Texas 2017 - 85th 1st C.S.

Texas House Bill HB110 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		85S10028 ATP-F
2		-	By: Murphy, Larson, Israel, H.B. No. 110
3		-	Bonnen of Galveston, Laubenberg, et al.
	2	+	By: Murphy H.B. No. 110
4	3
5	4
6	5		A BILL TO BE ENTITLED
7	6		AN ACT
8	7		relating to the notice required before the issuance of certain debt
9	8		obligations by political subdivisions.
10	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	10		SECTION 1. Section 3.009, Election Code, is amended to read
12	11		as follows:
13	12		Sec. 3.009. CONTENTS OF DEBT OBLIGATION ELECTION ORDER.
14	13		(a) In this section, "debt obligation" means an issued public
15	14		security, as defined by Section 1201.002, Government Code, that is
16	15		secured by and payable from ad valorem taxes. The term does not
17	16		include public securities that are designated as self-supporting by
18	17		the political subdivision issuing the securities.
19	18		(b) The document ordering an election to authorize a
20	19		political subdivision to issue debt obligations must distinctly
21	20		state:
22	21		(1) the proposition language that will appear on the
23	22		ballot;
24	23		(2) the purpose for which the debt obligations are to
25	24		be authorized;
26	25		(3) the principal amount of the debt obligations to be
27	26		authorized;
28	27		(4) that taxes sufficient to pay the [annual]
29	28		principal of and interest on the debt obligations may be imposed;
30	29		(5) a statement of the estimated tax rate if the debt
31	30		obligations are authorized or of the maximum interest rate of the
32	31		debt obligations or any series of the debt obligations, based on the
33	32		market conditions at the time of the election order;
34	33		(6) the maximum maturity date of the debt obligations
35	34		to be authorized or that the debt obligations may be issued to
36	35		mature over a specified number of years not to exceed the maximum
37	36		number of years authorized by law [40];
38	37		(7) the aggregate amount of the outstanding principal
39	38		of the political subdivision's debt obligations as of the date
40	39		[beginning of the political subdivision's fiscal year in which] the
41	40		election is ordered;
42	41		(8) the aggregate amount of the outstanding interest
43	42		on debt obligations of the political subdivision as of the date
44	43		[beginning of the political subdivision's fiscal year in which] the
45	44		election is ordered, which may be based on the expectations of the
46	45		political subdivision as it relates to variable rate debt
47	46		obligations; and
48	47		(9) the ad valorem debt service tax rate for the
49	48		political subdivision at the time the election is ordered,
50	49		expressed as an amount per $100 valuation of taxable property.
51	50		SECTION 2. Section 52.072, Election Code, is amended by
52	51		amending Subsection (e) and adding Subsection (f) to read as
53	52		follows:
54	53		(e) In addition to any other requirement imposed by law for
55	54		a proposition, including a provision prescribing the proposition
56	55		language, a proposition submitted to the voters for approval of
57	56		[the issuance of bonds or] the imposition, increase, or reduction
58	57		of a tax shall specifically state, as applicable:
59	58		(1) [with respect to a proposition seeking voter
60	59		approval of the issuance of bonds:
61	60		[(A) the total principal amount of the bonds to
62	61		be authorized, if approved; and
63	62		[(B) a general description of the purposes for
64	63		which the bonds are to be authorized, if approved;
65	64		[(2)] with respect to a proposition that only seeks
66	65		voter approval of the imposition or increase of a tax, the amount of
67	66		or maximum tax rate of the tax or tax increase for which approval is
68	67		sought; or
69	68		(2) [(3)] with respect to a proposition that only
70	69		seeks voter approval of the reduction of a tax, the amount of tax
71	70		rate reduction or the tax rate for which approval is sought.
72	71		(f) A political subdivision that submits to the voters a
73	72		proposition for the approval of the issuance of debt obligations
74	73		shall prescribe the wording of the proposition that is to appear on
75	74		the ballot in accordance with the requirements of Subchapter B,
76	75		Chapter 1251, Government Code. In this subsection, "debt
77	76		obligation" and "political subdivision" have the meanings assigned
78	77		by Section 1251.051, Government Code.
