83R389 ATP-F

By: Paxton S.B. No. 637

A BILL TO BE ENTITLED

AN ACT

relating to notice and proposition language requirements for bond approval elections held by political subdivisions.

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

SECTION 1. Chapter 1251, Government Code, is amended by adding Section 1251.0001 to read as follows:

Sec. 1251.0001. DEFINITION. In this chapter, "taxing unit" has the meaning assigned by Section 1.04, Tax Code.

SECTION 2. Section 1251.001, Government Code, is amended to read as follows:

Sec. 1251.001. BOND ELECTION REQUIRED. A taxing unit [county or municipality] may not issue bonds that are to be paid from ad valorem taxes unless the issuance is first approved by the qualified voters of the taxing unit [county or municipality] in an election.

SECTION 3. Section 1251.002, Government Code, is amended to read as follows:

Sec. 1251.002. CONTENTS OF PROPOSITION. The proposition submitted in an [the] election under this chapter must distinctly state:

(1) the purpose for which the bonds are to be issued;

(2) the amount of the bonds;

(3) the rate of interest;

(4) the imposition of taxes, including the maximum tax rate, sufficient to pay the annual interest on the bonds and to provide a sinking fund to redeem the bonds at maturity; [and]

(5) the maturity date of the bonds or that the bonds may be issued to mature serially over a specified number of years not to exceed 40;

(6) the aggregate amount of outstanding bonds and other debt obligations, including interest, accumulated by the taxing unit on the date of the election; and

(7) the ad valorem debt tax rate for oustanding bonds and other debt obligations, including interest, imposed by the taxing unit on the date of the election.

SECTION 4. Section 1251.003, Government Code, is amended by amending Subsections (a) and (d) and adding Subsection (e-1) to read as follows:

(a) The general election laws govern an [the] election under this chapter, except as provided by this section.

(d) In addition to the notice required by Section 4.003(c), Election Code, notice of the election shall be given by:

(1) posting a substantial copy of the election order at:

(A) three public places in the boundaries of the taxing unit [county or municipality] holding the election; and

(B) the county courthouse, if the election is a county election, or the city hall, if the election is a municipal election; [and]

(2) publishing notice of the election in a newspaper of general circulation [published] in the boundaries of the taxing unit [county or municipality] holding the election; and

(3) prominently posting the notice of the election and the contents of the proposition on the taxing unit's Internet website, if the taxing unit maintains an Internet website.

(e-1) If required by Subsection (d)(3), the notice and proposition must be posted on the Internet website as soon as practicable after the election is ordered and must remain on the website through the date of the election.

SECTION 5. Section 1251.004, Government Code, is amended to read as follows:

Sec. 1251.004. IMPOSITION OF TAX. At an election ordered on the issuance of bonds of a taxing unit [county or municipality], or of a political subdivision or defined district of a county or municipality, the governing body of the taxing unit [county or municipality] shall also submit the question of whether to impose a tax on property in the taxing unit [county, municipality], other political subdivision, or defined district to pay interest on the bonds and to provide a sinking fund to redeem the bonds.

SECTION 6. Section 1251.005, Government Code, is amended to read as follows:

Sec. 1251.005. BALLOT PROPOSITION. At an [the] election under this chapter, the ballots shall be printed to permit voting for or against the proposition: "The issuance of bonds and the imposition of an ad valorem tax."

SECTION 7. The changes in law made 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 8. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2013.