Texas 2017 - 85th Regular

Texas House Bill HB3335 Compare Versions

Version 1 (Old)

Version 2 (New)

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1	1	85R20596 ATP-F
2	2	By: Murphy, Laubenberg H.B. No. 3335
3	3	Substitute the following for H.B. No. 3335:
4	4	By: Laubenberg C.S.H.B. No. 3335
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the notice required before the issuance of certain debt
10	10	obligations by political subdivisions.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 3.009, Election Code, is amended to read
13	13	as follows:
14	14	Sec. 3.009. CONTENTS OF DEBT OBLIGATION ELECTION ORDER.
15	15	(a) In this section, "debt obligation" means an issued public
16	16	security, as defined by Section 1201.002, Government Code, that is
17	17	secured by and payable from ad valorem taxes. The term does not
18	18	include public securities that are designated as self-supporting by
19	19	the political subdivision issuing the securities.
20	20	(b) The document ordering an election to authorize a
21	21	political subdivision to issue debt obligations must distinctly
22	22	state:
23	23	(1) the proposition language that will appear on the
24	24	ballot;
25	25	(2) the purpose for which the debt obligations are to
26	26	be authorized;
27	27	(3) the principal amount of the debt obligations to be
28	28	authorized;
29	29	(4) that taxes sufficient to pay the [annual]
30	30	principal of and interest on the debt obligations may be imposed;
31	31	(5) a statement of the estimated tax rate if the debt
32	32	obligations are authorized or of the maximum interest rate of the
33	33	debt obligations or any series of the debt obligations, based on the
34	34	market conditions at the time of the election order;
35	35	(6) the maximum maturity date of the debt obligations
36	36	to be authorized or that the debt obligations may be issued to
37	37	mature over a specified number of years not to exceed the maximum
38	38	number of years authorized by law [40];
39	39	(7) the aggregate amount of the outstanding principal
40	40	of the political subdivision's debt obligations as of the date
41	41	[beginning of the political subdivision's fiscal year in which] the
42	42	election is ordered;
43	43	(8) the aggregate amount of the outstanding interest
44	44	on debt obligations of the political subdivision as of the date
45	45	[beginning of the political subdivision's fiscal year in which] the
46	46	election is ordered, which may be based on the expectations of the
47	47	political subdivision as it relates to variable rate debt
48	48	obligations; and
49	49	(9) the ad valorem debt service tax rate for the
50	50	political subdivision at the time the election is ordered,
51	51	expressed as an amount per $100 valuation of taxable property.
52	52	SECTION 2. Section 52.072, Election Code, is amended by
53	53	amending Subsection (e) and adding Subsection (f) to read as
54	54	follows:
55	55	(e) In addition to any other requirement imposed by law for
56	56	a proposition, including a provision prescribing the proposition
57	57	language, a proposition submitted to the voters for approval of
58	58	[the issuance of bonds or] the imposition, increase, or reduction
59	59	of a tax shall specifically state, as applicable:
60	60	(1) [with respect to a proposition seeking voter
61	61	approval of the issuance of bonds:
62	62	[(A) the total principal amount of the bonds to
63	63	be authorized, if approved; and
64	64	[(B) a general description of the purposes for
65	65	which the bonds are to be authorized, if approved;
66	66	[(2)] with respect to a proposition that only seeks
67	67	voter approval of the imposition or increase of a tax, the amount of
68	68	or maximum tax rate of the tax or tax increase for which approval is
69	69	sought; or
70	70	(2) [(3)] with respect to a proposition that only
71	71	seeks voter approval of the reduction of a tax, the amount of tax
72	72	rate reduction or the tax rate for which approval is sought.
73	73	(f) A political subdivision that submits to the voters a
74	74	proposition for the approval of the issuance of debt obligations
75	75	shall prescribe the wording of the proposition that is to appear on
76	76	the ballot in accordance with the requirements of Subchapter B,
77	77	Chapter 1251, Government Code. In this subsection, "debt
78	78	obligation" and "political subdivision" have the meanings assigned
79	79	by Section 1251.051, Government Code.
