| 1 | 1 | | By: Parker S.B. No. 2206 |
|---|
| 2 | 2 | | |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | A BILL TO BE ENTITLED |
|---|
| 5 | 5 | | AN ACT |
|---|
| 6 | 6 | | relating to the sale of bonds by certain special purpose districts. |
|---|
| 7 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 8 | 8 | | SECTION 1. Chapter 49.183, Texas Water Code, is amended to |
|---|
| 9 | 9 | | read as follows: |
|---|
| 10 | 10 | | Sec. 49.183. BOND SALES.(a) Bonds issued by a district |
|---|
| 11 | 11 | | shall be sold either by private sale or by public sale. |
|---|
| 12 | 12 | | (b) Bonds sold by public sale shall be competitively bid and |
|---|
| 13 | 13 | | awarded to the bidder whose bid produces the lowest net effective |
|---|
| 14 | 14 | | interest rate to the district. |
|---|
| 15 | 15 | | (c) Before any bonds are sold by a district pursuant to |
|---|
| 16 | 16 | | competitive bid, the board shall publish an appropriate notice of |
|---|
| 17 | 17 | | the sale: |
|---|
| 18 | 18 | | (1) at least one time not less than 10 days before the |
|---|
| 19 | 19 | | date of sale in a newspaper of general circulation in the county or |
|---|
| 20 | 20 | | counties in which the district is located; and |
|---|
| 21 | 21 | | (2) at least one time in one or more recognized |
|---|
| 22 | 22 | | financial publications of general circulation in the state as |
|---|
| 23 | 23 | | approved by the state attorney general. |
|---|
| 24 | 24 | | (d) Before issuing its bonds by private sale, the board |
|---|
| 25 | 25 | | shall review with its financial adviser the process of selling its |
|---|
| 26 | 26 | | bonds by public or private sale and make a determination that |
|---|
| 27 | 27 | | selling its bonds by private sale will result in a net effective |
|---|
| 28 | 28 | | interest rate to the district equal to or less than it will |
|---|
| 29 | 29 | | accomplish by public sale. |
|---|
| 30 | 30 | | (e) In connection with the issuance of bonds by private |
|---|
| 31 | 31 | | sale, the governing body of a district may: |
|---|
| 32 | 32 | | (1) authorize the principal amount of bonds that may |
|---|
| 33 | 33 | | be issued, principal amount to mature each year, and maximum rate of |
|---|
| 34 | 34 | | interest to be borne by the bonds, and any other detail the |
|---|
| 35 | 35 | | governing body deems relevant to the issuance of the bonds; and |
|---|
| 36 | 36 | | (2) delegate to any officer or director of the issuer |
|---|
| 37 | 37 | | the authority to effect the sale of the bonds. |
|---|
| 38 | 38 | | (f) In exercising the authority delegated by the governing |
|---|
| 39 | 39 | | body, a director or officer may establish the terms and details |
|---|
| 40 | 40 | | related to the issuance and sale of the bonds, including |
|---|
| 41 | 41 | | (1) the form of the bonds; |
|---|
| 42 | 42 | | (2) the principal amount of the bonds and the amount |
|---|
| 43 | 43 | | of the bonds to mature each year; |
|---|
| 44 | 44 | | (3) the dates, price, interest rates, interest |
|---|
| 45 | 45 | | payment dates, principal payment dates, and redemption feature of |
|---|
| 46 | 46 | | the bonds; and |
|---|
| 47 | 47 | | (4) any other detail relating to the issuance and sale |
|---|
| 48 | 48 | | of the bonds as specified by the governing body of the issuer in the |
|---|
| 49 | 49 | | proceedings authorizing the issuance of the bonds. |
|---|
| 50 | 50 | | (g) At the time the district enters into a contract to sell |
|---|
| 51 | 51 | | its bonds by private sale, the district's financial advisor shall |
|---|
| 52 | 52 | | review with the board, or its authorized representative, other |
|---|
| 53 | 53 | | recently completed sales of district bonds, including the net |
|---|
| 54 | 54 | | effective interest rate thereon and issuance costs. |
|---|
| 55 | 55 | | (h) A finding or determination made by a director or officer |
|---|
| 56 | 56 | | acting under the authority delegated to such director or officer |
|---|
| 57 | 57 | | has the same force and effect as a finding or determination made by |
|---|
| 58 | 58 | | the governing body of the district. |
|---|
| 59 | 59 | | (i) A district's bonds are negotiable instruments within |
|---|
| 60 | 60 | | the meaning and purposes of the Business & Commerce Code. A |
|---|
| 61 | 61 | | district's bonds may be issued and bear interest in accordance with |
|---|
| 62 | 62 | | Chapters 1201, 1204, and 1371, Government Code, and Subchapters |
|---|
| 63 | 63 | | A-C, Chapter 1207, Government Code. Except for this subsection, |
|---|
| 64 | 64 | | this section does not apply to special water authorities or |
|---|
| 65 | 65 | | districts described in Section 49.181(h)(1)(D). |
|---|
| 66 | 66 | | SECTION 2. This Act takes effect immediately if it receives |
|---|
| 67 | 67 | | a vote of two-thirds of all the members elected to each house, as |
|---|
| 68 | 68 | | provided by Section 39, Article III, Texas Constitution. If this |
|---|
| 69 | 69 | | Act does not receive the vote necessary for immediate effect, this |
|---|
| 70 | 70 | | Act takes effect September 1, 2023. |
|---|