| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to ballot propositions authorizing certain political |
|
|
subdivisions to issue 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 subchapter |
|
|
heading to read as follows: |
|
|
SUBCHAPTER A. BOND ELECTION REQUIREMENTS FOR COUNTIES AND |
|
|
MUNICIPALITIES |
|
|
SECTION 2. Chapter 1251, Government Code, is amended by |
|
|
adding Subchapter B to read as follows: |
|
|
SUBCHAPTER B. BOND ELECTION BALLOTS FOR CERTAIN POLITICAL |
|
|
SUBDIVISIONS |
|
|
Sec. 1251.051. DEFINITIONS. In this subchapter: |
|
|
(1) "Capital appreciation bond" means a bond that |
|
|
accrues and compounds interest from its date of delivery, the |
|
|
interest on which by its terms is payable only on maturity or prior |
|
|
redemption. |
|
|
(2) "Political subdivision" means a county, |
|
|
municipality, or school district. |
|
|
Sec. 1251.052. CONTENTS OF BALLOT PROPOSITION. (a) The |
|
|
proposition submitted for an election to authorize a political |
|
|
subdivision to issue bonds supported by property taxes must: |
|
|
(1) distinctly state the projected annual increase in |
|
|
property taxes attributable to the bonds to be issued that a |
|
|
homeowner of an average-priced home within the political |
|
|
subdivision may be required to pay; and |
|
|
(2) if the bonds to be issued may be of a type that |
|
|
accrue and defer interest costs, such as capital appreciation |
|
|
bonds: |
|
|
(A) include a conspicuous statement that the |
|
|
interest costs of the bonds continue to accrue but are deferred to a |
|
|
later date; and |
|
|
(B) distinctly state the range of the projected |
|
|
tax impact on property taxes described by Subdivision (1) from the |
|
|
date the bonds are issued until the date the bonds mature. |
|
|
(b) The requirements for a proposition prescribed by this |
|
|
section are in addition to any other requirements prescribed by |
|
|
law. To the extent of a conflict between this section and Section |
|
|
52.072, Election Code, this section controls. |
|
|
(c) A political subdivision must determine a projection |
|
|
required by Subsection (a) in the manner prescribed by comptroller |
|
|
rule. |
|
|
Sec. 1251.053. COMPTROLLER RULES. The comptroller shall |
|
|
adopt rules that prescribe the manner by which a political |
|
|
subdivision must determine a projection required by Section |
|
|
1251.052. |
|
|
SECTION 3. (a) Section 1251.052, Government Code, as added |
|
|
by this Act, applies only to a bond election ordered on or after |
|
|
January 1, 2018. A bond election ordered before January 1, 2018, 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 November 1, 2017, the comptroller of |
|
|
public accounts shall adopt the rules required by Section 1251.053, |
|
|
Government Code, as added by this Act. |
|
|
SECTION 4. This Act takes effect September 1, 2017. |