CHAPTER 1477. OBLIGATIONS FOR OTHER COUNTY PURPOSES
GOVERNMENT CODE
TITLE 9. PUBLIC SECURITIES
SUBTITLE I. SPECIFIC AUTHORITY FOR COUNTIES TO ISSUE SECURITIES
CHAPTER 1477. OBLIGATIONS FOR OTHER COUNTY PURPOSES
SUBCHAPTER A. BONDS FOR FACILITIES TO BE LEASED TO PUBLIC OR
PRIVATE ENTITIES
Sec. 1477.001. AUTHORITY TO ACQUIRE PROPERTY FOR LEASE TO PUBLIC
OR PRIVATE ENTITY. (a) The commissioners court of a county may
acquire real property and may construct or acquire a building or
other facility for the purpose of leasing the real property,
building, or other facility to:
(1) a political subdivision or state agency for public use; or
(2) an individual, private corporation, or other private entity
for use in manufacturing or another commercial activity.
(b) The commissioners court may not acquire real property under
Subsection (a) by eminent domain.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.002. AUTHORITY TO ISSUE BONDS. To develop and
diversify the economy of this state and eliminate unemployment or
underemployment in this state under the authority granted by
Section 52-a, Article III, Texas Constitution, the commissioners
court may issue and sell bonds to finance an action taken under
Section 1477.001.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.003. BOND PAYMENTS FROM REVENUE OR TAXES. The
commissioners court may provide for payment of the principal of
and interest on bonds issued under this subchapter by:
(1) pledging all or part of the revenue from a lease of all or
part of the real property, building, or other facility financed
by the bonds, after deduction of reasonable operation and
maintenance costs;
(2) imposing an annual ad valorem tax; or
(3) combining those sources.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.004. ELECTION REQUIRED TO SECURE BONDS WITH TAXES. A
county may not issue bonds under this subchapter that are payable
in whole or in part from ad valorem taxes unless the bonds are
authorized by a majority of the registered voters of the county
voting on the issue.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.005. CONTENTS OF ORDINANCE, ORDER, OR RESOLUTION
AUTHORIZING BONDS. In the ordinance, order, or resolution
authorizing the issuance of bonds under this subchapter, the
commissioners court may:
(1) provide for the deposit and accounting of funds and the
establishment and maintenance of an interest and sinking fund, a
reserve fund, or other fund; and
(2) make additional covenants relating to the:
(A) bonds;
(B) pledged revenue; or
(C) operation and maintenance of any real property, building, or
other facility, the revenue of which is pledged for bond
payments.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.006. ADOPTION AND EXECUTION OF DOCUMENTS. The
commissioners court may adopt and have executed any proceeding or
instrument necessary and convenient:
(1) in the issuance of a bond under this subchapter; or
(2) in the acquisition and lease of any real property, building,
or other facility under Section 1477.001.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.007. MATURITY. A bond issued under this subchapter
must mature not later than 40 years after its date.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.008. IMPOSITION OF TAX. (a) The commissioners court
may annually impose ad valorem taxes to pay the principal of and
interest on bonds issued under this subchapter that are payable
in whole or in part from ad valorem taxes only if the taxes are
approved at an election held under Section 1477.004.
(b) The commissioners court may not impose ad valorem taxes to
pay the principal of or interest on bonds issued under this
subchapter payable wholly from revenue from one or more leases or
other contracts made under this subchapter.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.009. GRANTS FOR PRISONS OR LAW ENFORCEMENT FACILITIES
NOT PROHIBITED. This subchapter does not prohibit a county from
making a grant of money or property to an agency of the state to
assist the agency in acquiring or developing a site for a:
(1) prison;
(2) law enforcement detention facility; or
(3) community corrections facility as defined by Section
509.001.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
SUBCHAPTER B. BONDS FOR WATER SUPPLY FOR COUNTY PURPOSES
Sec. 1477.051. APPLICABILITY OF SUBCHAPTER. This subchapter
applies only to a county that adopted the law codified by this
subchapter by a unanimous vote of the members of the
commissioners court before September 2, 1963.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.052. DEFINITION. In this subchapter, "project" means
any acquisition, construction, repair, or maintenance authorized
and undertaken under Section 1477.053.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.053. AUTHORITY TO ACQUIRE WATER SUPPLY. (a) The
commissioners court of the county may acquire by purchase,
construction, or otherwise an adequate source of surface or
subterranean fresh water for supplying water to the county's
courthouse or for other county purposes.
