86R9738 GRM-D
By: Metcalf H.B. No. 2021
A BILL TO BE ENTITLED
AN ACT
relating to approval by voters prior to the issuance of revenue
bonds by river authorities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Subtitle C, Title 9, Government
Code, is amended to read as follows:
SUBTITLE C. PROVISIONS APPLICABLE TO SECURITIES ISSUED BY MORE
THAN ONE TYPE OF LOCAL GOVERNMENT OR ENTITY
SECTION 2. Subtitle C, Title 9, Government Code, is amended
by adding Chapter 1253 to read as follows:
CHAPTER 1253. REVENUE BOND ELECTIONS FOR RIVER AUTHORITIES
Sec. 1253.001. DEFINITIONS. In this chapter:
(1) "Electric cooperative" has the meaning assigned by
Section 11.003, Utilities Code.
(2) "Municipally owned utility" has the meaning
assigned by Section 11.003, Utilities Code.
(3) "Retail electric provider" has the meaning
assigned by Section 31.002, Utilities Code.
(4) "Retail public utility" has the meaning assigned
by Section 13.002, Water Code.
(5) "Revenue bond" means a public security, as defined
by Section 1201.002, that is secured wholly by revenue other than ad
valorem taxes.
(6) "River authority" means a district created under
the authority of Section 59, Article XVI, Texas Constitution, as a
regional water management entity to provide water development and
planning services and other services to a river basin or portion of
a river basin.
Sec. 1253.002. APPLICABILITY. This chapter applies only to
river authorities.
Sec. 1253.003. REVENUE BOND ELECTION REQUIRED. (a) A river
authority may not issue revenue bonds unless the issuance is first
approved by a majority of voters in the authority's service area
voting in an election held for that purpose.
(b) For the purposes of this section, the service area of a
river authority includes the service area of any electric
cooperative, municipally owned utility, retail electric provider,
or retail public utility that has a contract with the river
authority for the authority to provide electric power or water to
the cooperative, provider, or utility.
(c) The Public Utility Commission of Texas shall determine
the service area of a retail electric provider for the purposes of
Subsection (b).
Sec. 1253.004. ORDERING AN ELECTION. (a) The governing
body of the river authority shall order an election under this
chapter in accordance with Chapter 3, Election Code.
(b) For an election under this chapter the governing body
may order an election that is to be held partly outside of the
territorial jurisdiction of the authority if necessary to comply
with Section 1253.003.
Sec. 1253.005. CONTENTS OF ELECTION ORDER. (a) The
document ordering an election under this chapter must distinctly
state:
(1) the proposition language that will appear on the
ballot;
(2) the location of each polling place and the hours
that the polls will be open;
(3) the purpose for which the revenue bonds are to be
authorized;
(4) the principal amount of the revenue bonds to be
authorized;
(5) that revenue sufficient to pay the annual
principal of and interest on the revenue bonds is anticipated;
(6) any estimated changes in relevant rates or fees of
the river authority, and any electric cooperatives, municipally
owned utilities, retail electric providers, and retail public
utilities in the service area of the river authority, as
applicable, if the revenue bonds are authorized and the maximum
interest rate of the revenue bonds or any series of the revenue
bonds, based on the market conditions at the time of the election
order;
(7) the maximum maturity date of the revenue bonds to
be authorized or that the revenue bonds may be issued to mature over
a specified number of years not to exceed 40;
(8) the aggregate amount of the outstanding principal
of the river authority's issued revenue bonds as of the beginning of
the fiscal year in which the election is ordered; and
(9) the aggregate amount of the outstanding interest
on the river authority's issued revenue bonds as of the beginning of
the fiscal year in which the election is ordered.
Sec. 1253.006. CONTENTS OF PROPOSITION. The proposition
submitted in the election must distinctly state:
(1) the purpose for which the revenue bonds are to be
issued;
(2) the amount of the revenue bonds;
(3) the rate of interest on the revenue bonds; and
(4) the maturity date of the revenue bonds or that the
revenue bonds may be issued to mature serially over a specified
number of years not to exceed 40.
Sec. 1253.007. CONDUCT OF ELECTION. (a) The general
election laws govern an election held under this chapter except as
provided by this section.
(b) A revenue bond election must be held on a uniform
election date provided by Section 41.001(a), Election Code.
(c) In addition to any notice required by Section 4.003(c),
Election Code, notice of a revenue bond election must be given by:
(1) publishing notice of the election in a newspaper
of general circulation published in the service area of the river
authority; and
(2) publishing notice of the election on the river
authority's Internet website, prominently and together with the
election order prescribed by Section 1253.005.
(d) The notice required by Subsection (c)(1) must be
published on the same day in each of three successive weeks. The
first publication must be not less than 21 days before the date of
the election.
(e) The governing body of the river authority shall contract
with the counties of the relevant service area to provide election
services in a manner prescribed by Subchapter D, Chapter 31,
Election Code.
Sec. 1253.008. BALLOT PROPOSITION. At the election, the
ballots shall be printed to permit voting for or against the
proposition: "The issuance of bonds."
Sec. 1253.009. CONFLICT WITH OTHER LAWS. This chapter
prevails over a conflicting or inconsistent provision of a special
law that governs a river authority.
Sec. 1253.010. NO ADDITIONAL AUTHORITY TO ISSUE BONDS.
This chapter does not provide additional authority for a river
authority to issue bonds.
SECTION 3. Chapter 1253, Government Code, as added by this
Act, applies only to a bond issued on or after the effective date of
this Act. A bond issued before the effective date of this Act is
governed by the applicable law in effect before the effective date
of this Act, and the former law is continued in effect for that
purpose.
SECTION 4. This Act takes effect September 1, 2019.