Texas 2023 - 88th Regular

Texas House Bill HB3002 Compare Versions

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1	1	88R9983 KBB-F
2	2	By: Goldman H.B. No. 3002
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the authority of certain political subdivisions to
8	8	issue certificates of obligation.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 791.023, Government Code, is amended to
11	11	read as follows:
12	12	Sec. 791.023. CONTRACTS FOR STATE CRIMINAL JUSTICE
13	13	FACILITIES. The state or an agency of the state may contract with
14	14	one or more entities to finance, construct, operate, maintain, or
15	15	manage a criminal justice facility provided, in the exercise of the
16	16	governmental power, for the benefit of the state in accordance with
17	17	this chapter and:
18	18	(1) Subchapter A, Chapter 494, Government Code; or
19	19	(2) Subchapter D, Chapter 361, Local Government Code[;
20	20	or
21	21	[(3) the Certificate of Obligation Act of 1971
22	22	(Subchapter C, Chapter 271, Local Government Code)].
23	23	SECTION 2. Section 791.034(b), Government Code, is amended
24	24	to read as follows:
25	25	(b) The municipality may expend municipal funds and may
26	26	issue [certificates of obligation or] bonds to pay for expenses
27	27	associated with a relief highway route under Subsection (a).
28	28	SECTION 3. Section 1202.001(3), Government Code, is amended
29	29	to read as follows:
30	30	(3) "Public security" means an instrument, including a
31	31	bond, note, [certificate of obligation,] certificate of
32	32	participation or other instrument evidencing a proportionate
33	33	interest in payments due to be paid by an issuer, or other type of
34	34	obligation that:
35	35	(A) is issued or incurred by an issuer under the
36	36	issuer's borrowing power, without regard to whether it is subject
37	37	to annual appropriation; and
38	38	(B) is represented by an instrument issued in
39	39	bearer or registered form or is not represented by an instrument but
40	40	the transfer of which is registered on books maintained for that
41	41	purpose by or on behalf of the issuer.
42	42	SECTION 4. Section 1202.007(a), Government Code, is amended
43	43	to read as follows:
44	44	(a) The following are exempt from the approval and
45	45	registration requirements of this chapter:
46	46	(1) a public security that is:
47	47	(A) not subject to mandatory renewal or renewal
48	48	at the option of any person, including the issuer, a holder, or a
49	49	bearer; and
50	50	(B) payable only out of:
51	51	(i) current revenues or taxes collected in
52	52	the year the public security is issued; or
53	53	(ii) the proceeds of other public
54	54	securities;
55	55	(2) a certificate in evidence of benefit assessments;
56	56	(3) [a certificate of obligation, including a claim or
57	57	account that represents an undivided interest in a certificate of
58	58	obligation, that under Subchapter C, Chapter 271, Local Government
59	59	Code, an issuer is authorized to deliver to a contractor;
60	60	[(4)] a time warrant issued under Chapter 252 or 262,
61	61	Local Government Code;
62	62	(4) [(5)] a public security authorized by Chapter
63	63	1371;
64	64	(5) [(6)] a lease, lease-purchase, or installment
65	65	sale obligation, except as provided by other law;
66	66	(6) [(7)] a public security that by rule the attorney
67	67	general exempts because it is not practical to require approval
68	68	before the public security's issuance; and
69	69	(7) [(8)] a nonnegotiable note issued under Section
70	70	45.108, Education Code, in a principal amount that does not exceed
71	71	$1 million.
72	72	SECTION 5. Section 1203.001(3), Government Code, is amended
73	73	to read as follows:
74	74	(3) "Public security" means a bond, note, [certificate
75	75	of obligation,] certificate of indebtedness, or other obligation
76	76	for the payment of money lawfully issued by an issuer.
77	77	SECTION 6. Section 1232.003(8), Government Code, is amended
78	78	to read as follows:
79	79	(8) "Obligation" means a bond, note, certificate of
80	80	participation, [certificate of obligation,] or interest in a
81	81	contract.
