| 1 | 1 | | By: Troxclair, et al. H.B. No. 3899 |
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| 2 | 2 | | (Senate Sponsor - Bettencourt) |
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| 3 | 3 | | (In the Senate - Received from the House May 3, 2023; |
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| 4 | 4 | | May 4, 2023, read first time and referred to Committee on Local |
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| 5 | 5 | | Government; May 19, 2023, reported favorably by the following |
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| 6 | 6 | | vote: Yeas 7, Nays 0; May 19, 2023, sent to printer.) |
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| 7 | 7 | | Click here to see the committee vote |
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| 8 | 8 | | |
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| 9 | 9 | | |
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| 10 | 10 | | A BILL TO BE ENTITLED |
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| 11 | 11 | | AN ACT |
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| 12 | 12 | | relating to the issuance of bonds by certain local government |
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| 13 | 13 | | corporations. |
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| 14 | 14 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 15 | 15 | | SECTION 1. Section 431.003(3), Transportation Code, is |
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| 16 | 16 | | amended to read as follows: |
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| 17 | 17 | | (3) "Local government" means: |
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| 18 | 18 | | (A) a municipality; |
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| 19 | 19 | | (B) a county; or |
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| 20 | 20 | | (C) for purposes of Subchapter D or D-1: |
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| 21 | 21 | | (i) a navigation district, hospital |
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| 22 | 22 | | district, or hospital authority; |
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| 23 | 23 | | (ii) a regional transportation authority |
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| 24 | 24 | | governed by Chapter 452; |
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| 25 | 25 | | (iii) a rapid transit authority governed by |
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| 26 | 26 | | Chapter 451; or |
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| 27 | 27 | | (iv) a coordinated county transportation |
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| 28 | 28 | | authority governed by Chapter 460. |
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| 29 | 29 | | SECTION 2. Section 431.070(a), Transportation Code, is |
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| 30 | 30 | | amended to read as follows: |
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| 31 | 31 | | (a) Subject to Subchapter D-1, a [A] corporation may issue |
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| 32 | 32 | | bonds and notes to carry out its purpose. |
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| 33 | 33 | | SECTION 3. Section 431.101(b), Transportation Code, is |
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| 34 | 34 | | amended to read as follows: |
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| 35 | 35 | | (b) Except as provided by Subchapter D-1, a [A] local |
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| 36 | 36 | | government corporation has the powers of a corporation authorized |
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| 37 | 37 | | for creation by the commission under this chapter. |
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| 38 | 38 | | SECTION 4. Chapter 431, Transportation Code, is amended by |
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| 39 | 39 | | adding Subchapter D-1 to read as follows: |
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| 40 | 40 | | SUBCHAPTER D-1. ISSUANCE OF BONDS BY CERTAIN LOCAL GOVERNMENT |
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| 41 | 41 | | CORPORATIONS CREATED BY MUNICIPALITIES OR COUNTIES |
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| 42 | 42 | | Sec. 431.120. APPLICABILITY OF SUBCHAPTER. This subchapter |
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| 43 | 43 | | applies to a local government corporation created by a municipality |
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| 44 | 44 | | or county independently or with another local government that has |
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| 45 | 45 | | entered into an agreement with a municipality or county for the |
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| 46 | 46 | | transfer to the corporation of revenue from ad valorem taxes that |
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| 47 | 47 | | were approved by the voters of the municipality or county under |
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| 48 | 48 | | Section 26.07, Tax Code. |
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| 49 | 49 | | Sec. 431.121. DEFINITION. In this subchapter, "bond" |
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| 50 | 50 | | includes a note, revenue bond, or loan. |
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| 51 | 51 | | Sec. 431.122. BOND ELECTION REQUIRED. (a) Notwithstanding |
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| 52 | 52 | | any other law, a local government corporation may not issue bonds, |
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| 53 | 53 | | other than refunding bonds, to be paid wholly or partly from ad |
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| 54 | 54 | | valorem taxes transferred from a municipality or county to the |
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| 55 | 55 | | corporation that were approved by the voters of the municipality or |
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| 56 | 56 | | county under Section 26.07, Tax Code, unless the corporation is |
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| 57 | 57 | | first authorized to issue bonds under this subchapter by the voters |
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| 58 | 58 | | of the municipality or county in an election held by the |
