Bill Text: TX HB3483 | 2025-2026 | 89th Legislature | Comm Sub

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Bill Title: Relating to the authority of a special utility district to issue a public security.

Sponsorship: Slight Partisan Bill (Republican 2-1)

Status: (Engrossed - Dead) 2025-05-28 - Placed on intent calendar [HB3483 Detail]

Download: Texas-2025-HB3483-Comm_Sub.html

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By: Gámez, et al. (Senate Sponsor - Perry) H.B. No. 3483
(In the Senate - Received from the House May 9, 2025;
May 20, 2025, read first time and referred to Committee on Local
Government; May 26, 2025, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 6, Nays 0,
1 present not voting; May 26, 2025, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR H.B. No. 3483 By: West

A BILL TO BE ENTITLED
AN ACT
relating to the authority of a special utility district to issue a
public security.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1371.001(4), Government Code, is amended
to read as follows:
(4) "Issuer" means:
(A) a home-rule municipality that:
(i) adopted its charter under Section 5,
Article XI, Texas Constitution;
(ii) has a population of 50,000 or more; and
(iii) has outstanding long-term
indebtedness that is rated by a nationally recognized rating agency
for municipal securities in one of the four highest rating
categories for a long-term obligation;
(B) a conservation and reclamation district
created and organized as a river authority under Section 52,
Article III, or Section 59, Article XVI, Texas Constitution;
(C) a joint powers agency organized and operating
under Chapter 163, Utilities Code;
(D) a metropolitan rapid transit authority,
regional transportation authority, or coordinated county
transportation authority created, organized, or operating under
Chapter 451, 452, or 460, Transportation Code;
(E) a conservation and reclamation district
organized or operating as a navigation district under Section 52,
Article III, or Section 59, Article XVI, Texas Constitution;
(F) a district organized or operating under
Section 59, Article XVI, Texas Constitution, that has all or part of
two or more municipalities within its boundaries;
(G) a state agency, including a state institution
of higher education;
(H) a hospital authority created or operating
under Chapter 262 or 264, Health and Safety Code, in a county that:
(i) has a population of more than 3.3
million; or
(ii) is included, in whole or in part, in a
standard metropolitan statistical area of this state that includes
a county with a population of more than 2.5 million;
(I) a hospital district in a county that has a
population of more than 2.5 million;
(J) a nonprofit corporation organized to
exercise the powers of a higher education loan authority under
Section 53B.47(e), Education Code;
(K) a county:
(i) that has a population of more than 3.3
million; or
(ii) that, on the date of issuance of
obligations under this chapter, has authorized, outstanding, or any
combination of authorized and outstanding, indebtedness of at least
$100 million secured by and payable from the county's ad valorem
taxes and the authorized long-term indebtedness of which is rated
by a nationally recognized rating agency of securities issued by
local governments in one of the four highest rating categories for a
long-term obligation;
(L) an independent school district that has an
average daily attendance of 50,000 or more as determined under
Section 48.005, Education Code;
(M) a municipality or county operating under
Chapter 334, Local Government Code;
(N) a district created under Chapter 335, Local
Government Code;
(O) a junior college district that has a total
headcount enrollment of 40,000 or more based on enrollment in the
most recent regular semester; [or]
(P) a conservation and reclamation district
organized or operating as a special utility district under Section
59, Article XVI, Texas Constitution, and Chapter 65, Water Code; or
(Q) an issuer, as defined by Section 1201.002,
that has:
(i) a principal amount of at least $100
million in outstanding long-term indebtedness, in long-term
indebtedness proposed to be issued, or in a combination of
outstanding or proposed long-term indebtedness; and
(ii) some amount of long-term indebtedness
outstanding or proposed to be issued that is rated in one of the
four highest rating categories for long-term debt instruments by a
nationally recognized rating agency for municipal securities,
without regard to the effect of any credit agreement or other form
of credit enhancement entered into in connection with the
obligation.
SECTION 2. Section 65.501, Water Code, is amended to read as
follows:
Sec. 65.501. ISSUANCE OF BONDS AND NOTES. (a) A [The]
district may issue its bonds or notes for the purpose of purchasing,
constructing, acquiring, owning, operating, repairing, improving,
or extending any district works, improvements, facilities, plants,
equipment, and appliances needed to accomplish the purposes listed
in Section 65.012 [of this code], including works, improvements,
facilities, plants, equipment, and appliances needed to provide a
waterworks system, sanitary sewer system, storm sewer system, or
solid waste disposal system, or to provide for solid waste
collection or fire-fighting services and facilities.
(b) Commission rules requiring review and approval of
projects, as described by Section 49.181, must provide for a
simplified review and approval process for projects to be financed
by revenue bonds issued under this subchapter, in accordance with
Sections 65.502 through 65.507.
SECTION 3. This Act takes effect September 1, 2025.
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