82	82	SECTION 7. Section 1303.001, Government Code, is amended to
83	83	read as follows:
84	84	Sec. 1303.001. USE OF BOND PROCEEDS FOR OWNER-CONTROLLED
85	85	INSURANCE PROGRAM. A county may use the proceeds of bonds [or
86	86	certificates of obligation] issued to pay for a county construction
87	87	project to pay for an owner-controlled insurance program under
88	88	which the county establishes and administers a consolidated
89	89	insurance program for the project if the county's order authorizing
90	90	the issuance of the bonds [or other certificates of obligation]
91	91	authorizes the establishment of the program.
92	92	SECTION 8. Section 1371.059(b), Government Code, is amended
93	93	to read as follows:
94	94	(b) Notwithstanding Subsection (a) and Section 1371.003,
95	95	and except as provided by this subsection, an obligation authorized
96	96	by this chapter is not valid, binding, or enforceable unless the
97	97	obligation is approved by the attorney general and registered by
98	98	the comptroller in accordance with Chapter 1202. The attorney
99	99	general's approval and registration by the comptroller is not
100	100	required for an obligation:
101	101	(1) to which Chapter 1202 does not apply or that is
102	102	exempt from approval and registration as provided by Section
103	103	1202.007(a)(1), (2), (3), (4), or (6)[, or (7)]; or
104	104	(2) that matures within one year after the issuer
105	105	receives payment for the obligation, regardless of whether the
106	106	obligation is evidenced by an instrument with a nominal term of
107	107	longer than one year.
108	108	SECTION 9. Section 1431.012(a), Government Code, is amended
109	109	to read as follows:
110	110	(a) Except as provided by Subsection (b), a county must
111	111	comply with the competitive bidding requirements of Subchapter C,
112	112	Chapter 262 [271], Local Government Code, in connection with a
113	113	contract to be paid from the proceeds of anticipation notes issued
114	114	for a purpose described by Section 1431.004(a)(1)(A).
115	115	SECTION 10. Section 1434.051, Government Code, is amended
116	116	to read as follows:
117	117	Sec. 1434.051. FINANCING OF PERMANENT IMPROVEMENTS BY
118	118	COUNTY OR MUNICIPALITY. (a) A county or a municipality may:
119	119	(1) issue public securities[, including certificates
120	120	of obligation,] to acquire, construct, or improve land, buildings,
121	121	or other permanent improvements for use by an institution of higher
122	122	education located within a county to which this chapter applies;
123	123	and
124	124	(2) impose ad valorem taxes to pay the principal of and
125	125	interest on those securities and to provide a sinking fund.
126	126	(a-1) A municipality that has entered into an agreement
127	127	described by Section 1434.001(1) may:
128	128	(1) issue public securities[, including certificates
129	129	of obligation,] to acquire, construct, or improve land, buildings,
130	130	or other permanent improvements for use by an institution of higher
131	131	education;
132	132	(2) impose ad valorem taxes to pay and secure payment
133	133	of the principal of and interest on those securities and to provide
134	134	a sinking fund; and
135	135	(3) pledge those taxes, any portion of the revenues
136	136	received in connection with the agreement, or any combination of
137	137	the taxes and revenue to secure payment of any portion of the public
138	138	securities issued to acquire, construct, or improve the land,
139	139	buildings, or other permanent improvements for use by the
140	140	institution of higher education.
141	141	(b) The county or municipality shall[:
142	142	[(1)] issue any public securities and impose the taxes
143	143	in accordance with the applicable provisions of Subtitles A, C, D,
144	144	and E[; and
145	145	[(2) if the securities are certificates of obligation,
146	146	issue any certificates and impose the taxes in accordance with
147	147	Subchapter C, Chapter 271, Local Government Code].
148	148	SECTION 11. Section 1434.053, Government Code, is amended
149	149	to read as follows:
150	150	Sec. 1434.053. LIMIT ON TAXES. The only limits on the
151	151	amount of taxes that may be imposed to pay the principal of and
152	152	interest on public securities[, including certificates of
153	153	obligation,] issued under this chapter are those provided by the
154	154	Texas Constitution.
