87R20030 E
 
  By: Burrows, Bonnen, Middleton, et al. H.B. No. 1869
 
  Substitute the following for H.B. No. 1869:
 
  By:  Sanford C.S.H.B. No. 1869
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the definition of debt for the purposes of calculating
  certain ad valorem tax rates of a taxing unit.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 26.012, Tax Code, is amended by amending
  Subdivision (7) and adding Subdivisions (9), (18-a), and (18-b) to
  read as follows:
               (7)  "Debt" means:
                     (A)  a bond, warrant, certificate of obligation,
  or other evidence of indebtedness owed by a taxing unit that:
                           (i)  is payable [solely] from property taxes
  in installments over a period of more than one year, not budgeted
  for payment from maintenance and operations funds, and secured by a
  pledge of property taxes; and
                           (ii)  meets one of the following
  requirements:
                                 (a)  has been approved at an election;
                                 (b)  includes self-supporting debt;
                                 (c)  evidences a loan under a state or
  federal financial assistance program;
                                 (d)  is issued for designated
  infrastructure;
                                 (e)  is a refunding bond; or
                                 (f)  is issued in response to an
  emergency under Section 1431.015, Government Code;[,] or
                     (B)  a payment made under contract to secure
  indebtedness of a similar nature issued by another political
  subdivision on behalf of the taxing unit.
               (9)  "Designated infrastructure" means infrastructure,
  including a facility or equipment, for the following purposes:
                     (A)  streets, roads, or highways;
                     (B)  telecommunications;
                     (C)  cyber security; or
                     (D)  as part of any utility system, water supply
  project, water plant, wastewater plant, water and wastewater
  distribution or conveyance facility, wharf, dock, or flood control,
  and drainage project.
               (18-a)  "Refunding bond" means a bond or other
  obligation issued for refunding or refinancing purposes under
  Chapter 1207 or 1371, Government Code.
               (18-b)  "Self-supporting debt" means the portion of a
  bond, warrant, certificate of obligation, or other evidence of
  indebtedness described by Subdivision (7)(A)(i) designated by the
  governing body of a political subdivision as being repaid from a
  source other than property taxes.
         SECTION 2.  The changes in law made by this Act apply only to
  a bond, warrant, certificate of obligation, or other evidence of
  indebtedness for which the ordinance, order, or resolution
  authorizing issuance was adopted by the governing body of the
  taxing unit on or after the effective date of this Act.
         SECTION 3.  This Act takes effect September 1, 2021.