Bill Text: TX HB4024 | 2023-2024 | 88th Legislature | Introduced

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Bill Title: Relating to the notice required before the issuance of certain debt obligations by political subdivisions.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2023-03-20 - Referred to Pensions, Investments & Financial Services [HB4024 Detail]

Download: Texas-2023-HB4024-Introduced.html

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By: Harrison H.B. No. 4024

A BILL TO BE ENTITLED
AN ACT
relating to the notice required before the issuance of certain debt
obligations by political subdivisions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 1251, Government Code, is
amended to read as follows:
(b) A political subdivision with at least 250 registered
voters on the date the governing body of the political subdivision
adopts the debt obligation election order must prepare a voter
information document for each proposition to be voted on at the
election. The political subdivision shall post the voter
information document in the same manner as a debt obligation
election order is required to be posted under Section 4.003(f),
Election Code, and may include the voter information document in
the debt obligation election order. The voter information document
must distinctly state:
(2) the following information formatted as a table in
both the aggregate and per student capita:
(A) the principal of the debt obligations to be
authorized;
(B) the estimated interest for the debt
obligations to be authorized;
(C) the estimated combined principal and
interest required to pay on time and in full the debt obligations to
be authorized; and
(D) as of the date the political subdivision
adopts the debt obligation election order:
(i) the principal of all outstanding debt
obligations of the political subdivision;
(ii) the estimated remaining interest on
all outstanding debt obligations of the political subdivision,
which may be based on the political subdivision's expectations
relative to the interest due on any variable rate debt obligations;
and
(iii) the estimated combined principal and
interest required to pay on time and in full all outstanding debt
obligations of the political subdivision, which may be based on the
political subdivision's expectations relative to the interest due
on any variable rate debt obligations;
(3) the estimated maximum annual increase in the
amount of taxes that would be imposed on a residence homestead in
the political subdivision with an appraised value equal to the
average taxable value in the jurisdiction, as determined by the
county appraisal district,of $100,000 to repay the debt
obligations to be authorized, if approved, based upon assumptions
made by the governing body of the political subdivision; and
(c) The governing body of the political subdivision shall
identify in the voter information document the major assumptions
and any underlying data used to develop the tax impact estimatemade
in connection with the statement required by Subsection (b)(3),
including:
(1) the amortization of the political subdivision's
debt obligations, including outstanding debt obligations and the
proposed debt obligations;
(2) changes in estimated future appraised values
within the political subdivision; and
(3) the assumed interest rate on the proposed debt
obligations.
(d) A political subdivision that maintains an Internet
website shall provide the information described by Subsection (b)
on its website's homepage or bond election information page if it
has one,website in an easily accessible manner beginning not later
than the 21st day before election day and ending on the day after
the date of the debt obligation election.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2023.