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A BILL TO BE ENTITLED
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AN ACT
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relating to fiscal transparency and accountability of certain |
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political subdivisions. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 140, Local Government Code, is amended |
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by adding Section 140.008 to read as follows: |
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Sec. 140.008. ANNUAL FINANCIAL REPORT; DEBT INFORMATION. |
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(a) In this section: |
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(1) "Debt obligation" means an issued public security, |
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as defined by Section 1201.002, Government Code. |
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(2) "Political subdivision" means a county, |
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municipality, school district, junior college district, other |
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special district, or other subdivision of state government. |
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(b) Except as provided by Subsections (c) and (d), a |
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political subdivision shall prepare an annual financial report that |
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includes: |
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(1) financial information for each fund subject to the |
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authority of the governing body of the political subdivision during |
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the fiscal year, including: |
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(A) the total receipts of the fund, itemized by |
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source of revenue, including taxes, assessments, service charges, |
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grants of state money, gifts, or other general sources from which |
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funds are derived; |
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(B) the total disbursements of the fund, itemized |
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by the nature of the expenditure; |
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(C) the balance in the fund as of the last day of |
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the fiscal year; and |
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(D) any other information required by law to be |
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included by the political subdivision in an annual financial report |
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or comparable annual financial statement, exhibit, or report; |
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(2) as of the last day of the preceding fiscal year, |
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debt obligation information for the political subdivision that must |
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state: |
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(A) the amount of all authorized debt |
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obligations; |
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(B) the principal of all outstanding debt |
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obligations; |
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(C) the principal of each outstanding debt |
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obligation; |
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(D) the combined principal and interest required |
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to pay all outstanding debt obligations on time and in full; |
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(E) the combined principal and interest required |
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to pay each outstanding debt obligation on time and in full; |
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(F) the amounts required by Paragraphs (A)-(E) |
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limited to authorized and outstanding debt obligations secured by |
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ad valorem taxation, expressed as a total amount, and if the |
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political subdivision is a municipality, county, or school |
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district: |
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(i) the median homestead value in the |
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political subdivision, computed by the appraisal district; and |
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(ii) the amount of taxes that would be |
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imposed on a home of that value to repay the political subdivision's |
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authorized and outstanding debt obligations secured by ad valorem |
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taxation; and |
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(G) the following for each debt obligation: |
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(i) the issued and unissued amount; |
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(ii) the spent and unspent amount; |
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(iii) the maturity date; and |
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(iv) the stated purpose for which the debt |
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obligation was authorized; and |
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(3) any other information that the political |
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subdivision considers relevant or necessary to explain the values |
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required by Subdivisions (2)(A)-(F), which may include: |
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(A) if not required to be provided under |
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Subdivision (2)(F): |
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(i) the median homestead value in the |
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political subdivision, computed by the appraisal district; and |
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(ii) the amount of taxes that would be |
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imposed on a home of that value to repay the political subdivision's |
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authorized and outstanding debt obligations secured by ad valorem |
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taxation; |
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(B) an explanation of the payment sources for the |
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different types of debt; and |
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(C) as of the last day of the maximum term of the |
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most recent debt obligation issued by the political subdivision, |
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the amount of taxes that would be imposed on a homestead with a |
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value equal to the median homestead value in the political |
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subdivision, as computed by the appraisal district, to repay the |
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political subdivision's authorized and outstanding debt |
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obligations secured by ad valorem taxation. |
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(c) Instead of replicating in the annual financial report |
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information required by Subsection (b) that is posted separately on |
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the political subdivision's Internet website, or on a website as |
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authorized by Subsection (g)(2), the political subdivision may |
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provide in the report a direct link to, or a clear statement |
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describing the location of, the separately posted information. |
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(d) As an alternative to preparing an annual financial |
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report, a political subdivision may provide to the comptroller the |
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information described by Subsection (b) and any other related |
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information required by the comptroller in the form and in the |
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manner prescribed by the comptroller. The comptroller shall post |
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the information on the comptroller's Internet website in the format |
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that the comptroller determines is appropriate. The political |
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subdivision shall provide a link from the political subdivision's |
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website, or a website as authorized by Subsection (g)(2), to the |
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location on the comptroller's website where the political |
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subdivision's financial information may be viewed. The comptroller |
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shall adopt rules necessary to implement this subsection. |
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(e) Except as provided by Subsection (d), the governing body |
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of a political subdivision shall take action to ensure that: |
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(1) the political subdivision's annual financial |
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report is made available for inspection by any person and is posted |
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continuously on the political subdivision's Internet website, or on |
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a website as authorized by Subsection (g)(2), until the political |
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subdivision posts the next annual financial report; and |
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(2) the contact information for the main office of the |
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political subdivision is continuously posted on the website, |
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including the physical address, the mailing address, the main |
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telephone number, and an e-mail address. |
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(f) Except as provided by Subsection (g), a political |
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subdivision shall maintain or cause to be maintained an Internet |
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website to comply with this section. |
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(g) This subsection does not apply to a county or |
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municipality with a population of more than 2,000 or a school |
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district or a junior college district. If a political subdivision |
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did not maintain an Internet website or cause a website to be |
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maintained on January 1, 2013, the political subdivision shall post |
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the information required by this section on: |
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(1) the political subdivision's website, if the |
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political subdivision chooses to maintain the website or cause the |
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website to be maintained; or |
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(2) a website in which the political subdivision |
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controls the content of the posting, including a social media site, |
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provided that the information is easily found by searching the name |
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of the political subdivision on the Internet. |
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SECTION 2. Section 271.047, Local Government Code, is |
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amended by adding Subsections (d) and (e) to read as follows: |
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(d) Except as provided by Subsection (e), the governing body |
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of an issuer may not authorize a certificate to pay a contractual |
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obligation to be incurred if a bond proposition to authorize the |
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issuance of bonds for the same purpose was submitted to the voters |
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during the preceding three years and failed to be approved. |
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(e) The governing body of an issuer may authorize a |
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certificate that the governing body is otherwise prohibited from |
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authorizing under Subsection (d): |
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(1) in a case described by Sections 271.056(1)-(3); |
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and |
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(2) to comply with a state or federal law, rule, or |
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regulation if the political subdivision has been officially |
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notified of noncompliance with the law, rule, or regulation. |
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SECTION 3. Section 140.006, Local Government Code, is |
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repealed. |
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SECTION 4. (a) The governing body of a school district or |
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junior college district required to publish an annual financial |
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statement under Section 140.006, Local Government Code, as that |
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section existed immediately before the effective date of this Act, |
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shall publish an annual financial statement for the last fiscal |
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year ending before the effective date of this Act for which the |
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district has not published an annual financial statement. |
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(b) Section 140.008, Local Government Code, as added by this |
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Act, applies only to an annual financial report for a fiscal year |
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ending on or after the effective date of this Act. An annual |
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financial report for a fiscal year ending before the effective date |
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of this Act is governed by the law in effect when the fiscal year |
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ended, and the former law is continued in effect for that purpose. |
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SECTION 5. This Act takes effect September 1, 2015. |