Texas 2017 - 85th Regular

Texas Senate Bill SB245 Compare Versions

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

Old	New	Differences
1	1	85R522 TJB-D
2	2	By: Burton S.B. No. 245
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to voter information provided by political subdivisions
8	8	before an election to authorize the issuance of bonds.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Chapter 1251, Government Code, is amended by
11	11	designating Sections 1251.001, 1251.002, 1251.003, 1251.004,
12	12	1251.005, and 1251.006 as Subchapter A and adding a heading to
13	13	Subchapter A to read as follows:
14	14	SUBCHAPTER A. BOND MATTERS AFFECTING COUNTIES AND MUNICIPALITIES
15	15	SECTION 2. Chapter 1251, Government Code, is amended by
16	16	adding Subchapter B to read as follows:
17	17	SUBCHAPTER B. BOND MATTERS AFFECTING MORE THAN ONE TYPE OF
18	18	POLITICAL SUBDIVISION
19	19	Sec. 1251.051. DEFINITIONS. In this subchapter:
20	20	(1) "Debt obligation" means an issued public security,
21	21	as defined by Section 1201.002, secured by property taxes.
22	22	(2) "Political subdivision" means a county,
23	23	municipality, school district, junior college district, other
24	24	special district, or other subdivision of state government.
25	25	(3) "Secured self-supporting debt obligation" means a
26	26	debt obligation secured by property taxes but payable from revenue
27	27	from another source.
28	28	Sec. 1251.052. PUBLIC HEARING. (a) Before a political
29	29	subdivision may hold an election to authorize the issuance of
30	30	bonds, the governing body of the political subdivision must conduct
31	31	a public hearing at which persons interested in the issuance of the
32	32	bonds are given the opportunity to be heard.
33	33	(b) The governing body must hold the hearing not earlier
34	34	than the day the governing body adopts the election order or later
35	35	than the first day before the date the period for early voting by
36	36	personal appearance begins for the election, as determined under
37	37	Section 85.001, Election Code.
38	38	(c) Not earlier than the 30th day or later than the 15th day
39	39	before the date of the hearing, the political subdivision must:
40	40	(1) provide notice of the hearing and each voter
41	41	information document described by Section 1251.053 by:
42	42	(A) publication in at least one newspaper of
43	43	general circulation in the county in which the political
44	44	subdivision is wholly or primarily located;
45	45	(B) posting on:
46	46	(i) the political subdivision's Internet
47	47	website; and
48	48	(ii) each other Internet website for which
49	49	the political subdivision controls the content of the posting,
50	50	including a social media site; and
51	51	(C) inclusion in the political subdivision's
52	52	newsletter, circular, or similar document designed to provide
53	53	information to the residents of the political subdivision,
54	54	regardless of how delivered, if the political subdivision
55	55	periodically delivers such a document; and
56	56	(2) send by first-class mail to each owner of taxable
57	57	property located in the political subdivision the voter information
58	58	document described by Section 1251.053 and a cover letter that
59	59	includes:
60	60	(A) the date of the hearing;
61	61	(B) the purpose of the hearing;
62	62	(C) the language that will appear on the ballot;
63	63	and
64	64	(D) the estimated increase in the property tax
65	65	debt levy of the political subdivision for all taxable property
66	66	owned by the property owner and located in the political
67	67	subdivision.
68	68	(d) A political subdivision must determine the estimate
69	69	required by Subsection (c)(2)(D) in the manner prescribed by
70	70	comptroller rule.
71	71	(e) The Texas Ethics Commission shall provide guidelines
72	72	for political subdivisions regarding the manner in which the
73	73	hearing is conducted and additional information is provided on the
74	74	form prescribed by the secretary of state under Section 1251.053(f)
75	75	without violating electioneering and political advertising laws,
76	76	including Section 255.003, Election Code, and Section 11.169,
77	77	Education Code.
78	78	Sec. 1251.053. VOTER INFORMATION DOCUMENT. (a) A
79	79	political subdivision must prepare a separate voter information
80	80	document for each proposition to be discussed at a hearing required
81	81	by Section 1251.052.
82	82	(b) Each voter information document must distinctly state:
83	83	(1) the language that will appear on the ballot;
84	84	(2) the purpose for which the bonds are to be
85	85	authorized;
86	86	(3) the maturity date of the bonds to be authorized or
87	87	that the bonds may be issued to mature over a specified number of
88	88	years not to exceed the maximum number of years authorized by law;
89	89	(4) that taxes sufficient to pay the annual principal
90	90	of and interest on the bonds may be imposed;
91	91	(5) the maximum rate of interest for the bonds to be
92	92	authorized;
93	93	(6) the following information formatted as a table:
94	94	(A) the property tax debt rate expressed in
95	95	dollars per $100 valuation of all taxable property in the political
96	96	subdivision, stated as:
97	97	(i) the existing rate;
98	98	(ii) the estimated rate if the bonds are
99	99	authorized; and
100	100	(iii) the estimated increase in the rate if
101	101	the bonds are authorized; and
102	102	(B) the amount expressed in dollars of the
103	103	property tax debt levy of the political subdivision per residence
104	104	with a taxable value of $100,000, stated as:
105	105	(i) the existing levy;
106	106	(ii) the estimated levy if the bonds are
107	107	authorized; and
108	108	(iii) the estimated increase in the levy if
