Texas 2019 - 86th Regular

Texas House Bill HB440 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 440
	1	+	By: Murphy, et al. (Senate Sponsor - Lucio) H.B. No. 440
	2	+	(In the Senate - Received from the House April 3, 2019;
	3	+	April 4, 2019, read first time and referred to Committee on
	4	+	Property Tax; April 29, 2019, reported favorably by the following
	5	+	vote: Yeas 5, Nays 0; April 29, 2019, sent to printer.)
	6	+	Click here to see the committee vote
2	7
3	8
	9	+	A BILL TO BE ENTITLED
4	10		AN ACT
5	11		relating to general obligation bonds issued by political
6	12		subdivisions.
7	13		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	14		SECTION 1. Subchapter E, Chapter 45, Education Code, is
9	15		amended by adding Section 45.1105 to read as follows:
10	16		Sec. 45.1105. USE OF UNSPENT GENERAL OBLIGATION BOND
11	17		PROCEEDS. (a) A school district may use the unspent proceeds of
12	18		issued general obligation bonds only:
13	19		(1) for the specific purposes for which the bonds were
14	20		authorized;
15	21		(2) to retire the bonds; or
16	22		(3) for a purpose other than the specific purposes for
17	23		which the bonds were authorized if:
18	24		(A) the specific purposes are accomplished or
19	25		abandoned; and
20	26		(B) the board of trustees at a public meeting
21	27		held only for the purpose of considering the use of the unspent bond
22	28		proceeds approves in separate votes the use of the proceeds for:
23	29		(i) a purpose other than to retire the
24	30		bonds; and
25	31		(ii) the purpose specified at the time the
26	32		vote is taken.
27	33		(b) In addition to other requirements of law, notice of a
28	34		public meeting held under this section must include a statement
29	35		that the board of trustees will consider the use of unspent bond
30	36		proceeds for a purpose other than the specific purposes for which
31	37		the bonds were authorized.
32	38		(c) A public meeting held under this section must provide
33	39		the public an opportunity to address the board of trustees on the
34	40		question of using the unspent bond proceeds for a purpose other than
35	41		the specific purposes for which the bonds were authorized.
36	42		SECTION 2. Section 4.003(f), Election Code, is amended to
37	43		read as follows:
38	44		(f) A debt obligation election order required under Section
39	45		3.009 shall be posted:
40	46		(1) on election day and during early voting by
41	47		personal appearance, in a prominent location at each polling place;
42	48		(2) not later than the 21st day before the election, in
43	49		three public places in the boundaries of the political subdivision
44	50		holding the election; and
45	51		(3) during the 21 days before the election, on the
46	52		political subdivision's Internet website, prominently and together
47	53		with the notice of the election, [and] the contents of the
48	54		proposition, and any sample ballot prepared for the election, if
49	55		the political subdivision maintains an Internet website.
50	56		SECTION 3. Subtitle C, Title 9, Government Code, is amended
51	57		by adding Chapter 1253 to read as follows:
52	58		CHAPTER 1253. GENERAL OBLIGATION BONDS ISSUED BY POLITICAL
53	59		SUBDIVISIONS
54	60		Sec. 1253.001. DEFINITION. In this chapter, "political
55	61		subdivision" means a county, municipality, school district, junior
56	62		college district, other special district, or other subdivision of
57	63		state government.
58	64		Sec. 1253.002. LIMITATION ON AUTHORITY TO ISSUE GENERAL
59		-	OBLIGATION BONDS. (a) In this section, "personal property" has ~~the~~
60		-	meaning assigned by Section 1.04, Tax Code.
	65	+	OBLIGATION BONDS. (a) In this section, "personal property" has
	66	+	the meaning assigned by Section 1.04, Tax Code.
61	67		(b) Notwithstanding any other provision of law, a political
62	68		subdivision may not issue general obligation bonds to purchase,
63		-	improve, or construct ~~one or more improvements~~ to real property, to
64		-	purchase ~~one or more items of~~ personal property~~, or to do both,~~ if
65		-	~~the weighted average maturity of the~~ issue of bonds ~~exceeds 120~~
66		-	percent of the reasonably expected weighted average ~~economic life~~
67		-	of the ~~improvements and~~ personal property financed with ~~the issue~~
68		-	of bonds.
	69	+	improve, or construct an improvement to real property or to
	70	+	purchase personal property if the weighted average maturity of the
	71	+	issue of bonds to finance the improvement or personal property
	72	+	exceeds 120 percent of the reasonably expected weighted average
	73	+	economic life of the improvement or personal property financed with
	74	+	the issue of bonds.
69	75		Sec. 1253.003. USE OF UNSPENT GENERAL OBLIGATION BOND
70		-	PROCEEDS. (a) A political subdivision other than a school ~~district~~
71		-	may use the unspent proceeds of issued general obligation ~~bonds~~
72		-	only:
	76	+	PROCEEDS. (a) A political subdivision other than a school
	77	+	district may use the unspent proceeds of issued general obligation
	78	+	bonds only:
73	79		(1) for the specific purposes for which the bonds were
74	80		authorized;
75	81		(2) to retire the bonds; or
76	82		(3) for a purpose other than the specific purposes for
77	83		which the bonds were authorized if:
78	84		(A) the specific purposes are accomplished or
79	85		abandoned; and
80	86		(B) a majority of the votes cast in an election
81	87		held in the political subdivision approve the use of the proceeds
82	88		for the proposed purpose.
83	89		(b) The election order and the notice of election for an
84	90		election described by Subsection (a)(3)(B) must state the proposed
85	91		purpose for which the bond proceeds are to be used.
86	92		(c) A political subdivision must hold an election described
87	93		by Subsection (a)(3)(B) in the same manner as an election to issue
88	94		bonds in the political subdivision.
89	95		SECTION 4. Chapter 1332, Government Code, is repealed.
90	96		SECTION 5. Section 1253.002, Government Code, as added by
91	97		this Act, applies only to a general obligation bond authorized to be
92	98		issued at an election held on or after the effective date of this
93	99		Act.
94	100		SECTION 6. This Act takes effect September 1, 2019.
95		-	______________________________ ______________________________
96		-	President of the Senate Speaker of the House
97		-	I certify that H.B. No. 440 was passed by the House on
98		-	April
99		-	2, 2019, by the following vote: Yeas 146, Nays 1, 1 present,
100		-	not voting; and that the House concurred in Senate amendments to
101		-	H.B. No. 440 on May 22, 2019, by the following vote: Yeas 144, Nays
102		-	0, 1 present, not voting.
103		-	______________________________
104		-	Chief Clerk of the House
105		-	I certify that H.B. No. 440 was passed by the Senate, with
106		-	amendments, on May 14, 2019, by the following vote: Yeas 31, Nays
107		-	0.
108		-	______________________________
109		-	Secretary of the Senate
110		-	APPROVED: __________________
111		-	Date
112		-	__________________
113		-	Governor
	101	+	* * * * *