDGE OF REVENUE. A municipality may pledge
629-1 to the payment of bonds issued under this subchapter, including the
629-2 principal of, interest on, or another amount required or permitted
629-3 to be paid in connection with the bonds, all or any part of its
629-4 revenue, income, or receipts from:
629-5 (1) a charge authorized by Section 1509.210; or
629-6 (2) another resource. (V.A.C.S. Art. 1015g-4, Sec.
629-7 6(a) (part).)
629-8 Sec. 1509.205. ADDITIONAL SECURITY. (a) Bonds issued under
629-9 this subchapter may be additionally secured by:
629-10 (1) an encumbrance on any real property owned by the
629-11 municipality;
629-12 (2) an encumbrance on any personal property
629-13 appurtenant to that real property; or
629-14 (3) a pledge of any portion of a grant, donation,
629-15 revenue, or income received or to be received from the United
629-16 States or any other public or private source.
629-17 (b) The governing body of the municipality may authorize the
629-18 execution of a trust indenture, mortgage, deed of trust, or other
629-19 instrument as evidence of the encumbrance. (V.A.C.S. Art. 1015g-4,
629-20 Secs. 6(b), (c).)
629-21 Sec. 1509.206. BONDS NOT PAYABLE FROM TAXES. A bond issued
629-22 under this subchapter:
629-23 (1) is payable only from the revenue, income,
629-24 receipts, or another resource of the municipality as provided by
629-25 this subchapter; and
629-26 (2) is not a tax obligation of the municipality.
629-27 (V.A.C.S. Art. 1015g-4, Sec. 8.)
630-1 Sec. 1509.207. MATURITY. A bond issued under this
630-2 subchapter must mature not later than 50 years after its date.
630-3 (V.A.C.S. Art. 1015g-4, Sec. 4(a) (part).)
630-4 Sec. 1509.208. ADDITIONAL BONDS. The ordinance authorizing
630-5 the issuance of bonds under this subchapter may provide for the
630-6 subsequent issuance of additional parity or subordinate lien bonds
630-7 under terms specified in the ordinance. (V.A.C.S. Art. 1015g-4,
630-8 Sec. 4(a) (part).)
630-9 Sec. 1509.209. SALE OF BONDS. A municipality may sell bonds
630-10 issued under this subchapter in the manner and on the terms
630-11 provided by the bond authorization. (V.A.C.S. Art. 1015g-4, Sec.
630-12 4(b) (part).)
630-13 Sec. 1509.210. CHARGES. (a) The governing body of the
630-14 municipality may impose and collect a charge for the use or
630-15 availability of:
630-16 (1) municipal property, including a toll bridge or
630-17 other facility; or
630-18 (2) a municipal activity or operation.
630-19 (b) The governing body shall impose and collect pledged
630-20 charges in an amount that will be at least sufficient, with any
630-21 other pledged resource, to provide for the payment of:
630-22 (1) the principal of, interest on, and any other
630-23 amount required in connection with the bonds; and
630-24 (2) to the extent required by the ordinance
630-25 authorizing the issuance of the bonds:
630-26 (A) expenses incurred in connection with the
630-27 bonds; and
631-1 (B) operation, maintenance, and other expenses
631-2 incurred in connection with the property, toll bridge, or other
631-3 facility. (V.A.C.S. Art. 1015g-4, Secs. 5, 6(a) (part).)
631-4 Sec. 1509.211. LEASE OR RENTAL OF PROPERTY OR FACILITY TO
631-5 UNITED STATES. The municipality may lease or rent to the United
631-6 States any property or facility acquired, constructed, improved,
631-7 enlarged, or equipped in whole or in part with proceeds from the
631-8 sale of bonds issued under this subchapter. (V.A.C.S.
631-9 Art. 1015g-4, Sec. 7 (part).)
631-10 Sec. 1509.212. REFUNDING BONDS. (a) A municipality may
631-11 refund or otherwise refinance bonds issued under this subchapter by
631-12 issuing refunding bonds under any terms provided by an ordinance of
631-13 the governing body of the municipality.
631-14 (b) All appropriate provisions of this subchapter apply to
631-15 the refunding bonds. The refunding bonds shall be issued in the
631-16 manner provided by this subchapter for other bonds.
631-17 (c) The refunding bonds may be sold and delivered in amounts
631-18 sufficient to pay the principal of and interest and any redemption
631-19 premium on the bonds to be refunded, at maturity or on any
631-20 redemption date.
631-21 (d) The refunding bonds may be issued to be exchanged for
631-22 the bonds to be refunded by them. In that case, the comptroller
631-23 shall register the refunding bonds and deliver them to the holder
631-24 of the bonds to be refunded as provided by the ordinance
631-25 authorizing the refunding bonds. The exchange may be made in one
631-26 delivery or in installment deliveries. (V.A.C.S. Art. 1015g-4,
631-27 Sec. 9 (part).)
632-1 Sec. 1509.213. PUBLIC PURPOSE. The acquisition,
632-2 construction, improvement, enlargement, or equipment by a
632-3 municipality of property or a facility for lease or rental to the
632-4 United States for use in performing a federal governmental function
632-5 in the municipality or at or near and relating to a toll bridge of
632-6 the municipality is a public purpose and a proper municipal
632-7 function, regardless of whether the toll bridge or the federal
632-8 facility relating to the bridge is located inside or outside the
632-9 municipal boundaries. (V.A.C.S. Art. 1015g-4, Sec. 7 (part).)
632-10 Sec. 1509.214. CONFLICT WITH OTHER LAW. When bonds are
632-11 being issued under this subchapter, to the extent of a conflict
632-12 between this subchapter and another law, this subchapter controls.
632-13 (V.A.C.S. Art. 1015g-4, Sec. 12 (part).)
632-14 (Sections 1509.215-1509.250 reserved for expansion)
632-15 SUBCHAPTER F. ENCUMBRANCE OF SLAUGHTERHOUSES IN CERTAIN
632-16 COASTAL MUNICIPALITIES
632-17 Sec. 1509.251. APPLICABILITY OF SUBCHAPTER. This subchapter
632-18 applies only to a municipality that is located not more than:
632-19 (1) 100 miles from the Gulf of Mexico; and
632-20 (2) 50 miles from a stream that forms an international
632-21 boundary. (V.A.C.S. Art. 1187d, Secs. 1 (part), 2 (part).)
632-22 Sec. 1509.252. ENCUMBRANCE OF SLAUGHTERHOUSE. To obtain
632-23 money to construct a slaughterhouse, or to construct, improve,
632-24 enlarge, extend, or repair a permanent improvement to a
632-25 slaughterhouse, a municipality may:
632-26 (1) pledge the income from or encumber an existing or
632-27 proposed slaughterhouse and anything pertaining to the
633-1 slaughterhouse; and
633-2 (2) as additional security, in the pledge or
633-3 encumbrance, grant to a purchaser under sale or foreclosure a
633-4 franchise to operate the slaughterhouse for a term not to exceed 30
633-5 years from the date of purchase, subject to all laws regulating the
633-6 same then in force. (V.A.C.S. Art. 1187d, Secs. 1 (part), 2
633-7 (part).)
633-8 Sec. 1509.253. OBLIGATIONS NOT DEBT OF MUNICIPALITY. An
633-9 obligation issued under this subchapter:
633-10 (1) is not a debt of the municipality;
633-11 (2) may be a charge only against the encumbered
633-12 property; and
633-13 (3) may not be included in determining the power of
633-14 the municipality to issue bonds for any purpose authorized by law.
633-15 (V.A.C.S. Art. 1187d, Secs. 1 (part), 2 (part).)
633-16 Sec. 1509.254. ELECTION NOT REQUIRED FOR CERTAIN
633-17 OBLIGATIONS. (a) A municipality may issue notes or warrants under
633-18 this subchapter in an amount not to exceed $50,000 without an
633-19 election in connection with the issuance.
633-20 (b) To the extent of any conflict between Subsection (a) and
633-21 a municipal charter, Subsection (a) controls. (V.A.C.S.
633-22 Art. 1187d, Sec. 3.)
633-23 (Sections 1509.255-1509.900 reserved for expansion)
633-24 SUBCHAPTER Z. MISCELLANEOUS PROVISIONS
633-25 Sec. 1509.901. PLEDGE OF REVENUE FROM TOLL BRIDGE CONTRACT.
633-26 A municipality that receives revenue because of a contract with
633-27 another municipality relating to the operation of a toll bridge
634-1 over the Rio Grande may appropriate or pledge all or any part of
634-2 that revenue to:
634-3 (1) redeem or pay the principal of or interest on any
634-4 bond, note, or warrant that the municipality is authorized to
634-5 issue; or
634-6 (2) retire any other debt the municipality is
634-7 authorized to incur. (V.A.C.S. Art. 1015g-1.)
634-8 Sec. 1509.902. AUTHORITY TO ISSUE BONDS PAYABLE FROM TOLL
634-9 BRIDGE REVENUE; PLEDGE OF TOLL BRIDGE REVENUE. (a) This section
634-10 applies only to a municipality that:
634-11 (1) has located within its municipal boundaries or
634-12 within 15 miles of its municipal boundaries a toll bridge over the
634-13 Rio Grande; and
634-14 (2) receives revenue because of that bridge, including
634-15 revenue received under a contract with another municipality
634-16 relating to the operation of that bridge.
634-17 (b) The municipality may issue revenue bonds under this
634-18 section payable from revenue received because of the toll bridge to
634-19 acquire, construct, repair, extend, or improve any public building,
634-20 utility system, or other public property or facility the governing
634-21 body of the municipality considers necessary and appropriate.
634-22 (c) A municipality may issue the bonds without an election
634-23 if the governing body of the municipality authorizes the issuance
634-24 by ordinance.
634-25 (d) Subject to any covenant relating to an outstanding bond
634-26 of the municipality, a municipality may appropriate or pledge to
634-27 the payment of bonds issued under this section all or any part of
635-1 the revenue the municipality receives because of the toll bridge.
635-2 (e) A bond issued under this section must mature not later
635-3 than 40 years after its date. (V.A.C.S. Art. 1015g-3, Secs. 1, 2
635-4 (part).)
635-5 SECTION 2. CONFORMING AMENDMENT. Subchapter B, Chapter 301,
635-6 Government Code, is amended by adding Section 301.033 to read as
635-7 follows:
635-8 Sec. 301.033. ALLOCATION OF SPACE IN LEGISLATIVE SERVICES
635-9 BUILDING. (a) The space in the legislative services office
635-10 building and parking facilities authorized by Chapter 168, Acts of
635-11 the 74th Legislature, Regular Session, 1995, is allocated to the
635-12 legislature and legislative agencies for their use. The presiding
635-13 officers of each house of the legislature shall jointly decide the
635-14 allocation of the space in the building and facilities.
635-15 (b) The building shall be known as the Robert E. Johnson
635-16 Building. (V.A.C.S. Art. 601d, Secs. 27(b), (c).)
635-17 SECTION 3. CONFORMING AMENDMENT. Section 443.0151(a),
635-18 Government Code, is amended to read as follows:
635-19 (a) The board shall operate a garage or similar parking
635-20 facility for the benefit of visitors to the Capitol Complex. The
635-21 parking facility is under the control of the board. (V.A.C.S.
635-22 Art. 601d, Sec. 24B(b) (part).)
635-23 SECTION 4. CONFORMING AMENDMENT. Subtitle A, Title 6,
635-24 Government Code, is amended by adding Chapter 618 to read as
635-25 follows:
635-26 CHAPTER 618. UNIFORM FACSIMILE SIGNATURE
635-27 OF PUBLIC OFFICIALS ACT
636-1 Sec. 618.001. SHORT TITLE. This chapter may be cited as the
636-2 Uniform Facsimile Signature of Public Officials Act. (V.A.C.S.
636-3 Art. 717j-1, Sec. 6.)
636-4 Sec. 618.002. DEFINITIONS. In this chapter:
636-5 (1) "Authorized officer" means any official of this
636-6 state, a political subdivision of this state, or a department,
636-7 agency, or instrumentality of this state or of a political
636-8 subdivision of this state whose signature is required or permitted
636-9 to be placed on a public security, eligible contract, instrument of
636-10 payment, or certificate of assessment.
636-11 (2) "Certificate of assessment" means a certificate or
636-12 instrument evidencing a special assessment that is issued by an
636-13 agency or political subdivision of this state.
636-14 (3) "Eligible contract" means a written evidence of
636-15 agreement, including a contract, purchase order, and surety bond,
636-16 and any related document, including an application, certificate,
636-17 and approval, other than a public security or instrument of
636-18 payment, that is executed, authenticated, certified, or endorsed
636-19 for or on behalf of a home-rule municipality with a population of
636-20 1.2 million or more.
636-21 (4) "Facsimile signature" means a reproduction of the
636-22 manual signature of an authorized officer that is made by any
636-23 method, including engraving, imprinting, lithographing, and
636-24 stamping.
636-25 (5) "Instrument of payment" means a check, draft,
636-26 warrant, or order for the payment, delivery, or transfer of money.
636-27 (6) "Public security" means an obligation for the
637-1 payment of money, including a bond, note, and certificate of
637-2 indebtedness, that is issued by this state, a political subdivision
637-3 of this state, or a department, agency, or instrumentality of this
637-4 state or of a political subdivision of this state. (V.A.C.S.
637-5 Art. 717j-1, Sec. 1.)
637-6 Sec. 618.003. AUTHORITY FOR FACSIMILE SIGNATURE. Except as
637-7 provided by Section 618.004, an authorized officer may execute,
637-8 authenticate, certify, or endorse or authorize to be executed,
637-9 authenticated, certified, or endorsed with the officer's facsimile
637-10 signature instead of the officer's manual signature:
637-11 (1) a public security, instrument of payment, or
637-12 certificate of assessment, if the use of the facsimile signature is
637-13 authorized by the board, body, or officer empowered to authorize
637-14 the issuance of the security, instrument, or certificate; or
637-15 (2) an eligible contract, if the use of the facsimile
637-16 signature is authorized by the governing body of the municipality.
637-17 (V.A.C.S. Art. 717j-1, Sec. 2 (part).)
637-18 Sec. 618.004. MANUAL SIGNATURE ON PUBLIC SECURITY. (a) At
637-19 least one signature that is required or permitted to be placed on a
637-20 public security must be manually subscribed.
637-21 (b) Only the comptroller's signature or that of a deputy
637-22 designated in writing to act for the comptroller is required to be
637-23 manually subscribed on a public security required to be registered
637-24 by the comptroller or a certificate on that security. (V.A.C.S.
637-25 Art. 717j-1, Sec. 2 (part).)
637-26 Sec. 618.005. EFFECT OF FACSIMILE SIGNATURE. A facsimile
637-27 signature placed in compliance with this chapter has the same legal
638-1 effect as the authorized officer's manual signature. (V.A.C.S.
638-2 Art. 717j-1, Sec. 2 (part).)
638-3 Sec. 618.006. LACK OF AUTHORITY NOT DEFENSE. In a suit or
638-4 other legal action against an authorized officer whose facsimile
638-5 signature is placed under this chapter on a public security,
638-6 instrument of payment, certificate of assessment, or eligible
638-7 contract, the placement of the facsimile signature without the
638-8 officer's authority or consent is not a defense. (V.A.C.S.
638-9 Art. 717j-1, Sec. 2 (part).)
638-10 Sec. 618.007. AUTHORITY FOR FACSIMILE SEAL. If the seal of
638-11 this state, a political subdivision of this state, or a department,
638-12 agency, or instrumentality of this state or of a political
638-13 subdivision of this state is required in the execution,
638-14 authentication, certification, or endorsement of a public security,
638-15 instrument of payment, certificate of assessment, or eligible
638-16 contract, an appropriate authorized officer may authorize the
638-17 printing, engraving, lithographing, stamping, or other placement of
638-18 a facsimile of the seal on the document. (V.A.C.S. Art. 717j-1,
638-19 Sec. 3 (part).)
638-20 Sec. 618.008. EFFECT OF FACSIMILE SEAL. A facsimile seal
638-21 placed in compliance with this chapter has the same legal effect as
638-22 an impression of the seal. (V.A.C.S. Art. 717j-1, Sec. 3 (part).)
638-23 Sec. 618.009. FRAUDULENT PLACEMENT OF FACSIMILE SIGNATURE OR
638-24 SEAL; OFFENSE. (a) A person commits an offense if, with intent to
638-25 defraud, the person places on a public security, instrument of
638-26 payment, certificate of assessment or eligible contract:
638-27 (1) a facsimile signature or a reproduction of a
639-1 facsimile signature; or
639-2 (2) a facsimile seal, or a reproduction of a facsimile
639-3 seal, of this state, a political subdivision of this state, or a
639-4 department, agency, or instrumentality of this state or a political
639-5 subdivision of this state.
639-6 (b) An offense under this section is a felony punishable by
639-7 imprisonment in the institutional division of the Texas Department
639-8 of Criminal Justice for any term of not more than seven years or
639-9 less than two years. (V.A.C.S. Art. 717j-1, Sec. 4.)
639-10 SECTION 5. CONFORMING AMENDMENT. Subtitle F, Title 10,
639-11 Government Code, is amended by adding Chapter 2259 to read as
639-12 follows:
639-13 CHAPTER 2259. SELF-INSURANCE BY GOVERNMENTAL UNITS
639-14 SUBCHAPTER A. GENERAL PROVISIONS
639-15 Sec. 2259.001. DEFINITIONS. In this chapter:
639-16 (1) "Governmental unit" means:
639-17 (A) a state agency or institution;
639-18 (B) a local government; or
639-19 (C) an entity acting on behalf of a state agency
639-20 or institution or local government.
639-21 (2) "Local government" means a municipality or other
639-22 political subdivision of this state or a combination of political
639-23 subdivisions, including a combination created under Chapter 791.
639-24 (3) "Public security" means an obligation authorized
639-25 to be issued under this chapter, including a bond, certificate, or
639-26 note.
639-27 (4) "State agency or institution" includes an
640-1 institution of higher education. (V.A.C.S. Art. 715c, Sec. 2.)
640-2 Sec. 2259.002. SELF-INSURANCE NOT WAIVER OF IMMUNITY. The
640-3 establishment and maintenance of a self-insurance program by a
640-4 governmental unit is not a waiver of immunity or of a defense of
640-5 the governmental unit or its employees. (V.A.C.S. Art. 715c, Sec.
640-6 6.)
640-7 (Sections 2259.003-2259.030 reserved for expansion
640-8 SUBCHAPTER B. SELF-INSURANCE FUND
640-9 Sec. 2259.031. ESTABLISHMENT OF FUND. (a) A governmental
640-10 unit may establish a self-insurance fund to protect the
640-11 governmental unit and its officers, employees, and agents from any
640-12 insurable risk or hazard.
640-13 (b) The governmental unit may:
640-14 (1) issue public securities and use the proceeds for
640-15 all or part of the fund; or
640-16 (2) use any money available to the governmental unit
640-17 for the fund. (V.A.C.S. Art. 715c, Sec. 4(a).)
640-18 Sec. 2259.032. PUBLIC PURPOSE. The issuance of a public
640-19 security or the use of available money for a self-insurance fund
640-20 under this subchapter is a public purpose of the governmental unit.
640-21 (V.A.C.S. Art. 715c, Sec. 4(b).)
640-22 Sec. 2259.033. PAYMENT SOURCE FOR PUBLIC SECURITIES: STATE
640-23 AGENCY OR INSTITUTION. Public securities issued by a state agency
640-24 or institution under this subchapter may be payable from any
640-25 available source of revenue. (V.A.C.S. Art. 715c, Sec. 4(e).)
640-26 Sec. 2259.034. PAYMENT SOURCE FOR PUBLIC SECURITIES: LOCAL
640-27 GOVERNMENT. (a) Public securities issued by a local government
641-1 under this subchapter may be payable from taxes imposed by and
641-2 revenues of the local government, including:
641-3 (1) ad valorem, sales and use, and hotel occupancy
641-4 taxes;
641-5 (2) revenue derived by the local government from any
641-6 system or other specified source; or
641-7 (3) any combination of taxes and revenue.
641-8 (b) The issuance of public securities by a local government
641-9 under this subchapter that are payable from ad valorem taxes is
641-10 subject to the laws applicable to the issuance of public securities
641-11 by the local government for other purposes, including Chapter 1251,
641-12 with respect to the necessity for and conduct of an election.
641-13 (V.A.C.S. Art. 715c, Sec. 4(c).)
641-14 Sec. 2259.035. SALE OF PUBLIC SECURITIES. A governmental
641-15 unit may sell public securities issued under this subchapter at a
641-16 public or private sale. (V.A.C.S. Art. 715c, Sec. 4(f).)
641-17 Sec. 2259.036. COUNTY OR MUNICIPAL CERTIFICATES OF
641-18 OBLIGATION. As provided by Subchapter C, Chapter 271, Local
641-19 Government Code, a county or municipality may issue and sell for
641-20 cash, at a public or private sale, certificates of obligation for
641-21 the establishment and maintenance of a self-insurance fund under
641-22 this subchapter. (V.A.C.S. Art. 715c, Sec. 4(d).)
641-23 Sec. 2259.037. APPLICABILITY OF INSURANCE LAWS. The
641-24 Insurance Code and other laws of this state relating to the
641-25 provision or regulation of insurance do not apply to:
641-26 (1) an agreement entered into under this subchapter;
641-27 or
642-1 (2) the proceeds of public securities issued under
642-2 this subchapter. (V.A.C.S. Art. 715c, Sec. 4(g).)
642-3 (Sections 2259.038-2259.060 reserved for expansion
642-4 SUBCHAPTER C. RISK RETENTION GROUPS
642-5 Sec. 2259.061. FORMATION OF RISK RETENTION GROUP. A
642-6 governmental unit may form or become a member of a risk retention
642-7 group formed under the Liability Risk Retention Act of 1986 (15
642-8 U.S.C. Section 3901 et seq.) to obtain insurance against an
642-9 insurable risk. (V.A.C.S. Art. 715c, Sec. 5(a).)
642-10 Sec. 2259.062. PAYMENT SOURCE FOR GROUP: STATE AGENCY OR
642-11 INSTITUTION. A state agency or institution may make a payment
642-12 under a risk retention group agreement from any source, including a
642-13 legislative appropriation. (V.A.C.S. Art. 715c, Sec. 5(d).)
642-14 Sec. 2259.063. PAYMENT SOURCE FOR GROUP: LOCAL GOVERNMENT.
642-15 (a) A local government may make a payment under a risk retention
642-16 group agreement from proceeds of taxes imposed by and revenues of
642-17 the local government, including:
642-18 (1) ad valorem, sales and use, and hotel occupancy
642-19 taxes;
642-20 (2) revenue derived by the local government from any
642-21 system or other specified source; or
642-22 (3) any combination of taxes and revenue.
642-23 (b) A local government that does not have authority to
642-24 impose ad valorem taxes for payment of contractual debts may make a
642-25 payment under a risk retention group agreement from an annual
642-26 appropriation of proceeds of ad valorem taxes the local government
642-27 is authorized to impose. (V.A.C.S. Art. 715c, Secs. 5(b), (c).)
643-1 SECTION 6. CONFORMING AMENDMENT. Section 105.091, Local
643-2 Government Code, is amended to read as follows:
643-3 Sec. 105.091. LIABILITY OF DESIGNATED OFFICER. (a) The
643-4 designated officer is not responsible for any loss of municipal
643-5 funds through the negligence, failure, or wrongful act of a
643-6 depository. This subsection [section] does not release the
643-7 designated officer from responsibility for a loss resulting from
643-8 the official misconduct of the designated officer, including a
643-9 misappropriation of the funds, or from responsibility for the funds
643-10 until a depository is selected and the funds are deposited.
643-11 (b) A designated officer who diverts money from an interest
643-12 and sinking fund or who applies money in that fund for a purpose
643-13 other than as permitted by Section 105.074(f) is:
643-14 (1) subject to a penalty of not less than $500 or more
643-15 than $1,000; and
643-16 (2) liable for the amount of money that is diverted.
643-17 (c) The state is entitled to recover a penalty imposed under
643-18 Subsection (b)(1). The amount of diverted money that is recovered
643-19 under Subsection (b)(2) shall be paid into the municipal treasury
643-20 to the credit of the fund from which it was diverted.
643-21 (d) The attorney general or the district attorney of the
643-22 district in which the designated officer resides, or the county
643-23 attorney in a county that is not served by a district attorney, may
643-24 institute suit against the designated officer and the sureties on
643-25 the designated officer's official bond to recover the amounts
643-26 described by Subsection (b). (V.A.C.S. Arts. 840, 841 (part).)
643-27 SECTION 7. CONFORMING AMENDMENT. Section 113.005, Local
644-1 Government Code, is amended to read as follows:
644-2 Sec. 113.005. LIABILITY OF COUNTY TREASURER. (a) The
644-3 county treasurer is not responsible for any loss of the county
644-4 funds through the failure or negligence of a depository. This
644-5 subsection [section] does not release the treasurer from
644-6 responsibility for a loss resulting from the official misconduct or
644-7 negligence of the treasurer, including a misappropriation of the
644-8 funds, or from responsibility for funds until a depository is
644-9 selected and the funds are deposited.
644-10 (b) A treasurer who diverts money from an interest and
644-11 sinking fund or who applies money in that fund for a purpose other
644-12 than as permitted by Section 113.041(h) is:
644-13 (1) subject to a penalty of not less than $500 or more
644-14 than $1,000; and
644-15 (2) liable for the amount of money that is diverted.
644-16 (c) The state is entitled to recover a penalty imposed under
644-17 Subsection (b)(1). The amount of diverted money that is recovered
644-18 under Subsection (b)(2) shall be paid into the county treasury to
644-19 the credit of the fund from which it was diverted.
644-20 (d) The attorney general or the district attorney of the
644-21 district in which the treasurer resides, or the county attorney in
644-22 a county that is not served by a district attorney, may institute
644-23 suit against the treasurer and the sureties on the treasurer's
644-24 official bond to recover the amounts described by Subsection (b).
644-25 (V.A.C.S. Arts. 840, 841 (part).)
644-26 SECTION 8. CONFORMING AMENDMENT. Section 113.041, Local
644-27 Government Code, is amended by adding Subsection (h) to read as
645-1 follows:
645-2 (h) A county treasurer may not honor a check or warrant on
645-3 the interest and sinking fund provided for a bond of the county or
645-4 pay out or divert money in that fund except to pay the principal of
645-5 or interest on the bond or invest money in securities as provided
645-6 by law. (V.A.C.S. Art. 839 (part).)
645-7 SECTION 9. CONFORMING AMENDMENT. Subtitle A, Title 8, Local
645-8 Government Code, is amended by adding Chapter 254 to read as
645-9 follows:
645-10 CHAPTER 254. ACQUISITION AND DEVELOPMENT OF ISLAND PROPERTY
645-11 SUBCHAPTER A. GENERAL PROVISIONS
645-12 Sec. 254.001. APPLICABILITY OF CHAPTER. This chapter
645-13 applies only to a municipality located on a channel, canal, bay,
645-14 inlet, or lake connected to the Gulf of Mexico. (V.A.C.S.
645-15 Art. 969a-2, Sec. 2.)
645-16 Sec. 254.002. DEFINITIONS. In this chapter:
645-17 (1) "Board" means a board of trustees established
645-18 under Section 254.021.
645-19 (2) "Island property" means:
645-20 (A) land located on an island in the channel,
645-21 canal, bay, inlet, or lake on which the municipality is located;
645-22 and
645-23 (B) facilities and improvements related to land
645-24 described by Paragraph (A).
645-25 (3) "Obligation" includes a bond. (V.A.C.S.
645-26 Art. 969a-2, Secs. 1, 4 (part); New.)
645-27 Sec. 254.003. AUTHORITY REGARDING ISLAND PROPERTY. A
646-1 municipality may construct, acquire, lease as lessor or lessee,
646-2 improve, enlarge, extend, repair, maintain, replace, develop, or
646-3 operate facilities and improvements necessary or convenient for the
646-4 proper administration of island property owned by the municipality.
646-5 (V.A.C.S. Art. 969a-2, Sec. 3.)
646-6 Sec. 254.004. APPLICABILITY OF OTHER LAW. Except to the
646-7 extent that it conflicts with this chapter, Subchapter B, Chapter
646-8 1502, Government Code, applies to revenue obligations issued under
646-9 this chapter, and a municipality to which this chapter applies has,
646-10 with respect to a revenue obligation issued under this chapter,
646-11 each power granted by that subchapter. (V.A.C.S. Art. 969a-2, Sec.
646-12 11 (part).)
646-13 (Sections 254.005-254.020 reserved for expansion
646-14 SUBCHAPTER B. MANAGEMENT AND CONTROL OF ISLAND PROPERTY;
646-15 BOARD OF TRUSTEES
646-16 Sec. 254.021. MANAGEMENT AND CONTROL BY GOVERNING BODY OR
646-17 BOARD OF TRUSTEES. (a) An ordinance authorizing the issuance of
646-18 obligations under this chapter may provide that, while the
646-19 principal of or interest on the obligations is outstanding,
646-20 management and control of island property owned by the municipality
646-21 and of the revenue generated by the island property is in:
646-22 (1) the governing body of the municipality; or
646-23 (2) a board of trustees named in the ordinance.
646-24 (b) A board may consist of not more than nine members.
646-25 (c) Notwithstanding Subsection (a), if the municipality is
646-26 operating under a home-rule charter that requires that island
646-27 property be managed or controlled by a board of trustees or
647-1 commission, the charter controls and a reference in this chapter to
647-2 a board of trustees is a reference to the board or commission
647-3 provided in the charter. (V.A.C.S. Art. 969a-2, Sec. 5(a) (part).)
647-4 Sec. 254.022. ORGANIZATION AND DUTIES OF BOARD. (a) Except
647-5 as otherwise provided by a charter provision described by Section
647-6 254.021(c), an ordinance under Section 254.021(a) that places
647-7 management and control of island property in a board may:
647-8 (1) specify the board members' compensation;
647-9 (2) specify the members' terms of office;
647-10 (3) specify the members' powers and duties;
647-11 (4) provide for the election or appointment of the
647-12 members' successors; and
647-13 (5) specify any other matter relating to the members'
647-14 organization and duties.
647-15 (b) On any matter not covered by the ordinance or the
647-16 municipal charter, the board is governed by the laws and rules
647-17 governing the governing body of the municipality. (V.A.C.S.
647-18 Art. 969a-2, Sec. 5(a) (part).)
647-19 Sec. 254.023. CHARACTER OF BOARD; GENERAL POWERS. (a) A
647-20 board is a body politic and corporate.
