By: Lucio, et al.	S.B. No. 461
	(Murphy)

	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 3.009, Election Code, is amended to read
	as follows:
	Sec. 3.009.  CONTENTS OF DEBT OBLIGATION ELECTION ORDER.
	(a)  In this section, "debt obligation" means an issued public
	security, as defined by Section 1201.002, Government Code, that is
	secured by and payable from ad valorem taxes. The term does not
	include public securities that are designated as self-supporting by
	the political subdivision issuing the securities.
	(b)  The document ordering an election to authorize a
	political subdivision to issue debt obligations must distinctly
	state:
	(1)  the proposition language that will appear on the
	ballot;
	(2)  the purpose for which the debt obligations are to
	be authorized;
	(3)  the principal amount of the debt obligations to be
	authorized;
	(4)  that taxes sufficient to pay the [annual]
	principal of and interest on the debt obligations may be imposed;
	(5)  a statement of the estimated tax rate if the debt
	obligations are authorized or of the maximum interest rate of the
	debt obligations or any series of the debt obligations, based on the
	market conditions at the time of the election order;
	(6)  the maximum maturity date of the debt obligations
	to be authorized or that the debt obligations may be issued to
	mature over a specified number of years not to exceed the maximum
	number of years authorized by law [40];
	(7)  the aggregate amount of the outstanding principal
	of the political subdivision's debt obligations as of the date
	[beginning of the political subdivision's fiscal year in which] the
	election is ordered;
	(8)  the aggregate amount of the outstanding interest
	on debt obligations of the political subdivision as of the date
	[beginning of the political subdivision's fiscal year in which] the
	election is ordered, which may be based on the expectations of the
	political subdivision as it relates to variable rate debt
	obligations; and
	(9)  the ad valorem debt service tax rate for the
	political subdivision at the time the election is ordered,
	expressed as an amount per $100 valuation of taxable property.
	SECTION 2.  Section 52.072, Election Code, is amended by
	amending Subsection (e) and adding Subsection (f) 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.
	(f)  A political subdivision that submits to the voters a
	proposition for the approval of the issuance of debt obligations
	shall prescribe the wording of the proposition that is to appear on
	the ballot in accordance with the requirements of Subchapter B,
	Chapter 1251, Government Code. In this subsection, "debt
	obligation" and "political subdivision" have the meanings assigned
	by Section 1251.051, Government Code.
	SECTION 3.  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 4.  Chapter 1251, Government Code, is amended by
	adding Subchapter B to read as follows:
	SUBCHAPTER B. BALLOT FOR DEBT OBLIGATIONS ISSUED BY POLITICAL
	SUBDIVISION
	Sec. 1251.051.  DEFINITIONS. In this subchapter:
	(1)  "Debt obligation" means a public security as
	defined by Section 1201.002 secured by and payable from ad valorem
	taxes.  The term does not include public securities that are
	designated as self-supporting by the political subdivision issuing
	the securities.
	(2)  "Debt obligation election order" means the order,
	ordinance, or resolution ordering an election to authorize the
	issuance of debt obligations.
	(3)  "Political subdivision" means a municipality,
	county, school district, or special taxing district.
	Sec. 1251.052.  FORM. (a)  The ballot for a measure seeking
	voter approval of the issuance of debt obligations by a political
	subdivision shall specifically state:
	(1)  a general description of the purposes for which
	the debt obligations are to be authorized;
	(2)  the total principal amount of the debt obligations
	to be authorized; and
	(3)  that taxes sufficient to pay the principal of and
	interest on the debt obligations will be imposed.
	(b)  In addition to the requirements of Subsection (a), the
	ballot for a measure seeking voter approval of the issuance of debt
	obligations by 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 shall specifically state
	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 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.
	(c)  The governing body of the political subdivision shall
	identify in the debt obligation election order the major
	assumptions made in connection with the statement required by
	Subsection (b), 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 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:
	(1)  the language that will appear on the ballot;
	(2)  the following information formatted as a table:
	(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 expectations of the political subdivision
	as it relates 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
	expectations of the political subdivision as it relates to the
	interest due on any variable rate debt obligations; and
	(3)  any other information that the political
	subdivision considers relevant or necessary to explain the
	information required by this subsection.
	(e)  A political subdivision that maintains an Internet
	website shall provide the information described by Subsection (d)
	on its 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.
	(f)  This section provides the ballot proposition language
	for an election to authorize the issuance of debt obligations by a
	political subdivision.  To the extent of a conflict between this
	section and another law, this section controls.
	SECTION 5.  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 an Internet 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:
	(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, which may be based on the expectations
	of the issuer as it relates to the interest due on any variable rate
	debt obligations;
	(C)  the maximum principal amount 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 interest rate for the certificates
	to be authorized or that the maximum interest rate for the
	certificates may not exceed the maximum legal interest rate; and
	(6)  the maximum maturity date of the certificates to
	be authorized.
	(e)  In this section, "debt obligation" means a public
	security, as defined by Section 1201.002, Government Code, secured
	by and payable from ad valorem taxes.  The term does not include
	public securities that are designated as self-supporting by the
	political subdivision issuing the securities.
	SECTION 6.  Section 1251.002, Government Code, is repealed.
	SECTION 7.  (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 8.  This Act takes effect September 1, 2017.