CHAPTER 1471. BONDS FOR COUNTY ROADS

Statutes > Texas Statutes > GOVERNMENT CODE > TITLE 9. PUBLIC SECURITIES > CHAPTER 1471. BONDS FOR COUNTY ROADS

GOVERNMENT CODE

TITLE 9. PUBLIC SECURITIES

SUBTITLE I. SPECIFIC AUTHORITY FOR COUNTIES TO ISSUE SECURITIES

CHAPTER 1471. BONDS FOR COUNTY ROADS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1471.001. APPLICABILITY OF CHAPTER. This chapter applies

only to the following political subdivisions:

(1) a county, including a county operating under a special road

tax law;

(2) a commissioners precinct or a justice precinct of a county;

and

(3) a road district.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1471.002. CONFLICTS OF LAW. To the extent of a conflict

between this chapter and Chapter 1204, Chapter 1204 controls.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

SUBCHAPTER B. ISSUANCE OF BONDS

Sec. 1471.011. AUTHORITY TO ISSUE ROAD BONDS. (a) In this

section, "bonds" includes tax anticipation notes, bond

anticipation notes, and other obligations.

(b) A political subdivision may issue bonds in the manner

provided by this chapter and Section 52, Article III, Texas

Constitution, to:

(1) construct, purchase, maintain, or operate a macadamized,

graveled, or paved road or turnpike; or

(2) aid a purpose described by Subdivision (1).

valorem taxes to pay the interest on the bonds and provide a

sinking fund for the redemption of the bonds.

(d) The total amount of bonds issued under this chapter may not

exceed one-fourth of the assessed value of real property of the

political subdivision issuing the bonds.

(e) In determining the limitation imposed by Subsection (d), the

assessed value of property of the political subdivision is the

market value of the property as recorded by the chief appraiser

of the appraisal district that appraises property for the

political subdivision.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1471.012. EMERGENCY NOTES. (a) If money is not available,

a political subdivision may:

(1) declare an emergency to:

(A) pay the principal of and interest on bonds issued under this

chapter any part of which is payable from taxes; or

(B) meet any other need of the political subdivision; and

(2) issue tax or bond anticipation notes to borrow the money

needed.

(b) Notes issued under this section must mature not later than

one year after their date.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1471.013. TAX ANTICIPATION NOTES. (a) A political

subdivision may issue tax anticipation notes authorized by

Section 1471.012 for any purpose for which the political

subdivision is authorized to impose taxes under Subtitle C, Title

6, Transportation Code.

(b) Tax anticipation notes must be secured by the proceeds of

taxes to be imposed in the succeeding 12 months.

notes to impose a tax sufficient to pay:

(1) the principal of and interest on the notes; and

(2) the costs of collecting the taxes.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1471.014. BOND ANTICIPATION NOTES. (a) A political

subdivision may issue bond anticipation notes authorized by

Section 1471.012 for:

(1) any purpose for which bonds of the political subdivision

have been previously approved at an election; or

(2) refunding previously issued bond anticipation notes.

(b) A political subdivision may covenant with the purchasers of

the bond anticipation notes to use the proceeds of sale of any

bonds in the process of being issued to refund the bond

anticipation notes. An issuer making a covenant under this

subsection shall apply the proceeds received from the sale of the

bonds in the process of being issued to pay the principal of,

interest on, or redemption price of the bond anticipation notes.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1471.015. ELECTION ON ISSUANCE OF BONDS: COUNTY. (a) On

the motion of the commissioners court or on receipt of a petition

signed by a number of registered voters of the county equal to at

least one percent of the total votes cast in the county in the

most recent general election for governor, the court at a regular

or special session shall order an election to be held in the

county to determine whether the county shall:

(1) issue bonds to:

(A) construct, maintain, or operate a macadamized, graveled, or

paved road or turnpike; or

(B) aid a purpose described by Paragraph (A); and

(2) impose taxes on all property in the county subject to

taxation to pay the interest on the bonds and to provide a

sinking fund for the redemption of the bonds at maturity.

(b) A petition submitted under Subsection (a) that designates a

particular road or project or a portion of a road or project must

be accompanied by a written estimate of the cost of the road or

project prepared by the county engineer at the expense of the

county.

