88R8612 DRS-F
 
  By: Bettencourt S.B. No. 1791
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the issuance of bonds by certain local government
  corporations.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 431.070(a), Transportation Code, is
  amended to read as follows:
         (a)  Subject to Subchapter D-1, a [A] corporation may issue
  bonds and notes to carry out its purpose.
         SECTION 2.  Section 431.101(b), Transportation Code, is
  amended to read as follows:
         (b)  Except as provided by Subchapter D-1, a [A] local
  government corporation has the powers of a corporation authorized
  for creation by the commission under this chapter.
         SECTION 3.  Chapter 431, Transportation Code, is amended by
  adding Subchapter D-1 to read as follows:
  SUBCHAPTER D-1.  ISSUANCE OF BONDS BY CERTAIN LOCAL GOVERNMENT
  CORPORATIONS CREATED BY MUNICIPALITIES OR COUNTIES
         Sec. 431.120.  APPLICABILITY OF SUBCHAPTER. This subchapter
  applies to a local government corporation created by a municipality
  or county that has entered into an agreement with a municipality or
  county for the transfer of property tax revenue from the
  municipality or county to the corporation for a specific project.
         Sec. 431.121.  BOND ELECTION REQUIRED. (a)  A local
  government corporation may not issue bonds to be paid wholly or
  partly from ad valorem taxes approved by the voters of a
  municipality or county under Section 26.07, Tax Code, to pay for a
  specific project, unless the issuance is first approved by the
  voters of the municipality or county in an election.
         (b)  An election held for purposes of this section must be
  conducted as provided by Section 1251.003, Government Code.
         (c)  At an election ordered on the issuance of bonds under
  this section, the governing body of the municipality or county
  shall also submit the question of whether to impose a tax on
  property in the municipality or county to pay interest on the bonds
  and to provide a sinking fund to redeem the bonds.
         Sec. 431.122.  FORM OF BALLOT. (a)  The ballot proposition
  for a measure seeking voter approval for issuance of bonds under
  this subchapter must include:
               (1)  a plain language description of the single
  specific purposes for which the bonds are to be authorized;
               (2)  the total principal amount of the bonds to be
  authorized; and
               (3)  that the principal of and interest on the bonds
  will be wholly or partly paid from property tax revenue.
         (b)  Each single specific purpose for which bonds requiring
  voter approval are to be issued must be printed on the ballot as a
  separate proposition.  A proposition may include as a specific
  purpose one or more structures or improvements serving the
  substantially same purpose and may include related improvements and
  equipment necessary to accomplish the specific purpose.
         SECTION 4.  The change in law made by Subchapter D-1, Chapter
  431, Transportation Code, as added by this Act, applies only to a
  bond authorized to be issued on or after the effective date of this
  Act.
         SECTION 5.  This Act takes effect September 1, 2023.