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
 
 
  By: Burrows, et al. (Senate Sponsor - Bettencourt) H.B. No. 1869
         (In the Senate - Received from the House May 6, 2021;
  May 10, 2021, read first time and referred to Committee on Local
  Government; May 22, 2021, reported adversely, with favorable
  Committee Substitute by the following vote:  Yeas 5, Nays 2;
  May 22, 2021, sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR H.B. No. 1869 By:  Bettencourt
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  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 [solely] from property taxes
  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;
                                 (f)  is issued in response to an
  emergency under Section 1431.015, Government Code;
                                 (g)  is issued for renovating,
  improving, or equipping existing buildings or facilities;
                                 (h)  is issued for vehicles or
  equipment; or
                                 (i)  is issued for a project under
  Chapter 311, Tax Code, or Chapter 222, Transportation Code, that is
  located in a reinvestment zone created under one of those
  chapters;[,] or
                     (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, equipment, rights-of-way, or land, for the
  following purposes:
                     (A)  streets, roads, highways, bridges,
  sidewalks, parks, landfills, or airports;
                     (B)  telecommunications, wireless
  communications, information technology systems, applications,
  hardware, or software;
                     (C)  cybersecurity;
                     (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;
                     (E)  as part of any school district;
                     (F)  as part of any hospital district created by
  general or special law that includes a teaching hospital; or
                     (G)  police stations, fire stations, or other
  public safety facilities, jails, juvenile detention facilities, or
  judicial facilities.
               (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.
 
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