Texas 2019 - 86th Regular

Texas House Bill HB477 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 477
	1	+	By: Murphy, et al. H.B. No. 477
	2	+	(Senate Sponsor - Bettencourt, Birdwell)
	3	+	(In the Senate - Received from the House April 11, 2019;
	4	+	April 15, 2019, read first time and referred to Committee on
	5	+	Property Tax; May 6, 2019, reported adversely, with favorable
	6	+	Committee Substitute by the following vote: Yeas 5, Nays 0;
	7	+	May 6, 2019, sent to printer.)
	8	+	Click here to see the committee vote
	9	+	COMMITTEE SUBSTITUTE FOR H.B. No. 477 By: Bettencourt
2	10
3	11
	12	+	A BILL TO BE ENTITLED
4	13		AN ACT
5	14		relating to the notice required before the issuance of certain debt
6	15		obligations by political subdivisions.
7	16		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	17		SECTION 1. Section 3.009, Election Code, is amended to read
9	18		as follows:
10	19		Sec. 3.009. CONTENTS OF DEBT OBLIGATION ELECTION ORDER.
11	20		(a) In this section, "debt obligation" means an issued public
12	21		security, as defined by Section 1201.002, Government Code, that is
13	22		secured by and payable from ad valorem taxes. The term does not
14	23		include public securities that are designated as self-supporting by
15	24		the political subdivision issuing the securities.
16	25		(b) The document ordering an election to authorize a
17	26		political subdivision to issue debt obligations must distinctly
18	27		state:
19	28		(1) the proposition language that will appear on the
20	29		ballot;
21	30		(2) the purpose for which the debt obligations are to
22	31		be authorized;
23	32		(3) the principal amount of the debt obligations to be
24	33		authorized;
25	34		(4) that taxes sufficient to pay the [annual]
26	35		principal of and interest on the debt obligations may be imposed;
27	36		(5) a statement of the estimated tax rate if the debt
28	37		obligations are authorized or of the maximum interest rate of the
29	38		debt obligations or any series of the debt obligations, based on the
30	39		market conditions at the time of the election order;
31	40		(6) the maximum maturity date of the debt obligations
32	41		to be authorized or that the debt obligations may be issued to
33	42		mature over a specified number of years not to exceed the maximum
34	43		number of years authorized by law [40];
35	44		(7) the aggregate amount of the outstanding principal
36	45		of the political subdivision's debt obligations as of the date
37	46		[beginning of the political subdivision's fiscal year in which] the
38	47		election is ordered;
39	48		(8) the aggregate amount of the outstanding interest
40	49		on debt obligations of the political subdivision as of the date
41	50		[beginning of the political subdivision's fiscal year in which] the
42	51		election is ordered, which may be based on the political
43	52		subdivision's expectations relative to variable rate debt
44	53		obligations; and
45	54		(9) the ad valorem debt service tax rate for the
46	55		political subdivision at the time the election is ordered,
47	56		expressed as an amount per $100 valuation of taxable property.
48	57		SECTION 2. Section 52.072, Election Code, is amended by
49	58		amending Subsection (e) and adding Subsection (f) to read as
50	59		follows:
51	60		(e) In addition to any other requirement imposed by law for
52	61		a proposition, including a provision prescribing the proposition
53	62		language, a proposition submitted to the voters for approval of
54	63		[the issuance of bonds or] the imposition, increase, or reduction
55	64		of a tax shall specifically state, as applicable:
56	65		(1) [with respect to a proposition seeking voter
57	66		approval of the issuance of bonds:
58	67		[(A) the total principal amount of the bonds to
59	68		be authorized, if approved; and
60	69		[(B) a general description of the purposes for
61	70		which the bonds are to be authorized, if approved;
62	71		[(2)] with respect to a proposition that only seeks
63	72		voter approval of the imposition or increase of a tax, the amount of
64	73		or maximum tax rate of the tax or tax increase for which approval is
65	74		sought; or
66	75		(2) [(3)] with respect to a proposition that only
67	76		seeks voter approval of the reduction of a tax, the amount of tax
68	77		rate reduction or the tax rate for which approval is sought.
69	78		(f) A political subdivision that submits to the voters a
70	79		proposition for the approval of the issuance of debt obligations
71	80		shall prescribe the wording of the proposition that is to appear on
72	81		the ballot in accordance with the requirements of Subchapter B,
73	82		Chapter 1251, Government Code. In this subsection, "debt
74	83		obligation" and "political subdivision" have the meanings assigned
75	84		by Section 1251.051, Government Code.