647-21 (b) The board may:
647-22 (1) manage, control, maintain, and operate the island
647-23 property;
647-24 (2) employ a general manager and any other officer,
647-25 employee, or representative the board considers appropriate;
647-26 (3) prepare and adopt a budget, set charges for a
647-27 service or facility, authorize an expenditure, and manage and
648-1 control the income and revenue of the island property;
648-2 (4) determine policies and adopt rules and procedures
648-3 for the operation of the island property;
648-4 (5) acquire property or an interest in property to
648-5 accomplish the purposes of this chapter and construct an
648-6 improvement or facility on the property;
648-7 (6) contract in its own name, but not in the name of
648-8 the municipality;
648-9 (7) sue and be sued in its own name;
648-10 (8) adopt, use, and alter a corporate seal; and
648-11 (9) establish a security force and commission as a
648-12 peace officer an employee of the force who is licensed by the
648-13 Commission on Law Enforcement Officer Standards and Education.
648-14 (c) A person commissioned as a peace officer under this
648-15 chapter has each right, privilege, obligation, and duty of other
648-16 peace officers in this state while on the property under control of
648-17 the board or in the actual course and scope of the person's
648-18 employment. (V.A.C.S. Art. 969a-2, Sec. 5(b) (part).)
648-19 Sec. 254.024. COMPETITIVE BIDDING. (a) The board may award
648-20 a contract involving the expenditure of more than $15,000 only by
648-21 competitive bidding.
648-22 (b) Competitive bidding is not required:
648-23 (1) for a contract for:
648-24 (A) personal or professional services;
648-25 (B) a real estate transaction;
648-26 (C) operation of an improvement or facility
648-27 under a specific agreement for a limited term; or
649-1 (D) insurance; or
649-2 (2) if the board determines that the delay posed by
649-3 the competitive bidding procedure would prevent or substantially
649-4 impair the operation of island property. (V.A.C.S. Art. 969a-2,
649-5 Sec. 5(b) (part).)
649-6 (Sections 254.025-254.050 reserved for expansion
649-7 SUBCHAPTER C. OBLIGATIONS
649-8 Sec. 254.051. AUTHORITY OF MUNICIPALITY TO ISSUE
649-9 OBLIGATIONS. The governing body of a municipality by ordinance may
649-10 issue in the name of the municipality obligations payable from
649-11 taxes, revenue, or both to provide money for a facility or
649-12 improvement under this chapter. (V.A.C.S. Art. 969a-2, Secs. 4
649-13 (part), 8(a) (part).)
649-14 Sec. 254.052. ELECTION. (a) Obligations payable from ad
649-15 valorem taxes, other than refunding obligations, may be issued only
649-16 if authorized at an election held under Chapter 1251, Government
649-17 Code.
649-18 (b) Notwithstanding any law or charter provision to the
649-19 contrary, an election is not required to authorize the issuance
649-20 under this chapter of obligations payable solely from revenue if:
649-21 (1) the obligations are not:
649-22 (A) a debt of the municipality; or
649-23 (B) a pledge of the faith and credit of the
649-24 municipality; and
649-25 (2) the owner or holder of an obligation is not
649-26 entitled to demand payment from money raised by taxation.
649-27 (V.A.C.S. Art. 969a-2, Sec. 4 (part).)
650-1 Sec. 254.053. AUTHORITY OF BOARD TO ISSUE OBLIGATIONS. A
650-2 board by resolution may issue in the name of the board, with the
650-3 consent of the governing body of the municipality:
650-4 (1) obligations payable from revenue in the manner
650-5 provided by this chapter and refund previously issued obligations;
650-6 (2) expense notes drawn against the revenues of the
650-7 board to pay expenses during the fiscal year of the board in which
650-8 the notes are issued; and
650-9 (3) certificates of participation in contractual
650-10 obligations to pay money. (V.A.C.S. Art. 969a-2, Secs. 5(b)
650-11 (part), 8(b) (part).)
650-12 Sec. 254.054. LIMITATION ON AGGREGATE AMOUNT OF EXPENSE
650-13 NOTES. The aggregate amount of expense notes issued under Section
650-14 254.053(2) that are outstanding at any time during a fiscal year
650-15 may not exceed 50 percent of the difference between:
650-16 (1) the revenue of the board budgeted for that fiscal
650-17 year; and
650-18 (2) the principal of and interest on board obligations
650-19 other than expense notes to be paid from the revenue of the board
650-20 during that fiscal year. (V.A.C.S. Art. 969a-2, Sec. 5(b) (part).)
650-21 Sec. 254.055. MATURITY OF OBLIGATION. An obligation issued
650-22 under this chapter must mature not later than 40 years after its
650-23 date of issuance. (V.A.C.S. Art. 969a-2, Sec. 8(c) (part).)
650-24 Sec. 254.056. SIGNATURES; SEAL. (a) An obligation issued
650-25 by a municipality under this chapter must be:
650-26 (1) signed by the mayor or the presiding officer of
650-27 the municipality;
651-1 (2) countersigned by the municipality's secretary or
651-2 clerk; and
651-3 (3) impressed with the seal of the municipality.
651-4 (b) An obligation authorized by the board under this chapter
651-5 must be:
651-6 (1) signed by the presiding officer of the board;
651-7 (2) countersigned by the secretary or assistant
651-8 secretary; and
651-9 (3) impressed with the seal of the board. (V.A.C.S.
651-10 Art. 969a-2, Secs. 8(a) (part), (b) (part).)
651-11 Sec. 254.057. SALE OF OBLIGATIONS. (a) A municipality or
651-12 board may sell obligations issued under this chapter at public or
651-13 private sale under terms the governing body or the board determines
651-14 to be the most advantageous and reasonably obtainable.
651-15 (b) Subsection (a) applies to obligations payable from
651-16 revenue notwithstanding any restriction in a municipal charter to
651-17 the contrary. (V.A.C.S. Art. 969a-2, Secs. 6(a) (part), 8(c)
651-18 (part).)
651-19 Sec. 254.058. CONTENTS OF ORDINANCE OR RESOLUTION. (a) The
651-20 ordinance of the governing body or the resolution of the board
651-21 authorizing the issuance of revenue obligations may:
651-22 (1) provide for the flow of funds, the establishment
651-23 and maintenance of an interest and sinking fund, reserve fund, or
651-24 other fund, and the depositing of money; and
651-25 (2) contain any covenant, as considered appropriate,
651-26 with respect to the obligations, the pledged revenue, and the
651-27 operation and maintenance of the island property.
652-1 (b) The ordinance or resolution or another proceeding may:
652-2 (1) prohibit the further issuance of obligations
652-3 payable from the pledged revenue; or
652-4 (2) reserve the right to issue additional obligations
652-5 to be secured by a pledge of and payable from the net revenue on a
652-6 parity with, or subordinate to, the lien and pledge securing the
652-7 obligations being issued, subject to any condition provided by the
652-8 ordinance, resolution, or other proceeding.
652-9 (c) The ordinance, resolution, or other proceeding may:
652-10 (1) provide that surplus net revenue received from the
652-11 operation of the island property may be used for the payment of the
652-12 principal of and interest on any obligations payable from taxes
652-13 issued by the municipality under this chapter; and
652-14 (2) contain other provisions and covenants. (V.A.C.S.
652-15 Art. 969a-2, Sec. 7.)
652-16 Sec. 254.059. REVIEW AND APPROVAL OF CONTRACTS RELATING TO
652-17 REVENUE OBLIGATIONS. (a) If revenue obligations issued under this
652-18 chapter state that they are secured by a pledge of the proceeds
652-19 from a contract, a copy of the contract and of the proceedings
652-20 authorizing the contract must be submitted to the attorney general
652-21 for approval.
652-22 (b) The approval by the attorney general of the obligations
652-23 is approval of the contract.
652-24 (c) After approval, the contract is incontestable except for
652-25 forgery or fraud. (V.A.C.S. Art. 969a-2, Sec. 8(d) (part).)
652-26 Sec. 254.060. SECURITY FOR AND PAYMENT OF OBLIGATIONS
652-27 PAYABLE FROM REVENUE. (a) Revenue obligations issued under this
653-1 chapter may be secured solely by and paid from a pledge of the net
653-2 revenue derived from the operation of island property, including
653-3 revenue from leases, subleases, sales, or contracts for sale
653-4 entered into by the municipality or the board of trustees with
653-5 respect to the island property. For purposes of this subsection,
653-6 the net revenue is an amount equal to the gross revenue derived
653-7 from the operation of the island property less the reasonable
653-8 expenses of maintaining and operating the island property.
653-9 (b) While the principal of or interest on obligations is
653-10 outstanding, the issuer shall:
653-11 (1) impose and collect charges in an amount sufficient
653-12 to pay:
653-13 (A) maintenance and operation expenses of the
653-14 island property;
653-15 (B) the interest on the obligations as it
653-16 accrues; and
653-17 (C) the principal of the obligations as the
653-18 obligations mature; and
653-19 (2) make any other payment prescribed by the ordinance
653-20 or resolution authorizing or other proceeding relating to the
653-21 issuance of the obligations.
653-22 (c) In addition to the security provided by Subsection (a),
653-23 obligations may be secured by a trust indenture and a mortgage or
653-24 deed of trust lien or other security interest on island property.
653-25 (V.A.C.S. Art. 969a-2, Secs. 6(a) (part), (b) (part).)
653-26 Sec. 254.061. USE OF CERTAIN PROCEEDS. From the proceeds
653-27 from the sale of obligations issued under this chapter, there may
654-1 be appropriated or set aside:
654-2 (1) an amount for the payment of interest expected to
654-3 accrue while an island property facility or improvement is under
654-4 construction;
654-5 (2) an amount necessary to pay expenses related to the
654-6 issuance, sale, and delivery of the obligations; and
654-7 (3) an amount required by the ordinance or resolution
654-8 authorizing the issuance of the obligations to be deposited to the
654-9 credit of a reserve or other fund. (V.A.C.S. Art. 969a-2, Sec. 9.)
654-10 Sec. 254.062. LEASE OR SALE OF ISLAND PROPERTY. (a) In
654-11 connection with the issuance of revenue obligations, a municipality
654-12 or board may lease, sublease, or sell island property to be
654-13 constructed or acquired with the proceeds of the obligations.
654-14 (b) A lease, sublease, or contract of sale may contain any
654-15 provision that the municipality or board considers advantageous.
654-16 (c) A lease, sublease, or contract of sale may provide for
654-17 the lessee or purchaser of the island property to make payments in
654-18 amounts adequate to pay the principal of and interest and premium
654-19 on the obligations when they become due. (V.A.C.S. Art. 969a-2,
654-20 Sec. 6(b) (part).)
654-21 Sec. 254.063. ENCUMBRANCE OF ISLAND PROPERTY IMPROVEMENTS OR
654-22 FACILITIES FINANCED BY OBLIGATIONS PAYABLE FROM AD VALOREM TAXES.
654-23 A municipality may not encumber an island property improvement or
654-24 facility financed by obligations payable from ad valorem taxes
654-25 unless authorized at the election required by Section 254.052.
654-26 (V.A.C.S. Art. 969a-2, Sec. 11 (part).)
654-27 (Sections 254.064-254.080 reserved for expansion
655-1 SUBCHAPTER D. REFUNDING OBLIGATIONS
655-2 Sec. 254.081. APPLICABILITY OF LAW RELATING TO ORIGINAL
655-3 OBLIGATIONS. The provisions of this chapter relating to original
655-4 obligations apply to refunding obligations issued under this
655-5 chapter to the extent the provisions can be made to apply.
655-6 (V.A.C.S. Art. 969a-2, Sec. 10(e).)
655-7 Sec. 254.082. AUTHORITY TO ISSUE TAX REFUNDING OBLIGATIONS.
655-8 The governing body of a municipality may issue tax obligations
655-9 under this chapter to refund outstanding tax obligations.
655-10 (V.A.C.S. Art. 969a-2, Sec. 10(a).)
655-11 Sec. 254.083. AUTHORITY TO ISSUE REVENUE REFUNDING
655-12 OBLIGATIONS. The governing body of a municipality or a board with
655-13 the approval of the governing body may issue revenue obligations
655-14 under this chapter to refund outstanding revenue obligations.
655-15 (V.A.C.S. Art. 969a-2, Sec. 10(b) (part).)
655-16 Sec. 254.084. TERMS OF ISSUANCE OF REVENUE REFUNDING
655-17 OBLIGATIONS. (a) Revenue refunding obligations may:
655-18 (1) be combined with new or original revenue
655-19 obligations into one series or issue;
655-20 (2) be issued to refund obligations of more than one
655-21 series or issue;
655-22 (3) combine the pledges securing the obligations to be
655-23 refunded to secure the revenue refunding obligations; or
655-24 (4) be secured by a pledge of other or additional net
655-25 revenue.
655-26 (b) A revenue refunding obligation may bear interest at a
655-27 rate higher than that of the obligation to be refunded. (V.A.C.S.
656-1 Art. 969a-2, Sec. 10(b) (part).)
656-2 Sec. 254.085. REGISTRATION OF REFUNDING OBLIGATIONS BY
656-3 COMPTROLLER. (a) Except as provided by Subsection (b), the
656-4 comptroller shall register refunding obligations on surrender and
656-5 cancellation of the obligations to be refunded.
656-6 (b) The comptroller shall register refunding obligations
656-7 without the surrender and cancellation of the obligations to be
656-8 refunded if:
656-9 (1) the ordinance or resolution authorizing the
656-10 issuance of the refunding obligations requires that:
656-11 (A) the obligations be sold at public or private
656-12 sale; and
656-13 (B) the proceeds from the sale be deposited:
656-14 (i) in a place where the obligations to be
656-15 refunded are payable; or
656-16 (ii) with the comptroller; and
656-17 (2) the refunding obligations are issued in an amount
656-18 sufficient to pay the principal of and interest on the obligations
656-19 to be refunded to the option or maturity date of the obligations.
656-20 (V.A.C.S. Art. 969a-2, Sec. 10(c) (part).)
656-21 Sec. 254.086. ESCROW AGREEMENT. (a) The proceeds from
656-22 revenue refunding obligations that are deposited as provided by
656-23 Section 254.085(b)(1)(B) shall be held under an escrow agreement so
656-24 that the proceeds and interest earned on the proceeds will be
656-25 available to pay the principal of and interest on the obligations
656-26 to be refunded as each becomes due.
656-27 (b) The escrow agreement may provide that the proceeds may,
657-1 until needed to pay principal and interest, be invested in direct
657-2 obligations of the United States.
657-3 (c) Interest earned on an investment described by Subsection
657-4 (b) may be:
657-5 (1) pledged to the payment of the principal of and
657-6 interest on the obligations to be refunded or the refunding
657-7 obligations; or
657-8 (2) considered as revenue of the island property.
657-9 (V.A.C.S. Art. 969a-2, Sec. 10(c) (part).)
657-10 SECTION 10. CONFORMING AMENDMENT. Chapter 280, Local
657-11 Government Code, is amended by adding Section 280.003 to read as
657-12 follows:
657-13 Sec. 280.003. HOSPITAL SITES IN COUNTY OR MUNICIPALITY. (a)
657-14 The commissioners court of a county or the governing body of a
657-15 municipality may issue bonds that are payable from ad valorem taxes
657-16 and use the proceeds from the sale of the bonds to acquire by
657-17 purchase, condemnation, or both, land to be used for hospital
657-18 purposes.
657-19 (b) A county or municipality that has sufficient money in
657-20 its general fund may use money in that fund to acquire land to be
657-21 used for hospital purposes.
657-22 (c) A county or municipality that owns land suitable for
657-23 hospital purposes, including land acquired under Subsection (a) or
657-24 (b), may donate the land to this state or to the United States for
657-25 hospital purposes if this state or the United States agrees to
657-26 erect and maintain a hospital on the land.
657-27 (d) A county or municipality may accept a nominal award as
658-1 full compensation for land that is suitable for hospital purposes
658-2 in a condemnation proceeding brought by this state or by the United
658-3 States to acquire the land for hospital purposes.
658-4 (e) If bonds are issued under Subsection (a), the
658-5 commissioners court or the governing body must impose the taxes in
658-6 compliance with the applicable provisions of Subtitles A and C,
658-7 Title 9, Government Code. (V.A.C.S. Art. 835c (part).)
658-8 SECTION 11. CONFORMING AMENDMENT. Subtitle C, Title 9,
658-9 Local Government Code, is amended by adding Chapter 303 to read as
658-10 follows:
658-11 CHAPTER 303. PUBLIC FACILITY CORPORATIONS
658-12 SUBCHAPTER A. GENERAL PROVISIONS
658-13 Sec. 303.001. SHORT TITLE. This chapter may be cited as the
658-14 Public Facility Corporation Act. (V.A.C.S. Art. 717s, Sec. 1.001.)
658-15 Sec. 303.002. PURPOSE; CONSTRUCTION. (a) The purpose of
658-16 this chapter is to authorize the creation and use of public
658-17 facility corporations with the broadest possible powers to finance
658-18 or to provide for the acquisition, construction, rehabilitation,
658-19 renovation, repair, equipping, furnishing, and placement in service
658-20 of public facilities in an orderly, planned manner and at the
658-21 lowest possible borrowing costs.
658-22 (b) The legislature intends that a corporation created under
658-23 this chapter be a public corporation, constituted authority, and
658-24 instrumentality authorized to issue bonds on behalf of its sponsor
658-25 for the purposes of Section 103, Internal Revenue Code of 1986 (26
658-26 U.S.C. Section 103). This chapter and the rules and rulings issued
658-27 under this chapter shall be construed according to this intent.
659-1 (V.A.C.S. Art. 717s, Sec. 1.002.)
659-2 Sec. 303.003. DEFINITIONS. In this chapter:
659-3 (1) "Board of directors" means the board of directors
659-4 of a corporation.
659-5 (2) "Bonds" includes notes, interim certificates, or
659-6 other evidences of indebtedness of a corporation issued or incurred
659-7 under this chapter.
659-8 (3) "Corporation" means a public facility corporation
659-9 created and existing under this chapter.
659-10 (4) "Credit agreement" means a loan agreement,
659-11 revolving credit agreement, agreement establishing a line of
659-12 credit, letter of credit, reimbursement agreement, insurance
659-13 contract, commitment to purchase bonds or sponsor obligations,
659-14 purchase or sale agreement, or commitment or other contract or
659-15 agreement authorized and approved by the board of directors of a
659-16 corporation in connection with the authorization, issuance,
659-17 incurrence, sale, security, exchange, payment, purchase, or
659-18 redemption of bonds or interest on bonds.
659-19 (5) "Director" means a member of a board of directors.
659-20 (6) "Housing authority" means a public corporation
659-21 created under Chapter 392.
659-22 (7) "Public facility" means any real, personal, or
659-23 mixed property, or an interest in property devoted or to be devoted
659-24 to public use, and authorized to be financed, refinanced, or
659-25 provided by sponsor obligations.
659-26 (8) "Resolution" means a resolution, order, ordinance,
659-27 or other official action by the governing body of a sponsor.
660-1 (9) "School district" means a political subdivision
660-2 created under Section 3, Article VII, Texas Constitution.
660-3 (10) "Special district" means:
660-4 (A) a district created under Section 52, Article
660-5 III, or Section 59, Article XVI, Texas Constitution;
660-6 (B) a hospital district or authority; or
660-7 (C) a junior college district authorized by
660-8 Chapter 130, Education Code.
660-9 (11) "Sponsor" means a municipality, county, school
660-10 district, housing authority, or special district that causes a
660-11 corporation to be created to act in accordance with this chapter.
660-12 (12) "Sponsor obligation" means an evidence of
660-13 indebtedness or obligation that a sponsor issues or incurs to
660-14 finance, refinance, or provide a public facility, including bonds,
660-15 notes, warrants, certificates of obligation, leases, and contracts
660-16 authorized by Section 303.041 and Subchapter C. (V.A.C.S.
660-17 Art. 717s, Secs. 1.003(1), (2), (4), (7), (8), (9), (10), (11),
660-18 (12), (13), (14), (15).)
660-19 Sec. 303.004. ADOPTION OF ALTERNATE PROCEDURE IN CASE OF
660-20 CONSTITUTIONAL VIOLATION. If a court holds that a procedure under
660-21 this chapter violates the federal or state constitution, a
660-22 corporation or its sponsor by resolution may provide an alternate
660-23 procedure that conforms to the constitution. (V.A.C.S. Art. 717s,
660-24 Sec. 1.004.)
660-25 Sec. 303.005. EFFECT OF CHAPTER ON OTHER LAW. (a) This
660-26 chapter does not limit the police power provided by law to this
660-27 state or a municipality or other political subdivision of this
661-1 state, or an official or agency of this state or of a municipality
661-2 or other political subdivision of this state, over property of a
661-3 corporation.
661-4 (b) A sponsor or corporation may use other law not in
661-5 conflict with this chapter to the extent convenient or necessary to
661-6 carry out a power expressly or impliedly granted by this chapter.
661-7 (V.A.C.S. Art. 717s, Sec. 1.005.)
661-8 Sec. 303.006. LIMITATION OF CHAPTER. This chapter does not
661-9 authorize a sponsor to issue a sponsor obligation, use a letter of
661-10 credit, or mortgage a public facility. (V.A.C.S. Art. 717s, Sec.
661-11 4.043(a) (part).)
661-12 (Sections 303.007-303.020 reserved for expansion
661-13 SUBCHAPTER B. CREATION AND OPERATION OF
661-14 PUBLIC FACILITY CORPORATION
661-15 Sec. 303.021. AUTHORITY TO CREATE. (a) A sponsor may
661-16 create one or more nonmember, nonstock, nonprofit public facility
661-17 corporations to:
661-18 (1) issue bonds under this chapter to purchase sponsor
661-19 obligations;
661-20 (2) finance public facilities on behalf of its
661-21 sponsor; or
661-22 (3) loan the proceeds of the obligations to other
661-23 entities to accomplish the purposes of the sponsor.
661-24 (b) A sponsor may use the corporation to:
661-25 (1) acquire, construct, rehabilitate, renovate,
661-26 repair, equip, furnish, or place in service public facilities; or
661-27 (2) issue bonds on the sponsor's behalf to finance the
662-1 costs of the public facilities. (V.A.C.S. Art. 717s, Secs.
662-2 2.011(a), (b).)
662-3 Sec. 303.022. CREATION UNDER OTHER LAW. A nonprofit
662-4 corporation created by a housing authority under the Texas
662-5 Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's
662-6 Texas Civil Statutes) is considered a corporation under this
662-7 chapter and has the rights and powers necessary or convenient to
662-8 accomplish a corporation's purposes under this chapter. (V.A.C.S.
662-9 Art. 717s, Sec. 3.021(j).)
662-10 Sec. 303.023. PROCEDURE. A governing body of a sponsor that
662-11 determines that it is in the public interest and to the benefit of
662-12 the sponsor's residents and the citizens of this state that a
662-13 corporation be created to finance, refinance, or provide the costs
662-14 of public facilities of the sponsor may by resolution stating that
662-15 determination:
662-16 (1) authorize and approve the creation of a
662-17 corporation to act on behalf of the sponsor; and
662-18 (2) approve proposed articles of incorporation for the
662-19 corporation. (V.A.C.S. Art. 717s, Sec. 3.021(a).)
662-20 Sec. 303.024. ARTICLES OF INCORPORATION. (a) The articles
662-21 of incorporation of the corporation must include:
662-22 (1) the corporation's name;
662-23 (2) a statement that the corporation is a nonprofit
662-24 public corporation;
662-25 (3) the duration of the corporation, which may be
662-26 perpetual;
662-27 (4) a statement that the purpose of the corporation is
663-1 to assist its sponsor in financing, refinancing, or providing
663-2 public facilities;
663-3 (5) a statement that the corporation has no members
663-4 and is a nonstock corporation;
663-5 (6) the street address of the corporation's initial
663-6 registered office and the name of its initial registered agent at
663-7 that address;
663-8 (7) the number of directors on the initial board of
663-9 directors and those directors' names and addresses;
663-10 (8) each incorporator's name and street address;
663-11 (9) the sponsor's name and address; and
663-12 (10) a statement that the sponsor has specifically
663-13 authorized the corporation to act on its behalf to further the
663-14 public purpose set forth in the articles of incorporation and has
663-15 approved the articles of incorporation.
663-16 (b) The corporate powers listed in this chapter are not
663-17 required to be included in the articles of incorporation.
663-18 (c) The articles of incorporation may include provisions for
663-19 the regulation of the internal affairs of the corporation,
663-20 including a provision required or permitted by this chapter to be
663-21 in the bylaws.
663-22 (d) Unless the articles of incorporation provide that a
663-23 change in the number of directors may be made only by amendment to
663-24 those articles, a change may be made by amendment to the bylaws.
663-25 (e) A provision of the articles of incorporation that
663-26 requires the vote or concurrence of a greater proportion of the
663-27 board of directors than this chapter controls over this chapter.
664-1 (V.A.C.S. Art. 717s, Secs. 3.021(b), (c), (d), (e), (f); 3.033(d)
664-2 (part).)
664-3 Sec. 303.025. CERTIFICATE OF INCORPORATION; BEGINNING OF
664-4 CORPORATE EXISTENCE. (a) The incorporators shall deliver to the
664-5 secretary of state the original and two copies of the articles of
664-6 incorporation and a certified copy of the resolution of the
664-7 sponsor's governing body approving the articles of incorporation.
664-8 (b) If the secretary of state finds that the articles of
664-9 incorporation comply with this chapter and have been approved by
664-10 the sponsor's governing body, the secretary of state, on payment of
664-11 the fees required by this chapter, shall:
664-12 (1) write "filed" on the original and each copy of the
664-13 articles of incorporation and the month, day, and year of the
664-14 filing;
664-15 (2) file the original in the office of the secretary
664-16 of state; and
664-17 (3) issue two certificates of incorporation with a
664-18 copy of the articles of incorporation attached to each.
664-19 (c) The secretary of state shall deliver a certificate of
664-20 incorporation, with a copy of the articles of incorporation
664-21 attached, to the incorporators or their representatives and to the
664-22 sponsor's governing body.
664-23 (d) The corporation's existence begins on issuance of the
664-24 certificate of incorporation.
664-25 (e) The certificate of incorporation is conclusive evidence
664-26 that all conditions precedent required to be performed by the
664-27 incorporators and by the sponsor have been performed and that the
665-1 corporation has been incorporated under this chapter. (V.A.C.S.
665-2 Art. 717s, Secs. 3.021(g), (h), (i).)
665-3 Sec. 303.026. ORGANIZATIONAL MEETING. (a) After issuance
665-4 of the certificate of incorporation and at the call of a majority
665-5 of the incorporators, the board of directors named in the articles
665-6 of incorporation shall hold an organizational meeting in this state
665-7 to adopt bylaws, to elect officers, and for any other purpose.
665-8 (b) Not later than the sixth day before the date of the
665-9 meeting, the incorporators shall mail, postage prepaid, notice to
665-10 each director of the time and place of the meeting. (V.A.C.S.
665-11 Art. 717s, Sec. 3.022.)
665-12 Sec. 303.027. AMENDMENT OF ARTICLES OF INCORPORATION. (a)
665-13 Articles of incorporation may be amended to contain a provision
665-14 that is lawful under this chapter if the sponsor's governing body
665-15 by appropriate resolution determines that the amendment is
665-16 advisable and authorizes or directs that an amendment be made.
665-17 (b) The corporation's president or vice president and the
665-18 secretary or clerk of the sponsor's governing body shall execute
665-19 articles of amendment on behalf of the corporation. An officer
665-20 signing the articles of amendment shall verify those articles.
665-21 (c) The articles of amendment must include:
665-22 (1) the name of the corporation;
665-23 (2) if the amendment alters a provision of the
665-24 original or amended articles of incorporation, an identification by
665-25 reference or description of the altered provision and a statement
665-26 of its text as amended;
665-27 (3) if the amendment is an addition to the original or
666-1 amended articles of incorporation, a statement of that fact and the
666-2 full text of each provision;
666-3 (4) the name and address of the sponsor;
666-4 (5) a statement that the amendment was authorized by
666-5 the sponsor's governing body; and
666-6 (6) the date of the meeting at which the governing
666-7 body adopted or approved the amendment. (V.A.C.S. Art. 717s, Secs.
666-8 3.023(a), (b), (c).)
666-9 Sec. 303.028. CERTIFICATE OF AMENDMENT. (a) The original
666-10 and two copies of the articles of amendment and a certified copy of
666-11 the resolution of the sponsor's governing body authorizing the
666-12 articles shall be delivered to the secretary of state.
666-13 (b) If the secretary of state finds that the articles of
666-14 amendment comply with this chapter and are authorized by the
666-15 sponsor's governing body, the secretary of state, on payment of the
666-16 fees required by this chapter, shall:
666-17 (1) write "filed" on the original and on each copy of
666-18 the articles of amendment and the month, day, and year of the
666-19 filing;
666-20 (2) file the original in the office of the secretary
666-21 of state; and
666-22 (3) issue two certificates of amendment with a copy of
666-23 the articles of amendment attached to each.
666-24 (c) The secretary of state shall deliver to the corporation
666-25 or its representative and to the sponsor's governing body a
666-26 certificate of amendment with a copy of the articles of amendment
666-27 attached.
667-1 (d) The amendment to the articles of incorporation takes
667-2 effect on issuance of the certificate of amendment.
667-3 (e) An amendment does not affect an existing cause of action
667-4 in favor of or against the corporation, a pending suit to which the
667-5 corporation is a party, or an existing right of a person. Change
667-6 of the corporate name by amendment does not abate a suit brought by
667-7 or against the corporation under its former name. (V.A.C.S.
667-8 Art. 717s, Secs. 3.023(d), (e), (f), (g).)
667-9 Sec. 303.029. RESTATED ARTICLES OF INCORPORATION. (a) A
667-10 corporation may authorize, execute, and file restated articles of
667-11 incorporation by following the procedure to amend articles of
667-12 incorporation, including obtaining authorization from the sponsor's
667-13 governing body.
667-14 (b) The restated articles of incorporation must restate the
667-15 entire text of the articles of incorporation as amended or
667-16 supplemented by all previous certificates of amendment. The
667-17 restated articles of incorporation may also contain further
667-18 amendments to the articles of incorporation.
667-19 (c) Unless the restated articles of incorporation include
667-20 amendments that were not previously in the articles of
667-21 incorporation and previous certificates of amendment, the
667-22 introductory paragraph of the restated articles of incorporation
667-23 must contain a statement that the instrument accurately copies the
667-24 articles of incorporation and all amendments that are in effect on
667-25 the date of filing without further changes, except that:
667-26 (1) the number of directors then constituting the
667-27 board of directors and those directors' names and addresses may be
668-1 inserted in place of the similar information concerning the initial
668-2 board of directors; and
668-3 (2) the incorporators' names and addresses may be
668-4 omitted.