4, Election Code, the election order and notice of election under

this section must state:

(1) the purpose for which the bonds are to be issued;

(2) the amount of the bonds;

(3) the rate of interest; and

(4) that ad valorem taxes will be imposed annually on all

taxable property in the county in amounts sufficient to pay the

bonds at maturity.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1471.016. PETITION FOR ELECTION ON ISSUANCE OF BONDS:

PRECINCT OR ROAD DISTRICT. (a) A commissioners or justice

precinct or a road district may not issue bonds under this

chapter unless a petition is submitted to the commissioners court

of the county and an election is ordered under Section 1471.017.

(b) A petition under this section must:

(1) request the commissioners court of the county in which the

precinct or district is located to order an election to determine

whether:

(A) bonds of the precinct or district shall be issued in an

amount stated to:

(i) construct, maintain, or operate a macadamized, graveled, or

paved road or turnpike; or

(ii) aid an activity described in Subparagraph (i); and

(B) taxes shall be imposed on all taxable property in the

precinct or district in payment of the bonds; and

(2) be signed by:

(A) 50 or a majority of the registered voters of the precinct or

district; or

(B) all of the owners of property in the precinct or district as

determined by the county tax roll.

shall set the time and place for a hearing. The date of the

hearing may not be less than 15 days or more than 90 days after

the date the commissioners court orders the hearing. The county

clerk shall immediately issue a notice of the time and place of

the hearing.

(d) The notice of the hearing must:

(1) inform all interested persons of their right to appear at

the hearing and contend for or protest the ordering of the bond

election;

(2) state the amount of bonds proposed to be issued and describe

the precinct or district by its name or number;

(3) for a district:

(A) include a description of the property comprising the

district, including the district's estimated acreage and

boundaries, described in a manner reasonably calculated to inform

interested persons of the area comprising the district; and

(B) include a map or diagram of the area reasonably calculated

to show the boundaries of the district and the major roadways in

or adjacent to the district; and

(4) designate a county officer or employee from whom further

details may be obtained.

(e) The clerk shall execute notice under this section in the

same manner as required for an election under Section 1471.018.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1471.017. HEARING ON AND DETERMINATION OF PETITION:

PRECINCT OR ROAD DISTRICT. (a) At the hearing on a petition

submitted under Section 1471.016, the commissioners court shall

hear all matters pertaining to the proposed bond election. Any

interested person may appear before the court in person or by

attorney and contend for or protest the calling of the proposed

bond election.

(b) The commissioners court may order that an election be held

in the commissioners or justice precinct or road district on the

issue submitted in the petition if the court finds that:

(1) the petition is signed by the proper number of qualified

persons;

(2) the required notice has been given; and

(3) the proposed improvements would benefit all taxable property

in the precinct or district.

proposed to be issued if at the hearing the court finds the

change is necessary or desirable.

(d) The proposition submitted at the election must specify:

(1) the purpose for which the bonds are to be issued;

(2) the amount of the bonds;

(3) the rate of interest; and

(4) that ad valorem taxes are to be imposed annually on all

taxable property in the precinct or district in an amount

sufficient to pay the annual interest and provide a sinking fund

to pay the bonds at maturity.

(e) A proposition meets the requirements of this chapter if it

is in the following form:

"Authorizing the (name of precinct or district) to issue its

bonds in the total sum of $__________ and to impose annually ad

valorem taxes on all taxable property in the (precinct or

district) to pay the interest on the bonds and create a sinking

fund to redeem the principal at maturity for the purposes of the

purchase or acquisition of roads and the construction,

maintenance, and operation of macadamized, graveled, or paved

roads and turnpikes or in aid of those purposes inside or outside

the boundaries of the (precinct or district)."

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1471.018. NOTICE OF ELECTION. (a) Notice for all

elections held under this chapter must be given as required by

Chapter 4, Election Code. The commissioners court shall give

notice of an election to be held for a commissioners or justice

precinct or a road district by posting notice in at least three

public places in the precinct or district and at the county

courthouse door.

