88R8612 DRS-F
By: Troxclair H.B. No. 3899
A BILL TO BE ENTITLED
AN ACT
relating to the issuance of bonds by certain local government
corporations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 431.070(a), Transportation Code, is
amended to read as follows:
(a) Subject to Subchapter D-1, a [A] corporation may issue
bonds and notes to carry out its purpose.
SECTION 2. Section 431.101(b), Transportation Code, is
amended to read as follows:
(b) Except as provided by Subchapter D-1, a [A] local
government corporation has the powers of a corporation authorized
for creation by the commission under this chapter.
SECTION 3. Chapter 431, Transportation Code, is amended by
adding Subchapter D-1 to read as follows:
SUBCHAPTER D-1. ISSUANCE OF BONDS BY CERTAIN LOCAL GOVERNMENT
CORPORATIONS CREATED BY MUNICIPALITIES OR COUNTIES
Sec. 431.120. APPLICABILITY OF SUBCHAPTER. This subchapter
applies to a local government corporation created by a municipality
or county that has entered into an agreement with a municipality or
county for the transfer of property tax revenue from the
municipality or county to the corporation for a specific project.
Sec. 431.121. BOND ELECTION REQUIRED. (a) A local
government corporation may not issue bonds to be paid wholly or
partly from ad valorem taxes approved by the voters of a
municipality or county under Section 26.07, Tax Code, to pay for a
specific project, unless the issuance is first approved by the
voters of the municipality or county in an election.
(b) An election held for purposes of this section must be
conducted as provided by Section 1251.003, Government Code.
(c) At an election ordered on the issuance of bonds under
this section, the governing body of the municipality or county
shall also submit the question of whether to impose a tax on
property in the municipality or county to pay interest on the bonds
and to provide a sinking fund to redeem the bonds.
Sec. 431.122. FORM OF BALLOT. (a) The ballot proposition
for a measure seeking voter approval for issuance of bonds under
this subchapter must include:
(1) a plain language description of the single
specific purposes for which the bonds are to be authorized;
(2) the total principal amount of the bonds to be
authorized; and
(3) that the principal of and interest on the bonds
will be wholly or partly paid from property tax revenue.
(b) Each single specific purpose for which bonds requiring
voter approval are to be issued must be printed on the ballot as a
separate proposition. A proposition may include as a specific
purpose one or more structures or improvements serving the
substantially same purpose and may include related improvements and
equipment necessary to accomplish the specific purpose.
SECTION 4. The change in law made by Subchapter D-1, Chapter
431, Transportation Code, as added by this Act, applies only to a
bond authorized to be issued on or after the effective date of this
Act.
SECTION 5. This Act takes effect September 1, 2023.