668-5 (d) If the restated articles of incorporation contain
668-6 further amendments not included in the articles of incorporation
668-7 and previous certificates of amendment, the instrument containing
668-8 the restated articles of incorporation must:
668-9 (1) include for each further amendment a statement
668-10 that the amendment has been made in conformity with this chapter;
668-11 (2) include the statements required by this chapter to
668-12 be contained in articles of amendment, except that the full text of
668-13 the amendment need not be included except in the restated articles
668-14 of incorporation;
668-15 (3) contain a statement that the instrument accurately
668-16 copies the articles of incorporation and all previous amendments in
668-17 effect on the date of the filing, as further amended by the
668-18 restated articles of incorporation, and that the instrument does
668-19 not contain any other change, except that:
668-20 (A) the number of directors then constituting
668-21 the board of directors and those directors' names and addresses may
668-22 be inserted in place of the similar information concerning the
668-23 initial board of directors; and
668-24 (B) the incorporators' names and addresses may
668-25 be omitted; and
668-26 (4) restate the entire text of the articles of
668-27 incorporation as amended and supplemented by all previous
669-1 certificates of amendment and as further amended by the restated
669-2 articles of incorporation. (V.A.C.S. Art. 717s, Secs. 3.024(a),
669-3 (b), (c), (d).)
669-4 Sec. 303.030. RESTATED CERTIFICATE OF INCORPORATION. (a)
669-5 The original and two copies of the restated articles of
669-6 incorporation and a certified copy of the resolution of the
669-7 sponsor's governing body authorizing the articles shall be
669-8 delivered to the secretary of state.
669-9 (b) If the secretary of state finds that the restated
669-10 articles of incorporation comply with this chapter and have been
669-11 authorized by the sponsor's governing body, the secretary of state,
669-12 on payment of the fees required by this chapter, shall:
669-13 (1) write "filed" on the original and each copy of the
669-14 restated articles of incorporation and the month, day, and year of
669-15 the filing;
669-16 (2) file the original in the office of the secretary
669-17 of state; and
669-18 (3) issue two restated certificates of incorporation
669-19 with a copy of the restated articles of incorporation attached to
669-20 each.
669-21 (c) The secretary of state shall deliver a restated
669-22 certificate of incorporation, with a copy of the restated articles
669-23 of incorporation attached, to the corporation or its representative
669-24 and to the sponsor's governing body.
669-25 (d) On the issuance by the secretary of state of the
669-26 restated certificate of incorporation, the original articles of
669-27 incorporation and all amendments are superseded, and the restated
670-1 articles of incorporation become the corporation's articles of
670-2 incorporation. (V.A.C.S. Art. 717s, Secs. 3.024(e), (f), (g).)
670-3 Sec. 303.031. REGISTERED OFFICE AND AGENT. (a) A
670-4 corporation shall continuously maintain a registered office and
670-5 registered agent in this state.
670-6 (b) The registered office shall be the same as the
670-7 corporation's principal office. The registered agent may be:
670-8 (1) an individual resident of this state whose
670-9 business office is the same as the registered office; or
670-10 (2) a domestic or foreign profit or nonprofit
670-11 corporation that is authorized to transact business or conduct
670-12 affairs in this state and that has a principal or business office
670-13 that is the same as the registered office. (V.A.C.S. Art. 717s,
670-14 Sec. 3.025.)
670-15 Sec. 303.032. CHANGE OF REGISTERED OFFICE OR AGENT. (a) A
670-16 corporation may change its registered office, registered agent, or
670-17 both by filing the original and a copy of a statement in the office
670-18 of the secretary of state. The president or vice president of the
670-19 corporation shall execute and verify the statement.
670-20 (b) The statement must include:
670-21 (1) the corporation's name;
670-22 (2) the post office address of the corporation's
670-23 current registered office;
670-24 (3) if the registered office is to be changed, the
670-25 post office address of the corporation's new registered office;
670-26 (4) the name of the corporation's registered agent;
670-27 (5) if the registered agent is to be changed, the name
671-1 of the successor registered agent;
671-2 (6) a statement that, after the change, the post
671-3 office address of the registered office will be the same as the
671-4 post office address of the business office of the registered agent;
671-5 and
671-6 (7) a statement that the change was authorized by the
671-7 board of directors or by a corporate officer authorized by the
671-8 board of directors to make the change.
671-9 (c) If the secretary of state finds that the statement
671-10 complies with this chapter, the secretary of state, when all fees
671-11 have been paid as required by this chapter, shall:
671-12 (1) write "filed" on the original and each copy of the
671-13 statement and the month, day, and year of the filing;
671-14 (2) file the original statement in the office of the
671-15 secretary of state; and
671-16 (3) return the copy of the statement to the
671-17 corporation or its representative.
671-18 (d) The change made by the statement takes effect on the
671-19 filing of the statement. (V.A.C.S. Art. 717s, Secs. 3.026(a), (b),
671-20 (c), (d).)
671-21 Sec. 303.033. RESIGNATION OF REGISTERED AGENT. (a) A
671-22 registered agent of a corporation may resign by:
671-23 (1) mailing or delivering written notice to the
671-24 corporation; and
671-25 (2) filing the original and two copies of the notice
671-26 in the office of the secretary of state not later than the 10th day
671-27 after the date the notice is mailed or delivered to the
672-1 corporation.
672-2 (b) The notice must include:
672-3 (1) the corporation's last known address;
672-4 (2) a statement that written notice was given to the
672-5 corporation; and
672-6 (3) the date the written notice was given to the
672-7 corporation.
672-8 (c) If the secretary of state finds that the notice complies
672-9 with this chapter, the secretary of state, on payment of all fees
672-10 required by this chapter, shall:
672-11 (1) write "filed" on the original notice and both
672-12 copies and the month, day, and year of the filing;
672-13 (2) file the original notice in the office of the
672-14 secretary of state;
672-15 (3) return one copy of the notice to the resigning
672-16 registered agent; and
672-17 (4) deliver one copy of the notice to the corporation
672-18 at the address shown in the notice.
672-19 (d) The resignation takes effect on the 31st day after the
672-20 date the notice is received by the secretary of state. (V.A.C.S.
672-21 Art. 717s, Secs. 3.026(e), (f), (g).)
672-22 Sec. 303.034. AGENTS FOR SERVICE. (a) The president, each
672-23 vice president, and the registered agent of a corporation are the
672-24 corporation's agents on whom a process, notice, or demand required
672-25 or permitted by law to be served on the corporation may be served.
672-26 (b) If a corporation does not appoint or maintain a
672-27 registered agent in this state or if the registered agent cannot
673-1 with reasonable diligence be found at the registered office, the
673-2 secretary of state is an agent of the corporation on whom a
673-3 process, notice, or demand may be served.
673-4 (c) The secretary of state may be served by delivering two
673-5 copies of the process, notice, or demand to the secretary of state,
673-6 the assistant secretary of state, or a clerk in charge of the
673-7 corporation department of the secretary of state's office. The
673-8 secretary of state shall immediately forward one copy of the
673-9 process, notice, or demand by registered mail to the corporation at
673-10 its registered office.
673-11 (d) Service on the secretary of state is returnable not
673-12 earlier than the 30th day after the date of service.
673-13 (e) The secretary of state shall keep a record of each
673-14 process, notice, and demand served, including the time of the
673-15 service and the action of the secretary of state in reference to
673-16 the process, notice, or demand. (V.A.C.S. Art. 717s, Sec. 3.027.)
673-17 Sec. 303.035. BOARD. (a) A corporation's affairs are
673-18 governed by a board of directors composed of at least three
673-19 individuals appointed by the sponsor's governing body. Directors
673-20 may be divided into classes.
673-21 (b) A director serves for a term of not more than six years.
673-22 The terms of directors of different classes may be of different
673-23 lengths.
673-24 (c) A director holds office for the term to which the
673-25 director is appointed and until a successor is appointed and has
673-26 qualified.
673-27 (d) The sponsor's governing body may remove a director for
674-1 cause or at any time without cause.
674-2 (e) A director serves without compensation but is entitled
674-3 to reimbursement for actual expenses incurred in the performance
674-4 of duties under this chapter. (V.A.C.S. Art. 717s, Secs. 3.028(a),
674-5 (b), (c), (d), (e).)
674-6 Sec. 303.036. OFFICERS. (a) The officers of a corporation
674-7 are:
674-8 (1) the president, vice president, and secretary; and
674-9 (2) other officers, including a treasurer, and
674-10 assistant officers considered necessary.
674-11 (b) An officer is elected or appointed at the time, in the
674-12 manner, and for the term provided by the articles of incorporation
674-13 or bylaws, except that an officer's term may not exceed three
674-14 years. If the articles of incorporation or bylaws do not contain
674-15 those requirements, the board of directors shall elect or appoint
674-16 each officer annually.
674-17 (c) A person may simultaneously hold more than one office,
674-18 except that the same person may not simultaneously hold the offices
674-19 of president and secretary.
674-20 (d) An officer may be removed by the persons authorized to
674-21 elect or appoint the officer if those persons believe the best
674-22 interests of the corporation will be served by the removal.
674-23 (e) A director who is a member of the governing body or an
674-24 officer or employee of the sponsor is eligible to serve as an
674-25 officer of the corporation. (V.A.C.S. Art. 717s, Sec. 3.029.)
674-26 Sec. 303.037. INDEMNIFICATION. (a) Except as provided by
674-27 Subsection (c), a corporation may indemnify a director, officer,
675-1 employee, or agent or former director, officer, employee, or agent
675-2 for expenses and costs, including attorney's fees, actually or
675-3 necessarily incurred by the person in connection with a claim
675-4 asserted against the person, by action in court or another forum,
675-5 because of the person's being or having been a director, officer,
675-6 employee, or agent.
675-7 (b) Except as provided by Subsection (c), if a corporation
675-8 has not fully indemnified a director, officer, employee, or agent
675-9 of the corporation under Subsection (a), the court in a proceeding
675-10 in which a claim is asserted against the director, officer,
675-11 employee, or agent of the corporation or a court having
675-12 jurisdiction over an action brought by the director, officer,
675-13 employee, or agent on a claim for indemnity may assess indemnity
675-14 against the corporation or its receiver or trustee. The assessment
675-15 must equal:
675-16 (1) the amount that the director, officer, employee,
675-17 or agent paid to satisfy the judgment or compromise the claim, not
675-18 including any amount paid the corporation; and
675-19 (2) to the extent the court considers reasonable and
675-20 equitable, the expenses and costs, including attorney's fees,
675-21 actually and necessarily incurred by the director, officer,
675-22 employee, or agent in connection with the claim.
675-23 (c) A corporation may not provide indemnity in a matter if
675-24 the director, officer, employee, or agent is guilty of negligence
675-25 or misconduct in relation to the matter. A court may not assess
675-26 indemnity unless it finds that the director, officer, employee, or
675-27 agent was not guilty of negligence or misconduct in relation to the
676-1 matter in which indemnity is sought. (V.A.C.S. Art. 717s, Sec.
676-2 3.030.)
676-3 Sec. 303.038. BYLAWS. (a) The board of directors shall
676-4 adopt a corporation's initial bylaws and may amend or repeal the
676-5 bylaws or adopt new bylaws. The bylaws and each amendment and
676-6 repeal of the bylaws must be approved by the sponsor's governing
676-7 body by resolution.
676-8 (b) The bylaws may contain any provision for the regulation
676-9 and management of the corporation's affairs consistent with law and
676-10 the articles of incorporation. (V.A.C.S. Art. 717s, Sec. 3.031.)
676-11 Sec. 303.039. COMMITTEES. (a) If permitted by the articles
676-12 of incorporation or bylaws, the board of directors, by resolution
676-13 adopted by a majority of directors in office, may designate one or
676-14 more committees consisting of two or more directors to exercise the
676-15 board's authority in the management of the corporation to the
676-16 extent provided by the resolution, articles of incorporation, or
676-17 bylaws. The designation of a committee or delegation of authority
676-18 to a committee does not relieve the board of directors or an
676-19 individual director of a responsibility imposed by law.
676-20 (b) Other committees not exercising the authority of the
676-21 board of directors in the management of the corporation may be
676-22 designated. The composition of those committees may be limited to
676-23 directors, and the committee members shall be designated and
676-24 appointed by:
676-25 (1) the board of directors by resolution; or
676-26 (2) the president, if authorized by the articles of
676-27 incorporation, the bylaws, or a resolution of the board of
677-1 directors. (V.A.C.S. Art. 717s, Sec. 3.032.)
677-2 Sec. 303.040. MEETINGS; QUORUM. (a) A regular or special
677-3 meeting of the board of directors must be called and held as
677-4 provided by the bylaws. A regular or special meeting may be held
677-5 at any location in this state.
677-6 (b) A director's attendance at a meeting waives notice to
677-7 the director of the meeting, unless the attendance is for the
677-8 express purpose of objecting to the transaction of any business on
677-9 the ground that the meeting is not lawfully called or convened.
677-10 (c) A quorum is the lesser of:
677-11 (1) a majority of the number of directors established
677-12 by the bylaws or, if the bylaws do not establish a number of
677-13 directors, a majority of the number of directors stated in the
677-14 articles of incorporation; or
677-15 (2) the number of directors, not less than three,
677-16 established as a quorum by the articles of incorporation or bylaws.
677-17 (d) The act of a majority of the directors present at a
677-18 meeting at which a quorum is present is an act of the board of
677-19 directors, unless the act of a larger number is required by the
677-20 articles of incorporation or bylaws. (V.A.C.S. Art. 717s, Secs.
677-21 3.033(a), (b), (c), (d) (part).)
677-22 Sec. 303.041. CORPORATION'S GENERAL POWERS. (a) Subject to
677-23 Section 303.045, a corporation has the rights and powers necessary
677-24 or convenient to accomplish the corporation's purposes, including
677-25 the power to:
677-26 (1) acquire title to a public facility in order to
677-27 lease, convey, or dispose of the public facility to the
678-1 corporation's sponsor or, on direction of the sponsor and in
678-2 furtherance of the sponsor's purposes, to another entity;
678-3 (2) accept a mortgage or pledge of a public facility
678-4 financed, refinanced, or provided by sponsor obligations purchased
678-5 by the corporation and, as security for the payment of any
678-6 connected bonds or credit agreements that the corporation issues or
678-7 incurs:
678-8 (A) assign the mortgage or pledge and the
678-9 revenue and receipts from the mortgage or pledge and from the
678-10 sponsor obligations; or
678-11 (B) grant other security;
678-12 (3) sell, convey, mortgage, pledge, lease, exchange,
678-13 transfer, and otherwise dispose of all or any part of the
678-14 corporation's property and other assets, including sponsor
678-15 obligations;
678-16 (4) make a contract, incur a liability, and borrow
678-17 money at interest;
678-18 (5) lend money for its corporate purposes, invest its
678-19 money, and take and hold security for the payment of money loaned
678-20 or invested;
678-21 (6) sue and be sued in its corporate name;
678-22 (7) appoint agents of the corporation and determine
678-23 their duties; and
678-24 (8) have a corporate seal and use the seal by having
678-25 it or a facsimile of it impressed on, affixed to, or reproduced on
678-26 an instrument required or authorized to be executed by the
678-27 corporation's proper officers.
679-1 (b) Subsection (a) does not authorize a corporate officer or
679-2 director to exercise a power specified in that subsection in a
679-3 manner that is inconsistent with the corporation's articles of
679-4 incorporation or bylaws or beyond the scope of the corporation's
679-5 purposes.
679-6 (c) A sponsor may not delegate to a corporation the power of
679-7 taxation or eminent domain, a police power, or an equivalent
679-8 sovereign power of this state or the sponsor. (V.A.C.S. Art. 717s,
679-9 Sec. 4.041.)
679-10 Sec. 303.042. TAXATION. (a) A public facility, including a
679-11 leasehold estate in a public facility, that is owned by a
679-12 corporation and that, except for the purposes and nonprofit nature
679-13 of the corporation, would be taxable to the corporation under Title
679-14 1, Tax Code, shall be assessed to the user of the public facility
679-15 to the same extent and subject to the same exemptions from taxation
679-16 as if the user owned the public facility. If there is more than
679-17 one user of the public facility, the public facility shall be
679-18 assessed to the users in proportion to the value of the rights of
679-19 each user to occupy, operate, manage, or use the public facility.
679-20 (b) The user of a public facility is considered the owner of
679-21 the facility for purposes of the application of:
679-22 (1) sales and use taxes in the construction, sale,
679-23 lease, or rental of the public facility; and
679-24 (2) other taxes imposed by this state or a political
679-25 subdivision of this state.
679-26 (c) A corporation is engaged exclusively in performance of
679-27 charitable functions and is exempt from taxation by this state or a
680-1 municipality or other political subdivision of this state. Bonds
680-2 issued by a corporation under this chapter, a transfer of the
680-3 bonds, interest on the bonds, and a profit from the sale or
680-4 exchange of the bonds are exempt from taxation by this state or a
680-5 municipality or other political subdivision of this state.
680-6 (V.A.C.S. Art. 717s, Sec. 4.042.)
680-7 Sec. 303.043. NET EARNINGS. No part of a corporation's net
680-8 earnings remaining after payment of its bonds and expenses in
680-9 accomplishing its public purpose may benefit a person other than
680-10 the sponsor of the corporation. (V.A.C.S. Art. 717s, Sec. 4.048.)
680-11 Sec. 303.044. OPEN MEETINGS; OPEN RECORDS. A corporation
680-12 and its board of directors are considered to be governmental bodies
680-13 under Chapters 551 and 552, Government Code. (V.A.C.S. Art. 717s,
680-14 Sec. 3.028(f).)
680-15 Sec. 303.045. ALTERATION OF CORPORATION OR ACTIVITIES. The
680-16 sponsor of a corporation, in its sole discretion, may alter the
680-17 corporation's structure, organization, programs, or activities,
680-18 consistent with the other provisions of this chapter and subject to
680-19 limitations provided by law relating to the impairment of contracts
680-20 entered into by the corporation. (V.A.C.S. Art. 717s, Sec. 4.049.)
680-21 Sec. 303.046. EXAMINATION OF BOOKS AND RECORDS. A
680-22 representative of the sponsor may examine all books and other
680-23 records of the corporation at any time. (V.A.C.S. Art. 717s, Sec.
680-24 4.050.)
680-25 Sec. 303.047. WAIVER OF NOTICE. If a notice is required to
680-26 be given to a director by this chapter, the articles of
680-27 incorporation, or the bylaws, a written waiver of the notice signed
681-1 by the person entitled to the notice, before or after the time that
681-2 would have been stated in the notice, is equivalent to giving the
681-3 notice. (V.A.C.S. Art. 717s, Sec. 4.054.)
681-4 (Sections 303.048-303.070 reserved for expansion
681-5 SUBCHAPTER C. BONDS
681-6 Sec. 303.071. AUTHORITY TO ISSUE. With the specific
681-7 approval by resolution of the governing body of its sponsor, a
681-8 corporation may issue or incur bonds, including refunding bonds, to
681-9 finance, refinance, or provide one or more public facilities.
681-10 (V.A.C.S. Art. 717s, Secs. 4.043(a) (part), 4.047 (part).)
681-11 Sec. 303.072. SOURCE OF PAYMENT. (a) Bonds of a
681-12 corporation are payable from revenue derived from public facilities
681-13 or sponsor obligations. Bonds issued under this chapter are not an
681-14 obligation or a pledge of the faith and credit of this state, a
681-15 sponsor or other political subdivision of this state, or an agency
681-16 of this state.
681-17 (b) Each bond must contain on its face a statement that,
681-18 except to the extent of the sponsor obligations, neither the faith
681-19 and credit nor the taxing power of this state, the sponsor, or
681-20 another political subdivision of this state is pledged to the
681-21 payment of the principal of or the interest on the bonds.
681-22 (V.A.C.S. Art. 717s, Sec. 4.045.)
681-23 Sec. 303.073. TERMS. (a) A bond issued under this chapter
681-24 must mature not later than 40 years after its date.
681-25 (b) Bonds issued under this chapter may be sold in any
681-26 manner authorized by the corporation and permitted by Chapter 1201,
681-27 Government Code.
682-1 (c) The interest rate on the bonds may be determined by a
682-2 formula or index or in accordance with a contract or other
682-3 arrangement for the periodic determination of interest rates.
682-4 (V.A.C.S. Art. 717s, Secs. 4.043(b) (part), (c) (part).)
682-5 Sec. 303.074. USE OF PROCEEDS. (a) The proceeds of the
682-6 bonds of a corporation may be used to:
682-7 (1) finance, refinance, or provide one or more public
682-8 facilities;
682-9 (2) maintain reserve funds determined by the sponsor
682-10 and the corporation to be necessary and appropriate; or
682-11 (3) pay any costs relating to the issuance or
682-12 incurrence of bonds by the corporation and the purchase of sponsor
682-13 obligations by the corporation, including:
682-14 (A) the cost of:
682-15 (i) financing charges and interest on the
682-16 bonds;
682-17 (ii) financing, legal, accounting,
682-18 financial advisory, and appraisal fees, expenses, and
682-19 disbursements;
682-20 (iii) an insurance policy;
682-21 (iv) printing, engraving, and reproduction
682-22 services;
682-23 (v) the initial and acceptance fees of a
682-24 trustee, paying agent, bond registrar, or authenticating agent; and
682-25 (vi) a credit agreement; and
682-26 (B) reasonable amounts to reimburse the
682-27 corporation for time spent by its agents or employees with respect
683-1 to the issuance, incurrence, or purchase.
683-2 (b) The purchase by the corporation of a sponsor obligation
683-3 does not extinguish the debt represented by the sponsor obligation.
683-4 (c) Pending a use described by Subsection (a), the proceeds
683-5 may be invested in accordance with Section 303.041. (V.A.C.S.
683-6 Art. 717s, Secs. 1.003(5), 4.043(e).)
683-7 Sec. 303.075. REFUNDING OBLIGATIONS. (a) A corporation may
683-8 issue or incur bonds to refund its outstanding bonds or sponsor
683-9 obligations of its sponsor, including any redemption premium on
683-10 them and interest accrued to the date of redemption.
683-11 (b) The provisions of this chapter generally applicable to
683-12 bonds apply to the issuance, maturity, terms, and holder's rights
683-13 in the refunding bonds and to the corporation's rights, duties, and
683-14 obligations in relation to the refunding bonds.
683-15 (c) The corporation may issue the refunding bonds in
683-16 exchange or substitution for outstanding bonds or sponsor
683-17 obligations or may sell the refunding bonds and use the proceeds to
683-18 pay or redeem outstanding bonds or sponsor obligations.
683-19 (d) A corporation may issue or incur bonds to refund
683-20 outstanding debt obligations of a nonprofit corporation created by
683-21 a housing authority under the Texas Non-Profit Corporation Act
683-22 (Article 1396-1.01 et seq., Vernon's Texas Civil Statutes).
683-23 (V.A.C.S. Art. 717s, Sec. 4.044.)
683-24 Sec. 303.076. APPROVAL OF BONDS BY OTHER ENTITIES. Except
683-25 as required by Chapter 1202, Government Code, and Section 303.071 a
683-26 corporation may issue bonds, acquire sponsor obligations, and enter
683-27 into credit agreements under this chapter without the consent or
684-1 approval of any other subdivision or agency of this state.
684-2 (V.A.C.S. Art. 717s, Sec. 4.047 (part).)
684-3 Sec. 303.077. PERFECTION OF SECURITY INTEREST. (a) This
684-4 section applies only to a security interest granted by:
684-5 (1) a corporation as security for its bonds;
684-6 (2) a credit agreement pledged as security for the
684-7 obligations of the corporation on the bonds; or
684-8 (3) a credit agreement issued or entered into in
684-9 connection with the bonds.
684-10 (b) Notwithstanding Section 9.104, Business & Commerce Code,
684-11 and without any other filing, a security interest is perfected
684-12 until payment of the bonds and credit agreement, with the effect
684-13 specified by Chapter 9, Business & Commerce Code, when the bonds
684-14 are registered by the comptroller. (V.A.C.S. Art. 717s, Sec.
684-15 4.053.)
684-16 Sec. 303.078. PURCHASE OF SPONSOR OBLIGATIONS. A sponsor
684-17 may sell its sponsor obligations to a corporation that the sponsor
684-18 has created at public or private sale on the terms the governing
684-19 body of the sponsor determines. (V.A.C.S. Art. 717s, Sec. 2.011(c)
684-20 (part).)
684-21 (Sections 303.079-303.100 reserved for expansion
684-22 SUBCHAPTER D. DISSOLUTION OF CORPORATION
684-23 Sec. 303.101. DISSOLUTION AUTHORIZED. After a corporation's
684-24 bonds and other obligations are paid and discharged, or adequate
684-25 provision is made for their payment and discharge, the sponsor's
684-26 governing body by written resolution may authorize and direct the
684-27 dissolution of the corporation. (V.A.C.S. Art. 717s, Sec.
685-1 4.051(a).)
685-2 Sec. 303.102. ARTICLES OF DISSOLUTION. (a) Articles of
685-3 dissolution on behalf of the corporation must be executed by:
685-4 (1) the president or vice president and the secretary
685-5 or assistant secretary; or
685-6 (2) the presiding officer of the sponsor's governing
685-7 body and the secretary or clerk of that body.
685-8 (b) An officer signing the articles of dissolution must
685-9 verify them.
685-10 (c) The articles of dissolution must include:
685-11 (1) the name of the corporation;
685-12 (2) the name and address of the sponsor;
685-13 (3) a statement that the dissolution was authorized by
685-14 the sponsor's governing body;
685-15 (4) the date of the meeting at which the dissolution
685-16 was authorized;
685-17 (5) a statement that all of the corporation's bonds
685-18 and other obligations have been paid and discharged or that
685-19 adequate provision has been made for their payment and discharge;
685-20 and
685-21 (6) a statement that no suit is pending in a court
685-22 against the corporation or that adequate provision has been made
685-23 for the satisfaction of any judgment, order, or decree that may be
685-24 entered against the corporation in each pending suit. (V.A.C.S.
685-25 Art. 717s, Secs. 4.051(b), (c), (d).)
685-26 Sec. 303.103. CERTIFICATE OF DISSOLUTION. (a) The original
685-27 and two copies of the articles of dissolution shall be delivered to
686-1 the secretary of state.
686-2 (b) If the secretary of state finds that the articles of
686-3 dissolution comply with this chapter and have been authorized by
686-4 the sponsor's governing body, the secretary of state, on payment of
686-5 the fees required by this chapter, shall:
686-6 (1) write "filed" on the original and each copy of the
686-7 articles of dissolution and the month, day, and year of the filing;
686-8 (2) file the original in the office of the secretary
686-9 of state; and
686-10 (3) issue two certificates of dissolution with a copy
686-11 of the articles of dissolution attached to each.
686-12 (c) The secretary of state shall deliver a certificate of
686-13 dissolution, with a copy of the articles of dissolution attached,
686-14 to the representative of the dissolved corporation and to the
686-15 sponsor's governing body.
686-16 (d) The existence of the corporation ceases on the issuance
686-17 of the certificate of dissolution, except for the purpose of suits,
686-18 other proceedings, and appropriate corporate action by the
686-19 directors and officers of the corporation as provided by this
686-20 chapter. (V.A.C.S. Art. 717s, Secs. 4.051(e), (f), (g), (h).)
686-21 Sec. 303.104. EXTENSION OF DURATION. If a corporation is
686-22 dissolved by expiration of its duration, the corporation may amend
686-23 its articles of incorporation to extend its duration before the
686-24 third anniversary of the date of dissolution. (V.A.C.S. Art. 717s,
686-25 Sec. 4.052(b).)
686-26 Sec. 303.105. VESTING PROPERTY IN SPONSORING ENTITY. The
686-27 title to all funds and other property owned by a corporation when
687-1 it dissolves automatically vests in the corporation's sponsor
687-2 without further conveyance, transfer, or other act. (V.A.C.S.
687-3 Art. 717s, Sec. 4.051(i).)
687-4 Sec. 303.106. RIGHTS, CLAIMS, AND LIABILITIES BEFORE
687-5 DISSOLUTION. (a) The dissolution of a corporation by the
687-6 expiration of its duration or by the issuance of a certificate of
687-7 dissolution does not impair a remedy available to or against the
687-8 corporation or a director or officer of the corporation for a right
687-9 or claim existing or a liability incurred before the dissolution,
687-10 if action or other proceeding on the remedy is begun before the
687-11 third anniversary of the date of the dissolution.
687-12 (b) The action may be prosecuted or defended by the
687-13 corporation in its corporate name.
687-14 (c) The directors and officers may take corporate or other
687-15 action as appropriate to protect the remedy, right, or claim.
687-16 (V.A.C.S. Art. 717s, Sec. 4.052(a).)
687-17 (Sections 303.107-303.120 reserved for expansion
687-18 SUBCHAPTER E. ADMINISTRATION BY SECRETARY OF STATE
687-19 Sec. 303.121. ADMINISTRATION OF CHAPTER. The secretary of
687-20 state may act as reasonably necessary to efficiently administer
687-21 this chapter and to perform the duties imposed by this chapter.
687-22 (V.A.C.S. Art. 717s, Sec. 4.055.)
687-23 Sec. 303.122. FEES. (a) The secretary of state shall
687-24 charge and collect fees for:
687-25 (1) filing articles of incorporation and issuing two
687-26 certificates of incorporation;
687-27 (2) filing articles of amendment and issuing two
688-1 certificates of amendment;
688-2 (3) filing a statement of change of address of
688-3 registered office or change of registered agent or both;
688-4 (4) filing restated articles of incorporation and
688-5 issuing two restated certificates of incorporation; and
688-6 (5) filing articles of dissolution.
688-7 (b) The fees are in the amounts charged by the secretary of
688-8 state for the respective filings and issuances under the Texas
688-9 Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's
688-10 Texas Civil Statutes). (V.A.C.S. Art. 717s, Sec. 4.056.)
688-11 Sec. 303.123. NOTICE AND APPEAL OF DISAPPROVAL. (a) If the
688-12 secretary of state does not approve a document required by this
688-13 chapter to be approved by the secretary of state, the secretary of
688-14 state, not later than the 10th day after the date the document is
688-15 delivered to the secretary of state, shall give written notice of
688-16 the disapproval to the person who delivered the document. The
688-17 notice must state the reasons for the disapproval.
688-18 (b) The person may appeal the disapproval to a district
688-19 court of Travis County by filing with the clerk of the court a
688-20 petition including a copy of the disapproved document and a copy of
688-21 the disapproval notice.
688-22 (c) The court shall try the matter de novo and either
688-23 sustain the secretary of state's action or direct the secretary of
688-24 state to take action the court considers proper. (V.A.C.S.