79	78		SECTION 3. Chapter 1251, Government Code, is amended by
80	79		designating Sections 1251.001, 1251.003, 1251.004, 1251.005, and
81	80		1251.006 as Subchapter A and adding a subchapter heading to read as
82	81		follows:
83	82		SUBCHAPTER A. PROVISIONS RELATING GENERALLY TO BOND ELECTIONS
84	83		SECTION 4. Chapter 1251, Government Code, is amended by
85	84		adding Subchapter B to read as follows:
86	85		SUBCHAPTER B. BALLOT FOR DEBT OBLIGATIONS ISSUED BY POLITICAL
87	86		SUBDIVISION
88	87		Sec. 1251.051. DEFINITIONS. In this subchapter:
89	88		(1) "Debt obligation" means a public security as
90	89		defined by Section 1201.002 secured by and payable from ad valorem
91	90		taxes. The term does not include public securities that are
92	91		designated as self-supporting by the political subdivision issuing
93	92		the securities.
94	93		(2) "Debt obligation election order" means the order,
95	94		ordinance, or resolution ordering an election to authorize the
96	95		issuance of debt obligations.
97	96		(3) "Political subdivision" means a municipality,
98	97		county, school district, or special taxing district.
99	98		Sec. 1251.052. FORM. (a) The ballot for a measure seeking
100	99		voter approval of the issuance of debt obligations by a political
101	100		subdivision shall specifically state:
102	101		(1) a general description of the purposes for which
103	102		the debt obligations are to be authorized;
104	103		(2) the total principal amount of the debt obligations
105	104		to be authorized; and
106	105		(3) that taxes sufficient to pay the principal of and
107	106		interest on the debt obligations will be imposed.
108	107		(b) In addition to the requirements of Subsection (a), the
109	108		ballot for a measure seeking voter approval of the issuance of debt
110	109		obligations by a political subdivision with at least 250 registered
111	110		voters on the date the governing body of the political subdivision
112	111		adopts the debt obligation election order shall specifically state
113	112		the estimated maximum annual increase in the amount of taxes that
114	113		would be imposed on a residence homestead in the political
115	114		subdivision with an appraised value of $100,000 to repay the debt
116	115		obligations to be authorized, if approved, based upon assumptions
117	116		made by the governing body of the political subdivision.
118	117		(c) The governing body of the political subdivision shall
119	118		identify in the debt obligation election order the major
120	119		assumptions made in connection with the statement required by
121	120		Subsection (b), including:
122	121		(1) the amortization of the political subdivision's
123	122		debt obligations, including outstanding debt obligations and the
124	123		proposed debt obligations;
125	124		(2) changes in estimated future appraised values
126	125		within the political subdivision; and
127	126		(3) the assumed interest rate on the proposed debt
128	127		obligations.
129	128		(d) A political subdivision with at least 250 registered
130	129		voters on the date the governing body of the political subdivision
131	130		adopts the debt obligation election order must prepare a voter
132	131		information document for each proposition to be voted on at the
133	132		election. The political subdivision shall post the voter
134	133		information document in the same manner as a debt obligation
135	134		election order is required to be posted under Section 4.003(f),
136	135		Election Code, and may include the voter information document in
137	136		the debt obligation election order. The voter information document
138	137		must distinctly state:
139	138		(1) the language that will appear on the ballot;
140	139		(2) the following information formatted as a table:
141	140		(A) the principal of the debt obligations to be
142	141		authorized;
143	142		(B) the estimated interest for the debt
144	143		obligations to be authorized;
145	144		(C) the estimated combined principal and
146	145		interest required to pay on time and in full the debt obligations to
147	146		be authorized; and
148	147		(D) as of the date the political subdivision
149	148		adopts the debt obligation election order:
150	149		(i) the principal of all outstanding debt
151	150		obligations of the political subdivision;
152	151		(ii) the estimated remaining interest on
153	152		all outstanding debt obligations of the political subdivision,
154	153		which may be based on the expectations of the political subdivision
155	154		as it relates to the interest due on any variable rate debt
156	155		obligations; and
157	156		(iii) the estimated combined principal and
158	157		interest required to pay on time and in full all outstanding debt
159	158		obligations of the political subdivision, which may be based on the
160	159		expectations of the political subdivision as it relates to the
161	160		interest due on any variable rate debt obligations; and
162	161		(3) any other information that the political
163	162		subdivision considers relevant or necessary to explain the
164	163		information required by this subsection.
