Bill Text: TX HB1869 | 2021-2022 | 87th Legislature | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the definition of debt for the purposes of calculating certain ad valorem tax rates of a taxing unit.
Spectrum: Partisan Bill (Republican 7-0)
Status: (Passed) 2021-06-15 - Effective on 9/1/21 [HB1869 Detail]
Download: Texas-2021-HB1869-Comm_Sub.html
Bill Title: Relating to the definition of debt for the purposes of calculating certain ad valorem tax rates of a taxing unit.
Spectrum: Partisan Bill (Republican 7-0)
Status: (Passed) 2021-06-15 - Effective on 9/1/21 [HB1869 Detail]
Download: Texas-2021-HB1869-Comm_Sub.html
87R20030 E | |||
By: Burrows, Bonnen, Middleton, et al. | H.B. No. 1869 | ||
Substitute the following for H.B. No. 1869: | |||
By: Sanford | C.S.H.B. No. 1869 |
|
||
|
||
relating to the definition of debt for the purposes of calculating | ||
certain ad valorem tax rates of a taxing unit. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 26.012, Tax Code, is amended by amending | ||
Subdivision (7) and adding Subdivisions (9), (18-a), and (18-b) to | ||
read as follows: | ||
(7) "Debt" means: | ||
(A) a bond, warrant, certificate of obligation, | ||
or other evidence of indebtedness owed by a taxing unit that: | ||
(i) is payable [ |
||
in installments over a period of more than one year, not budgeted | ||
for payment from maintenance and operations funds, and secured by a | ||
pledge of property taxes; and | ||
(ii) meets one of the following | ||
requirements: | ||
(a) has been approved at an election; | ||
(b) includes self-supporting debt; | ||
(c) evidences a loan under a state or | ||
federal financial assistance program; | ||
(d) is issued for designated | ||
infrastructure; | ||
(e) is a refunding bond; or | ||
(f) is issued in response to an | ||
emergency under Section 1431.015, Government Code;[ |
||
(B) a payment made under contract to secure | ||
indebtedness of a similar nature issued by another political | ||
subdivision on behalf of the taxing unit. | ||
(9) "Designated infrastructure" means infrastructure, | ||
including a facility or equipment, for the following purposes: | ||
(A) streets, roads, or highways; | ||
(B) telecommunications; | ||
(C) cyber security; or | ||
(D) as part of any utility system, water supply | ||
project, water plant, wastewater plant, water and wastewater | ||
distribution or conveyance facility, wharf, dock, or flood control, | ||
and drainage project. | ||
(18-a) "Refunding bond" means a bond or other | ||
obligation issued for refunding or refinancing purposes under | ||
Chapter 1207 or 1371, Government Code. | ||
(18-b) "Self-supporting debt" means the portion of a | ||
bond, warrant, certificate of obligation, or other evidence of | ||
indebtedness described by Subdivision (7)(A)(i) designated by the | ||
governing body of a political subdivision as being repaid from a | ||
source other than property taxes. | ||
SECTION 2. The changes in law made by this Act apply only to | ||
a bond, warrant, certificate of obligation, or other evidence of | ||
indebtedness for which the ordinance, order, or resolution | ||
authorizing issuance was adopted by the governing body of the | ||
taxing unit on or after the effective date of this Act. | ||
SECTION 3. This Act takes effect September 1, 2021. |