89R14076 DNC-D
By: Schatzline H.B. No. 4965
A BILL TO BE ENTITLED
AN ACT
relating to voter information provided by political subdivisions
before an election to authorize the issuance of bonds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 1251.052(a) and (b), Government Code,
as added by Chapter 728 (H.B. 477), Acts of the 86th Legislature,
Regular Session, 2019, are amended to read as follows:
(a) The ballot for a measure seeking voter approval of the
issuance of debt obligations by a political subdivision shall
specifically state:
(1) a general description of the purposes for which
the debt obligations are to be authorized;
(2) the total principal amount of the debt obligations
to be authorized; [and]
(3) that taxes sufficient to pay the principal of and
interest on the debt obligations will be imposed; and
(4) the ad valorem debt service tax rate expressed in
dollars per $100 valuation of all taxable property in the political
subdivision, stated as:
(A) the existing rate;
(B) the estimated rate if the bonds are issued;
and
(C) the estimated percentage increase in the rate
if the bonds are issued.
(b) A political subdivision [with at least 250 registered
voters on the date the governing body of the political subdivision
adopts the debt obligation election order] must prepare a voter
information document for each proposition to be voted on at the
election. The political subdivision shall post the voter
information document in the same manner as a debt obligation
election order is required to be posted under Section 4.003(f),
Election Code, and may include the voter information document in
the debt obligation election order. The voter information
document must distinctly state:
(1) the language that will appear on the ballot;
(2) the following information formatted as a table:
(A) the principal of the debt obligations to be
authorized;
(B) the estimated interest for the debt
obligations to be authorized;
(C) the estimated combined principal and
interest required to pay on time and in full the debt obligations to
be authorized; and
(D) as of the date the political subdivision
adopts the debt obligation election order:
(i) the principal of all outstanding debt
obligations of the political subdivision;
(ii) the estimated remaining interest on
all outstanding debt obligations of the political subdivision,
which may be based on the political subdivision's expectations
relative to the interest due on any variable rate debt obligations;
and
(iii) the estimated combined principal and
interest required to pay on time and in full all outstanding debt
obligations of the political subdivision, which may be based on the
political subdivision's expectations relative to the interest due
on any variable rate debt obligations;
(3) the estimated maximum annual increase in the
amount of taxes that would be imposed on a property [residence
homestead in the political subdivision with an appraised value of
$100,000] to repay the debt obligations to be authorized, if
approved, based upon assumptions made by the governing body of the
political subdivision; and
(4) any other information that the political
subdivision considers relevant or necessary to explain the
information required by this subsection.
SECTION 2. Sections 1251.052(a) and (b), Government Code,
as amended by this Act, apply only to a bond election ordered on or
after January 1, 2027.
SECTION 3. This Act takes effect September 1, 2025.