155	155	SECTION 12. Section 1502.058(a), Government Code, is
156	156	amended to read as follows:
157	157	(a) Except as provided by Subsection (b) or (c) of this
158	158	section or[,] by Section 1502.059, [or by Section 271.052, Local
159	159	Government Code,] a municipality may not use the revenue of a
160	160	utility system, park, or swimming pool to pay any other debt,
161	161	expense, or obligation of the municipality until the debt secured
162	162	by the revenue is finally paid.
163	163	SECTION 13. The heading to Subchapter F, Chapter 281,
164	164	Health and Safety Code, is amended to read as follows:
165	165	SUBCHAPTER F. DISTRICT BONDS [AND CERTIFICATES OF OBLIGATION]
166	166	SECTION 14. Sections 281.121(a) and (c), Health and Safety
167	167	Code, are amended to read as follows:
168	168	(a) When the district issues bonds [or certificates of
169	169	obligation] payable from and secured by taxes under this chapter,
170	170	the commissioners court shall impose a tax for the benefit of the
171	171	district on all property subject to district taxation. The
172	172	commissioners court may impose the tax for the entire year in which
173	173	the district is created in order to finance initial district
174	174	operation and to pay bonds assumed by the district.
175	175	(c) The proceeds of the tax may be used:
176	176	(1) to pay the interest on and create a sinking fund
177	177	for bonds that may be assumed or issued by the district for hospital
178	178	purposes in accordance with this chapter;
179	179	(2) to provide for the operation and maintenance of
180	180	the hospital or hospital system; and
181	181	(3) if requested by the board and approved by the
182	182	commissioners court, to make further improvements and additions to
183	183	the hospital system, including acquiring necessary sites by
184	184	purchase, lease, or condemnation[; and
185	185	[(4) to pay for certificates of obligation issued
186	186	under Section 281.106 that are payable from and secured by taxes].
187	187	SECTION 15. Section 361.0855(a)(1), Health and Safety Code,
188	188	is amended to read as follows:
189	189	(1) "Bonds" means financial obligations issued by a
190	190	local government, including general obligation bonds and[,]
191	191	revenue bonds[, and certificates of obligation].
192	192	SECTION 16. Section 262.023(b), Local Government Code, is
193	193	amended to read as follows:
194	194	(b) The requirements established by Subsection (a) apply to
195	195	contracts for which payment will be made from current funds or bond
196	196	funds or through anticipation notes authorized by Chapter 1431,
197	197	Government Code, or time warrants. [Contracts for which payments
198	198	will be made through certificates of obligation are governed by The
199	199	Certificate of Obligation Act of 1971 (Subchapter C, Chapter 271).]
200	200	SECTION 17. Section 271.091(4), Local Government Code, is
201	201	amended to read as follows:
202	202	(4) "Obligation" means bonds, notes, [certificates of
203	203	obligation,] and other obligations authorized to be issued by the
204	204	local government.
205	205	SECTION 18. Section 303.003(12), Local Government Code, is
206	206	amended to read as follows:
207	207	(12) "Sponsor obligation" means an evidence of
208	208	indebtedness or obligation that a sponsor issues or incurs to
209	209	finance, refinance, or provide a public facility, including bonds,
210	210	notes, warrants, [certificates of obligation,] leases, and
211	211	contracts authorized by Section 303.041 and Subchapter C.
212	212	SECTION 19. Sections 361.003(b) and (c), Local Government
213	213	Code, are amended to read as follows:
214	214	(b) The municipality and county may specify in the contract
215	215	that the money required to meet the costs of providing the center
216	216	shall be derived:
217	217	(1) from current income and funds on hand that are
218	218	budgeted by the municipality and county for that purpose;
219	219	(2) through the issuance of bonds by either or both of
220	220	them under the procedures prescribed for the issuance of general
221	221	obligation bonds for other public buildings and purposes; or
222	222	(3) [by the issuance by either or both of them of
223	223	certificates of obligation under the Certificate of Obligation Act
224	224	of 1971 (Subchapter C, Chapter 271); or
225	225	[(4)] through a combination of those methods.
