Bill Text: TX HB2436 | 2023-2024 | 88th Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to the sale of bonds by certain special purpose districts.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2023-05-11 - Placed on General State Calendar [HB2436 Detail]

Download: Texas-2023-HB2436-Introduced.html

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By: Frazier H.B. No. 2436

A BILL TO BE ENTITLED
AN ACT
relating to the sale of bonds by certain special purpose districts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 49.183, Texas Water Code, is amended to
read as follows:
Sec. 49.183. BOND SALES. (a) Bonds issued by a district
shall be sold either by private sale or by public sale.
(b) Bonds sold by public sale shall be competitively bid and
awarded to the bidder whose bid produces the lowest net effective
interest rate to the district.
(c) Before any bonds are sold by a district pursuant to
competitive bid, the board shall publish an appropriate notice of
the sale:
(1) at least one time not less than 10 days before the
date of sale in a newspaper of general circulation in the county or
counties in which the district is located; and
(2) at least one time in one or more recognized
financial publications of general circulation in the state as
approved by the state attorney general.
(d) Before issuing its bonds by private sale, the board
shall review with its financial adviser the process of selling its
bonds by public or private sale and make a determination that
selling its bonds by private sale will result in a net effective
interest rate to the district equal to or less than it will
accomplish by public sale.
(e) In connection with the issuance of bonds by private
sale, the governing body of a district may:
(1) authorize the principal amount of bonds that may
be issued, principal amount to mature each year, and maximum rate of
interest to be borne by the bonds, and any other detail the
governing body deems relevant to the issuance of the bonds; and
(2) delegate to any officer or director of the issuer
the authority to effect the sale of the bonds.
(f) In exercising the authority delegated by the governing
body, a director or officer may establish the terms and details
related to the issuance and sale of the bonds, including
(1) the form of the bonds;
(2) the principal amount of the bonds and the amount of
the bonds to mature each year;
(3) the dates, price, interest rates, interest payment
dates, principal payment dates, and redemption feature of the
bonds; and
(4) any other detail relating to the issuance and sale
of the bonds as specified by the governing body of the issuer in the
proceedings authorizing the issuance of the bonds.
(g) At the time the district enters into a contract to sell
its bonds by private sale, the district's financial advisor shall
review with the board, or its authorized representative, other
recently completed sales of district bonds, including the net
effective interest rate thereon and issuance costs.
(h) A finding or determination made by a director or officer
acting under the authority delegated to such director or officer
has the same force and effect as a finding or determination made by
the governing body of the district.
(i) A district's bonds are negotiable instruments within
the meaning and purposes of the Business & Commerce Code. A
district's bonds may be issued and bear interest in accordance with
Chapters 1201, 1204, and 1371, Government Code, and Subchapters
A-C, Chapter 1207, Government Code. Except for this subsection,
this section does not apply to special water authorities or
districts described in Section 49.181(h)(1)(D).
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2023.