(b) The commissioners court may, in addition to the notice

required by Subsection (a), prescribe that notice of an election

or hearing for bonds to be issued for a precinct or district be

given by mail to:

(1) each registered voter in the precinct or district;

(2) each owner of property in the precinct or district as shown

on the tax roll of the county; and

(3) each person having an interest in property in the precinct

or district as may reasonably be ascertained.

addressed and mailed.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1471.019. RESULTS OF ELECTION. The commissioners court may

issue bonds on the faith and credit of the applicable political

subdivision if two-thirds of the voters voting in the election

approve the issuance of the bonds.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1471.020. EFFECT OF LACK OF NOTICE. Notice under Section

1471.016(d) or 1471.018(a) is not a prerequisite to and does not

affect the validity of a hearing or election to which the notice

relates.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1471.021. MATURITY. A bond issued under this chapter must

mature not later than 30 years after its date except as otherwise

provided by this chapter.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1471.022. DESIGNATION OF BONDS. (a) Bonds issued under

this chapter by the county as a whole must be designated as

"__________ (name of county) County Road Bonds."

(b) Bonds issued under this chapter for a commissioners or

justice precinct or a road district must:

(1) be designated as "Road Bonds"; and

(2) state on their face "The State of Texas," the name of the

county, and the number or corporate name of the precinct or

district issuing the bonds.

that the bonds are issued under Section 52, Article III, Texas

Constitution, and laws enacted under the constitution.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1471.023. DISPOSITION OF BOND PROCEEDS. (a) The

commissioners court has the custody and control of bonds or bond

anticipation notes issued under this chapter until sold under

Chapter 1201.

(b) The portion of the proceeds that represents capitalized

interest shall be placed in the county treasury to the credit of

the applicable political subdivision and may be used only to pay

interest due on the bonds or bond anticipation notes.

described in Subsection (b) are deposited and after the costs of

the issuance of the bonds or bond anticipation notes are paid

shall be placed in the county treasury to the credit of the

available road fund of the applicable political subdivision to be

used for the purposes for which the bonds were issued, including:

(1) payment of the following costs as approved by the

commissioners court:

(A) surveying;

(B) creation;

(D) operation or maintenance; and

(2) payment or establishment of a reasonable reserve to pay an

amount equal to not more than three years' interest on the notes

and bonds of the political subdivision, as provided in the bond

order or resolution.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1471.024. DUTIES OF COUNTY TREASURER. (a) The county

treasurer is the custodian of:

(1) all money collected under this chapter; and

(2) all taxes collected to pay principal of and interest on

bonds issued under this chapter.

(b) The county treasurer shall:

(1) deposit the money collected with the county depository in

the same manner as other money of the county; and

(2) promptly pay the principal of and interest on the bonds as

they become due from the money collected and deposited for that

purpose.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1471.025. DISBURSEMENT OF BOND PROCEEDS BY COUNTY

TREASURER. (a) The proceeds of county bonds may be paid out

only by the county treasurer on warrants:

(1) drawn on the available road fund;

(2) issued by the county clerk;

(3) countersigned by the county judge; and

(4) on certified accounts approved by the commissioners court.

(b) The proceeds of bonds issued on the faith and credit of a

commissioners or justice precinct or a road district may be paid

out only by the county treasurer on warrants:

(1) drawn on the available road fund of the applicable political

subdivision;

(2) issued by the county clerk;

(3) countersigned by the county judge; and

(4) approved by the commissioners court.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1471.026. INVESTMENT OF SINKING FUNDS. (a) The

commissioners court may invest money in a sinking fund

accumulated for the redemption and payment of any bonds issued

under this chapter in:

(1) bonds of the United States, this state, or a county,

municipality, school district, or road district of this state;

(2) bonds of the federal Farm Credit System; or

(3) certificates of indebtedness issued by the secretary of the

treasury of the United States.

