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A BILL TO BE ENTITLED
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AN ACT
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relating to ballot propositions authorizing certain political |
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subdivisions to issue bonds. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 1251, Government Code, is amended by |
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designating Sections 1251.001, 1251.002, 1251.003, 1251.004, |
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1251.005, and 1251.006 as Subchapter A and adding a subchapter |
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heading to read as follows: |
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SUBCHAPTER A. BOND ELECTION REQUIREMENTS FOR COUNTIES AND |
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MUNICIPALITIES |
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SECTION 2. Chapter 1251, Government Code, is amended by |
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adding Subchapter B to read as follows: |
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SUBCHAPTER B. BOND ELECTION BALLOTS FOR CERTAIN POLITICAL |
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SUBDIVISIONS |
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Sec. 1251.051. DEFINITIONS. In this subchapter: |
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(1) "Capital appreciation bond" means a bond that |
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accrues and compounds interest from its date of delivery, the |
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interest on which by its terms is payable only on maturity or prior |
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redemption. |
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(2) "Political subdivision" means a county, |
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municipality, or school district. |
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Sec. 1251.052. CONTENTS OF BALLOT PROPOSITION. (a) The |
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proposition submitted for an election to authorize a political |
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subdivision to issue bonds supported by property taxes must: |
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(1) distinctly state the annual increase in property |
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taxes attributable to the bonds to be issued that each homeowner of |
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an average-priced home within the political subdivision may be |
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required to pay; and |
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(2) if the bonds to be issued may be of a type that |
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accrue and defer interest costs, such as capital appreciation |
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bonds: |
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(A) include a conspicuous statement that the |
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interest costs of the bonds continue to accrue but are deferred to a |
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later date; and |
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(B) distinctly state the range of the projected |
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tax impact on property taxes described by Subdivision (1) from the |
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date the bonds are issued until the date the bonds mature. |
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(b) The requirements for a proposition prescribed by this |
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section are in addition to any other requirements prescribed by |
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law. To the extent of a conflict between this section and Section |
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52.072, Election Code, this section controls. |
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SECTION 3. Section 1251.052, Government Code, as added by |
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this Act, applies only to a bond election ordered on or after |
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January 1, 2016. A bond election ordered before January 1, 2016, is |
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governed by the law in effect when the bond election was ordered, |
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and the former law is continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2015. |