BILL ANALYSIS |
C.S.H.B. 134 |
By: Simpson |
Elections |
Committee Report (Substituted) |
BACKGROUND AND PURPOSE
Interested parties note that a recent report on state indebtedness indicates that local debt more than doubled in a 10-year span. Interested parties contend that when taxpayers are presented with a bond proposition at an election there is little information available on how the measure will affect the current indebtedness of the entity undertaking the indebtedness. C.S.H.B. 134 seeks to remedy this situation.
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CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
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RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
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ANALYSIS
C.S.H.B. 134 amends the Election Code to require the secretary of state to require a ballot proposition for a proposed constitutional amendment to authorize the issuance of general obligation bonds, in addition to any other wording for such a ballot proposition, to be accompanied by a statement both on the ballot and in the proclamation ordering the election at which the amendment will be submitted that includes the following amounts, with each stated as a total amount and as a per capita amount for the then-current population of the state: the then-current general obligation debt of the state, the maximum amount of additional general obligation debt of the state that would be authorized by the proposed amendment, and the maximum estimated cost to repay the general obligation debt that would be authorized by the proposed amendment, including principal and interest, at a stated likely interest rate. The bill requires the Bond Review Board on the request of the secretary of state, for the purposes of the required information, to certify the then-current general obligation debt of the state, to determine a likely interest rate for the proposed bonds, and to compute the estimated maximum repayment cost in accordance with the likely interest rate. The bill prescribes the format in which the ballot must be printed. The bill requires the statement to be considered by the secretary of state before the secretary certifies the proposed amendment for placement on the ballot and to be appropriately translated for other ballot language.
C.S.H.B. 134 amends the Government Code to require a ballot printed for an election to authorize a local government to issue general obligation bonds to include with the ballot proposition a statement that includes the following amounts, with each stated as a total amount and as a per capita amount for the then-current population of the local government: the then-current general obligation debt of the local government, the maximum amount of additional general obligation debt of the local government that would be authorized if the proposition is passed, and the maximum estimated cost to repay the general obligation debt that would be authorized by the proposed amendment, including principal and interest, at a stated likely interest rate. The bill prescribes the format in which the ballot must be printed. The bill requires the treasurer of the local government or another person as determined by the governing body of the local government, for the purposes of the required information, to certify the then-current general obligation debt of the local government, to determine a likely interest rate for the proposed bonds, and to compute the estimated maximum repayment cost in accordance with the likely interest rate.
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EFFECTIVE DATE
September 1, 2015.
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COMPARISON OF ORIGINAL AND SUBSTITUTE
While C.S.H.B. 134 may differ from the original in minor or nonsubstantive ways, the following comparison is organized and formatted in a manner that indicates the substantial differences between the introduced and committee substitute versions of the bill.
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