80	80	SECTION 3. Chapter 1251, Government Code, is amended by
81	81	designating Sections 1251.001, 1251.003, 1251.004, 1251.005, and
82	82	1251.006 as Subchapter A and adding a subchapter heading to read as
83	83	follows:
84	84	SUBCHAPTER A. PROVISIONS RELATING GENERALLY TO BOND ELECTIONS
85	85	SECTION 4. Chapter 1251, Government Code, is amended by
86	86	adding Subchapter B to read as follows:
87	87	SUBCHAPTER B. BALLOT FOR DEBT OBLIGATIONS ISSUED BY POLITICAL
88	88	SUBDIVISION
89	89	Sec. 1251.051. DEFINITIONS. In this subchapter:
90	90	(1) "Debt obligation" means a public security as
91	91	defined by Section 1201.002 secured by and payable from ad valorem
92	92	taxes. The term does not include public securities that are
93	93	designated as self-supporting by the political subdivision issuing
94	94	the securities.
95	95	(2) "Debt obligation election order" means the order,
96	96	ordinance, or resolution ordering an election to authorize the
97	97	issuance of debt obligations.
98	98	(3) "Political subdivision" means a municipality,
99	99	county, school district, or special taxing district.
100	100	Sec. 1251.052. FORM. (a) The ballot for a measure seeking
101	101	voter approval of the issuance of debt obligations by a political
102	102	subdivision shall specifically state:
103	103	(1) a general description of the purposes for which
104	104	the debt obligations are to be authorized;
105	105	(2) the total principal amount of the debt obligations
106	106	to be authorized; and
107	107	(3) that taxes sufficient to pay the principal of and
108	108	interest on the debt obligations will be imposed.
109	109	(b) In addition to the requirements of Subsection (a), the
110	110	ballot for a measure seeking voter approval of the issuance of debt
111	111	obligations by a political subdivision with at least 250 registered
112	112	voters on the date the governing body of the political subdivision
113	113	adopts the debt obligation election order shall specifically state
114	114	the estimated maximum annual increase in the amount of taxes that
115	115	would be imposed on a residence homestead in the political
116	116	subdivision with an appraised value of $100,000 to repay the debt
117	117	obligations to be authorized, if approved, based upon assumptions
118	118	made by the governing body of the political subdivision.
119	119	(c) The governing body of the political subdivision shall
120	120	identify in the debt obligation election order the major
121	121	assumptions made in connection with the statement required by
122	122	Subsection (b), including:
123	123	(1) the amortization of the political subdivision's
124	124	debt obligations, including outstanding debt obligations and the
125	125	proposed debt obligations;
126	126	(2) changes in estimated future appraised values
127	127	within the political subdivision; and
128	128	(3) the assumed interest rate on the proposed debt
129	129	obligations.
130	130	(d) A political subdivision with at least 250 registered
131	131	voters on the date the governing body of the political subdivision
132	132	adopts the debt obligation election order must prepare a voter
133	133	information document for each proposition to be voted on at the
134	134	election. The political subdivision shall post the voter
135	135	information document in the same manner as a debt obligation
136	136	election order is required to be posted under Section 4.003(f),
137	137	Election Code, and may include the voter information document in
138	138	the debt obligation election order. The voter information document
139	139	must distinctly state:
140	140	(1) the language that will appear on the ballot;
141	141	(2) the following information formatted as a table:
142	142	(A) the principal of the debt obligations to be
143	143	authorized;
144	144	(B) the estimated interest for the debt
145	145	obligations to be authorized;
146	146	(C) the estimated combined principal and
147	147	interest required to pay on time and in full the debt obligations to
148	148	be authorized; and
149	149	(D) as of the date the political subdivision
150	150	adopts the debt obligation election order:
151	151	(i) the principal of all outstanding debt
152	152	obligations of the political subdivision;
153	153	(ii) the estimated remaining interest on
154	154	all outstanding debt obligations of the political subdivision,
155	155	which may be based on the expectations of the political subdivision
156	156	as it relates to the interest due on any variable rate debt
157	157	obligations; and
158	158	(iii) the estimated combined principal and
159	159	interest required to pay on time and in full all outstanding debt
160	160	obligations of the political subdivision, which may be based on the
161	161	expectations of the political subdivision as it relates to the
162	162	interest due on any variable rate debt obligations; and
163	163	(3) any other information that the political
164	164	subdivision considers relevant or necessary to explain the
165	165	information required by this subsection.
