Texas 2015 - 84th Regular

Texas Senate Bill SB1042 Compare Versions

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

Old	New	Differences
1	1	2015S0396-1 03/05/15
2	2	By: Bettencourt S.B. No. 1042
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to fiscal transparency and accountability of certain
8	8	political subdivisions.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Chapter 140, Local Government Code, is amended
11	11	by adding Section 140.008 to read as follows:
12	12	Sec. 140.008. ANNUAL FINANCIAL REPORT; DEBT INFORMATION.
13	13	(a) In this section:
14	14	(1) "Debt obligation" means an issued public security,
15	15	as defined by Section 1201.002, Government Code.
16	16	(2) "Political subdivision" means a county,
17	17	municipality, school district, junior college district, other
18	18	special district, or other subdivision of state government.
19	19	(b) Except as provided by Subsections (c) and (d), a
20	20	political subdivision shall prepare an annual financial report that
21	21	includes:
22	22	(1) financial information for each fund subject to the
23	23	authority of the governing body of the political subdivision during
24	24	the fiscal year, including:
25	25	(A) the total receipts of the fund, itemized by
26	26	source of revenue, including taxes, assessments, service charges,
27	27	grants of state money, gifts, or other general sources from which
28	28	funds are derived;
29	29	(B) the total disbursements of the fund, itemized
30	30	by the nature of the expenditure;
31	31	(C) the balance in the fund as of the last day of
32	32	the fiscal year; and
33	33	(D) any other information required by law to be
34	34	included by the political subdivision in an annual financial report
35	35	or comparable annual financial statement, exhibit, or report;
36	36	(2) as of the last day of the preceding fiscal year,
37	37	debt obligation information for the political subdivision that must
38	38	state:
39	39	(A) the amount of all authorized debt
40	40	obligations;
41	41	(B) the principal of all outstanding debt
42	42	obligations;
43	43	(C) the principal of each outstanding debt
44	44	obligation;
45	45	(D) the combined principal and interest required
46	46	to pay all outstanding debt obligations on time and in full;
47	47	(E) the combined principal and interest required
48	48	to pay each outstanding debt obligation on time and in full;
49	49	(F) the amounts required by Paragraphs (A)-(E)
50	50	limited to authorized and outstanding debt obligations secured by
51	51	ad valorem taxation, expressed as a total amount, and if the
52	52	political subdivision is a municipality, county, or school
53	53	district:
54	54	(i) the median homestead value in the
55	55	political subdivision, computed by the appraisal district; and
56	56	(ii) the amount of taxes that would be
57	57	imposed on a home of that value to repay the political subdivision's
58	58	authorized and outstanding debt obligations secured by ad valorem
59	59	taxation; and
60	60	(G) the following for each debt obligation:
61	61	(i) the issued and unissued amount;
62	62	(ii) the spent and unspent amount;
63	63	(iii) the maturity date; and
64	64	(iv) the stated purpose for which the debt
65	65	obligation was authorized; and
66	66	(3) any other information that the political
67	67	subdivision considers relevant or necessary to explain the values
68	68	required by Subdivisions (2)(A)-(F), which may include:
69	69	(A) if not required to be provided under
70	70	Subdivision (2)(F):
71	71	(i) the median homestead value in the
72	72	political subdivision, computed by the appraisal district; and
73	73	(ii) the amount of taxes that would be
74	74	imposed on a home of that value to repay the political subdivision's
75	75	authorized and outstanding debt obligations secured by ad valorem
76	76	taxation;
77	77	(B) an explanation of the payment sources for the
78	78	different types of debt; and
79	79	(C) as of the last day of the maximum term of the
80	80	most recent debt obligation issued by the political subdivision,
81	81	the amount of taxes that would be imposed on a homestead with a
82	82	value equal to the median homestead value in the political
83	83	subdivision, as computed by the appraisal district, to repay the
84	84	political subdivision's authorized and outstanding debt
85	85	obligations secured by ad valorem taxation.
86	86	(c) Instead of replicating in the annual financial report
87	87	information required by Subsection (b) that is posted separately on
88	88	the political subdivision's Internet website, or on a website as
89	89	authorized by Subsection (g)(2), the political subdivision may
90	90	provide in the report a direct link to, or a clear statement
