Texas 2025 - 89th Regular

Texas Senate Bill SB1389 Compare Versions

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Old	New	Differences
1	1	89R13377 MPF-D
2	2	By: Hall S.B. No. 1389
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the text of ballot propositions for bond elections.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subchapter B, Chapter 1251, Government Code, as
12	12	added by Chapters 728 (H.B. 477) and 505 (S.B. 30), Acts of the 86th
13	13	Legislature, Regular Session, 2019, is reenacted and amended to
14	14	read as follows:
15	15	SUBCHAPTER B. BALLOT FOR DEBT OBLIGATIONS ISSUED BY POLITICAL
16	16	SUBDIVISION
17	17	Sec. 1251.051. DEFINITIONS. In this subchapter:
18	18	(1) "Debt obligation" means a public security, as
19	19	defined by Section 1201.002, secured by and payable from ad valorem
20	20	taxes. The term does not include public securities that are
21	21	designated as self-supporting by the political subdivision issuing
22	22	the securities.
23	23	(2) "Debt obligation election order" means the order,
24	24	ordinance, or resolution ordering an election to authorize the
25	25	issuance of debt obligations.
26	26	(3) "Political subdivision" means a municipality,
27	27	county, school district, or special taxing district.
28	28	Sec. 1251.052. FORM. (a) The ballot for a measure seeking
29	29	voter approval of the issuance of debt obligations by a political
30	30	subdivision shall specifically [state]:
31	31	(1) state a general description of the single specific
32	32	project [purposes] for which the debt obligations are to be
33	33	authorized;
34	34	(2) list and clearly describe each structure or
35	35	improvement included in the specific project for which the debt
36	36	obligations are to be authorized;
37	37	(3) state the total estimated cost of each structure
38	38	or improvement described by Subdivision (2);
39	39	(4) state the total principal amount of the debt
40	40	obligations to be authorized;
41	41	(5) include the statement "THIS IS A TAX INCREASE";
42	42	and
43	43	(6) state [(3)] that taxes sufficient to pay the
44	44	principal of and interest on the debt obligations will be imposed.
45	45	(a-1) Each single specific project [purpose] for which debt
46	46	obligations requiring voter approval are to be issued must be
47	47	printed on the ballot as a separate proposition. A proposition may
48	48	include as a specific project [purpose] one or more structures or
49	49	improvements at the same location [serving the substantially same
50	50	purpose] and may include [related improvements and] equipment
51	51	necessary to accomplish the specific project [purpose].
52	52	(b) A political subdivision with at least 250 registered
53	53	voters on the date the governing body of the political subdivision
54	54	adopts the debt obligation election order must prepare a voter
55	55	information document for each proposition to be voted on at the
56	56	election. The political subdivision shall post the voter
57	57	information document in the same manner as a debt obligation
58	58	election order is required to be posted under Section 4.003(f),
59	59	Election Code, and may include the voter information document in
60	60	the debt obligation election order. The voter information document
61	61	must distinctly state:
62	62	(1) the language that will appear on the ballot;
63	63	(2) the following information formatted as a table:
64	64	(A) the principal of the debt obligations to be
65	65	authorized;
66	66	(B) the estimated interest for the debt
67	67	obligations to be authorized;
68	68	(C) the estimated combined principal and
69	69	interest required to pay on time and in full the debt obligations to
70	70	be authorized; and
71	71	(D) as of the date the political subdivision
72	72	adopts the debt obligation election order:
73	73	(i) the principal of all outstanding debt
74	74	obligations of the political subdivision;
75	75	(ii) the estimated remaining interest on
76	76	all outstanding debt obligations of the political subdivision,
77	77	which may be based on the political subdivision's expectations
78	78	relative to the interest due on any variable rate debt obligations;
79	79	and
80	80	(iii) the estimated combined principal and
81	81	interest required to pay on time and in full all outstanding debt
82	82	obligations of the political subdivision, which may be based on the
83	83	political subdivision's expectations relative to the interest due
84	84	on any variable rate debt obligations;
85	85	(3) the estimated maximum annual increase in the
86	86	amount of taxes that would be imposed on a residence homestead in
87	87	the political subdivision with an appraised value of $100,000 to
88	88	repay the debt obligations to be authorized, if approved, based
89	89	upon assumptions made by the governing body of the political
90	90	subdivision; and
91	91	(4) any other information that the political
92	92	subdivision considers relevant or necessary to explain the
93	93	information required by this subsection.
94	94	(c) The governing body of the political subdivision shall
95	95	identify in the voter information document the major assumptions
96	96	made in connection with the statement required by Subsection
97	97	(b)(3), including:
98	98	(1) the amortization of the political subdivision's
99	99	debt obligations, including outstanding debt obligations and the
100	100	proposed debt obligations;
101	101	(2) changes in estimated future appraised values
102	102	within the political subdivision; and
103	103	(3) the assumed interest rate on the proposed debt
104	104	obligations.
105	105	(d) A political subdivision that maintains an Internet
106	106	website shall provide the information described by Subsection (b)
107	107	on its website in an easily accessible manner beginning not later
108	108	than the 21st day before election day and ending on the day after
109	109	the date of the debt obligation election.
110	110	(e) This section provides the ballot proposition language
111	111	for an election to authorize the issuance of debt obligations by a
112	112	political subdivision. To the extent of a conflict between this
113	113	section and another law, this section controls.
114	114	SECTION 2. The changes in law made by this Act apply only to
115	115	an election ordered on or after the effective date of this Act.
116	116	SECTION 3. This Act takes effect immediately if it receives
117	117	a vote of two-thirds of all the members elected to each house, as
118	118	provided by Section 39, Article III, Texas Constitution. If this
119	119	Act does not receive the vote necessary for immediate effect, this
120	120	Act takes effect September 1, 2025.