87R20030 E
By: Burrows, Bonnen, Middleton, et al. H.B. No. 1869
Substitute the following for H.B. No. 1869:
By: Sanford C.S.H.B. No. 1869
A BILL TO BE ENTITLED
AN ACT
relating to the definition of debt for the purposes of calculating
certain ad valorem tax rates of a taxing unit.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 26.012, Tax Code, is amended by amending
Subdivision (7) and adding Subdivisions (9), (18-a), and (18-b) to
read as follows:
(7) "Debt" means:
(A) a bond, warrant, certificate of obligation,
or other evidence of indebtedness owed by a taxing unit that:
(i) is payable [solely] from property taxes
in installments over a period of more than one year, not budgeted
for payment from maintenance and operations funds, and secured by a
pledge of property taxes; and
(ii) meets one of the following
requirements:
(a) has been approved at an election;
(b) includes self-supporting debt;
(c) evidences a loan under a state or
federal financial assistance program;
(d) is issued for designated
infrastructure;
(e) is a refunding bond; or
(f) is issued in response to an
emergency under Section 1431.015, Government Code;[,] or
(B) a payment made under contract to secure
indebtedness of a similar nature issued by another political
subdivision on behalf of the taxing unit.
(9) "Designated infrastructure" means infrastructure,
including a facility or equipment, for the following purposes:
(A) streets, roads, or highways;
(B) telecommunications;
(C) cyber security; or
(D) as part of any utility system, water supply
project, water plant, wastewater plant, water and wastewater
distribution or conveyance facility, wharf, dock, or flood control,
and drainage project.
(18-a) "Refunding bond" means a bond or other
obligation issued for refunding or refinancing purposes under
Chapter 1207 or 1371, Government Code.
(18-b) "Self-supporting debt" means the portion of a
bond, warrant, certificate of obligation, or other evidence of
indebtedness described by Subdivision (7)(A)(i) designated by the
governing body of a political subdivision as being repaid from a
source other than property taxes.
SECTION 2. The changes in law made by this Act apply only to
a bond, warrant, certificate of obligation, or other evidence of
indebtedness for which the ordinance, order, or resolution
authorizing issuance was adopted by the governing body of the
taxing unit on or after the effective date of this Act.
SECTION 3. This Act takes effect September 1, 2021.