(b) To further an acquisition under Subsection (a), the
commissioners court may purchase, construct, repair, and
maintain:
(1) a pool, lake, or reservoir;
(2) a well;
(3) a dam; and
(4) any water treatment and distribution facility as may be
required.
(c) The county must comply with the applicable water permit
provisions of Title 2, Water Code.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.054. LIMITATION ON COST. (a) The total cost of
projects undertaken by the county under this subchapter may not
exceed $250,000, excluding interest.
(b) The par value of bonds issued under this subchapter for a
project may not exceed $250,000.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.055. AUTHORITY TO ISSUE BONDS AND IMPOSE AD VALOREM
TAXES. (a) To pay the costs of a project, the county may issue
bonds payable from and secured by a pledge of the net revenue of
the project. The cost of a project may include:
(1) legal, fiscal, and engineering expenses; and
(2) interest during the construction of the project.
(b) If provided in the order issuing a bond, bonds issued under
Subsection (a) may be additionally secured by an ad valorem tax
imposed under Section 9, Article VIII, Texas Constitution. If the
county places any part of the ad valorem tax in a permanent
improvement fund, only the ad valorem taxes in that fund may be
used as the additional security.
(c) Before a county may issue bonds under Subsection (a) to pay
for a project, the bonds must be approved in an election held
under Section 1477.057. If an ad valorem tax is to be imposed
under Subsection (b) to secure bonds, the tax must also be
approved at the election held to approve the issuance of the
bonds.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.056. AMOUNT OF TAX. (a) If bonds issued under this
subchapter are to be secured by a tax, the commissioners court
shall impose a tax sufficient to pay the interest on the bonds as
the interest accrues and the principal as the principal matures.
(b) The order authorizing the issuance of bonds may provide that
the amount of tax to be collected each year may be reduced to the
extent money is available from pledged project revenue for the
payment of interest and principal.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.057. ELECTION. (a) Before construction of a project
may begin and before a project may be improved, repaired, or
extended under Section 1477.063, the commissioners court by
resolution must order an election.
(b) In addition to the requirements provided by Chapter 3,
Election Code, the election order must:
(1) describe the proposed project;
(2) state the amount, rate of interest, and maturity dates of
bonds to be issued to pay for the proposed project;
(3) state whether a tax will be imposed to redeem the bonds; and
(4) state the amount of any tax to be imposed to redeem the
bonds.
(c) If a majority of the voters in the county approve the
issuance of bonds under this subchapter, the commissioners court
shall issue the bonds as provided by this subchapter.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.058. CONTENTS OF ORDER AUTHORIZING BONDS. The order
authorizing issuance of bonds under this subchapter to pay for a
project may contain:
(1) reasonable and proper provisions for protecting and
enforcing the rights and remedies of the bondholders, including
covenants that state the duties of the county relating to:
(A) the acquisition of property for the project;
(B) the construction, maintenance, operation, repair, and
insurance of the project; and
(C) the custody, protection, and application of all money
related to the project;
(2) a statement of the rights and remedies of the bondholders;
and
(3) other provisions that the commissioners court considers
reasonable and proper for the security of the bondholders,
including covenants prescribing:
(A) each event that constitutes a default; and
(B) the rights, liabilities, powers, and duties that arise on
breach by the county of a duty or obligation.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.059. MATURITY. A bond issued under this subchapter
must mature not later than 40 years after its date.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.060. SIGNATURES; REGISTRATION BY COUNTY TREASURER.
(a) A bond issued under this subchapter must be:
(1) signed by the county judge; and
(2) attested by the county clerk.
(b) The county treasurer shall register a bond issued under this
subchapter but is not required to sign the bond.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.061. SALE OF BONDS. The commissioners court shall
determine the manner of sale of bonds issued under this
subchapter.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.062. USE OF BOND PROCEEDS. (a) The proceeds of bonds
issued under this subchapter may only be used to pay the cost of
the project for which the bonds were issued.
(b) The county shall disburse the proceeds of the bonds in
accordance with any restrictions provided in the order
authorizing the bonds.
(c) The bondholders have a lien on the proceeds until the
proceeds are applied.
(d) The bond proceeds, pending their use for the construction of
the project, may be invested in direct obligations of the United
States having maturities not more than 91 days from the date of
investment.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.063. ADDITIONAL BONDS. (a) Unless otherwise provided
in the bond order, if the proceeds of bonds issued to pay for a
project are not sufficient to pay the cost of the project, the
county may issue additional bonds under this subchapter not to
exceed the amount of the deficit.