688-25 Art. 717s, Sec. 4.057.)
688-26 Sec. 303.124. DOCUMENTS AS PRIMA FACIE EVIDENCE. A court,
688-27 public office, or official body shall receive the following
689-1 documents as prima facie evidence of the facts, or the existence or
689-2 nonexistence of the facts, stated in the documents:
689-3 (1) a certificate issued by the secretary of state
689-4 under this chapter;
689-5 (2) a copy, certified by the secretary of state, of a
689-6 document filed in the office of the secretary of state under this
689-7 chapter; and
689-8 (3) a certificate of the secretary of state under the
689-9 state seal as to the existence or nonexistence of a fact relating
689-10 to a corporation that would not appear from a document or
689-11 certificate under Subdivision (1) or (2). (V.A.C.S. Art. 717s,
689-12 Sec. 4.058.)
689-13 SECTION 12. CONFORMING AMENDMENT. Chapter 323, Local
689-14 Government Code, is amended by adding Subchapter C to read as
689-15 follows:
689-16 SUBCHAPTER C. ADDITIONAL LIBRARY AUTHORITY
689-17 Sec. 323.051. ACQUISITION AND LOCATION OF LIBRARY. (a) The
689-18 commissioners court of a county may:
689-19 (1) purchase, construct, repair, equip, or improve a
689-20 building or other permanent improvement for county library use;
689-21 (2) acquire land for county library use; and
689-22 (3) determine the location in the county of each
689-23 county library building or permanent improvement.
689-24 (b) A county that maintains a permanent improvement fund
689-25 shall use money in that fund to pay for each library building,
689-26 repair, or improvement. (V.A.C.S. Art. 1696a, Sec. 1.)
689-27 Sec. 323.052. COUNTY LIBRARY BONDS. (a) A county may issue
690-1 bonds, and impose ad valorem taxes for payment of the bonds, to pay
690-2 the cost of:
690-3 (1) purchasing, constructing, repairing, equipping, or
690-4 improving a building or other permanent improvement for county
690-5 library use; or
690-6 (2) acquiring land for county library use.
690-7 (b) The issuance of the bonds and the imposition of the
690-8 taxes must be in conformity with Subtitles A and C, Title 9,
690-9 Government Code. (V.A.C.S. Art. 1696a, Sec. 2.)
690-10 SECTION 13. CONFORMING AMENDMENT. Chapter 402, Local
690-11 Government Code, is amended by adding Subchapters G and H to read
690-12 as follows:
690-13 SUBCHAPTER G. MANAGEMENT OF CERTAIN ENCUMBERED MUNICIPAL
690-14 ELECTRIC UTILITY SYSTEMS
690-15 Sec. 402.121. APPLICABILITY OF SUBCHAPTER. This subchapter
690-16 applies only to a home-rule municipality that owns an electric
690-17 utility system, by ordinance elects to have the management and
690-18 control of the utility system governed by this subchapter, and:
690-19 (1) has outstanding obligations payable solely from
690-20 and secured by a lien on and pledge of the net revenue of the
690-21 system; or
690-22 (2) issues obligations that:
690-23 (A) are payable solely from and secured by a
690-24 lien on and pledge of the net revenue of the system; and
690-25 (B) are approved by the attorney general.
690-26 (V.A.C.S. Art. 1115a, Sec. 1.)
690-27 Sec. 402.122. TRANSFER OF MANAGEMENT AND CONTROL OF ELECTRIC
691-1 UTILITY SYSTEM. (a) A municipality by ordinance may transfer
691-2 management and control of the municipality's electric utility
691-3 system to a five-member board of trustees appointed by the
691-4 municipality's governing body.
691-5 (b) The municipality by ordinance shall prescribe the
691-6 qualifications for appointment to the board. (V.A.C.S. Art. 1115a,
691-7 Sec. 2.)
691-8 Sec. 402.123. AUTHORITY OF BOARD OF TRUSTEES. (a) The
691-9 municipality may delegate to the board of trustees all or part of
691-10 the municipality's authority to:
691-11 (1) establish rates and charges for use of the utility
691-12 system's facilities;
691-13 (2) exercise the power of eminent domain with respect
691-14 to property that will be used by, useful to, or required by the
691-15 utility system; and
691-16 (3) issue obligations in the name of the municipality
691-17 to acquire or construct an improvement to or extension of the
691-18 utility system or to repair the system.
691-19 (b) The municipality may authorize the board of trustees to
691-20 issue obligations under Subsection (a)(3) without the prior
691-21 approval of the municipality. The obligations must be payable
691-22 solely from the net revenue of the utility system.
691-23 (c) The municipality may not delegate to the board of
691-24 trustees the authority to:
691-25 (1) levy or collect ad valorem taxes; or
691-26 (2) issue obligations that are payable in whole or in
691-27 part from ad valorem taxes.
692-1 (d) The municipality and the board of trustees may jointly
692-2 provide for the issuance of obligations payable from ad valorem
692-3 taxes and the utility system's net revenue by adopting identical
692-4 provisions in an ordinance or resolution, as appropriate.
692-5 (V.A.C.S. Art. 1115a, Sec. 3.)
692-6 Sec. 402.124. EFFECT OF PREVIOUSLY ISSUED BONDS. (a) A
692-7 municipality or an existing board of trustees may not exercise a
692-8 power provided by this subchapter in relation to an obligation
692-9 issued before June 14, 1989, unless the ordinance authorizing the
692-10 issuance of the obligation or the deed of trust or trust indenture
692-11 securing payment of the obligation specifically allows the
692-12 municipality or board to exercise the power. The authority of the
692-13 municipality or board in relation to that obligation is subject to
692-14 any restriction or covenant contained in the ordinance, deed of
692-15 trust, or trust indenture.
692-16 (b) The board of trustees may authorize, issue, and sell
692-17 additional obligations on a parity with an obligation issued before
692-18 June 14, 1989, if the ordinance, deed of trust, or trust indenture
692-19 provides for the issuance of the obligations. The obligations must
692-20 be payable from the revenue pledged to pay the previous obligation
692-21 and must be secured by pledges and liens on a parity with the
692-22 pledge securing the previous obligation. (V.A.C.S. Art. 1115a,
692-23 Sec. 4.)
692-24 (Sections 402.125-402.140 reserved for expansion)
692-25 SUBCHAPTER H. MANAGEMENT OF CERTAIN ENCUMBERED MUNICIPAL
692-26 WATER SYSTEMS
692-27 Sec. 402.141. APPLICABILITY OF SUBCHAPTER. This subchapter
693-1 applies only to a home-rule municipality that owns or may own a
693-2 water, wastewater, storm water, or drainage utility system, by
693-3 ordinance elects to have the management and control of two or more
693-4 of those utility systems governed by this subchapter, and:
693-5 (1) has outstanding obligations payable solely from
693-6 and secured by a lien on and pledge of the net revenue of one or
693-7 more of those systems; or
693-8 (2) issues obligations that are payable solely from
693-9 and secured by a lien on and pledge of the net revenue of one or
693-10 more of those systems. (V.A.C.S. Art. 1115b, Sec. 1.)
693-11 Sec. 402.142. TRANSFER OF MANAGEMENT AND CONTROL OF UTILITY
693-12 SYSTEM. (a) A municipality by ordinance may transfer management
693-13 and control of two or more of its water, wastewater, storm water,
693-14 or drainage systems to a board of trustees.
693-15 (b) The board of trustees must consist of at least seven
693-16 members, one of whom must be the presiding officer of the governing
693-17 body of the municipality.
693-18 (c) The ordinance transferring management and control must
693-19 prescribe the number, qualifications, terms of office, succession,
693-20 compensation, powers, and duties of the members of the board of
693-21 trustees.
693-22 (d) On any matter not covered by the ordinance, the board is
693-23 governed by the laws and rules governing the governing body of the
693-24 municipality, to the extent applicable. (V.A.C.S. Art. 1115b, Sec.
693-25 2.)
693-26 SECTION 14. CONFORMING AMENDMENT. Chapter 411, Local
693-27 Government Code, is amended by adding Section 411.008 to read as
694-1 follows:
694-2 Sec. 411.008. BREAKWATERS IN CERTAIN COUNTIES. (a) The
694-3 commissioners court of a county that borders the Gulf of Mexico,
694-4 other than Jefferson, Kenedy, Kleberg, Nueces, Orange, or Willacy
694-5 County, may:
694-6 (1) construct breakwaters;
694-7 (2) issue bonds, time warrants, or certificates of
694-8 indebtedness of the county to pay for the construction; and
694-9 (3) impose ad valorem taxes to pay the bonds,
694-10 warrants, or certificates.
694-11 (b) The commissioners court shall:
694-12 (1) issue any bonds and impose related taxes in
694-13 compliance with Subtitles A and C, Title 9, Government Code; or
694-14 (2) issue any time warrants in compliance with
694-15 Subchapter C, Chapter 262, and impose related taxes in compliance
694-16 with Chapter 1253, Government Code.
694-17 (c) A certificate of indebtedness must be authorized by
694-18 order of the commissioners court. A certificate of indebtedness
694-19 must mature not later than 35 years after its date and must be
694-20 signed by the county judge and attested by the county clerk. The
694-21 commissioners court shall impose a tax sufficient to pay the
694-22 principal of and interest on the certificate as they become due.
694-23 (d) A county that maintains a permanent improvement fund
694-24 shall pay the debt incurred under this section from that fund.
694-25 (V.A.C.S. Art. 6839g, Secs. 1, 2, 3 (part).)
694-26 SECTION 15. CONFORMING AMENDMENT. Subtitle B, Title 13,
694-27 Local Government Code, is amended by adding Chapter 413 to read as
695-1 follows:
695-2 CHAPTER 413. WATER, WASTEWATER, OR SOLID WASTE SYSTEMS
695-3 IN COUNTIES WITH POPULATION OF 10,000 OR LESS
695-4 SUBCHAPTER A. GENERAL PROVISIONS
695-5 Sec. 413.001. APPLICABILITY OF CHAPTER. This chapter
695-6 applies only to a county that:
695-7 (1) adopts an order under Section 413.052; and
695-8 (2) has a population of 10,000 or less, according to
695-9 the most recent federal census, on the date on which the order is
695-10 adopted. (V.A.C.S. Art. 717v, Sec. 1.)
695-11 Sec. 413.002. COUNTY FINANCING OF WATER OR WASTEWATER
695-12 SYSTEM. The commissioners court of a county may spend money in the
695-13 general fund of the county or issue and sell bonds to finance the
695-14 county's:
695-15 (1) wastewater collection and treatment system; or
695-16 (2) water supply and distribution system. (V.A.C.S.
695-17 Art. 717v, Sec. 2.)
695-18 (Sections 413.003-413.050 reserved for expansion
695-19 SUBCHAPTER B. COUNTY UTILITY SYSTEM BOARD FOR WATER,
695-20 WASTEWATER, OR SOLID WASTE SYSTEM
695-21 Sec. 413.051. DEFINITION. In this subchapter, "board" means
695-22 a county utility system board established under Section 413.052.
695-23 (New.)
695-24 Sec. 413.052. AUTHORITY TO ESTABLISH BOARD. (a) The
695-25 commissioners court of a county by order adopted at a regular
695-26 meeting of the court may establish a county utility system board to
695-27 operate and manage the county's:
696-1 (1) wastewater collection and treatment system;
696-2 (2) water supply and distribution system; or
696-3 (3) solid waste collection and disposal system.
696-4 (b) The board is responsible for the operation and
696-5 management of each utility system that is:
696-6 (1) owned or being acquired by the county; and
696-7 (2) placed under its control under Subsection (a).
696-8 (V.A.C.S. Art. 717v, Secs. 2A(a), (b).)
696-9 Sec. 413.053. BOARD COMPOSITION. (a) The board is composed
696-10 of five directors.
696-11 (b) One director must be a member of the commissioners court
696-12 appointed by the court at its first meeting of each county fiscal
696-13 year.
696-14 (c) Four directors are elected by voters in the county. The
696-15 elected positions are designated as positions 1, 2, 3, and 4.
696-16 Elected directors serve two-year terms with the terms of positions
696-17 1 and 3 beginning October 1 of each odd-numbered year and the terms
696-18 of positions 2 and 4 beginning October 1 of each even-numbered
696-19 year. A candidate must be a qualified voter of the county.
696-20 (d) An election shall be held on the second Saturday of each
696-21 September to fill the appropriate director positions.
696-22 (e) The commissioners court shall appoint temporary
696-23 directors to serve until the initially elected directors take
696-24 office. (V.A.C.S. Art. 717v, Secs. 2A(c) (part), (d).)
696-25 Sec. 413.054. BOARD OFFICERS. (a) The directors shall
696-26 select a president, vice president, secretary, and treasurer to
696-27 serve one-year terms.
697-1 (b) The president and vice president must be members of the
697-2 board. The secretary and treasurer are not required to be board
697-3 members.
697-4 (c) The offices of secretary and treasurer may be combined.
697-5 (d) The president is the board's chief executive officer and
697-6 budget officer and shall preside at the meetings of the board.
697-7 (e) The vice president shall act as president if the
697-8 president is incapacitated or absent from a meeting.
697-9 (f) The secretary shall keep the records and the minutes of
697-10 the meetings of the board.
697-11 (g) The board shall require the treasurer to give a bond in
697-12 the amount equal to the estimated amount to be held, at any time,
697-13 by the treasurer. The board shall pay the bond premium. (V.A.C.S.
697-14 Art. 717v, Sec. 2A(e) (part).)
697-15 Sec. 413.055. COMPENSATION OF DIRECTORS. A director is
697-16 entitled to receive:
697-17 (1) reimbursement for actual expenses incurred in
697-18 conducting the business of the board; and
697-19 (2) a fee in the amount set by the commissioners court
697-20 for each meeting attended. (V.A.C.S. Art. 717v, Sec. 2A(p).)
697-21 Sec. 413.056. APPLICABILITY OF OTHER LAW TO BOARD AND
697-22 COUNTY. (a) The board is subject to:
697-23 (1) Subchapter C, Chapter 262;
697-24 (2) the open meetings law, Chapter 551, Government
697-25 Code;
697-26 (3) the public information law, Chapter 552,
697-27 Government Code; and
698-1 (4) Chapter 2256, Government Code.
698-2 (b) The board is a governmental unit for purposes of Chapter
698-3 101, Civil Practice and Remedies Code, and all of its activities
698-4 are essential governmental functions.
698-5 (c) The board and the county when operating under this
698-6 subchapter are subject to:
698-7 (1) Chapter 271;
698-8 (2) Chapter 1371, Government Code; and
698-9 (3) Subchapters C and D. (V.A.C.S. Art. 717v, Secs.
698-10 2A(m), (n) (part).)
698-11 Sec. 413.057. BYLAWS. (a) The board may adopt bylaws to
698-12 regulate its affairs and establish the area in the county in which
698-13 it has responsibility for providing utility service.
698-14 (b) The bylaws may provide for a seal for the board.
698-15 (V.A.C.S. Art. 717v, Sec. 2A(l) (part).)
698-16 Sec. 413.058. UTILITY SYSTEM'S BUDGET. (a) The president
698-17 of the board, with the assistance of the business manager, shall
698-18 propose a budget for each utility system under the board's control
698-19 that includes for the next fiscal year of the county:
698-20 (1) the anticipated revenue of that utility system by
698-21 each source; and
698-22 (2) the expenses of that utility system and the board.
698-23 (b) The president shall submit the budget to the board not
698-24 later than June 1 of each year.
698-25 (c) The board shall:
698-26 (1) schedule a public hearing to consider the budget
698-27 not later than July 1 of each year;
699-1 (2) adopt a final budget not later than July 15 of
699-2 each year; and
699-3 (3) submit the final budget to the commissioners court
699-4 for consideration as a part of the county budget.
699-5 (d) Until the county budget is adopted, the budget for each
699-6 utility system is the same as the budget for that system in the
699-7 preceding fiscal year. If a system's preceding budget was for a
699-8 period shorter than a complete fiscal year, the budget for that
699-9 system is increased proportionally to cover a fiscal year.
699-10 (e) The board and the commissioners court shall include in
699-11 the budget an amount sufficient to pay and secure any outstanding
699-12 obligation under this chapter to the extent the obligation is
699-13 payable from the revenue of a utility system. (V.A.C.S. Art. 717v,
699-14 Sec. 2A(f).)
699-15 Sec. 413.059. DEPOSIT OF REVENUE. (a) Except as provided
699-16 by Subsection (b), the treasurer of the board shall deposit all
699-17 revenue from a system operated and managed by the board to the
699-18 credit of one or more separate accounts in the county depository.
699-19 (b) The treasurer may deposit amounts set aside for the
699-20 payment or security of obligations issued on behalf of the board
699-21 with the paying agent as provided by the order authorizing the
699-22 issuance of the obligations. (V.A.C.S. Art. 717v, Sec. 2A(e)
699-23 (part).)
699-24 Sec. 413.060. DISBURSEMENT OF UTILITY SYSTEM'S MONEY. (a)
699-25 The board in its bylaws shall provide procedures under which money
699-26 the board deposits in the county depository may be spent only after
699-27 the board has determined that the money for payment was properly
700-1 budgeted. Approval of the board is not required for the transfer
700-2 of money to a paying agent to pay and secure an outstanding
700-3 obligation.
700-4 (b) A check issued by the board must be signed by at least
700-5 two persons, at least one of whom is an officer of the board.
700-6 (V.A.C.S. Art. 717v, Sec. 2A(g).)
700-7 Sec. 413.061. RATES AND CHARGES. The board may establish
700-8 rates and charges for services, fees for connections, security
700-9 deposits, and other charges required for efficient operation of
700-10 each utility system for which it has responsibility. (V.A.C.S.
700-11 Art. 717v, Sec. 2A(h).)
700-12 Sec. 413.062. USE OF EMINENT DOMAIN PROHIBITED. The board
700-13 may not exercise the power of eminent domain. (V.A.C.S.
700-14 Art. 717v, Sec. 2A(i) (part).)
700-15 Sec. 413.063. EXTENSION OR IMPROVEMENT OF SYSTEM. (a) The
700-16 board may provide for an extension or improvement to a utility
700-17 system.
700-18 (b) The board may not provide for the extension of service
700-19 to an area within the boundaries or extraterritorial jurisdiction
700-20 of a municipality or within a conservation and reclamation district
700-21 created under Section 59, Article XVI, Texas Constitution, without
700-22 the consent of the governing body of the municipality or district.
700-23 (c) The service area of the board may not include territory
700-24 that on June 6, 1993, was served by another utility under a
700-25 certificate of public convenience and necessity unless the
700-26 certificate ceases to be effective. (V.A.C.S. Art. 717v, Secs.
700-27 2A(j), (l) (part).)
701-1 Sec. 413.064. PURCHASE OF WATER OR WASTEWATER SYSTEM. With
701-2 the approval of the commissioners court, the board may purchase an
701-3 existing privately owned wastewater collection and treatment system
701-4 or water supply and distribution system that supplies retail
701-5 utility service in the county. (V.A.C.S. Art. 717v, Sec. 2A(k)
701-6 (part).)
701-7 Sec. 413.065. ABOLITION OF CONSERVATION AND RECLAMATION
701-8 DISTRICT. (a) With the consent of the directors of a conservation
701-9 and reclamation district located in a county, the commissioners
701-10 court of the county may assume the outstanding obligations of the
701-11 district and provide for the abolition of the district.
701-12 (b) The territory of the former district remains secondarily
701-13 liable for the payment of any taxes pledged to the payment of an
701-14 outstanding debt of the former district until the debt is paid or
701-15 payment has been provided for, including refunding by the county.
701-16 The commissioners court as the successor to the district shall
701-17 impose those taxes in the territory of the former district.
701-18 (V.A.C.S. Art. 717v, Sec. 2A(k) (part).)
701-19 Sec. 413.066. AUTHORITY TO ISSUE AD VALOREM TAX OBLIGATIONS.
701-20 (a) The board may not incur or issue an obligation that is
701-21 payable, in whole or in part, from ad valorem taxes.
701-22 (b) The commissioners court of the county by order may
701-23 authorize on behalf of the board the issuance of obligations
701-24 payable in whole or in part from ad valorem taxes to acquire,
701-25 improve, repair, or extend the county's wastewater collection
701-26 system, treatment system, water supply and distribution system, or
701-27 solid waste collection and disposal system.
702-1 (c) An order under Subsection (b) must be adopted at a
702-2 regular meeting of the commissioners court.
702-3 (d) If the obligations authorized under this section are
702-4 payable from ad valorem taxes and revenue, the board must also
702-5 approve the issuance of the obligations. (V.A.C.S. Art. 717v,
702-6 Secs. 2A(i) (part), (n) (part).)
702-7 Sec. 413.067. AUTHORITY TO ISSUE REVENUE OBLIGATIONS. The
702-8 board by resolution may authorize the issuance of obligations for
702-9 one or more of the purposes described by Section 413.066(b) that
702-10 are payable solely from the revenue of one or more systems.
702-11 (V.A.C.S. Art. 717v, Sec. 2A(n) (part).)
702-12 Sec. 413.068. MATURITY. An obligation issued under this
702-13 subchapter must mature not later than 40 years after its date.
702-14 (V.A.C.S. Art. 717v, Sec. 2A(o).)
702-15 (Sections 413.069-413.100 reserved for expansion
702-16 SUBCHAPTER C. BONDS FOR WATER OR WASTEWATER SYSTEM
702-17 Sec. 413.101. PLEDGE FOR PAYMENT OF BONDS. The
702-18 commissioners court of a county may provide for the payment of the
702-19 principal of and interest on bonds issued under this chapter:
702-20 (1) by pledging all or part of the county's revenue
702-21 from its wastewater collection and treatment system or water supply
702-22 and distribution system; or
702-23 (2) from other sources. (V.A.C.S. Art. 717v, Sec. 3.)
702-24 Sec. 413.102. ADDITIONAL BOND SECURITY. (a) Bonds issued
702-25 under this chapter may be secured additionally by an encumbrance on
702-26 part or all of the physical property of the wastewater collection
702-27 and treatment system or water supply and distribution system and
703-1 each right relating to that property, vesting in the trustee the
703-2 power to:
703-3 (1) operate the property;
703-4 (2) sell the property to pay the debt; or
703-5 (3) take any other action to secure the bonds.
703-6 (b) Regardless of an encumbrance on the property, a trust
703-7 indenture on the property may:
703-8 (1) contain any provision that the commissioners court
703-9 prescribes for the security of the bonds and the preservation of
703-10 the trust estate;
703-11 (2) provide for amendment or modification of the trust
703-12 indenture; and
703-13 (3) provide for investment of money from the
703-14 wastewater collection and treatment system or water supply and
703-15 distribution system.
703-16 (c) A purchaser under a sale under the encumbrance on the
703-17 physical property:
703-18 (1) is the absolute owner of the property and the
703-19 rights purchased; and
703-20 (2) may maintain and operate the property. (V.A.C.S.
703-21 Art. 717v, Sec. 4.)
703-22 Sec. 413.103. CONTENTS OF ORDER OR RESOLUTION AUTHORIZING
703-23 ISSUANCE OF BONDS. (a) An order or resolution of the
703-24 commissioners court authorizing the issuance of bonds, including
703-25 refunding bonds, under this chapter may:
703-26 (1) provide for the flow of funds and the
703-27 establishment and maintenance of an interest and sinking fund, a
704-1 reserve fund, or another fund;
704-2 (2) prohibit the further issuance of obligations
704-3 payable from the pledged revenues or reserve the right to issue
704-4 additional bonds that are on a parity with, or subordinate to, the
704-5 lien and pledge on the revenue being used to support the bonds
704-6 being issued; and
704-7 (3) contain any other provision determined by the
704-8 commissioners court.
704-9 (b) The commissioners court may make covenants with respect
704-10 to the bonds, the pledged revenues, and the operation and
704-11 maintenance of any facilities the revenue of which is pledged.
704-12 (V.A.C.S. Art. 717v, Secs. 6(a), (b), (c).)
704-13 Sec. 413.104. ADOPTION AND EXECUTION OF DOCUMENTS. The
704-14 commissioners court may adopt and have executed any other
704-15 proceeding or instrument necessary and convenient in the issuance
704-16 of bonds under this chapter. (V.A.C.S. Art. 717v, Sec. 6(d).)
704-17 Sec. 413.105. MATURITY. A bond issued under this chapter
704-18 other than a bond issued under Subchapter B must mature not later
704-19 than 25 years after its date of issuance. (V.A.C.S. Art. 717v,
704-20 Secs. 5(b) (part), 8(b) (part).)
704-21 Sec. 413.106. AUTHORIZED INVESTMENT FOR SAVINGS AND LOAN
704-22 ASSOCIATION. A bond issued under this chapter is an authorized
704-23 investment for a savings and loan association. (V.A.C.S.
704-24 Art. 717v, Sec. 9(a) (part).)
704-25 Sec. 413.107. EXEMPTION FROM TAXATION. A bond issued under
704-26 this chapter, any transaction relating to the bond, and profits
704-27 made in the sale of the bond are exempt from taxation by this state
705-1 or by a municipality or other political subdivision of the state.
705-2 (V.A.C.S. Art. 717v, Sec. 10 (part).)
705-3 (Sections 413.108-413.150 reserved for expansion
705-4 SUBCHAPTER D. REFUNDING BONDS
705-5 Sec. 413.151. AUTHORITY TO ISSUE REFUNDING BONDS. A county
705-6 may issue bonds under this subchapter to refund all or part of its
705-7 outstanding bonds issued under this chapter, including matured but
705-8 unpaid interest coupons. (V.A.C.S. Art. 717v, Sec. 8(a).)
705-9 Sec. 413.152. SOURCES AVAILABLE FOR PAYMENT. Refunding
705-10 bonds issued under this subchapter may be payable from any source,
705-11 including the source from which the bonds to be refunded are
705-12 payable. (V.A.C.S. Art. 717v, Sec. 8(c).)
705-13 Sec. 413.153. REGISTRATION. The comptroller shall register
705-14 refunding bonds issued under this subchapter on surrender and
705-15 cancellation of the bonds to be refunded. (V.A.C.S. Art. 717v, Sec.
705-16 8(d) (part).)
705-17 Sec. 413.154. AUTHORITY TO DEPOSIT WITH PAYING AGENT. (a)
705-18 In an order or resolution authorizing the issuance of refunding
705-19 bonds, the commissioners court may provide that proceeds from the
705-20 sale of the bonds are to be deposited with the person at whose
705-21 location the bonds to be refunded are payable.
705-22 (b) If the authorization includes a provision authorized by
705-23 Subsection (a), the commissioners court may issue the refunding
705-24 bonds before the cancellation of the bonds to be refunded. The
705-25 commissioners court shall deposit with the person at whose location
705-26 the bonds to be refunded are payable an amount sufficient to pay
705-27 the principal of those bonds and interest on those bonds accruing
706-1 to the maturity date or to the option date if the bonds have been
706-2 called for payment before maturity according to their terms.
706-3 (c) The comptroller shall register refunding bonds issued
706-4 under this section without the surrender and cancellation of the
706-5 bonds to be refunded. (V.A.C.S. Art. 717v, Sec. 8(e).)
706-6 Sec. 413.155. MANNER OF REFUNDING. The refunding may take
706-7 place in one delivery or in installment deliveries. (V.A.C.S.
706-8 Art. 717v, Sec. 8(f) (part).)
706-9 SECTION 16. CONFORMING AMENDMENT. Subchapter A, Chapter
706-10 421, Local Government Code, is amended to read as follows:
706-11 SUBCHAPTER A. AUTHORITY OF COUNTY OR MUNICIPALITY BORDERING GULF
706-12 [GENERAL PROVISIONS]
706-13 Sec. 421.001. APPLICABILITY OF SUBCHAPTER. This subchapter
706-14 applies only to a county or municipality that borders the Gulf of
706-15 Mexico. (V.A.C.S. Arts. 6830 (part), 6839 (part).)
706-16 Sec. 421.002. AUTHORIZED PROJECTS; DEBT. (a) The
706-17 commissioners court of the county or the municipal authority of the
706-18 municipality may:
706-19 (1) establish, construct, extend, maintain, or improve
706-20 a seawall, breakwater, levee, floodway, or drainway; and
706-21 (2) improve, maintain, or beautify a boulevard erected
706-22 in connection with the seawall, breakwater, levee, floodway, or
706-23 drainway.
706-24 (b) The commissioners court or municipal authority may incur
706-25 debt for a purpose authorized under Subsection (a). (V.A.C.S.
706-26 Art. 6830 (part).)
706-27 Sec. 421.003. USE OF PUBLIC PROPERTY. (a) The
707-1 commissioners court or municipal authority may impose additional
707-2 uses or restrictions on a street, alley, public highway, or other
707-3 public ground necessary for the location, construction, or
707-4 maintenance of a seawall, breakwater, levee, floodway, or drainway.
707-5 (b) The commissioners court or municipal authority may
707-6 authorize an additional use of the seawall, breakwater, levee,
707-7 floodway, or drainway if that use will not impair the efficiency of
707-8 the seawall, breakwater, levee, floodway, or drainway. (V.A.C.S.
707-9 Art. 6831.)
707-10 Sec. 421.004. ACQUISITION OF PROPERTY; EMINENT DOMAIN. (a)
707-11 The county or municipality may acquire property that is necessary
707-12 for the establishment, construction, and maintenance of a seawall,
707-13 breakwater, levee, floodway, or drainway.
707-14 (b) The county or municipality may exercise the right of
707-15 eminent domain to condemn an interest in real property for the
707-16 purposes described by Subsection (a). The county or municipality
707-17 must exercise the power of eminent domain in the manner provided by
707-18 Chapter 21, Property Code.
707-19 (c) Before exercising the power of eminent domain under this
707-20 section the commissioners court or municipal authority, by order,
707-21 ordinance, or resolution entered in its minutes, shall define and
707-22 describe the real property to be acquired and shall determine
707-23 whether an easement or fee simple interest in the real property is
707-24 to be taken. (V.A.C.S. Art. 6832.)
707-25 Sec. 421.005. CESSION OF USE AND CONTROL OF STATE LAND. The
707-26 state cedes to a county or municipality that uses this subchapter
707-27 the right to the use and control of as much of the land and sea
708-1 bottom below high tide that the commissioners court or municipal
708-2 authority considers necessary for the purposes prescribed by this
708-3 subchapter. (V.A.C.S. Art. 6837.)
708-4 Sec. 421.006. TAX; BONDS. (a) The commissioners court or
708-5 municipal authority may impose a tax to pay the debt incurred under
708-6 Section 421.002. The rate of the tax in any year may not exceed 50
708-7 cents on each $100 of the taxable value of property taxable by the
708-8 county or municipality.
