87R1531 MP-D
 
  By: Metcalf H.B. No. 4576
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to approval by voters prior to the issuance of revenue
  bonds by the San Jacinto River Authority.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 10 and 10b, Chapter 426, Acts of the
  45th Legislature, Regular Session, 1937, are amended to read as
  follows:
         Sec. 10.  The [San Jacinto River Conservation and
  Reclamation] District shall not be authorized to issue bonds
  payable from ad valorem taxes nor to incur any form of continuing
  obligations or indebtedness for purposes of effecting improvements
  comprehended in the plan of organization and administration of the
  District, nor incur any indebtedness in the form of a continuing
  charge upon land or properties within the District, unless such
  proposition shall have been submitted to the qualified property
  taxpaying voters of the District, or, in appropriate case, such
  voters of a defined area or political subdivision within the
  District, and approved by a majority of such electors voting
  thereon.
         Section 10b.  The Authority shall have the authority and is
  hereby authorized to issue from time to time its negotiable revenue
  bonds for the purpose of making investigations and assembling data;
  for the purposes of purchasing, acquiring, and/or condemning lands,
  easements, rights-of-way and other properties; and for the purpose
  of constructing, repairing, improving and extending any
  structures, dams, reservoirs, transmission facilities, water
  treatment, water supply, sewage and other waste gathering,
  transmission, treatment and disposal facilities, for developing
  park and recreation facilities; and for the purposes of acquiring,
  constructing, improving, repairing and extending any other
  properties and facilities deemed appropriate by the Board of
  Directors of the Authority in the exercise of powers granted the
  Authority in Section 3 and elsewhere in this Act. Any one or more or
  a combination of the foregoing purposes may be combined into a
  single issue of bonds. Such bonds shall be issued in accordance
  with, and may be secured by and payable from any or all the revenues
  of the Authority permitted by, Section 10c hereof, including, but
  not limited to, the proceeds of any one or more contracts between
  the Authority and any persons, firms, corporations, cities and
  political subdivisions. Revenue bonds issued under this section
  must be approved in an election as described by Sections 11A, 11B,
  11C, 11D, 11E, 11F, and 11G of this Act.
         If and when the Legislature remits the ad valorem tax in the
  counties for a certain period of years, the Directors may in their
  discretion if necessary with approval of the Commissioners Court of
  the county in the watershed use part or all of the taxes remitted to
  said counties for the purpose of paying back to the United States of
  America or any of its agencies or others the money borrowed by the
  Authority for the purposes herein mentioned.
         SECTION 2.  Chapter 426, Acts of the 45th Legislature,
  Regular Session, 1937, is amended by adding Sections 11A, 11B, 11C,
  11D, 11E, 11F, and 11G to read as follows:
         Sec. 11A.  DEFINITIONS. In this Act:
               (1)  "Electric cooperative" has the meaning assigned by
  Section 11.003, Utilities Code.
               (2)  "Municipally owned utility" has the meaning
  assigned by Section 11.003, Utilities Code.
               (3)  "Retail electric provider" has the meaning
  assigned by Section 31.002, Utilities Code.
               (4)  "Retail public utility" has the meaning assigned
  by Section 13.002, Water Code.
               (5)  "Revenue bond" means a public security, as defined
  by Section 1201.002, Government Code, that is secured wholly by
  revenue other than ad valorem taxes.
         Sec. 11B.  REVENUE BOND ELECTION REQUIRED. (a) The District
  may not issue revenue bonds unless the issuance is first approved by
  a majority of voters in the service area of the District voting in a
  revenue bond election held for that purpose.
         (b)  For the purposes of this section, the service area of
  the District includes the service area of any electric cooperative,
  municipally owned utility, retail electric provider, or retail
  public utility that has a contract with the District for the
  authority to provide electric power or water to the cooperative,
  provider, or utility.
         (c)  The Public Utility Commission of Texas shall determine
  the service area of a retail electric provider for the purposes of
  Subsection (b) of this section.
         Sec. 11C.  ORDERING REVENUE BOND ELECTION. (a) The District
  shall order a revenue bond election in accordance with Chapter 3,
  Election Code.
         (b)  For a revenue bond election, the District may order an
  election that is to be held partly outside of the territory of the
  District if necessary to comply with Section 11B of this Act.
