85R522 TJB-D
	By: Burton	S.B. No. 245

	A BILL TO BE ENTITLED
	AN ACT
	relating to voter information provided by political subdivisions
	before an election to authorize the issuance of bonds.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Chapter 1251, Government Code, is amended by
	designating Sections 1251.001, 1251.002, 1251.003, 1251.004,
	1251.005, and 1251.006 as Subchapter A and adding a heading to
	Subchapter A to read as follows:
	SUBCHAPTER A.  BOND MATTERS AFFECTING COUNTIES AND MUNICIPALITIES
	SECTION 2.  Chapter 1251, Government Code, is amended by
	adding Subchapter B to read as follows:
	SUBCHAPTER B.  BOND MATTERS AFFECTING MORE THAN ONE TYPE OF
	POLITICAL SUBDIVISION
	Sec. 1251.051.  DEFINITIONS. In this subchapter:
	(1)  "Debt obligation" means an issued public security,
	as defined by Section 1201.002, secured by property taxes.
	(2)  "Political subdivision" means a county,
	municipality, school district, junior college district, other
	special district, or other subdivision of state government.
	(3)  "Secured self-supporting debt obligation" means a
	debt obligation secured by property taxes but payable from revenue
	from another source.
	Sec. 1251.052.  PUBLIC HEARING. (a) Before a political
	subdivision may hold an election to authorize the issuance of
	bonds, the governing body of the political subdivision must conduct
	a public hearing at which persons interested in the issuance of the
	bonds are given the opportunity to be heard.
	(b)  The governing body must hold the hearing not earlier
	than the day the governing body adopts the election order or later
	than the first day before the date the period for early voting by
	personal appearance begins for the election, as determined under
	Section 85.001, Election Code.
	(c)  Not earlier than the 30th day or later than the 15th day
	before the date of the hearing, the political subdivision must:
	(1)  provide notice of the hearing and each voter
	information document described by Section 1251.053 by:
	(A)  publication in at least one newspaper of
	general circulation in the county in which the political
	subdivision is wholly or primarily located;
	(B)  posting on:
	(i)  the political subdivision's Internet
	website; and
	(ii)  each other Internet website for which
	the political subdivision controls the content of the posting,
	including a social media site; and
	(C)  inclusion in the political subdivision's
	newsletter, circular, or similar document designed to provide
	information to the residents of the political subdivision,
	regardless of how delivered, if the political subdivision
	periodically delivers such a document; and
	(2)  send by first-class mail to each owner of taxable
	property located in the political subdivision the voter information
	document described by Section 1251.053 and a cover letter that
	includes:
	(A)  the date of the hearing;
	(B)  the purpose of the hearing;
	(C)  the language that will appear on the ballot;
	and
	(D)  the estimated increase in the property tax
	debt levy of the political subdivision for all taxable property
	owned by the property owner and located in the political
	subdivision.
	(d)  A political subdivision must determine the estimate
	required by Subsection (c)(2)(D) in the manner prescribed by
	comptroller rule.
	(e)  The Texas Ethics Commission shall provide guidelines
	for political subdivisions regarding the manner in which the
	hearing is conducted and additional information is provided on the
	form prescribed by the secretary of state under Section 1251.053(f)
	without violating electioneering and political advertising laws,
	including Section 255.003, Election Code, and Section 11.169,
	Education Code.
	Sec. 1251.053.  VOTER INFORMATION DOCUMENT. (a) A
	political subdivision must prepare a separate voter information
	document for each proposition to be discussed at a hearing required
	by Section 1251.052.