708-9 (b) The commissioners court or municipal authority may issue
708-10 bonds under this subchapter for the payment of the debt, but, if
708-11 revenue from the tax will not pay off the debt within five years,
708-12 the commissioners court or municipal authority shall issue bonds
708-13 for the payment of the debt. (V.A.C.S. Art. 6830 (part).)
708-14 Sec. 421.007. PREREQUISITES FOR ISSUING BONDS; ELECTION.
708-15 (a) Before the commissioners court or municipal authority may
708-16 issue bonds under this subchapter:
708-17 (1) the commissioners court or municipal authority
708-18 shall prescribe the amount of and the rate of interest on bonds to
708-19 be issued; and
708-20 (2) the tax proposed to pay the interest and sinking
708-21 fund on the bonds must be approved by a majority of the voters of
708-22 the county or municipality, as appropriate, voting at an election
708-23 held on the proposed tax.
708-24 (b) The election shall be held in accordance with Chapter
708-25 1251, Government Code. In addition to the notice required under
708-26 Section 1251.003, Government Code, and Chapter 4, Election Code,
708-27 the commissioners court or municipal authority shall mail to each
709-1 registered voter in the county or municipality a copy of the ballot
709-2 proposition before the 10th day preceding the date of the election.
709-3 (c) The commissioners court or municipal authority shall
709-4 issue any bonds under this subchapter in compliance with the
709-5 applicable provisions of Subtitles A and C, Title 9, Government
709-6 Code. (V.A.C.S. Arts. 6833, 6834 (part).)
709-7 Sec. 421.008. ELECTION RESULTS. If the canvass of the
709-8 election returns shows that the requisite number of voters voted in
709-9 favor of the proposition, the commissioners court or municipal
709-10 authority may issue the bonds and impose the tax for the purposes
709-11 provided by this subchapter. (V.A.C.S. Art. 6835 (part).)
709-12 Sec. 421.009. GENERAL LAW APPLICABLE TO BONDS. A bond
709-13 issued under this subchapter is subject to other law regulating
709-14 bonds issued by counties and municipalities to the extent that law
709-15 does not conflict with this subchapter. (V.A.C.S. Art. 6839
709-16 (part).)
709-17 Sec. 421.010. HANDLING OF BOND PROCEEDS AND TAXES. (a) All
709-18 amounts received from the sale of bonds under this subchapter shall
709-19 be deposited with the county or municipal treasurer, as
709-20 appropriate. The county or municipal treasurer shall hold the
709-21 amounts in trust exclusively for the purposes prescribed by this
709-22 subchapter.
709-23 (b) The county or municipality shall hold all taxes
709-24 collected to pay the interest on and principal of bonds issued
709-25 under this subchapter in trust for the payment of the interest and
709-26 principal. Any amount that exceeds the amount required to pay the
709-27 annual interest on the bonds may be invested for the benefit of the
710-1 sinking fund in:
710-2 (1) bonds issued under this subchapter;
710-3 (2) bonds of the state; or
710-4 (3) bonds of the United States. (V.A.C.S. Arts. 6836
710-5 (part), 6838.)
710-6 Sec. 421.011. COOPERATION AND CONTRACTS WITH UNITED STATES.
710-7 (a) The commissioners court or [courts and the] municipal
710-8 authority [authorities of all counties and municipalities bordering
710-9 on the coast of the Gulf of Mexico] may cooperate and contract with
710-10 the United States for grants, loans, or advance payments to carry
710-11 out any of the powers or purposes prescribed by this subchapter
710-12 [Title 118, Revised Statutes].
710-13 (b) The commissioners court or [courts and] municipal
710-14 authority [authorities] may contribute and pay to the United States
710-15 all or any part of the proceeds of bonds they have issued and sold
710-16 under this subchapter [Title 118], in connection with any project
710-17 undertaken by the federal government affecting or relating to the
710-18 construction or maintenance of a seawall, boulevard, or other
710-19 project authorized under this subchapter [Title 118].
710-20 (c) It is the purpose of this section [subchapter] to confer
710-21 on the commissioners court or [courts and] municipal authority
710-22 [authorities] the fullest possible power of contract with regard to
710-23 projects of common interest enumerated in this subchapter [Title
710-24 118], when these projects are approved by an act of the United
710-25 States Congress.
710-26 SECTION 17. CONFORMING AMENDMENT. Section 421.021(a), Local
710-27 Government Code, is amended to read as follows:
711-1 (a) The Commissioners Court of Matagorda County and the
711-2 governing body of a municipality in the county may by resolution
711-3 establish a seawall commission to perform the functions described
711-4 by Section 421.002 [Article 6830, Revised Statutes].
711-5 SECTION 18. CONFORMING AMENDMENT. Sections 421.023(e) and
711-6 (g), Local Government Code, are amended to read as follows:
711-7 (e) The commission may enter into a contract relating to the
711-8 performance of any of the functions described by Section 421.002
711-9 [Article 6830, Revised Statutes].
711-10 (g) The commission may exercise any of the authority granted
711-11 to a county or municipality under Section 421.002, 421.003,
711-12 421.004, or 421.005 or Section 421.011(a) or (b) [:]
711-13 [(1) Articles 6830, 6831, and 6832, Revised Statutes;]
711-14 [(2) Article 6837, Revised Statutes; and]
711-15 [(3) Sections 421.001(a) and (b)].
711-16 SECTION 19. CONFORMING AMENDMENT. Subtitle C, Title 13,
711-17 Local Government Code, is amended by adding Chapter 422 to read as
711-18 follows:
711-19 CHAPTER 422. PUBLIC UTILITY AGENCIES FOR PROVISION OF WATER
711-20 OR SEWER SERVICE
711-21 SUBCHAPTER A. GENERAL PROVISIONS
711-22 Sec. 422.001. DEFINITIONS. In this chapter:
711-23 (1) "Facility" means a facility necessary or
711-24 incidental to the collection, transportation, treatment, or
711-25 disposal of sewage or to the conservation, storage, transportation,
711-26 treatment, or distribution of water, including a plant site,
711-27 right-of-way, and property, equipment, or right of any kind useful
712-1 in connection with the collection, transportation, treatment, or
712-2 disposal of sewage or with the conservation, storage,
712-3 transportation, treatment, or distribution of water.
712-4 (2) "Private entity" means an entity, other than a
712-5 public entity, involved solely in financing, constructing,
712-6 operating, or maintaining water and sewer facilities.
712-7 (3) "Public entity" means a political entity or
712-8 corporate body of this state, including a county, municipality, or
712-9 district or authority created under Section 52, Article III, or
712-10 Section 59, Article XVI, Texas Constitution. (V.A.C.S. Art. 1110f,
712-11 Secs. 2(1), (2), (3).)
712-12 Sec. 422.002. EFFECT OF CHAPTER. This chapter does not
712-13 affect:
712-14 (1) the statutory purposes relating to the
712-15 establishment, operation, or regulation under the Water Code or
712-16 other applicable law of a public entity that may become a co-owner
712-17 of a public utility agency under this chapter; or
712-18 (2) a public or private entity's rights or powers in
712-19 effect on August 27, 1979. (V.A.C.S. Art. 1110f, Secs. 1 (part),
712-20 5(b) (part).)
712-21 Sec. 422.003. CONSTRUCTION. This chapter shall be liberally
712-22 construed to carry out its purposes. (V.A.C.S. Art. 1110f, Secs. 1
712-23 (part), 5(a) (part), (b) (part).)
712-24 Sec. 422.004. CONFLICTS WITH OTHER LAW. This chapter
712-25 prevails to the extent of a conflict between this chapter and any
712-26 other law, including:
712-27 (1) a law regulating the affairs of a municipal
713-1 corporation; or
713-2 (2) a home-rule charter provision. (V.A.C.S.
713-3 Art. 1110f, Sec. 5(a) (part).)
713-4 (Sections 422.005-422.010 reserved for expansion
713-5 SUBCHAPTER B. COOPERATION BY PUBLIC
713-6 AND PRIVATE ENTITIES
713-7 Sec. 422.011. AUTHORITY TO JOINTLY OWN FACILITIES. Two or
713-8 more public entities that have the authority to engage in the
713-9 collection, transportation, treatment, or disposal of sewage or the
713-10 conservation, storage, transportation, treatment, or distribution
713-11 of water may join together as cotenants or co-owners to plan,
713-12 finance, acquire, construct, own, operate, or maintain facilities
713-13 to:
713-14 (1) achieve economies of scale in providing essential
713-15 water and sewage systems to the public;
713-16 (2) promote the orderly economic development of this
713-17 state; and
713-18 (3) provide environmentally sound protection of this
713-19 state's future water and wastewater needs. (V.A.C.S. Art. 1110f,
713-20 Sec. 1 (part).)
713-21 Sec. 422.012. GENERAL RIGHTS, POWERS, AND DUTIES OF PUBLIC
713-22 ENTITIES. (a) Each participating public entity may:
713-23 (1) use the entity's money to plan, acquire,
713-24 construct, own, operate, and maintain its interest in a facility;
713-25 (2) share in the facility;
713-26 (3) issue bonds and other securities to raise money
713-27 for a purpose described by Subdivision (1) in the same manner and
714-1 to the same extent and subject to the same conditions as would be
714-2 applicable if the public entity had sole ownership of the facility;
714-3 (4) acquire, for the use and benefit of each
714-4 participating public entity, land, easements, and property for a
714-5 facility by purchase or by exercising the power of eminent domain;
714-6 and
714-7 (5) transfer or otherwise convey the land, property,
714-8 or property interest or otherwise have the land, property, or
714-9 property interest become vested in other participating public
714-10 entities to the extent and in the manner agreed between the
714-11 entities.
714-12 (b) In relation to a participating public entity's undivided
714-13 interest in a facility, the entity has each right, privilege,
714-14 exemption, power, duty, and liability the entity would have if the
714-15 entity had sole ownership. (V.A.C.S. Art. 1110f, Secs. 1 (part),
714-16 4(a), (b) (part).)
714-17 Sec. 422.013. USE OF EMINENT DOMAIN. (a) A participating
714-18 public entity has the power of eminent domain to be exercised as
714-19 provided by this section.
714-20 (b) The use of eminent domain authority by a participating
714-21 public entity is governed by the law relating to an eminent domain
714-22 proceeding involving a municipality in this state.
714-23 (c) A participating public entity may acquire a fee title to
714-24 the condemned real property, excluding mineral interests.
714-25 (d) A participating public entity may not use eminent domain
714-26 authority to acquire an interest in a facility that belongs to
714-27 another public entity or a private entity. (V.A.C.S. Art. 1110f,
715-1 Sec. 4(b) (part).)
715-2 Sec. 422.014. EXEMPTION FROM TAXATION. A participating
715-3 public entity is entitled to each constitutional or statutory ad
715-4 valorem or other tax exemption attributable to the jointly owned
715-5 facility or to a property or service bought, sold, leased, or used
715-6 to construct, maintain, repair, or operate the facility to the
715-7 extent that the entity would have been exempt from the tax if the
715-8 entity's undivided interest were an entire interest in the facility
715-9 or in the property or service. The entity is entitled to any
715-10 applicable exemption certificate or statement provided by law to
715-11 claim or prove the exemption. (V.A.C.S. Art. 1110f, Sec. 4(c).)
715-12 (Sections 422.015-422.050 reserved for expansion
715-13 SUBCHAPTER C. PUBLIC UTILITY AGENCIES
715-14 Sec. 422.051. DEFINITIONS. In this subchapter:
715-15 (1) "Concurrent ordinance" means an ordinance or
715-16 resolution adopted under this subchapter by two or more public
715-17 entities that relates to the creation or re-creation of a public
715-18 utility agency.
715-19 (2) "Obligation" means a revenue bond or note.
715-20 (3) "Public utility agency" means an agency created
715-21 under this subchapter by two or more public entities to plan,
715-22 finance, construct, own, operate, or maintain facilities.
715-23 (V.A.C.S. Art. 1110f, Secs. 2(4), 3(c) (part); New.)
715-24 Sec. 422.052. CREATION OF PUBLIC UTILITY AGENCY. (a)
715-25 Public entities may create a public utility agency by concurrent
715-26 ordinances.
715-27 (b) A public entity may join in the creation of a public
716-1 utility agency under this subchapter only if, at the time the
716-2 concurrent ordinance is adopted, the entity has the authority to
716-3 engage in the collection, transportation, treatment, or disposal of
716-4 sewage or the conservation, storage, transportation, treatment, or
716-5 distribution of water. This subsection does not prohibit a public
716-6 entity from disposing of a facility after creation of the agency.
716-7 (c) A public utility agency is a:
716-8 (1) separate agency;
716-9 (2) political subdivision of this state; and
716-10 (3) political entity and corporate body.
716-11 (d) A public utility agency may not impose a tax but has all
716-12 the other powers that are related to facilities and that are
716-13 provided by law to a municipality that owns a facility. (V.A.C.S.
716-14 Art. 1110f, Secs. 1 (part), 3(a) (part).)
716-15 Sec. 422.053. RE-CREATION OF PUBLIC UTILITY AGENCY. The
716-16 public entities that create a public utility agency may by
716-17 concurrent ordinances re-create the agency by adding or deleting,
716-18 or both, a public entity. (V.A.C.S. Art. 1110f, Sec. 3(b).)
716-19 Sec. 422.054. NOTICE. (a) The governing body of each
716-20 public entity shall publish notice of its intention to create a
716-21 public utility agency in a newspaper of general circulation in the
716-22 county in which the entity is domiciled.
716-23 (b) A notice under this section must be published once a
716-24 week for two consecutive weeks. The first publication must appear
716-25 not later than the 15th day before the date set for passage of the
716-26 concurrent ordinance.
716-27 (c) The notice must state:
717-1 (1) the date, time, and location at which the
717-2 governing body proposes to adopt the concurrent ordinance; and
717-3 (2) that a public utility agency will be created on
717-4 the date on which the concurrent ordinances take effect. (V.A.C.S.
717-5 Art. 1110f, Sec. 3(a) (part).)
717-6 Sec. 422.055. CONTENTS OF CONCURRENT ORDINANCE. A
717-7 concurrent ordinance creating a public utility agency under Section
717-8 422.052 or re-creating an agency under Section 422.053 must, as
717-9 adopted by each public entity:
717-10 (1) contain identical provisions;
717-11 (2) define the boundaries of the agency to include the
717-12 territory within the boundaries of each participating public entity
717-13 as the boundaries are changed periodically;
717-14 (3) designate the name of the agency; and
717-15 (4) designate the number, place, initial term, and
717-16 manner of appointment of directors in accordance with Section
717-17 422.057. (V.A.C.S. Art. 1110f, Secs. 3(c) (part), 4(d) (part), (e)
717-18 (part).)
717-19 Sec. 422.056. PETITION AND REFERENDUM. (a) If, before the
717-20 date set for the adoption of a concurrent ordinance, 10 percent of
717-21 the registered voters of a public entity present a petition to the
717-22 governing body of the entity requesting that a referendum be
717-23 called, the ordinance may not take effect unless a majority of the
717-24 qualified voters of the entity voting in the election have approved
717-25 the ordinance.
717-26 (b) The public entity must hold the election in conformity
717-27 with:
718-1 (1) the Election Code;
718-2 (2) Chapter 1251, Government Code; and
718-3 (3) this subchapter.
718-4 (c) Except as provided by Subsection (a), a concurrent
718-5 ordinance is not subject to a referendum. (V.A.C.S. Art. 1110f,
718-6 Sec. 3(a) (part).)
718-7 Sec. 422.057. BOARD OF DIRECTORS. (a) A public utility
718-8 agency shall be governed by a board of directors. The board is
718-9 responsible for the management, operation, and control of the
718-10 property belonging to the agency.
718-11 (b) Each director must be appointed by place by the
718-12 governing bodies of the participating public entities. Each
718-13 participating public entity is entitled to appoint at least one
718-14 director.
718-15 (c) An employee, officer, or member of the governing body of
718-16 a public entity may serve as a director but may not have a personal
718-17 interest in a contract executed by the public utility agency other
718-18 than as an employee, officer, or member of the governing body of
718-19 the public entity.
718-20 (d) A director of a public utility agency is entitled to $50
718-21 for each day spent in attending meetings of the board and a per
718-22 diem of $50 if authorized by resolution of the board, plus actual
718-23 expenses incurred in attending the meetings.
718-24 (e) Except as provided by Subsection (d), a director of a
718-25 public utility agency serves without compensation. (V.A.C.S.
718-26 Art. 1110f, Secs. 4(d) (part), (e) (part), (f) (part).)
718-27 Sec. 422.058. POWERS. (a) A public utility agency may not
719-1 engage in any utility business other than the collection,
719-2 transportation, treatment, or disposal of sewage or the
719-3 conservation, storage, transportation, treatment, or distribution
719-4 of water for a participating public entity that owns jointly with
719-5 the agency a facility in this state.
719-6 (b) A public utility agency may:
719-7 (1) perform any act necessary to the full exercise of
719-8 the agency's powers;
719-9 (2) enter into a contract, lease, or agreement with or
719-10 accept a grant or loan from a:
719-11 (A) department or agency of the United States;
719-12 (B) department, agency, or municipality or other
719-13 political subdivision of this state; or
719-14 (C) public or private corporation or person;
719-15 (3) sell, lease, convey, or otherwise dispose of any
719-16 right, interest, or property the agency considers to be unnecessary
719-17 for the efficient operation or maintenance of its facilities; and
719-18 (4) adopt rules to govern the operation of the agency
719-19 and its employees, facilities, and service. (V.A.C.S. Art. 1110f,
719-20 Secs. 3(a) (part), 4(f) (part), (o) (part).)
719-21 Sec. 422.059. CONSTRUCTION CONTRACTS. (a) A public utility
719-22 agency may award a contract for construction of an improvement that
719-23 involves the expenditure of more than $20,000 only on the basis of
719-24 competitive bids.
719-25 (b) The agency shall publish notice of intent to receive
719-26 bids once a week for two consecutive weeks in a newspaper of
719-27 general circulation in the county in which the agency is domiciled.
720-1 The first publication must appear not later than the 15th day
720-2 before the date bids are to be received. (V.A.C.S. Art. 1110f,
720-3 Sec. 4(o) (part).)
720-4 Sec. 422.060. CONTRACTS FOR SEWER OR WATER SERVICES. A
720-5 public utility agency may:
720-6 (1) contract with the public entities creating the
720-7 agency for the collection, transportation, treatment, or disposal
720-8 of sewage or the conservation, storage, transportation, treatment,
720-9 or distribution of water; and
720-10 (2) under terms the agency's board of directors
720-11 considers appropriate, contract with private entities for services
720-12 described by Subdivision (1). (V.A.C.S. Art. 1110f, Sec. 4(f)
720-13 (part).)
720-14 Sec. 422.061. RATES AND CHARGES. (a) In contracting with a
720-15 public or private entity for wastewater collection, transmission,
720-16 treatment, or disposal services or for water conservation, storage,
720-17 transportation, treatment, or distribution, a public utility agency
720-18 must charge rates sufficient to produce revenue adequate to:
720-19 (1) pay all expenses of operation and maintenance;
720-20 (2) pay when due the principal of and interest on
720-21 obligations issued under this subchapter;
720-22 (3) pay the principal of and interest on any legal
720-23 debt of the agency;
720-24 (4) pay when due all sinking and reserve fund
720-25 payments; and
720-26 (5) fulfill any agreements made with the holders of
720-27 any obligations.
721-1 (b) A public utility agency may also establish a reasonable
721-2 depreciation and emergency fund.
721-3 (c) Payments made under a contract with a public utility
721-4 agency constitute an operating expense of the public or private
721-5 entity served under the contract, unless otherwise prohibited by a
721-6 previously outstanding obligation of the purchasing entity.
721-7 (d) Notwithstanding Subsection (a), the state reserves its
721-8 power to regulate and control the rates and charges by a public
721-9 utility agency.
721-10 (e) Until obligations issued under this subchapter have been
721-11 paid and discharged, this state pledges to and agrees with the
721-12 purchasers and successive holders of the obligations that it will
721-13 not limit or alter the powers of the agency to establish and
721-14 collect rates and charges that will produce revenue sufficient to
721-15 pay for those items specified in Subsections (a) and (b) and any
721-16 other obligations of the agency in connection with those items.
721-17 (V.A.C.S. Art. 1110f, Secs. 4(g), (h).)
721-18 Sec. 422.062. OBLIGATIONS. (a) A public utility agency may
721-19 issue obligations to accomplish the purposes of the agency.
721-20 (b) The public utility agency may pledge to the payment of
721-21 the obligations the revenue of all or part of its facilities,
721-22 including facilities acquired after the obligations are issued.
721-23 However, operation and maintenance expenses, including salaries and
721-24 labor, materials, and repairs of facilities necessary to render
721-25 efficient service, are a first lien on and charge against the
721-26 pledged revenue.
721-27 (c) The public utility agency may set aside from the
722-1 proceeds of the sale of the obligations amounts for payment into
722-2 the interest and sinking fund and reserve fund, and for interest
722-3 and operating expenses during construction and development, as
722-4 specified in the proceedings authorizing the obligations.
722-5 (d) Obligation proceeds may be invested, pending their use,
722-6 in securities, interest-bearing certificates, or time deposits as
722-7 specified in the proceedings authorizing the obligations.
722-8 (V.A.C.S. Art. 1110f, Secs. 4(i), (j) (part), (k).)
722-9 Sec. 422.063. REFUNDING NOTES. A public utility agency may
722-10 issue refunding notes for the purpose and in the manner provided by
722-11 general law, including Chapter 1207, Government Code. (V.A.C.S.
722-12 Art. 1110f, Sec. 4(m).)
722-13 Sec. 422.064. FORM AND PROVISIONS OF OBLIGATIONS. (a) An
722-14 obligation issued under this subchapter must mature not later than
722-15 40 years after its date of issuance.
722-16 (b) The obligations must be signed by the presiding officer
722-17 or assistant presiding officer of the public utility agency and be
722-18 attested by the secretary.
722-19 (c) A public utility agency may sell obligations issued
722-20 under this subchapter at public or private sale at a price or under
722-21 the terms the agency determines to be in the best interest of the
722-22 agency. (V.A.C.S. Art. 1110f, Sec. 4(p) (part).)
722-23 SECTION 20. CONFORMING AMENDMENT. Subtitle A, Title 4,
722-24 Transportation Code, is amended by adding Chapter 54 to read as
722-25 follows:
722-26 CHAPTER 54. HARBOR AND PORT FACILITIES IN CERTAIN
722-27 MUNICIPALITIES
723-1 SUBCHAPTER A. GENERAL PROVISIONS
723-2 Sec. 54.001. APPLICABILITY OF CHAPTER. This chapter applies
723-3 only to a municipality that:
723-4 (1) is located on:
723-5 (A) the Gulf of Mexico; or
723-6 (B) a channel, canal, bay, or inlet connected to
723-7 that gulf; and
723-8 (2) has a population of more than 5,000. (V.A.C.S.
723-9 Art. 1187f, Sec. 1 (part).)
723-10 Sec. 54.002. DEFINITIONS. In this chapter:
723-11 (1) "Board" means a board of trustees established
723-12 under Section 54.051.
723-13 (2) "Obligation" includes a bond.
723-14 (3) "Port improvement or facility" means an
723-15 improvement or facility necessary or convenient for the proper
723-16 operation of a port or harbor of a municipality, including:
723-17 (A) land, an interest in land, or property;
723-18 (B) a wharf, pier, or dock;
723-19 (C) a roadway or belt railway;
723-20 (D) a warehouse, grain elevator, transport
723-21 facility, handling facility, or storage facility;
723-22 (E) a ship repair facility, dumping facility,
723-23 bunkering facility, floating plant or facility, lightering
723-24 facility, towing facility, or other facility that a navigation
723-25 district is authorized to provide;
723-26 (F) equipment and supplies; and
723-27 (G) any other structure, building, or facility
724-1 necessary or convenient for the proper operation of a port or
724-2 harbor of the municipality. (V.A.C.S. Art. 1187f, Sec. 1 (part);
724-3 New.)
724-4 Sec. 54.003. AUTHORITY REGARDING PORT IMPROVEMENTS AND
724-5 FACILITIES. (a) A municipality that owns and operates a port may
724-6 construct, acquire, lease, improve, enlarge, extend, repair,
724-7 maintain, replace, develop, or operate a port improvement or
724-8 facility.
724-9 (b) A port improvement or facility may be constructed on
724-10 land acquired by purchase, lease, or otherwise, and the land,
724-11 interest in the land, or port improvement or facility may be
724-12 conveyed by lease, sublease, or sale by installment or otherwise on
724-13 the terms the municipality determines to be advantageous.
724-14 (c) Each power provided by this section is a public and
724-15 governmental function, is exercised for a public purpose, and is a
724-16 matter of public necessity. (V.A.C.S. Art. 1187f, Sec. 1 (part).)
724-17 Sec. 54.004. AUTHORITY TO IMPOSE TAX; ELECTION.
724-18 (a) Notwithstanding any law or charter provision to the contrary,
724-19 the governing body of a municipality may impose a tax at a rate not
724-20 to exceed 10 cents on each $100 of assessed valuation of property
724-21 for the maintenance and operation of a port or harbor of the
724-22 municipality.
724-23 (b) The tax may be imposed only if it has been approved by a
724-24 majority of the qualified voters voting at an election held for
724-25 that purpose.
724-26 (c) Section 41.001(a), Election Code, does not apply to the
724-27 election. (V.A.C.S. Art. 1187f, Sec. 2A.)
725-1 Sec. 54.005. APPLICABILITY OF OTHER LAW. Except to the
725-2 extent that it conflicts or is inconsistent with this chapter,
725-3 Subchapter B, Chapter 1502, Government Code, applies to revenue
725-4 obligations issued under this chapter, and a municipality to which
725-5 this chapter applies has, with respect to a revenue obligation
725-6 issued under this chapter, each power granted by that subchapter.
725-7 (V.A.C.S. Art. 1187f, Sec. 9 (part).)
725-8 (Sections 54.006-54.050 reserved for expansion
725-9 SUBCHAPTER B. MANAGEMENT AND CONTROL OF PORT IMPROVEMENTS
725-10 AND FACILITIES; BOARD OF TRUSTEES
725-11 Sec. 54.051. MANAGEMENT AND CONTROL BY GOVERNING BODY OR
725-12 BOARD. (a) An ordinance authorizing the issuance of obligations
725-13 under this chapter may provide that while the principal of or
725-14 interest on the obligations is outstanding, management and control
725-15 of the port improvement or facility and of the income and revenue
725-16 from the port improvement or facility, including the authority to
725-17 set a charge, prepare a budget, and authorize an expenditure, is
725-18 vested in:
725-19 (1) the governing body of the municipality; or
725-20 (2) the board of trustees named in the ordinance.
725-21 (b) A board may consist of not more than seven members, one
725-22 of whom must be a member of the governing body of the municipality.
725-23 (c) Notwithstanding Subsection (a), if the municipality is
725-24 operating under a home-rule charter that requires that the port
725-25 improvement or facility be managed or controlled by a board of
725-26 trustees, the charter controls. (V.A.C.S. Art. 1187f, Sec. 3(a)
725-27 (part).)
726-1 Sec. 54.052. ORGANIZATION AND DUTIES OF BOARD. (a) An
726-2 ordinance under Section 54.051 that vests management and control of
726-3 a port improvement or facility in a board must:
726-4 (1) specify the board members' compensation;
726-5 (2) specify the members' terms of office;
726-6 (3) specify the members' powers and duties and the
726-7 manner of exercising those powers and duties;
726-8 (4) provide for the election or appointment of the
726-9 members' successors; and
726-10 (5) specify any other matter relating to the members'
726-11 organization and duties.
726-12 (b) If the municipality is operating under a home-rule
726-13 charter that contains a provision relating to a matter described by
726-14 Subsection (a), each provision of the ordinance relating to that
726-15 matter must be in accordance with and is governed by the charter.
726-16 (c) On any matter not covered by the ordinance or the
726-17 municipal charter, the board is governed by the laws and rules
726-18 governing the governing body of the municipality to the extent
726-19 applicable. (V.A.C.S. Art. 1187f, Sec. 3(a) (part).)
726-20 Sec. 54.053. CHARACTER OF BOARD; GENERAL POWERS. (a) A
726-21 board is a body politic and corporate.
726-22 (b) A board may:
726-23 (1) manage, control, maintain, and operate each port
726-24 improvement or facility constituting a port or harbor of the
726-25 municipality;
726-26 (2) employ a general manager and any other officer,
726-27 employee, or representative the board considers appropriate;
727-1 (3) notwithstanding any law or charter provision to
727-2 the contrary:
727-3 (A) prepare and adopt a budget for the operation
727-4 of a port or harbor of the municipality;
727-5 (B) set charges for a service or facility;
727-6 (C) authorize an expenditure; and
727-7 (D) manage and control the income and revenue of
727-8 each port or harbor of the municipality;
727-9 (4) determine policies and adopt rules and procedures
727-10 for the operation of each port or harbor of the municipality;
727-11 (5) acquire property or an interest in property for
727-12 any purpose set forth in Section 54.003 in the manner provided by
727-13 this chapter and construct a port improvement or facility on the
727-14 property;
727-15 (6) contract in its own name, but not in the name of
727-16 the municipality;
727-17 (7) sue and be sued in its own name;
727-18 (8) adopt, use, and alter a corporate seal;
727-19 (9) establish a port security force, employ public
727-20 security officers licensed by the Commission on Law Enforcement
727-21 Officer Standards and Education, and commission employees of the
727-22 force as peace officers;
727-23 (10) own, establish, construct, improve, equip,
727-24 maintain, operate, regulate, protect, or police any transportation
727-25 facility and any necessary appurtenance to that facility; and
727-26 (11) exercise any additional power granted by the
727-27 ordinance or charter. (V.A.C.S. Art. 1187f, Sec. 3(b) (part).)
728-1 Sec. 54.054. COMPETITIVE BIDDING. (a) Except as otherwise
728-2 provided by this chapter, the board may award a contract involving
728-3 the expenditure of more than $15,000 only by competitive bidding.
728-4 (b) Competitive bidding is not required:
728-5 (1) for a contract or expenditure exempt from
728-6 competitive bidding under Section 252.022, Local Government Code,
728-7 or another applicable law;
728-8 (2) for a contract for:
728-9 (A) personal or professional services;
728-10 (B) a real estate transaction;
728-11 (C) operation of a port improvement or facility
728-12 under a specific agreement for a limited term; or
728-13 (D) insurance; or
728-14 (3) if the board determines that the delay posed by
728-15 the competitive bidding procedure would prevent or substantially
728-16 impair the operation of a port. (V.A.C.S. Art. 1187f, Sec. 3(b)
728-17 (part).)
