Texas 2023 - 88th Regular

Texas House Bill HB2911 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	88R3147 MP-D
2	2	By: Metcalf H.B. No. 2911
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to approval by voters prior to the issuance of revenue
8	8	bonds by the San Jacinto River Authority.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Sections 10 and 10b, Chapter 426, Acts of the
11	11	45th Legislature, Regular Session, 1937, are amended to read as
12	12	follows:
13	13	Sec. 10. The [San Jacinto River Conservation and
14	14	Reclamation] District shall not be authorized to issue bonds
15	15	payable from ad valorem taxes nor to incur any form of continuing
16	16	obligations or indebtedness for purposes of effecting improvements
17	17	comprehended in the plan of organization and administration of the
18	18	District, nor incur any indebtedness in the form of a continuing
19	19	charge upon land or properties within the District, unless such
20	20	proposition shall have been submitted to the qualified property
21	21	taxpaying voters of the District, or, in appropriate case, such
22	22	voters of a defined area or political subdivision within the
23	23	District, and approved by a majority of such electors voting
24	24	thereon.
25	25	Section 10b. The Authority shall have the authority and is
26	26	hereby authorized to issue from time to time its negotiable revenue
27	27	bonds for the purpose of making investigations and assembling data;
28	28	for the purposes of purchasing, acquiring, and/or condemning lands,
29	29	easements, rights-of-way and other properties; and for the purpose
30	30	of constructing, repairing, improving and extending any
31	31	structures, dams, reservoirs, transmission facilities, water
32	32	treatment, water supply, sewage and other waste gathering,
33	33	transmission, treatment and disposal facilities, for developing
34	34	park and recreation facilities; and for the purposes of acquiring,
35	35	constructing, improving, repairing and extending any other
36	36	properties and facilities deemed appropriate by the Board of
37	37	Directors of the Authority in the exercise of powers granted the
38	38	Authority in Section 3 and elsewhere in this Act. Any one or more or
39	39	a combination of the foregoing purposes may be combined into a
40	40	single issue of bonds. Such bonds shall be issued in accordance
41	41	with, and may be secured by and payable from any or all the revenues
42	42	of the Authority permitted by, Section 10c hereof, including, but
43	43	not limited to, the proceeds of any one or more contracts between
44	44	the Authority and any persons, firms, corporations, cities and
45	45	political subdivisions. Revenue bonds issued under this section
46	46	must be approved in an election as described by Sections 11A, 11B,
47	47	11C, 11D, 11E, 11F, and 11G of this Act.
48	48	If and when the Legislature remits the ad valorem tax in the
49	49	counties for a certain period of years, the Directors may in their
50	50	discretion if necessary with approval of the Commissioners Court of
51	51	the county in the watershed use part or all of the taxes remitted to
52	52	said counties for the purpose of paying back to the United States of
53	53	America or any of its agencies or others the money borrowed by the
54	54	Authority for the purposes herein mentioned.
55	55	SECTION 2. Chapter 426, Acts of the 45th Legislature,
56	56	Regular Session, 1937, is amended by adding Sections 11A, 11B, 11C,
57	57	11D, 11E, 11F, and 11G to read as follows:
58	58	Sec. 11A. DEFINITIONS. In this Act:
59	59	(1) "Electric cooperative" has the meaning assigned by
60	60	Section 11.003, Utilities Code.
61	61	(2) "Municipally owned utility" has the meaning
62	62	assigned by Section 11.003, Utilities Code.
63	63	(3) "Retail electric provider" has the meaning
64	64	assigned by Section 31.002, Utilities Code.
65	65	(4) "Retail public utility" has the meaning assigned
66	66	by Section 13.002, Water Code.
67	67	(5) "Revenue bond" means a public security, as defined
68	68	by Section 1201.002, Government Code, that is secured wholly by
69	69	revenue other than ad valorem taxes.
70	70	Sec. 11B. REVENUE BOND ELECTION REQUIRED. (a) The District
71	71	may not issue revenue bonds unless the issuance is first approved by
72	72	a majority of voters in the service area of the District voting in a
73	73	revenue bond election held for that purpose.
74	74	(b) For the purposes of this section, the service area of
75	75	the District includes the service area of any electric cooperative,
76	76	municipally owned utility, retail electric provider, or retail
77	77	public utility that has a contract with the District for the
78	78	authority to provide electric power or water to the cooperative,
79	79	provider, or utility.
80	80	(c) The Public Utility Commission of Texas shall determine
81	81	the service area of a retail electric provider for the purposes of
82	82	Subsection (b) of this section.
83	83	Sec. 11C. ORDERING REVENUE BOND ELECTION. (a) The District
84	84	shall order a revenue bond election in accordance with Chapter 3,
85	85	Election Code.
86	86	(b) For a revenue bond election, the District may order an
87	87	election that is to be held partly outside of the territory of the
88	88	District if necessary to comply with Section 11B of this Act.