(b) Sinking funds accumulated for the redemption and payment of

bonds issued under this chapter may not be invested in bonds the

terms of which provide for a maturity date after the date of

maturity of the bonds for which the sinking fund was created.

fund associated with the investment.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1471.027. USE OF BOND PROCEEDS OUTSIDE ROAD DISTRICT. A

road district may use the proceeds of bonds issued under this

chapter for road improvements located outside the district if the

commissioners court finds that the improvements are reasonable,

necessary, and beneficial to all taxable property in the

district.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1471.028. USE OF SURPLUS SINKING FUND. An amount remaining

in the sinking fund after the principal of and interest on the

bonds are fully paid may be used by a political subdivision:

(1) for the construction, maintenance, and operation of

macadamized, graveled, or paved roads or turnpikes;

(2) to aid a purpose described by Subdivision (1); or

(3) for a permanent improvement authorized by law as determined

by the officials of the political subdivision.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1471.029. ELECTION FOR REPURCHASE AND CANCELLATION OF

BONDS. (a) On receipt of a petition signed by at least 50

registered voters of the political subdivision issuing the bonds,

the commissioners court shall order an election to determine

whether road bonds in an amount equal to the unexpended and

unpledged proceeds remaining from the sale of bonds issued under

this chapter shall be repurchased, canceled, and revoked.

(b) The commissioners court shall hold an election ordered under

Subsection (a) in the same manner as the election at which the

bonds were originally authorized.

outstanding bonds from the holders if two-thirds of the voters

voting in the election approve the repurchase, cancellation, and

revocation.

(d) After repurchasing the bonds, the commissioners court shall:

(1) cancel and burn the bonds; and

(2) forward to the comptroller a certified copy of the minutes

of the commissioners court showing the repurchase, cancellation,

and destruction of the bonds.

(e) On receipt of a copy under Subsection (d)(2), the

comptroller shall promptly cancel the registration of the bonds.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

SUBCHAPTER C. REFINANCING ROAD DISTRICT BONDS THROUGH ASSESSMENTS

Sec. 1471.051. ALTERNATE REFUNDING BONDS AND CERTIFICATES OF

ASSESSMENT AUTHORIZED. A road district may issue refunding bonds

or certificates of assessment under this subchapter to refinance

any portion of any outstanding bonded indebtedness if:

(1) the district receives a petition that:

(A) requests the issuance of the bonds or certificates; and

(B) is signed by persons who own taxable real property in the

district that in total is valued at an amount at least equal to

66 percent of the appraised value of all taxable real property in

the district, as determined by the most recent certified

appraisal roll of the appraisal district in which the property is

located; and

(2) the district determines, after notice and public hearing

held in accordance with this subchapter, that the property in the

district will benefit from the refinancing.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1471.052. ASSESSMENT AS SECURITY. Bonds or certificates

issued under this subchapter must be secured by a pledge of all

or part of the money received by the road district from an

assessment made against all taxable real property in the district

under this subchapter.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1471.053. MATURITY. A bond or certificate issued under

this subchapter must mature not later than 30 years after its

date of issuance.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1471.054. PREPARATION OF ASSESSMENT. Before issuing bonds

or certificates under this subchapter, the road district by order

shall:

(1) determine, as appropriate, the amount necessary to pay all

or a part of the principal of and interest on:

(A) the refunding bonds on maturity; or

(B) the outstanding bonded indebtedness of the district;

(2) prepare a plan the district determines is equitable for

apportioning the amount determined under Subdivision (1) among

the record owners of real property in the district based on the

ratio that the appraised value of each lot or parcel in the

district bears to the total appraised value of real property in

the district; and

(3) hold a public hearing on the district's intention to issue

bonds or certificates.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1471.055. NOTICE OF HEARING. (a) Notice of the hearing

ordered under Section 1471.054 must provide:

(1) the date, time, place, and subject matter of the hearing;

(2) that refunding bonds or certificates of assessment are

proposed to be issued by the road district;

(3) the purpose for which the bonds or certificates are to be

issued;

(4) the amount determined under Section 1471.054(1); and

(5) the plan prepared by the district under Section 1471.054(2).

(b) Notice containing the information required by Subsection (a)

must be published in a newspaper of general circulation in the

county not later than the 30th day before the date of the

hearing.

the district shall mail to each owner of real property in the

district as determined from the most recent certified appraisal

roll of the appraisal district in which the property is located

notice containing:

(1) the information required by Subsection (a)(1); and

(2) an estimate of the amount of the assessment to be

apportioned to that owner's property.