728-18 Sec. 54.055. APPROVAL BY ORDINANCE REQUIRED FOR SALE OF REAL
728-19 PROPERTY. Notwithstanding any other provision of this chapter, a
728-20 board may sell real property only if the governing body of the
728-21 municipality by ordinance approves the sale. (V.A.C.S. Art. 1187f,
728-22 Sec. 11 (part).)
728-23 (Sections 54.056-54.100 reserved for expansion
728-24 SUBCHAPTER C. OBLIGATIONS
728-25 Sec. 54.101. DEFINITION. In this subchapter, "net revenue"
728-26 means the gross revenue derived from the operation of a port
728-27 improvement or facility the net revenue of which is pledged to the
729-1 payment of an obligation less:
729-2 (1) the reasonable expenses of maintaining and
729-3 operating the port improvement or facility, including necessary
729-4 repair, maintenance, and insurance of the port improvement or
729-5 facility; and
729-6 (2) if the municipality pledging the net revenue is a
729-7 home-rule municipality, any annual payment of the municipality
729-8 provided for in the charter. (V.A.C.S. Art. 1187f, Sec. 4(a)
729-9 (part).)
729-10 Sec. 54.102. AUTHORITY OF MUNICIPALITY TO ISSUE OBLIGATIONS.
729-11 The governing body of a municipality by ordinance may issue in the
729-12 name of the municipality obligations payable from taxes, revenue,
729-13 or both to provide money for a port improvement or facility.
729-14 (V.A.C.S. Art. 1187f, Secs. 2 (part), 6(a) (part), (b) (part).)
729-15 Sec. 54.103. ELECTION. (a) Obligations payable from ad
729-16 valorem taxes, other than refunding obligations, may be issued only
729-17 if authorized by a majority of the qualified voters voting at an
729-18 election held under Chapter 1251, Government Code.
729-19 (b) Notwithstanding any law or charter provision to the
729-20 contrary, an election is not required to authorize the issuance
729-21 under this chapter of obligations payable solely from revenue if:
729-22 (1) the obligations are not:
729-23 (A) a debt of the municipality; or
729-24 (B) a pledge of the faith and credit of the
729-25 municipality; and
729-26 (2) the owner or holder of an obligation is not
729-27 entitled to demand payment from money raised by taxation.
730-1 (V.A.C.S. Art. 1187f, Sec. 2 (part).)
730-2 Sec. 54.104. AUTHORITY OF BOARD TO ISSUE OBLIGATIONS. (a)
730-3 A board by resolution may issue in the name of the board, with the
730-4 consent of the governing body of the municipality:
730-5 (1) obligations payable from revenue in the manner
730-6 provided by this chapter to provide money for a port improvement or
730-7 facility or to refund previously issued obligations;
730-8 (2) expense warrants drawn against the revenue of the
730-9 board to pay expenses during the fiscal year of the board in which
730-10 the warrants are issued; or
730-11 (3) certificates of participation in contractual
730-12 obligations to pay money.
730-13 (b) Notwithstanding any other provision of this chapter, a
730-14 board may issue obligations only if the governing body of the
730-15 municipality by ordinance approves the issuance. (V.A.C.S.
730-16 Art. 1187f, Secs. 3(b) (part), 6(b) (part), 11 (part).)
730-17 Sec. 54.105. LIMITATION ON AGGREGATE AMOUNT OF EXPENSE
730-18 WARRANTS. The aggregate amount of expense warrants issued under
730-19 Section 54.104(a)(2) that are outstanding at any time during a
730-20 fiscal year may not exceed 50 percent of the difference between:
730-21 (1) the revenue of the board budgeted for that fiscal
730-22 year; and
730-23 (2) the principal of and interest on board obligations
730-24 other than expense warrants to be paid from the revenue of the
730-25 board during that fiscal year. (V.A.C.S. Art. 1187f, Sec. 3(b)
730-26 (part).)
730-27 Sec. 54.106. MATURITY OF OBLIGATION. An obligation issued
731-1 under this chapter must mature not later than 40 years after its
731-2 date. (V.A.C.S. Art. 1187f, Secs. 6(a) (part), (b) (part).)
731-3 Sec. 54.107. SIGNATURES. (a) An obligation issued by a
731-4 municipality under this chapter must be signed by the mayor or
731-5 presiding officer of the municipality and countersigned by the
731-6 municipal secretary or municipal clerk.
731-7 (b) An obligation authorized by a board under this
731-8 subchapter must be signed by the presiding officer of the board and
731-9 countersigned by the secretary or assistant secretary. (V.A.C.S.
731-10 Art. 1187f, Secs. 6(a) (part), (b) (part).)
731-11 Sec. 54.108. SALE OF OBLIGATIONS. (a) Obligations issued
731-12 under this chapter shall be sold at a public or private sale under
731-13 terms determined by the governing body or the board issuing the
731-14 obligations to be the most advantageous and reasonably obtainable.
731-15 (b) Subsection (a) applies to obligations payable from
731-16 revenue notwithstanding any restriction in a municipal charter to
731-17 the contrary. (V.A.C.S. Art. 1187f, Secs. 4(a) (part), 6(a)
731-18 (part), (b) (part).)
731-19 Sec. 54.109. CONTENTS OF ORDINANCE OR RESOLUTION AUTHORIZING
731-20 ISSUANCE OF OBLIGATIONS PAYABLE FROM REVENUE. (a) The ordinance
731-21 of the governing body of the municipality or the resolution of the
731-22 board authorizing the issuance of obligations payable from revenue
731-23 may:
731-24 (1) provide for the flow of funds and the
731-25 establishment and maintenance of an interest and sinking fund,
731-26 reserve fund, or other fund;
731-27 (2) specify a depository for the money; and
732-1 (3) contain any additional covenant, as considered
732-2 appropriate, with respect to the obligations, the pledged revenue,
732-3 and the operation and maintenance of each port improvement or
732-4 facility the net revenue of which is pledged, including provisions
732-5 for:
732-6 (A) the lease of a port improvement or facility;
732-7 and
732-8 (B) the use or pledge of money derived from that
732-9 lease.
732-10 (b) The ordinance or resolution or another proceeding may:
732-11 (1) prohibit the further issuance of obligations
732-12 payable from pledged revenue; or
732-13 (2) reserve the right to issue additional obligations
732-14 to be secured by a pledge of and payable from the net revenue on a
732-15 parity with, or subordinate to, the lien and pledge in support of
732-16 the obligations being issued, subject to any condition provided by
732-17 the ordinance, resolution, or other proceeding.
732-18 (c) The ordinance, resolution, or other proceeding may
732-19 provide for an annual payment to the general fund of the
732-20 municipality to be made from revenue received from the operation of
732-21 the port improvement or facility the net revenue of which is
732-22 pledged. The amount of the payment may be specified in:
732-23 (1) the ordinance, resolution, or proceeding; or
732-24 (2) the charter of the municipality if the
732-25 municipality is a home-rule municipality.
732-26 (d) The ordinance, resolution, or other proceeding may
732-27 provide that surplus net revenue received from the operation of the
733-1 port improvement or facility the net revenue of which is pledged
733-2 may be used for the payment of the principal of and interest on any
733-3 obligation payable from taxes issued by the municipality under this
733-4 chapter.
733-5 (e) The ordinance, resolution, or other proceeding may
733-6 contain other provisions and covenants. If the municipality is a
733-7 home-rule municipality, the provisions must be consistent with any
733-8 charter provision relating to the port improvement or facility that
733-9 is not inconsistent with this chapter. (V.A.C.S. Art. 1187f, Sec.
733-10 5.)
733-11 Sec. 54.110. REVIEW AND APPROVAL OF CONTRACTS RELATING TO
733-12 REVENUE OBLIGATIONS. (a) If revenue obligations issued under this
733-13 chapter state that they are secured in whole or in part by a pledge
733-14 of the proceeds from a contract, including a lease contract, a copy
733-15 of the contract and of the proceedings authorizing the contract
733-16 must be submitted to the attorney general with the record relating
733-17 to the issuance of the obligations.
733-18 (b) The approval by the attorney general of the obligations
733-19 is approval of the contract.
733-20 (c) After approval, the contract is incontestable except for
733-21 forgery or fraud. (V.A.C.S. Art. 1187f, Sec. 6(c) (part).)
733-22 Sec. 54.111. SECURITY FOR AND PAYMENT OF OBLIGATIONS PAYABLE
733-23 FROM REVENUE. (a) Obligations issued under this chapter and
733-24 payable from revenue may be secured solely by and paid from a
733-25 pledge of the net revenue derived from the operation of all or a
733-26 designated part of a port improvement or facility then in existence
733-27 or to be improved, constructed, or acquired.
734-1 (b) While the principal of or interest on the obligations is
734-2 outstanding, the issuer shall:
734-3 (1) impose and collect charges in an amount sufficient
734-4 to pay:
734-5 (A) maintenance and operation expenses of the
734-6 port improvement or facility the net revenue of which is pledged;
734-7 (B) the interest on the obligations as it
734-8 accrues; and
734-9 (C) the principal of the obligations as the
734-10 obligations mature; and
734-11 (2) make any other payment prescribed by the
734-12 ordinance, resolution, or other proceeding authorizing or relating
734-13 to the issuance of the obligations.
734-14 (c) Obligations payable from revenue may be secured:
734-15 (1) solely by a pledge of all or part of the revenue
734-16 from any lease, sublease, sale, or contract of sale entered into by
734-17 the municipality or board with respect to the port improvement or
734-18 facility to be financed with the obligations; or
734-19 (2) as provided by Subdivision (1) and by a trust
734-20 indenture and a mortgage or deed of trust lien on or security
734-21 interest in the port improvement or facility. (V.A.C.S.
734-22 Art. 1187f, Secs. 4(a) (part), (b) (part).)
734-23 Sec. 54.112. USE OF CERTAIN PROCEEDS. From the proceeds
734-24 from the sale of obligations issued under this chapter, there may
734-25 be appropriated or set aside:
734-26 (1) an amount for the payment of interest expected to
734-27 accrue while a port improvement or facility is under construction;
735-1 (2) an amount necessary to pay all expenses incurred
735-2 and to be incurred in the issuance, sale, and delivery of the
735-3 obligations; and
735-4 (3) an amount required by the ordinance or resolution
735-5 authorizing the issuance of the obligations to be deposited to the
735-6 credit of a reserve fund or other fund specified by the ordinance
735-7 or resolution. (V.A.C.S. Art. 1187f, Sec. 7.)
735-8 Sec. 54.113. LEASE OR SALE OF PORT IMPROVEMENTS AND
735-9 FACILITIES. (a) In connection with the issuance of obligations
735-10 payable from revenue, a municipality or board may lease, sublease,
735-11 or sell to any person, firm, corporation, partnership, political
735-12 subdivision of this state, or agency of the United States any port
735-13 improvement or facility to be constructed or acquired with the
735-14 proceeds of the obligations.
735-15 (b) A lease, sublease, or contract of sale may contain any
735-16 provision the municipality or board determines advantageous,
735-17 including, in the case of a lease, a provision for:
735-18 (1) the sale of a port improvement or facility at the
735-19 termination of the lease; or
735-20 (2) the management and operation of a port improvement
735-21 or facility by the lessee.
735-22 (c) A lease or contract of sale may provide that the lessee
735-23 or purchaser of a port improvement or facility is unconditionally
735-24 obligated to make payments for use or purchase of the port
735-25 improvement or facility in amounts adequate to timely pay the
735-26 principal of and interest and premium on the obligations issued to
735-27 finance the construction or acquisition of the port improvement or
736-1 facility. (V.A.C.S. Art. 1187f, Sec. 4(b) (part).)
736-2 Sec. 54.114. ENCUMBRANCE OF PORT IMPROVEMENTS OR FACILITIES
736-3 FINANCED BY OBLIGATIONS PAYABLE FROM AD VALOREM TAXES. A
736-4 municipality may not encumber a port improvement or facility
736-5 financed by obligations payable from ad valorem taxes unless
736-6 authorized at the election required by Section 54.103. (V.A.C.S.
736-7 Art. 1187f, Sec. 9 (part).)
736-8 (Sections 54.115-54.150 reserved for expansion
736-9 SUBCHAPTER D. REFUNDING OBLIGATIONS
736-10 Sec. 54.151. APPLICABILITY OF LAW RELATING TO ORIGINAL
736-11 OBLIGATIONS. The provisions of this chapter relating to original
736-12 obligations apply to refunding obligations issued under this
736-13 chapter to the extent the provisions can be made to apply.
736-14 (V.A.C.S. Art. 1187f, Sec. 8(e).)
736-15 Sec. 54.152. AUTHORITY TO ISSUE TAX REFUNDING OBLIGATIONS.
736-16 The governing body of a municipality, under the procedures provided
736-17 by this chapter, may issue tax obligations to refund outstanding
736-18 tax obligations, including original or refunding obligations,
736-19 issued by the municipality under this chapter. (V.A.C.S.
736-20 Art. 1187f, Sec. 8(a).)
736-21 Sec. 54.153. AUTHORITY TO ISSUE REVENUE REFUNDING
736-22 OBLIGATIONS. The governing body of a municipality or a board,
736-23 under the procedures provided by this chapter, may issue
736-24 obligations payable from revenue to refund outstanding obligations
736-25 payable from revenue, including original or refunding obligations:
736-26 (1) issued under this chapter;
736-27 (2) issued for a purpose described by Section 54.003;
737-1 or
737-2 (3) payable from the revenue of a port improvement or
737-3 facility. (V.A.C.S. Art. 1187f, Sec. 8(b) (part).)
737-4 Sec. 54.154. TERMS OF ISSUANCE OF REVENUE REFUNDING
737-5 OBLIGATIONS. (a) Revenue refunding obligations may:
737-6 (1) be combined with new or original revenue
737-7 obligations into one series or issue;
737-8 (2) be issued to refund obligations of more than one
737-9 series or issue;
737-10 (3) combine the pledges securing the obligations to be
737-11 refunded to secure the revenue refunding obligations; or
737-12 (4) be secured by a pledge of other or additional net
737-13 revenue.
737-14 (b) A revenue refunding obligation may bear interest at a
737-15 rate higher than that of the obligation to be refunded. (V.A.C.S.
737-16 Art. 1187f, Sec. 8(b) (part).)
737-17 Sec. 54.155. REGISTRATION OF REFUNDING OBLIGATIONS BY
737-18 COMPTROLLER. (a) Except as provided by Subsection (b), the
737-19 comptroller shall register refunding obligations on surrender and
737-20 cancellation of the obligations to be refunded.
737-21 (b) The comptroller shall register refunding obligations
737-22 without the surrender and cancellation of the obligations to be
737-23 refunded if the ordinance or resolution authorizing the issuance of
737-24 the refunding obligations requires that:
737-25 (1) the obligations be sold at public or private sale;
737-26 and
737-27 (2) the proceeds from the sale be deposited:
738-1 (A) in a place where the underlying obligations
738-2 are payable; or
738-3 (B) with the comptroller.
738-4 (c) Refunding obligations to which Subsection (b) applies
738-5 may be issued in an amount sufficient to pay the principal of and
738-6 interest on the obligations to be refunded to the option or
738-7 maturity date of the obligations. (V.A.C.S. Art. 1187f, Sec. 8(c)
738-8 (part).)
738-9 Sec. 54.156. ESCROW AGREEMENT. (a) The proceeds from
738-10 revenue refunding obligations that are deposited as provided by
738-11 Section 54.155(b)(2) shall be deposited under an escrow agreement
738-12 so that the proceeds and interest earned from the investment of the
738-13 proceeds will be available to pay the principal of and interest on
738-14 the obligations to be refunded as each becomes due.
738-15 (b) The escrow agreement may provide that the proceeds may,
738-16 until needed to pay principal and interest as each becomes due, be
738-17 invested in direct obligations of the United States.
738-18 (c) Interest earned on an investment described by Subsection
738-19 (b):
738-20 (1) may be pledged to the payment of the principal of
738-21 and interest on the obligations to be refunded or the refunding
738-22 obligations; or
738-23 (2) shall be considered as revenue of the applicable
738-24 port improvement or facility. (V.A.C.S. Art. 1187f, Sec. 8(c)
738-25 (part).)
738-26 SECTION 21. CONFORMING AMENDMENT. The heading to Subchapter
738-27 A, Chapter 256, Transportation Code, is amended to read as follows:
739-1 SUBCHAPTER A. FUNDS USED FOR COUNTY ROADS; GENERAL PROVISIONS
739-2 SECTION 22. CONFORMING AMENDMENT. Subchapter A, Chapter
739-3 256, Transportation Code, is amended by adding Section 256.010 to
739-4 read as follows:
739-5 Sec. 256.010. APPLICABILITY OF CHAPTER TO COUNTY OPERATING
739-6 UNDER SPECIAL ROAD TAX LAW. A county operating under a special
739-7 road tax law may take any action authorized by this chapter.
739-8 (V.A.C.S. Art. 726, Sec. 2.016 (part).)
739-9 SECTION 23. CONFORMING AMENDMENT. Subchapter A, Chapter
739-10 257, Transportation Code, is amended by adding Section 257.006 to
739-11 read as follows:
739-12 Sec. 257.006. APPLICABILITY OF CHAPTER TO COUNTY OPERATING
739-13 UNDER SPECIAL ROAD TAX LAW. A county operating under a special
739-14 road tax law may take any action authorized by this chapter.
739-15 (V.A.C.S. Art. 726, Sec. 2.016 (part).)
739-16 SECTION 24. CONFORMING AMENDMENT. Subtitle E, Title 6,
739-17 Transportation Code, is amended by adding Chapter 317 to read as
739-18 follows:
739-19 CHAPTER 317. ELIMINATION OF GRADE-LEVEL STREET CROSSINGS BY
739-20 RAILROAD LINES IN MUNICIPALITIES WITH
739-21 POPULATION OF MORE THAN 100,000
739-22 SUBCHAPTER A. GENERAL PROVISIONS
739-23 Sec. 317.001. APPLICABILITY OF CHAPTER. This chapter
739-24 applies only to a municipality with a population of more than
739-25 100,000. (V.A.C.S. Art. 1105c, Sec. 1 (part).)
739-26 Sec. 317.002. DEFINITION. In this chapter, "facility" means
739-27 property that the governing body of a municipality considers
740-1 necessary for the elimination of a grade-level crossing by a
740-2 railroad line from a street of the municipality or for the
740-3 relocation of a railroad line within the municipality, including:
740-4 (1) land;
740-5 (2) a right-of-way;
740-6 (3) an elevated structure;
740-7 (4) a grade separation;
740-8 (5) an underpass or overpass;
740-9 (6) a passenger station, depot, or other building;
740-10 (7) an interchange yard;
740-11 (8) a railroad track; and
740-12 (9) any other improvement. (V.A.C.S. Art. 1105c, Sec.
740-13 1 (part).)
740-14 Sec. 317.003. AUTHORITY REGARDING FACILITIES. (a) To
740-15 decrease hazards to life or property, promote public safety or
740-16 convenience, improve traffic conditions, or encourage the orderly
740-17 development of the municipality, a municipality may acquire,
740-18 construct, improve, enlarge, extend, maintain, repair, or replace a
740-19 facility.
740-20 (b) Activities authorized by Subsection (a) include:
740-21 (1) removing and relocating railroad tracks, a utility
740-22 line or pipe, or another improvement;
740-23 (2) removing or demolishing a building or another
740-24 improvement;
740-25 (3) paying for damage to other property in connection
740-26 with an activity described by that subsection; or
740-27 (4) improving a street in connection with an activity
741-1 described by that subsection. (V.A.C.S. Art. 1105c, Sec. 1
741-2 (part).)
741-3 Sec. 317.004. APPLICABILITY OF OTHER LAW. Except to the
741-4 extent that it conflicts or is inconsistent with this chapter,
741-5 Subchapter B, Chapter 1502, Government Code, applies to revenue
741-6 bonds issued under this chapter, and a municipality to which this
741-7 chapter applies has, with respect to a revenue bond issued under
741-8 this chapter, each power granted by that subchapter. (V.A.C.S.
741-9 Art. 1105c, Sec. 12.)
741-10 Sec. 317.005. CONFLICT WITH MUNICIPAL CHARTER. To the
741-11 extent of a conflict between this chapter and a municipal charter,
741-12 this chapter controls. (V.A.C.S. Art. 1105c, Sec. 15 (part).)
741-13 Sec. 317.006. AGREEMENTS. (a) In this section, "agreement"
741-14 includes a contract, lease, conveyance, contract of sale, or
741-15 lease-purchase contract.
741-16 (b) The governing body of a municipality may enter into an
741-17 agreement with any person with respect to a facility, including an
741-18 agreement in connection with or incidental to the acquisition,
741-19 financing, construction, or operation of a facility, if the
741-20 governing body:
741-21 (1) considers the agreement necessary or convenient to
741-22 implement this chapter; and
741-23 (2) authorizes the agreement by ordinance or
741-24 resolution.
741-25 (c) The mayor or other presiding officer of the municipality
741-26 must execute the agreement, and the municipal secretary or clerk
741-27 must attest to the agreement.
742-1 (d) An agreement entered into by a municipality under this
742-2 chapter is binding on the municipality and its governing body.
742-3 (V.A.C.S. Art. 1105c, Sec. 2 (part).)
742-4 Sec. 317.007. EMINENT DOMAIN. (a) A municipality may
742-5 exercise the power of eminent domain to acquire the fee simple
742-6 title to, an easement in, or a right-of-way over or through any
742-7 property, including water or land under water, that the governing
742-8 body of the municipality determines necessary to accomplish a
742-9 purpose provided by Section 317.003.
742-10 (b) A municipality may not condemn property under Subsection
742-11 (a) if the property is used for cemetery purposes.
742-12 (c) A municipality shall pay adequate compensation to the
742-13 owner of property that is taken, damaged, or destroyed in the
742-14 accomplishment of a purpose provided by Section 317.003.
742-15 (d) A municipality may pay compensation and damages
742-16 adjudicated in a condemnation proceeding or damage to the property
742-17 of a person in the accomplishment of a purpose provided by Section
742-18 317.003 from:
742-19 (1) the proceeds of tax or revenue bonds issued under
742-20 this chapter; or
742-21 (2) other available municipal money.
742-22 (e) Chapter 21, Property Code, governs the procedure for the
742-23 exercise of the power of eminent domain under this section.
742-24 (V.A.C.S. Art. 1105c, Sec. 14.)
742-25 (Sections 317.008-317.050 reserved for expansion
742-26 SUBCHAPTER B. MANAGEMENT AND CONTROL OF FACILITIES;
742-27 BOARD OF TRUSTEES
743-1 Sec. 317.051. DEFINITION. In this subchapter, "board" means
743-2 a board of trustees established under Section 317.052. (New.)
743-3 Sec. 317.052. MANAGEMENT AND CONTROL BY GOVERNING BODY OR
743-4 BOARD. An ordinance authorizing the issuance of revenue bonds
743-5 under this chapter may provide that while the principal of or
743-6 interest on the bonds is outstanding, and regardless of whether the
743-7 facility is encumbered under Section 317.112, management and
743-8 control of the facility is vested in:
743-9 (1) the governing body of the municipality; or
743-10 (2) the board of trustees named in the ordinance.
743-11 (V.A.C.S. Art. 1105c, Sec. 10 (part).)
743-12 Sec. 317.053. COMPOSITION OF BOARD. A board may consist of
743-13 not more than seven members, one of whom must be a member of the
743-14 governing body of the municipality. (V.A.C.S. Art. 1105c, Sec. 10
743-15 (part).)
743-16 Sec. 317.054. ORGANIZATION AND DUTIES OF BOARD. (a) An
743-17 ordinance under Section 317.052 that vests management and control
743-18 of a facility in a board must:
743-19 (1) specify the board members' compensation, which may
743-20 not exceed five percent of the gross revenue of the facility;
743-21 (2) specify the members' terms of office;
743-22 (3) specify the members' powers and duties and the
743-23 manner of exercising those powers and duties;
743-24 (4) provide for the election or appointment of the
743-25 members' successors; and
743-26 (5) specify any other matter relating to the members'
743-27 organization and duties.
744-1 (b) On any matter not covered by the ordinance, the board is
744-2 governed by the laws and rules governing the governing body of the
744-3 municipality to the extent applicable. (V.A.C.S. Art. 1105c, Sec.
744-4 10 (part).)
744-5 (Sections 317.055-317.100 reserved for expansion
744-6 SUBCHAPTER C. BONDS
744-7 Sec. 317.101. DEFINITION. In this subchapter, "net revenue"
744-8 means the gross revenue derived from the operation or use of a
744-9 facility the net revenue of which is pledged to the payment of a
744-10 bond less the reasonable expenses of maintaining and operating the
744-11 facility, including necessary repair and insurance of the facility.
744-12 (V.A.C.S. Art. 1105c, Sec. 4 (part).)
744-13 Sec. 317.102. AUTHORITY TO ISSUE BONDS. The governing body
744-14 of a municipality by ordinance may issue tax bonds, revenue bonds,
744-15 or both to provide money for a facility. (V.A.C.S. Art. 1105c,
744-16 Secs. 3 (part), 6 (part), 7 (part).)
744-17 Sec. 317.103. ELECTION. (a) Tax bonds, other than
744-18 refunding bonds, may be issued only if authorized by a majority of
744-19 the qualified voters voting at an election held under Chapter 1251,
744-20 Government Code.
744-21 (b) The governing body of a municipality may:
744-22 (1) submit a proposition for the issuance of revenue
744-23 bonds at an election held in the manner provided by Subsection (a)
744-24 for tax bonds; or
744-25 (2) issue revenue bonds without an election.
744-26 (V.A.C.S. Art. 1105c, Secs. 3 (part), 4 (part), 11(a) (part), (b)
744-27 (part).)
745-1 Sec. 317.104. MATURITY. A bond issued under this chapter
745-2 must mature not later than 40 years after its date. (V.A.C.S.
745-3 Art. 1105c, Sec. 7 (part).)
745-4 Sec. 317.105. SIGNATURES. A bond issued under this chapter
745-5 must be signed by the mayor or presiding officer of the
745-6 municipality and countersigned by the municipal secretary or clerk.
745-7 (V.A.C.S. Art. 1105c, Sec. 7 (part).)
745-8 Sec. 317.106. SALE OF BONDS. A municipality may sell bonds
745-9 issued under this chapter at a public or private sale under terms
745-10 determined by the governing body to be the most advantageous and
745-11 reasonably obtainable. (V.A.C.S. Art. 1105c, Sec. 7 (part).)
745-12 Sec. 317.107. CONTENTS OF ORDINANCE AUTHORIZING ISSUANCE OF
745-13 REVENUE BONDS. (a) The ordinance of the governing body of the
745-14 municipality authorizing the issuance of revenue bonds and the
745-15 related proceedings may:
745-16 (1) provide for the flow of funds and the
745-17 establishment and maintenance of an interest and sinking fund,
745-18 reserve fund, or other fund;
745-19 (2) specify a depository for the money; and
745-20 (3) contain any additional covenant, as considered
745-21 appropriate, with respect to the bonds, the pledged revenue, and
745-22 the operation and maintenance of each facility the net revenue of
745-23 which is pledged, including provisions for:
745-24 (A) the lease of a facility; and
745-25 (B) the use or pledge of money derived from that
745-26 lease.
745-27 (b) The ordinance or related proceeding may:
746-1 (1) prohibit the further issuance of bonds or other
746-2 obligations payable from pledged revenue; or
746-3 (2) reserve the right to issue additional bonds to be
746-4 secured by a pledge of and payable from the net revenue on a parity
746-5 with, or subordinate to, the lien and pledge in support of the
746-6 bonds being issued, subject to any condition provided by the
746-7 ordinance or related proceeding.
746-8 (c) The ordinance or related proceeding may contain any
746-9 other provision or covenant determined by the governing body.
746-10 (V.A.C.S. Art. 1105c, Sec. 5 (part).)
746-11 Sec. 317.108. ADOPTION AND EXECUTION OF DOCUMENTS. The
746-12 governing body of a municipality may adopt and have executed any
746-13 other proceeding or instrument necessary or convenient in the
746-14 issuance of revenue bonds. (V.A.C.S. Art. 1105c, Sec. 5 (part).)
746-15 Sec. 317.109. REVIEW AND APPROVAL OF CONTRACTS RELATING TO
746-16 REVENUE BONDS. (a) If revenue bonds issued under this chapter
746-17 state that they are secured in whole or in part by a pledge of the
746-18 proceeds from a contract between the municipality and another
746-19 person, a copy of the contract and of the proceedings authorizing
746-20 the contract must be submitted to the attorney general with the
746-21 bond record.
746-22 (b) The approval by the attorney general of the bonds is
746-23 approval of the contract.
746-24 (c) After approval, the contract is incontestable except for
746-25 forgery or fraud. (V.A.C.S. Art. 1105c, Sec. 7 (part).)
746-26 Sec. 317.110. SECURITY FOR AND PAYMENT OF BONDS PAYABLE FROM
746-27 REVENUE. (a) Revenue bonds may be secured by a pledge of and paid
747-1 from:
747-2 (1) the net revenue derived from the operation or use
747-3 of all or a designated part of a facility then in existence or to
747-4 be improved, constructed, or acquired;
747-5 (2) the revenue, proceeds, or payments that will
747-6 accrue to or be received by the municipality under a lease-purchase
747-7 contract or contract of sale relating to a facility; or
747-8 (3) a combination of those sources.
747-9 (b) While the principal of or interest on bonds is
747-10 outstanding, the municipality shall:
747-11 (1) impose and collect charges in an amount sufficient
747-12 to pay:
747-13 (A) maintenance and operation expenses of the
747-14 facility the net revenue of which is pledged;
747-15 (B) the interest on the bonds as it accrues; and
747-16 (C) the principal of the bonds as the bonds
747-17 mature; and
747-18 (2) make any other payment prescribed by the ordinance
747-19 or other proceeding authorizing or relating to the issuance of the
747-20 bonds. (V.A.C.S. Art. 1105c, Secs. 4 (part), 6 (part).)
747-21 Sec. 317.111. USE OF CERTAIN PROCEEDS. From the proceeds of
747-22 bonds issued under this chapter, the governing body of a
747-23 municipality may appropriate or set aside:
747-24 (1) an amount for the payment of interest expected to
747-25 accrue while a facility is under construction;
747-26 (2) an amount necessary to pay all expenses incurred
747-27 and to be incurred in the issuance, sale, and delivery of the
748-1 bonds; and
748-2 (3) in the case of revenue bonds, an amount required
748-3 by the ordinance authorizing the issuance of the bonds to be
748-4 deposited to the credit of a reserve fund or other fund specified
748-5 by the ordinance. (V.A.C.S. Art. 1105c, Sec. 8.)