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| 59 | 59 | | municipality or county for that purpose. |
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| 60 | 60 | | (b) Bonds authorized under this subchapter to finance a |
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| 61 | 61 | | project may be issued in one or more series. |
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| 62 | 62 | | (c) An election held for purposes of this section must be: |
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| 63 | 63 | | (1) conducted as provided by Section 1251.003, |
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| 64 | 64 | | Government Code; and |
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| 65 | 65 | | (2) held in the municipality or county on the uniform |
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| 66 | 66 | | election date in November. |
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| 67 | 67 | | Sec. 431.123. FORM OF BALLOT. (a) The ballot proposition |
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| 68 | 68 | | for a measure seeking voter approval for issuance of bonds under |
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| 69 | 69 | | this subchapter must include: |
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| 70 | 70 | | (1) a plain language description of the purposes for |
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| 71 | 71 | | which the bonds are to be authorized; |
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| 72 | 72 | | (2) the principal amount not to be exceeded in the |
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| 73 | 73 | | aggregate of the bonds authorized to be issued in one or more |
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| 74 | 74 | | series; |
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| 75 | 75 | | (3) the maximum maturity date of the bonds to be |
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| 76 | 76 | | authorized, not to exceed 40 years; and |
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| 77 | 77 | | (4) that the principal of and interest on the bonds |
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| 78 | 78 | | will be wholly or partly paid from funds received pursuant to an |
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| 79 | 79 | | agreement with the municipality or county for the transfer of ad |
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| 80 | 80 | | valorem taxes approved by the voters of the municipality or county |
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| 81 | 81 | | under Section 26.07, Tax Code. |
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| 82 | 82 | | (b) A proposition may include as a purpose one or more |
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| 83 | 83 | | structures or improvements serving the substantially same purpose |
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| 84 | 84 | | and may include related improvements and equipment necessary to |
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| 85 | 85 | | accomplish the purpose. |
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| 86 | 86 | | (c) The result of an election held under this subchapter |
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| 87 | 87 | | does not affect the result of a prior election held under Section |
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| 88 | 88 | | 26.07, Tax Code. |
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| 89 | 89 | | Sec. 431.124. CONDITION OF BONDS. A bond authorized to be |
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| 90 | 90 | | issued under this subchapter may not mature more than 40 years after |
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| 91 | 91 | | the date the bond was issued. |
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| 92 | 92 | | SECTION 5. Section 1207.001(1), Government Code, is amended |
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| 93 | 93 | | to read as follows: |
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| 94 | 94 | | (1) "Issuer" means this state or any department, |
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| 95 | 95 | | board, authority, agency, subdivision, municipal corporation, |
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| 96 | 96 | | district, public corporation, body politic, or instrumentality of |
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| 97 | 97 | | this state which has the power to borrow money and issue bonds, |
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| 98 | 98 | | notes, or other evidences of indebtedness. The term includes a |
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| 99 | 99 | | county, municipality, state-supported institution of higher |
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| 100 | 100 | | education, junior college district, regional college district, |
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| 101 | 101 | | school district, hospital district, water district, road district, |
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| 102 | 102 | | navigation district, conservation district, local government |
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| 103 | 103 | | corporation, and any other kind or type of political or |
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| 104 | 104 | | governmental entity. |
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| 105 | 105 | | SECTION 6. The change in law made by Subchapter D-1, Chapter |
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| 106 | 106 | | 431, Transportation Code, as added by this Act, applies only to a |
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| 107 | 107 | | bond issued on or after the effective date of this Act. |
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| 108 | 108 | | SECTION 7. This Act takes effect immediately if it receives |
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| 109 | 109 | | a vote of two-thirds of all the members elected to each house, as |
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| 110 | 110 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 111 | 111 | | Act does not receive the vote necessary for immediate effect, this |
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| 112 | 112 | | Act takes effect September 1, 2023. |
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| 113 | 113 | | * * * * * |
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