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A BILL TO BE ENTITLED
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AN ACT
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relating to the issuance of bonds by a municipality for a defined |
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area in an abolished municipal utility district. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter D, Chapter 43, Local Government Code, |
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is amended by adding Section 43.0805 to read as follows: |
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Sec. 43.0805. MUNICIPAL BONDS USED TO CARRY OUT PURPOSES OF |
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DEFINED AREA IN ABOLISHED MUNICIPAL UTILITY DISTRICT. (a) This |
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section applies only to a municipality that under any other law, |
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including Section 43.075, abolishes a municipal utility district |
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created under Section 59, Article XVI, Texas Constitution, that |
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contains a defined area that the district created under Subchapter |
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J, Chapter 54, Water Code. |
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(b) If, before its abolition, the district voted to issue |
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bonds for the defined area under Section 54.806, Water Code, and if |
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some or all of the bonds were not issued, sold, and delivered before |
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the abolition, the governing body of the municipality may issue and |
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sell municipal bonds in an amount not to exceed the amount of the |
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unissued district bonds to carry out the purposes for which the |
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district bonds were voted. |
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(c) The bonds must be authorized by ordinance of the |
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governing body of the municipality. The ordinance must provide for |
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the levy of taxes on all taxable property in the defined area of the |
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abolished district to pay the principal of and interest on the bonds |
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when due. The bonds must be sold at not less than par value and |
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accrued interest, and must mature, bear interest, and be subject to |
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approval by the attorney general and to registration by the |
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comptroller as provided by law for other general obligation bonds |
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of the municipality. |
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(d) A bond that is approved, registered, and sold as |
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provided by this section is incontestable. |
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(e) This section repeals a municipal charter provision to |
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the extent of a conflict with this section. This section does not |
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affect the authority of a municipality to issue bonds for other |
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purposes. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |