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A BILL TO BE ENTITLED
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AN ACT
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relating to general obligation bonds issued by political |
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subdivisions. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 4.003(f), Election Code, is amended to |
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read as follows: |
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(f) A debt obligation election order required under Section |
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3.009 shall be posted: |
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(1) on election day and during early voting by |
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personal appearance, in a prominent location at each polling place; |
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(2) not later than the 21st day before the election, in |
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three public places in the boundaries of the political subdivision |
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holding the election; and |
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(3) during the 21 days before the election, on the |
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political subdivision's Internet website, prominently and together |
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with the notice of the election, [and] the contents of the |
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proposition, and any sample ballot prepared for the election, if |
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the political subdivision maintains an Internet website. |
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SECTION 2. Section 85.062, Election Code, is amended by |
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adding Subsection (h) to read as follows: |
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(h) In an election at which a political subdivision submits |
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a proposition to the voters to approve the issuance of general |
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obligation bonds, the entity that establishes early voting polling |
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places under this section may not establish the polling places with |
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the intent to affect the outcome of the election. |
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SECTION 3. Subtitle C, Title 9, Government Code, is amended |
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by adding Chapter 1253 to read as follows: |
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CHAPTER 1253. GENERAL OBLIGATION BONDS ISSUED BY POLITICAL |
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SUBDIVISIONS |
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Sec. 1253.001. DEFINITION. In this chapter, "political |
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subdivision" means a county, municipality, school district, junior |
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college district, other special district, or other subdivision of |
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state government. |
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Sec. 1253.002. LIMITATION ON AUTHORITY TO ISSUE GENERAL |
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OBLIGATION BONDS. (a) In this section, "improvement" and "personal |
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property" have the meanings assigned by Section 1.04, Tax Code. |
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(b) Notwithstanding any other provision of law, a political |
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subdivision may not issue general obligation bonds to purchase, |
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improve, or construct improvements or to purchase personal property |
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if the weighted average maturity of the issue of bonds to finance |
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the improvements or personal property exceeds 120 percent of the |
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reasonably expected weighted average economic life of the |
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improvements or personal property financed with the issue of bonds. |
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Sec. 1253.003. USE OF UNSPENT GENERAL OBLIGATION BOND |
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PROCEEDS. (a) A political subdivision may use the unspent proceeds |
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of issued general obligation bonds only: |
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(1) for the specific purposes for which the bonds were |
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authorized; |
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(2) to retire the bonds; or |
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(3) for a purpose other than the specific purposes for |
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which the bonds were authorized if: |
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(A) the specific purposes are accomplished or |
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abandoned; and |
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(B) a majority of the votes cast in an election |
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held in the political subdivision approve the use of the proceeds |
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for the proposed purpose. |
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(b) The election order and the notice of election for an |
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election described by Subsection (a)(3)(B) must state the proposed |
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purpose for which the bond proceeds are to be used. |
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(c) A political subdivision must hold an election described |
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by Subsection (a)(3)(B) in the same manner as an election to issue |
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bonds in the political subdivision. |
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SECTION 4. Chapter 1332, Government Code, is repealed. |
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SECTION 5. Section 1253.002, Government Code, as added by |
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this Act, applies only to a general obligation bond authorized to be |
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issued at an election held on or after the effective date of this |
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Act. |
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SECTION 6. This Act takes effect December 1, 2017. |