226	226	(c) Instead of or in combination with the use of taxing
227	227	power in the payment of bonds [or certificates of obligation]
228	228	issued under Subsection (b), those bonds [or certificates] may be
229	229	payable from and secured by income derived from the facilities of
230	230	the criminal justice center, including income from leases and from
231	231	the proceeds of parking or other fees.
232	232	SECTION 20. Section 361.051(5), Local Government Code, is
233	233	amended to read as follows:
234	234	(5) "Obligations" means:
235	235	(A) [certificates of obligation of an entity
236	236	issued pursuant to this subchapter in the manner prescribed by the
237	237	Certificate of Obligation Act of 1971 (Subchapter C, Chapter 271);
238	238	[(B)] certificates of participation representing
239	239	an undivided interest in a lease obligation;
240	240	(B) [(C)] revenue bonds of an entity issued
241	241	pursuant to this subchapter; or
242	242	(C) [(D)] contractual obligations incurred by an
243	243	entity under a lease agreement, lease-purchase agreement, purchase
244	244	on an installment contract, or other agreement providing for the
245	245	lease, lease-purchase, installment purchase, or other acquisition
246	246	of title to an eligible project.
247	247	SECTION 21. Section 361.052(b), Local Government Code, is
248	248	amended to read as follows:
249	249	(b) Money to be paid pursuant to a lease obligation and
250	250	revenues derived by an entity from the operation of an eligible
251	251	project constitute revenues to an entity that may be pledged to
252	252	secure or pay any obligations, and the entity's obligations may be
253	253	made payable from and secured by, in whole or in part, those
254	254	revenues. An entity may apply the provisions of Chapter 1371,
255	255	Government Code, Section [271.052 or] 361.053, or any combination
256	256	of those laws to the issuance of obligations and the execution of
257	257	credit agreements to satisfy the purposes of this subchapter,
258	258	except that an entity's obligations may be refunded by the issuance
259	259	of public securities, as defined by Section 1201.002, Government
260	260	Code, that are payable from a pledge of ad valorem tax receipts only
261	261	if the issuance of the public securities is approved by a majority
262	262	of votes cast at an election conducted in accordance with the bond
263	263	election procedures established by Chapter 1251, Government Code.
264	264	SECTION 22. Section 373.005(d), Local Government Code, is
265	265	amended to read as follows:
266	266	(d) A municipality may issue notes or other obligations
267	267	guaranteed by the secretary of housing and urban development under
268	268	Section 108, Housing and Community Development Act of 1974 (42
269	269	U.S.C. Section 5308), as amended, for the purpose of providing
270	270	financing for those activities described in Section 108, Housing
271	271	and Community Development Act (42 U.S.C. Section 5308), as amended,
272	272	in furtherance of an approved community development program. [The
273	273	Section 108 guaranteed notes additionally may be secured by and
274	274	made payable from the same sources as obligations issued under
275	275	Subchapter C, Chapter 271, Local Government Code, subject to the
276	276	notice provisions set forth therein.] The Section 108 guaranteed
277	277	notes or other obligations may be issued in such form,
278	278	denominations, manner, terms, and conditions, bear interest at such
279	279	rates, be interim or permanent notes or obligations, be subject to
280	280	transfer, exchange, change, conversion, or replacement, and be sold
281	281	in such manner, at such price, and under such terms, all as provided
282	282	in the ordinance or resolution authorizing the issuance of such
283	283	Section 108 guaranteed notes or obligations.
284	284	SECTION 23. Section 183.006(a), Natural Resources Code, is
285	285	amended to read as follows:
286	286	(a) In addition to other methods of financing, including the
287	287	use of the county's general fund, a county may finance the
288	288	acquisition of a conservation easement under this chapter in the
289	289	same manner as permitted for that county under[:
290	290	[(1)] Section 331.004, Local Government Code, for the
291	291	acquisition or improvement of land, buildings, or historically
292	292	significant objects for park purposes or for historic or
293	293	prehistoric preservation purposes[; or
294	294	[(2) Section 271.045, Local Government Code, for land
295	295	and rights-of-way].
