84R6685 TJB-F

By: Murphy H.B. No. 1647

A BILL TO BE ENTITLED

AN ACT

relating to voter information provided by political subdivisions before an election to authorize the issuance of bonds.

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. BOND MATTERS AFFECTING 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. VOTER INFORMATION DOCUMENT. (a) In this section:

(1) "Bond election order" means the order, ordinance, or resolution, adopted by the governing body of a political subdivision, that orders an election to authorize the political subdivision to issue a bond.

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

(b) This section applies only to a political subdivision with at least 250 registered voters on the date the governing body of the political subdivision adopts the bond election order.

(c) A political subdivision must prepare a separate voter information document for each proposed issuance of bonds secured by and payable from ad valorem taxes before the proposition is submitted to the voters for authorization at a bond election. Each voter information document must distinctly state:

(1) the language that will appear on the ballot;

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

(3) that taxes sufficient to pay the annual principal of and interest on the bonds may be imposed;

(4) the maximum rate of interest for the bonds to be authorized;

(5) the maturity date of the bonds to be authorized or that the bonds may be issued to mature over a specified number of years not to exceed the maximum number of years authorized by law;

(6) the following information as a total amount and, if the political subdivision is a municipality, county, or school district, as a per capita amount:

(A) the principal of the bonds to be authorized;

(B) the estimated interest for the bonds to be authorized;

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

(D) as of the first day of the political subdivision's fiscal year in which the political subdivision adopts the bond election order, the principal of all outstanding bonded debt of the political subdivision secured by and payable from ad valorem taxation;

(E) as of the first day of the political subdivision's fiscal year in which the political subdivision adopts the bond election order, the estimated remaining interest of all outstanding bonds of the political subdivision secured by and payable from ad valorem taxation; and

(F) as of the first day of the political subdivision's fiscal year in which the political subdivision adopts the bond election order, the estimated combined principal and interest required to pay all outstanding bonds of the political subdivision secured by and payable from ad valorem taxation on time and in full;

(7) the ad valorem debt service tax rate expressed in dollars per $100 valuation of all taxable property in the political subdivision, stated as:

(A) the existing rate;

(B) the estimated rate if the bonds are issued; and

(C) the estimated percentage increase in the rate if the bonds are issued;

(8) if the political subdivision is a municipality, county, or school district, the amount of the ad valorem debt service tax levy of the political subdivision per residence based on the current average residential property value in the political subdivision, stated as:

(A) the existing levy;

(B) the estimated levy if the bonds are issued; and

(C) the estimated percent increase in the levy if the bonds are issued;

(9) the address where a person may submit a request for public information to the political subdivision under Chapter 552; and

(10) any other information that the political subdivision considers relevant or necessary to explain the values required by Subdivisions (4), (5), (6), (7), and (8), including:

(A) an amount required by Subdivision (6) stated as a per capita amount if the political subdivision is not required to provide the amount under that subdivision;

(B) an amount required by Subdivision (8) stated as a per residence amount if the political subdivision is not required to provide the amount under that subdivision; and

(C) a value for the following expressed as a projection as of the last day of the maximum term of the bonds to be authorized:

(i) a per capita amount required by Subdivision (6);

(ii) an estimated rate required by Subdivision (7)(B); and

(iii) an estimated levy required by Subdivision (8)(B).

(d) Not later than the 21st day before the date of the bond election, the political subdivision shall ensure that each voter information document described by Subsection (c) is:

(1) provided to the public in accordance with the requirements for a notice of an election under Section 4.003, Election Code;

(2) posted on the political subdivision's Internet website until the first day after the date of the bond election; and

(3) made available to any person in accordance with Chapter 552.

(e) The secretary of state may provide a sample form of a voter information document for use by a political subdivision.

(f) The Texas Ethics Commission shall provide guidelines for political subdivisions regarding how to provide additional information on a voter information document without violating electioneering and political advertising laws, including Section 255.003, Election Code, and Section 11.169, Education Code.

(g) A good faith estimate in a voter information document of an estimate required by Subsection (c)(6) or an estimate or projection authorized by Subsection (c)(10) does not constitute a breach of contract with the voters solely because the estimate or projection is later determined to be incorrect.

(h) For the purpose of determining the number of registered voters in a political subdivision under Subsection (b), the governing body of the political subdivision shall use the best available information. The governing body may rely conclusively on a list of registered voters in the political subdivision provided by the county voter registrar to the political subdivision not earlier than the 30th day before the date the bond election order is adopted. The county voter registrar shall provide the list of registered voters on request of the governing body.

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

SECTION 3. (a) Section 1251.051, Government Code, as added by this Act, applies only to a bond election ordered on or after January 1, 2016. A bond election ordered before January 1, 2016, is governed by the law in effect when the bond election was ordered, and the former law is continued in effect for that purpose.

(b) Not later than December 1, 2015, the Texas Ethics Commission shall make available on the Texas Ethics Commission's Internet website the guidelines required by Section 1251.051(f), Government Code, as added by this Act.

SECTION 4. This Act takes effect September 1, 2015.