Texas 2019 - 86th Regular

Texas House Bill HB2021 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R9738 GRM-D
2	2	By: Metcalf H.B. No. 2021
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to approval by voters prior to the issuance of revenue
8	8	bonds by river authorities.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. The heading to Subtitle C, Title 9, Government
11	11	Code, is amended to read as follows:
12	12	SUBTITLE C. PROVISIONS APPLICABLE TO SECURITIES ISSUED BY MORE
13	13	THAN ONE TYPE OF LOCAL GOVERNMENT OR ENTITY
14	14	SECTION 2. Subtitle C, Title 9, Government Code, is amended
15	15	by adding Chapter 1253 to read as follows:
16	16	CHAPTER 1253. REVENUE BOND ELECTIONS FOR RIVER AUTHORITIES
17	17	Sec. 1253.001. DEFINITIONS. In this chapter:
18	18	(1) "Electric cooperative" has the meaning assigned by
19	19	Section 11.003, Utilities Code.
20	20	(2) "Municipally owned utility" has the meaning
21	21	assigned by Section 11.003, Utilities Code.
22	22	(3) "Retail electric provider" has the meaning
23	23	assigned by Section 31.002, Utilities Code.
24	24	(4) "Retail public utility" has the meaning assigned
25	25	by Section 13.002, Water Code.
26	26	(5) "Revenue bond" means a public security, as defined
27	27	by Section 1201.002, that is secured wholly by revenue other than ad
28	28	valorem taxes.
29	29	(6) "River authority" means a district created under
30	30	the authority of Section 59, Article XVI, Texas Constitution, as a
31	31	regional water management entity to provide water development and
32	32	planning services and other services to a river basin or portion of
33	33	a river basin.
34	34	Sec. 1253.002. APPLICABILITY. This chapter applies only to
35	35	river authorities.
36	36	Sec. 1253.003. REVENUE BOND ELECTION REQUIRED. (a) A river
37	37	authority may not issue revenue bonds unless the issuance is first
38	38	approved by a majority of voters in the authority's service area
39	39	voting in an election held for that purpose.
40	40	(b) For the purposes of this section, the service area of a
41	41	river authority includes the service area of any electric
42	42	cooperative, municipally owned utility, retail electric provider,
43	43	or retail public utility that has a contract with the river
44	44	authority for the authority to provide electric power or water to
45	45	the cooperative, provider, or utility.
46	46	(c) The Public Utility Commission of Texas shall determine
47	47	the service area of a retail electric provider for the purposes of
48	48	Subsection (b).
49	49	Sec. 1253.004. ORDERING AN ELECTION. (a) The governing
50	50	body of the river authority shall order an election under this
51	51	chapter in accordance with Chapter 3, Election Code.
52	52	(b) For an election under this chapter the governing body
53	53	may order an election that is to be held partly outside of the
54	54	territorial jurisdiction of the authority if necessary to comply
55	55	with Section 1253.003.
56	56	Sec. 1253.005. CONTENTS OF ELECTION ORDER. (a) The
57	57	document ordering an election under this chapter must distinctly
58	58	state:
59	59	(1) the proposition language that will appear on the
60	60	ballot;
61	61	(2) the location of each polling place and the hours
62	62	that the polls will be open;
63	63	(3) the purpose for which the revenue bonds are to be
64	64	authorized;
65	65	(4) the principal amount of the revenue bonds to be
66	66	authorized;
67	67	(5) that revenue sufficient to pay the annual
68	68	principal of and interest on the revenue bonds is anticipated;
69	69	(6) any estimated changes in relevant rates or fees of
70	70	the river authority, and any electric cooperatives, municipally
71	71	owned utilities, retail electric providers, and retail public
72	72	utilities in the service area of the river authority, as
73	73	applicable, if the revenue bonds are authorized and the maximum
74	74	interest rate of the revenue bonds or any series of the revenue
75	75	bonds, based on the market conditions at the time of the election
76	76	order;
77	77	(7) the maximum maturity date of the revenue bonds to
78	78	be authorized or that the revenue bonds may be issued to mature over
79	79	a specified number of years not to exceed 40;
80	80	(8) the aggregate amount of the outstanding principal
81	81	of the river authority's issued revenue bonds as of the beginning of
82	82	the fiscal year in which the election is ordered; and
83	83	(9) the aggregate amount of the outstanding interest
84	84	on the river authority's issued revenue bonds as of the beginning of
85	85	the fiscal year in which the election is ordered.
86	86	Sec. 1253.006. CONTENTS OF PROPOSITION. The proposition
87	87	submitted in the election must distinctly state:
88	88	(1) the purpose for which the revenue bonds are to be
89	89	issued;
90	90	(2) the amount of the revenue bonds;
91	91	(3) the rate of interest on the revenue bonds; and
92	92	(4) the maturity date of the revenue bonds or that the
93	93	revenue bonds may be issued to mature serially over a specified
94	94	number of years not to exceed 40.
95	95	Sec. 1253.007. CONDUCT OF ELECTION. (a) The general
96	96	election laws govern an election held under this chapter except as
97	97	provided by this section.
98	98	(b) A revenue bond election must be held on a uniform
99	99	election date provided by Section 41.001(a), Election Code.
100	100	(c) In addition to any notice required by Section 4.003(c),
101	101	Election Code, notice of a revenue bond election must be given by:
102	102	(1) publishing notice of the election in a newspaper
103	103	of general circulation published in the service area of the river
104	104	authority; and
105	105	(2) publishing notice of the election on the river
106	106	authority's Internet website, prominently and together with the
107	107	election order prescribed by Section 1253.005.
108	108	(d) The notice required by Subsection (c)(1) must be
109	109	published on the same day in each of three successive weeks. The
110	110	first publication must be not less than 21 days before the date of
111	111	the election.
112	112	(e) The governing body of the river authority shall contract
113	113	with the counties of the relevant service area to provide election
114	114	services in a manner prescribed by Subchapter D, Chapter 31,
115	115	Election Code.
116	116	Sec. 1253.008. BALLOT PROPOSITION. At the election, the
117	117	ballots shall be printed to permit voting for or against the
118	118	proposition: "The issuance of bonds."
119	119	Sec. 1253.009. CONFLICT WITH OTHER LAWS. This chapter
120	120	prevails over a conflicting or inconsistent provision of a special
121	121	law that governs a river authority.
122	122	Sec. 1253.010. NO ADDITIONAL AUTHORITY TO ISSUE BONDS.
123	123	This chapter does not provide additional authority for a river
124	124	authority to issue bonds.
125	125	SECTION 3. Chapter 1253, Government Code, as added by this
126	126	Act, applies only to a bond issued on or after the effective date of
127	127	this Act. A bond issued before the effective date of this Act is
128	128	governed by the applicable law in effect before the effective date
129	129	of this Act, and the former law is continued in effect for that
130	130	purpose.
131	131	SECTION 4. This Act takes effect September 1, 2019.