91	91	describing the location of, the separately posted information.
92	92	(d) As an alternative to preparing an annual financial
93	93	report, a political subdivision may provide to the comptroller the
94	94	information described by Subsection (b) and any other related
95	95	information required by the comptroller in the form and in the
96	96	manner prescribed by the comptroller. The comptroller shall post
97	97	the information on the comptroller's Internet website in the format
98	98	that the comptroller determines is appropriate. The political
99	99	subdivision shall provide a link from the political subdivision's
100	100	website, or a website as authorized by Subsection (g)(2), to the
101	101	location on the comptroller's website where the political
102	102	subdivision's financial information may be viewed. The comptroller
103	103	shall adopt rules necessary to implement this subsection.
104	104	(e) Except as provided by Subsection (d), the governing body
105	105	of a political subdivision shall take action to ensure that:
106	106	(1) the political subdivision's annual financial
107	107	report is made available for inspection by any person and is posted
108	108	continuously on the political subdivision's Internet website, or on
109	109	a website as authorized by Subsection (g)(2), until the political
110	110	subdivision posts the next annual financial report; and
111	111	(2) the contact information for the main office of the
112	112	political subdivision is continuously posted on the website,
113	113	including the physical address, the mailing address, the main
114	114	telephone number, and an e-mail address.
115	115	(f) Except as provided by Subsection (g), a political
116	116	subdivision shall maintain or cause to be maintained an Internet
117	117	website to comply with this section.
118	118	(g) This subsection does not apply to a county or
119	119	municipality with a population of more than 2,000 or a school
120	120	district or a junior college district. If a political subdivision
121	121	did not maintain an Internet website or cause a website to be
122	122	maintained on January 1, 2013, the political subdivision shall post
123	123	the information required by this section on:
124	124	(1) the political subdivision's website, if the
125	125	political subdivision chooses to maintain the website or cause the
126	126	website to be maintained; or
127	127	(2) a website in which the political subdivision
128	128	controls the content of the posting, including a social media site,
129	129	provided that the information is easily found by searching the name
130	130	of the political subdivision on the Internet.
131	131	SECTION 2. Section 271.047, Local Government Code, is
132	132	amended by adding Subsections (d) and (e) to read as follows:
133	133	(d) Except as provided by Subsection (e), the governing body
134	134	of an issuer may not authorize a certificate to pay a contractual
135	135	obligation to be incurred if a bond proposition to authorize the
136	136	issuance of bonds for the same purpose was submitted to the voters
137	137	during the preceding three years and failed to be approved.
138	138	(e) The governing body of an issuer may authorize a
139	139	certificate that the governing body is otherwise prohibited from
140	140	authorizing under Subsection (d):
141	141	(1) in a case described by Sections 271.056(1)-(3);
142	142	and
143	143	(2) to comply with a state or federal law, rule, or
144	144	regulation if the political subdivision has been officially
145	145	notified of noncompliance with the law, rule, or regulation.
146	146	SECTION 3. Section 140.006, Local Government Code, is
147	147	repealed.
148	148	SECTION 4. (a) The governing body of a school district or
149	149	junior college district required to publish an annual financial
150	150	statement under Section 140.006, Local Government Code, as that
151	151	section existed immediately before the effective date of this Act,
152	152	shall publish an annual financial statement for the last fiscal
153	153	year ending before the effective date of this Act for which the
154	154	district has not published an annual financial statement.
155	155	(b) Section 140.008, Local Government Code, as added by this
156	156	Act, applies only to an annual financial report for a fiscal year
157	157	ending on or after the effective date of this Act. An annual
158	158	financial report for a fiscal year ending before the effective date
159	159	of this Act is governed by the law in effect when the fiscal year
160	160	ended, and the former law is continued in effect for that purpose.
161	161	SECTION 5. This Act takes effect September 1, 2015.