BILL ANALYSIS

Senate Research Center	S.B. 625
85R6264 JXC-D	By: Kolkhorst
	Intergovernmental Relations
	3/31/2017
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Texas has seen a proliferation of special purpose taxing districts in recent years. A person may work or reside in an area governed by a variety of special districts. Special districts are governed by boards that are directly elected by the people or appointed by elected representatives. While these entities play an important role in providing necessary services, it can be difficult for the average citizen to obtain important financial and tax data about the special districts that administer so many facets of their daily lives. This data is important to allow the voters the ability to make informed decisions about how these districts should operate and who should govern them.

S.B. 625 instructs the Texas comptroller of public accounts (comptroller) to create a special purpose district public information database that contains data related to all active districts' financial and tax data. Each active district that imposes a sales tax or property tax or that imposes an assessment or charges a fee would be required to submit a variety of data to the online database.

Each district would be required to provide their contact information, their board members, their website, if any, and information related to debt, bonds, tax rates, and revenue. To the extent that any district is required to provide this data to another agency such as the attorney general or the Texas Commission on Environmental Quality, then the comptroller may require that agency to provide the information.

Any district that fails to submit the data would be placed on a noncompliance list and would be subject to other penalty.

As proposed, S.B. 625 amends current law relating to public access to financial and tax rate information of certain special purpose districts.

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted the Texas comptroller of public accounts in SECTION 1 (Section 403.0241, Government Code) of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Subchapter B, Chapter 403, Government Code, by adding Sections 403.0241 and 403.0242, as follows:

Sec. 403.0241. SPECIAL PURPOSE DISTRICT PUBLIC INFORMATION DATABASE. (a) Defines "special purpose district" and "tax year."

(b) Requires the Texas comptroller of public accounts (comptroller) to create and make accessible on the Internet a database, to be known as the Special Purpose District Public Information Database (database), that contains information regarding all active special purpose districts (districts) of this state that are authorized by the state by a general or special law to impose an ad valorem tax or a sales and use tax, to impose an assessment, or to charge a fee.

(d) Authorizes the comptroller to consult with the appropriate officer of, or other person representing, each district to obtain the information necessary to operate and update the database.

(e) Authorizes the comptroller, to the extent information required in the database is otherwise collected or maintained by a state agency or district, to request and requires the state agency or district to provide that information and updates to the information as necessary for inclusion in the database.

(f) Requires the comptroller to update information in the database at least annually.

(g) Prohibits the comptroller from charging a fee to the public to access the database.

(h) Authorizes the comptroller to establish procedures and adopt rules to implement this section.

Sec. 403.0242. SPECIAL PURPOSE DISTRICT NONCOMPLIANCE LIST. (a) Requires the comptroller to prepare and maintain a noncompliance list of districts that have not complied with a requirement to provide information under Section 403.0241 or Section 203.062, Local Government Code.

(b) Requires the comptroller, if a district does not comply with a requirement to provide information under Section 403.0241 or Section 203.062, Local Government Code, to notify the person listed as the contact for the district. Requires that the notice be in writing, describe the information that is required to be submitted to the comptroller, and inform the district that the district will be placed on the noncompliance list if the required information is not provided.

(c) Prohibits the Texas attorney general from approving a public security submitted under Chapter 1202 (Examination and Registration of Public Securities) by a district that appears on the noncompliance list until the attorney general receives written notification from the comptroller that the comptroller has received the required information or has agreed to a later date for the district to submit the information.

SECTION 2. Amends Chapter 203, Local Government Code, by adding Subchapter D, as follows:

SUBCHAPTER D. RECORDS AND INFORMATION PROVIDED TO COMPTROLLER

Sec. 203.061. APPLICABILITY OF SUBCHAPTER. Provides that this subchapter applies only to a district described by Section 403.0241(b), Government Code.�

Sec. 203.062. PROVISION OF CERTAIN RECORDS AND OTHER INFORMATION TO COMPTROLLER. (a) Requires a district to transmit records and other information to the comptroller annually for purposes of providing the comptroller with information to operate and update the database under Section 403.0241, Government Code.

(b) Authorizes the district to comply with Subsection (a) by transmitting an affidavit affirming that records and other information previously transmitted are current.

(c) Requires the district to transmit the records and other information in a form and in the manner prescribed by the comptroller.

SECTION 3. Requires the comptroller to create and post on the Internet the database required by Section 403.0241, Government Code, as added by this Act, not later than January 1, 2018.

SECTION 4. Requires the comptroller, not later than January 1, 2018, to send written notice to each district described by Section 403.0241(b), Government Code, as added by this Act, that describes the changes in law made by this Act. Requires each district that receives notice to submit to the comptroller any information required under Section 403.0241, Government Code, or Section 203.062, Local Government Code, as added by this Act, not later than the 90th day after the date the district receives the notice.

SECTION 5. Makes application of Section 403.0242(c), Government Code, prospective to April 2, 2018.

SECTION 6. Effective date: September 1, 2017.