76	85		SECTION 3. Chapter 1251, Government Code, is amended by
77	86		designating Sections 1251.001, 1251.003, 1251.004, 1251.005, and
78	87		1251.006 as Subchapter A and adding a subchapter heading to read as
79	88		follows:
80	89		SUBCHAPTER A. PROVISIONS RELATING GENERALLY TO COUNTY AND
81	90		MUNICIPAL BOND ELECTIONS
82	91		SECTION 4. Chapter 1251, Government Code, is amended by
83	92		adding Subchapter B to read as follows:
84	93		SUBCHAPTER B. BALLOT FOR DEBT OBLIGATIONS ISSUED BY POLITICAL
85	94		SUBDIVISION
86	95		Sec. 1251.051. DEFINITIONS. In this subchapter:
87	96		(1) "Debt obligation" means a public security, as
88	97		defined by Section 1201.002, secured by and payable from ad valorem
89	98		taxes. The term does not include public securities that are
90	99		designated as self-supporting by the political subdivision issuing
91	100		the securities.
92	101		(2) "Debt obligation election order" means the order,
93	102		ordinance, or resolution ordering an election to authorize the
94	103		issuance of debt obligations.
95	104		(3) "Political subdivision" means a municipality,
96	105		county, school district, or special taxing district.
97	106		Sec. 1251.052. FORM. (a) The ballot for a measure seeking
98	107		voter approval of the issuance of debt obligations by a political
99	108		subdivision shall specifically state:
100	109		(1) a general description of the purposes for which
101	110		the debt obligations are to be authorized;
102	111		(2) the total principal amount of the debt obligations
103		-	to be authorized; ~~and~~
	112	+	to be authorized;
104	113		(3) that taxes sufficient to pay the principal of and
105		-	interest on the debt obligations will be imposed.
	114	+	interest on the debt obligations will be imposed; and
	115	+	(4) the estimated maximum annual increase in the
	116	+	amount of taxes that would be imposed on a residence homestead in
	117	+	the political subdivision with an appraised value of $100,000 to
	118	+	repay the debt obligations to be authorized, if approved.
106	119		(b) A political subdivision with at least 250 registered
107	120		voters on the date the governing body of the political subdivision
108	121		adopts the debt obligation election order must prepare a voter
109	122		information document for each proposition to be voted on at the
110	123		election. The political subdivision shall post the voter
111	124		information document in the same manner as a debt obligation
112	125		election order is required to be posted under Section 4.003(f),
113	126		Election Code, and may include the voter information document in
114	127		the debt obligation election order. The voter information document
115	128		must distinctly state:
116	129		(1) the language that will appear on the ballot;
117	130		(2) the following information formatted as a table:
118	131		(A) the principal of the debt obligations to be
119	132		authorized;
120		-	(B) the estimated interest for
121		-	the debt
	133	+	(B) the estimated interest on the debt
122	134		obligations to be authorized;
123	135		(C) the estimated combined principal and
124	136		interest required to pay on time and in full the debt obligations to
125	137		be authorized; and
126	138		(D) as of the date the political subdivision
127	139		adopts the debt obligation election order:
128	140		(i) the principal of all outstanding debt
129	141		obligations of the political subdivision;
130	142		(ii) the estimated remaining interest on
131	143		all outstanding debt obligations of the political subdivision,
132	144		which may be based on the political subdivision's expectations
133	145		relative to the interest due on any variable rate debt obligations;
134	146		and
135	147		(iii) the estimated combined principal and
136	148		interest required to pay on time and in full all outstanding debt
137	149		obligations of the political subdivision, which may be based on the
138	150		political subdivision's expectations relative to the interest due
139	151		on any variable rate debt obligations;
140	152		(3) the estimated maximum annual increase in the
141	153		amount of taxes that would be imposed on a residence homestead in
142	154		the political subdivision with an appraised value of $100,000 to
143	155		repay the debt obligations to be authorized, if approved, based
144	156		upon assumptions made by the governing body of the political
145	157		subdivision; and
146	158		(4) any other information that the political
147	159		subdivision considers relevant or necessary to explain the
148	160		information required by this subsection.
149	161		(c) The governing body of the political subdivision shall
150	162		identify in the voter information document the major assumptions
151	163		made in connection with the statement required by Subsection
152	164		(b)(3), including:
153	165		(1) the amortization of the political subdivision's
154	166		debt obligations, including outstanding debt obligations and the
155	167		proposed debt obligations;
156	168		(2) changes in estimated future appraised values
157	169		within the political subdivision; and
158	170		(3) the assumed interest rate on the proposed debt
159	171		obligations.
