| 1 | 1 | | 85R19445 TJB-D |
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| 2 | 2 | | By: Murphy H.B. No. 3336 |
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| 3 | 3 | | Substitute the following for H.B. No. 3336: |
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| 4 | 4 | | By: Holland C.S.H.B. No. 3336 |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to general obligation bonds issued by political |
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| 10 | 10 | | subdivisions. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 4.003(f), Election Code, is amended to |
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| 13 | 13 | | read as follows: |
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| 14 | 14 | | (f) A debt obligation election order required under Section |
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| 15 | 15 | | 3.009 shall be posted: |
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| 16 | 16 | | (1) on election day and during early voting by |
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| 17 | 17 | | personal appearance, in a prominent location at each polling place; |
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| 18 | 18 | | (2) not later than the 21st day before the election, in |
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| 19 | 19 | | three public places in the boundaries of the political subdivision |
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| 20 | 20 | | holding the election; and |
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| 21 | 21 | | (3) during the 21 days before the election, on the |
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| 22 | 22 | | political subdivision's Internet website, prominently and together |
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| 23 | 23 | | with the notice of the election, [and] the contents of the |
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| 24 | 24 | | proposition, and any sample ballot prepared for the election, if |
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| 25 | 25 | | the political subdivision maintains an Internet website. |
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| 26 | 26 | | SECTION 2. Section 85.062, Election Code, is amended by |
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| 27 | 27 | | adding Subsection (h) to read as follows: |
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| 28 | 28 | | (h) In an election at which a political subdivision submits |
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| 29 | 29 | | a proposition to the voters to approve the issuance of general |
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| 30 | 30 | | obligation bonds, the entity that establishes early voting polling |
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| 31 | 31 | | places under this section may not establish the polling places with |
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| 32 | 32 | | the intent to affect the outcome of the election. |
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| 33 | 33 | | SECTION 3. Subtitle C, Title 9, Government Code, is amended |
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| 34 | 34 | | by adding Chapter 1253 to read as follows: |
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| 35 | 35 | | CHAPTER 1253. GENERAL OBLIGATION BONDS ISSUED BY POLITICAL |
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| 36 | 36 | | SUBDIVISIONS |
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| 37 | 37 | | Sec. 1253.001. DEFINITION. In this chapter, "political |
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| 38 | 38 | | subdivision" means a county, municipality, school district, junior |
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| 39 | 39 | | college district, other special district, or other subdivision of |
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| 40 | 40 | | state government. |
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| 41 | 41 | | Sec. 1253.002. LIMITATION ON AUTHORITY TO ISSUE GENERAL |
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| 42 | 42 | | OBLIGATION BONDS. (a) In this section, "improvement" and "personal |
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| 43 | 43 | | property" have the meanings assigned by Section 1.04, Tax Code. |
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| 44 | 44 | | (b) Notwithstanding any other provision of law, a political |
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| 45 | 45 | | subdivision may not issue general obligation bonds to purchase, |
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| 46 | 46 | | improve, or construct improvements or to purchase personal property |
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| 47 | 47 | | if the weighted average maturity of the issue of bonds to finance |
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| 48 | 48 | | the improvements or personal property exceeds 120 percent of the |
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| 49 | 49 | | reasonably expected weighted average economic life of the |
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| 50 | 50 | | improvements or personal property financed with the issue of bonds. |
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| 51 | 51 | | Sec. 1253.003. USE OF UNSPENT GENERAL OBLIGATION BOND |
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| 52 | 52 | | PROCEEDS. (a) A political subdivision may use the unspent proceeds |
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| 53 | 53 | | of issued general obligation bonds only: |
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| 54 | 54 | | (1) for the specific purposes for which the bonds were |
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| 55 | 55 | | authorized; |
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| 56 | 56 | | (2) to retire the bonds; or |
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| 57 | 57 | | (3) for a purpose other than the specific purposes for |
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| 58 | 58 | | which the bonds were authorized if: |
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| 59 | 59 | | (A) the specific purposes are accomplished or |
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| 60 | 60 | | abandoned; and |
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| 61 | 61 | | (B) a majority of the votes cast in an election |
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| 62 | 62 | | held in the political subdivision approve the use of the proceeds |
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| 63 | 63 | | for the proposed purpose. |
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| 64 | 64 | | (b) The election order and the notice of election for an |
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| 65 | 65 | | election described by Subsection (a)(3)(B) must state the proposed |
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| 66 | 66 | | purpose for which the bond proceeds are to be used. |
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| 67 | 67 | | (c) A political subdivision must hold an election described |
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| 68 | 68 | | by Subsection (a)(3)(B) in the same manner as an election to issue |
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| 69 | 69 | | bonds in the political subdivision. |
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| 70 | 70 | | SECTION 4. Chapter 1332, Government Code, is repealed. |
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| 71 | 71 | | SECTION 5. Section 1253.002, Government Code, as added by |
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| 72 | 72 | | this Act, applies only to a general obligation bond authorized to be |
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| 73 | 73 | | issued at an election held on or after the effective date of this |
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| 74 | 74 | | Act. |
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| 75 | 75 | | SECTION 6. This Act takes effect September 1, 2017. |
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