83R1746 TJB-D

By: Williams S.B. No. 14

A BILL TO BE ENTITLED

AN ACT

relating to the fiscal transparency and accountability of certain entities responsible for public money.

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

SECTION 1. Chapter 46, Education Code, is amended by adding Subchapter D to read as follows:

SUBCHAPTER D. PUBLIC INFORMATION REGARDING FACILITIES

Sec. 46.101. DEFINITION. In this subchapter, "instructional facility" has the meaning assigned by Section 46.001.

Sec. 46.102. INVENTORY OF EXISTING FACILITIES. (a) A school district or open-enrollment charter school shall post an inventory of the district's or school's existing facilities on the district's or school's Internet website.

(b) The inventory must include at least the following information regarding instructional facilities:

(1) the total available square footage and maximum student capacity of the district's or school's instructional facilities in aggregate;

(2) the total current student enrollment in the district or school; and

(3) for each separate instructional facility:

(A) square footage;

(B) maximum student capacity; and

(C) current student enrollment.

(c) The inventory must include at least the following information regarding each facility other than an instructional facility:

(1) square footage;

(2) a statement of the facility's current use; and

(3) any other information specified by rule adopted by the commissioner.

(d) For a facility for which the school district or open-enrollment charter school developed and posted construction or renovation information in accordance with Section 46.103, the information provided under this section for the facility must also include the final updated information required under Section 46.103. This subsection does not require a district or school to develop and post information regarding construction or renovation costs for a facility not subject to Section 46.103.

(e) A school district or open-enrollment charter school shall update the information posted under this section at least annually and more frequently if necessary to ensure that the information provides an accurate description of existing facilities.

(f) A school district or open-enrollment charter school shall maintain an Internet website to comply with this section.

Sec. 46.103. CONSTRUCTION AND RENOVATION OF FACILITIES. (a) A school district or open-enrollment charter school shall post on the district's or school's Internet website at least the information specified by this section regarding each project for the construction or renovation of a facility.

(b) The following information must be posted regarding an instructional facility:

(1) the square footage of the facility;

(2) the square footage per student, computed using the maximum student capacity at the facility;

(3) the cost per square foot;

(4) the cost per student, computed using the maximum student capacity at the facility; and

(5) the average cost of constructing a comparable facility in the region, as determined by the commissioner under Subsection (f).

(c) The following information must be posted regarding a facility other than an instructional facility:

(1) the square footage of the facility;

(2) a statement of the intended use of the facility;

(3) the cost per square foot;

(4) the average cost of constructing a comparable facility in the region, as determined by the commissioner under Subsection (f); and

(5) any other information specified by rule adopted by the commissioner.

(d) A school district or open-enrollment charter school shall comply with this section at the beginning of a project by posting information based on estimated costs and anticipated construction or renovation design plans. At the conclusion of the project, the district or school shall post updated information that reflects the actual cost and final specifications of the project. Subsequently, the district or school shall continue to post the information as provided by Section 46.102(d).

(e) A school district or open-enrollment charter school shall maintain an Internet website to comply with this section.

(f) The commissioner shall determine and periodically update information regarding the average cost per square foot in each region of the state of constructing instructional facilities and other school district or open-enrollment charter school facilities. The commissioner may base a determination under this subsection on any relevant information available to the commissioner and may enter into any contract necessary to authorize use of or access to the information. SECTION 2. Section 51.005, Education Code, is amended to read as follows:

Sec. 51.005. ANNUAL FINANCIAL REPORT [REPORTS]. (a) Each institution of higher education shall:

(1) prepare a complete annual financial report as prescribed by Section 2101.011, Government Code; and

(2) post the institution's most recent annual financial report continuously on the institution's Internet website.

(b) Each institution of higher education that is a component of a university system shall include in its annual financial report a description of any debt issued by the university system for or on behalf of the institution during the fiscal year covered by the report. In this subsection, "university system" has the meaning assigned by Section 61.003.

SECTION 3. Subchapter C, Chapter 61, Education Code, is amended by adding Section 61.0621 to read as follows:

Sec. 61.0621. JUNIOR COLLEGE DISTRICT CONSTRUCTION COST REPORTING. (a) The board shall require each junior college district to report building construction costs and related information to the board for the purpose of determining:

(1) the average cost per square foot, adjusted for inflation for the region of the state in which the project is located; and

(2) the average cost per student for each junior college district.

(b) The board, in consultation with the governing boards of the state's junior college districts, shall prescribe the form, manner, and times of reports required under this section.