89	89	Sec. 11D. CONTENTS OF REVENUE BOND ELECTION ORDER. The
90	90	revenue bond election order must distinctly state:
91	91	(1) the proposition language that will appear on the
92	92	ballot;
93	93	(2) the location of each polling place and the hours
94	94	that the polls will be open;
95	95	(3) the purpose for which the revenue bonds are to be
96	96	authorized;
97	97	(4) the principal amount of the revenue bonds to be
98	98	authorized;
99	99	(5) that revenue sufficient to pay the annual
100	100	principal of and interest on the revenue bonds is anticipated;
101	101	(6) any estimated changes in relevant rates or fees of
102	102	the District, and any electric cooperatives, municipally owned
103	103	utilities, retail electric providers, and retail public utilities
104	104	in the service area of the District, as applicable, if the revenue
105	105	bonds are authorized and the maximum interest rate of the revenue
106	106	bonds or any series of the revenue bonds, based on the market
107	107	conditions at the time of the election order;
108	108	(7) the maximum maturity date of the revenue bonds to
109	109	be authorized or that the revenue bonds may be issued to mature over
110	110	a specified number of years not to exceed 40;
111	111	(8) the aggregate amount of the outstanding principal
112	112	of the District's issued revenue bonds as of the beginning of the
113	113	fiscal year in which the election is ordered; and
114	114	(9) the aggregate amount of the outstanding interest
115	115	on the District's issued revenue bonds as of the beginning of the
116	116	fiscal year in which the election is ordered.
117	117	Sec. 11E. CONTENTS OF PROPOSITION. The proposition
118	118	submitted in the revenue bond election must distinctly state:
119	119	(1) the purpose for which the revenue bonds are to be
120	120	issued;
121	121	(2) the amount of the revenue bonds;
122	122	(3) the rate of interest on the revenue bonds; and
123	123	(4) the maturity date of the revenue bonds or that the
124	124	revenue bonds may be issued to mature serially over a specified
125	125	number of years not to exceed 40.
126	126	Sec. 11F. CONDUCT OF REVENUE BOND ELECTION. (a) The
127	127	general election laws govern a revenue bond election except as
128	128	provided by this section.
129	129	(b) A revenue bond election must be held on a uniform
130	130	election date provided by Section 41.001(a), Election Code.
131	131	(c) In addition to any notice required by Section 4.003(c),
132	132	Election Code, notice of a revenue bond election must be given by:
133	133	(1) publishing notice of the election in a newspaper
134	134	of general circulation published in the service area of the
135	135	District; and
136	136	(2) publishing notice of the election on the
137	137	District's Internet website, prominently and together with the
138	138	election order prescribed by Section 11D of this Act.
139	139	(d) The notice required by Subsection (c)(1) of this section
140	140	must be published on the same day in each of three successive weeks.
141	141	The first publication must be not less than 21 days before the date
142	142	of the revenue bond election.
143	143	(e) The District shall contract with the counties of the
144	144	relevant service area to provide election services in a manner
145	145	prescribed by Subchapter D, Chapter 31, Election Code.
146	146	Sec. 11G. BALLOT PROPOSITION. At a revenue bond election,
147	147	the ballots shall be printed to permit voting for or against the
148	148	proposition: "The issuance of bonds."
149	149	SECTION 3. Sections 11A, 11B, 11C, 11D, 11E, 11F, and 11G,
150	150	Chapter 426, Acts of the 45th Legislature, Regular Session, 1937,
151	151	as added by this Act, apply only to a revenue bond issued on or after
152	152	the effective date of this Act. A revenue bond issued before the
153	153	effective date of this Act is governed by the applicable law in
154	154	effect before the effective date of this Act, and the former law is
155	155	continued in effect for that purpose.
156	156	SECTION 4. (a) The legal notice of the intention to
157	157	introduce this Act, setting forth the general substance of this
158	158	Act, has been published as provided by law, and the notice and a
159	159	copy of this Act have been furnished to all persons, agencies,
160	160	officials, or entities to which they are required to be furnished
161	161	under Section 59, Article XVI, Texas Constitution, and Chapter 313,
162	162	Government Code.
163	163	(b) The governor, one of the required recipients, has
164	164	submitted the notice and Act to the Texas Commission on
165	165	Environmental Quality.
166	166	(c) The Texas Commission on Environmental Quality has filed
167	167	its recommendations relating to this Act with the governor,
168	168	lieutenant governor, and speaker of the house of representatives
169	169	within the required time.
170	170	(d) All requirements of the constitution and laws of this
171	171	state and the rules and procedures of the legislature with respect
172	172	to the notice, introduction, and passage of this Act have been
173	173	fulfilled and accomplished.
174	174	SECTION 5. This Act takes effect September 1, 2023.