	(b)  Each voter information document must distinctly state:
	(1)  the language that will appear on the ballot;
	(2)  the purpose for which the bonds are to be
	authorized;
	(3)  the maturity date of the bonds to be authorized or
	that the bonds may be issued to mature over a specified number of
	years not to exceed the maximum number of years authorized by law;
	(4)  that taxes sufficient to pay the annual principal
	of and interest on the bonds may be imposed;
	(5)  the maximum rate of interest for the bonds to be
	authorized;
	(6)  the following information formatted as a table:
	(A)  the property tax debt rate expressed in
	dollars per $100 valuation of all taxable property in the political
	subdivision, stated as:
	(i)  the existing rate;
	(ii)  the estimated rate if the bonds are
	authorized; and
	(iii)  the estimated increase in the rate if
	the bonds are authorized; and
	(B)  the amount expressed in dollars of the
	property tax debt levy of the political subdivision per residence
	with a taxable value of $100,000, stated as:
	(i)  the existing levy;
	(ii)  the estimated levy if the bonds are
	authorized; and
	(iii)  the estimated increase in the levy if
	the bonds are authorized;
	(7)  the following information formatted as a second
	table and stated as a total amount and, if the political subdivision
	is a municipality, county, or school district, as a per capita
	amount:
	(A)  the principal of the bonds to be authorized;
	(B)  the estimated interest for the bonds to be
	authorized;
	(C)  the estimated combined principal and
	interest required to pay on time and in full the bonds to be
	authorized; and
	(D)  as of the date the political subdivision
	adopts the bond election order:
	(i)  the principal of all outstanding debt
	obligations of the political subdivision secured by and payable
	from property taxes;
	(ii)  the estimated remaining interest of
	all outstanding debt obligations of the political subdivision
	secured by and payable from property taxes; and
	(iii)  the estimated combined principal and
	interest required to pay on time and in full all outstanding debt
	obligations of the political subdivision secured by and payable
	from property taxes;
	(8)  the following information as of the date the
	political subdivision adopts the bond election order, formatted as
	a third table:
	(A)  the principal of all outstanding secured
	self-supporting debt obligations of the political subdivision;
	(B)  the estimated remaining interest of all
	outstanding secured self-supporting debt obligations of the
	political subdivision; and
	(C)  the estimated combined principal and
	interest required to pay on time and in full all outstanding secured
	self-supporting debt obligations of the political subdivision; and
	(9)  any other information that the political
	subdivision considers relevant or necessary to explain the values
	required by Subdivisions (5)-(8), including:
	(A)  an amount required by Subdivision (7) stated
	as a per capita amount if the political subdivision is not required
	to provide the amount under Subdivision (7);
	(B)  an explanation of the payment sources for the
	different types of debt; and
	(C)  a value for the following expressed as a good
	faith projection as of the last day of the maximum term of the bonds
	to be authorized:
	(i)  a per capita amount required by
	Subdivision (7);
	(ii)  an estimated rate required by
	Subdivision (6)(A)(ii); and
	(iii)  an estimated levy required by
	Subdivision (6)(B)(ii).
	(c)  A political subdivision must determine each estimate or
	projection required or authorized by Subsection (b) in the manner
	prescribed by comptroller rule.
	(d)  Each voter information document must be printed:
	(1)  on not more than two pages that are not wider than
	8-1/2 inches and not longer than 14 inches;
	(2)  in type not smaller than 12-point type; and
	(3)  in the form prescribed by the secretary of state.
	(e)  The governing body of the political subdivision must
	make a copy of each voter information document available to each
	individual attending the hearing.
	(f)  The secretary of state by rule shall prescribe the form
	of a voter information document.
	(g)  A good faith estimate or projection required or
	authorized by Subsection (b) determined in the manner prescribed by
	comptroller rule does not constitute a breach of contract with the
	voters solely because the estimate or projection is later
	determined to be incorrect.
	Sec. 1251.054.  ONLINE SAMPLE BALLOT. A sample of the ballot
	printed for an election to authorize a political subdivision to
	issue bonds must be posted on the political subdivision's Internet
	website as soon as practicable after the official ballots have been
	prepared and must remain posted until the day following the
	election.
	Sec. 1251.055.  INTERNET WEBSITE. A political subdivision
	shall maintain an Internet website to comply with this subchapter.
	Sec. 1251.056.  COMPTROLLER RULES. The comptroller shall
	adopt rules to implement this subchapter, including rules that
	prescribe the manner by which a political subdivision must
	determine each estimate or projection required or authorized by
	this subchapter.
	SECTION 3.  (a) Section 1251.052, Government Code, as added
	by this Act, applies only to a bond election ordered on or after
	January 1, 2018. A bond election ordered before January 1, 2018, is
	governed by the law in effect when the bond election was ordered,
	and the former law is continued in effect for that purpose.
	(b)  Not later than November 1, 2017, the comptroller of
	public accounts shall adopt the rules required by Section 1251.056,
	Government Code, as added by this Act.
	(c)  Not later than November 1, 2017, the Texas Ethics
	Commission shall make available on the Texas Ethics Commission's
	Internet website the guidelines required by Section 1251.052(e),
	Government Code, as added by this Act.
	(d)  Not later than November 1, 2017, the secretary of state
	shall make available on the secretary of state's Internet website a
	form of the voter information document described by Section
	1251.053(b), Government Code, as added by this Act.
	SECTION 4.  This Act takes effect September 1, 2017.