Texas 2021 - 87th Regular

Texas House Bill HB1889 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	87R7094 SLB-F
1	2		By: Rodriguez H.B. No. 1889
2		-	Substitute the following for H.B. No. 1889:
3		-	By: Vo C.S.H.B. No. 1889
4	3
5	4
6	5		A BILL TO BE ENTITLED
7	6		AN ACT
8	7		relating to the sale of bonds by certain special purpose districts.
9	8		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	9		SECTION 1. Section 49.183, Water Code, is amended by
11	10		amending Subsections (a), (b), and (e) and adding Subsections
12	11		(a-1), (f), (g), (h), and (i) to read as follows:
13	12		(a) Bonds [Except for refunding bonds, or bonds sold to a
14	13		state or federal agency or to the North American Development Bank,
15	14		bonds] issued by a district shall be sold either by:
16	15		(1) private sale; or
17	16		(2) public sale after advertising for and receiving
18	17		competitive sealed bids.
19	18		(a-1) Bonds sold by public sale [and] shall be awarded to
20	19		the bidder whose bid produces the lowest net effective interest
21	20		rate to the district.
22	21		(b) Before [Except for refunding bonds, or bonds sold to a
23	22		state or federal agency or to the North American Development Bank,
24	23		before] any bonds are sold by a district by public sale, the board
25	24		shall publish an appropriate notice of the sale:
26	25		(1) at least one time not less than 10 days before the
27	26		date of sale in a newspaper of general circulation in the county or
28	27		counties in which the district is located; and
29	28		(2) at least one time in one or more recognized
30	29		financial publications of general circulation in the state as
31	30		approved by the state attorney general.
32	31		(e) Subsections (a), (a-1), and (b) do not apply to district
33	32		bonds issued pursuant to Chapter 1371, Government Code.
34	33		(f) For bonds sold by private sale, the district may:
35	34		(1) authorize:
36	35		(A) the principal amount of bonds that may be
37	36		issued;
38	37		(B) the principal amount to mature each year;
39	38		(C) the maximum rate of interest to be borne by
40	39		the bonds; and
41	40		(D) any other term the district considers
42	41		relevant to the issuance of the bonds; and
43	42		(2) delegate to any officer or director of the
44	43		district the authority to carry out the sale of the bonds.
45	44		(g) In exercising the authority delegated by the district
46	45		under Subsection (f), the district may establish the terms related
47	46		to the issuance and sale of the bonds, including:
48	47		(1) the form of the bonds;
49	48		(2) the principal amount of the bonds and the amount of
50	49		the bonds to mature each year;
51	50		(3) the dates, price, interest rates, interest payment
52	51		dates, principal payment dates, and redemption feature of the
53	52		bonds; and
54	53		(4) any other term relating to the issuance and sale of
55	54		the bonds as specified by the district in the proceedings
56	55		authorizing the issuance of the bonds.
57	56		(h) A finding or determination made by a director or officer
58	57		acting under the authority delegated to that director or officer
59	58		has the same force and effect as a finding or determination made by
60	59		the district.
	60	+	(i) A district's bonds are negotiable instruments within
	61	+	the meaning and purposes of the Business & Commerce Code. A
	62	+	district's bonds may be issued and bear interest in accordance with
	63	+	Chapters 1201, 1204, and 1371, Government Code, and Subchapters A
	64	+	through C, Chapter 1207, Government Code. Except for this
	65	+	subsection, this section does not apply to a special water
	66	+	authority or district described by Section 49.181(h)(1)(D).
61	67		SECTION 2. Section 49.183(c), Water Code, is repealed.
62	68		SECTION 3. Section 49.183, Water Code, as amended by this
63	69		Act, applies only to the sale of bonds by a special purpose district
64	70		on or after the effective date of this Act. The sale of bonds by a
65	71		special purpose district before the effective date of this Act is
66	72		governed by the law in effect when bonds were sold, and the former
67	73		law is continued in effect for that purpose.
68	74		SECTION 4. This Act takes effect immediately if it receives
69	75		a vote of two-thirds of all the members elected to each house, as
70	76		provided by Section 39, Article III, Texas Constitution. If this
71	77		Act does not receive the vote necessary for immediate effect, this
72	78		Act takes effect September 1, 2021.