By: Murphy, Israel (Senate Sponsor - Creighton) H.B. No. 1410
(In the Senate - Received from the House April 14, 2021;
April 19, 2021, read first time and referred to Committee on Local
Government; May 21, 2021, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 6, Nays 0;
May 21, 2021, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR H.B. No. 1410 By: Springer
A BILL TO BE ENTITLED
AN ACT
relating to the issuance of bonds by certain conservation and
reclamation districts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 49.4645, Water Code, is amended by
amending Subsection (a) and adding Subsection (a-1) to read as
follows:
(a) A district all or part of which is located in Bastrop
County, Bexar County, Waller County, Travis County, Williamson
County, Harris County, Galveston County, Brazoria County,
Montgomery County, or Fort Bend County may issue bonds supported by
ad valorem taxes to pay for the development and maintenance of
recreational facilities only if the bonds are authorized by a
majority vote of the voters of the district voting in an election
held for that purpose. Except as provided by Subsection (a-1), the
[The] outstanding principal amount of bonds, notes, and other
obligations issued to finance parks and recreational facilities
supported by ad valorem taxes may not exceed an amount equal to one
percent of the value of the taxable property in the district [or, if
supported by contract taxes under Section 49.108, may not exceed an
amount equal to one percent of the value of the taxable property in
the districts making payments under the contract] as shown by the
tax rolls of the central appraisal district at the time of the
issuance of the bonds, notes, and other obligations [or an amount
greater than the estimated cost provided in the park plan under
Subsection (b), whichever is smaller]. To establish the value of
the taxable property in a district under this section, the district
may use an estimate of the value provided by the central appraisal
district. The district may not issue bonds supported by ad valorem
taxes to pay for the development and maintenance of:
(1) indoor or outdoor swimming pools; or
(2) golf courses.
(a-1) The outstanding principal amount of bonds, notes, and
other obligations issued to finance a recreational facility under
Subsection (a) may exceed an amount equal to one percent but not
three percent of the value of the taxable property in the district
or, if supported by contract taxes under Section 49.108, the value
of the taxable property in the districts making payments under the
contract, if the district has:
(1) a ratio of debt to certified assessed valuation of
10 percent or less;
(2) a credit rating that conforms to commission rules;
(3) a credit enhanced rating on the district's
proposed bond issue that conforms to commission rules; or
(4) a contract with a political subdivision or an
entity acting on behalf of a political subdivision under which the
political subdivision or the entity agrees to provide to the
district taxes or other revenues, as consideration for the
district's development or acquisition of the facility, including a
contract under Section 49.108.
SECTION 2. Section 54.016(e), Water Code, is amended to
read as follows:
(e) A city may provide in its written consent to the
inclusion of land in a district, that the district construct all
facilities to serve the land in accordance with plans and
specifications which have been approved by the city. The city may
also provide in its written consent that the city shall have the
right to inspect all facilities being constructed by a district.
The city's consent to the inclusion of land in the district may also
contain restrictions on the terms and provisions of the district's
bonds and notes issued to provide service to the land and conditions
on the sale of the district's bonds and notes if the restrictions
and conditions do not generally render the bonds and notes of
districts in the city's extraterritorial jurisdiction
unmarketable. The city's consent to the inclusion of land in a
district may restrict the purposes for which a district may issue
bonds to [the] purposes authorized by law for the district [of the
purchase, construction, acquisition, repair, extension and
improvement of land, easements, works, improvements, facilities,
plants, equipment and appliances necessary to:
[(1) provide a water supply for municipal uses,
domestic uses and commercial purposes;
[(2) collect, transport, process, dispose of and
control all domestic, industrial or communal wastes whether in
fluid, solid or composite state; and
[(3) gather, conduct, divert and control local storm
water or other local harmful excesses of water in the district and
the payment of organization expenses, operation expenses during
construction and interest during construction].
SECTION 3. The change in law made by this Act to Section
54.016(e), Water Code, does not affect the terms of a city's
resolution or ordinance adopted before the effective date of this
Act that constitutes a valid, written consent under Section 54.016
of that code for land that was included in a district prior to the
effective date of this Act.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2021.
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