Texas 2015 - 84th Regular

Texas House Bill HB2099 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	By: Dale H.B. No. 2099
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the issuance of capital appreciation bonds by political
7	7	subdivisions.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. This Act may be cited as the Capital Appreciation
10	10	Bond Promoting Accountability Measure Act.
11	11	SECTION 2. Subtitle C, Title 9, Government Code, is amended
12	12	by adding Chapter 1253 to read as follows:
13	13	CHAPTER 1253. ISSUANCE OF CAPITAL APPRECIATION BONDS
14	14	SUBCHAPTER A. GENERAL PROVISIONS
15	15	Sec. 1253.001. DEFINITIONS. In this chapter:
16	16	(1) "Capital appreciation bond" means a bond that
17	17	accrues and compounds interest from its date of delivery, the
18	18	interest on which by its terms is payable only upon maturity or
19	19	prior redemption.
20	20	(2) "Political subdivision" means a county,
21	21	municipality, special district, school district, junior college
22	22	district, or other political subdivision of this state.
23	23	Sec. 1253.002. INAPPLICABILITY TO BONDS FOR TRANSPORTATION
24	24	PROJECTS. This chapter does not apply to the issuance of capital
25	25	appreciation bonds to finance transportation infrastructure
26	26	projects.
27	27	SUBCHAPTER B. REQUIREMENTS FOR ISSUANCE
28	28	Sec. 1253.051. NOVEMBER UNIFORM ELECTION DATE REQUIRED. A
29	29	political subdivision may not issue capital appreciation bonds
30	30	unless:
31	31	(1) the bonds were approved at an election held on the
32	32	November uniform election date; and
33	33	(2) the ballot proposition includes:
34	34	(A) the principal amount of the bond issuance;
35	35	(B) an estimated amount, based on current
36	36	interest rates at the time the decision is made to place the bonds
37	37	on the ballot, of the amortized cost of the bonds if the bonds are
38	38	not paid off early;
39	39	(C) a statement that the bonds issued may be
40	40	capital appreciation bonds; and
41	41	(D) a short description of capital appreciation
42	42	bonds.
43	43	Sec. 1253.052. LIMITATION ON AMOUNT OF OUTSTANDING CAPITAL
44	44	APPRECIATION BOND DEBT. A political subdivision may not issue
45	45	capital appreciation bonds in an amount that would cause its
46	46	capital appreciation bond debt to exceed 25 percent of the
47	47	political subdivision's total outstanding bonded indebtedness.
48	48	Sec. 1253.053. LIMITATION ON MATURITY DATE. A political
49	49	subdivision may not issue capital appreciation bonds with a
50	50	scheduled maturity date more than
51	51	25 years after the date of
52	52	issuance.
53	53	Sec. 1253.054. EARLY REPAYMENT OPTION REQUIRED. A
54	54	political subdivision may not issue capital appreciation bonds
55	55	unless the bond agreement allows early repayment of the bonds by the
56	56	political subdivision without penalties or additional fees.
57	57	Sec. 1253.055. LIMITATIONS ON SCHOOL DISTRICTS. (a) A
58	58	school district may not issue capital appreciation bonds unless:
59	59	(1) the district is a high enrollment growth district
60	60	for the purposes of Section 31.0214, Education Code; and
61	61	(2) before an election is ordered, the governing body
62	62	of the district:
63	63	(A) adopts, by record vote, a resolution stating
64	64	that the district is considering issuing capital appreciation
65	65	bonds;
66	66	(B) attaches a record of the vote under Paragraph
67	67	(A) to the resolution; and
68	68	(C) posts the resolution on the district's
69	69	Internet website not later than the 90th day before the date of the
70	70	bond election.
71	71	(b) Bonds issued by a school district on or after September
72	72	1, 2025, are not eligible for guarantee by the permanent school fund
73	73	under Section 45.052, Education Code, if the district's outstanding
74	74	capital appreciation bond debt exceeds 25 percent of its total
75	75	outstanding bonded indebtedness.
76	76	SUBCHAPTER C. USE OF PROCEEDS
77	77	Sec. 1253.101. USE OF PROCEEDS. (a) A political
78	78	subdivision may use proceeds from the issuance of capital
79	79	appreciation bonds only to purchase assets, including real estate
80	80	and new construction, that have an expected use, to be determined
81	81	based on the depreciable life of the asset under the Internal
82	82	Revenue Code of 1986, that extends beyond the bonds' maturity date.
83	83	(b) A political subdivision may not use proceeds from the
84	84	issuance of capital appreciation bonds for:
85	85	(1) renovations to existing structures;
86	86	(2) technology purchases, including computers; or
87	87	(3) school buses or other vehicles.
88	88	SUBCHAPTER D. TRANSPARENCY
89	89	Sec. 1253.151. BOND INFORMATION ON INTERNET WEBSITE. (a) A
90	90	political subdivision that has outstanding capital appreciation
91	91	bond debt shall post prominently on the political subdivision's
92	92	Internet website for each outstanding issuance of capital
93	93	appreciation bonds:
94	94	(1) the principal cost of the bonds;
95	95	(2) the purpose for which the bonds were issued;
96	96	(3) the full amortization schedule for the bonds;
97	97	(4) the total amount to be paid for the bonds if the
98	98	bonds are not repaid before maturity; and
99	99	(5) the bond counsel, underwriter, and financial
100	100	institution for the issuance.
101	101	(b) The information under Subsection (a) must be updated
102	102	annually, not later than the 60th day before the November uniform
103	103	election date.
104	104	SECTION 3. This Act takes effect immediately if it receives
105	105	a vote of two-thirds of all the members elected to each house, as
106	106	provided by Section 39, Article III, Texas Constitution. If this
107	107	Act does not receive the vote necessary for immediate effect, this
108	108	Act takes effect September 1, 2015.