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A BILL TO BE ENTITLED
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AN ACT
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relating to the notice required before the issuance of certain debt |
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obligations by political subdivisions. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 1251, Government Code, is |
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amended to read as follows: |
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(b) A political subdivision with at least 250 registered |
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voters on the date the governing body of the political subdivision |
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adopts the debt obligation election order must prepare a voter |
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information document for each proposition to be voted on at the |
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election. The political subdivision shall post the voter |
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information document in the same manner as a debt obligation |
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election order is required to be posted under Section 4.003(f), |
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Election Code, and may include the voter information document in |
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the debt obligation election order. The voter information document |
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must distinctly state: |
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(2) the following information formatted as a table in |
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both the aggregate and per student capita: |
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(A) the principal of the debt obligations to be |
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authorized; |
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(B) the estimated interest for the debt |
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obligations to be authorized; |
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(C) the estimated combined principal and |
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interest required to pay on time and in full the debt obligations to |
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be authorized; and |
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(D) as of the date the political subdivision |
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adopts the debt obligation election order: |
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(i) the principal of all outstanding debt |
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obligations of the political subdivision; |
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(ii) the estimated remaining interest on |
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all outstanding debt obligations of the political subdivision, |
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which may be based on the political subdivision's expectations |
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relative to the interest due on any variable rate debt obligations; |
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and |
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(iii) the estimated combined principal and |
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interest required to pay on time and in full all outstanding debt |
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obligations of the political subdivision, which may be based on the |
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political subdivision's expectations relative to the interest due |
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on any variable rate debt obligations; |
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(3) the estimated maximum annual increase in the |
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amount of taxes that would be imposed on a residence homestead in |
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the political subdivision with an appraised value equal to the |
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average taxable value in the jurisdiction, as determined by the |
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county appraisal district,of $100,000 to repay the debt |
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obligations to be authorized, if approved, based upon assumptions |
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made by the governing body of the political subdivision; and |
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(c) The governing body of the political subdivision shall |
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identify in the voter information document the major assumptions |
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and any underlying data used to develop the tax impact estimatemade |
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in connection with the statement required by Subsection (b)(3), |
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including: |
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(1) the amortization of the political subdivision's |
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debt obligations, including outstanding debt obligations and the |
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proposed debt obligations; |
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(2) changes in estimated future appraised values |
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within the political subdivision; and |
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(3) the assumed interest rate on the proposed debt |
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obligations. |
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(d) A political subdivision that maintains an Internet |
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website shall provide the information described by Subsection (b) |
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on its website's homepage or bond election information page if it |
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has one,website in an easily accessible manner beginning not later |
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than the 21st day before election day and ending on the day after |
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the date of the debt obligation election. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2023. |