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Texas Senate Bill SB2219

Texas 2019 - 86th Regular

Texas Senate Bill SB2219 Compare Versions

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1-86R32905 ATP-D
21 By: Bettencourt, et al. S.B. No. 2219
3- (Murphy)
4- Substitute the following for S.B. No. 2219: No.
52
63
74 A BILL TO BE ENTITLED
85 AN ACT
9- relating to the notice required before the issuance of certain debt
10- obligations by political subdivisions.
6+ relating to ballot propositions authorizing political subdivisions
7+ to issue bonds or other debt or to impose or change a tax.
118 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12- SECTION 1. Section 3.009, Election Code, is amended to read
13- as follows:
14- Sec. 3.009. CONTENTS OF DEBT OBLIGATION ELECTION ORDER.
15- (a) In this section, "debt obligation" means an issued public
16- security, as defined by Section 1201.002, Government Code, that is
17- secured by and payable from ad valorem taxes. The term does not
18- include public securities that are designated as self-supporting by
19- the political subdivision issuing the securities.
20- (b) The document ordering an election to authorize a
21- political subdivision to issue debt obligations must distinctly
22- state:
23- (1) the proposition language that will appear on the
24- ballot;
25- (2) the purpose for which the debt obligations are to
26- be authorized;
27- (3) the principal amount of the debt obligations to be
28- authorized;
29- (4) that taxes sufficient to pay the [annual]
30- principal of and interest on the debt obligations may be imposed;
31- (5) a statement of the estimated tax rate if the debt
32- obligations are authorized or of the maximum interest rate of the
33- debt obligations or any series of the debt obligations, based on the
34- market conditions at the time of the election order;
35- (6) the maximum maturity date of the debt obligations
36- to be authorized or that the debt obligations may be issued to
37- mature over a specified number of years not to exceed the maximum
38- number of years authorized by law [40];
39- (7) the aggregate amount of the outstanding principal
40- of the political subdivision's debt obligations as of the date
41- [beginning of the political subdivision's fiscal year in which] the
42- election is ordered;
43- (8) the aggregate amount of the outstanding interest
44- on debt obligations of the political subdivision as of the date
45- [beginning of the political subdivision's fiscal year in which] the
46- election is ordered, which may be based on the political
47- subdivision's expectations relative to variable rate debt
48- obligations; and
49- (9) the ad valorem debt service tax rate for the
50- political subdivision at the time the election is ordered,
51- expressed as an amount per $100 valuation of taxable property.
9+ SECTION 1. Subchapter A, Chapter 41, Election Code, is
10+ amended by adding Section 41.0051 to read as follows:
11+ Sec. 41.0051. PROPOSITION FOR APPROVAL OF ISSUANCE OF BONDS
12+ OR OTHER DEBT. (a) A proposition for approval of the issuance of
13+ bonds or other debt shall be submitted to the voters in an election
14+ held on the November uniform election date, except as provided by
15+ Subsections (b) and (d).
16+ (b) Notwithstanding Section 41.0011(a), an emergency
17+ election under Section 41.0011 at which a proposition described by
18+ Subsection (a) is submitted to the voters shall be held on any
19+ uniform election date.
20+ (c) If a law outside this code requires a proposition
21+ described by Subsection (a) to be submitted to the voters in an
22+ election held on a date other than the November uniform election
23+ date, the authority administering the election shall set the
24+ election date to comply with this section.
25+ (d) This section does not apply to an election described by
26+ Section 49.102, Water Code, or an election held in conjunction with
27+ that election.
5228 SECTION 2. Section 52.072, Election Code, is amended by
5329 amending Subsection (e) and adding Subsection (f) to read as
5430 follows:
5531 (e) In addition to any other requirement imposed by law for
5632 a proposition, including a provision prescribing the proposition
57- language, a proposition submitted to the voters for approval of
58- [the issuance of bonds or] the imposition, increase, or reduction
59- of a tax shall specifically state, as applicable:
60- (1) [with respect to a proposition seeking voter
33+ language, a proposition in an election of a political subdivision,
34+ including a city, county, school district, or special taxing
35+ district, submitted to the voters for approval of [the issuance of
36+ bonds or] the imposition, increase, or reduction of a tax shall
37+ specifically state, as applicable:
38+ (1) with respect to a proposition seeking voter
6139 approval of the issuance of bonds:
62- [(A) the total principal amount of the bonds to
63- be authorized, if approved; and
64- [(B) a general description of the purposes for
65- which the bonds are to be authorized, if approved;
66- [(2)] with respect to a proposition that only seeks
67- voter approval of the imposition or increase of a tax, the amount of
68- or maximum tax rate of the tax or tax increase for which approval is
69- sought; or
70- (2) [(3)] with respect to a proposition that only
71- seeks voter approval of the reduction of a tax, the amount of tax
72- rate reduction or the tax rate for which approval is sought.
