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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 Section 1231.024 to read 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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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. |