| 1 | 1 | | 88R8264 ANG-D |
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| 2 | 2 | | By: Holland H.B. No. 2784 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the issuance of certain bonds by municipal utility |
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| 8 | 8 | | districts. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 54.505, Water Code, is amended to read as |
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| 11 | 11 | | follows: |
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| 12 | 12 | | Sec. 54.505. ELECTION ON TAX BONDS. Bonds payable solely |
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| 13 | 13 | | from revenues may be issued by resolution or order of the board |
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| 14 | 14 | | without an election. Except as provided by Section 54.514(h), |
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| 15 | 15 | | bonds [, but no bonds, except refunding bonds,] payable wholly or |
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| 16 | 16 | | partly [partially] from ad valorem taxes may [shall] be issued only |
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| 17 | 17 | | if the bonds are approved by a two-thirds [until authorized by a |
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| 18 | 18 | | majority] vote of the resident electors of the district voting in an |
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| 19 | 19 | | election called and held for that purpose. An election is not |
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| 20 | 20 | | required to pledge revenues to the payment of bonds. |
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| 21 | 21 | | SECTION 2. Section 54.514, Water Code, is amended by adding |
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| 22 | 22 | | Subsection (h) to read as follows: |
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| 23 | 23 | | (h) Refunding bonds payable wholly or partly from ad valorem |
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| 24 | 24 | | taxes may be issued without an election under Section 54.505 only if |
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| 25 | 25 | | the district reduces the rate of ad valorem tax on all taxable |
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| 26 | 26 | | property within the district by an amount that would offset the |
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| 27 | 27 | | amount saved by refinancing the bonds. |
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| 28 | 28 | | SECTION 3. Subchapter F, Chapter 54, Water Code, is amended |
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| 29 | 29 | | by adding Section 54.523 to read as follows: |
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| 30 | 30 | | Sec. 54.523. PROHIBITION ON ISSUING CERTAIN BONDS. A |
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| 31 | 31 | | district may not issue any bonds payable wholly or partly from ad |
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| 32 | 32 | | valorem taxes if the district has outstanding bonds that are |
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| 33 | 33 | | payable wholly or partly from ad valorem taxes. |
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| 34 | 34 | | SECTION 4. This Act takes effect September 1, 2023. |
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