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A BILL TO BE ENTITLED
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AN ACT
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relating to authorizing Bexar County to issue bonds or notes to |
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finance the acquisition of real property and the construction of a |
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building or facility on the property for use by an institution of |
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higher education and to pledge for repayment of those bonds or notes |
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increases in revenues from ad valorem taxes imposed by the county |
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and other political subdivisions on property located in a |
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designated area of the county. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle B, Title 3, Tax Code, is amended by |
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adding Chapter 311A to read as follows: |
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CHAPTER 311A. BEXAR COUNTY TAX INCREMENT FINANCING ACT |
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Sec. 311A.001. APPLICABILITY. This chapter applies only to |
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Bexar County and real property in that county. |
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Sec. 311A.002. DEFINITIONS. In this chapter: |
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(1) "Board" means the board of directors of the |
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reinvestment zone. |
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(2) "Commissioners court" means the commissioners |
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court of Bexar County. |
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(3) "County" means Bexar County. |
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(4) "Taxing unit" has the meaning assigned by Section |
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1.04. |
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Sec. 311A.003. PROCEDURE FOR CREATING REINVESTMENT ZONE. |
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(a) The commissioners court by order may designate a contiguous |
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geographic area in the jurisdiction of the county to be a |
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reinvestment zone. |
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(b) The designated area must include land that the county |
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owns or proposes to acquire and on which the county proposes to |
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construct a building or facility for use by an institution of higher |
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education selected by the county. |
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Sec. 311A.004. CONTENTS OF REINVESTMENT ZONE ORDER. The |
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order designating an area as the reinvestment zone must: |
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(1) describe the boundaries of the zone with |
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sufficient definiteness to identify with ordinary and reasonable |
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certainty the territory included in the zone; |
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(2) create a board of directors for the zone and |
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specify the number of directors of the board; |
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(3) provide that the zone take effect immediately on |
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adoption of the order; |
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(4) provide a date for termination of the zone; |
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(5) specify the powers of the county that are |
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delegated to the board for the zone; and |
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(6) establish a tax increment fund for the zone. |
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Sec. 311A.005. POWERS OF COUNTY. The county may acquire |
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real property by purchase, condemnation, or other means and |
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construct a building or facility for use by an institution of higher |
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education selected by the commissioners court. |
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Sec. 311A.006. COMPOSITION OF BOARD OF DIRECTORS. (a) The |
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board of directors of the reinvestment zone consists of at least |
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five and not more than 15 members, unless more than 15 members are |
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required to satisfy the requirements of this subsection. Each |
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taxing unit other than the county that levies taxes on real property |
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in the zone may appoint one member of the board. A unit may waive |
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its right to appoint a director. |
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(b) Members of the board are appointed for terms of two |
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years. Terms of members may be staggered. |
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(c) A vacancy on the board is filled for the unexpired term |
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by appointment of the governing body of the taxing unit that |
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appointed the director who served in the vacant position. |
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(d) To be eligible for appointment to the board, an |
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individual must: |
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(1) be a qualified voter of the county; or |
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(2) be at least 18 years of age and own real property |
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in the zone, regardless of whether the individual resides in the |
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county. |
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(e) Each year the commissioners court shall appoint one |
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member of the board to serve as presiding officer for a term of one |
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year that begins on January 1 of the following year. The board may |
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elect an assistant presiding officer to preside in the absence of |
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the presiding officer or when there is a vacancy in the office of |
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presiding officer. The board may elect other officers as it |
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considers appropriate. |
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(f) A member of the board is not a public official by virtue |
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of that position. |
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Sec. 311A.007. POWERS AND DUTIES OF BOARD OF DIRECTORS. (a) |
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The board shall make recommendations to the commissioners court |
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concerning the administration of this chapter in the reinvestment |
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zone. |
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(b) The board may exercise any power delegated to the board |
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in the order designating the reinvestment zone. |
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Sec. 311A.008. PROJECT AND FINANCING PLANS. (a) The board |
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shall prepare and adopt a project plan and a reinvestment zone |
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financing plan for the zone and submit the plans to the |
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commissioners court. |
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(b) The project plan must include: |
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(1) a map showing existing uses of real property in the |
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zone and a map showing the proposed building or facility; and |
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(2) a statement of a method of relocating persons to be |
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displaced as a result of implementing the plan. |
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(c) The reinvestment zone financing plan must include: |
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(1) a detailed list describing the estimated cost of |
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the proposed building or facility; |
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(2) a statement describing the proposed building or |
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facility and specifying the institution of higher education for |
