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.