Bill Text: TX SB606 | 2021-2022 | 87th Legislature | Introduced

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

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2021-03-11 - Referred to Local Government [SB606 Detail]

Download: Texas-2021-SB606-Introduced.html

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87R7094 SLB-F
By: Alvarado S.B. No. 606

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. Section 49.183, Water Code, is amended by
amending Subsections (a), (b), and (e) and adding Subsections
(a-1), (f), (g), (h), and (i) to read as follows:
(a) Bonds [Except for refunding bonds, or bonds sold to a
state or federal agency or to the North American Development Bank,
bonds] issued by a district shall be sold either by:
(1) private sale; or
(2) public sale after advertising for and receiving
competitive sealed bids.
(a-1) Bonds sold by public sale [and] shall be awarded to
the bidder whose bid produces the lowest net effective interest
rate to the district.
(b) Before [Except for refunding bonds, or bonds sold to a
state or federal agency or to the North American Development Bank,
before] any bonds are sold by a district by public sale, 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.
(e) Subsections (a), (a-1), and (b) do not apply to district
bonds issued pursuant to Chapter 1371, Government Code.
(f) For bonds sold by private sale, the district may:
(1) authorize:
(A) the principal amount of bonds that may be
issued;
(B) the principal amount to mature each year;
(C) the maximum rate of interest to be borne by
the bonds; and
(D) any other term the district considers
relevant to the issuance of the bonds; and
(2) delegate to any officer or director of the
district the authority to carry out the sale of the bonds.
(g) In exercising the authority delegated by the district
under Subsection (f), the district may establish the terms 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 term relating to the issuance and sale of
the bonds as specified by the district in the proceedings
authorizing the issuance of the bonds.
(h) A finding or determination made by a director or officer
acting under the authority delegated to that director or officer
has the same force and effect as a finding or determination made by
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
through C, Chapter 1207, Government Code. Except for this
subsection, this section does not apply to a special water
authority or district described by Section 49.181(h)(1)(D).
SECTION 2. Section 49.183(c), Water Code, is repealed.
SECTION 3. Section 49.183, Water Code, as amended by this
Act, applies only to the sale of bonds by a special purpose district
on or after the effective date of this Act. The sale of bonds by a
special purpose district before the effective date of this Act is
governed by the law in effect when bonds were sold, and the former
law is continued in effect for that purpose.
SECTION 4. 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, 2021.