(d) The failure of a property owner to receive notice of the

hearing and of the estimated assessment does not affect the

validity of the hearing or a subsequent assessment.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1471.056. IMPOSITION OF ASSESSMENT. (a) If, at the

conclusion of the hearing, the road district by order determines

that the property in the district will benefit from refinancing

under this subchapter, the district may:

(1) issue refunding bonds or certificates of assessment to pay

all or part of the district's bonded indebtedness; and

(2) impose the assessments as special assessments on the

property in the district.

(b) For assessments imposed under Subsection (a), the district:

(1) shall specify the method of payment and rate of interest of

the assessments; and

(2) may provide for payment in periodic installments in amounts

necessary to pay the principal of and interest on the refunding

bonds or certificates of assessment as accrued.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1471.057. APPEAL OF ASSESSMENT. (a) A property owner may

appeal an assessment under this subchapter by filing a notice of

appeal with the road district not later than the 30th day after

the date the assessment is adopted. After receiving notice of

appeal under this subsection, the district shall set a date to

hear the appeal.

(b) A property owner may appeal a district's decision on an

assessment made under this subchapter to a court by filing notice

of the appeal with the court not later than the 30th day after

the date of the district's final decision on the assessment.

required by Subsection (a) or (b) loses the right to appeal the

assessment.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1471.058. REASSESSMENT. (a) A road district may make a

new assessment of property assessed under this subchapter if an

assessment of the property is:

(1) set aside by a court;

(2) found excessive by the district; or

(3) determined invalid by the district.

(b) A district may reassess property if:

(1) at the time the bonds or certificates are issued under this

subchapter, the property is exempt from taxation under Subchapter

B, Chapter 11, Tax Code, or appraised under Subchapter C, D, or

E, Chapter 23, Tax Code; and

(2) the property subsequently loses its exemption or is not

eligible for appraisal under Subchapter C, D, or E, Chapter 23,

Tax Code.

omission or mistake in an assessment.

(d) Before making an assessment under Subsection (b) or (c), a

district must give notice and conduct a hearing in the manner

required for an original assessment.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1471.059. ADJUSTMENT OF VALUES FOLLOWING REASSESSMENT. (a)

In making a reassessment under Section 1471.058(b), the road

district shall assess the property using the property's market

value for the year preceding the year in which the bonds or

certificates are issued.

(b) The district shall proportionately reduce the assessment of

the other property in the district to reflect the value of the

reassessed property. The district shall refund to a property

owner the difference between the amount of the original

assessment and a new assessment under this subsection if the

property owner has paid the entire amount of the original

assessment.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1471.060. LIEN FOR UNPAID ASSESSMENT. (a) An assessment

under this subchapter, any interest, and any expenses of

collection or reasonable attorney's fees incurred are a lien

against the assessed property until paid.

(b) A lien under Subsection (a):

(1) is superior to any other lien except an ad valorem tax lien;

and

(2) is effective from the date the assessment is imposed until

the date the total amount of the assessment for the property is

paid.

the same manner as the commissioners court enforces an ad valorem

tax lien.

(d) The owner of assessed property is personally liable for the

payment of an assessment under this subchapter and may pay at any

time the entire amount of the assessment and accrued interest on

any lot or parcel. Liability for an assessment passes with the

property on a transfer of ownership.

(e) A lien for a supplemental assessment or reassessment is

effective even if the property has been released from a prior

lien under this subchapter.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1471.061. ISSUANCE AND FORM OF CERTIFICATES. (a) A road

district may issue and transfer, on terms determined by the

district, a certificate of assessment for each assessed lot or

parcel. A certificate of assessment may be issued under Chapter

1207 as if it were a bond. On making a supplemental assessment or

reassessment, the district shall provide a certificate of

assessment reflecting any change in the value of the original

assessment.

(b) A certificate must state:

(1) the amount of the lien on the assessed property;

(2) the liability of the property owner for the lien;

(3) the terms of transfer of the certificate;

(4) that the assessment was imposed and the certificate was

issued under this subchapter; and

(5) that the certificate is not an obligation of or secured by a

pledge of the faith or credit of a county in which the district

is located.

shown on the certificate.