165	164		(e) A political subdivision that maintains an Internet
166	165		website shall provide the information described by Subsection (d)
167	166		on its website in an easily accessible manner beginning not later
168	167		than the 21st day before election day and ending on the day after
169	168		the date of the debt obligation election.
170	169		(f) This section provides the ballot proposition language
171	170		for an election to authorize the issuance of debt obligations by a
172	171		political subdivision. To the extent of a conflict between this
173	172		section and another law, this section controls.
174	173		SECTION 5. Section 271.049, Local Government Code, is
175	174		amended by amending Subsections (a) and (b) and adding Subsection
176	175		(e) to read as follows:
177	176		(a) Regardless of the sources of payment of certificates,
178	177		certificates may not be issued unless the issuer publishes notice
179	178		of its intention to issue the certificates. The notice must be
180	179		published:
181	180		(1) once a week for two consecutive weeks in a
182	181		newspaper, as defined by Subchapter C, Chapter 2051, Government
183	182		Code, that is of general circulation in the area of the issuer, with
184	183		the date of the first publication to be before the 45th [30th] day
185	184		before the date tentatively set for the passage of the order or
186	185		ordinance authorizing the issuance of the certificates; and
187	186		(2) if the issuer maintains an Internet website,
188	187		continuously on the issuer's website for at least 45 days before the
189	188		date tentatively set for the passage of the order or ordinance
190	189		authorizing the issuance of the certificates.
191	190		(b) The notice must state:
192	191		(1) the time and place tentatively set for the passage
193	192		of the order or ordinance authorizing the issuance of the
194	193		certificates;
195	194		(2) the [maximum amount and] purpose of the
196	195		certificates to be authorized; [and]
197	196		(3) the manner in which the certificates will be paid
198	197		for, whether by taxes, revenues, or a combination of the two;
199	198		(4) the following:
200	199		(A) the then-current principal of all
201	200		outstanding debt obligations of the issuer;
202	201		(B) the then-current combined principal and
203	202		interest required to pay all outstanding debt obligations of the
204	203		issuer on time and in full, which may be based on the expectations
205	204		of the issuer as it relates to the interest due on any variable rate
206	205		debt obligations;
207	206		(C) the maximum principal amount of the
208	207		certificates to be authorized; and
209	208		(D) the estimated combined principal and
210	209		interest required to pay the certificates to be authorized on time
211	210		and in full;
212	211		(5) the estimated interest rate for the certificates
213	212		to be authorized or that the maximum interest rate for the
214	213		certificates may not exceed the maximum legal interest rate; and
215	214		(6) the maximum maturity date of the certificates to
216	215		be authorized.
217	216		(e) In this section, "debt obligation" means a public
218	217		security, as defined by Section 1201.002, Government Code, secured
219	218		by and payable from ad valorem taxes. The term does not include
220	219		public securities that are designated as self-supporting by the
221	220		political subdivision issuing the securities.
222	221		SECTION 6. Section 1251.002, Government Code, is repealed.
223	222		SECTION 7. (a) The changes in law made by this Act to
224	223		Chapter 1251, Government Code, apply only to a ballot for an
225	224		election ordered on or after the effective date of this Act. An
226	225		election ordered before the effective date of this Act is governed
227	226		by the law in effect when the election was ordered, and the former
228	227		law is continued in effect for that purpose.
229	228		(b) The changes in law made by this Act to Section 271.049,
230	229		Local Government Code, apply only to a certificate of obligation
231	230		for which the first notice of intention to issue the certificate is
232	231		made on or after the effective date of this Act. A certificate of
233	232		obligation for which the first notice of intention to issue the
234	233		certificate is made before the effective date of this Act is
235	234		governed by the law in effect when the notice of intention is made,
236	235		and the former law is continued in effect for that purpose.
237	236		SECTION 8. This Act takes effect December 1, 2017.