(b) If permitted by the order originally authorizing bonds to
pay for a project, the county may issue additional bonds for
improving, repairing, or extending the project.
(c) Bonds issued under Subsection (b):
(1) may be payable:
(A) solely from a pledge of the net revenue of the project; or
(B) from the net revenue of the project and the imposition of an
ad valorem tax; and
(2) must be approved at an election in the same manner as bonds
originally issued to pay the costs of the project.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.064. RATES AND CHARGES. (a) If bonds issued under
this subchapter are secured solely by a pledge of net revenue of
the project, the commissioners court shall contract for and
impose rates and charges for water supplied by the project that
will be sufficient to:
(1) operate and maintain the project;
(2) pay when due the principal of and interest on the bonds; and
(3) establish any reserves provided in the order authorizing the
issuance of the bonds.
(b) A bond secured solely by a pledge of net revenue:
(1) is not a debt of the county issuing the bond;
(2) may be a charge only on pledged revenue of a project;
(3) may not be included in determining the power of the county
to issue bonds or incur other debt for any purpose authorized by
law; and
(4) must contain the following provision: "The holder of this
bond is not entitled to demand payment of this obligation out of
any money raised by taxation."
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.065. TAXES PLEDGED TO PAY BONDS. A bond issued under
this subchapter that is secured wholly or partially by a pledge
of a tax imposed under Section 9, Article VIII, Texas
Constitution, is considered to be payable wholly from that tax
for the purpose of determining the availability of taxing power
of the county to pay an obligation that is payable from that tax.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.066. BONDHOLDER'S RIGHT TO MANDAMUS. (a) The holder
of a bond issued under this subchapter is entitled, by mandamus
or other proceedings in court, to enforce the holder's rights
against:
(1) the county;
(2) the county's employees and agents; and
(3) the employees of the county's agents.
(b) A bondholder's rights include the right to require the
county to:
(1) impose and collect sufficient rates and charges to carry out
the agreements contained in the bond order; and
(2) perform all agreements and covenants contained in the bond
order and the duties arising from those agreements and covenants.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.067. REFUNDING BONDS. Bonds issued to refund bonds
issued under this subchapter may only be:
(1) exchanged for bonds being refunded; or
(2) sold and delivered to provide money to pay matured or
redeemable bonds maturing or redeemable not later than six months
after the date of issuance of the refunding bonds.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.068. EXEMPTION FROM ASSESSMENT OR TAXATION. (a) A
county is not required to pay any assessment on a project or any
part of a project.
(b) A bond issued under this subchapter, the transfer of the
bond, and the income from the bond, including any profit made
from the sale of the bond, are exempt from taxation by this state
or by a political subdivision of this state.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.069. COUNTY USE OF WATER. A county shall pay for
water used by the county for its own facilities from general
funds of the county legally available for that purpose, and free
service is prohibited.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.070. SALE OF WATER NOT NEEDED FOR COUNTY PURPOSES.
(a) The commissioners court may sell, deliver, and distribute
any water of the project that is not needed for county purposes
to a municipal corporation or political subdivision of this
state, or an individual, corporation, or company under terms that
the court determines are in the best interests of the county.
(b) The cost of supplying water from a project under Subsection
(a), including any increase in the cost of acquisition, storage,
treatment, and distribution facilities, is considered a cost of
the project.
(c) The commissioners court may not sell water under Subsection
(a):
(1) if an adequate public water supply is available to the
municipal corporation, political subdivision, individual,
corporation, or company at the time the law codified by this
subchapter was adopted by the county; or
(2) for irrigation purposes.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.071. EMINENT DOMAIN. (a) In exercising any power
granted by this subchapter, a county may acquire real property
and easements by the exercise of the power of eminent domain in
accordance with Chapter 21, Property Code.
