Bill Text: TX HB4576 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to approval by voters prior to the issuance of revenue bonds by the San Jacinto River Authority.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-04-08 - Recommendations filed with the Speaker [HB4576 Detail]
Download: Texas-2021-HB4576-Introduced.html
87R1531 MP-D | ||
By: Metcalf | H.B. No. 4576 |
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relating to approval by voters prior to the issuance of revenue | ||
bonds by the San Jacinto River Authority. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Sections 10 and 10b, Chapter 426, Acts of the | ||
45th Legislature, Regular Session, 1937, are amended to read as | ||
follows: | ||
Sec. 10. The [ |
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payable from ad valorem taxes nor to incur any form of continuing | ||
obligations or indebtedness for purposes of effecting improvements | ||
comprehended in the plan of organization and administration of the | ||
District, nor incur any indebtedness in the form of a continuing | ||
charge upon land or properties within the District, unless such | ||
proposition shall have been submitted to the qualified property | ||
taxpaying voters of the District, or, in appropriate case, such | ||
voters of a defined area or political subdivision within the | ||
District, and approved by a majority of such electors voting | ||
thereon. | ||
Section 10b. The Authority shall have the authority and is | ||
hereby authorized to issue from time to time its negotiable revenue | ||
bonds for the purpose of making investigations and assembling data; | ||
for the purposes of purchasing, acquiring, and/or condemning lands, | ||
easements, rights-of-way and other properties; and for the purpose | ||
of constructing, repairing, improving and extending any | ||
structures, dams, reservoirs, transmission facilities, water | ||
treatment, water supply, sewage and other waste gathering, | ||
transmission, treatment and disposal facilities, for developing | ||
park and recreation facilities; and for the purposes of acquiring, | ||
constructing, improving, repairing and extending any other | ||
properties and facilities deemed appropriate by the Board of | ||
Directors of the Authority in the exercise of powers granted the | ||
Authority in Section 3 and elsewhere in this Act. Any one or more or | ||
a combination of the foregoing purposes may be combined into a | ||
single issue of bonds. Such bonds shall be issued in accordance | ||
with, and may be secured by and payable from any or all the revenues | ||
of the Authority permitted by, Section 10c hereof, including, but | ||
not limited to, the proceeds of any one or more contracts between | ||
the Authority and any persons, firms, corporations, cities and | ||
political subdivisions. Revenue bonds issued under this section | ||
must be approved in an election as described by Sections 11A, 11B, | ||
11C, 11D, 11E, 11F, and 11G of this Act. | ||
If and when the Legislature remits the ad valorem tax in the | ||
counties for a certain period of years, the Directors may in their | ||
discretion if necessary with approval of the Commissioners Court of | ||
the county in the watershed use part or all of the taxes remitted to | ||
said counties for the purpose of paying back to the United States of | ||
America or any of its agencies or others the money borrowed by the | ||
Authority for the purposes herein mentioned. | ||
SECTION 2. Chapter 426, Acts of the 45th Legislature, | ||
Regular Session, 1937, is amended by adding Sections 11A, 11B, 11C, | ||
11D, 11E, 11F, and 11G to read as follows: | ||
Sec. 11A. DEFINITIONS. In this Act: | ||
(1) "Electric cooperative" has the meaning assigned by | ||
Section 11.003, Utilities Code. | ||
(2) "Municipally owned utility" has the meaning | ||
assigned by Section 11.003, Utilities Code. | ||
(3) "Retail electric provider" has the meaning | ||
assigned by Section 31.002, Utilities Code. | ||
(4) "Retail public utility" has the meaning assigned | ||
by Section 13.002, Water Code. | ||
(5) "Revenue bond" means a public security, as defined | ||
by Section 1201.002, Government Code, that is secured wholly by | ||
revenue other than ad valorem taxes. | ||
Sec. 11B. REVENUE BOND ELECTION REQUIRED. (a) The District | ||
may not issue revenue bonds unless the issuance is first approved by | ||
a majority of voters in the service area of the District voting in a | ||
revenue bond election held for that purpose. | ||
(b) For the purposes of this section, the service area of | ||
the District includes the service area of any electric cooperative, | ||
municipally owned utility, retail electric provider, or retail | ||
public utility that has a contract with the District for the | ||
authority to provide electric power or water to the cooperative, | ||
provider, or utility. | ||
(c) The Public Utility Commission of Texas shall determine | ||
the service area of a retail electric provider for the purposes of | ||
Subsection (b) of this section. | ||
Sec. 11C. ORDERING REVENUE BOND ELECTION. (a) The District | ||
shall order a revenue bond election in accordance with Chapter 3, | ||
