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A BILL TO BE ENTITLED
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AN ACT
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relating to fiscal transparency for bonds issued by local |
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governmental entities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1202.008(c), Government Code, is amended |
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to read as follows: |
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(c) The attorney general shall send the information to the |
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Bond Review Board for inclusion in the reports required by Sections |
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[board's report of debt statistics under Section] 1231.062 and |
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1231.065. |
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SECTION 2. Subchapter B, Chapter 1231, Government Code, is |
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amended by adding Sections 1231.024, 1231.025, and 1231.026 to read |
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as follows: |
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Sec. 1231.024. SEARCHABLE DATABASE FOR LOCAL BOND |
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OBLIGATIONS. (a) The board shall develop and maintain on the |
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board's Internet website a publicly accessible and searchable |
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database that provides, in a table format that is easy to read and |
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understand, information on each bond proposed or issued by a local |
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government. |
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(b) The database must include for each proposed and issued |
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bond listed in the database the: |
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(1) amount of the principal of the bond; |
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(2) the estimated amount of interest on the bond; and |
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(3) the estimated total amount to pay the principal of |
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and interest on the bond. |
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Sec. 1231.025. LOCAL BOND ELECTION INFORMATION. (a) Not |
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later than the 20th day before election day for an election to |
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authorize a local government to issue bonds, the local government |
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shall submit a report to the board that includes: |
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(1) the date of the election; |
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(2) the proposition number for each bond proposition; |
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(3) the total estimated cost of the issuance of each |
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proposed bond; |
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(4) a description of the purpose of each bond |
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proposition; and |
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(5) any other information the board determines |
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necessary. |
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(b) Not later than the 20th day after election day for an |
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election to authorize a local government to issue bonds, the local |
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government shall submit a report to the board that includes: |
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(1) the total number of votes cast for each bond |
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proposition; |
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(2) the total number of votes in support of the bond |
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proposition; |
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(3) the total number of votes against the bond |
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proposition; |
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(4) any updated information different from the |
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information provided to the board under Subsection (a), if |
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applicable; and |
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(5) any other information the board determines |
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necessary. |
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(c) The board shall publish a report on the results of an |
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election to authorize a local government to issue bonds on the |
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board's Internet website. |
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Sec. 1231.026. ANNUAL LOCAL UNISSUED SECURITIES REPORT. |
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(a) Not later than September 30 of each year, a local government |
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with voter-approved but unissued bonds shall submit a report to the |
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board regarding the amount of voter-approved but unissued bonds |
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authorized by the local government during the most recent fiscal |
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year. The report must include: |
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(1) the total amount of voter-approved but unissued |
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bonds authorized by the local government; |
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(2) the specific statute or law authorizing the |
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issuance of the bonds; |
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(3) the number of the propositions that authorized the |
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issuance of the bonds, as applicable; |
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(4) the estimated cost of the issuance of the bonds on |
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the bond proposition, as applicable; and |
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(5) any other information the board determines |
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necessary. |
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(b) The board may adopt rules to implement this section. |
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SECTION 3. Subchapter D, Chapter 1231, Government Code, is |
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amended by adding Section 1231.065 to read as follows: |
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Sec. 1231.065. BIENNIAL REPORT ON REPAYMENT OF BONDS ISSUED |
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BY LOCAL GOVERNMENTS. (a) Not later than December 31 of each |
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even-numbered year, the board shall prepare and submit to each |
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standing committee of the legislature with primary jurisdiction |
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over matters relating to finance a report on the repayment status of |
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each voter-approved bond issued by a local government. |
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(b) The report required by Subsection (a) must include: |
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(1) for each voter-approved bond issued by a local |
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government: |
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(A) the estimated total amount required to pay |
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the principal of and interest on the bond on the date the bond was |
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issued; and |
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(B) the total amount of principal and interest |
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paid by the local government on the bond; and |
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(2) if a local government requires an increase in the |
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local government's tax rate in order to pay the principal of and |
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interest on bonds issued by the local government, the amount of the |
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required increase. |
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(c) The board may adopt any rules necessary to implement |
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this section. |
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SECTION 4. As soon as practicable but not later than |
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September 1, 2026, the Bond Review Board shall establish the |
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database as required by Section 1231.024, Government Code, as added |
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by this Act. |
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SECTION 5. This Act takes effect September 1, 2025. |