(b) The commissioners court shall determine the amount and
character of interest in real property and easements to be
acquired by the exercise of the power of eminent domain.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.072. RELOCATION OR ALTERATION EXPENSE. If a county,
in the exercise of a power granted by this subchapter, including
the power of eminent domain or the power of relocation, makes
necessary the relocation, rerouting, or alteration of the
construction of a highway, railroad, electric transmission line,
pipeline, or telephone or telegraph property or facility, the
relocation, rerouting, or alteration of construction must be
accomplished at the sole expense of the county. In this section,
"sole expense" means the actual cost of the relocation,
rerouting, or alteration of construction to provide comparable
replacement without enhancement of the facility, after deduction
of the net salvage value derived from the old facility.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.073. ESSENTIAL GOVERNMENTAL FUNCTION. A county, in
accomplishing the purposes of this subchapter, is performing an
essential governmental function.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
SUBCHAPTER C. NATURAL GAS SYSTEM FOR COUNTY BUILDINGS IN CERTAIN
COUNTIES
Sec. 1477.101. APPLICABILITY OF SUBCHAPTER. This subchapter
applies only to a county in which:
(1) the commissioners court adopts this subchapter by an order
approved by a majority vote of the court's members; and
(2) the county seat is an unincorporated community or city with
a population of more than 5,000, according to the most recent
federal census, on the date on which the order is adopted.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.102. AUTHORITY TO ACQUIRE NATURAL GAS SYSTEM. The
commissioners court of the county may purchase or construct a
natural gas system for supplying natural gas to county buildings
adequately and dependably.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.103. NATURAL GAS SYSTEM FACILITIES. The county may
construct, repair, and maintain natural gas supply or
distribution facilities as required to supply natural gas to
county buildings.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.104. AUTHORITY TO ISSUE BONDS. To pay the cost of
purchasing or constructing a natural gas system under this
subchapter, the county may issue bonds payable from and secured
by a pledge of the net revenue of the system. The cost of the
system may include:
(1) legal, fiscal, and engineering expenses;
(2) interest that accrues during the construction of the system;
and
(3) the cost of supplying gas under Section 1477.119, including
any increase in the cost of distribution lines or facilities.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.105. BONDS NOT PAYABLE FROM TAXES. (a) A bond issued
under this subchapter:
(1) is not a debt of the county;
(2) may be a charge only on the revenue pledged for the payment
of the bond; and
(3) may not be included in determining the power of the county
to issue bonds or incur other indebtedness for any purpose
authorized by law.
(b) Each bond issued under this subchapter must contain the
following provision: "The holder of this obligation is not
entitled to demand payment of this obligation from any money
raised by taxation."
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.106. NOTICE OF INTENTION TO ISSUE BONDS. (a) The
commissioners court of the county may not authorize bonds under
this subchapter until the court gives notice of its intention to
issue the bonds.
(b) The notice must state, as to the proposed bonds:
(1) the maximum amount of the issue;
(2) the maximum interest rate;
(3) the maximum maturity; and
(4) the time and place at which the court intends to authorize
the bonds.
(c) The notice must be published in a newspaper of general
circulation in the county once a week for two consecutive weeks,
with the first publication being at least 14 full days before the
date set for authorization of the bonds.
(d) The commissioners court may authorize the bonds at the time
and place specified in the notice except as provided by Section
1477.107.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.107. ELECTION. (a) If, before the bonds are
authorized, the commissioners court receives a petition
requesting an election on the issuance of the bonds that is
signed by more than 10 percent of the county's registered voters
who are resident owners of taxable property in the county, the
court may not proceed unless a proposition for the issuance of
the bonds is approved at an election held for that purpose.
(b) The Election Code applies to an election under this
subchapter except as otherwise provided by this subchapter.
(c) In addition to the notice required by Section 4.003,
Election Code, a substantial copy of the resolution calling the
election shall be published in a newspaper of general circulation
in the county once a week for two consecutive weeks, with the
first publication being at least 14 full days before the
election.
(d) The election returns shall be made to the court within five
days of the election.
(e) The court may authorize the bonds only if the issuance is
approved by a majority of the qualified voters of the county
voting in the election.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.108. CONTENTS OF ORDER AUTHORIZING BONDS. An order
authorizing the issuance of bonds under this subchapter may
contain:
(1) reasonable and proper provisions for protecting and
enforcing the rights or remedies of the bondholders, including
covenants that state the duties of the county relating to:
(A) the acquisition of property for the natural gas system;
(B) the construction, maintenance, operation, repair, and
insurance of the system; and
(C) the custody, protection, and application of all money
related to the system;
(2) a statement of the rights and remedies of the bondholders;
and
(3) other provisions that the commissioners court considers
reasonable and proper for the security of the bondholders,
including covenants prescribing:
(A) each event that constitutes a default; and
(B) the rights, liabilities, powers, and duties that arise on
the breach by the county of a duty or obligation.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.109. MATURITY. A bond issued under this subchapter
must mature not later than 40 years after its date.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.110. SIGNATURES; REGISTRATION BY COUNTY TREASURER.
(a) A bond issued under this subchapter must be signed by the
county judge and attested by the county clerk.