(c) The board shall compile the information reported under Subsection (a) for all junior college districts and periodically report its findings to the districts. The board and each junior college district shall post the board's findings on each respective entity's Internet website.

(d) The board shall adopt rules for the administration of this section.

(e) In administering this section, the board shall attempt to avoid duplicating other reporting requirements applicable to junior college districts.

SECTION 4. Subchapter B, Chapter 403, Government Code, is amended by adding Section 403.0117 to read as follows:

Sec. 403.0117. LOCAL TAX RATES PUBLISHED ON INTERNET. (a) The comptroller shall publish on the comptroller's Internet website, listed by county:

(1) the name of each political subdivision that imposes a sales and use tax and the sales and use tax rate for the political subdivision; and

(2) the tax rate information reported to the comptroller by each county assessor-collector under Section 26.16(e), Tax Code.

(b) The comptroller shall update the information described by Subsection (a) at least annually.

SECTION 5. Section 1202.008, Government Code, is amended to read as follows:

Sec. 1202.008. COLLECTION AND REPORT OF INFORMATION ON LOCAL [PUBLIC] SECURITIES [OF POLITICAL SUBDIVISIONS]. (a) In this section, "local security" has the meaning assigned by Section 1231.001.

(b) In reviewing public securities under this chapter, the attorney general shall [may] collect, in the form required by the Bond Review Board, information on each local security [public securities issued by a municipal corporation or political subdivision of this state].

(c) [(b)] The information must include:

(1) the terms of each local security [the public securities];

(2) the debt service payable on each local security [the public securities]; and

(3) other information required by the Bond Review Board.

(d) [(c)] The attorney general shall send the information to the Bond Review Board for inclusion in the reports required by Sections [board's report of debt statistics under Section] 1231.062, 1231.104, and 1231.105.

(e) The attorney general may not approve a local security under Section 1202.003 until the attorney general receives written notification from the Bond Review Board that the board:

(1) has received the information required by Subsection (c); or

(2) has agreed to a later date for the submission of the information.

SECTION 6. The heading to Subtitle B, Title 9, Government Code, is amended to read as follows:

SUBTITLE B. PROVISIONS APPLICABLE TO PUBLIC SECURITIES [ISSUED BY

STATE GOVERNMENT]

SECTION 7. Section 1231.001, Government Code, is amended by adding Subdivision (4) to read as follows:

(4) "Local security" means a public security as defined by Section 1201.002, other than a state security.

SECTION 8. Section 1231.062(b), Government Code, is amended to read as follows:

(b) A report must include:

(1) total debt service as a percentage of total expenditures;

(2) total debt [tax-supported debt service as a percentage of general revenue expenditure;

[(3)] per capita [total debt];

(3) tax-supported debt [(4) per capita tax-supported debt;

[(5) total debt and tax-supported debt as a percentage of personal income;

[(6) total personal income per capita;

[(7) total debt per capita as a percentage of total personal income] per capita;

(4) [(8)] total debt and tax-supported debt as a percentage of real property valuations;

(5) [(9) total debt and tax-supported debt as a percentage of annual revenues and expenditures;

[(10)] principal scheduled [required] to be repaid in five years, [and principal required to be repaid in] 10 years, and 20 years;

(6) [(11) growth rates of total debt per capita and total debt per dollar of personal income;

[(12)] recent issuances [trends in the issuance] of short-term notes;

(7) [(13)] recent trends in issuance costs;

(8) [(14)] savings from recent refundings;

(9) debt outstanding [(15) recent trends in capitalized interest use;

[(16) debt service coverage ratios, if applicable]; and

(10) [(17)] other information the board considers relevant.

SECTION 9. The heading to Section 1231.102, Government Code, is amended to read as follows:

Sec. 1231.102. STATE SECURITIES ANNUAL REPORT.

SECTION 10. Subchapter F, Chapter 1231, Government Code, is amended by adding Sections 1231.104, 1231.105, and 1231.106 to read as follows:

Sec. 1231.104. LOCAL SECURITIES ANNUAL REPORT. Not later than the 180th day after the end of each state fiscal year, the bond finance office shall publish a report listing:

(1) the amount of local securities outstanding;

(2) applicable repayment schedules; and

(3) other information the office considers relevant.

Sec. 1231.105. ONLINE ANNUAL LOCAL DEBT STATISTICS REPORT. Not later than the 150th day after the end of each state fiscal year, the bond finance office shall publish on the office's Internet website a report that includes the statistical information listed in Section 1231.062(b) for all local securities for the preceding fiscal year.