(d) A holder of the certificate may enforce the assessment in

the same manner as the district may enforce assessments made

under this subchapter.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1471.062. ASSESSMENTS CONSIDERED TAXES. For purposes of a

title insurance policy issued under Title 11, Insurance Code, an

assessment under this subchapter and any interest on or expenses

or attorney's fees related to the assessment are considered

taxes.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Amended by:

Acts 2005, 79th Leg., Ch.

728, Sec. 11.121, eff. September 1, 2005.

SUBCHAPTER D. COMPENSATION BONDS

Sec. 1471.081. ELECTION AUTHORIZED. (a) On receipt of a

petition signed by 250 registered voters residing anywhere in the

county, the commissioners court shall order an election in the

county to determine whether bonds of the county shall be issued

to fully compensate a commissioners or justice precinct or a road

district for bonds authorized to be issued under a general or

special law adopted under Section 52, Article III, Texas

Constitution.

(b) At the election, the ballot proposition must include:

(1) the purpose for which the bonds are to be issued; and

(2) the question as to whether a tax shall be imposed on the

taxable property in the county to pay the interest on the bonds

and to provide a sinking fund for the redemption of the bonds.

authorized but not issued and sold or if the bonds have been sold

but the proceeds have not been spent, the ballot proposition must

state: "The issuance of county bonds for the construction of

district roads and the further construction, maintenance, and

operation of macadamized, graveled, or paved roads and turnpikes,

or in aid of these purposes, throughout the county."

(d) If the bonds of the precinct or district have been issued

and the proceeds have been applied to the construction of roads

in the precinct or district, the ballot proposition must state:

"The issuance of county bonds for the purchase of district roads

and the further construction, maintenance, and operation of

macadamized, graveled, or paved roads and turnpikes, or in aid of

these purposes, throughout the county."

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1471.082. ISSUANCE OF COUNTY BONDS. (a) If the

proposition to issue county bonds receives the required favorable

vote, the county shall issue the bonds in the amount stated in

the election order, but not in an amount that exceeds a

limitation imposed by the constitution or a statute.

(b) After the county issues the bonds, the commissioners court

shall set aside the amount necessary to fully compensate the

commissioners or justice precinct or road district for the

purpose for which the bonds were issued.

Section 1471.081(c) and the precinct or district bonds have not

been issued and sold, the commissioners court shall:

(1) apply the proceeds of the county bonds to the construction,

maintenance, and operation of the roads in the precinct or

district as contemplated by the election approving the precinct

or district bonds; and

(2) immediately cancel and destroy the unsold precinct or

district bonds.

(d) If the bonds are approved for the purpose described by

Section 1471.081(d), the roads of the precinct or district may

become a part of the county road system.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1471.083. EXCHANGE OF BONDS. (a) If county bonds are

authorized for commissioners or justice precinct or road district

bonds that have been issued and sold, an exchange of a like

amount of the county bonds may be made with the holder of any

outstanding bonds of the precinct or district.

(b) An agreement for an exchange under this section must:

(1) be by order of the commissioners court authorizing the

exchange; and

(2) contain the signed and acknowledged written consent of the

holder of the bonds in the form required by law for written

instruments.

and the county bonds to be given in exchange shall be submitted

to the attorney general for approval. The exchange is not

effective until the attorney general issues a certificate

approving the exchange.

(d) If the exchange takes effect under this section:

(1) the commissioners court shall cancel and destroy the bonds

of the precinct or district;

(2) the county may not impose the tax approved at the election

of the precinct or district authorizing the bonds; and

(3) the sinking fund associated with the bonds of the precinct

or district shall be transferred to the sinking fund account of

the county.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1471.084. DEPOSIT OF COUNTY BONDS AS GUARANTEE. (a) If

the commissioners court determines that an exchange cannot be

made under Section 1471.083, the court as soon as practicable

shall deposit with the county treasurer to the credit of the

interest and sinking fund account of the commissioners or justice

precinct or road district an amount of county bonds equal to the

amount of outstanding bonds of the precinct or district.