(b) The county treasurer shall register a bond issued under this
subchapter but is not required to sign the bond.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.111. SALE OF BONDS. The commissioners court shall
determine the manner of sale of bonds issued under this
subchapter.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.112. USE OF BOND PROCEEDS. (a) The county shall
disburse the proceeds of bonds issued under this subchapter in
accordance with any restrictions provided in the order
authorizing the bonds.
(b) The bondholders have a lien on the proceeds until the
proceeds are applied.
(c) The bond proceeds, pending their use for the construction of
the project, may be invested in direct obligations of the United
States having maturities not more than 91 days from the date of
investment.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.113. ADDITIONAL BONDS. (a) Unless otherwise provided
by the order authorizing the bonds, if the proceeds of bonds
issued to pay for a natural gas system are not sufficient to pay
the cost of the system, the county may issue additional bonds
under this subchapter not to exceed the amount of the deficit.
(b) If permitted by the order originally authorizing bonds to
pay for a natural gas system, the county may issue additional
bonds for improving, repairing, or extending the system.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.114. GAS RATES AND CHARGES. The commissioners court
shall contract for and impose rates and charges for gas supplied
by the natural gas system that will be sufficient to:
(1) operate and maintain the system;
(2) pay when due the principal of and interest on any bonds
issued under this subchapter; and
(3) establish any reserves provided for in the order authorizing
the issuance of the bonds.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.115. BONDHOLDER'S RIGHT TO MANDAMUS. (a) A holder of
a bond issued under this subchapter is entitled, by mandamus or
other proceedings in court, to enforce the holder's rights
against:
(1) the county;
(2) county employees and agents; and
(3) the employees of the county's agents.
(b) A bondholder's rights include the right to require the
county to:
(1) impose and collect sufficient rates and charges to carry out
the agreements contained in the bond order; and
(2) perform all agreements and covenants contained in the bond
order and the duties arising from those agreements or covenants.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.116. REFUNDING BONDS. Bonds issued to refund bonds
issued under this subchapter may only be:
(1) exchanged for bonds being refunded; or
(2) sold and delivered to provide money to pay matured or
redeemable bonds maturing or redeemable not later than six months
after the date of issuance of the refunding bonds.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.117. EXEMPTION FROM ASSESSMENT OR TAXATION. (a) A
county is not required to pay any assessment on a natural gas
system or any part of a natural gas system acquired or
constructed under this subchapter.
(b) A bond issued under this subchapter, a transfer of the bond,
and the income from the bond, including any profit made from the
sale of the bond, are exempt from taxation by this state or a
political subdivision of this state.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.118. COUNTY USE OF GAS. The county shall pay for gas
used by the county for its own facilities from general funds of
the county legally available for that purpose, and free service
is prohibited.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.119. SALE OF GAS NOT NEEDED FOR COUNTY PURPOSES. The
commissioners court may sell, deliver, and distribute natural gas
of a natural gas system purchased or constructed under this
subchapter that is not needed for county purposes to a municipal
corporation or political subdivision of this state, or an
individual, corporation, or company under terms that the court
determines are in the best interests of the county.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.120. EMINENT DOMAIN. (a) The county may not acquire
a natural gas system or a facility of a natural gas system under
this subchapter by the exercise of the power of eminent domain or
exercise the power of eminent domain under this subchapter
outside the county's boundaries. The county may acquire land or
an easement for a purpose authorized by this subchapter by the
exercise of the power of eminent domain in the manner provided by
Chapter 21, Property Code.
(b) The commissioners court shall determine the amount of and
character of interest in the land or easement to be acquired by
the exercise of the power of eminent domain.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.121. RELOCATION OR ALTERATION EXPENSE. If a county,
in the exercise of a power under this subchapter, including the
power of eminent domain or the power of relocation, makes
necessary the relocation or rerouting of, or alteration of the
construction of, a highway, railroad, electric transmission line
or pipeline, or telegraph or telephone property or facility, the
relocation or rerouting or alteration of construction must be
accomplished at the sole expense of the county.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.122. ESSENTIAL GOVERNMENTAL FUNCTION. A county, in
accomplishing the purposes of this subchapter, is performing an
essential governmental function.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
SUBCHAPTER D. OBLIGATIONS FOR FIRE-FIGHTING EQUIPMENT
Sec. 1477.151. AUTHORITY TO PURCHASE FIRE-FIGHTING EQUIPMENT.
