Bill Text: TX HB2784 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to the issuance of certain bonds by municipal utility districts.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-03-13 - Referred to Land & Resource Management [HB2784 Detail]
Download: Texas-2023-HB2784-Introduced.html
88R8264 ANG-D | ||
By: Holland | H.B. No. 2784 |
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relating to the issuance of certain bonds by municipal utility | ||
districts. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 54.505, Water Code, is amended to read as | ||
follows: | ||
Sec. 54.505. ELECTION ON TAX BONDS. Bonds payable solely | ||
from revenues may be issued by resolution or order of the board | ||
without an election. Except as provided by Section 54.514(h), | ||
bonds [ |
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partly [ |
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if the bonds are approved by a two-thirds [ |
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election called and held for that purpose. An election is not | ||
required to pledge revenues to the payment of bonds. | ||
SECTION 2. Section 54.514, Water Code, is amended by adding | ||
Subsection (h) to read as follows: | ||
(h) Refunding bonds payable wholly or partly from ad valorem | ||
taxes may be issued without an election under Section 54.505 only if | ||
the district reduces the rate of ad valorem tax on all taxable | ||
property within the district by an amount that would offset the | ||
amount saved by refinancing the bonds. | ||
SECTION 3. Subchapter F, Chapter 54, Water Code, is amended | ||
by adding Section 54.523 to read as follows: | ||
Sec. 54.523. PROHIBITION ON ISSUING CERTAIN BONDS. A | ||
district may not issue any bonds payable wholly or partly from ad | ||
valorem taxes if the district has outstanding bonds that are | ||
payable wholly or partly from ad valorem taxes. | ||
SECTION 4. This Act takes effect September 1, 2023. |