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A BILL TO BE ENTITLED
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AN ACT
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relating to the issuance of obligations by certain water districts |
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bordering certain counties during a disaster declaration. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 49.153, Water Code, is amended by |
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amending Subsections (c) and (e), and adding subsections (f), (g) |
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and (h) to read as follows: |
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(c) Except as provided by Subsection (e) and (f), a district |
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may not execute a note for a term longer than three years unless the |
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commission issues an order approving the note. |
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(d) This section does not apply to special water |
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authorities. |
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(e) Subsection (c) does not apply to: |
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(1) a note issued to and approved by: |
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(A) the Farmers Home Administration; |
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(B) the United States Department of Agriculture; |
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(C) the Texas Water Development Board; |
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(D) the North American Development Bank; or |
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(E) a federally chartered instrumentality of the |
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United States authorized under 12 U.S.C. Section 2128(f) to provide |
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financing for water and waste disposal facilities, provided that |
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the district that executes the note is located wholly in a county |
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that: |
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(i) does not contain a municipality that |
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has a population of more than 750,000; and |
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(ii) is not adjacent to a county described |
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by Subparagraph (i); or |
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(2) a district described by Section 49.181(h).; or |
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(3) districts whose territory is located wholly within |
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first tier coastal counties, as defined by Section 2210.003, |
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Insurance Code, subject to the requirements of Subsection (f). |
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(f) Notwithstanding any other law or limitations provided |
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in this Section, a district described in subsection (e)(3) may |
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issue notes during or prior to a disaster pursuant to the terms of a |
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note authorization provided that a certified copy of the note |
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authorization and all proceedings related to the issuance of notes |
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have been sent to the attorney general for approval in accordance |
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with Section 49.184. If a disaster declaration is made, a district |
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described in subsection (e)(3) may issue notes pursuant to this |
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Section beginning on the date of the disaster declaration and |
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continuing for the duration specified in the note authorization or |
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until the disaster declaration expires, whichever is later. Any |
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notes issued pursuant to this Section shall be incontestable in any |
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court or other forum, for any reason, and shall be valid and binding |
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obligations in accordance with their terms for all purposes. |
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(g) For purposes of this Section, the term note shall |
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include commercial paper notes if the terms of such notes meet the |
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requirements of Section 2256.013(1), Government Code. |
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(h) For purposes of this Section "disaster declaration" |
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means declaration of a state of disaster or emergency made by the |
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president of the United States for the state or any portion of the |
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district's territory, or a declaration of a state of disaster is |
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made pursuant to Chapter 418, Government Code, for the entire state |
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or any portion of the district's territory, and any amendment, |
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modification, or extension of the declaration. |
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SECTION 3. Section 49.154, Water Code, is amended by |
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amending Subsection (d) to read as follows: |
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(d) Except for instances in which a disaster declaration as |
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described by 49.153(h) is in effect,Ddistricts required to seek |
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commission approval of bonds must have an application for such |
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approval on file with the commission prior to the issuance of bond |
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anticipation notes or tax anticipation notes. If a disaster |
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declaration is made, a district described in 49.153(e)(3) may issue |
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bond anticipation notes or tax anticipation notes as described by |
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subsection (b) beginning on the date of the disaster declaration |
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and continuing for the duration of the disaster declaration. |
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SECTION 4. Section 49.181, Water Code, is amended by |
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amending Subsection (h) to read as follows: |
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(h) This section does not apply to: |
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(1) a district if: |
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(A) the district's boundaries include one entire |
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county; |
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(B) the district was created by a special Act of |
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the legislature and: |
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(i) the district is located entirely within |
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one county; |
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(ii) the district is located entirely |
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within one or more home-rule municipalities; |
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(iii) the total taxable value of the real |
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property and improvements to the real property zoned by one or more |
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home-rule municipalities for residential purposes and located |
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within the district does not exceed 25 percent of the total taxable |
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value of all taxable property in the district, as shown by the most |
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recent certified appraisal tax roll prepared by the appraisal |
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district for the county; and |
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(iv) the district was not required by law to |
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obtain commission approval of its bonds before the effective date |
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of this section; |
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(C) the district is a special water authority; |
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(D) the district is governed by a board of |
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directors appointed in whole or in part by the governor, a state |
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agency, or the governing body or chief elected official of a |
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municipality or county and does not provide, or propose to provide, |
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water, sewer, drainage, reclamation, or flood control services to |
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residential retail or commercial customers as its principal |
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function; |
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(E) the district on September 1, 2003: |
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(i) is a municipal utility district that |
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includes territory in only two counties; |
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(ii) has outstanding long-term |
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indebtedness that is rated BBB or better by a nationally recognized |
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rating agency for municipal securities; and |
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(iii) has at least 5,000 active water |
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connections; or |
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(F) the district: |
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(i) is a conservation and reclamation |
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district created under Section 59, Article XVI, Texas Constitution, |
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that includes territory in at least three counties; and |
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(ii) has the rights, powers, privileges, |
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and functions applicable to a river authority under Chapter 30; or |
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(G) the district is a district described by |
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49.153(e)(3) if: |
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(i) a declaration of a state of disaster or |
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emergency, and any amendment, modification, or extension of said |
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declaration, made by the president of the United States for the |
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state or any portion of the district's territory, is in effect; or |
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(ii) a declaration of a state of disaster, |
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and any amendment, modification, or extension of said declaration, |
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made pursuant to Chapter 418, Government Code, for the entire state |
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or any portion of the district's territory, is in effect. |
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(2) a public utility agency created under Chapter 572, |
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Local Government Code, any of the public entities participating in |
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which are districts if at least one of those districts is a district |
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described by Subdivision (1)(E). |
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SECTION 5. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the necessary vote, this Act takes effect |
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September 1, 2025. |