Bill Text: TX HB1869 | 2021-2022 | 87th Legislature | Enrolled


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-Enrolled.html
 
 
  H.B. No. 1869
 
 
 
 
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, parking structures, 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)  police stations, fire stations, or other
  public safety facilities, jails, juvenile detention facilities, or
  judicial facilities, and any facilities that are physically
  attached to the facilities described by this paragraph;
                     (F)  as part of any school district; or
                     (G)  as part of any hospital district created by
  general or special law that includes a teaching hospital.
               (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 the issuance is adopted by the governing body of a
  taxing unit on or after the effective date of this Act and for which
  the taxing unit has not entered into a binding agreement before the
  effective date of this Act that contemplates the issuance of the
  debt. The changes in law made by this Act do not apply to a bond,
  warrant, certificate of obligation, or other evidence of
  indebtedness for which the ordinance, order, or resolution
  authorizing the issuance was adopted by the governing body of a
  taxing unit before the effective date of this Act or for which the
  taxing unit has entered into a binding agreement before the
  effective date of this Act that contemplates the issuance of such
  debt, and the former law is continued in effect for that purpose.
  For the purposes of this section, "binding agreement" includes a
  development agreement, ordinance, order, or resolution that
  authorizes or delegates to an appropriate officer of a taxing unit
  the execution of a binding agreement at a later date.
         SECTION 3.  This Act takes effect September 1, 2021.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1869 was passed by the House on May 5,
  2021, by the following vote:  Yeas 111, Nays 29, 2 present, not
  voting; that the House refused to concur in Senate amendments to
  H.B. No. 1869 on May 28, 2021, and requested the appointment of a
  conference committee to consider the differences between the two
  houses; and that the House adopted the conference committee report
  on H.B. No. 1869 on May 30, 2021, by the following vote:  Yeas 72,
  Nays 67, 3 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 1869 was passed by the Senate, with
  amendments, on May 25, 2021, by the following vote:  Yeas 20, Nays
  10, 1 present, not voting; at the request of the House, the Senate
  appointed a conference committee to consider the differences
  between the two houses; and that the Senate adopted the conference
  committee report on H.B. No. 1869 on May 29, 2021, by the following
  vote:  Yeas 20, Nays 10, 1 present, not voting.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor       
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