By: Burrows, et al. (Senate Sponsor - Bettencourt) H.B. No. 1869
(In the Senate - Received from the House May 6, 2021;
May 10, 2021, read first time and referred to Committee on Local
Government; May 22, 2021, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 5, Nays 2;
May 22, 2021, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR H.B. No. 1869 By: Bettencourt
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;
(f) is issued in response to an
emergency under Section 1431.015, Government Code;
(g) is issued for renovating,
improving, or equipping existing buildings or facilities;
(h) is issued for vehicles or
equipment; or
(i) is issued for a project under
Chapter 311, Tax Code, or Chapter 222, Transportation Code, that is
located in a reinvestment zone created under one of those
chapters;[,] 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, equipment, rights-of-way, or land, for the
following purposes:
(A) streets, roads, highways, bridges,
sidewalks, parks, landfills, or airports;
(B) telecommunications, wireless
communications, information technology systems, applications,
hardware, or software;
(C) cybersecurity;
(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;
(E) as part of any school district;
(F) as part of any hospital district created by
general or special law that includes a teaching hospital; or
(G) police stations, fire stations, or other
public safety facilities, jails, juvenile detention facilities, or
judicial facilities.
(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.
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