By: Heflin H.B. No. 2717
73R2113 RWS-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the amount of debt a municipality, county, or school
1-3 district may incur.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subtitle C, Title 4, Local Government Code, is
1-6 amended by adding Chapter 133 to read as follows:
1-7 CHAPTER 133. LIMITATION OF DEBT INCURRED
1-8 BY MUNICIPALITY, COUNTY, OR SCHOOL DISTRICT
1-9 Sec. 133.001. DEFINITIONS. In this chapter, "debt" means an
1-10 obligation to pay money that is created by a bond, certificate of
1-11 obligation, or other evidence of indebtedness and that is:
1-12 (1) owed by a municipality, county, or school
1-13 district;
1-14 (2) payable in installments over a period of more than
1-15 one year;
1-16 (3) secured by a pledge of tax revenues; and
1-17 (4) not budgeted for payment from maintenance or
1-18 operations funds.
1-19 Sec. 133.002. DEBT LIMIT. (a) A debt limit is the maximum
1-20 amount of debt that a municipality, county, or school district may
1-21 incur.
1-22 (b) A proposed debt limit shall be stated as a percentage of
1-23 the total assessed valuation of taxable property within the
1-24 municipality, county, or school district and may not exceed any
2-1 limit or restriction imposed by the constitution or another
2-2 statute.
2-3 Sec. 133.003. EFFECT OF DEBT LIMIT. (a) The governing body
2-4 of the municipality, county, or school district may not incur any
2-5 debt in violation of an ordinance, order, or rule establishing a
2-6 debt limit under this chapter. A debt in violation of the
2-7 ordinance, order, or rule is voidable.
2-8 (b) An ordinance, order, or rule establishing a debt limit
2-9 may not impair or otherwise affect any debt incurred before the
2-10 effective date of the ordinance, order, or rule.
2-11 Sec. 133.004. INITIAL DEBT LIMIT. The governing body of a
2-12 municipality, county, or school district shall propose an
2-13 ordinance, order, or rule establishing the initial debt limit for
2-14 the municipality, county, or school district.
2-15 Sec. 133.005. AMENDMENT OF DEBT LIMIT. A debt limit
2-16 approved by the voters of a municipality, county, or school
2-17 district under this chapter may not be changed except as follows:
2-18 (1) the governing body may propose an ordinance,
2-19 order, or rule amending an existing debt limit; or
2-20 (2) the voters of the municipality, county, or school
2-21 district may submit to the governing body a petition to call an
2-22 election proposing an ordinance, order, or rule amending an
2-23 existing debt limit.
2-24 Sec. 133.006. PETITION REQUIREMENTS. (a) A petition
2-25 submitted under Section 133.005 must:
2-26 (1) state that it is intended to require an election
2-27 proposing an ordinance, order, or rule amending an existing debt
3-1 limit;
3-2 (2) propose an ordinance, order, or rule amending an
3-3 existing debt limit in accordance with this chapter;
3-4 (3) be signed during the 90 days preceding the date
3-5 the petition is submitted to the governing body by a number of
3-6 registered voters in the municipality, county, or school district
3-7 equal to at least 10 percent of the number of votes cast for
3-8 governor in the municipality, county, or school district in the
3-9 most recent general election in which that office was filled; and
3-10 (4) contain the date of signing, current voter
3-11 registration number, printed name, and residence address, including
3-12 zip code, for each of the voters who have signed the petition.
3-13 (b) On or before the 30th day after the date a petition is
3-14 received by the governing body, the governing body shall determine
3-15 whether the petition meets the requirements imposed by this chapter
3-16 and certify the petition as valid or invalid. If the petition is
3-17 found to be invalid, the governing body shall state in writing the
3-18 reasons for that determination. If the governing body fails to act
3-19 within the time allowed, the petition is considered certified as
3-20 valid. If the petition is certified as valid, the governing body
3-21 shall call an election to be held on the proposed ordinance, order,
3-22 or rule according to this chapter.
3-23 Sec. 133.007. ELECTION ON PROPOSED DEBT LIMIT. (a) The
3-24 governing body shall submit to the voters of the municipality,
3-25 county, or school district an ordinance, order, or rule proposed
3-26 under this chapter. The election must be held on the first uniform
3-27 election date that occurs on or after the 45th day after the date
4-1 the governing body proposes the ordinance, order, or rule or
4-2 certifies a petition proposing the ordinance, order, or rule.
4-3 (b) The governing body shall publish notice of the election
4-4 and the proposed ordinance, order, or rule once a week for three
4-5 consecutive weeks before the election in a newspaper of general
4-6 circulation in the municipality, county, or school district.
4-7 (c) The governing body shall order ballots to be printed
4-8 that reflect the provisions of a proposed debt limit and provide
4-9 for voting for or against the proposed ordinance, order, or rule.
4-10 (d) The governing body shall canvass the returns of the
4-11 election at the earliest practicable date after the election.
4-12 (e) If a majority of the votes cast at the election approve
4-13 the proposed ordinance, order, or rule, the debt limit in the
4-14 ordinance, order, or rule is effective at midnight on the date the
4-15 official canvass of the election returns is announced.
4-16 (f) If a majority of the votes cast at the election do not
4-17 approve the proposed ordinance, order, or rule, the debt limit
4-18 previously approved by the voters under this chapter remains in
4-19 effect. If a debt limit has not been approved previously, the
4-20 governing body shall propose within 90 days after the date of the
4-21 election a new ordinance, order, or rule establishing a debt limit
4-22 and shall submit the proposed ordinance, order, or rule to the
4-23 voters in an election to be held according to this chapter.
4-24 SECTION 2. This Act takes effect January 1, 1994.
4-25 SECTION 3. The importance of this legislation and the
4-26 crowded condition of the calendars in both houses create an
4-27 emergency and an imperative public necessity that the
5-1 constitutional rule requiring bills to be read on three several
5-2 days in each house be suspended, and this rule is hereby suspended.