By Heflin H.B. No. 1947
74R1661 PAM-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the amount of debt a local government may incur.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subtitle C, Title 4, Local Government Code, is
1-5 amended by adding Chapter 133 to read as follows:
1-6 CHAPTER 133. LIMITATION OF DEBT INCURRED
1-7 BY LOCAL GOVERNMENT
1-8 Sec. 133.001. DEFINITIONS. In this chapter:
1-9 (1) "Debt" means an obligation to pay money that is
1-10 created by a bond, certificate of obligation, or other evidence of
1-11 indebtedness and that is:
1-12 (A) owed by a local government;
1-13 (B) payable in installments over a period of
1-14 more than one year;
1-15 (C) secured by a pledge of tax revenues; and
1-16 (D) not budgeted for payment from maintenance or
1-17 operations funds.
1-18 (2) "Local government" means a municipality, county,
1-19 school district, special purpose district or authority, or other
1-20 political subdivision of this state.
1-21 (3) "Regulation" means an ordinance, order, rule, or
1-22 other similar governmental act.
1-23 Sec. 133.002. DEBT LIMIT. (a) A debt limit is the maximum
1-24 amount of debt that a local government may incur.
2-1 (b) A proposed debt limit shall be stated as a percentage of
2-2 the total assessed valuation of taxable property within the
2-3 jurisdiction of the local government and may not exceed any limit
2-4 or restriction imposed by the constitution or another statute.
2-5 Sec. 133.003. EFFECT OF DEBT LIMIT. (a) The governing body
2-6 of a local government may not incur any debt in violation of a
2-7 regulation establishing a debt limit under this chapter. A debt in
2-8 violation of the regulation is voidable.
2-9 (b) A regulation establishing a debt limit may not impair or
2-10 otherwise affect any debt incurred before the effective date of the
2-11 regulation.
2-12 Sec. 133.004. INITIAL DEBT LIMIT. The governing body of a
2-13 local government shall propose a regulation establishing the
2-14 initial debt limit for the local government.
2-15 Sec. 133.005. AMENDMENT OF DEBT LIMIT. A debt limit
2-16 approved by the voters of the local government under this chapter
2-17 may not be changed except as follows:
2-18 (1) the governing body may propose a regulation
2-19 amending an existing debt limit; or
2-20 (2) the voters of the local government may submit to
2-21 the governing body a petition to call an election proposing a
2-22 regulation amending an existing debt limit.
2-23 Sec. 133.006. PETITION REQUIREMENTS. (a) A petition
2-24 submitted under Section 133.005 must:
2-25 (1) state that it is intended to require an election
2-26 proposing a regulation amending an existing debt limit;
2-27 (2) propose a regulation amending an existing debt
3-1 limit in accordance with this chapter;
3-2 (3) be signed by a number of registered voters of the
3-3 local government that is equal to at least 10 percent of the number
3-4 of votes cast for governor in the local government in the most
3-5 recent general election in which that office was filled; and
3-6 (4) comply with the requirements of Chapter 277,
3-7 Election Code.
3-8 (b) On or before the 30th day after the date a petition is
3-9 received by the governing body, the governing body shall determine
3-10 whether the petition meets the requirements imposed by this chapter
3-11 and certify the petition as valid or invalid. If the petition is
3-12 found to be invalid, the governing body shall state in writing the
3-13 reasons for that determination. If the governing body fails to act
3-14 within the time allowed, the petition is considered certified as
3-15 valid. If the petition is certified as valid, the governing body
3-16 shall call an election to be held on the proposed regulation
3-17 according to this chapter.
3-18 Sec. 133.007. ELECTION ON PROPOSED DEBT LIMIT. (a) The
3-19 governing body shall submit to the voters of the local government a
3-20 regulation proposed under this chapter. The election must be held
3-21 on the first uniform election date that occurs on or after the 45th
3-22 day after the date the governing body proposes the regulation or
3-23 certifies a petition proposing the regulation.
3-24 (b) The governing body shall publish notice of the election
3-25 and the proposed regulation once a week for three consecutive weeks
3-26 before the election in a newspaper of general circulation in the
3-27 local government.
4-1 (c) The governing body shall order ballots to be printed
4-2 that reflect the provisions of a proposed debt limit and provide
4-3 for voting for or against the proposed regulation.
4-4 (d) The governing body shall canvass the returns of the
4-5 election at the earliest practicable date after the election.
4-6 (e) If a majority of the votes cast at the election approve
4-7 the proposed regulation, the debt limit in the regulation is
4-8 effective at midnight on the date the official canvass of the
4-9 election returns is announced.
4-10 (f) If a majority of the votes cast at the election do not
4-11 approve the proposed regulation, the debt limit previously approved
4-12 by the voters under this chapter remains in effect. If a debt
4-13 limit has not been approved previously, the governing body shall
4-14 propose within 90 days after the date of the election a new
4-15 regulation establishing a debt limit and shall submit the proposed
4-16 regulation to the voters in an election to be held according to
4-17 this chapter.
4-18 SECTION 2. This Act takes effect January 1, 1996.
4-19 SECTION 3. The importance of this legislation and the
4-20 crowded condition of the calendars in both houses create an
4-21 emergency and an imperative public necessity that the
4-22 constitutional rule requiring bills to be read on three several
4-23 days in each house be suspended, and this rule is hereby suspended.