(b) Before depositing the county bonds under Subsection (a), the

commissioners court shall submit to the attorney general a copy

of the order authorizing the deposit and the county bonds to be

deposited. The county bonds may be deposited only if the attorney

general issues a certificate of approval.

(1) have the word "nonnegotiable" written across the face of the

bond; and

(2) state that the bonds are deposited to the credit of the

interest and sinking fund account of the precinct or district

named in the bonds as a guarantee of the payment of the

outstanding bonds of the precinct or district that have not been

exchanged.

(d) Coupons attached to county bonds to be deposited must have

the word "nonnegotiable" written on the coupons.

(e) After deposit of the county bonds:

(1) the sinking fund associated with the bonds of the precinct

or district shall be transferred to the sinking fund account of

the county; and

(2) the commissioners court may not impose the tax approved at

the election of the precinct or district authorizing the bonds.

(f) The commissioners court shall pay annually the interest on

the county bonds deposited under this section from taxes imposed

to pay interest on the county bonds and detach the coupon used

for payment. The payment shall be credited to the interest

account of the precinct or district, and the court shall use that

money to pay the interest on the outstanding bonds of the

precinct or district.

(g) From the taxes imposed to provide the sinking fund for the

county bonds, the commissioners court shall set aside annually in

the sinking fund the amount necessary for the retirement of the

county bonds. On maturity of the county bonds, the court shall

pay the bonds in full. The payment shall be credited to the

sinking fund of the precinct or district, and the court shall use

that money to pay in full all outstanding bonds of the precinct

or district.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1471.085. TERMS AND FORM OF COMPENSATION BONDS; USE OF

SURPLUS BONDS. (a) County bonds issued for a purpose described

by Section 1471.081(c) or (d) shall:

(1) be issued in similar denominations, bear the same rate of

interest, and have the same date of maturity and similar payment

options as the outstanding bonds of the commissioners or justice

precinct or road district; and

(2) in all respects be similar to the outstanding precinct or

district bonds except that the bonds:

(A) are county obligations instead of precinct or district

obligations; and

(B) shall be dated after the election at which the county bonds

were authorized.

(b) County bonds issued in excess of the amount required to

exchange, offset, and retire the outstanding precinct or district

bonds must mature within 40 years.

required to exchange, offset, and retire the outstanding precinct

or district bonds shall be credited to the available road fund of

the county. The commissioners court may spend the proceeds

throughout the county only:

(1) to construct, maintain, or operate a macadamized, graveled,

or paved road or turnpike; or

(2) in aid of a purpose described by Subdivision (1).

(d) Except as provided by this subchapter, the issuance and sale

of bonds authorized by this subchapter and the imposition of

taxes for the bonds shall be as required by law for other county

bonds.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1471.086. CREATION OF ROAD DISTRICT CONTAINING ENTIRE

TERRITORY OF EXISTING DISTRICT. (a) If a road district is

created that contains all of the territory of an existing

commissioners or justice precinct or road district that has

outstanding road bonds, the newly created district:

(1) shall fully compensate the existing precinct or district in

an amount equal to the amount of outstanding road bonds; and

(2) may issue bonds to:

(A) purchase or construct roads in the existing precinct or

district;

(B) further construct, maintain, or operate macadamized,

graveled, or paved roads or turnpikes in the new district; or

(b) The compensation shall be made and the bonds issued in the

form and manner for county bonds under Sections 1471.081-1471.085

except that the petition must be signed by 50 or a majority of

the registered voters of the new district.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1471.087. CREATION OF ROAD DISTRICT CONTAINING PORTION OF

TERRITORY OF EXISTING DISTRICT. (a) If a road district is

created that contains a portion of the territory of an existing

precinct or district that has outstanding road bonds, the newly

created district may issue bonds to:

(1) purchase roads in the existing precinct or district; or

(2) further construct macadamized, graveled, or paved roads or

turnpikes in the new district.

(b) The bonds shall be issued in the form and manner prescribed

for county bonds under Sections 1471.081-1471.086.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

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Texas Codes and Statutes

CHAPTER 1471. BONDS FOR COUNTY ROADS