296	296	SECTION 24. Section 1063.206(a), Special District Local
297	297	Laws Code, is amended to read as follows:
298	298	(a) The district may issue revenue bonds [or certificates of
299	299	obligation] or may incur or assume any other debt only if authorized
300	300	by a majority of the district voters voting in an election held for
301	301	that purpose. This subsection does not apply to refunding bonds or
302	302	other debt incurred solely to refinance an outstanding debt.
303	303	SECTION 25. Section 1064.110(b), Special District Local
304	304	Laws Code, is amended to read as follows:
305	305	(b) The successful bidder for a [Section 271.059, Local
306	306	Government Code, relating to performance and payment bonds, applies
307	307	to] construction contract [contracts] let by the district must
308	308	execute a good and sufficient payment bond and performance bond.
309	309	The bonds must each be:
310	310	(1) in the full amount of the contract price; and
311	311	(2) executed, in accordance with Chapter 2253,
312	312	Government Code, with a surety company authorized to do business in
313	313	this state.
314	314	SECTION 26. Section 1064.251, Special District Local Laws
315	315	Code, is amended to read as follows:
316	316	Sec. 1064.251. GENERAL OBLIGATION BONDS[, CERTIFICATES OF
317	317	OBLIGATION,] AND OTHER FINANCING. The board may issue and sell
318	318	general obligation bonds[, certificates of obligation,] or any
319	319	other type of financing authorized by the laws of this state[,
320	320	including that type of financing authorized by Chapter 271, Local
321	321	Government Code,] in the name and on the faith and credit of the
322	322	district for any purpose relating to:
323	323	(1) the purchase, construction, acquisition, repair,
324	324	or renovation of buildings or improvements; and
325	325	(2) equipping buildings or improvements for hospital
326	326	purposes.
327	327	SECTION 27. Section 1103.207, Special District Local Laws
328	328	Code, is amended to read as follows:
329	329	Sec. 1103.207. ANTICIPATION NOTES [AND CERTIFICATES OF
330	330	OBLIGATION]. The board may issue[:
331	331	[(1)] anticipation notes under Chapter 1431,
332	332	Government Code[; and
333	333	[(2) certificates of obligation under Subchapter C,
334	334	Chapter 271, Local Government Code].
335	335	SECTION 28. Section 3503.101(b), Special District Local
336	336	Laws Code, is amended to read as follows:
337	337	(b) The authority may exercise any power or duty necessary
338	338	or appropriate to carry out a project described by Section
339	339	3503.003(a)(3) and the purposes of this chapter, including the
340	340	power to:
341	341	(1) sue and be sued, and plead and be impleaded, in its
342	342	own name;
343	343	(2) adopt an official seal;
344	344	(3) adopt, enforce, and amend rules for the conduct of
345	345	its affairs;
346	346	(4) acquire, hold, own, pledge, and dispose of its
347	347	revenue, income, receipts, and money from any source;
348	348	(5) select its depository;
349	349	(6) acquire, own, rent, lease, accept, hold, or
350	350	dispose of any property, or any interest in property, including
351	351	rights or easements, in performing its duties and exercising its
352	352	powers under this chapter, by purchase, exchange, gift, assignment,
353	353	sale, lease, or other method;
354	354	(7) hold, manage, operate, or improve the property;
355	355	(8) sell, assign, lease, encumber, mortgage, or
356	356	otherwise dispose of property, or any interest in property, and
357	357	relinquish a property right, title, claim, lien, interest,
358	358	easement, or demand, however acquired;
359	359	(9) perform an activity authorized by Subdivision (8)
360	360	by public or private sale, with or without public bidding,
361	361	notwithstanding any other law;
362	362	(10) lease or rent any land and building, structure,
363	363	or facility from or to any person to carry out a chapter purpose;
364	364	(11) request and accept an appropriation, grant,
365	365	allocation, subsidy, guarantee, aid, service, labor, material, or
366	366	gift, from the federal government, the state, a public agency or
367	367	political subdivision, or any other source;
