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A BILL TO BE ENTITLED
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AN ACT
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relating to the definition of debt for the purposes of calculating |
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certain ad valorem tax rates of a taxing unit. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 26.012, Tax Code, is amended by amending |
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Subdivision (7) and adding Subdivisions (9), (18-a), and (18-b) to |
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read as follows: |
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(7) "Debt" means: |
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(A) a bond, warrant, certificate of obligation, |
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or other evidence of indebtedness owed by a taxing unit that: |
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(i) is payable [solely] from property taxes |
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in installments over a period of more than one year, not budgeted |
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for payment from maintenance and operations funds, and secured by a |
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pledge of property taxes; and |
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(ii) meets one of the following |
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requirements: |
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(a) has been approved at an election; |
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(b) includes self-supporting debt; |
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(c) evidences a loan under a state or |
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federal financial assistance program; |
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(d) is issued for designated |
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infrastructure; |
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(e) is a refunding bond; |
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(f) is issued in response to an |
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emergency under Section 1431.015, Government Code; |
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(g) is issued for renovating, |
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improving, or equipping existing buildings or facilities; |
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(h) is issued for vehicles or |
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equipment; or |
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(i) is issued for a project under |
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Chapter 311, Tax Code, or Chapter 222, Transportation Code, that is |
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located in a reinvestment zone created under one of those |
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chapters;[,] or |
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(B) a payment made under contract to secure |
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indebtedness of a similar nature issued by another political |
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subdivision on behalf of the taxing unit. |
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(9) "Designated infrastructure" means infrastructure, |
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including a facility, equipment, rights-of-way, or land, for the |
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following purposes: |
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(A) streets, roads, highways, bridges, |
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sidewalks, parks, landfills, or airports; |
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(B) telecommunications, wireless |
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communications, information technology systems, applications, |
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hardware, or software; |
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(C) cybersecurity; |
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(D) as part of any utility system, water supply |
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project, water plant, wastewater plant, water and wastewater |
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distribution or conveyance facility, wharf, dock, or flood control |
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and drainage project; |
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(E) as part of any school district; |
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(F) as part of any hospital district created by |
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general or special law that includes a teaching hospital; or |
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(G) police stations, fire stations, or other |
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public safety facilities, jails, juvenile detention facilities, or |
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judicial facilities. |
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(18-a) "Refunding bond" means a bond or other |
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obligation issued for refunding or refinancing purposes under |
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Chapter 1207 or 1371, Government Code. |
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(18-b) "Self-supporting debt" means the portion of a |
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bond, warrant, certificate of obligation, or other evidence of |
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indebtedness described by Subdivision (7)(A)(i) designated by the |
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governing body of a political subdivision as being repaid from a |
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source other than property taxes. |
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SECTION 2. The changes in law made by this Act apply only to |
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a bond, warrant, certificate of obligation, or other evidence of |
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indebtedness for which the ordinance, order, or resolution |
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authorizing issuance was adopted by the governing body of the |
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taxing unit on or after the effective date of this Act. |
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SECTION 3. This Act takes effect September 1, 2021. |
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