109	109	the bonds are authorized;
110	110	(7) the following information formatted as a second
111	111	table and stated as a total amount and, if the political subdivision
112	112	is a municipality, county, or school district, as a per capita
113	113	amount:
114	114	(A) the principal of the bonds to be authorized;
115	115	(B) the estimated interest for the bonds to be
116	116	authorized;
117	117	(C) the estimated combined principal and
118	118	interest required to pay on time and in full the bonds to be
119	119	authorized; and
120	120	(D) as of the date the political subdivision
121	121	adopts the bond election order:
122	122	(i) the principal of all outstanding debt
123	123	obligations of the political subdivision secured by and payable
124	124	from property taxes;
125	125	(ii) the estimated remaining interest of
126	126	all outstanding debt obligations of the political subdivision
127	127	secured by and payable from property taxes; and
128	128	(iii) the estimated combined principal and
129	129	interest required to pay on time and in full all outstanding debt
130	130	obligations of the political subdivision secured by and payable
131	131	from property taxes;
132	132	(8) the following information as of the date the
133	133	political subdivision adopts the bond election order, formatted as
134	134	a third table:
135	135	(A) the principal of all outstanding secured
136	136	self-supporting debt obligations of the political subdivision;
137	137	(B) the estimated remaining interest of all
138	138	outstanding secured self-supporting debt obligations of the
139	139	political subdivision; and
140	140	(C) the estimated combined principal and
141	141	interest required to pay on time and in full all outstanding secured
142	142	self-supporting debt obligations of the political subdivision; and
143	143	(9) any other information that the political
144	144	subdivision considers relevant or necessary to explain the values
145	145	required by Subdivisions (5)-(8), including:
146	146	(A) an amount required by Subdivision (7) stated
147	147	as a per capita amount if the political subdivision is not required
148	148	to provide the amount under Subdivision (7);
149	149	(B) an explanation of the payment sources for the
150	150	different types of debt; and
151	151	(C) a value for the following expressed as a good
152	152	faith projection as of the last day of the maximum term of the bonds
153	153	to be authorized:
154	154	(i) a per capita amount required by
155	155	Subdivision (7);
156	156	(ii) an estimated rate required by
157	157	Subdivision (6)(A)(ii); and
158	158	(iii) an estimated levy required by
159	159	Subdivision (6)(B)(ii).
160	160	(c) A political subdivision must determine each estimate or
161	161	projection required or authorized by Subsection (b) in the manner
162	162	prescribed by comptroller rule.
163	163	(d) Each voter information document must be printed:
164	164	(1) on not more than two pages that are not wider than
165	165	8-1/2 inches and not longer than 14 inches;
166	166	(2) in type not smaller than 12-point type; and
167	167	(3) in the form prescribed by the secretary of state.
168	168	(e) The governing body of the political subdivision must
169	169	make a copy of each voter information document available to each
170	170	individual attending the hearing.
171	171	(f) The secretary of state by rule shall prescribe the form
172	172	of a voter information document.
173	173	(g) A good faith estimate or projection required or
174	174	authorized by Subsection (b) determined in the manner prescribed by
175	175	comptroller rule does not constitute a breach of contract with the
176	176	voters solely because the estimate or projection is later
177	177	determined to be incorrect.
178	178	Sec. 1251.054. ONLINE SAMPLE BALLOT. A sample of the ballot
179	179	printed for an election to authorize a political subdivision to
180	180	issue bonds must be posted on the political subdivision's Internet
181	181	website as soon as practicable after the official ballots have been
182	182	prepared and must remain posted until the day following the
183	183	election.
184	184	Sec. 1251.055. INTERNET WEBSITE. A political subdivision
185	185	shall maintain an Internet website to comply with this subchapter.
186	186	Sec. 1251.056. COMPTROLLER RULES. The comptroller shall
187	187	adopt rules to implement this subchapter, including rules that
188	188	prescribe the manner by which a political subdivision must
189	189	determine each estimate or projection required or authorized by
190	190	this subchapter.
191	191	SECTION 3. (a) Section 1251.052, Government Code, as added
192	192	by this Act, applies only to a bond election ordered on or after
193	193	January 1, 2018. A bond election ordered before January 1, 2018, is
194	194	governed by the law in effect when the bond election was ordered,
195	195	and the former law is continued in effect for that purpose.
196	196	(b) Not later than November 1, 2017, the comptroller of
197	197	public accounts shall adopt the rules required by Section 1251.056,
198	198	Government Code, as added by this Act.
199	199	(c) Not later than November 1, 2017, the Texas Ethics
200	200	Commission shall make available on the Texas Ethics Commission's
201	201	Internet website the guidelines required by Section 1251.052(e),
202	202	Government Code, as added by this Act.
203	203	(d) Not later than November 1, 2017, the secretary of state
204	204	shall make available on the secretary of state's Internet website a
205	205	form of the voter information document described by Section
206	206	1251.053(b), Government Code, as added by this Act.
207	207	SECTION 4. This Act takes effect September 1, 2017.