368	368	(12) operate and maintain an office and appoint and
369	369	determine the duties, tenure, qualifications, and compensation of
370	370	officers, employees, agents, professional advisors and counselors,
371	371	including financial consultants, accountants, attorneys,
372	372	architects, engineers, appraisers, and financing experts, as
373	373	considered necessary or advisable by the board;
374	374	(13) borrow money and issue bonds, payable solely from
375	375	all or a portion of any authority revenue, by resolution or order of
376	376	the board and without the necessity of an election;
377	377	(14) set and collect rents, rates, fees, and charges
378	378	regarding the property and any services provided by the authority;
379	379	(15) exercise the powers Chapters 373 and 380, Local
380	380	Government Code, grant to a municipality for the development of
381	381	housing and expansion of economic development and commercial
382	382	activity;
383	383	(16) exercise the powers Chapter 49, Water Code,
384	384	grants to a general-law district;
385	385	(17) exercise the powers Chapter 54, Water Code,
386	386	grants to a municipal utility district;
387	387	(18) exercise the powers Chapter 552, Transportation
388	388	Code, grants to a road utility district;
389	389	(19) [exercise the powers Subchapter C, Chapter 271,
390	390	Local Government Code, grants to a municipality or county;
391	391	[(20)] exercise the powers Chapter 552, Local
392	392	Government Code, grants to a municipality for the provision of
393	393	municipal utilities;
394	394	(20) [(21)] contract and be contracted with, in the
395	395	authority's own name, another person in the performance of the
396	396	authority's powers or duties to carry out a project described by
397	397	Section 3503.003(a)(3), or to accomplish the purposes of this
398	398	chapter for a period of years, on the terms, and by competitive
399	399	bidding or by negotiated contract, all as the board considers
400	400	appropriate, desirable, and in the best interests of the authority
401	401	and the accomplishment of chapter purposes;
402	402	(21) [(22)] acquire, hold, own, sell, assign, lease,
403	403	encumber, mortgage, or otherwise dispose of any real, personal, or
404	404	mixed property located outside the perimeter of the property
405	405	described by Section 3503.004 if the other property enhances or
406	406	facilitates the development, redevelopment, maintenance, or
407	407	expansion of new and existing businesses, industry, or commercial
408	408	activity on the property;
409	409	(22) [(23)] exercise the powers Chapter 22,
410	410	Transportation Code, grants to a municipality or county;
411	411	(23) [(24)] exercise the powers Chapter 379B, Local
412	412	Government Code, grants to a defense base development authority;
413	413	(24) [(25)] exercise the powers of a municipality
414	414	under Chapters 211 and 212, Local Government Code, in the territory
415	415	of the authority, including an area of the authority that is in the
416	416	boundaries of a municipality's limited purpose jurisdiction and
417	417	extraterritorial jurisdiction. On annexation of an area of the
418	418	authority for full purposes by a municipality, the authority's
419	419	power to regulate the area under Chapters 211 and 212 expires. The
420	420	authority regains the power in an area if the municipality
421	421	disannexes the area;
422	422	(25) [(26)] fund and carry out a project the board
423	423	determines will promote or support an active military base located
424	424	in the same county as the authority to prevent closure or
425	425	realignment of the base and attract new military missions to the
426	426	base, including a project to create jobs, retain jobs, grant or loan
427	427	money to a federal entity, make improvements to infrastructure,
428	428	buildings, or land, or acquire land; and
429	429	(26) [(27)] for a fee, provide services or operate
430	430	facilities inside or outside the boundaries of the authority and
431	431	this state to promote, enhance, develop, or assist a person in the
432	432	creation of a new business, industry, or commercial activity in the
433	433	boundaries of the authority.