160	172		(d) A political subdivision that maintains an Internet
161	173		website shall provide the information described by Subsection (b)
162	174		on its website in an easily accessible manner beginning not later
163	175		than the 21st day before election day and ending on the day after
164	176		the date of the debt obligation election.
165	177		(e) This section provides the ballot proposition language
166	178		for an election to authorize the issuance of debt obligations by a
167	179		political subdivision. To the extent of a conflict between this
168	180		section and another law, this section controls.
169	181		SECTION 5. Section 271.049, Local Government Code, is
170	182		amended by amending Subsections (a) and (b) and adding Subsection
171	183		(e) to read as follows:
172	184		(a) Regardless of the sources of payment of certificates,
173	185		certificates may not be issued unless the issuer publishes notice
174	186		of its intention to issue the certificates. The notice must be
175	187		published:
176	188		(1) once a week for two consecutive weeks in a
177	189		newspaper, as defined by Subchapter C, Chapter 2051, Government
178	190		Code, that is of general circulation in the area of the issuer, with
179	191		the date of the first publication to be before the 45th [30th] day
180	192		before the date tentatively set for the passage of the order or
181	193		ordinance authorizing the issuance of the certificates; and
182	194		(2) if the issuer maintains an Internet website,
183	195		continuously on the issuer's website for at least 45 days before the
184	196		date tentatively set for the passage of the order or ordinance
185	197		authorizing the issuance of the certificates.
186	198		(b) The notice must state:
187	199		(1) the time and place tentatively set for the passage
188	200		of the order or ordinance authorizing the issuance of the
189	201		certificates;
190	202		(2) the [maximum amount and] purpose of the
191	203		certificates to be authorized; [and]
192	204		(3) the manner in which the certificates will be paid
193	205		for, whether by taxes, revenues, or a combination of the two;
194	206		(4) the following:
195	207		(A) the then-current principal of all
196	208		outstanding debt obligations of the issuer;
197	209		(B) the then-current combined principal and
198	210		interest required to pay all outstanding debt obligations of the
199	211		issuer on time and in full, which may be based on the issuer's
200	212		expectations relative to the interest due on any variable rate debt
201	213		obligations;
202	214		(C) the maximum principal amount of the
203	215		certificates to be authorized; and
204	216		(D) the estimated combined principal and
205	217		interest required to pay the certificates to be authorized on time
206	218		and in full;
207	219		(5) the estimated interest rate for the certificates
208	220		to be authorized or that the maximum interest rate for the
209	221		certificates may not exceed the maximum legal interest rate; and
210	222		(6) the maximum maturity date of the certificates to
211	223		be authorized.
212	224		(e) In this section, "debt obligation" means a public
213	225		security, as defined by Section 1201.002, Government Code, secured
214	226		by and payable from ad valorem taxes. The term does not include
215	227		public securities that are designated as self-supporting by the
216	228		political subdivision issuing the securities.
217	229		SECTION 6. Section 1251.002, Government Code, is repealed.
218	230		SECTION 7. (a) The changes in law made by this Act to
219	231		Chapter 1251, Government Code, apply only to a ballot for an
220	232		election ordered on or after the effective date of this Act. An
221	233		election ordered before the effective date of this Act is governed
222	234		by the law in effect when the election was ordered, and the former
223	235		law is continued in effect for that purpose.
224	236		(b) The changes in law made by this Act to Section 271.049,
225	237		Local Government Code, apply only to a certificate of obligation
226	238		for which the first notice of intention to issue the certificate is
227	239		made on or after the effective date of this Act. A certificate of
228	240		obligation for which the first notice of intention to issue the
229	241		certificate is made before the effective date of this Act is
230	242		governed by the law in effect when the notice of intention is made,
231	243		and the former law is continued in effect for that purpose.
232	244		SECTION 8. This Act takes effect September 1, 2019.
233		-	______________________________ ______________________________
234		-	President of the Senate Speaker of the House
235		-	I certify that H.B. No. 477 was passed by the House on April
236		-	10, 2019, by the following vote: Yeas 146, Nays 0, 1 present, not
237		-	voting; and that the House concurred in Senate amendments to H.B.
238		-	No. 477 on May 22, 2019, by the following vote: Yeas 138, Nays 4, 2
239		-	present, not voting.
240		-	______________________________
241		-	Chief Clerk of the House
242		-	I certify that H.B. No. 477 was passed by the Senate, with
243		-	amendments, on May 15, 2019, by the following vote: Yeas 29, Nays
244		-	2.
245		-	______________________________
246		-	Secretary of the Senate
247		-	APPROVED: __________________
248		-	Date
249		-	__________________
250		-	Governor
	245	+	* * * * *