The commissioners court of a county may purchase fire trucks and
other fire-fighting equipment to be used for the protection and
preservation of bridges, county shops, county warehouses, and
other county property located in the county but outside the
boundaries of municipalities.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.152. AUTHORITY TO ISSUE OBLIGATIONS AND IMPOSE TAXES.
(a) The county may issue time warrants and bonds of the county
for a purchase under Section 1477.151 and may impose taxes for
the payment of those time warrants or bonds. The county shall
deposit the taxes in the general fund of the county.
(b) The time warrants or bonds must be authorized by a majority
of the qualified voters voting at an election held for that
purpose by the commissioners court.
(c) The county must issue the time warrants or bonds and impose
taxes in compliance with Subtitles A and C.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.153. LIMIT ON AMOUNT OF OBLIGATIONS. A county may
issue time warrants or bonds under this subchapter only in an
amount that will at all times leave unencumbered taxes in an
amount sufficient to pay all current expenses from the county's
general fund.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
SUBCHAPTER E. CERTIFICATES OF INDEBTEDNESS FOR FIREFIGHTER
TRAINING FACILITIES
Sec. 1477.201. AUTHORITY TO ISSUE CERTIFICATES OF INDEBTEDNESS.
The commissioners court of a county may issue certificates of
indebtedness to acquire, construct, repair, renovate, improve, or
equip firefighter training facilities for the county and to
acquire property in connection with that purpose.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.202. AUTHORITY TO IMPOSE AND PLEDGE AD VALOREM TAX.
The commissioners court shall impose and pledge annual county ad
valorem taxes under Section 9, Article VIII, Texas Constitution,
in an amount sufficient to pay the principal of and interest on
certificates of indebtedness as they become due.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.203. LIMIT ON AMOUNT OF INDEBTEDNESS. The aggregate
principal amount of certificates of indebtedness issued by a
county under this subchapter may not exceed $5 million.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.204. ELECTION. (a) The commissioners court may issue
certificates of indebtedness under this subchapter only if the
certificates are approved by a majority of the qualified voters
voting at an election held for that purpose by the commissioners
court.
(b) An election under this subchapter shall be held on the next
uniform election date authorized by Section 41.001, Election
Code, that occurs not earlier than the 20th day after the date on
which the election is called.
(c) The commissioners court shall order the ballot at the
election to be printed to permit voting for or against the
proposition: "Issuing certificates of indebtedness by the county
to acquire, purchase, construct, repair, renovate, improve, or
equip firefighter training facilities or to purchase real or
personal property in connection with those facilities."
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.205. MATURITY. A certificate of indebtedness issued
under this subchapter must mature not later than 40 years after
its date.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.206. OPERATION OF FIREFIGHTER TRAINING FACILITIES.
(a) The commissioners court may:
(1) operate and maintain the county's firefighter training
facilities; and
(2) set and collect charges for:
(A) services performed at those facilities; and
(B) information furnished to others by the use of those
facilities.
(b) The commissioners court shall pay the expenses of operating
and maintaining the county's firefighter training facilities
from:
(1) charges collected under Subsection (a); and
(2) any other available county funds.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
SUBCHAPTER F. BONDS FOR SURVEYS, MAPS, AND PLATS IN COUNTIES WITH
POPULATION OF 500,000 OR MORE
Sec. 1477.251. APPLICABILITY OF SUBCHAPTER. This subchapter
applies only to a county with a population of 500,000 or more.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.252. AUTHORITY TO ISSUE BONDS AND IMPOSE TAXES. (a)
If the subdivisions of surveys in a county are irregularly
numbered or if the blocks and subdivisions of municipalities in
the county are not numbered or are irregularly numbered, causing
difficulties for the county tax assessor-collector, the
commissioners court of the county may:
(1) make a survey and acquire related maps and plats of blocks
and subdivisions in the county; and
(2) furnish to the county tax assessor-collector:
(A) block books showing the description of each block and
subdivision in the county;
(B) the names of the record owners of each parcel of property in
each block book, if known; and
(C) other information relating to Paragraphs (A) and (B) that
will assist in the performance of the duties of the tax
assessor-collector.
(b) The commissioners court may issue bonds to pay the cost of
taking an action under Subsection (a).
(c) The commissioners court may impose taxes under Section 9,
Article VIII, Texas Constitution, to pay for bonds issued under
Subsection (b).
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.253. ELECTION PROPOSITION. (a) At an election to
approve the issuance of bonds under this subchapter, the
commissioners court may submit one or more separate propositions
for the issuance of bonds.
