Texas 2025 - 89th Regular

Texas House Bill HB5004 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R1766 MP-D
2	2	By: Metcalf H.B. No. 5004
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to approval by voters prior to the issuance of revenue
10	10	bonds by the San Jacinto River Authority.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Sections 10 and 10b, Chapter 426, Acts of the
13	13	45th Legislature, Regular Session, 1937, are amended to read as
14	14	follows:
15	15	Sec. 10. The [San Jacinto River Conservation and
16	16	Reclamation] District shall not be authorized to issue bonds
17	17	payable from ad valorem taxes nor to incur any form of continuing
18	18	obligations or indebtedness for purposes of effecting improvements
19	19	comprehended in the plan of organization and administration of the
20	20	District, nor incur any indebtedness in the form of a continuing
21	21	charge upon land or properties within the District, unless such
22	22	proposition shall have been submitted to the qualified property
23	23	taxpaying voters of the District, or, in appropriate case, such
24	24	voters of a defined area or political subdivision within the
25	25	District, and approved by a majority of such electors voting
26	26	thereon.
27	27	Section 10b. The Authority shall have the authority and is
28	28	hereby authorized to issue from time to time its negotiable revenue
29	29	bonds for the purpose of making investigations and assembling data;
30	30	for the purposes of purchasing, acquiring, and/or condemning lands,
31	31	easements, rights-of-way and other properties; and for the purpose
32	32	of constructing, repairing, improving and extending any
33	33	structures, dams, reservoirs, transmission facilities, water
34	34	treatment, water supply, sewage and other waste gathering,
35	35	transmission, treatment and disposal facilities, for developing
36	36	park and recreation facilities; and for the purposes of acquiring,
37	37	constructing, improving, repairing and extending any other
38	38	properties and facilities deemed appropriate by the Board of
39	39	Directors of the Authority in the exercise of powers granted the
40	40	Authority in Section 3 and elsewhere in this Act. Any one or more or
41	41	a combination of the foregoing purposes may be combined into a
42	42	single issue of bonds. Such bonds shall be issued in accordance
43	43	with, and may be secured by and payable from any or all the revenues
44	44	of the Authority permitted by, Section 10c hereof, including, but
45	45	not limited to, the proceeds of any one or more contracts between
46	46	the Authority and any persons, firms, corporations, cities and
47	47	political subdivisions. Revenue bonds issued under this section
48	48	must be approved in an election as described by Sections 11A, 11B,
49	49	11C, 11D, 11E, 11F, and 11G of this Act.
50	50	If and when the Legislature remits the ad valorem tax in the
51	51	counties for a certain period of years, the Directors may in their
52	52	discretion if necessary with approval of the Commissioners Court of
53	53	the county in the watershed use part or all of the taxes remitted to
54	54	said counties for the purpose of paying back to the United States of
55	55	America or any of its agencies or others the money borrowed by the
56	56	Authority for the purposes herein mentioned.
57	57	SECTION 2. Chapter 426, Acts of the 45th Legislature,
58	58	Regular Session, 1937, is amended by adding Sections 11A, 11B, 11C,
59	59	11D, 11E, 11F, and 11G to read as follows:
60	60	Sec. 11A. DEFINITIONS. In this Act:
61	61	(1) "Electric cooperative" has the meaning assigned by
62	62	Section 11.003, Utilities Code.
63	63	(2) "Municipally owned utility" has the meaning
64	64	assigned by Section 11.003, Utilities Code.
65	65	(3) "Retail electric provider" has the meaning
66	66	assigned by Section 31.002, Utilities Code.
67	67	(4) "Retail public utility" has the meaning assigned
68	68	by Section 13.002, Water Code.
69	69	(5) "Revenue bond" means a public security, as defined
70	70	by Section 1201.002, Government Code, that is secured wholly by
71	71	revenue other than ad valorem taxes.
72	72	Sec. 11B. REVENUE BOND ELECTION REQUIRED. (a) The District
73	73	may not issue revenue bonds unless the issuance is first approved by
74	74	a majority of voters in the service area of the District voting in a
75	75	revenue bond election held for that purpose.
76	76	(b) For the purposes of this section, the service area of
77	77	the District includes the service area of any electric cooperative,
78	78	municipally owned utility, retail electric provider, or retail
79	79	public utility that has a contract with the District for the
80	80	authority to provide electric power or water to the cooperative,
81	81	provider, or utility.
82	82	(c) The Public Utility Commission of Texas shall determine
83	83	the service area of a retail electric provider for the purposes of
84	84	Subsection (b) of this section.
85	85	Sec. 11C. ORDERING REVENUE BOND ELECTION. (a) The District
86	86	shall order a revenue bond election in accordance with Chapter 3,
87	87	Election Code.
88	88	(b) For a revenue bond election, the District may order an
89	89	election that is to be held partly outside of the territory of the
90	90	District if necessary to comply with Section 11B of this Act.