Sec. 1231.106. REQUIRED INFORMATION. (a) An issuer of a local security shall provide annually to the bond finance office, and at other times required by the office, information that the office determines necessary to administer the powers or duties of the board or the office, including the preparation of any report.

(b) The bond finance office shall develop a standardized format to simplify the submission of information by an issuer under this section.

SECTION 11. 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 12. 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.

Sec. 1251.053. ONLINE SAMPLE BALLOT. A sample of the ballot printed for an election to authorize a political subdivision to issue bonds must be posted on the political subdivision's Internet website as soon as practicable after the official ballots have been prepared and must remain posted until the day following the election.

Sec. 1251.054. FORM OF BALLOT. The secretary of state shall prescribe a form of the ballot for an election held under this subchapter. A political subdivision is not required to use the form.

SECTION 13. Section 140.005, Local Government Code, is transferred to Subchapter D, Chapter 12, Education Code, redesignated as Section 12.1191, Education Code, and amended to read as follows:

Sec. 12.1191 [140.005]. ANNUAL FINANCIAL STATEMENT OF CHARTER SCHOOL [, ROAD, OR OTHER DISTRICT]. (a) The governing body of an [a school district,] open-enrollment charter school [, junior college district, or a district or authority organized under Article III, Section 52, or Article XVI, Section 59, of the Texas Constitution,] shall prepare an annual financial statement showing for each fund subject to the authority of the governing body during the fiscal year:

(1) the total receipts of the fund, itemized by source of revenue, including taxes, assessments, service charges, grants of state money, gifts, or other general sources from which funds are derived;

(2) the total disbursements of the fund, itemized by the nature of the expenditure; and

(3) the balance in the fund at the close of the fiscal year.

(b) The governing body of an open-enrollment charter school shall take action to ensure that the school's annual financial report is made available in the manner provided by Chapter 552, Government Code, and is posted continuously on the school's Internet website.

(c) An open-enrollment charter school shall maintain an Internet website to comply with this section.

SECTION 14. Chapter 140, Local Government Code, is amended by adding Section 140.008 to read as follows:

Sec. 140.008. ANNUAL FINANCIAL REPORT; DEBT INFORMATION. (a) In this section:

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

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

(b) A political subdivision shall prepare an annual financial report that includes:

(1) financial information for each fund subject to the authority of the governing body of the political subdivision during the fiscal year, including:

(A) the total receipts of the fund, itemized by source of revenue, including taxes, assessments, service charges, grants of state money, gifts, or other general sources from which funds are derived;

(B) the total disbursements of the fund, itemized by the nature of the expenditure;

(C) the balance in the fund as of the last day of the fiscal year; and

(D) any other information required by law to be included by the political subdivision in an annual financial report or comparable annual financial statement, exhibit, or report; and

(2) then-current debt obligation information for the political subdivision that must state:

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

(i) the amount of all authorized debt obligations;

(ii) the principal of all outstanding debt obligations;

(iii) the principal of each outstanding debt obligation;

(iv) the combined principal and interest required to pay all outstanding debt obligations on time and in full; and

(v) the combined principal and interest required to pay each outstanding debt obligation on time and in full; and

(B) for each debt obligation:

(i) the issued and unissued amount;

(ii) the spent and unspent amount;

(iii) the maturity date; and

(iv) the stated purpose for which the debt obligation was authorized.

(c) The governing body of a political subdivision shall take action to ensure that:

(1) the political subdivision's annual financial report is made available for inspection by any person and is posted continuously on the political subdivision's Internet website; and

(2) the contact information for the main office of the political subdivision is continuously posted on the website, including the physical address, the mailing address, the main telephone number, and an e-mail address.

(d) A political subdivision shall maintain an Internet website to comply with this section.

SECTION 15. Section 271.047, Local Government Code, is amended by adding Subsection (d) to read as follows:

(d) Except in a case of grave public necessity to meet an unusual and unforeseen condition, the governing body of an issuer may not authorize a certificate to pay a contractual obligation to be incurred if a bond proposition to authorize the issuance of bonds for the same purpose was submitted to the voters during the preceding three years and failed to be approved.

