| 1 | 1 | | 88R8612 DRS-F |
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| 2 | 2 | | By: Bettencourt S.B. No. 1791 |
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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 bonds by certain local government |
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| 8 | 8 | | corporations. |
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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 431.070(a), Transportation Code, is |
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| 11 | 11 | | amended to read as follows: |
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| 12 | 12 | | (a) Subject to Subchapter D-1, a [A] corporation may issue |
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| 13 | 13 | | bonds and notes to carry out its purpose. |
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| 14 | 14 | | SECTION 2. Section 431.101(b), Transportation Code, is |
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| 15 | 15 | | amended to read as follows: |
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| 16 | 16 | | (b) Except as provided by Subchapter D-1, a [A] local |
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| 17 | 17 | | government corporation has the powers of a corporation authorized |
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| 18 | 18 | | for creation by the commission under this chapter. |
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| 19 | 19 | | SECTION 3. Chapter 431, Transportation Code, is amended by |
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| 20 | 20 | | adding Subchapter D-1 to read as follows: |
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| 21 | 21 | | SUBCHAPTER D-1. ISSUANCE OF BONDS BY CERTAIN LOCAL GOVERNMENT |
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| 22 | 22 | | CORPORATIONS CREATED BY MUNICIPALITIES OR COUNTIES |
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| 23 | 23 | | Sec. 431.120. APPLICABILITY OF SUBCHAPTER. This subchapter |
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| 24 | 24 | | applies to a local government corporation created by a municipality |
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| 25 | 25 | | or county that has entered into an agreement with a municipality or |
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| 26 | 26 | | county for the transfer of property tax revenue from the |
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| 27 | 27 | | municipality or county to the corporation for a specific project. |
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| 28 | 28 | | Sec. 431.121. BOND ELECTION REQUIRED. (a) A local |
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| 29 | 29 | | government corporation may not issue bonds to be paid wholly or |
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| 30 | 30 | | partly from ad valorem taxes approved by the voters of a |
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| 31 | 31 | | municipality or county under Section 26.07, Tax Code, to pay for a |
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| 32 | 32 | | specific project, unless the issuance is first approved by the |
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| 33 | 33 | | voters of the municipality or county in an election. |
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| 34 | 34 | | (b) An election held for purposes of this section must be |
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| 35 | 35 | | conducted as provided by Section 1251.003, Government Code. |
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| 36 | 36 | | (c) At an election ordered on the issuance of bonds under |
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| 37 | 37 | | this section, the governing body of the municipality or county |
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| 38 | 38 | | shall also submit the question of whether to impose a tax on |
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| 39 | 39 | | property in the municipality or county to pay interest on the bonds |
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| 40 | 40 | | and to provide a sinking fund to redeem the bonds. |
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| 41 | 41 | | Sec. 431.122. FORM OF BALLOT. (a) The ballot proposition |
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| 42 | 42 | | for a measure seeking voter approval for issuance of bonds under |
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| 43 | 43 | | this subchapter must include: |
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| 44 | 44 | | (1) a plain language description of the single |
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| 45 | 45 | | specific purposes for which the bonds are to be authorized; |
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| 46 | 46 | | (2) the total principal amount of the bonds to be |
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| 47 | 47 | | authorized; and |
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| 48 | 48 | | (3) that the principal of and interest on the bonds |
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| 49 | 49 | | will be wholly or partly paid from property tax revenue. |
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| 50 | 50 | | (b) Each single specific purpose for which bonds requiring |
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| 51 | 51 | | voter approval are to be issued must be printed on the ballot as a |
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| 52 | 52 | | separate proposition. A proposition may include as a specific |
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| 53 | 53 | | purpose one or more structures or improvements serving the |
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| 54 | 54 | | substantially same purpose and may include related improvements and |
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| 55 | 55 | | equipment necessary to accomplish the specific purpose. |
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| 56 | 56 | | SECTION 4. The change in law made by Subchapter D-1, Chapter |
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| 57 | 57 | | 431, Transportation Code, as added by this Act, applies only to a |
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| 58 | 58 | | bond authorized to be issued on or after the effective date of this |
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| 59 | 59 | | Act. |
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| 60 | 60 | | SECTION 5. This Act takes effect September 1, 2023. |
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