91	91	Sec. 11D. CONTENTS OF REVENUE BOND ELECTION ORDER. The
92	92	revenue bond election order must distinctly state:
93	93	(1) the proposition language that will appear on the
94	94	ballot;
95	95	(2) the location of each polling place and the hours
96	96	that the polls will be open;
97	97	(3) the purpose for which the revenue bonds are to be
98	98	authorized;
99	99	(4) the principal amount of the revenue bonds to be
100	100	authorized;
101	101	(5) that revenue sufficient to pay the annual
102	102	principal of and interest on the revenue bonds is anticipated;
103	103	(6) any estimated changes in relevant rates or fees of
104	104	the District, and any electric cooperatives, municipally owned
105	105	utilities, retail electric providers, and retail public utilities
106	106	in the service area of the District, as applicable, if the revenue
107	107	bonds are authorized and the maximum interest rate of the revenue
108	108	bonds or any series of the revenue bonds, based on the market
109	109	conditions at the time of the election order;
110	110	(7) the maximum maturity date of the revenue bonds to
111	111	be authorized or that the revenue bonds may be issued to mature over
112	112	a specified number of years not to exceed 40;
113	113	(8) the aggregate amount of the outstanding principal
114	114	of the District's issued revenue bonds as of the beginning of the
115	115	fiscal year in which the election is ordered; and
116	116	(9) the aggregate amount of the outstanding interest
117	117	on the District's issued revenue bonds as of the beginning of the
118	118	fiscal year in which the election is ordered.
119	119	Sec. 11E. CONTENTS OF PROPOSITION. The proposition
120	120	submitted in the revenue bond election must distinctly state:
121	121	(1) the purpose for which the revenue bonds are to be
122	122	issued;
123	123	(2) the amount of the revenue bonds;
124	124	(3) the rate of interest on the revenue bonds; and
125	125	(4) the maturity date of the revenue bonds or that the
126	126	revenue bonds may be issued to mature serially over a specified
127	127	number of years not to exceed 40.
128	128	Sec. 11F. CONDUCT OF REVENUE BOND ELECTION. (a) The
129	129	general election laws govern a revenue bond election except as
130	130	provided by this section.
131	131	(b) A revenue bond election must be held on a uniform
132	132	election date provided by Section 41.001(a), Election Code.
133	133	(c) In addition to any notice required by Section 4.003(c),
134	134	Election Code, notice of a revenue bond election must be given by:
135	135	(1) publishing notice of the election in a newspaper
136	136	of general circulation published in the service area of the
137	137	District; and
138	138	(2) publishing notice of the election on the
139	139	District's Internet website, prominently and together with the
140	140	election order prescribed by Section 11D of this Act.
141	141	(d) The notice required by Subsection (c)(1) of this section
142	142	must be published on the same day in each of three successive weeks.
143	143	The first publication must be not less than 21 days before the date
144	144	of the revenue bond election.
145	145	(e) The District shall contract with the counties of the
146	146	relevant service area to provide election services in a manner
147	147	prescribed by Subchapter D, Chapter 31, Election Code.
148	148	Sec. 11G. BALLOT PROPOSITION. At a revenue bond election,
149	149	the ballots shall be printed to permit voting for or against the
150	150	proposition: "The issuance of bonds."
151	151	SECTION 3. Sections 11A, 11B, 11C, 11D, 11E, 11F, and 11G,
152	152	Chapter 426, Acts of the 45th Legislature, Regular Session, 1937,
153	153	as added by this Act, apply only to a revenue bond issued on or after
154	154	the effective date of this Act. A revenue bond issued before the
155	155	effective date of this Act is governed by the applicable law in
156	156	effect before the effective date of this Act, and the former law is
157	157	continued in effect for that purpose.
158	158	SECTION 4. (a) The legal notice of the intention to
159	159	introduce this Act, setting forth the general substance of this
160	160	Act, has been published as provided by law, and the notice and a
161	161	copy of this Act have been furnished to all persons, agencies,
162	162	officials, or entities to which they are required to be furnished
163	163	under Section 59, Article XVI, Texas Constitution, and Chapter 313,
164	164	Government Code.
165	165	(b) The governor, one of the required recipients, has
166	166	submitted the notice and Act to the Texas Commission on
167	167	Environmental Quality.
168	168	(c) The Texas Commission on Environmental Quality has filed
169	169	its recommendations relating to this Act with the governor,
170	170	lieutenant governor, and speaker of the house of representatives
171	171	within the required time.
172	172	(d) All requirements of the constitution and laws of this
173	173	state and the rules and procedures of the legislature with respect
174	174	to the notice, introduction, and passage of this Act have been
175	175	fulfilled and accomplished.
176	176	SECTION 5. This Act takes effect September 1, 2025.