By: Capriglione, Bumgarner, Wilson H.B. No. 3526
A BILL TO BE ENTITLED
AN ACT
relating to fiscal transparency for bonds issued by local
governmental entities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1202.008(c), Government Code, is amended
to read as follows:
(c) The attorney general shall send the information to the
Bond Review Board for inclusion in the reports required by Sections
[board's report of debt statistics under Section] 1231.062 and
1231.065.
SECTION 2. Subchapter B, Chapter 1231, Government Code, is
amended by adding Sections 1231.024, 1231.025, and 1231.026 to read
as follows:
Sec. 1231.024. SEARCHABLE DATABASE FOR LOCAL BOND
OBLIGATIONS. (a) The board shall develop and maintain on the
board's Internet website a publicly accessible and searchable
database that provides, in a table format that is easy to read and
understand, information on each bond proposed or issued by a local
government.
(b) The database must include for each proposed and issued
bond listed in the database:
(1) the amount of the principal of the bond;
(2) the estimated amount of interest on the bond;
(3) the estimated total amount to pay the principal of
and interest on the bond; and
(4) the estimated minimum dollar amount required to be
annually expended for debt service.
Sec. 1231.025. LOCAL BOND ELECTION INFORMATION. (a) Not
later than the 20th day before election day for an election to
authorize a local government to issue bonds, the local government
shall submit a report to the board that includes:
(1) the date of the election;
(2) the proposition number for each bond proposition;
(3) the total estimated cost of the issuance of each
proposed bond;
(4) the estimated minimum dollar amount required to be
annually expended for debt service;
(5) a description of the purpose of each bond
proposition; and
(6) any other information the board determines
necessary.
(b) Not later than the 20th day after election day for an
election to authorize a local government to issue bonds, the local
government shall submit a report to the board that includes:
(1) the total number of votes cast for each bond
proposition;
(2) the total number of votes in support of the bond
proposition;
(3) the total number of votes against the bond
proposition;
(4) any updated information different from the
information provided to the board under Subsection (a), if
applicable; and
(5) any other information the board determines
necessary.
(c) The board shall publish a report on the results of an
election to authorize a local government to issue bonds on the
board's Internet website.
Sec. 1231.026. ANNUAL LOCAL UNISSUED SECURITIES REPORT.
(a) Not later than September 30 of each year, a local government
with voter-approved but unissued bonds shall submit a report to the
board regarding the amount of voter-approved but unissued bonds
authorized by the local government during the most recent fiscal
year. The report must include:
(1) the total amount of voter-approved but unissued
bonds authorized by the local government;
(2) the specific statute or law authorizing the
issuance of the bonds;
(3) the number of the propositions that authorized the
issuance of the bonds, as applicable;
(4) the estimated cost of the issuance of the bonds on
the bond proposition, as applicable;
(5) the estimated minimum dollar amount required to be
annually expended for debt service after the issuance of the bonds;
and
(6) any other information the board determines
necessary.
(b) The board may adopt rules to implement this section.
SECTION 3. Subchapter D, Chapter 1231, Government Code, is
amended by adding Section 1231.065 to read as follows:
Sec. 1231.065. BIENNIAL REPORT ON REPAYMENT OF BONDS ISSUED
BY LOCAL GOVERNMENTS. (a) Not later than December 31 of each
even-numbered year, the board shall prepare and submit to each
standing committee of the legislature with primary jurisdiction
over matters relating to finance a report on the repayment status of
each voter-approved bond issued by a local government.
(b) The report required by Subsection (a) must include:
(1) for each voter-approved bond issued by a local
government:
(A) the estimated total amount required to pay
the principal of and interest on the bond on the date the bond was
issued;
(B) the total amount of principal and interest
paid by the local government on the bond; and
(C) the minimum dollar amount required to be
expended for debt service for each year of the biennium covered by
the report; and
(2) if a local government requires an increase in the
local government's tax rate in order to pay the principal of and
interest on bonds issued by the local government, the amount of the
required increase.
(c) The board may adopt any rules necessary to implement
this section.
SECTION 4. As soon as practicable but not later than
September 1, 2026, the Bond Review Board shall establish the
database as required by Section 1231.024, Government Code, as added
by this Act.
SECTION 5. This Act takes effect September 1, 2025.