Bill Text: TX SB461 | 2017-2018 | 85th Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Engrossed - Dead) 2017-05-12 - Committee report sent to Calendars [SB461 Detail]

Download: Texas-2017-SB461-Introduced.html

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85R3002 ATP-D
By: Lucio S.B. No. 461

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. Section 52.072(e), Election Code, is amended to
read as follows:
(e) In addition to any other requirement imposed by law for
a proposition, including a provision prescribing the proposition
language, a proposition submitted to the voters for approval of
[the issuance of bonds or] the imposition, increase, or reduction
of a tax shall specifically state, as applicable:
(1) [with respect to a proposition seeking voter
approval of the issuance of bonds:
[(A) the total principal amount of the bonds to
be authorized, if approved; and
[(B) a general description of the purposes for
which the bonds are to be authorized, if approved;
[(2)] with respect to a proposition that only seeks
voter approval of the imposition or increase of a tax, the amount of
or maximum tax rate of the tax or tax increase for which approval is
sought; or
(2) [(3)] with respect to a proposition that only
seeks voter approval of the reduction of a tax, the amount of tax
rate reduction or the tax rate for which approval is sought.
SECTION 2. Chapter 1251, Government Code, is amended by
designating Sections 1251.001, 1251.003, 1251.004, 1251.005, and
1251.006 as Subchapter A and adding a subchapter heading to read as
follows:
SUBCHAPTER A. PROVISIONS RELATING GENERALLY TO BOND ELECTIONS
SECTION 3. Chapter 1251, Government Code, is amended by
adding Subchapter B to read as follows:
SUBCHAPTER B. BALLOT PROPOSITION FOR BONDS ISSUED BY POLITICAL
SUBDIVISION
Sec. 1251.051. APPLICABILITY. This subchapter applies to
bonds issued by any political subdivision, including a
municipality, county, school district, or special taxing district.
Sec. 1251.052. FORM. (a) A proposition seeking voter
approval of the issuance of bonds shall specifically state:
(1) a general description of the purposes for which
the bonds are to be authorized;
(2) the total principal amount of the bonds;
(3) the rate of interest;
(4) the imposition of taxes sufficient to pay the
annual interest on the bonds and to provide a sinking fund to redeem
the bonds at maturity; and
(5) the maturity date of the bonds or that the bonds
may be issued to mature serially over a specified number of years
not to exceed 40.
(b) In addition to the requirements of Subsection (a) and
any other requirement imposed by law for a proposition, including a
provision prescribing the proposition language, a proposition
submitted to the voters for approval of the issuance of bonds shall
specifically state:
(1) the total amount of the political subdivision's
debt secured by ad valorem taxes currently outstanding;
(2) the total amount of debt secured by ad valorem
taxes, including principal and interest, to be authorized;
(3) the amount of taxes required to be imposed on a
homestead with a value of $100,000 in the political subdivision, as
computed by the appraisal district, to repay the political
subdivision's current debt obligations secured by ad valorem taxes;
(4) the increase in the amount of taxes that would be
imposed on a homestead with a value of $100,000 in the political
subdivision, as computed by the appraisal district, to repay the
bonds to be authorized, if approved; and
(5) the maturity date of the bonds to be authorized.
(c) A political subdivision that maintains a website shall
provide the information described by Subsection (b) on its website
in an easily accessible manner.
SECTION 4. Section 271.049, Local Government Code, is
amended by amending Subsections (a) and (b) and adding Subsection
(e) to read as follows:
(a) Regardless of the sources of payment of certificates,
certificates may not be issued unless the issuer publishes notice
of its intention to issue the certificates. The notice must be
published:
(1) once a week for two consecutive weeks in a
newspaper, as defined by Subchapter C, Chapter 2051, Government
Code, that is of general circulation in the area of the issuer, with
the date of the first publication to be before the 45th [30th] day
before the date tentatively set for the passage of the order or
ordinance authorizing the issuance of the certificates; and
(2) if the issuer maintains a website, continuously on
the issuer's website for at least 45 days before the date
tentatively set for the passage of the order or ordinance
authorizing the issuance of the certificates.
(b) The notice must state:
(1) the time and place tentatively set for the passage
of the order or ordinance authorizing the issuance of the
certificates;
(2) the [maximum amount and] purpose of the
certificates to be authorized; [and]
(3) the manner in which the certificates will be paid
for, whether by taxes, revenues, or a combination of the two;
(4) the following, stated as a total amount and as a
per capita amount:
(A) the then-current principal of all
outstanding debt obligations of the issuer;
(B) the then-current combined principal and
interest required to pay all outstanding debt obligations of the
issuer on time and in full;
(C) the principal of the certificates to be
authorized; and
(D) the estimated combined principal and
interest required to pay the certificates to be authorized on time
and in full;
(5) the estimated rate of interest for the
certificates to be authorized; and
(6) the maturity date of the certificates to be
authorized.
(e) In this section, "debt obligation" means an issued
public security, as defined by Section 1201.002, Government Code.
SECTION 5. Section 1251.002, Government Code, is repealed.
SECTION 6. (a) The changes in law made by this Act to
Chapter 1251, Government Code, apply only to a ballot for an
election ordered on or after the effective date of this Act. An
election ordered before the effective date of this Act is governed
by the law in effect when the election was ordered, and the former
law is continued in effect for that purpose.
(b) The changes in law made by this Act to Section 271.049,
Local Government Code, apply only to a certificate of obligation
for which the first notice of intention to issue the certificate is
made on or after the effective date of this Act. A certificate of
obligation for which the first notice of intention to issue the
certificate is made before the effective date of this Act is
governed by the law in effect when the notice of intention is made,
and the former law is continued in effect for that purpose.
SECTION 7. This Act takes effect September 1, 2017.