(b) Each proposition submitted at a bond election under this
subchapter may include one or more of the purposes authorized by
Section 1477.252.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.254. BONDS OBLIGATION OF COUNTY. (a) A bond issued
under this subchapter is an obligation of and a charge against
the county issuing the bond.
(b) Except as provided by this subchapter, a county must issue
bonds under this subchapter and impose taxes in compliance with
applicable provisions of Subtitles A, C, and D.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
SUBCHAPTER G. REVENUE BONDS FOR IMPROVEMENTS TO ATTRACT VISITORS
OR TOURISTS IN CERTAIN COUNTIES
Sec. 1477.301. APPLICABILITY OF SUBCHAPTER. This subchapter
applies only to a county:
(1) with a population of more than 3.3 million; or
(2) with a population of more than 90,000 that borders the
United Mexican States other than a county that contains three or
more municipalities that each have a population of more than
17,500.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 669, Sec. 25, eff.
Sept. 1, 2001.
Sec. 1477.302. AUTHORITY FOR VISITOR OR TOURIST ATTRACTIONS. A
county may establish, acquire, lease as lessor or lessee,
construct, improve, enlarge, equip, repair, operate, or maintain:
(1) a public improvement or facility to attract visitors or
tourists to the county, including a civic center, a civic center
building, an auditorium, an exhibition hall, a coliseum, stadium,
or other sports facility; or
(2) a parking facility located at or in the immediate vicinity
of an improvement or facility described by Subdivision (1) to be
used in connection with the improvement or facility for
off-street parking or storage of motor vehicles or other
conveyances.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.303. AUTHORITY TO ISSUE REVENUE BONDS. The
commissioners court of the county by order may issue revenue
bonds to provide all or part of the money to establish, acquire,
construct, improve, enlarge, equip, or repair a facility
described by Section 1477.302.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.304. PLEDGE OF REVENUE. (a) Bonds issued under this
subchapter must be secured by a pledge of and be payable from all
or a designated part of the revenue from the improvement or
facility for which the bonds are issued, as provided in the order
authorizing the bonds.
(b) The pledge securing the bonds is inferior to any previous
pledge of the revenue for the payment of revenue bonds or revenue
refunding bonds that are outstanding.
(c) A county that leases a facility described by Section
1477.302 as lessee may pledge all or part of the revenue from the
facility to the lease payments.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.305. LIEN ON FACILITY. Subject to any limitations
contained in previous pledges, in addition to pledging the
revenue from the improvement or facility, the commissioners court
may give a lien on the physical property acquired with the bond
proceeds.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.306. BONDS NOT PAYABLE FROM TAXATION; EXCEPTION. (a)
The owner or holder of a bond issued under this subchapter is not
entitled to demand payment of the principal of or interest on the
bond from money raised by taxation.
(b) Subsection (a) does not apply to a demand for payment from
hotel occupancy taxes that are pledged under Chapter 352, Tax
Code, to the payment of the bond.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.307. CONTENTS OF ORDER AUTHORIZING BONDS. (a) The
order of the commissioners court authorizing the issuance of
bonds under this subchapter may provide for the flow of funds and
the establishment and maintenance of an interest and sinking
fund, a reserve fund, or other fund.
(b) The order may:
(1) prohibit the issuance of additional bonds or other
obligations payable from the pledged revenue; or
(2) reserve the right of the commissioners court, subject to any
condition in the order, to issue additional bonds payable from
the pledged revenue that are on a parity with or subordinate to
the lien and pledge on the revenue that supports the bonds issued
under the order.
(c) The commissioners court may include in the order any other
provision or covenant, including a covenant with respect to the
bonds, the use or pledge of revenue, or the operation, lease, or
maintenance of the improvement or facility.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.308. ADOPTION AND EXECUTION OF DOCUMENTS. The
commissioners court may adopt and have executed any other
proceeding or instrument necessary or convenient to the issuance
of bonds under this subchapter.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.309. MATURITY. A bond issued under this subchapter
must mature not later than 40 years after its date.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.310. SIGNATURES. A bond issued under this subchapter
must be:
(1) signed by the county judge; and
(2) countersigned by the county clerk.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.311. SALE OF BONDS. The commissioners court may sell
bonds issued under this subchapter under terms the court
determines to be the most advantageous and reasonably obtainable.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.312. USE OF BOND PROCEEDS. (a) From the proceeds of
bonds issued under this subchapter, the county may appropriate or
set aside amounts to:
(1) pay interest expected to accrue during the construction
period;
(2) deposit into a reserve fund, as provided in the order
authorizing the bonds; and
(3) pay all expenses incurred in the issuance, sale, and
delivery of the bonds.