73- (f) A political subdivision that submits to the voters a
74- proposition for the approval of the issuance of debt obligations
75- shall prescribe the wording of the proposition that is to appear on
76- the ballot in accordance with the requirements of Subchapter B,
77- Chapter 1251, Government Code. In this subsection, "debt
78- obligation" and "political subdivision" have the meanings assigned
79- by Section 1251.051, Government Code.
40+ (A) the total principal amount of the bonds to be
41+ authorized, if approved; and
42+ (B) a plain language [general] description of the
43+ single specific purpose [the purposes] for which the bonds are to be
44+ authorized, if approved;
45+ (2) with respect to a proposition that only seeks
46+ voter approval of the imposition or increase of a tax:
47+ (A) [,] the amount of or maximum tax rate of the
48+ tax or tax increase for which approval is sought;
49+ (B) the estimated additional tax burden that
50+ would be imposed on a homestead with a value equal to the median
51+ homestead value in the political subdivision, as computed by the
52+ appraisal district, after the imposition or increase of the tax, if
53+ approved; and
54+ (C) a detailed description of the purposes for
55+ which the tax is to be imposed or increased, if approved; or
56+ (3) with respect to a proposition that only seeks
57+ voter approval of the reduction of a tax:
58+ (A) [,] the amount of tax rate reduction or the
59+ tax rate for which approval is sought; and
60+ (B) the estimated tax reduction for a homestead
61+ with a value equal to the median homestead value in the political
62+ subdivision, as computed by the appraisal district, if the
63+ reduction of the tax is approved.
64+ (f) A proposition to which Subsection (e) applies or for
65+ approval of the issuance of bonds may not exceed:
66+ (1) 5,000 characters; or
67+ (2) a different limit prescribed by the secretary of
68+ state that ensures that the length of the proposition does not
69+ exceed one page of the ballot or one screen on an electronic voting
70+ machine.
8071 SECTION 3. Chapter 1251, Government Code, is amended by
81- designating Sections 1251.001, 1251.003, 1251.004, 1251.005, and
82- 1251.006 as Subchapter A and adding a subchapter heading to read as
83- follows:
84- SUBCHAPTER A. PROVISIONS RELATING GENERALLY TO COUNTY AND
85- MUNICIPAL BOND ELECTIONS
72+ designating Sections 1251.001, 1251.002, 1251.003, 1251.004,
73+ 1251.005, and 1251.006 as Subchapter A and adding a subchapter
74+ heading to read as follows:
75+ SUBCHAPTER A. PROVISIONS RELATING GENERALLY TO BOND ELECTIONS
8676 SECTION 4. Chapter 1251, Government Code, is amended by
8777 adding Subchapter B to read as follows:
88- SUBCHAPTER B. BALLOT FOR DEBT OBLIGATIONS ISSUED BY POLITICAL
78+ SUBCHAPTER B. BALLOT PROPOSITION FOR BONDS ISSUED BY POLITICAL
8979 SUBDIVISION
90- Sec. 1251.051. DEFINITIONS. In this subchapter:
91- (1) "Debt obligation" means a public security, as
92- defined by Section 1201.002, secured by and payable from ad valorem
93- taxes. The term does not include public securities that are
94- designated as self-supporting by the political subdivision issuing
95- the securities.
96- (2) "Debt obligation election order" means the order,
97- ordinance, or resolution ordering an election to authorize the
98- issuance of debt obligations.
99- (3) "Political subdivision" means a municipality,
100- county, school district, or special taxing district.
101- Sec. 1251.052. FORM. (a) The ballot for a measure seeking
102- voter approval of the issuance of debt obligations by a political
103- subdivision shall specifically state:
104- (1) a general description of the purposes for which
105- the debt obligations are to be authorized;
106- (2) the total principal amount of the debt obligations
107- to be authorized; and
108- (3) that taxes sufficient to pay the principal of and
109- interest on the debt obligations will be imposed.
