88R4576 SHH-F
 
  By: Bettencourt, Middleton S.B. No. 977
 
 
 
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(7), Tax Code, is amended 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 has been approved at an election and[:
                           [(i)]  is payable 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;
                                 [(f)  is issued in response to an
  emergency under Section 1431.015, Government Code;
                                 [(g)  is issued for renovating,
  improving, or equipping existing buildings or facilities;
                                 [(h)  is issued for vehicles or
  equipment; or
                                 [(i)  is issued for a project under
  Chapter 311, Tax Code, or Chapter 222, Transportation Code, that is
  located in a reinvestment zone created under one of those
  chapters;] 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.
         SECTION 2.  Sections 26.012(9), (18-a), and (18-b), Tax
  Code, are repealed.
         SECTION 3.  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 the issuance is adopted by the governing body of a
  taxing unit on or after the effective date of this Act and for which
  the taxing unit has not entered into a binding agreement before the
  effective date of this Act that contemplates the issuance of the
  debt.  The changes in law made by this Act do not apply to a bond,
  warrant, certificate of obligation, or other evidence of
  indebtedness for which the ordinance, order, or resolution
  authorizing the issuance was adopted by the governing body of a
  taxing unit before the effective date of this Act or for which the
  taxing unit has entered into a binding agreement before the
  effective date of this Act that contemplates the issuance of such
  debt, and the former law is continued in effect for that purpose.  
  For the purposes of this section, "binding agreement" includes a
  development agreement, ordinance, order, or resolution that
  authorizes or delegates to an appropriate officer of a taxing unit
  the execution of a binding agreement at a later date.
         SECTION 4.  This Act takes effect September 1, 2023.