SECTION 16. Section 271.049, Local Government Code, is amended to read as follows:

Sec. 271.049. NOTICE OF INTENTION TO ISSUE CERTIFICATES; PETITION AND ELECTION. (a) Regardless of the sources of payment of certificates, certificates may not be issued unless the issuer publishes notice of its intention to issue the certificates. The notice must be published:

(1) once a week for two consecutive weeks in a newspaper, as defined by Subchapter C, Chapter 2051, Government Code, that is of general circulation in the area of the issuer, with the date of the first publication to be before the 45th [30th] day before the date tentatively set for the passage of the order or ordinance authorizing the issuance of the certificates; and

(2) continuously on the issuer's Internet website for at least 45 days before the date tentatively set for the passage of the order or ordinance authorizing the issuance of the certificates.

(b) The notice must state:

(1) the time and place tentatively set for the passage of the order or ordinance authorizing the issuance of the certificates;

(2) the [maximum amount and] purpose of the certificates to be authorized; [and]

(3) the manner in which the certificates will be paid for, whether by taxes, revenues, or a combination of the two;

(4) the following, stated 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;

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

(6) the maturity date of the certificates to be authorized; and

(7) the process by which a petition may be submitted requesting an election on the issuance of the certificates, in the following form:

"Five percent of the total number of voters of (name of issuer) that voted in the most recent gubernatorial general election may petition to require an election to be held authorizing the issuance of certificates of obligation by delivering a signed petition to the (insert "secretary or clerk" if the issuer is a municipality, or "county clerk" if the issuer is a county) of (name of issuer) before the date the governing body has set for the authorization of the certificates of obligation. Information about the requirements of the petition may be obtained from the (insert "secretary or clerk" if the issuer is a municipality, or "county clerk" if the issuer is a county) of (name of issuer)."[.]

(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 a number of qualified voters of the issuer equal to five percent or more of the number of votes cast in the municipality or county, as applicable, in the most recent gubernatorial general election [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.

(d) This section does not apply to certificates issued for the purposes described by Sections 271.056(1)-(3) [271.056(1)-(4)].

(e) An issuer shall maintain an Internet website to comply with this section.

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

SECTION 17. Title 1, Special District Local Laws Code, is amended by adding Chapter 2 to read as follows:

CHAPTER 2. REVIEW OF CERTAIN SPECIAL DISTRICTS

Sec. 2.001. DEFINITION. In this chapter, "special district" means a political subdivision of this state that has a limited geographic area, is created by local law or under general law for a special purpose, and is authorized to impose a tax, assessment, or fee. The term does not include a school district or junior college district.

Sec. 2.002. COMPREHENSIVE REVIEW REQUIRED. At least once every three years, the governing body of a special district shall conduct a comprehensive review of the district under this chapter to determine whether the district should be continued or dissolved.

Sec. 2.003. COMPREHENSIVE SELF-EVALUATION REPORT. (a) After conducting the review, the governing body must publish a written self-evaluation report not later than the 30th day before the date of the public hearing required by Section 2.005.

(b) The self-evaluation report must include:

(1) an identification of the statutory provision authorizing the special district;

(2) an identification of the mission, goals, and objectives intended for the special district and an assessment of the extent to which the mission, goals, and objectives have been achieved, have failed to be achieved, or are continuing to be achieved;

(3) an identification of the problem or need that the special district was created to address and an assessment of the extent to which the problem or need has been addressed, has failed to be addressed, or is continuing to be addressed;

(4) an identification of the activities of the special district that overlap or duplicate those of other governmental entities;

(5) an identification of each tax, assessment, fee, or penalty that the special district is authorized to impose or collect;

(6) a statement of the revenue collected by the special district and an assessment of whether the revenue exceeds the amount needed to accomplish the mission, goals, and objectives of the district;

(7) an identification of the special district's financial liabilities, including bonds and other obligations; and

(8) a determination of whether the special district should be continued or dissolved.

(c) The governing body must make the self-evaluation report available for inspection by any person. The governing body must take action to ensure that the self-evaluation report is posted continuously on the special district's Internet website.

Sec. 2.004. NOTICE OF HEARING. (a) Not earlier than the 30th day or later than the 15th day before the date of the hearing required by Section 2.005, the governing body of the special district must publish notice of the hearing in at least one newspaper of general circulation in the county in which the district is located and on the district's Internet website. The notice on the website must remain posted until the conclusion of the hearing.