110- (b) A political subdivision with at least 250 registered
111- voters on the date the governing body of the political subdivision
112- adopts the debt obligation election order must prepare a voter
113- information document for each proposition to be voted on at the
114- election. The political subdivision shall post the voter
115- information document in the same manner as a debt obligation
116- election order is required to be posted under Section 4.003(f),
117- Election Code, and may include the voter information document in
118- the debt obligation election order. The voter information document
119- must distinctly state:
120- (1) the language that will appear on the ballot;
121- (2) the following information formatted as a table:
122- (A) the principal of the debt obligations to be
123- authorized;
124- (B) the estimated interest for the debt
125- obligations to be authorized;
126- (C) the estimated combined principal and
127- interest required to pay on time and in full the debt obligations to
128- be authorized; and
129- (D) as of the date the political subdivision
130- adopts the debt obligation election order:
131- (i) the principal of all outstanding debt
132- obligations of the political subdivision;
133- (ii) the estimated remaining interest on
134- all outstanding debt obligations of the political subdivision,
135- which may be based on the political subdivision's expectations
136- relative to the interest due on any variable rate debt obligations;
137- and
138- (iii) the estimated combined principal and
139- interest required to pay on time and in full all outstanding debt
140- obligations of the political subdivision, which may be based on the
141- political subdivision's expectations relative to the interest due
142- on any variable rate debt obligations;
143- (3) the estimated maximum annual increase in the
144- amount of taxes that would be imposed on a residence homestead in
145- the political subdivision with an appraised value of $100,000 to
146- repay the debt obligations to be authorized, if approved, based
147- upon assumptions made by the governing body of the political
148- subdivision; and
149- (4) any other information that the political
150- subdivision considers relevant or necessary to explain the
151- information required by this subsection.
152- (c) The governing body of the political subdivision shall
153- identify in the voter information document the major assumptions
154- made in connection with the statement required by Subsection
155- (b)(3), including:
156- (1) the amortization of the political subdivision's
157- debt obligations, including outstanding debt obligations and the
158- proposed debt obligations;
159- (2) changes in estimated future appraised values
160- within the political subdivision; and
161- (3) the assumed interest rate on the proposed debt
162- obligations.
163- (d) A political subdivision that maintains an Internet
164- website shall provide the information described by Subsection (b)
165- on its website in an easily accessible manner beginning not later
166- than the 21st day before election day and ending on the day after
167- the date of the debt obligation election.
168- (e) This section provides the ballot proposition language
169- for an election to authorize the issuance of debt obligations by a
170- political subdivision. To the extent of a conflict between this
171- section and another law, this section controls.
172- SECTION 5. Section 271.049, Local Government Code, is
173- amended by amending Subsections (a) and (b) and adding Subsection
174- (e) to read as follows:
175- (a) Regardless of the sources of payment of certificates,
176- certificates may not be issued unless the issuer publishes notice
177- of its intention to issue the certificates. The notice must be
178- published:
179- (1) once a week for two consecutive weeks in a
180- newspaper, as described [defined] by Subchapter C, Chapter 2051,
181- Government Code, that is of general circulation in the area of the
182- issuer, with the date of the first publication to be before the 45th
183- [30th] day before the date tentatively set for the passage of the
184- order or ordinance authorizing the issuance of the certificates;
185- and
186- (2) if the issuer maintains an Internet website,
187- continuously on the issuer's website for at least 45 days before the
188- date tentatively set for the passage of the order or ordinance
189- authorizing the issuance of the certificates.
190- (b) The notice must state:
191- (1) the time and place tentatively set for the passage
192- of the order or ordinance authorizing the issuance of the
193- certificates;
194- (2) the [maximum amount and] purpose of the
195- certificates to be authorized; [and]
196- (3) the manner in which the certificates will be paid
197- for, whether by taxes, revenues, or a combination of the two;
198- (4) the following:
199- (A) the then-current principal of all
200- outstanding debt obligations of the issuer;
201- (B) the then-current combined principal and
202- interest required to pay all outstanding debt obligations of the
203- issuer on time and in full, which may be based on the issuer's
204- expectations relative to the interest due on any variable rate debt
205- obligations;
206- (C) the maximum principal amount of the
207- certificates to be authorized; and
208- (D) the estimated combined principal and
209- interest required to pay the certificates to be authorized on time
210- and in full;
211- (5) the estimated interest rate for the certificates
212- to be authorized or that the maximum interest rate for the
213- certificates may not exceed the maximum legal interest rate; and
214- (6) the maximum maturity date of the certificates to
215- be authorized.