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which the proposed building or facility is to be constructed; |
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(3) the estimated amount of bonded indebtedness to be |
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incurred; |
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(4) the time when related costs or monetary |
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obligations are to be incurred; |
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(5) a description of the methods of financing the |
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acquisition of land and the construction of the building or |
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facility, including the percentage of tax increment to be derived |
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from the property taxes of each taxing unit that levies taxes on |
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real property in the zone; |
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(6) the current total appraised value of taxable real |
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property in the zone; |
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(7) the estimated captured appraised value of the zone |
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during each year of its existence; and |
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(8) the duration of the zone. |
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(d) The commissioners court by order must approve the |
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project plan or reinvestment zone financing plan after its adoption |
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by the board if the commissioners court finds that the plan is |
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feasible. |
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Sec. 311A.009. DETERMINATION OF AMOUNT OF TAX INCREMENT. |
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(a) The amount of a taxing unit's tax increment for a year is the |
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amount of property taxes levied and collected by the unit for that |
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year on the captured appraised value of real property taxable by the |
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unit and located in the reinvestment zone. |
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(b) The captured appraised value of real property taxable by |
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a taxing unit for a year is the total appraised value of all real |
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property taxable by the unit and located in the reinvestment zone |
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for that year less the tax increment base of the unit. |
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(c) The tax increment base of a taxing unit is the total |
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appraised value of all real property taxable by the unit and located |
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in the reinvestment zone for the year in which the zone was |
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designated. |
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Sec. 311A.010. COLLECTION AND DEPOSIT OF TAX INCREMENTS. |
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(a) Each taxing unit that taxes real property located in the |
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reinvestment zone shall provide for the collection of its taxes in |
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the zone as for any other property taxed by the unit. |
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(b) Each taxing unit shall pay into the tax increment fund |
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for the zone an amount equal to the tax increment produced by the |
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unit. |
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(c) A taxing unit shall make a payment required by |
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Subsection (b) not later than the 90th day after the delinquency |
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date for the unit's property taxes. A delinquent payment incurs a |
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penalty of five percent of the amount delinquent and accrues |
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interest at an annual rate of 10 percent. |
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(d) Notwithstanding Subsection (c), a taxing unit is not |
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required to pay into the tax increment fund the applicable portion |
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of a tax increment attributable to delinquent taxes until those |
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taxes are collected. |
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Sec. 311A.011. TAX INCREMENT FUND. (a) In addition to the |
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deposits required by Section 311A.010, all revenues from the sale |
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of tax increment bonds or notes and other revenues to be used in the |
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reinvestment zone shall be deposited in the tax increment fund. |
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(b) Money may be disbursed from the fund only to satisfy |
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claims of holders of tax increment bonds or notes issued for the |
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zone, to pay project costs for the zone, or to repay other |
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obligations incurred for the zone. |
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(c) Subject to an agreement with the holders of tax |
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increment bonds or notes, money in a tax increment fund may be |
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temporarily invested in the same manner as other funds of the |
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county. |
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(d) After all project costs, all tax increment bonds or |
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notes issued for a reinvestment zone, and any other obligations |
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incurred for the zone have been paid, and subject to any agreement |
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with bondholders, any money remaining in the tax increment fund |
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shall be paid to the county and all other taxing units levying taxes |
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on property in the zone in proportion to the county's and each other |
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unit's respective share of the total amount of tax increments |
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derived from taxable real property in the zone that were deposited |
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in the fund during the fund's existence. |
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Sec. 311A.012. TAX INCREMENT BONDS AND NOTES. In relation |
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to tax increment bonds and notes, the county has the same authority |
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as a municipality under Section 311.015, and that section applies |
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to tax increment bonds and notes issued under this chapter. |
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Sec. 311A.013. TERMINATION OF REINVESTMENT ZONE. The |
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reinvestment zone terminates on the earlier of: |
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(1) the termination date designated in the order |
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designating the zone or an earlier termination date designated by |
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an order adopted subsequent to that order; or |
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(2) the date on which all costs, tax increment bonds |
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and interest on those bonds, and other obligations have been paid in |
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full. |
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SECTION 2. This Act takes effect January 1, 2010, but only |
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if the constitutional amendment authorizing Bexar County to issue |
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bonds or notes to finance the acquisition of real property and the |
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construction of a building or facility on the property for use by an |
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institution of higher education and to pledge for repayment of |
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those bonds or notes increases in revenues from ad valorem taxes |
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imposed by the county and other political subdivisions on property |
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located in a designated area of the county is approved by the |
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voters. If that amendment is not approved by the voters, this Act |
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has no effect. |