83R3781 TJB-D

By: Murphy H.B. No. 1321

A BILL TO BE ENTITLED

AN ACT

relating to election procedures for the authorization of certain debt by political subdivisions.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 1251, Government Code, is amended by designating Sections 1251.001, 1251.002, 1251.003, 1251.004, 1251.005, and 1251.006 as Subchapter A and adding a heading to Subchapter A to read as follows:

SUBCHAPTER A. COUNTIES AND MUNICIPALITIES

SECTION 2. Chapter 1251, Government Code, is amended by adding Subchapter B to read as follows:

SUBCHAPTER B. BOND MATTERS AFFECTING MORE THAN ONE TYPE OF

POLITICAL SUBDIVISION

Sec. 1251.051. DEFINITIONS. In this subchapter:

(1) "Debt obligation" means an issued public security, as defined by Section 1201.002.

(2) "Political subdivision" means a county, municipality, school district, junior college district, other special district, or other subdivision of state government.

Sec. 1251.052. CONTENTS OF BALLOT PROPOSITION. (a) The proposition submitted for an election to authorize a political subdivision to issue bonds must distinctly state:

(1) as a total amount and as a per capita amount:

(A) the then-current principal of all outstanding debt obligations of the political subdivision;

(B) the then-current combined principal and interest required to pay all outstanding debt obligations of the political subdivision on time and in full;

(C) the principal of the bonds to be authorized; and

(D) the estimated combined principal and interest required to pay the bonds to be authorized on time and in full;

(2) the purpose for which the bonds are to be authorized;

(3) the estimated rate of interest for the bonds to be authorized; and

(4) the maturity date of the bonds to be authorized.

(b) The requirements for a proposition prescribed by this section are in addition to any other requirements prescribed by law. To the extent of a conflict between this section and Section 52.072, Election Code, this section controls.

SECTION 3. Section 271.049, Local Government Code, is amended by amending Subsection (c) and adding Subsection (e) to read as follows:

(c) If before the date tentatively set for the authorization of the issuance of the certificates or if before the authorization, the municipal secretary or clerk if the issuer is a municipality, or the county clerk if the issuer is a county, receives a petition signed by at least five percent of the qualified voters of the issuer protesting the issuance of the certificates, the issuer may not authorize the issuance of the certificates unless the issuance is approved at an election ordered, held, and conducted in the manner provided for bond elections under Chapter 1251, Government Code. A proposition printed for an election under this subsection must state:

(1) as a total amount and as a per capita amount:

(A) the then-current principal of all outstanding debt obligations of the issuer;

(B) the then-current combined principal and interest required to pay all outstanding debt obligations of the issuer on time and in full;

(C) the principal of the certificates to be authorized; and

(D) the estimated combined principal and interest required to pay the certificates to be authorized on time and in full;

(2) the purpose for which the certificates are to be authorized;

(3) the estimated rate of interest for the certificates to be authorized; and

(4) the maturity date of the certificates to be authorized.

(e) In this section, "debt obligation" means an issued public security, as defined by Section 1201.002, Government Code.

SECTION 4. Section 1251.052, Government Code, as added by this Act, and Section 271.049(c), Local Government Code, as amended by this Act, apply only to an election ordered on or after the effective date of this Act. An election ordered before the effective date of this Act is governed by the law in effect when the election was ordered, and the former law is continued in effect for that purpose.

SECTION 5. This Act takes effect September 1, 2013.