216- (e) In this section, "debt obligation" means a public
217- security, as defined by Section 1201.002, Government Code, secured
218- by and payable from ad valorem taxes. The term does not include
219- public securities that are designated as self-supporting by the
220- political subdivision issuing the securities.
221- SECTION 6. Section 1251.002, Government Code, is repealed.
222- SECTION 7. (a) The changes in law made by this Act to
223- Chapter 1251, Government Code, apply only to a ballot for an
224- election ordered on or after the effective date of this Act. An
80+ Sec. 1251.051. APPLICABILITY. This subchapter applies to
81+ bonds issued by any political subdivision, including a
82+ municipality, county, school district, or special taxing district.
83+ Sec. 1251.052. FORM. (a) A proposition seeking voter
84+ approval of the issuance of bonds shall specifically state:
85+ (1) a plain language description of each single
86+ specific purpose for which the bonds are to be authorized;
87+ (2) the total principal amount of the bonds;
88+ (3) the total amount of the political subdivision's
89+ debt secured by ad valorem taxes currently outstanding;
90+ (4) the total amount of the political subdivision's
91+ current payments on debt secured by ad valorem taxes;
92+ (5) the amount of taxes required to be imposed on a
93+ homestead with a value equal to the median homestead value in the
94+ political subdivision, as computed by the appraisal district, to
95+ repay the political subdivision's current debt obligations secured
96+ by ad valorem taxes; and
97+ (6) the estimated tax burden that would be imposed on a
98+ homestead with a value equal to the median homestead value in the
99+ political subdivision, as computed by the appraisal district, to
100+ repay the bonds to be authorized, if approved.
101+ (b) Each single specific purpose for which bonds requiring
102+ voter approval are to be issued must be printed on the ballot as a
103+ separate proposition.
104+ SECTION 5. Section 45.003, Education Code, is amended by
105+ adding Subsections (g) and (h) to read as follows:
106+ (g) Notwithstanding Section 52.072, Election Code, and
107+ Section 1251.052, Government Code, the question of whether to
108+ approve the issuance of bonds for the construction, acquisition,
109+ and equipment of school buildings in the district and the purchase
110+ of necessary sites for school buildings may be submitted to the
111+ voters in a single ballot proposition, except that bonds for each of
112+ the following purposes must be stated in a separate proposition:
113+ (1) the construction, improvement, or renovation of a
114+ stadium;
115+ (2) the construction, improvement, or renovation of a
116+ natatorium;
117+ (3) the construction, improvement, or renovation of
118+ another recreational facility other than a gymnasium;
119+ (4) the construction, improvement, or renovation of a
120+ performing arts facility;
121+ (5) the construction, improvement, or renovation of
122+ housing for teachers as determined by the district to be necessary
123+ to have a sufficient number of teachers for the district; and
124+ (6) an acquisition or update of technology equipment,
125+ other than equipment used for school security purposes.
126+ (h) The question of whether to approve the issuance of bonds
127+ for a building described by Subsection (g)(1), (2), (3), (4), or (5)
128+ must be printed on the ballot as a separate ballot proposition
129+ regardless of whether that building is proposed as part of the same
130+ complex or building that contains traditional classroom
131+ facilities. Each separate ballot proposition required by this
132+ subsection must state the principal amount of the bonds to be issued
133+ that constitutes the cost for construction of that portion of the
134+ building or complex attributable to the building described by
135+ Subsection (g)(1), (2), (3), (4), or (5) or to the traditional
136+ classroom facilities, as applicable.
137+ SECTION 6. The changes in law made by this Act apply only to
138+ an election ordered on or after the effective date of this Act. An
225139 election ordered before the effective date of this Act is governed
226140 by the law in effect when the election was ordered, and the former
227141 law is continued in effect for that purpose.
228- (b) The changes in law made by this Act to Section 271.049,
229- Local Government Code, apply only to a certificate of obligation
230- for which the first notice of intention to issue the certificate is
231- made on or after the effective date of this Act. A certificate of
232- obligation for which the first notice of intention to issue the
233- certificate is made before the effective date of this Act is
234- governed by the law in effect when the notice of intention is made,
235- and the former law is continued in effect for that purpose.
236- SECTION 8. This Act takes effect September 1, 2019.
142+ SECTION 7. This Act takes effect September 1, 2019.