         Sec. 11D.  CONTENTS OF REVENUE BOND ELECTION ORDER. The
  revenue bond election order must distinctly state:
               (1)  the proposition language that will appear on the
  ballot;
               (2)  the location of each polling place and the hours
  that the polls will be open;
               (3)  the purpose for which the revenue bonds are to be
  authorized;
               (4)  the principal amount of the revenue bonds to be
  authorized;
               (5)  that revenue sufficient to pay the annual
  principal of and interest on the revenue bonds is anticipated;
               (6)  any estimated changes in relevant rates or fees of
  the District, and any electric cooperatives, municipally owned
  utilities, retail electric providers, and retail public utilities
  in the service area of the District, as applicable, if the revenue
  bonds are authorized and the maximum interest rate of the revenue
  bonds or any series of the revenue bonds, based on the market
  conditions at the time of the election order;
               (7)  the maximum maturity date of the revenue bonds to
  be authorized or that the revenue bonds may be issued to mature over
  a specified number of years not to exceed 40;
               (8)  the aggregate amount of the outstanding principal
  of the District's issued revenue bonds as of the beginning of the
  fiscal year in which the election is ordered; and
               (9)  the aggregate amount of the outstanding interest
  on the District's issued revenue bonds as of the beginning of the
  fiscal year in which the election is ordered.
         Sec. 11E.  CONTENTS OF PROPOSITION. The proposition
  submitted in the revenue bond election must distinctly state:
               (1)  the purpose for which the revenue bonds are to be
  issued;
               (2)  the amount of the revenue bonds;
               (3)  the rate of interest on the revenue bonds; and
               (4)  the maturity date of the revenue bonds or that the
  revenue bonds may be issued to mature serially over a specified
  number of years not to exceed 40.
         Sec. 11F.  CONDUCT OF REVENUE BOND ELECTION. (a) The
  general election laws govern a revenue bond election except as
  provided by this section.
         (b)  A revenue bond election must be held on a uniform
  election date provided by Section 41.001(a), Election Code.
         (c)  In addition to any notice required by Section 4.003(c),
  Election Code, notice of a revenue bond election must be given by:
               (1)  publishing notice of the election in a newspaper
  of general circulation published in the service area of the
  District; and
               (2)  publishing notice of the election on the
  District's Internet website, prominently and together with the
  election order prescribed by Section 11D of this Act.
         (d)  The notice required by Subsection (c)(1) of this section
  must be published on the same day in each of three successive weeks.
  The first publication must be not less than 21 days before the date
  of the revenue bond election.
         (e)  The District shall contract with the counties of the
  relevant service area to provide election services in a manner
  prescribed by Subchapter D, Chapter 31, Election Code.
         Sec. 11G.  BALLOT PROPOSITION. At a revenue bond election,
  the ballots shall be printed to permit voting for or against the
  proposition: "The issuance of bonds."
         SECTION 3.  Sections 11A, 11B, 11C, 11D, 11E, 11F, and 11G,
  Chapter 426, Acts of the 45th Legislature, Regular Session, 1937,
  as added by this Act, apply only to a revenue bond issued on or after
  the effective date of this Act. A revenue bond issued before the
  effective date of this Act is governed by the applicable law in
  effect before the effective date of this Act, and the former law is
  continued in effect for that purpose.
         SECTION 4.  (a) The legal notice of the intention to
  introduce this Act, setting forth the general substance of this
  Act, has been published as provided by law, and the notice and a
  copy of this Act have been furnished to all persons, agencies,
  officials, or entities to which they are required to be furnished
  under Section 59, Article XVI, Texas Constitution, and Chapter 313,
  Government Code.
         (b)  The governor, one of the required recipients, has
  submitted the notice and Act to the Texas Commission on
  Environmental Quality.
         (c)  The Texas Commission on Environmental Quality has filed
  its recommendations relating to this Act with the governor,
  lieutenant governor, and speaker of the house of representatives
  within the required time.
         (d)  All requirements of the constitution and laws of this
  state and the rules and procedures of the legislature with respect
  to the notice, introduction, and passage of this Act have been
  fulfilled and accomplished.
         SECTION 5.  This Act takes effect September 1, 2021.