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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of a special utility district to issue a |
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public security. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1371.001(4), Government Code, is amended |
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to read as follows: |
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(4) "Issuer" means: |
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(A) a home-rule municipality that: |
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(i) adopted its charter under Section 5, |
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Article XI, Texas Constitution; |
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(ii) has a population of 50,000 or more; and |
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(iii) has outstanding long-term |
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indebtedness that is rated by a nationally recognized rating agency |
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for municipal securities in one of the four highest rating |
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categories for a long-term obligation; |
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(B) a conservation and reclamation district |
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created and organized as a river authority under Section 52, |
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Article III, or Section 59, Article XVI, Texas Constitution; |
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(C) a joint powers agency organized and operating |
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under Chapter 163, Utilities Code; |
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(D) a metropolitan rapid transit authority, |
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regional transportation authority, or coordinated county |
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transportation authority created, organized, or operating under |
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Chapter 451, 452, or 460, Transportation Code; |
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(E) a conservation and reclamation district |
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organized or operating as a navigation district under Section 52, |
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Article III, or Section 59, Article XVI, Texas Constitution; |
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(F) a district organized or operating under |
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Section 59, Article XVI, Texas Constitution, that has all or part of |
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two or more municipalities within its boundaries; |
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(G) a state agency, including a state institution |
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of higher education; |
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(H) a hospital authority created or operating |
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under Chapter 262 or 264, Health and Safety Code, in a county that: |
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(i) has a population of more than 3.3 |
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million; or |
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(ii) is included, in whole or in part, in a |
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standard metropolitan statistical area of this state that includes |
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a county with a population of more than 2.5 million; |
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(I) a hospital district in a county that has a |
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population of more than 2.5 million; |
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(J) a nonprofit corporation organized to |
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exercise the powers of a higher education loan authority under |
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Section 53B.47(e), Education Code; |
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(K) a county: |
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(i) that has a population of more than 3.3 |
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million; or |
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(ii) that, on the date of issuance of |
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obligations under this chapter, has authorized, outstanding, or any |
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combination of authorized and outstanding, indebtedness of at least |
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$100 million secured by and payable from the county's ad valorem |
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taxes and the authorized long-term indebtedness of which is rated |
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by a nationally recognized rating agency of securities issued by |
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local governments in one of the four highest rating categories for a |
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long-term obligation; |
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(L) an independent school district that has an |
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average daily attendance of 50,000 or more as determined under |
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Section 48.005, Education Code; |
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(M) a municipality or county operating under |
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Chapter 334, Local Government Code; |
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(N) a district created under Chapter 335, Local |
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Government Code; |
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(O) a junior college district that has a total |
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headcount enrollment of 40,000 or more based on enrollment in the |
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most recent regular semester; [or] |
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(P) a conservation and reclamation district |
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organized or operating as a special utility district under Section |
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59, Article XVI, Texas Constitution, and Chapter 65, Water Code; or |
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(Q) an issuer, as defined by Section 1201.002, |
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that has: |
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(i) a principal amount of at least $100 |
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million in outstanding long-term indebtedness, in long-term |
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indebtedness proposed to be issued, or in a combination of |
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outstanding or proposed long-term indebtedness; and |
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(ii) some amount of long-term indebtedness |
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outstanding or proposed to be issued that is rated in one of the |
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four highest rating categories for long-term debt instruments by a |
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nationally recognized rating agency for municipal securities, |
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without regard to the effect of any credit agreement or other form |
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of credit enhancement entered into in connection with the |
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obligation. |
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SECTION 2. Section 65.501, Water Code, is amended to read as |
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follows: |
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Sec. 65.501. ISSUANCE OF BONDS AND NOTES. (a) A [The] |
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district may issue its bonds or notes for the purpose of purchasing, |
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constructing, acquiring, owning, operating, repairing, improving, |
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or extending any district works, improvements, facilities, plants, |
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equipment, and appliances needed to accomplish the purposes listed |
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in Section 65.012 [of this code], including works, improvements, |
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facilities, plants, equipment, and appliances needed to provide a |
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waterworks system, sanitary sewer system, storm sewer system, or |
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solid waste disposal system, or to provide for solid waste |
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collection or fire-fighting services and facilities. |
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(b) Sections 49.181 and 49.182 do not apply to a district. |
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SECTION 3. This Act takes effect September 1, 2025. |