85R3002 ATP-D     By: Lucio S.B. No. 461       A BILL TO BE ENTITLED   AN ACT   relating to the notice required before the issuance of certain debt   obligations by political subdivisions.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 52.072(e), Election Code, is amended to   read as follows:          (e)  In addition to any other requirement imposed by law for   a proposition, including a provision prescribing the proposition   language, a proposition submitted to the voters for approval of   [the issuance of bonds or] the imposition, increase, or reduction   of a tax shall specifically state, as applicable:                (1)  [with respect to a proposition seeking voter   approval of the issuance of bonds:                      [(A)     the total principal amount of the bonds to   be authorized, if approved; and                      [(B)     a general description of the purposes for   which the bonds are to be authorized, if approved;                [(2)]  with respect to a proposition that only seeks   voter approval of the imposition or increase of a tax, the amount of   or maximum tax rate of the tax or tax increase for which approval is   sought; or                (2) [(3)]  with respect to a proposition that only   seeks voter approval of the reduction of a tax, the amount of tax   rate reduction or the tax rate for which approval is sought.          SECTION 2.  Chapter 1251, Government Code, is amended by   designating Sections 1251.001, 1251.003, 1251.004, 1251.005, and   1251.006 as Subchapter A and adding a subchapter heading to read as   follows:   SUBCHAPTER A. PROVISIONS RELATING GENERALLY TO BOND ELECTIONS          SECTION 3.  Chapter 1251, Government Code, is amended by   adding Subchapter B to read as follows:   SUBCHAPTER B. BALLOT PROPOSITION FOR BONDS ISSUED BY POLITICAL   SUBDIVISION           Sec. 1251.051.  APPLICABILITY. This subchapter applies to   bonds issued by any political subdivision, including a   municipality, county, school district, or special taxing district.          Sec. 1251.052.  FORM. (a) A proposition seeking voter   approval of the issuance of bonds shall specifically state:                (1)  a general description of the purposes for which   the bonds are to be authorized;                (2)  the total principal amount of the bonds;                (3)  the rate of interest;                (4)  the imposition of taxes sufficient to pay the   annual interest on the bonds and to provide a sinking fund to redeem   the bonds at maturity; and                (5)  the maturity date of the bonds or that the bonds   may be issued to mature serially over a specified number of years   not to exceed 40.          (b)  In addition to the requirements of Subsection (a) and   any other requirement imposed by law for a proposition, including a   provision prescribing the proposition language, a proposition   submitted to the voters for approval of the issuance of bonds shall   specifically state:                (1)  the total amount of the political subdivision's   debt secured by ad valorem taxes currently outstanding;                (2)  the total amount of debt secured by ad valorem   taxes, including principal and interest, to be authorized;                (3)  the amount of taxes required to be imposed on a   homestead with a value of $100,000 in the political subdivision, as   computed by the appraisal district, to repay the political   subdivision's current debt obligations secured by ad valorem taxes;                (4)  the increase in the amount of taxes that would be   imposed on a homestead with a value of $100,000 in the political   subdivision, as computed by the appraisal district, to repay the   bonds to be authorized, if approved; and                (5)  the maturity date of the bonds to be authorized.          (c)  A political subdivision that maintains a website shall   provide the information described by Subsection (b) on its website   in an easily accessible manner.          SECTION 4.  Section 271.049, Local Government Code, is   amended by amending Subsections (a) and (b) and adding Subsection   (e) to read as follows:          (a)  Regardless of the sources of payment of certificates,   certificates may not be issued unless the issuer publishes notice   of its intention to issue the certificates.  The notice must be   published:                (1)  once a week for two consecutive weeks in a   newspaper, as defined by Subchapter C, Chapter 2051, Government   Code, that is of general circulation in the area of the issuer, with   the date of the first publication to be before the 45th [30th] day   before the date tentatively set for the passage of the order or   ordinance authorizing the issuance of the certificates; and                (2)  if the issuer maintains a website, continuously on   the issuer's website for at least 45 days before the date   tentatively set for the passage of the order or ordinance   authorizing the issuance of the certificates.          (b)  The notice must state:                (1)  the time and place tentatively set for the passage   of the order or ordinance authorizing the issuance of the   certificates;                (2)  the [maximum amount and] purpose of the   certificates to be authorized; [and]                (3)  the manner in which the certificates will be paid   for, whether by taxes, revenues, or a combination of the two;                (4)  the following, stated as a total amount and as a   per capita amount:                      (A)  the then-current principal of all   outstanding debt obligations of the issuer;                      (B)  the then-current combined principal and   interest required to pay all outstanding debt obligations of the   issuer on time and in full;                      (C)  the principal of the certificates to be   authorized; and                      (D)  the estimated combined principal and   interest required to pay the certificates to be authorized on time   and in full;                (5)  the estimated rate of interest for the   certificates to be authorized; and                (6)  the maturity date of the certificates to be   authorized.          (e)  In this section, "debt obligation" means an issued   public security, as defined by Section 1201.002, Government Code.          SECTION 5.  Section 1251.002, Government Code, is repealed.          SECTION 6.  (a)  The changes in law made by this Act to   Chapter 1251, Government Code, apply only to a ballot for an   election ordered on or after the effective date of this Act. An   election ordered before the effective date of this Act is governed   by the law in effect when the election was ordered, and the former   law is continued in effect for that purpose.          (b)  The changes in law made by this Act to Section 271.049,   Local Government Code, apply only to a certificate of obligation   for which the first notice of intention to issue the certificate is   made on or after the effective date of this Act. A certificate of   obligation for which the first notice of intention to issue the   certificate is made before the effective date of this Act is   governed by the law in effect when the notice of intention is made,   and the former law is continued in effect for that purpose.          SECTION 7.  This Act takes effect September 1, 2017.