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A BILL TO BE ENTITLED
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AN ACT
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relating to the issuance of bonds by certain local government |
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corporations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 431.070(a), Transportation Code, is |
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amended to read as follows: |
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(a) Subject to Subchapter D-1, a [A] corporation may issue |
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bonds and notes to carry out its purpose. |
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SECTION 2. Section 431.101(b), Transportation Code, is |
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amended to read as follows: |
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(b) Except as provided by Subchapter D-1, a [A] local |
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government corporation has the powers of a corporation authorized |
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for creation by the commission under this chapter. |
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SECTION 3. Chapter 431, Transportation Code, is amended by |
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adding Subchapter D-1 to read as follows: |
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SUBCHAPTER D-1. ISSUANCE OF BONDS BY CERTAIN LOCAL GOVERNMENT |
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CORPORATIONS CREATED BY MUNICIPALITIES OR COUNTIES |
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Sec. 431.120. APPLICABILITY OF SUBCHAPTER. This subchapter |
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applies to a local government corporation created by a municipality |
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or county that has entered into an agreement with a municipality or |
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county for the transfer of property tax revenue from the |
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municipality or county to the corporation for a specific project. |
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Sec. 431.121. BOND ELECTION REQUIRED. (a) A local |
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government corporation may not issue bonds to be paid wholly or |
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partly from ad valorem taxes approved by the voters of a |
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municipality or county under Section 26.07, Tax Code, to pay for a |
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specific project, unless the issuance is first approved by the |
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voters of the municipality or county in an election. |
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(b) An election held for purposes of this section must be |
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conducted as provided by Section 1251.003, Government Code. |
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(c) At an election ordered on the issuance of bonds under |
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this section, the governing body of the municipality or county |
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shall also submit the question of whether to impose a tax on |
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property in the municipality or county to pay interest on the bonds |
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and to provide a sinking fund to redeem the bonds. |
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Sec. 431.122. FORM OF BALLOT. (a) The ballot proposition |
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for a measure seeking voter approval for issuance of bonds under |
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this subchapter must include: |
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(1) a plain language description of the single |
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specific purposes for which the bonds are to be authorized; |
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(2) the total principal amount of the bonds to be |
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authorized; and |
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(3) that the principal of and interest on the bonds |
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will be wholly or partly paid from property tax revenue. |
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(b) Each single specific purpose for which bonds requiring |
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voter approval are to be issued must be printed on the ballot as a |
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separate proposition. A proposition may include as a specific |
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purpose one or more structures or improvements serving the |
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substantially same purpose and may include related improvements and |
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equipment necessary to accomplish the specific purpose. |
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SECTION 4. The change in law made by Subchapter D-1, Chapter |
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431, Transportation Code, as added by this Act, applies only to a |
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bond authorized to be issued on or after the effective date of this |
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Act. |
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SECTION 5. This Act takes effect September 1, 2023. |