79R4706 ATP-D

By:  Howard                                                       H.B. No. 1265



A BILL TO BE ENTITLED

AN ACT

relating to restrictions on the issuance of public securities.                
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 1201, Government Code, is amended by 
adding Subchapter E to read as follows:
	SUBCHAPTER E.  ADDITIONAL RESTRICTIONS ON

ISSUANCE OF PUBLIC SECURITIES
	Sec. 1201.101.  INFORMATION REGARDING PUBLIC SECURITY 
APPROVED AT ELECTION.  (a)  This section applies to the issuance of 
a public security for which approval at an election is required.
	(b)  In addition to complying with any other requirements of 
law, the proposition submitted in the election to approve the 
issuance of a public security must state:
		(1)  within a five percent margin of error:                            
			(A)  the total bonded indebtedness of the issuer, 
under the heading "Outstanding Bond Debt";
			(B)  the amount of ad valorem taxes to be imposed 
annually as a result of the issuance on a residence of the median 
taxable value in the issuer's boundaries, under the heading 
"Average Annual Tax Amount Per Household," if the public security 
is payable from ad valorem taxes; and
			(C)  the total estimated cost, including 
interest, to redeem the public security, under the heading "Total 
Pay-Off Amount," if the public security is payable from ad valorem 
taxes;
		(2)  the tax rate to be imposed, based on the current 
value of taxable property in the issuer's boundaries, to pay the 
annual interest on the public security and to provide a sinking fund 
to redeem the public security at maturity, under the heading 
"Interest and Sinking Fund Tax Rate," if the public security is 
payable from ad valorem taxes; and
		(3)  the date by which the public securities to be 
issued as authorized by this election are to be redeemed, under the 
heading "Pay-Off Date."
	(c)  Any informative literature distributed by or at the 
request of the issuer shall prominently display, on the front page 
and in a font that is at least two points larger than the font used 
for any other text in the literature:
		(1)  the information stated in the proposition under 
Subsection (b); and
		(2)  the total indebtedness secured by public 
securities of all issuers located wholly or partly in the territory 
in which the issuer is located.
	(d)  An issuer shall make any documentation supporting the 
information provided under Subsection (b) available to a person who 
submits a written request for access to the documentation.
	Sec. 1201.102.  LIFE EXPECTANCY OF PROGRAM, PROJECT, OR 
FACILITY FUNDED BY PUBLIC SECURITY.  (a)  Notwithstanding any other 
law relating to the maturity of public securities, a public 
security may not mature later than the expiration of any expected 
duration, usefulness, or lifespan of the program, project, 
facility, or other purpose for which the public security is issued.
	(b)  A public security may not be refinanced to provide that 
the public security matures after the time authorized by Subsection 
(a).
	Sec. 1201.103.  POSTING AND PUBLIC AVAILABILITY; HEARING.  
Before issuing a public security or submitting a proposition to 
voters for the issuance of a public security, as applicable, the 
issuer shall:
		(1)  post the plans or policies, as applicable, for the 
program, project, facility, or other purpose for which the public 
security is to be issued:
			(A)  at a place convenient to the public in the 
central administrative office of the issuer; and
			(B)  on the Internet with any other 
election-related information, if the issuer has its own Internet 
website or an Internet website on which the issuer regularly 
provides public information; and
		(2)  hold a hearing at which the public has an 
opportunity to comment on the plans or policies for the program, 
project, facility, or other purpose and on potential cost-saving 
measures.
	Sec. 1201.104.  BILINGUAL REQUIREMENTS.  An issuer shall 
provide the information required by Sections 1201.101 and 1201.103 
in English and Spanish without regard to whether the issuer would be 
required to use bilingual election materials under Chapter 272, 
Election Code.
	SECTION 2.  (a)  Section 1201.101, Government Code, as added 
by this Act, applies only to an election on the issuance of public 
securities for which the election order is issued on or after 
September 1, 2005.
	(b)  Section 1201.102, Government Code, as added by this Act, 
applies only to a public security issued on or after September 1, 
2005.
	(c)  Section 1201.103, Government Code, as added by this Act, 
applies only to a public security:
		(1)  for which the election order is issued on or after 
September 1, 2005, if the issuance of the public security requires 
voter approval at an election; or
		(2)  issued on or after September 1, 2005, if the 
issuance of the public security does not require voter approval at 
an election.
	SECTION 3.  This Act takes effect September 1, 2005.