|
|
|
A BILL TO BE ENTITLED
|
|
AN ACT
|
|
relating to the issuance of bonds by a municipality for a defined |
|
area in an abolished municipal utility district; authorizing a tax. |
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
SECTION 1. Subtitle A, Title 4, Local Government Code, is |
|
amended by adding Chapter 108 to read as follows: |
|
CHAPTER 108. MUNICIPAL BONDS FOR CERTAIN DEFINED AREAS |
|
SUBCHAPTER A. GENERAL PROVISIONS |
|
Sec. 108.001. DEFINITION. In this chapter, "defined area" |
|
means a defined area created by a municipal utility district under |
|
Subchapter J, Chapter 54, Water Code. |
|
Sec. 108.002. APPLICATION OF CHAPTER. This chapter applies |
|
only to a municipality that under Section 43.075 or any other law |
|
abolishes a municipal utility district created under Section 59, |
|
Article XVI, Texas Constitution, that contains a defined area. |
|
Sec. 108.003. CONFLICT WITH OTHER LAWS. To the extent of a |
|
conflict between this chapter and any other law, including |
|
Subchapter A, Chapter 372, this chapter controls. |
|
[Sections 108.004-108.050 reserved for expansion] |
|
SUBCHAPTER B. BONDS USED TO CARRY OUT PURPOSES OF |
|
DEFINED AREA IN ABOLISHED MUNICIPAL UTILITY DISTRICT |
|
Sec. 108.051. BONDS ORIGINALLY AUTHORIZED IN ABOLISHED |
|
MUNICIPAL UTILITY DISTRICT; PROPERTY TAXES. (a) If, before its |
|
abolition, a municipal utility district voted to issue bonds |
|
secured by property taxes for a defined area under Section 54.806, |
|
Water Code, and if some or all of the bonds were not issued, sold, |
|
and delivered before the abolition, the governing body of the |
|
municipality that abolished the district may issue and sell |
|
municipal bonds: |
|
(1) in an amount not to exceed the amount of the |
|
unissued district bonds approved by the voters; and |
|
(2) for the purpose of carrying out the purposes for |
|
which the district bonds were voted. |
|
(b) The bonds are issued under the authority under which |
|
they were voted, particularly Section 59, Article XVI, Texas |
|
Constitution. The bonds must be secured by a tax under the |
|
authority under which they were voted, particularly a tax on the |
|
property in the defined area of the abolished district. |
|
(c) The bonds must be authorized by ordinance of the |
|
governing body of the municipality. The ordinance must provide for |
|
the levy of taxes on all taxable property in the defined area of the |
|
abolished district to pay the principal of and interest on the bonds |
|
when due. |
|
Sec. 108.052. BONDS AUTHORIZED UNDER PUBLIC IMPROVEMENT |
|
DISTRICT; ASSESSMENTS. (a) If, before its abolition, a municipal |
|
utility district voted to issue bonds secured by property taxes for |
|
a defined area under Section 54.806, Water Code, and if some or all |
|
of the bonds were not issued, sold, and delivered before the |
|
abolition, the governing body of the municipality that abolished |
|
the district may, on its own motion, establish a public improvement |
|
district under Subchapter A, Chapter 372, for the purpose of |
|
issuing and selling municipal bonds: |
|
(1) in an amount not to exceed the amount of the |
|
unissued district bonds approved by the voters; and |
|
(2) for the purpose of carrying out the purposes for |
|
which the district bonds were voted, including the cost of |
|
facilities constructed after creation of the defined area in |
|
accordance with the plan for improvements adopted by the board of |
|
directors of the abolished district. |
|
(b) A municipality that establishes a public improvement |
|
district under this section may: |
|
(1) enter into agreements with developers of property |
|
in the public improvement district for the construction, |
|
acquisition, expansion, improvement, or extension of improvements |
|
in the public improvement district; |
|
(2) reimburse a developer for the costs of the |
|
improvements through assessments payable in installments on |
|
property in the public improvement district; |
|
(3) pledge any type of assessment, including |
|
installment assessments, levied against property in the public |
|
improvement district as security for bonds and agreements; and |
|
(4) structure the assessments in any manner determined |
|
by the governing body of the municipality. |
|
(c) In structuring an assessment under this section, the |
|
municipality may include in the assessment: |
|
(1) a coverage factor; |
|
(2) any prepayment dates; |
|
(3) terms or amounts; and |
|
(4) any other methodology or amounts determined |
|
necessary or convenient by the governing body of the municipality. |
|
(d) Any bonds issued by the municipality under this section |
|
must be authorized by ordinance of the governing body of the |
|
municipality and shall provide for the collection of the |
|
assessments as authorized by Subchapter A, Chapter 372, and this |
|
chapter. |
|
(e) The bonds may be payable in installments, as determined |
|
by the governing body of the municipality, against the property in |
|
the defined area. |
|
(f) The municipality may use the bonds to: |
|
(1) pay or reimburse a developer for public |
|
improvements in the public improvement district under a development |
|
or other agreement with the developer; |
|
(2) pay the principal of and interest on the bonds when |
|
due; or |
|
(3) pay any combination of purposes described by |
|
Subdivisions (1) and (2). |
|
Sec. 108.053. PLEDGES TO SECURE BONDS. The municipality |
|
may further pledge any available funds to secure the bonds, |
|
including taxes or other revenue. |
|
Sec. 108.054. CHOICE OF LAWS. (a) A municipality may |
|
exercise powers under Section 108.051 or 108.052, but may not |
|
exercise powers under both sections for the same defined area. |
|
(b) A municipality that exercises powers under Section |
|
108.051 or 108.052 to reimburse a developer's infrastructure costs |
|
in a defined area shall not be required to provide payment to the |
|
developer under Section 43.0715, Local Government Code. |
|
Sec. 108.055. CONFLICT WITH MUNICIPAL CHARTER. This |
|
subchapter prevails over a municipal charter provision to the |
|
extent of a conflict with this subchapter. |
|
Sec. 108.056. EFFECT ON OTHER MUNICIPAL BONDS. This |
|
subchapter does not affect the authority of a municipality to issue |
|
bonds for other purposes. |
|
SECTION 2. Chapter 108, Local Government Code, as added by |
|
this Act, applies to a municipal utility district abolished, or a |
|
district vote to issue bonds that occurred, before, on, or after the |
|
effective date of this Act. |
|
SECTION 3. This Act takes effect immediately if it receives |
|
a vote of two-thirds of all the members elected to each house, as |
|
provided by Section 39, Article III, Texas Constitution. If this |
|
Act does not receive the vote necessary for immediate effect, this |
|
Act takes effect September 1, 2007. |