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A BILL TO BE ENTITLED
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AN ACT
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relating to a requirement that certain bond issuers obtain an |
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appraisal of property that is to be purchased with bond proceeds. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 1331, Government Code, is |
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amended by adding Section 1331.003 to read as follows: |
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Sec. 1331.003. APPRAISAL REQUIRED BEFORE ISSUANCE OF BONDS |
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TO FINANCE PURCHASE OF PROPERTY. A municipality may not issue bonds |
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the proceeds of which are intended to be used wholly or partly to |
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purchase property until the municipality obtains an independent |
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appraisal of the property's market value. |
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SECTION 2. Subchapter C, Chapter 505, Local Government |
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Code, is amended by adding Section 505.1041 to read as follows: |
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Sec. 505.1041. APPRAISAL REQUIRED BEFORE ISSUANCE OF BONDS |
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TO FINANCE PURCHASE OF PROPERTY. A Type B corporation may not issue |
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bonds the proceeds of which are intended to be used wholly or partly |
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to purchase property for a project until the corporation obtains an |
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independent appraisal of the property's market value. |
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SECTION 3. The changes in law made by Section 1331.003, |
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Government Code, and Section 505.1041, Local Government Code, as |
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added by this Act, apply only to bonds issued on or after the |
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effective date of this Act. Bonds issued before the effective date |
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of this Act are governed by the law in effect when the bonds were |
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issued, and the former law is continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2011. |