| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the manner of sale of bonds issued by municipal utility |
|
|
districts. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 49.183, Water Code, is amended to read as |
|
|
follows: |
|
|
Sec. 49.183. BOND SALES. (a) Except for refunding bonds, |
|
|
bonds issued by a municipal utility district, or bonds sold to a |
|
|
state or federal agency or to the North American Development Bank, |
|
|
bonds issued by a district shall be sold after advertising for and |
|
|
receiving competitive sealed bids and shall be awarded to the |
|
|
bidder whose bid produces the lowest net effective interest rate to |
|
|
the district. |
|
|
(b) Except for refunding bonds, bonds issued by a municipal |
|
|
utility district, or bonds sold to a state or federal agency or to |
|
|
the North American Development Bank, before any bonds are sold by a |
|
|
district, the board shall publish an appropriate notice of the |
|
|
sale: |
|
|
(1) at least one time not less than 10 days before the |
|
|
date of sale in a newspaper of general circulation in the county or |
|
|
counties in which the district is located; and |
|
|
(2) at least one time in one or more recognized |
|
|
financial publications of general circulation in the state as |
|
|
approved by the state attorney general. |
|
|
(c) If the district is issuing bonds and refunding bonds as |
|
|
one issue and if the initial principal amount of refunding bonds is |
|
|
50 percent or more of the total initial principal amount of bonds |
|
|
being issued, for the purposes of subsections (a) and (b) of this |
|
|
section, the issue shall be considered to be refunding bonds and |
|
|
competitive bids shall not be required. |
|
|
(d) Bonds issued by a municipal utility district operating |
|
|
under Chapter 54, Water Code, may be sold at a public or private |
|
|
sale under the terms determined by the governing body of the |
|
|
municipal utility district to be in the district's best interest. |
|
|
(d)(e) A district's bonds are negotiable instruments within |
|
|
the meaning and purposes of the Business & Commerce Code. A |
|
|
district's bonds may be issued and bear interest in accordance with |
|
|
Chapters 1201, 1204, and 1371, Government Code, and Subchapters |
|
|
A-C, Chapter 1207, Government Code. Except for this subsection, |
|
|
this section does not apply to special water authorities or |
|
|
districts described in Section 49.181(h)(4). |
|
|
(e)(f) Subsections (a) and (b) do not apply to district |
|
|
bonds issued pursuant to Chapter 1371, Government Code. |
|
|
SECTION 2. 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, 2009. |