434	434	SECTION 29. Sections 26.012(7) and (18-b), Tax Code, are
435	435	amended to read as follows:
436	436	(7) "Debt" means:
437	437	(A) a bond, warrant, [certificate of
438	438	obligation,] or other evidence of indebtedness owed by a taxing
439	439	unit that:
440	440	(i) is payable from property taxes in
441	441	installments over a period of more than one year, not budgeted for
442	442	payment from maintenance and operations funds, and secured by a
443	443	pledge of property taxes; and
444	444	(ii) meets one of the following
445	445	requirements:
446	446	(a) has been approved at an election;
447	447	(b) includes self-supporting debt;
448	448	(c) evidences a loan under a state or
449	449	federal financial assistance program;
450	450	(d) is issued for designated
451	451	infrastructure;
452	452	(e) is a refunding bond;
453	453	(f) is issued in response to an
454	454	emergency under Section 1431.015, Government Code;
455	455	(g) is issued for renovating,
456	456	improving, or equipping existing buildings or facilities;
457	457	(h) is issued for vehicles or
458	458	equipment; or
459	459	(i) is issued for a project under
460	460	Chapter 311, Tax Code, or Chapter 222, Transportation Code, that is
461	461	located in a reinvestment zone created under one of those chapters;
462	462	or
463	463	(B) a payment made under contract to secure
464	464	indebtedness of a similar nature issued by another political
465	465	subdivision on behalf of the taxing unit.
466	466	(18-b) "Self-supporting debt" means the portion of a
467	467	bond, warrant, [certificate of obligation,] or other evidence of
468	468	indebtedness described by Subdivision (7)(A)(i) designated by the
469	469	governing body of a political subdivision as being repaid from a
470	470	source other than property taxes.
471	471	SECTION 30. Section 172.001(2), Transportation Code, is
472	472	amended to read as follows:
473	473	(2) "Bonds" means:
474	474	(A) bonds;
475	475	(B) notes, including bond anticipation notes,
476	476	revenue anticipation notes, and grant anticipation notes;
477	477	(C) warrants;
478	478	(D) [certificates of obligation;
479	479	[(E)] interest-bearing contracts;
480	480	(E) [(F)] interest-bearing leases of property;
481	481	(F) [(G)] equipment trust certificates;
482	482	(G) [(H)] commercial paper; and
483	483	(H) [(I)] any obligation issued to refund any
484	484	type of bond.
485	485	SECTION 31. Section 311.054(c), Transportation Code, is
486	486	amended to read as follows:
487	487	(c) A general-law municipality may expend municipal funds
488	488	and may issue [certificates of obligation or] bonds to pay for
489	489	expenses associated with a railroad quiet zone under Subsection
490	490	(b), including expenses related to feasibility, engineering, and
491	491	traffic studies and improvements related to the railroad quiet
492	492	zone.
493	493	SECTION 32. Section 365.039, Transportation Code, is
494	494	amended to read as follows:
495	495	Sec. 365.039. COUNTY BONDS [AND CERTIFICATES OF
496	496	OBLIGATION]. A county may authorize, issue, and sell its bonds [or
497	497	certificates of obligation] and use the proceeds to:
498	498	(1) call, redeem, and retire a district's outstanding
499	499	bonds;
500	500	(2) remove the pledge of the revenue from a district's
501	501	toll road project or other road, street, or highway project and the
502	502	district's covenants [convenants] in connection with the bonds and
503	503	toll road project; and
504	504	(3) make the toll road project available for use of the
505	505	public free from tolls and charges.
506	506	SECTION 33. The following laws are repealed:
507	507	(1) Section 1371.056(f), Government Code;
508	508	(2) Section 2259.036, Government Code;
509	509	(3) Section 281.106, Health and Safety Code;
510	510	(4) Subchapter C, Chapter 271, Local Government Code;
511	511	and
512	512	(5) Section 1063.210, Special District Local Laws
513	513	Code.
514	514	SECTION 34. The repeal of authority to issue certificates
515	515	of obligation under Subchapter C, Chapter 271, Local Government
516	516	Code, by this Act, does not affect the validity of certificates of
517	517	obligation issued under that authority before the effective date of
518	518	this Act. Certificates of obligation issued before the effective
519	519	date of this Act are governed by the law in effect when the
520	520	certificates of obligation were issued, and that law is continued
521	521	in effect for purposes of the validity of those certificates.
522	522	SECTION 35. This Act takes effect September 1, 2023.