748-6 Sec. 317.112. ENCUMBRANCE AS ADDITIONAL SECURITY. (a) As
748-7 additional security for the payment of revenue bonds issued under
748-8 this chapter, the governing body of a municipality may have
748-9 executed in favor of the bondholders an indenture or deed of trust
748-10 that encumbers all or part of a facility the net revenue of which
748-11 is pledged to the payment of the bonds, including the land on which
748-12 the facility is located.
748-13 (b) An indenture or deed of trust entered into under this
748-14 section:
748-15 (1) may contain terms considered proper by the
748-16 governing body;
748-17 (2) may provide for a grant, to any purchaser at a
748-18 foreclosure sale, of a franchise to operate the facility for a term
748-19 not to exceed 40 years from the date of the purchase, subject to
748-20 all laws regulating same then in force; and
748-21 (3) is enforceable in the manner provided under the
748-22 laws of this state for the enforcement of other encumbrances.
748-23 (c) Under a sale ordered under the provisions of an
748-24 encumbrance entered into under this section, the purchaser and the
748-25 purchaser's successors or assigns are vested with:
748-26 (1) a permit or franchise to maintain the facility
748-27 that conforms to the provisions stipulated in the indenture or deed
749-1 of trust;
749-2 (2) powers and privileges similar to those of the
749-3 municipality in the operation of the facility; and
749-4 (3) the right to remove all or part of the facility
749-5 for diversion to other purposes.
749-6 (d) The laws of this state other than this chapter do not
749-7 apply to the authorization or execution of an encumbrance entered
749-8 into under this chapter or to the granting of a franchise under
749-9 this chapter. (V.A.C.S. Art. 1105c, Sec. 9.)
749-10 (Sections 317.113-317.150 reserved for expansion
749-11 SUBCHAPTER D. REFUNDING BONDS
749-12 Sec. 317.151. APPLICABILITY OF LAW RELATING TO ORIGINAL
749-13 BONDS. The provisions of this chapter relating to original bonds
749-14 apply to refunding bonds issued under this chapter to the extent
749-15 the provisions can be made to apply. (V.A.C.S. Art. 1105c, Sec.
749-16 11(e).)
749-17 Sec. 317.152. AUTHORITY TO ISSUE TAX REFUNDING BONDS. (a)
749-18 The governing body of a municipality by ordinance may issue tax
749-19 bonds under this chapter to refund outstanding original or
749-20 refunding bonds issued by the municipality under this chapter and
749-21 the accrued interest on those bonds.
749-22 (b) Refunding bonds issued under this section may be issued
749-23 to refund tax bonds of more than one series or issue. (V.A.C.S.
749-24 Art. 1105c, Secs. 11(a) (part), (c) (part).)
749-25 Sec. 317.153. AUTHORITY TO ISSUE REVENUE REFUNDING BONDS.
749-26 The governing body of a municipality by ordinance may issue revenue
749-27 bonds under this chapter to refund outstanding original or
750-1 refunding revenue bonds issued by the municipality under this
750-2 chapter and the accrued interest on those bonds. (V.A.C.S.
750-3 Art. 1105c, Secs. 11(b) (part), (c) (part).)
750-4 Sec. 317.154. TERMS OF ISSUANCE OF REVENUE REFUNDING BONDS.
750-5 (a) Revenue refunding bonds may:
750-6 (1) be combined with new or original revenue bonds
750-7 into one series or issue;
750-8 (2) be issued to refund bonds of more than one series
750-9 or issue;
750-10 (3) combine the pledges securing the bonds to be
750-11 refunded to secure the revenue refunding bonds; or
750-12 (4) be secured by a pledge of other or additional net
750-13 revenue.
750-14 (b) Revenue refunding bonds may bear interest at a rate
750-15 higher than that of the bonds to be refunded. (V.A.C.S. Art. 1105c,
750-16 Sec. 11(b) (part).)
750-17 Sec. 317.155. REGISTRATION OF REFUNDING BONDS BY
750-18 COMPTROLLER. (a) Except as provided by Subsection (b), the
750-19 comptroller shall register refunding bonds on surrender and
750-20 cancellation of the bonds to be refunded.
750-21 (b) The comptroller shall register refunding bonds without
750-22 the surrender and cancellation of the bonds to be refunded if the
750-23 ordinance authorizing the issuance of the refunding bonds requires
750-24 that the bonds be sold and the proceeds from the sale be deposited
750-25 where the bonds to be refunded are payable.
750-26 (c) Refunding bonds to which Subsection (b) applies may be
750-27 issued in an amount sufficient to pay the principal of and interest
751-1 on the bonds to be refunded to the option or maturity date of the
751-2 bonds. (V.A.C.S. Art. 1105c, Sec. 11(c) (part).)
751-3 Sec. 317.156. ESCROW AGREEMENT. (a) The proceeds from
751-4 revenue refunding bonds that are deposited as provided by Section
751-5 317.155(b) shall be held under an escrow agreement so that the
751-6 proceeds will be available to pay the principal of and interest on
751-7 the bonds to be refunded as each becomes due.
751-8 (b) The escrow agreement may provide that the proceeds may,
751-9 until needed to pay principal and interest, be invested in direct
751-10 obligations of the United States.
751-11 (c) Interest earned on an investment described by Subsection
751-12 (b) shall be considered revenue of the facility. (V.A.C.S.
751-13 Art. 1105c, Sec. 11(c) (part).)
751-14 SECTION 25. Subtitle G, Title 6, Transportation Code, is
751-15 amended by adding Chapter 367 to read as follows:
751-16 CHAPTER 367. MUNICIPAL TOLL BRIDGES OVER RIO GRANDE
751-17 SUBCHAPTER A. GENERAL AUTHORITY RELATING TO TOLL BRIDGES
751-18 Sec. 367.001. APPLICABILITY OF SUBCHAPTER. This subchapter
751-19 applies only to a municipality any part of the municipal boundaries
751-20 of which is within 15 miles of a section of the Rio Grande that
751-21 forms the border between this state and the United Mexican States.
751-22 (V.A.C.S. Art. 1015g-5, Sec. 1.)
751-23 Sec. 367.002. DEFINITION. In this subchapter, "toll bridge"
751-24 includes:
751-25 (1) any part of the physical property comprising a
751-26 toll bridge;
751-27 (2) a permit, grant, franchise, right, or privilege
752-1 granted or extended by the United States, the United Mexican
752-2 States, or a state or political subdivision of either nation, for
752-3 or related to the construction, maintenance, or operation of a toll
752-4 bridge, or to the collection of a toll or charge for use of the
752-5 toll bridge;
752-6 (3) an interest in real property in either the United
752-7 States or the United Mexican States that is held or used for or
752-8 incident to the construction, maintenance, or operation of the toll
752-9 bridge or an approach to the toll bridge or for the use or
752-10 occupancy of any building or other structure, appurtenance,
752-11 appliance, road or street, railroad, park, grounds, or convenience
752-12 or facility of any kind relating to or incident to the toll bridge;
752-13 (4) a building or other structure, appurtenance,
752-14 appliance, equipment, convenience, or facility of any kind held or
752-15 used for or incident to the construction, maintenance, or operation
752-16 of the toll bridge;
752-17 (5) a lease or contract of any kind for the use or
752-18 occupancy of that real property, building or other structure,
752-19 convenience, appliance, or facility; and
752-20 (6) any other right or property used for or incident
752-21 to the construction, maintenance, or operation of the toll bridge.
752-22 (V.A.C.S. Art. 1015g-5, Sec. 2(b).)
752-23 Sec. 367.003. AUTHORITY OF MUNICIPALITY IN RELATION TO TOLL
752-24 BRIDGE. For any public purpose, a municipality may acquire,
752-25 construct, improve, enlarge, equip, operate, or maintain a toll
752-26 bridge over a section of the Rio Grande that forms the border
752-27 between this state and the United Mexican States. (V.A.C.S.
753-1 Art. 1015g-5, Sec. 2(a).)
753-2 Sec. 367.004. AUTHORITY OF MUNICIPALITY TO ENTER INTO
753-3 CONTRACTS. For the purpose of taking an action authorized by this
753-4 subchapter, a municipality may enter into and perform a contract,
753-5 agreement, or undertaking required by the United States, the United
753-6 Mexican States, or a department, officer, governmental agency, or
753-7 public authority of either nation. (V.A.C.S. Art. 1015g-5, Sec.
753-8 2(c).)
753-9 Sec. 367.005. AUTHORITY TO ISSUE REVENUE BONDS. To provide
753-10 money to acquire, construct, improve, enlarge, or equip a toll
753-11 bridge, a part of a toll bridge, or a related building, structure,
753-12 or other facility for a public purpose, the governing body of a
753-13 municipality may issue revenue bonds that are payable from and
753-14 secured by a lien on and pledge of all or any part of the revenue,
753-15 income, or receipts the municipality receives from its ownership
753-16 and operation of:
753-17 (1) a portion of a toll bridge over the Rio Grande;
753-18 and
753-19 (2) any other property, building, structure, activity,
753-20 or facility. (V.A.C.S. Art. 1015g-5, Sec. 3(a).)
753-21 Sec. 367.006. INTERIM FINANCING. (a) Pending the issuance
753-22 of revenue bonds under this subchapter, a municipality may:
753-23 (1) spend, in connection with a toll bridge, money
753-24 that is not required by law to be used for another purpose; or
753-25 (2) issue notes for an expenditure described by
753-26 Subdivision (1).
753-27 (b) A municipality may use proceeds of revenue bonds issued
754-1 under this subchapter to repay money spent under Subsection (a).
754-2 (c) Notes issued under Subsection (a) may have any
754-3 characteristic the governing body considers appropriate and:
754-4 (1) bear rates of interest, be payable from available
754-5 sources, and be secured in the same manner as revenue bonds issued
754-6 under this subchapter; or
754-7 (2) be payable from:
754-8 (A) the proceeds of refunding bonds issued under
754-9 this subchapter; or
754-10 (B) both revenue bonds and refunding bonds.
754-11 (V.A.C.S. Art. 1015g-5, Sec. 3(b).)
754-12 Sec. 367.007. MATURITY. A bond issued under this subchapter
754-13 must mature not later than 50 years after its date of issuance.
754-14 (V.A.C.S. Art. 1015g-5, Sec. 4(a) (part).)
754-15 Sec. 367.008. PLEDGE OF REVENUE. A municipality may pledge
754-16 to the payment of bonds issued under this subchapter, including the
754-17 principal of, interest on, and any other amount required or
754-18 permitted to be paid in connection with the bonds, all or any part
754-19 of its revenue, income, or receipts from:
754-20 (1) a toll or charge authorized by Section 367.011; or
754-21 (2) another resource. (V.A.C.S. Art. 1015g-5, Sec.
754-22 6(a) (part).)
754-23 Sec. 367.009. ADDITIONAL SECURITY. (a) Bonds issued under
754-24 this subchapter may be additionally secured by:
754-25 (1) a mortgage or deed of trust on any real property
754-26 owned by the municipality; or
754-27 (2) a chattel mortgage or lien on any personal
755-1 property appurtenant to that real property.
755-2 (b) The governing body of the municipality may authorize the
755-3 execution of a trust indenture, mortgage, deed of trust, or other
755-4 form of encumbrance as evidence of the debt.
755-5 (c) The municipality may pledge to the payment of the bonds
755-6 all or part of any grant, donation, revenue, or income received or
755-7 to be received from the United States or any other public or
755-8 private source whether under an agreement or otherwise. (V.A.C.S.
755-9 Art. 1015g-5, Secs. 6(b), (c).)
755-10 Sec. 367.010. ADDITIONAL BONDS. An ordinance authorizing
755-11 the issuance of bonds under this subchapter may provide for the
755-12 subsequent issuance of additional parity or subordinate lien bonds
755-13 under terms specified in the ordinance. (V.A.C.S. Art. 1015g-5,
755-14 Sec. 4(a) (part).)
755-15 Sec. 367.011. TOLLS AND CHARGES. (a) The governing body of
755-16 a municipality may impose and collect tolls and other charges for
755-17 the use or availability of a toll bridge of the municipality.
755-18 (b) The governing body of the municipality shall impose and
755-19 collect pledged tolls and charges in an amount that will be at
755-20 least sufficient, with any other pledged resource, to provide for
755-21 the payment of:
755-22 (1) principal of and interest on and any other amount
755-23 required to be paid in connection with the bonds; and
755-24 (2) to the extent required by the ordinance
755-25 authorizing issuance of the bonds:
755-26 (A) expenses incurred in connection with the
755-27 bonds; and
756-1 (B) operation, maintenance, and other expenses
756-2 in connection with the toll bridge. (V.A.C.S. Art. 1015g-5, Secs.
756-3 5, 6(a) (part).)
756-4 Sec. 367.012. PUBLIC PURPOSE. The acquisition,
756-5 construction, improvement, enlargement, or equipment by a
756-6 municipality of property or a building, structure, or other
756-7 facility for lease to the United States for use in performing a
756-8 federal governmental function in the municipality or at or near and
756-9 relating to a toll bridge of the municipality is a public purpose
756-10 and a proper municipal function, regardless of whether the toll
756-11 bridge or the federal facility relating to the toll bridge is
756-12 located inside or outside the municipality. (V.A.C.S.
756-13 Art. 1015g-5, Sec. 7 (part).)
756-14 Sec. 367.013. LEASE OR RENTAL OF FACILITY TO UNITED STATES.
756-15 A municipality may lease or rent to the United States property or a
756-16 building, structure, or other facility acquired, constructed,
756-17 improved, enlarged, or equipped in whole or in part with proceeds
756-18 from the sale of bonds issued under this subchapter. (V.A.C.S.
756-19 Art. 1015g-5, Sec. 7 (part).)
756-20 Sec. 367.014. REFUNDING BONDS AND NOTES. (a) A
756-21 municipality may refund or otherwise refinance bonds or notes
756-22 issued under this subchapter by issuing refunding bonds under any
756-23 terms provided by ordinance of the governing body of the
756-24 municipality.
756-25 (b) All appropriate provisions of this subchapter apply to
756-26 the refunding bonds. The refunding bonds shall be issued in the
756-27 manner provided by this subchapter for other bonds.
757-1 (c) The refunding bonds may be sold and delivered in amounts
757-2 sufficient to pay the principal of and interest and any redemption
757-3 premium on the bonds or notes to be refunded, at maturity or on any
757-4 redemption date.
757-5 (d) The refunding bonds may be issued to be exchanged for
757-6 the bonds or notes to be refunded. In that case, the comptroller
757-7 shall register the refunding bonds and deliver them to the holder
757-8 of the bonds or notes to be refunded as provided by the ordinance
757-9 authorizing the refunding bonds. The exchange may be made in one
757-10 delivery or in installment deliveries. (V.A.C.S. Art. 1015g-5,
757-11 Secs. 9(a), (b).)
757-12 Sec. 367.015. SALE OF BONDS OR NOTES. A municipality may
757-13 sell bonds or notes issued under this subchapter in the manner and
757-14 on the terms provided by the ordinance authorizing the issuance of
757-15 the bonds or notes. (V.A.C.S. Art. 1015g-5, Sec. 4(b) (part).)
757-16 Sec. 367.016. BONDS AND NOTES NOT PAYABLE FROM TAXES. A
757-17 bond or note issued under this subchapter:
757-18 (1) is payable only from the revenue or another
757-19 resource of the municipality; and
757-20 (2) is not a tax obligation of the municipality.
757-21 (V.A.C.S. Art. 1015g-5, Sec. 8.)
757-22 Sec. 367.017. CONFLICT WITH OTHER LAW. When bonds or notes
757-23 are being issued under this subchapter, to the extent of any
757-24 conflict between this subchapter and another law, this subchapter
757-25 controls. (V.A.C.S. Art. 1015g-5, Sec. 12 (part).)
757-26 (Sections 367.018-367.050 reserved for expansion
757-27 SUBCHAPTER B. ACQUIRING EXISTING BRIDGE; BUILDING
758-1 REPLACEMENT OR ADDITIONAL BRIDGE
758-2 Sec. 367.051. AUTHORITY TO ACQUIRE TOLL BRIDGE. (a) A
758-3 municipality may acquire a toll bridge that is located over a
758-4 section of the Rio Grande that forms the border between this state
758-5 and the United Mexican States and that is inside or within 15 miles
758-6 of its municipal boundaries by purchasing:
758-7 (1) the entire toll bridge; or
758-8 (2) that part of the toll bridge that is located in
758-9 this state.
758-10 (b) The municipality is not required to:
758-11 (1) give or publish notice of its intent to acquire a
758-12 toll bridge under this subchapter; or
758-13 (2) advertise or call for competitive bids in
758-14 connection with the acquisition of a toll bridge under this
758-15 subchapter.
758-16 (c) The municipality may acquire a toll bridge owned by a
758-17 private corporation by purchasing the toll bridge itself or by
758-18 purchasing all of the capital stock of the corporation or a
758-19 sufficient amount of the stock as required by law to dissolve and
758-20 liquidate the corporation. The municipality may take title to the
758-21 stock in the name of the municipality or in the name of a trustee
758-22 for the municipality. After purchasing the stock, the municipality
758-23 or its trustee shall:
758-24 (1) vote its shares in the corporation as necessary to
758-25 vest title to the toll bridge, together with any associated right
758-26 or property described by Section 367.052 to be acquired in
758-27 connection with the acquisition of the toll bridge, in the
759-1 municipality; and
759-2 (2) immediately dissolve and liquidate the
759-3 corporation, pay its debts, liabilities, and obligations, wind up
759-4 its business and affairs, and convey the properties to the
759-5 municipality.
759-6 (d) The purchase and acquisition of toll bridge property or
759-7 stock in a corporation under this section must be made at the price
759-8 and on the terms agreed on by the owners of the property or stock
759-9 and the governing body of the municipality. (V.A.C.S. Art. 1015g,
759-10 Secs. 1 (part), 4 (part), 13 (part).)
759-11 Sec. 367.052. RIGHTS AND PROPERTIES ASSOCIATED WITH TOLL
759-12 BRIDGE. When a municipality acquires a toll bridge under Section
759-13 367.051, the municipality may, as determined by the governing body
759-14 of the municipality, acquire any or all of the following items in
759-15 connection with the toll bridge:
759-16 (1) a permit, grant, franchise, right, or privilege
759-17 granted or extended by the United States, the United Mexican
759-18 States, or a department, officer, agency, governmental authority,
759-19 state, municipality, or political subdivision of either nation, for
759-20 or related to the construction, maintenance, or operation of the
759-21 toll bridge or the collection of a toll or charge for the use of
759-22 the toll bridge;
759-23 (2) an interest in real property in either the United
759-24 States or the United Mexican States that is held or used for or
759-25 incident to the construction, maintenance, or operation of the toll
759-26 bridge or an approach to it, or for the use or occupancy of any
759-27 building or other structure, appurtenance, appliance, road or
760-1 street, park, grounds, or convenience or facility of any kind
760-2 relating to or incident to the construction, maintenance, or
760-3 operation of the toll bridge;
760-4 (3) a building or other structure, appurtenance,
760-5 appliance, equipment, convenience, or facility of any kind held or
760-6 used for or incident to the construction, maintenance, or operation
760-7 of the toll bridge;
760-8 (4) a lease or contract of any kind for the use or
760-9 occupancy of that real property or a building or other structure,
760-10 convenience, appliance, or facility; or
760-11 (5) any other right or property used for or incident
760-12 to the construction, maintenance, or operation of the toll bridge.
760-13 (V.A.C.S. Art. 1015g, Secs. 1 (part), 4 (part).)
760-14 Sec. 367.053. LIBERAL CONSTRUCTION. This subchapter shall
760-15 be liberally construed to effect its purposes. (V.A.C.S.
760-16 Art. 1015g, Sec. 18.)
760-17 Sec. 367.054. POWERS TO BE EXERCISED BY ORDINANCE; ELECTION
760-18 NOT REQUIRED. (a) The governing body of a municipality may
760-19 exercise a power, right, privilege, or function conferred by this
760-20 subchapter on the municipality only by adopting an ordinance to
760-21 authorize the action.
760-22 (b) A referendum or election by the voters of the
760-23 municipality is not necessary to authorize:
760-24 (1) the adoption of an ordinance under Subsection (a);
760-25 or
760-26 (2) the taking of an action to accomplish a purpose of
760-27 this subchapter. (V.A.C.S. Art. 1015g, Secs. 1 (part), 3 (part), 8
761-1 (part), 13 (part), 15.)
761-2 Sec. 367.055. GENERAL POWERS OF MUNICIPALITY ACQUIRING TOLL
761-3 BRIDGE. (a) A municipality that acquires a toll bridge under this
761-4 subchapter may:
761-5 (1) maintain, operate, own, hold, control, repair,
761-6 improve, extend, or replace the toll bridge;
761-7 (2) renew or extend an existing franchise and obtain a
761-8 new or additional franchise for the bridge; and
761-9 (3) take any action required for maintaining or
761-10 operating the bridge, conducting the bridge's business, or
761-11 providing services to the public and to the users of the bridge.
761-12 (b) To accomplish the purposes of this section the
761-13 municipality may enter into and perform a contract, agreement, or
761-14 undertaking of any kind required by the United States or the United
761-15 Mexican States or a department, officer, governmental agency, or
761-16 public authority of either nation. (V.A.C.S. Art. 1015g, Sec. 2.)
761-17 Sec. 367.056. RECREATIONAL FACILITIES. (a) In connection
761-18 with the maintenance and operation of the toll bridge, a
761-19 municipality may acquire real property that is either inside or
761-20 outside the municipal boundaries and that is adjacent to the toll
761-21 bridge or the municipality to construct, maintain, or operate a
761-22 park, recreational grounds or facilities, a camp, quarters,
761-23 accommodations, or other facility for the use and convenience of
761-24 the public.
761-25 (b) The municipality may manage, police, and regulate those
761-26 facilities and may adopt and enforce reasonable rules for those
761-27 facilities without regard to whether the toll bridge is located
762-1 inside or outside the municipality.
762-2 (c) The governing body of the municipality may impose and
762-3 collect a fee, rental, or other charge for the use of a facility
762-4 established under this section. The charge must be just,
762-5 reasonable, and nondiscriminatory. (V.A.C.S. Art. 1015g, Sec. 5.)
762-6 Sec. 367.057. TOLLS AND CHARGES. (a) A municipality that
762-7 acquires a toll bridge under this subchapter or that owns or
762-8 controls an international toll bridge may impose tolls and other
762-9 charges for the use of the bridge and for the transportation of
762-10 persons or property, including passengers, vehicles, or freight and
762-11 commodities, over the bridge.
762-12 (b) In accordance with any applicable permit or franchise
762-13 granted by a governmental authority, the tolls and other charges
762-14 must be just, reasonable, nondiscriminatory, and sufficient to
762-15 provide revenue in an amount that is sufficient to:
762-16 (1) pay all expenses necessary to maintain and operate
762-17 the toll bridge;
762-18 (2) make necessary payments and comply with any
762-19 applicable permit or franchise;
762-20 (3) pay when due the principal of and interest on all
762-21 bonds or warrants issued under this subchapter;
762-22 (4) pay when due all sinking fund or reserve fund
762-23 payments agreed to be made in connection with bonds or warrants
762-24 issued under this subchapter and payable from that revenue;
762-25 (5) comply with any agreement made with the holders of
762-26 bonds or warrants issued under this subchapter or with any person
762-27 on behalf of those holders; and
763-1 (6) recover a reasonable rate of return on invested
763-2 capital.
763-3 (c) The governing body of the municipality may use revenue
763-4 received under this section in excess of the amount required by
763-5 Subsection (b) to:
763-6 (1) establish a reasonable depreciation and emergency
763-7 fund;
763-8 (2) retire by purchase and cancellation or by
763-9 redemption any outstanding bonds or warrants issued under this
763-10 subchapter;
763-11 (3) provide necessary budgetary support to local
763-12 government for public purposes and the general welfare; or
763-13 (4) accomplish the purposes of this subchapter.
763-14 (d) This subchapter does not deprive this state, the United
763-15 States, or an agency with jurisdiction of its power:
763-16 (1) to regulate or control tolls and other charges to
763-17 be collected for a purpose listed in Subsection (b) or (c); or
763-18 (2) to provide for bridges over the river that will be
763-19 used free of any tolls or charges.
763-20 (e) Until bonds or warrants issued under this subchapter
763-21 have been paid and discharged, including all interest on the bonds
763-22 or warrants, interest on unpaid interest installments on the bonds
763-23 or warrants, other costs or expenses incurred in connection with
763-24 any acts or proceedings taken by or on behalf of the holders of the
763-25 bonds or warrants, and all other obligations of the municipality
763-26 incurred in connection with the bonds or warrants:
763-27 (1) the municipality may not provide free use of the
764-1 toll bridge to any person; and
764-2 (2) this state pledges to and agrees with the
764-3 purchasers and successive holders of the bonds or warrants that it
764-4 will not:
764-5 (A) limit or alter the power of a municipality
764-6 to impose tolls and other charges under this section sufficient to
764-7 pay the items listed in Subsection (b) or (c); or
764-8 (B) take any action that will impair the rights
764-9 or remedies of the holders of the bonds or warrants or of persons
764-10 acting on their behalf. (V.A.C.S. Art. 1015g, Sec. 3 (part).)
764-11 Sec. 367.058. AUTHORITY TO BORROW MONEY OR ACCEPT FEDERAL
764-12 ASSISTANCE. (a) To accomplish the purposes of this subchapter, a
764-13 municipality may:
764-14 (1) borrow money from any person or corporation; or
764-15 (2) borrow money or accept grants from the United
764-16 States or a corporation or agency created by or authorized to act
764-17 as an agency of the United States.
764-18 (b) In connection with a loan or grant under Subsection
764-19 (a)(2), a municipality may enter into any related agreement that
764-20 the United States, corporation, or agency requires. (V.A.C.S.
764-21 Art. 1015g, Sec. 6.)
764-22 Sec. 367.059. AUTHORITY TO ISSUE REVENUE BONDS. (a) The
764-23 governing body of a municipality may issue, sell, and deliver
764-24 revenue bonds to accomplish the purposes of this subchapter. The
764-25 municipality may use the bonds or the proceeds of the sale of the
764-26 bonds to acquire all or part of a toll bridge under this subchapter
764-27 or may exchange the bonds for property to accomplish the purposes
765-1 of this subchapter.
765-2 (b) The governing body may issue the bonds and use a bond or
765-3 bond proceeds as provided by this subchapter without:
765-4 (1) giving or publishing notice of the municipality's
765-5 intent to take that action; or
765-6 (2) advertising or calling for competitive bids in
765-7 connection with that action. (V.A.C.S. Art. 1015g, Secs. 7, 13
765-8 (part), 13(c) (part).)
765-9 Sec. 367.060. BONDS AND WARRANTS NOT PAYABLE FROM TAXES.
765-10 (a) Bonds and warrants issued under this subchapter are not a debt
765-11 of the municipality that issues them and are a charge only against:
765-12 (1) the pledged revenues of the toll bridge; and
765-13 (2) the property comprising the toll bridge, if a lien
765-14 is given on that property.
765-15 (b) A bond or warrant issued under this subchapter must
765-16 include substantially the following provision: "The holder of this
765-17 obligation is not entitled to demand payment of this obligation out
765-18 of any money raised by taxation." (V.A.C.S. Art. 1015g, Sec.
765-19 13(c) (part).)
765-20 Sec. 367.061. MORTGAGE OR PLEDGE OF REVENUE TO SECURE BONDS.
765-21 To accomplish any purpose of this subchapter, the governing body of
765-22 a municipality may with respect to bonds issued under this
765-23 subchapter:
765-24 (1) mortgage or pledge all or part of:
765-25 (A) any interest in a toll bridge of the
765-26 municipality, together with any associated right or property
765-27 described by Section 367.052, or any other property acquired or to
766-1 be acquired with the bonds or the proceeds of the sale of the
766-2 bonds; or
766-3 (B) the net or gross revenue of any property
766-4 described by Paragraph (A);
766-5 (2) secure the payment of the principal of and
766-6 interest on the bonds and of the sinking fund and reserve fund
766-7 agreed to be established in connection with the bonds; and
766-8 (3) enter into any covenant or agreement with the
766-9 purchasers of the bonds or any person on behalf of those purchasers
766-10 with respect to the bonds to:
766-11 (A) secure the payments described by Subdivision
766-12 (2); and
766-13 (B) provide rights and remedies to the
766-14 purchasers or holders of the bonds or any person on their behalf.
766-15 (V.A.C.S. Art. 1015g, Sec. 8 (part).)
766-16 Sec. 367.062. MATURITY. The governing body of a
766-17 municipality shall determine the maturity of bonds issued under
766-18 this subchapter. (V.A.C.S. Art. 1015g, Sec. 9 (part).)
766-19 Sec. 367.063. SALE OR EXCHANGE OF BONDS. A bond issued
766-20 under this subchapter may be:
766-21 (1) sold for cash at a public or private sale;
766-22 (2) issued in exchange for property of any kind or an
766-23 interest in property of any kind, as the governing body of the
766-24 municipality determines is necessary and proper to accomplish a
766-25 purpose of this subchapter; or
766-26 (3) issued in exchange for a matured or unmatured bond
766-27 of the same issue and in the same principal amount. (V.A.C.S.
767-1 Art. 1015g, Sec. 10 (part).)
767-2 Sec. 367.064. DEPOSIT OF PROCEEDS. The proceeds of the sale
767-3 of bonds sold for cash shall be deposited and paid out under the
767-4 terms that are agreed to by the governing body of the municipality
767-5 and the purchasers of the bonds. (V.A.C.S. Art. 1015g, Sec. 11.)
767-6 Sec. 367.065. AUTHORITY TO ISSUE BONDS OR WARRANTS TO
767-7 REPAIR, IMPROVE, OR BUILD TOLL BRIDGE. (a) A municipality that
767-8 has acquired a toll bridge under this subchapter may issue and
767-9 deliver revenue bonds or revenue time warrants:
767-10 (1) to repair, improve, alter, reconstruct, or replace
767-11 the bridge;
767-12 (2) to build an additional bridge; or
767-13 (3) for one or more of those purposes.
767-14 (b) The municipality shall issue the bonds or warrants:
767-15 (1) in the manner prescribed by this subchapter; and
767-16 (2) subject to any restriction in an ordinance
767-17 authorizing or a deed of indenture securing the original or a
767-18 subsequent issue of toll bridge bonds or warrants. (V.A.C.S.
767-19 Art. 1015g, Secs. 13(b), 13(c) (part).)
