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A BILL TO BE ENTITLED
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AN ACT
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relating to the issuance of certain bonds by municipal utility |
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districts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 54.505, Water Code, is amended to read as |
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follows: |
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Sec. 54.505. ELECTION ON TAX BONDS. Bonds payable solely |
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from revenues may be issued by resolution or order of the board |
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without an election. Except as provided by Section 54.514(h), |
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bonds [, but no bonds, except refunding bonds,] payable wholly or |
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partly [partially] from ad valorem taxes may [shall] be issued only |
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if the bonds are approved by a two-thirds [until authorized by a |
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majority] vote of the resident electors of the district voting in an |
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election called and held for that purpose. An election is not |
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required to pledge revenues to the payment of bonds. |
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SECTION 2. Section 54.514, Water Code, is amended by adding |
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Subsection (h) to read as follows: |
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(h) Refunding bonds payable wholly or partly from ad valorem |
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taxes may be issued without an election under Section 54.505 only if |
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the district reduces the rate of ad valorem tax on all taxable |
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property within the district by an amount that would offset the |
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amount saved by refinancing the bonds. |
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SECTION 3. Subchapter F, Chapter 54, Water Code, is amended |
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by adding Section 54.523 to read as follows: |
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Sec. 54.523. PROHIBITION ON ISSUING CERTAIN BONDS. A |
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district may not issue any bonds payable wholly or partly from ad |
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valorem taxes if the district has outstanding bonds that are |
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payable wholly or partly from ad valorem taxes. |
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SECTION 4. This Act takes effect September 1, 2023. |