166	166	(e) A political subdivision that maintains an Internet
167	167	website shall provide the information described by Subsection (d)
168	168	on its website in an easily accessible manner beginning not later
169	169	than the 21st day before election day and ending on the day after
170	170	the date of the debt obligation election.
171	171	(f) This section provides the ballot proposition language
172	172	for an election to authorize the issuance of debt obligations by a
173	173	political subdivision. To the extent of a conflict between this
174	174	section and another law, this section controls.
175	175	SECTION 5. Section 271.049, Local Government Code, is
176	176	amended by amending Subsections (a) and (b) and adding Subsection
177	177	(e) to read as follows:
178	178	(a) Regardless of the sources of payment of certificates,
179	179	certificates may not be issued unless the issuer publishes notice
180	180	of its intention to issue the certificates. The notice must be
181	181	published:
182	182	(1) once a week for two consecutive weeks in a
183	183	newspaper, as defined by Subchapter C, Chapter 2051, Government
184	184	Code, that is of general circulation in the area of the issuer, with
185	185	the date of the first publication to be before the 45th [30th] day
186	186	before the date tentatively set for the passage of the order or
187	187	ordinance authorizing the issuance of the certificates; and
188	188	(2) if the issuer maintains an Internet website,
189	189	continuously on the issuer's website for at least 45 days before the
190	190	date tentatively set for the passage of the order or ordinance
191	191	authorizing the issuance of the certificates.
192	192	(b) The notice must state:
193	193	(1) the time and place tentatively set for the passage
194	194	of the order or ordinance authorizing the issuance of the
195	195	certificates;
196	196	(2) the [maximum amount and] purpose of the
197	197	certificates to be authorized; [and]
198	198	(3) the manner in which the certificates will be paid
199	199	for, whether by taxes, revenues, or a combination of the two;
200	200	(4) the following:
201	201	(A) the then-current principal of all
202	202	outstanding debt obligations of the issuer;
203	203	(B) the then-current combined principal and
204	204	interest required to pay all outstanding debt obligations of the
205	205	issuer on time and in full, which may be based on the expectations
206	206	of the issuer as it relates to the interest due on any variable rate
207	207	debt obligations;
208	208	(C) the maximum principal amount of the
209	209	certificates to be authorized; and
210	210	(D) the estimated combined principal and
211	211	interest required to pay the certificates to be authorized on time
212	212	and in full;
213	213	(5) the estimated interest rate for the certificates
214	214	to be authorized or that the maximum interest rate for the
215	215	certificates may not exceed the maximum legal interest rate; and
216	216	(6) the maximum maturity date of the certificates to
217	217	be authorized.
218	218	(e) In this section, "debt obligation" means a public
219	219	security, as defined by Section 1201.002, Government Code, secured
220	220	by and payable from ad valorem taxes. The term does not include
221	221	public securities that are designated as self-supporting by the
222	222	political subdivision issuing the securities.
223	223	SECTION 6. Section 1251.002, Government Code, is repealed.
224	224	SECTION 7. (a) The changes in law made by this Act to
225	225	Chapter 1251, Government Code, apply only to a ballot for an
226	226	election ordered on or after the effective date of this Act. An
227	227	election ordered before the effective date of this Act is governed
228	228	by the law in effect when the election was ordered, and the former
229	229	law is continued in effect for that purpose.
230	230	(b) The changes in law made by this Act to Section 271.049,
231	231	Local Government Code, apply only to a certificate of obligation
232	232	for which the first notice of intention to issue the certificate is
233	233	made on or after the effective date of this Act. A certificate of
234	234	obligation for which the first notice of intention to issue the
235	235	certificate is made before the effective date of this Act is
236	236	governed by the law in effect when the notice of intention is made,
237	237	and the former law is continued in effect for that purpose.
238	238	SECTION 8. This Act takes effect September 1, 2017.