Texas 2023 - 88th Regular

Texas House Bill HB2436 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	88R27581 ANG-F
2	2	By: Frazier H.B. No. 2436
3	3	Substitute the following for H.B. No. 2436:
4	4	By: Capriglione C.S.H.B. No. 2436
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the sale of bonds by certain special purpose districts.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 49.183, Water Code, is amended by
12	12	amending Subsections (a), (b), and (e) and adding Subsections
13	13	(a-1), (a-2), (f), (g), (h), and (i) to read as follows:
14	14	(a) Bonds [Except for refunding bonds, or bonds sold to a
15	15	state or federal agency or to the North American Development Bank,
16	16	bonds] issued by a district shall be sold either by:
17	17	(1) private sale; or
18	18	(2) public sale after advertising for and receiving
19	19	competitive sealed bids.
20	20	(a-1) Bonds sold by public sale [and] shall be awarded to
21	21	the bidder whose bid produces the lowest net effective interest
22	22	rate to the district.
23	23	(a-2) Before the private sale of bonds issued by a district,
24	24	the board shall consult with the district's financial advisor to
25	25	determine whether the private sale will result in a net effective
26	26	interest rate for the district equal to or less than the projected
27	27	lowest net effective interest rate for the district if the bonds had
28	28	been sold by public sale.
29	29	(b) Before [Except for refunding bonds, or bonds sold to a
30	30	state or federal agency or to the North American Development Bank,
31	31	before] any bonds are sold by a district by public sale, the board
32	32	shall publish an appropriate notice of the sale:
33	33	(1) at least one time not less than 10 days before the
34	34	date of sale in a newspaper of general circulation in the county or
35	35	counties in which the district is located; and
36	36	(2) at least one time in one or more recognized
37	37	financial publications of general circulation in the state as
38	38	approved by the state attorney general.
39	39	(e) Subsections (a), (a-1), and (b) do not apply to district
40	40	bonds issued pursuant to Chapter 1371, Government Code.
41	41	(f) For bonds sold by private sale, the district may:
42	42	(1) authorize:
43	43	(A) the principal amount of bonds that may be
44	44	issued;
45	45	(B) the principal amount to mature each year;
46	46	(C) the maximum rate of interest to be borne by
47	47	the bonds; and
48	48	(D) any other term the district considers
49	49	relevant to the issuance of the bonds; and
50	50	(2) delegate to any officer or director of the
51	51	district the authority to carry out the sale of the bonds.
52	52	(g) In exercising the authority delegated by the district
53	53	under Subsection (f), the district may establish the terms related
54	54	to the issuance and sale of the bonds, including:
55	55	(1) the form of the bonds;
56	56	(2) the principal amount of the bonds and the amount of
57	57	the bonds to mature each year;
58	58	(3) the dates, price, interest rates, interest payment
59	59	dates, principal payment dates, and redemption feature of the
60	60	bonds; and
61	61	(4) any other term relating to the issuance and sale of
62	62	the bonds as specified by the district in the proceedings
63	63	authorizing the issuance of the bonds.
64	64	(h) At the time a district enters into a bond purchase
65	65	agreement for the private sale of bonds issued by the district, the
66	66	board, or the board's authorized representative, and the district's
67	67	financial advisor shall review recently completed sales of bonds
68	68	issued by districts, including the net effective interest rate and
69	69	issuance costs for the sale of the bonds, to determine whether the
70	70	district will receive a fair market price for the private sale of
71	71	bonds issued by the district under the bond purchase agreement.
72	72	(i) A finding or determination made by a director or officer
73	73	acting under the authority delegated to that director or officer
74	74	has the same force and effect as a finding or determination made by
75	75	the district.
76	76	SECTION 2. Section 49.183, Water Code, as amended by this
77	77	Act, applies only to the sale of bonds by a special purpose district
78	78	on or after the effective date of this Act. The sale of bonds by a
79	79	special purpose district before the effective date of this Act is
80	80	governed by the law in effect when bonds were sold, and the former
81	81	law is continued in effect for that purpose.
82	82	SECTION 3. This Act takes effect immediately if it receives
83	83	a vote of two-thirds of all the members elected to each house, as
84	84	provided by Section 39, Article III, Texas Constitution. If this
85	85	Act does not receive the vote necessary for immediate effect, this
86	86	Act takes effect September 1, 2023.