85R522 TJB-D     By: Burton S.B. No. 245       A BILL TO BE ENTITLED   AN ACT   relating to voter information provided by political subdivisions   before an election to authorize the issuance of 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 heading to   Subchapter A to read as follows:   SUBCHAPTER A.  BOND MATTERS AFFECTING COUNTIES AND MUNICIPALITIES          SECTION 2.  Chapter 1251, Government Code, is amended by   adding Subchapter B to read as follows:   SUBCHAPTER B.  BOND MATTERS AFFECTING MORE THAN ONE TYPE OF   POLITICAL SUBDIVISION          Sec. 1251.051.  DEFINITIONS. In this subchapter:                (1)  "Debt obligation" means an issued public security,   as defined by Section 1201.002, secured by property taxes.                (2)  "Political subdivision" means a county,   municipality, school district, junior college district, other   special district, or other subdivision of state government.                (3)  "Secured self-supporting debt obligation" means a   debt obligation secured by property taxes but payable from revenue   from another source.          Sec. 1251.052.  PUBLIC HEARING. (a) Before a political   subdivision may hold an election to authorize the issuance of   bonds, the governing body of the political subdivision must conduct   a public hearing at which persons interested in the issuance of the   bonds are given the opportunity to be heard.          (b)  The governing body must hold the hearing not earlier   than the day the governing body adopts the election order or later   than the first day before the date the period for early voting by   personal appearance begins for the election, as determined under   Section 85.001, Election Code.          (c)  Not earlier than the 30th day or later than the 15th day   before the date of the hearing, the political subdivision must:                (1)  provide notice of the hearing and each voter   information document described by Section 1251.053 by:                      (A)  publication in at least one newspaper of   general circulation in the county in which the political   subdivision is wholly or primarily located;                      (B)  posting on:                            (i)  the political subdivision's Internet   website; and                            (ii)  each other Internet website for which   the political subdivision controls the content of the posting,   including a social media site; and                      (C)  inclusion in the political subdivision's   newsletter, circular, or similar document designed to provide   information to the residents of the political subdivision,   regardless of how delivered, if the political subdivision   periodically delivers such a document; and                (2)  send by first-class mail to each owner of taxable   property located in the political subdivision the voter information   document described by Section 1251.053 and a cover letter that   includes:                      (A)  the date of the hearing;                      (B)  the purpose of the hearing;                      (C)  the language that will appear on the ballot;   and                      (D)  the estimated increase in the property tax   debt levy of the political subdivision for all taxable property   owned by the property owner and located in the political   subdivision.          (d)  A political subdivision must determine the estimate   required by Subsection (c)(2)(D) in the manner prescribed by   comptroller rule.          (e)  The Texas Ethics Commission shall provide guidelines   for political subdivisions regarding the manner in which the   hearing is conducted and additional information is provided on the   form prescribed by the secretary of state under Section 1251.053(f)   without violating electioneering and political advertising laws,   including Section 255.003, Election Code, and Section 11.169,   Education Code.          Sec. 1251.053.  VOTER INFORMATION DOCUMENT. (a) A   political subdivision must prepare a separate voter information   document for each proposition to be discussed at a hearing required   by Section 1251.052.          (b)  Each voter information document must distinctly state:                (1)  the language that will appear on the ballot;                (2)  the purpose for which the bonds are to be   authorized;                (3)  the maturity date of the bonds to be authorized or   that the bonds may be issued to mature over a specified number of   years not to exceed the maximum number of years authorized by law;                (4)  that taxes sufficient to pay the annual principal   of and interest on the bonds may be imposed;                (5)  the maximum rate of interest for the bonds to be   authorized;                (6)  the following information formatted as a table:                      (A)  the property tax debt rate expressed in   dollars per $100 valuation of all taxable property in the political   subdivision, stated as:                            (i)  the existing rate;                            (ii)  the estimated rate if the bonds are   authorized; and                            (iii)  the estimated increase in the rate if   the bonds are authorized; and                      (B)  the amount expressed in dollars of the   property tax debt levy of the political subdivision per residence   with a taxable value of $100,000, stated as:                            (i)  the existing levy;                            (ii)  the estimated levy if the bonds are   authorized; and                            (iii)  the estimated increase in the levy if   the bonds are authorized;                (7)  the following information formatted as a second   table and stated as a total amount and, if the political subdivision   is a municipality, county, or school district, as a per capita   amount:                      (A)  the principal of the bonds to be authorized;                      (B)  the estimated interest for the bonds to be   authorized;                      (C)  the estimated combined principal and   interest required to pay on time and in full the bonds to be   authorized; and                      (D)  as of the date the political subdivision   adopts the bond election order:                            (i)  the principal of all outstanding debt   obligations of the political subdivision secured by and payable   from property taxes;                            (ii)  the estimated remaining interest of   all outstanding debt obligations of the political subdivision   secured by and payable from property taxes; and                            (iii)  the estimated combined principal and   interest required to pay on time and in full all outstanding debt   obligations of the political subdivision secured by and payable   from property taxes;                (8)  the following information as of the date the   political subdivision adopts the bond election order, formatted as   a third table:                      (A)  the principal of all outstanding secured   self-supporting debt obligations of the political subdivision;                      (B)  the estimated remaining interest of all   outstanding secured self-supporting debt obligations of the   political subdivision; and                      (C)  the estimated combined principal and   interest required to pay on time and in full all outstanding secured   self-supporting debt obligations of the political subdivision; and                (9)  any other information that the political   subdivision considers relevant or necessary to explain the values   required by Subdivisions (5)-(8), including:                      (A)  an amount required by Subdivision (7) stated   as a per capita amount if the political subdivision is not required   to provide the amount under Subdivision (7);                      (B)  an explanation of the payment sources for the   different types of debt; and                      (C)  a value for the following expressed as a good   faith projection as of the last day of the maximum term of the bonds   to be authorized:                            (i)  a per capita amount required by   Subdivision (7);                            (ii)  an estimated rate required by   Subdivision (6)(A)(ii); and                            (iii)  an estimated levy required by   Subdivision (6)(B)(ii).          (c)  A political subdivision must determine each estimate or   projection required or authorized by Subsection (b) in the manner   prescribed by comptroller rule.          (d)  Each voter information document must be printed:                (1)  on not more than two pages that are not wider than   8-1/2 inches and not longer than 14 inches;                (2)  in type not smaller than 12-point type; and                (3)  in the form prescribed by the secretary of state.          (e)  The governing body of the political subdivision must   make a copy of each voter information document available to each   individual attending the hearing.          (f)  The secretary of state by rule shall prescribe the form   of a voter information document.          (g)  A good faith estimate or projection required or   authorized by Subsection (b) determined in the manner prescribed by   comptroller rule does not constitute a breach of contract with the   voters solely because the estimate or projection is later   determined to be incorrect.          Sec. 1251.054.  ONLINE SAMPLE BALLOT. A sample of the ballot   printed for an election to authorize a political subdivision to   issue bonds must be posted on the political subdivision's Internet   website as soon as practicable after the official ballots have been   prepared and must remain posted until the day following the   election.          Sec. 1251.055.  INTERNET WEBSITE. A political subdivision   shall maintain an Internet website to comply with this subchapter.          Sec. 1251.056.  COMPTROLLER RULES. The comptroller shall   adopt rules to implement this subchapter, including rules that   prescribe the manner by which a political subdivision must   determine each estimate or projection required or authorized by   this subchapter.          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 1251.056,   Government Code, as added by this Act.          (c)  Not later than November 1, 2017, the Texas Ethics   Commission shall make available on the Texas Ethics Commission's   Internet website the guidelines required by Section 1251.052(e),   Government Code, as added by this Act.          (d)  Not later than November 1, 2017, the secretary of state   shall make available on the secretary of state's Internet website a   form of the voter information document described by Section   1251.053(b), Government Code, as added by this Act.          SECTION 4.  This Act takes effect September 1, 2017.