(b) The bond proceeds, until they are needed to implement the
purpose for which the bonds were issued, may be invested in
direct obligations of the United States, placed on time deposit,
or both.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.313. INVESTMENT OF FUNDS. Money in an interest and
sinking fund, reserve fund, or any other fund established or
provided for in the bond order may be invested in the manner and
in the securities as provided in the bond order.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.314. CHARGES FOR SERVICES. The commissioners court
shall impose and collect charges for the use of an improvement or
facility the revenue of which is pledged to secure bonds issued
under this subchapter, and for services provided in connection
with that use, in amounts at least sufficient to comply with each
covenant or provision in the order authorizing the issuance of
the bonds.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.315. REFUNDING BONDS. (a) A county by order may
issue revenue refunding bonds similarly secured to refund either
original bonds or revenue refunding bonds previously issued by
the county under this subchapter.
(b) The refunding bonds shall be executed as provided by this
subchapter for original bonds.
(c) The comptroller shall register the refunding bonds on the
surrender and cancellation of the bonds to be refunded.
(d) In lieu of issuing bonds to be registered on the surrender
and cancellation of the bonds to be refunded, the county, in the
order authorizing the issuance of the refunding bonds, may
provide for the sale of the refunding bonds and the deposit of
the proceeds in the place bonds to be refunded are payable. In
that case, the refunding bonds may be issued in an amount
sufficient to pay the principal of and interest on the bonds to
be refunded to their option or maturity date, and the comptroller
shall register the refunding bonds without the surrender and
cancellation of the bonds to be refunded.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
SUBCHAPTER H. REVENUE ANTICIPATION NOTES IN CERTAIN COUNTIES
Sec. 1477.351. APPLICABILITY OF SUBCHAPTER. This subchapter
applies only to a county that has a county auditor.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.352. AUTHORITY TO ISSUE REVENUE ANTICIPATION NOTES.
The county may issue revenue anticipation notes to pay for
current expenses of the county only if the county auditor:
(1) recommends that action; and
(2) identifies the revenue anticipated to be used for repayment
of the notes.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.353. LIMIT ON AMOUNT OF NOTES. (a) The total amount
of revenue anticipation notes issued by the county under this
subchapter may not exceed 50 percent of the amount of taxes
levied by the county for the year in which the notes are issued.
(b) For purposes of Subsection (a), the total amount of revenue
anticipation notes includes the:
(1) principal of the notes;
(2) interest to be paid on the notes; and
(3) cost of issuance of the notes.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.354. MATURITY. (a) A revenue anticipation note
issued under this subchapter must mature not later than the last
day of the fiscal year in which the note is issued, except as
provided by Subsection (b).
(b) A revenue anticipation note issued under this subchapter may
mature not later than the last day of the first quarter of the
fiscal year following the fiscal year in which the note is issued
if the revenue dedicated to retire the note has accrued but has
not been received by the county in the fiscal year in which the
note is issued.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.355. REVENUE AVAILABLE FOR PAYMENT OF NOTES. A county
may use any revenue of the county not otherwise dedicated or
restricted, including ad valorem taxes, for the payment of a
revenue anticipation note issued under this subchapter.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
SUBCHAPTER I. OBLIGATIONS IN COUNTIES WITH POPULATION OF LESS
THAN 8,600
Sec. 1477.401. APPLICABILITY OF SUBCHAPTER. This subchapter
applies only to a county with a population of less than 8,600.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.402. AUTHORITY TO BORROW. (a) The county may borrow
money under this subchapter from any source.
(b) The total combined principal amount borrowed under this
subchapter may not exceed $200,000.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.403. AUTHORITY TO ISSUE OBLIGATIONS. The
commissioners court of the county may issue time warrants or
other obligations of the county in evidence of money borrowed
under Section 1477.402.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.404. AUTHORITY TO IMPOSE AND PLEDGE TAXES AND
REVENUES. The county may impose taxes and may pledge taxes and
other revenue of the county for the payment of money borrowed
under Section 1477.402.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.405. MATURITY. A time warrant or obligation issued
under this subchapter must be payable within 10 years.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.406. SIGNATURES. A time warrant or obligation issued
under this subchapter must be signed by the county judge and the
county clerk.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1477.407. VALIDITY OF OBLIGATION. A time warrant or other
obligation that is issued and signed in compliance with this
subchapter is a valid obligation of the county.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.