(b) The notice must contain a statement in the following form:

"NOTICE OF PUBLIC MEETING TO DISCUSS THE CONTINUATION OF THE

(INSERT NAME OF SPECIAL DISTRICT)

"The (insert name of the district) was created in (insert year) to (insert purpose for district's creation). The district imposes a (insert type of tax, assessment, or fee, as appropriate, and the appropriate rate or amount). State law requires the district to hold a hearing at least every three years to determine whether the district should be continued or dissolved. The hearing will be held on (insert date) at (insert time) at (insert location). A copy of the district's self-evaluation report is available at (insert the physical address of the district's main office, or the physical address of the main office of another local political subdivision if the district does not maintain an office, and the district's website address where the self-evaluation report is posted)."

Sec. 2.005. PUBLIC HEARING. (a) The governing body of a special district must conduct a public hearing at which persons interested in the continuation or dissolution of the district are given the opportunity to be heard.

(b) At the conclusion of the hearing, the governing body must vote on the question of whether the special district should be continued or dissolved. If the governing body votes to dissolve the district, the governing body shall take action to dissolve the district.

(c) Not later than the 10th day after the date of the public hearing, the governing body must post on the special district's Internet website:

(1) the minutes of the hearing;

(2) the estimated number of members of the public in attendance at the hearing; and

(3) the number of witnesses testifying at the hearing.

Sec. 2.006. INTERNET WEBSITE. A special district shall maintain an Internet website to comply with this chapter.

SECTION 18. The heading to Section 26.16, Tax Code, is amended to read as follows:

Sec. 26.16. REPORTING OF TAX RATES AND POSTING OF [TAX] RATES ON COUNTY'S INTERNET WEBSITE.

SECTION 19. Section 26.16, Tax Code, is amended by amending Subsections (a), (b), and (e) and adding Subsection (f) to read as follows:

(a) The county assessor-collector for each county, including those that do not participate in the assessment or collection of property taxes, shall maintain [that maintains] an Internet website. The county assessor-collector shall post on the website [of the county] the following information for the most recent five tax years beginning with the 2012 tax year for each taxing unit all or part of the territory of which is located in the county:

(1) the adopted tax rate;

(2) the maintenance and operations rate;

(3) the debt rate;

(4) the effective tax rate;

(5) the effective maintenance and operations rate; and

(6) the rollback tax rate.

(b) Each taxing unit [all or part of the territory of which is located in the county] shall annually provide the information described by Subsection (a) pertaining to the taxing unit to the county assessor-collector of each county in which all or part of the unit's territory is located [annually] following the adoption of a tax rate by the taxing unit for the current tax year. The chief appraiser of the appraisal district established in the county may assist the county assessor-collector in identifying the taxing units required to provide information to the assessor-collector.

(e) The county assessor-collector for each county shall report the tax rate information described by Subsection (a) for the current tax year to the comptroller.

(f) The comptroller by rule shall prescribe the time and manner in which the information described by this section is required to be reported and published [presented].

SECTION 20. Section 140.006, Local Government Code, is repealed.

SECTION 21. (a) Section 46.103, Education Code, as added by this Act, applies only to school district construction or renovation projects that are in progress on or are initiated on or after the effective date of this Act. A school district is not required to post information regarding projects that are completed on or before the effective date of this Act.

(b) Sections 1251.052 and 1251.053, Government Code, as added by this Act, apply only to a bond election ordered on or after the effective date of this Act. A bond election ordered before the effective date of this Act is governed by the law in effect when the bond election was ordered, and the former law is continued in effect for that purpose.

(c) Not later than January 1, 2014, the secretary of state shall make available on the secretary of state's Internet website a form of the ballot described by Section 1251.054, Government Code, as added by this Act.

(d) The governing body of a school district or junior college district required to publish an annual financial statement under former Section 140.006, Local Government Code, shall publish an annual financial statement for the last fiscal year ending before the effective date of this Act for which the district has not published an annual financial statement.

(e) Section 140.008, Local Government Code, as added by this Act, applies only to an annual financial report for a fiscal year ending on or after the effective date of this Act. An annual financial report for a fiscal year ending before the effective date of this Act is governed by the law in effect when the fiscal year ended, and the former law is continued in effect for that purpose.

(f) The changes in law made by this Act to Section 271.049, Local Government Code, apply only to a certificate of obligation for which the first notice of intention to issue the certificate is made on or after the effective date of this Act. A certificate of obligation for which the first notice of intention to issue the certificate is made before the effective date of this Act is governed by the law in effect when the notice of intention is made, and the former law is continued in effect for that purpose.

(g) The governing body of a special district to which Chapter 2, Special District Local Laws Code, as added by this Act, applies must conclude the first comprehensive review cycle required by that chapter not later than September 1, 2014.

SECTION 22. This Act takes effect September 1, 2013.