HB3483 - Relating to the authority of a special utility district to issue a public security.

      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.     * * * * *