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A BILL TO BE ENTITLED
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AN ACT
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relating to approval by voters prior to the issuance of revenue |
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bonds by river authorities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Subtitle C, Title 9, Government |
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Code, is amended to read as follows: |
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SUBTITLE C. PROVISIONS APPLICABLE TO SECURITIES ISSUED BY MORE |
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THAN ONE TYPE OF LOCAL GOVERNMENT OR ENTITY |
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SECTION 2. Subtitle C, Title 9, Government Code, is amended |
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by adding Chapter 1253 to read as follows: |
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CHAPTER 1253. REVENUE BOND ELECTIONS FOR RIVER AUTHORITIES |
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Sec. 1253.001. DEFINITIONS. In this chapter: |
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(1) "Electric cooperative" has the meaning assigned by |
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Section 11.003, Utilities Code. |
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(2) "Municipally owned utility" has the meaning |
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assigned by Section 11.003, Utilities Code. |
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(3) "Retail electric provider" has the meaning |
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assigned by Section 31.002, Utilities Code. |
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(4) "Retail public utility" has the meaning assigned |
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by Section 13.002, Water Code. |
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(5) "Revenue bond" means a public security, as defined |
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by Section 1201.002, that is secured wholly by revenue other than ad |
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valorem taxes. |
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(6) "River authority" means a district created under |
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the authority of Section 59, Article XVI, Texas Constitution, as a |
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regional water management entity to provide water development and |
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planning services and other services to a river basin or portion of |
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a river basin. |
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Sec. 1253.002. APPLICABILITY. This chapter applies only to |
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river authorities. |
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Sec. 1253.003. REVENUE BOND ELECTION REQUIRED. (a) A river |
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authority may not issue revenue bonds unless the issuance is first |
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approved by a majority of voters in the authority's service area |
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voting in an election held for that purpose. |
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(b) For the purposes of this section, the service area of a |
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river authority includes the service area of any electric |
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cooperative, municipally owned utility, retail electric provider, |
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or retail public utility that has a contract with the river |
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authority for the authority to provide electric power or water to |
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the cooperative, provider, or utility. |
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(c) The Public Utility Commission of Texas shall determine |
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the service area of a retail electric provider for the purposes of |
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Subsection (b). |
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Sec. 1253.004. ORDERING AN ELECTION. (a) The governing |
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body of the river authority shall order an election under this |
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chapter in accordance with Chapter 3, Election Code. |
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(b) For an election under this chapter the governing body |
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may order an election that is to be held partly outside of the |
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territorial jurisdiction of the authority if necessary to comply |
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with Section 1253.003. |
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Sec. 1253.005. CONTENTS OF ELECTION ORDER. (a) The |
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document ordering an election under this chapter must distinctly |
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state: |
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(1) the proposition language that will appear on the |
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ballot; |
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(2) the location of each polling place and the hours |
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that the polls will be open; |
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(3) the purpose for which the revenue bonds are to be |
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authorized; |
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(4) the principal amount of the revenue bonds to be |
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authorized; |
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(5) that revenue sufficient to pay the annual |
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principal of and interest on the revenue bonds is anticipated; |
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(6) any estimated changes in relevant rates or fees of |
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the river authority, and any electric cooperatives, municipally |
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owned utilities, retail electric providers, and retail public |
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utilities in the service area of the river authority, as |
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applicable, if the revenue bonds are authorized and the maximum |
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interest rate of the revenue bonds or any series of the revenue |
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bonds, based on the market conditions at the time of the election |
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order; |
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(7) the maximum maturity date of the revenue bonds to |
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be authorized or that the revenue bonds may be issued to mature over |
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a specified number of years not to exceed 40; |
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(8) the aggregate amount of the outstanding principal |
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of the river authority's issued revenue bonds as of the beginning of |
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the fiscal year in which the election is ordered; and |
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(9) the aggregate amount of the outstanding interest |
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on the river authority's issued revenue bonds as of the beginning of |
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the fiscal year in which the election is ordered. |
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Sec. 1253.006. CONTENTS OF PROPOSITION. The proposition |
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submitted in the election must distinctly state: |
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(1) the purpose for which the revenue bonds are to be |
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issued; |
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(2) the amount of the revenue bonds; |
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(3) the rate of interest on the revenue bonds; and |
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(4) the maturity date of the revenue bonds or that the |
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revenue bonds may be issued to mature serially over a specified |
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number of years not to exceed 40. |
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Sec. 1253.007. CONDUCT OF ELECTION. (a) The general |
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election laws govern an election held under this chapter except as |
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provided by this section. |
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(b) A revenue bond election must be held on a uniform |
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election date provided by Section 41.001(a), Election Code. |
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(c) In addition to any notice required by Section 4.003(c), |
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Election Code, notice of a revenue bond election must be given by: |
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(1) publishing notice of the election in a newspaper |
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of general circulation published in the service area of the river |
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authority; and |
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(2) publishing notice of the election on the river |
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authority's Internet website, prominently and together with the |
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election order prescribed by Section 1253.005. |
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(d) The notice required by Subsection (c)(1) must be |
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published on the same day in each of three successive weeks. The |
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first publication must be not less than 21 days before the date of |
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the election. |
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(e) The governing body of the river authority shall contract |
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with the counties of the relevant service area to provide election |
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services in a manner prescribed by Subchapter D, Chapter 31, |
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Election Code. |
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Sec. 1253.008. BALLOT PROPOSITION. At the election, the |
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ballots shall be printed to permit voting for or against the |
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proposition: "The issuance of bonds." |
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Sec. 1253.009. CONFLICT WITH OTHER LAWS. This chapter |
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prevails over a conflicting or inconsistent provision of a special |
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law that governs a river authority. |
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Sec. 1253.010. NO ADDITIONAL AUTHORITY TO ISSUE BONDS. |
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This chapter does not provide additional authority for a river |
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authority to issue bonds. |
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SECTION 3. Chapter 1253, Government Code, as added by this |
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Act, applies only to a bond issued on or after the effective date of |
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this Act. A bond issued before the effective date of this Act is |
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governed by the applicable law in effect before the effective date |
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of this Act, and the former law is continued in effect for that |
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purpose. |
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SECTION 4. This Act takes effect September 1, 2019. |