Election Code. | ||
(b) For a revenue bond election, the District may order an | ||
election that is to be held partly outside of the territory of the | ||
District if necessary to comply with Section 11B of this Act. | ||
Sec. 11D. CONTENTS OF REVENUE BOND ELECTION ORDER. The | ||
revenue bond election order must distinctly state: | ||
(1) the proposition language that will appear on the | ||
ballot; | ||
(2) the location of each polling place and the hours | ||
that the polls will be open; | ||
(3) the purpose for which the revenue bonds are to be | ||
authorized; | ||
(4) the principal amount of the revenue bonds to be | ||
authorized; | ||
(5) that revenue sufficient to pay the annual | ||
principal of and interest on the revenue bonds is anticipated; | ||
(6) any estimated changes in relevant rates or fees of | ||
the District, and any electric cooperatives, municipally owned | ||
utilities, retail electric providers, and retail public utilities | ||
in the service area of the District, as applicable, if the revenue | ||
bonds are authorized and the maximum interest rate of the revenue | ||
bonds or any series of the revenue bonds, based on the market | ||
conditions at the time of the election order; | ||
(7) the maximum maturity date of the revenue bonds to | ||
be authorized or that the revenue bonds may be issued to mature over | ||
a specified number of years not to exceed 40; | ||
(8) the aggregate amount of the outstanding principal | ||
of the District's issued revenue bonds as of the beginning of the | ||
fiscal year in which the election is ordered; and | ||
(9) the aggregate amount of the outstanding interest | ||
on the District's issued revenue bonds as of the beginning of the | ||
fiscal year in which the election is ordered. | ||
Sec. 11E. CONTENTS OF PROPOSITION. The proposition | ||
submitted in the revenue bond election must distinctly state: | ||
(1) the purpose for which the revenue bonds are to be | ||
issued; | ||
(2) the amount of the revenue bonds; | ||
(3) the rate of interest on the revenue bonds; and | ||
(4) the maturity date of the revenue bonds or that the | ||
revenue bonds may be issued to mature serially over a specified | ||
number of years not to exceed 40. | ||
Sec. 11F. CONDUCT OF REVENUE BOND ELECTION. (a) The | ||
general election laws govern a revenue bond election except as | ||
provided by this section. | ||
(b) A revenue bond election must be held on a uniform | ||
election date provided by Section 41.001(a), Election Code. | ||
(c) In addition to any notice required by Section 4.003(c), | ||
Election Code, notice of a revenue bond election must be given by: | ||
(1) publishing notice of the election in a newspaper | ||
of general circulation published in the service area of the | ||
District; and | ||
(2) publishing notice of the election on the | ||
District's Internet website, prominently and together with the | ||
election order prescribed by Section 11D of this Act. | ||
(d) The notice required by Subsection (c)(1) of this section | ||
must be published on the same day in each of three successive weeks. | ||
The first publication must be not less than 21 days before the date | ||
of the revenue bond election. | ||
(e) The District shall contract with the counties of the | ||
relevant service area to provide election services in a manner | ||
prescribed by Subchapter D, Chapter 31, Election Code. | ||
Sec. 11G. BALLOT PROPOSITION. At a revenue bond election, | ||
the ballots shall be printed to permit voting for or against the | ||
proposition: "The issuance of bonds." | ||
SECTION 3. Sections 11A, 11B, 11C, 11D, 11E, 11F, and 11G, | ||
Chapter 426, Acts of the 45th Legislature, Regular Session, 1937, | ||
as added by this Act, apply only to a revenue bond issued on or after | ||
the effective date of this Act. A revenue bond issued before the | ||
effective date of this Act is governed by the applicable law in | ||
effect before the effective date of this Act, and the former law is | ||
continued in effect for that purpose. | ||
SECTION 4. (a) The legal notice of the intention to | ||
introduce this Act, setting forth the general substance of this | ||
Act, has been published as provided by law, and the notice and a | ||
copy of this Act have been furnished to all persons, agencies, | ||
officials, or entities to which they are required to be furnished | ||
under Section 59, Article XVI, Texas Constitution, and Chapter 313, | ||
Government Code. | ||
(b) The governor, one of the required recipients, has | ||
submitted the notice and Act to the Texas Commission on | ||
Environmental Quality. | ||
(c) The Texas Commission on Environmental Quality has filed | ||
its recommendations relating to this Act with the governor, | ||
lieutenant governor, and speaker of the house of representatives | ||
within the required time. | ||
(d) All requirements of the constitution and laws of this | ||
state and the rules and procedures of the legislature with respect | ||
to the notice, introduction, and passage of this Act have been | ||
fulfilled and accomplished. | ||
SECTION 5. This Act takes effect September 1, 2021. |