767-20 Sec. 367.066. TAX EXEMPTIONS. Bonds issued under this
767-21 subchapter are exempt from taxation by this state or a municipality
767-22 or other political subdivision of this state. (V.A.C.S. Art. 1015g,
767-23 Sec. 12 (part).)
767-24 Sec. 367.067. LIMITATIONS ON MUNICIPAL AUTHORITY. This
767-25 subchapter does not authorize a municipality to:
767-26 (1) impose or collect a tax or assessment or pledge
767-27 the credit of this state; or
768-1 (2) issue, sell, or deliver a bond, create an
768-2 obligation, incur a liability, or enter an agreement to be paid,
768-3 performed, met, or discharged using any tax or assessment.
768-4 (V.A.C.S. Art. 1015g, Sec. 14.)
768-5 Sec. 367.068. APPLICABILITY OF AND CONFLICTS WITH OTHER LAW.
768-6 (a) Sections 252.046, 252.047, and 252.048, Local Government Code,
768-7 Chapter 1253, Government Code, and Subchapter B, Chapter 1502,
768-8 Government Code, apply, except as provided by Section 367.051,
768-9 Section 367.059, or another provision of this subchapter, to:
768-10 (1) the purchase of a toll bridge under this
768-11 subchapter;
768-12 (2) the issuance, sale, or delivery of bonds under
768-13 this subchapter;
768-14 (3) the manner of securing payment of the bonds;
768-15 (4) the enforcement of the obligations relating to the
768-16 bonds;
768-17 (5) the rights and remedies of the owners or holders
768-18 of the bonds or of any person acting on their behalf;
768-19 (6) the maintenance or operation of property acquired
768-20 under this subchapter; and
768-21 (7) the accomplishment of any other purpose of this
768-22 subchapter.
768-23 (b) To the extent of a conflict between this subchapter and
768-24 another law, this subchapter controls. (V.A.C.S. Art. 1015g, Sec.
768-25 13 (part).)
768-26 (Sections 367.069-367.100 reserved for expansion
768-27 SUBCHAPTER C. BONDS FOR REPAIR OR IMPROVEMENT OF TOLL BRIDGE
769-1 Sec. 367.101. APPLICABILITY OF SUBCHAPTER. This subchapter
769-2 applies only to a municipality that owns that portion of an
769-3 international toll bridge over the Rio Grande that is located in
769-4 the United States. (V.A.C.S. Art. 717h, Sec. 1 (part).)
769-5 Sec. 367.102. AUTHORITY TO ISSUE REVENUE BONDS. The
769-6 municipality may, in compliance with Subtitles A, C, D, and E,
769-7 Title 9, Government Code, issue bonds payable from the net revenue
769-8 derived from the operation of the bridge to:
769-9 (1) repair or improve the bridge;
769-10 (2) acquire an approach to the bridge; or
769-11 (3) construct a building to be used in connection with
769-12 the bridge. (V.A.C.S. Art. 717h, Sec. 1 (part).)
769-13 Sec. 367.103. ADDITIONAL BONDS. (a) The municipality may
769-14 issue additional revenue bonds to the extent permitted or
769-15 authorized by the provisions of or the proceedings relating to
769-16 outstanding bonds that are payable from the net revenue from the
769-17 operation of the bridge, including any trust indenture securing the
769-18 outstanding bonds.
769-19 (b) As permitted or authorized by those provisions and
769-20 proceedings, the additional bonds may be secured by a pledge of and
769-21 lien on the net revenue that are:
769-22 (1) junior to the pledge and lien securing the
769-23 outstanding bonds; or
769-24 (2) on a parity with the outstanding bonds. (V.A.C.S.
769-25 Art. 717h, Sec. 2.)
769-26 SECTION 26. CONFORMING AMENDMENT. Title 5, Water Code, is
769-27 amended by adding Chapter 152 to read as follows:
770-1 CHAPTER 152. RIVER AUTHORITIES ENGAGED IN
770-2 DISTRIBUTION AND SALE OF ELECTRIC ENERGY
770-3 SUBCHAPTER A. GENERAL PROVISIONS
770-4 Sec. 152.001. APPLICABILITY. (a) This chapter applies only
770-5 to a river authority that is engaged in the distribution and sale
770-6 of electric energy to the public.
770-7 (b) This chapter does not apply to any litigation instituted
770-8 before May 28, 1981, that questions the legality of an act taken or
770-9 a proceeding conducted by a river authority before that date.
770-10 (V.A.C.S. Art. 717p, Secs. 1 (part), 2(a) (part), 3(a) (part),
770-11 4A(a) (part), 4B(a) (part), 5.)
770-12 Sec. 152.002. APPLICATION OF OTHER LAW. (a) Unless this
770-13 chapter expressly provides otherwise, a law that limits, restricts,
770-14 or imposes an additional requirement on a matter authorized by this
770-15 chapter does not apply to an action or proceeding under this
770-16 chapter.
770-17 (b) Chapters 1202 and 1204, Government Code, apply to
770-18 revenue bonds, notes, or other obligations issued under this
770-19 chapter. (V.A.C.S. Art. 717p, Secs. 1 (part), 4 (part), 4A(g)
770-20 (part).)
770-21 (Sections 152.003-152.050 reserved for expansion
770-22 SUBCHAPTER B. NONPROFIT CORPORATION ACTING ON BEHALF
770-23 OF RIVER AUTHORITY
770-24 Sec. 152.051. CREATION OF NONPROFIT CORPORATION. (a) The
770-25 board of directors of a river authority by order may create one or
770-26 more nonprofit corporations to act on behalf of the river authority
770-27 as its authority and instrumentality.
771-1 (b) The Texas Non-Profit Corporation Act (Article 1396-1.01
771-2 et seq., Vernon's Texas Civil Statutes) applies to a corporation
771-3 created under this section.
771-4 (c) Sections 5-20 and 33-36, Development Corporation Act of
771-5 1979 (Article 5190.6, Vernon's Texas Civil Statutes), apply to a
771-6 corporation created under this section, except that in those
771-7 sections:
771-8 (1) a reference to that Act includes this chapter; and
771-9 (2) a reference to a unit includes a river authority
771-10 to which this chapter applies. (V.A.C.S. Art. 717p, Secs. 4A(a)
771-11 (part), (e).)
771-12 Sec. 152.052. POWERS OF NONPROFIT CORPORATION. (a) A
771-13 corporation created under Section 152.051 may exercise any power of
771-14 the creating river authority except a power relating to solid waste
771-15 management activities or activities as an exempt wholesale
771-16 generator, but including the authority to acquire, develop,
771-17 operate, and sell fuel, fuel reserves, and mineral interests. In
771-18 this subsection, "exempt wholesale generator" has the meaning
771-19 assigned by Section 32(a), Public Utility Holding Company Act of
771-20 1935 (15 U.S.C. Section 79z-5a(a)).
771-21 (b) When exercising a power under this chapter, a
771-22 corporation created under Section 152.051 and the board of
771-23 directors of the corporation have the same powers as the creating
771-24 river authority and the authority's board, including the power to
771-25 issue bonds or other obligations or otherwise borrow money on
771-26 behalf of the river authority to accomplish any purpose of the
771-27 corporation.
772-1 (c) With regard to the issuance of an obligation, the board
772-2 of directors of a corporation created under Section 152.051 may
772-3 exercise the powers granted to the governing body of:
772-4 (1) an issuer under Chapters 1201 and 1371, Government
772-5 Code; and
772-6 (2) a public agency under Chapter 1204, Government
772-7 Code. (V.A.C.S. Art. 717p, Secs. 4A(a) (part), (b), (g) (part),
772-8 (h).)
772-9 Sec. 152.053. BOARD OF DIRECTORS. (a) The board of
772-10 directors of the river authority shall appoint the directors of a
772-11 corporation created under Section 152.051.
772-12 (b) A member of the river authority's board of directors may
772-13 serve as a member of the corporation's board of directors.
772-14 (c) The directors of the corporation serve at the will of
772-15 the river authority's board of directors. (V.A.C.S. Art. 717p,
772-16 Sec. 4A(c).)
772-17 Sec. 152.054. SUPERVISION BY BOARD OF DIRECTORS OF RIVER
772-18 AUTHORITY. (a) The budget of a corporation created under Section
772-19 152.051 must be approved by the board of directors of the river
772-20 authority.
772-21 (b) The activities of the corporation are subject to the
772-22 continuing review and supervision of the river authority's board of
772-23 directors.
772-24 (c) The issuance of bonds or other obligations under this
772-25 chapter by a corporation created under Section 152.051 must be
772-26 approved by the board of directors of the river authority.
772-27 (V.A.C.S. Art. 717p, Secs. 4A(d), (g) (part).)
773-1 Sec. 152.055. LIABILITY OF CORPORATE PROPERTY FOR TAXES AND
773-2 SPECIAL ASSESSMENTS. The property of a corporation created under
773-3 Section 152.051 is not exempt from taxes or special assessments
773-4 imposed by this state or a municipality or other political
773-5 subdivision of this state. (V.A.C.S. Art. 717p, Sec. 4A(f).)
773-6 (Sections 152.056-152.100 reserved for expansion
773-7 SUBCHAPTER C. ENERGY OR WATER CONSERVATION PROGRAMS
773-8 Sec. 152.101. AUTHORITY TO PARTICIPATE IN ENERGY OR WATER
773-9 CONSERVATION PROGRAM. (a) A river authority may undertake,
773-10 sponsor, initiate, coordinate, or otherwise participate in a
773-11 program intended to conserve electric energy or water, including a
773-12 program that:
773-13 (1) encourages the more efficient use of electric
773-14 energy or water;
773-15 (2) reduces the total use of electric energy or water;
773-16 or
773-17 (3) reduces maximum total electric generating capacity
773-18 requirements through load management techniques.
773-19 (b) A determination by the board of directors of a river
773-20 authority that a program described by Subsection (a) is intended
773-21 and expected to accomplish a purpose described by that subsection
773-22 is conclusive with respect to whether the program serves the stated
773-23 purpose. (V.A.C.S. Art. 717p, Sec. 2(a) (part).)
773-24 Sec. 152.102. PARTICIPATION IN CONSERVATION PROGRAM BY
773-25 PERSON OTHER THAN RIVER AUTHORITY. (a) A conservation program may
773-26 involve a grant or loan of money, services, or equipment to a
773-27 person or entity other than the river authority engaged in the
774-1 program.
774-2 (b) Any person, including an individual or any public or
774-3 private entity, may enter into an agreement with a river authority
774-4 with respect to a conservation program.
774-5 (c) A person participating in or receiving a benefit from a
774-6 conservation program shall comply with the requirements of the
774-7 program. (V.A.C.S. Art. 717p, Sec. 2(b).)
774-8 Sec. 152.103. PUBLIC PURPOSE AND GOVERNMENTAL FUNCTION.
774-9 Each conservation program is a public purpose and governmental
774-10 function of a river authority to conserve the natural resources of
774-11 this state, including the air and the waters of the rivers and
774-12 streams of this state, electricity, and fuels used in the
774-13 generation of electricity, in accordance with Section 59(a),
774-14 Article XVI, Texas Constitution. (V.A.C.S. Art. 717p, Sec. 2(c).)
774-15 (Sections 152.104-152.150 reserved for expansion
774-16 SUBCHAPTER D. ECONOMIC DEVELOPMENT PROGRAMS
774-17 Sec. 152.151. DEFINITION. In this subchapter, "economic
774-18 development program":
774-19 (1) includes a program designed to:
774-20 (A) encourage economic diversification;
774-21 (B) contribute to the health and development of
774-22 a community to improve the attractiveness of the community to
774-23 public and private enterprises; or
774-24 (C) improve the quality or quantity of services
774-25 essential for the development of viable communities and economic
774-26 growth, including services related to education, transportation,
774-27 public safety, recreation, health care, training, community
775-1 planning, or employment; and
775-2 (2) does not include the promotion of retail wheeling
775-3 of electric power and energy. (V.A.C.S. Art. 717p, Secs. 3(k),
775-4 (l).)
775-5 Sec. 152.152. APPLICABILITY. This subchapter applies only
775-6 to a river authority that generates at least an annual average of
775-7 55 million kilowatt hours of electric energy. (V.A.C.S.
775-8 Art. 717p, Sec. 3(a) (part).)
775-9 Sec. 152.153. AUTHORITY FOR ECONOMIC DEVELOPMENT PROGRAM.
775-10 (a) A river authority may sponsor and participate in an economic
775-11 development program intended to strengthen the economic base and
775-12 further the economic development of this state.
775-13 (b) A determination by the board of directors of a river
775-14 authority that an economic development program is intended and
775-15 expected to accomplish the program's stated purposes is conclusive
775-16 with respect to whether the program serves the purposes of this
775-17 subchapter. (V.A.C.S. Art. 717p, Secs. 3(b) (part), (h).)
775-18 Sec. 152.154. PROGRAM AREA. An economic development program
775-19 must be within:
775-20 (1) the territorial boundaries of the sponsoring or
775-21 participating river authority; or
775-22 (2) the river authority's electric or water service
775-23 area. (V.A.C.S. Art. 717p, Sec. 3(b) (part).)
775-24 Sec. 152.155. ESTABLISHMENT OF PROGRAM. (a) An economic
775-25 development program may be established only by formal action of the
775-26 board of directors of a river authority.
775-27 (b) The board of directors shall:
776-1 (1) establish the goals of the program;
776-2 (2) impose requirements on persons participating in or
776-3 receiving a benefit from the program; and
776-4 (3) provide restrictions, procedures, and budget
776-5 limits the board of directors determines are necessary to ensure
776-6 that the governmental purposes of this subchapter and the program
776-7 are achieved. (V.A.C.S. Art. 717p, Sec. 3(c).)
776-8 Sec. 152.156. PARTICIPATION IN PROGRAM BY PERSON OTHER THAN
776-9 RIVER AUTHORITY. An economic development program may involve the
776-10 granting or lending of money, services, or property to a person
776-11 engaged in an economic development activity, including:
776-12 (1) a public fire-fighting organization;
776-13 (2) a governmental body;
776-14 (3) a nonprofit corporation;
776-15 (4) a local or regional development council; or
776-16 (5) any other nonprofit or noncommercial organization.
776-17 (V.A.C.S. Art. 717p, Sec. 3(d).)
776-18 Sec. 152.157. STAFFING AND FUNDING OF PROGRAM. (a) A river
776-19 authority may employ staff and spend its resources, other than
776-20 money received from an ad valorem tax or a general appropriation,
776-21 to further an economic development program.
776-22 (b) A river authority may apply for and receive money,
776-23 grants, or other assistance from any source to implement an
776-24 economic development program. (V.A.C.S. Art. 717p, Sec. 3(e).)
776-25 Sec. 152.158. AGREEMENT. A river authority and any public
776-26 or private person may enter into an agreement with respect to an
776-27 economic development program. (V.A.C.S. Art. 717p, Sec. 3(f).)
777-1 Sec. 152.159. GUIDELINES FOR ASSISTANCE TO PUBLIC
777-2 FIRE-FIGHTING ORGANIZATIONS. A river authority that proposes to
777-3 provide scholarships, grants, loans, or financial assistance to a
777-4 public fire-fighting organization shall adopt guidelines for
777-5 determining:
777-6 (1) eligibility for the assistance;
777-7 (2) the amount of any loan, grant, or other assistance
777-8 the river authority may provide; and
777-9 (3) the types of equipment, facilities, education, or
777-10 training for which the assistance may be used. (V.A.C.S.
777-11 Art. 717p, Sec. 3(g).)
777-12 Sec. 152.160. RECEIPT OF ELECTRIC SERVICE AS CONDITION FOR
777-13 PARTICIPATION IN PROGRAM. A river authority may not condition
777-14 participation in or the receipt of a benefit from an economic
777-15 development program on the receipt of electric service from the
777-16 authority. (V.A.C.S. Art. 717p, Secs. 3(b) (part), (i) (part).)
777-17 Sec. 152.161. LIMITATIONS ON USE OF PROGRAM. (a) A river
777-18 authority may not use an economic development program to:
777-19 (1) promote fuel switching or the substitution of
777-20 electric power for another fuel or energy source; or
777-21 (2) provide an economic or other incentive to use
777-22 electric power to preferentially market the use of electric power
777-23 over another fuel or energy source.
777-24 (b) This section does not limit a power granted to a river
777-25 authority by other law. (V.A.C.S. Art. 717p, Secs. 3(i) (part),
777-26 (j).)
777-27 (Sections 152.162-152.200 reserved for expansion
778-1 SUBCHAPTER E. DEBT OBLIGATIONS OF RIVER AUTHORITY
778-2 Sec. 152.201. AUTHORITY TO ISSUE OBLIGATIONS. A river
778-3 authority may issue revenue bonds, notes, or other obligations for
778-4 a purpose authorized by:
778-5 (1) this chapter; or
778-6 (2) another law, if the purpose relates to the
778-7 generation, transmission, or distribution of electricity.
778-8 (V.A.C.S. Art. 717p, Sec. 1 (part).)
778-9 Sec. 152.202. SALE OR EXCHANGE OF OBLIGATIONS. Revenue
778-10 bonds, notes, or other obligations issued under this subchapter may
778-11 be:
778-12 (1) sold for cash at a public or private sale;
778-13 (2) issued on terms determined by the board of
778-14 directors of the river authority in exchange for property or an
778-15 interest in property the board of directors considers necessary or
778-16 convenient for a purpose described by Section 152.201;
778-17 (3) issued in exchange for other matured or unmatured
778-18 obligations of the river authority in the same principal amounts;
778-19 or
778-20 (4) sold for cash in the amount equal to the principal
778-21 amount of the obligations to:
778-22 (A) this state or an agency of this state;
778-23 (B) the United States; or
778-24 (C) an agency or corporation created or
778-25 designated by this state or the United States. (V.A.C.S.
778-26 Art. 717p, Sec. 1 (part).)
778-27 Sec. 152.203. INDEPENDENT APPRAISAL. (a) Before a river
779-1 authority may acquire property under Section 152.202(2) through the
779-2 exchange of revenue bonds, notes, or other obligations, the
779-3 authority must obtain a written appraisal of the property by an
779-4 independent appraiser certifying that the property has a value
779-5 equal to or greater than the par value of the bonds, notes, or
779-6 other obligations.
779-7 (b) The river authority shall:
779-8 (1) maintain the appraisal on file as a public record;
779-9 and
779-10 (2) file a copy of the appraisal with the state
779-11 auditor. (V.A.C.S. Art. 717p, Sec. 1 (part).)
779-12 (Sections 152.204-152.250 reserved for expansion
779-13 SUBCHAPTER F. HEDGING TRANSACTIONS
779-14 Sec. 152.251. DEFINITION. In this subchapter, "hedging"
779-15 means buying or selling crude oil, fuel oil, natural gas, or
779-16 electric energy futures or options, or similar contracts on those
779-17 commodity futures, as a protection against loss due to price
779-18 fluctuations. (V.A.C.S. Art. 717p, Sec. 4B(e).)
779-19 Sec. 152.252. AUTHORITY TO ENTER INTO HEDGING CONTRACT.
779-20 (a) A river authority or a corporation created under Section
779-21 152.051 may enter into a hedging contract and related security and
779-22 insurance agreements.
779-23 (b) A hedging transaction must comply with the regulations
779-24 of the Commodity Futures Trading Commission and the Securities and
779-25 Exchange Commission. (V.A.C.S. Art. 717p, Sec. 4B(a) (part).)
779-26 Sec. 152.253. PAYMENT CONSIDERED FUEL EXPENSE. A payment by
779-27 a river authority or a corporation created under Section 152.051
780-1 under a hedging contract or related agreement in relation to fuel
780-2 supplies or fuel reserves is a fuel expense. The authority or
780-3 corporation may credit any amount it receives under the contract or
780-4 agreement against fuel expenses. (V.A.C.S. Art. 717p, Sec. 4B(b).)
780-5 Sec. 152.254. INVESTMENT OF MONEY IN HEDGING TRANSACTION.
780-6 (a) Except as provided by Subsection (b), the board of directors
780-7 of a river authority may determine and designate the amount of
780-8 money to be invested in a hedging transaction.
780-9 (b) The board of directors of the river authority by formal
780-10 policy shall regulate the investment of money in hedging contracts.
780-11 An investment may be made only for hedging purposes. The policy
780-12 must provide restrictions and procedures for making an investment
780-13 that a person of ordinary prudence, discretion, and intelligence,
780-14 exercising the judgment and care under the circumstances then
780-15 prevailing, would follow in the management of the person's own
780-16 affairs, not in regard to speculation but in regard to the
780-17 permanent disposition of the person's money, considering:
780-18 (1) the probable income; and
780-19 (2) the probable safety of the person's capital.
780-20 (V.A.C.S. Art. 717p, Secs. 4B(c), (d).)
780-21 Sec. 152.255. RECOVERABILITY OF COSTS FROM RATEPAYERS. This
780-22 subchapter does not limit the authority of the Public Utility
780-23 Commission of Texas to determine the recoverability of costs from
780-24 ratepayers. (V.A.C.S. Art. 717p, Sec. 4B(f).)
780-25 SECTION 27. CONFORMING AMENDMENT. Article 1175, Revised
780-26 Statutes, is amended to read as follows:
780-27 Art. 1175. ENUMERATED POWERS. A home-rule municipality has
781-1 the following powers:
781-2 1. [The power to issue bonds upon the credit of the
781-3 city for the purpose of making permanent public improvements or for
781-4 other public purposes in the amount and to the extent provided by
781-5 such charter, and consistent with the Constitution of this State;
781-6 provided, that said bonds shall have first been authorized by a
781-7 majority vote by the duly qualified property tax-paying voters
781-8 voting at an election held for that purpose. Thereafter all such
781-9 bonds shall be submitted to the Attorney General for his approval,
781-10 and the Comptroller for registration, as provided by law, provided
781-11 that any such bonds after approval, may be issued by the city,
781-12 either optional or serial or otherwise as may be deemed advisable
781-13 by the governing authority. Whenever any city has heretofore been
781-14 authorized, under any special charter, creating such city, to issue
781-15 any bonds by the terms of such charter, the provisions of this
781-16 chapter shall not be construed to interfere with the issuance of
781-17 any such bonds under the provisions of any charter under which such
781-18 bonds were authorized.]
781-19 [2.] To prohibit the use of any street, alley, highway
781-20 or grounds of the city by any telegraph, telephone, electric light,
781-21 street railway, interurban railway, steam railway, gas company, or
781-22 any other character of public utility without first obtaining the
781-23 consent of the governing authorities expressed by ordinance and
781-24 upon paying such compensation as may be prescribed and upon such
781-25 condition as may be provided by any such ordinance. To determine,
781-26 fix and regulate the charges, fares or rates of any person, firm or
781-27 corporation enjoying or that may enjoy the franchise or exercising
782-1 any other public privilege in said city and to prescribe the kind
782-2 of service to be furnished by such person, firm or corporation, and
782-3 the manner in which it shall be rendered, and from time to time
782-4 alter or change such rules, regulations and compensation; provided
782-5 that in adopting such regulations and in fixing or changing such
782-6 compensation, or determining the reasonableness thereof, no stock
782-7 or bonds authorized or issued by any corporation enjoying the
782-8 franchise shall be considered unless proof that the same have been
782-9 actually issued by the corporation for money paid and used for the
782-10 development of the corporate property, labor done or property
782-11 actually received in accordance with the laws and Constitution of
782-12 this State applicable thereto. In order to ascertain all facts
782-13 necessary for a proper understanding of what is or should be a
782-14 reasonable rate or regulation, the governing authority shall have
782-15 full power to inspect the books and compel the attendance of
782-16 witnesses for such purpose.
782-17 2. [3.] Provided that in all cities of over
782-18 twenty-five thousand inhabitants, the governing body of such city,
782-19 when the public service of such city may require the same, shall
782-20 have the right and power to compel any street railway or other
782-21 public utility corporation to extend its lines of service into any
782-22 section of said city not to exceed two miles, all told, in any one
782-23 year.
782-24 3. [4.] Whenever any city may determine to acquire any
782-25 public utility using and occupying its streets, alleys, and avenues
782-26 as hereinbefore provided, and it shall be necessary to condemn the
782-27 said public utility, the city may obtain funds for the purpose of
783-1 acquiring the said public utility and paying the compensation
783-2 therefor, by issuing bonds, notes or other evidence of indebtedness
783-3 and shall secure the same by fixing a lien upon the said properties
783-4 constituting the said public utility so acquired by condemnation or
783-5 purchase or otherwise; said security shall apply alone to said
783-6 properties so pledged; and such further regulations may be provided
783-7 by any charter for the proper financing or raising the revenue
783-8 necessary for obtaining any public utilities and providing for the
783-9 fixing of said security.
783-10 SECTION 28. REPEALER. (a) The following Acts and articles
783-11 as compiled in Vernon's Texas Civil Statutes are repealed: 601d,
783-12 601d-1, 601d-3, 701, 702, 703, 703a, 703b, 704, 705, 705a, 706,
783-13 707, 708, 708a, 708b, 708b-1, 709, 709a, 709b, 709c, 709d, 710,
783-14 711, 712, 713, 714, 715, 715a, 715b, 715c, 716, 716a, 716b, 717,
783-15 717a, 717a-1, 717b, 717c, 717d, 717e, 717f, 717g, 717h, 717i,
783-16 717j-1, 717k, 717k-1, 717k-2, 717k-3, 717k-4, 717k-5, 717k-6,
783-17 717k-7, 717k-8, 717k-9, 717l, 717l-1, 717m-1, 717n, 717n-1, 717o,
783-18 717p, 717q, 717s, 717t, 717u, 717v, 717w, 718, 719, 720, 721, 722,
783-19 723, 724, 725, 725a, 725b, 725c, 725d, 726, 785, 786, 787, 788,
783-20 789, 790, 791, 792, 793, 794, 795, 795a, 796, 797, 798, 799, 800,
783-21 801, 802, 802a, 802b-1, 802b-2, 802b-3, 802b-4, 802b-5, 802c, 802d,
783-22 802e, 802f, 802g, 802h, 803, 804, 805, 806, 807, 808, 809, 810,
783-23 811, 812, 813, 814, 815, 816, 817, 818, 819, 820, 821, 822a, 822b,
783-24 822c, 822d, 822e, 822f, 823, 824, 825, 826, 827, 827a, 828, 829,
783-25 830, 831, 832, 833, 834, 835, 835c, 835e, 835e-1, 835e-2, 835f,
783-26 835g, 835h, 835i, 835j, 835k, 835k-1, 835l, 835m, 835n, 835o, 835p,
783-27 835q, 835r, 835s, 836, 837, 837a, 839, 840, 841, 969a-2, 1015c,
784-1 1015c-2, 1015d, 1015g, 1015g-1, 1015g-2, 1015g-3, 1015g-4, 1015g-5,
784-2 1015h, 1066g, 1105c, 1106, 1108a, 1108b, 1109a, 1109a-1, 1109a-2,
784-3 1109h, 1110a, 1110d, 1110f, 1111, 1111a, 1111b, 1111c, 1111d, 1112,
784-4 1113, 1113a, 1113b, 1114, 1114a, 1114b, 1114c, 1114d, 1115, 1115a,
784-5 1115b, 1116, 1117, 1118, 1118a, 1118b, 1118c, 1118d, 1118e, 1118f,
784-6 1118g, 1118h, 1118i, 1118j, 1118j-1, 1118j-2, 1118k, 1118l, 1118m,
784-7 1118m-1, 1118m-2, 1118n, 1118n-1, 1118n-2, 1118n-3, 1118n-4,
784-8 1118n-5, 1118n-6, 1118n-7, 1118n-8, 1118n-9, 1118n-10, 1118n-11,
784-9 1118n-12, 1118o-1, 1118p, 1118q, 1118r, 1118s, 1118t, 1118u, 1118v,
784-10 1175e, 1176b-3, 1180b, 1182e, 1182h, 1182j, 1182n, 1187a, 1187a-1,
784-11 1187a-2, 1187b, 1187c, 1187d, 1187e, 1187f, 1264, 1269h-1, 1269h-2,
784-12 1269i, 1269j, 1269j-1, 1269j-4, 1269j-4.1, 1269j-4.15, 1269j-4.3,
784-13 1269j-4.4, 1269j-4.7, 1269j-4.8, 1269j-4.9, 1269j-5, 1269j-5.1,
784-14 1269j-5.2, 1269j-5.3, 1269j-5.4, 1269j-6, 1269j-7, 1269j-8,
784-15 1269j-9, 1269j-11, 1644c, 1644c-1, 1676c, 1696a, 1696b, 2351a-4,
784-16 2351a-7, 2352e, 2368a, 2368a-13, 2368a-14, 2368b, 2368b-1, 2368c,
784-17 2368d, 2368f, 2370, 2370b, 2370c, 2370c-1, 2370d, 2372d-1, 2372d-2,
784-18 2372d-4, 2372d-8, 2372q, 2372s, 2606a, 4398, 4477-7b, 5190.1,
784-19 5190.9a, 6081h, 6081i, 6081j, 6830, 6831, 6832, 6833, 6834, 6835,
784-20 6836, 6837, 6838, 6839, 6839b, 6839c, 6839d, 6839e, and 6839g.
784-21 (b) The following are repealed:
784-22 (1) Section 2256.056, Government Code;
784-23 (2) Section 5, Chapter 423, Acts of the 73rd
784-24 Legislature, Regular Session, 1993;
784-25 (3) Section 3, Chapter 1058, Acts of the 74th
784-26 Legislature, Regular Session, 1995.
784-27 SECTION 29. LEGISLATIVE INTENT OF NO SUBSTANTIVE CHANGE.
785-1 (a) This Act is enacted under Section 43, Article III, Texas
785-2 Constitution. This Act is intended as a recodification only, and
785-3 no substantive change in the law is intended by this Act.
785-4 (b) This Act does not impair any obligation created by the
785-5 issuance of bonds, notes, or other obligations in accordance with
785-6 prior law, and all bonds, notes, or other obligations validly
785-7 issued under provisions revised or repealed remain valid,
785-8 enforceable, and binding according to their terms and shall be paid
785-9 from the sources pledged to their payment. Bonds, notes, or other
785-10 obligations authorized but unissued on the effective date of this
785-11 Act may be issued in compliance with and subject to the provisions
785-12 of the prior law.
785-13 SECTION 30. EFFECTIVE DATE. This Act takes effect September
785-14 1, 1999.
785-15 SECTION 31. EMERGENCY. The importance of this legislation
785-16 and the crowded condition of the calendars in both houses create an
785-17 emergency and an imperative public necessity that the
785-18 constitutional rule requiring bills to be read on three several
785-19 days in each house be suspended, and this rule is hereby suspended.