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A BILL TO BE ENTITLED
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AN ACT
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relating to the definition of debt for the purposes of calculating |
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certain ad valorem tax rates of a taxing unit. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 26.012(7), Tax Code, is amended to read |
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as follows: |
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(7) "Debt" means[: |
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[(A)] a bond, warrant, certificate of |
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obligation, or other evidence of indebtedness owed by a taxing unit |
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that has been approved at an election and[: |
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[(i)] is payable from property taxes in |
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installments over a period of more than one year, not budgeted for |
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payment from maintenance and operations funds, and secured by a |
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pledge of property taxes,[; and |
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[(ii) meets one of the following |
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requirements: |
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[(a) has been approved at an election; |
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[(b) includes self-supporting debt; |
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[(c) evidences a loan under a state or |
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federal financial assistance program; |
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[(d) is issued for designated |
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infrastructure; |
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[(e) is a refunding bond; |
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[(f) is issued in response to an |
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emergency under Section 1431.015, Government Code; |
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[(g) is issued for renovating, |
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improving, or equipping existing buildings or facilities; |
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[(h) is issued for vehicles or |
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equipment; or |
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[(i) is issued for a project under |
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Chapter 311, Tax Code, or Chapter 222, Transportation Code, that is |
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located in a reinvestment zone created under one of those |
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chapters;] or |
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[(B)] a payment made under contract to secure |
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indebtedness of a similar nature issued by another political |
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subdivision on behalf of the taxing unit. |
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SECTION 2. Sections 26.012(9), (18-a), and (18-b), Tax |
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Code, are repealed. |
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SECTION 3. The changes in law made by this Act apply only to |
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a bond, warrant, certificate of obligation, or other evidence of |
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indebtedness for which the ordinance, order, or resolution |
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authorizing the issuance is adopted by the governing body of a |
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taxing unit on or after the effective date of this Act and for which |
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the taxing unit has not entered into a binding agreement before the |
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effective date of this Act that contemplates the issuance of the |
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debt. The changes in law made by this Act do not apply to a bond, |
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warrant, certificate of obligation, or other evidence of |
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indebtedness for which the ordinance, order, or resolution |
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authorizing the issuance was adopted by the governing body of a |
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taxing unit before the effective date of this Act or for which the |
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taxing unit has entered into a binding agreement before the |
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effective date of this Act that contemplates the issuance of such |
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debt, and the former law is continued in effect for that purpose. |
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For the purposes of this section, "binding agreement" includes a |
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development agreement, ordinance, order, or resolution that |
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authorizes or delegates to an appropriate officer of a taxing unit |
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the execution of a binding agreement at a later date. |
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SECTION 4. This Act takes effect September 1, 2023. |