By: Fraser  S.B. No. 1535
         (In the Senate - Filed March 8, 2007; March 20, 2007, read
  first time and referred to Committee on Intergovernmental
  Relations; April 11, 2007, reported adversely, with favorable
  Committee Substitute by the following vote:  Yeas 3, Nays 0;
  April 11, 2007, sent to printer.)
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 1535 By:  Wentworth
 
 
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.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter D, Chapter 43, Local Government Code,
  is amended by adding Section 43.0805 to read as follows:
         Sec. 43.0805.  MUNICIPAL BONDS USED TO CARRY OUT PURPOSES OF
  DEFINED AREA IN ABOLISHED MUNICIPAL UTILITY DISTRICT.  (a)  This
  section applies only to a municipality that under any other law,
  including Section 43.075, abolishes a municipal utility district
  created under Section 59, Article XVI, Texas Constitution, that
  contains a defined area that the district created under Subchapter
  J, Chapter 54, Water Code.
         (b)  If, before its abolition, the district voted to issue
  bonds for the 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 may issue and
  sell municipal bonds in an amount not to exceed the amount of the
  unissued district bonds to carry out the purposes for which the
  district bonds were voted.
         (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. The bonds must be sold at not less than par value and
  accrued interest, and must mature, bear interest, and be subject to
  approval by the attorney general and to registration by the
  comptroller as provided by law for other general obligation bonds
  of the municipality.
         (d)  A bond that is approved, registered, and sold as
  provided by this section is incontestable.
         (e)  This section repeals a municipal charter provision to
  the extent of a conflict with this section. This section does not
  affect the authority of a municipality to issue bonds for other
  purposes.
         SECTION 2.  Section 43.0805, 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.
 
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