| 1 | 1 | | 85R1275 TJB-D |
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| 2 | 2 | | By: Burton S.B. No. 1821 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to ballot propositions authorizing certain political |
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| 8 | 8 | | subdivisions to issue bonds. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Chapter 1251, Government Code, is amended by |
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| 11 | 11 | | designating Sections 1251.001, 1251.002, 1251.003, 1251.004, |
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| 12 | 12 | | 1251.005, and 1251.006 as Subchapter A and adding a subchapter |
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| 13 | 13 | | heading to read as follows: |
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| 14 | 14 | | SUBCHAPTER A. BOND ELECTION REQUIREMENTS FOR COUNTIES AND |
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| 15 | 15 | | MUNICIPALITIES |
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| 16 | 16 | | SECTION 2. Chapter 1251, Government Code, is amended by |
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| 17 | 17 | | adding Subchapter B to read as follows: |
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| 18 | 18 | | SUBCHAPTER B. BOND ELECTION BALLOTS FOR CERTAIN POLITICAL |
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| 19 | 19 | | SUBDIVISIONS |
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| 20 | 20 | | Sec. 1251.051. DEFINITIONS. In this subchapter: |
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| 21 | 21 | | (1) "Capital appreciation bond" means a bond that |
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| 22 | 22 | | accrues and compounds interest from its date of delivery, the |
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| 23 | 23 | | interest on which by its terms is payable only on maturity or prior |
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| 24 | 24 | | redemption. |
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| 25 | 25 | | (2) "Political subdivision" means a county, |
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| 26 | 26 | | municipality, or school district. |
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| 27 | 27 | | Sec. 1251.052. CONTENTS OF BALLOT PROPOSITION. (a) The |
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| 28 | 28 | | proposition submitted for an election to authorize a political |
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| 29 | 29 | | subdivision to issue bonds supported by property taxes must: |
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| 30 | 30 | | (1) distinctly state the projected annual increase in |
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| 31 | 31 | | property taxes attributable to the bonds to be issued that a |
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| 32 | 32 | | homeowner of an average-priced home within the political |
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| 33 | 33 | | subdivision may be required to pay; and |
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| 34 | 34 | | (2) if the bonds to be issued may be of a type that |
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| 35 | 35 | | accrue and defer interest costs, such as capital appreciation |
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| 36 | 36 | | bonds: |
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| 37 | 37 | | (A) include a conspicuous statement that the |
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| 38 | 38 | | interest costs of the bonds continue to accrue but are deferred to a |
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| 39 | 39 | | later date; and |
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| 40 | 40 | | (B) distinctly state the range of the projected |
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| 41 | 41 | | tax impact on property taxes described by Subdivision (1) from the |
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| 42 | 42 | | date the bonds are issued until the date the bonds mature. |
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| 43 | 43 | | (b) The requirements for a proposition prescribed by this |
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| 44 | 44 | | section are in addition to any other requirements prescribed by |
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| 45 | 45 | | law. To the extent of a conflict between this section and Section |
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| 46 | 46 | | 52.072, Election Code, this section controls. |
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| 47 | 47 | | (c) A political subdivision must determine a projection |
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| 48 | 48 | | required by Subsection (a) in the manner prescribed by comptroller |
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| 49 | 49 | | rule. |
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| 50 | 50 | | Sec. 1251.053. COMPTROLLER RULES. The comptroller shall |
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| 51 | 51 | | adopt rules that prescribe the manner by which a political |
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| 52 | 52 | | subdivision must determine a projection required by Section |
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| 53 | 53 | | 1251.052. |
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| 54 | 54 | | SECTION 3. (a) Section 1251.052, Government Code, as added |
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| 55 | 55 | | by this Act, applies only to a bond election ordered on or after |
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| 56 | 56 | | January 1, 2018. A bond election ordered before January 1, 2018, is |
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| 57 | 57 | | governed by the law in effect when the bond election was ordered, |
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| 58 | 58 | | and the former law is continued in effect for that purpose. |
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| 59 | 59 | | (b) Not later than November 1, 2017, the comptroller of |
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| 60 | 60 | | public accounts shall adopt the rules required by Section 1251.053, |
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| 61 | 61 | | Government Code, as added by this Act. |
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| 62 | 62 | | SECTION 4. This Act takes effect September 1, 2017. |
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