85R1275 TJB-D
By: Burton S.B. No. 1821
A BILL TO BE ENTITLED
AN ACT
relating to ballot propositions authorizing certain political
subdivisions to issue bonds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 1251, Government Code, is amended by
designating Sections 1251.001, 1251.002, 1251.003, 1251.004,
1251.005, and 1251.006 as Subchapter A and adding a subchapter
heading to read as follows:
SUBCHAPTER A. BOND ELECTION REQUIREMENTS FOR COUNTIES AND
MUNICIPALITIES
SECTION 2. Chapter 1251, Government Code, is amended by
adding Subchapter B to read as follows:
SUBCHAPTER B. BOND ELECTION BALLOTS FOR CERTAIN POLITICAL
SUBDIVISIONS
Sec. 1251.051. DEFINITIONS. In this subchapter:
(1) "Capital appreciation bond" means a bond that
accrues and compounds interest from its date of delivery, the
interest on which by its terms is payable only on maturity or prior
redemption.
(2) "Political subdivision" means a county,
municipality, or school district.
Sec. 1251.052. CONTENTS OF BALLOT PROPOSITION. (a) The
proposition submitted for an election to authorize a political
subdivision to issue bonds supported by property taxes must:
(1) distinctly state the projected annual increase in
property taxes attributable to the bonds to be issued that a
homeowner of an average-priced home within the political
subdivision may be required to pay; and
(2) if the bonds to be issued may be of a type that
accrue and defer interest costs, such as capital appreciation
bonds:
(A) include a conspicuous statement that the
interest costs of the bonds continue to accrue but are deferred to a
later date; and
(B) distinctly state the range of the projected
tax impact on property taxes described by Subdivision (1) from the
date the bonds are issued until the date the bonds mature.
(b) The requirements for a proposition prescribed by this
section are in addition to any other requirements prescribed by
law. To the extent of a conflict between this section and Section
52.072, Election Code, this section controls.
(c) A political subdivision must determine a projection
required by Subsection (a) in the manner prescribed by comptroller
rule.
Sec. 1251.053. COMPTROLLER RULES. The comptroller shall
adopt rules that prescribe the manner by which a political
subdivision must determine a projection required by Section
1251.052.
SECTION 3. (a) Section 1251.052, Government Code, as added
by this Act, applies only to a bond election ordered on or after
January 1, 2018. A bond election ordered before January 1, 2018, is
governed by the law in effect when the bond election was ordered,
and the former law is continued in effect for that purpose.
(b) Not later than November 1, 2017, the comptroller of
public accounts shall adopt the rules required by Section 1251.053,
Government Code, as added by this Act.
SECTION 4. This Act takes effect September 1, 2017.