By: Paxton S.B. No. 637
(Flynn)
A BILL TO BE ENTITLED
AN ACT
relating to notice and election order requirements for bond
approval elections held by political subdivisions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 3, Election Code, is amended by adding
Section 3.009 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 ad valorem taxes.
(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 40;
(7) the aggregate amount of the outstanding principal
of the political subdivision's debt obligations as of the 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
beginning of the political subdivision's fiscal year in which the
election is ordered; 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 4.003, Election Code, is amended by
adding Subsection (f) to read as follows:
(f) A debt obligation election order required under Section
3.009 shall be posted:
(1) on election day and during early voting by
personal appearance, in a prominent location at each polling place;
(2) not later than the 21st day before the election, in
three public places in the boundaries of the political subdivision
holding the election; and
(3) during the 21 days before the election, on the
political subdivision's Internet website, prominently and together
with the notice of the election and the contents of the proposition,
if the political subdivision maintains an Internet website.
SECTION 3. The changes in law made by this Act apply only to
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.
SECTION 4. This Act takes effect September 1, 2013.