BILL ANALYSIS

Senate Research Center	S.B. 938
	By: Blanco
	Water, Agriculture & Rural Affairs
	5/2/2023
	Enrolled

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

In 2003, the Texas Constitution was amended, giving conservation and reclamation in certain counties across the state the ability to issue bonds to fund the development and maintenance of parks and recreation facilities. El Paso County was left out of this constitutional amendment and currently does not have this authority, resulting in an underfunded parks system across the county.

El Paso County should be included on the list of Texas counties that allow their conservation and reclamation districts to issue bonds to develop recreational facilities. Allowing bonds to be issued for recreational purposes will benefit the health and wellness of El Paso County residents and encourage further economic development and growth for the region.

S.B. 938 is the enabling legislation for S.J.R. 32, which would propose an amendment to the Texas Constitution to authorize conservation and reclamation districts, all or part of which are located in El Paso County, to issue bonds supported by property taxes to fund recreational purposes.

S.B. 938 amends current law relating to the issuance by certain conservation and reclamation districts of bonds for the development and maintenance of recreational facilities.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 49.4645(a), Water Code, as follows:

(a) Authorizes a district all or part of which is located in certain counties, including El Paso County, to issue bonds supported by ad valorem taxes to pay for the development and maintenance of recreational facilities only if the bonds are authorized by a majority vote of the voters of the district voting in an election held for that purpose. Prohibits the outstanding principal amount of bonds, notes, and other obligations issued to finance recreational facilities, rather than parks and recreational facilities, supported by ad valorem taxes except as provided by Subsection (a-1) (relating to authorizing the outstanding principal amount of bonds, notes, and other obligations issued to finance a recreational facility to exceed a certain amount if the district meets certain criteria), from exceeding an amount equal to one percent of the value of the taxable property in the district as shown by the tax rolls of the central appraisal district at the time of the issuance of the bonds, notes, and other obligations.

SECTION 2. Provides that this Act is contingent upon approval by the voters of the constitutional amendment proposed by the 88th Legislature, Regular Session, 2023, relating to the authority of the legislature to permit conservation and reclamation districts in El Paso County to issue bonds supported by ad valorem taxes to fund the development and maintenance of parks and recreational facilities.