Lowe’s bill requiring two-thirds voter approval for bonds

The text as introduced · 1,002 words

89R11510 MPF-D

By: Lowe
H.B. No. 3262

A BILL TO BE ENTITLED

AN ACT

relating to an election to approve the issuance of bonds or other

debt.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. The heading to Chapter 2, Election Code, is

amended to read as follows:

CHAPTER 2. VOTE REQUIRED FOR ELECTION [ TO OFFICE ]

SECTION 2. Chapter 2, Election Code, is amended by adding

Subchapter E to read as follows:

SUBCHAPTER E. SUPERMAJORITY REQUIREMENT FOR CERTAIN ELECTIONS

Sec. 2.101. CERTAIN POLITICAL SUBDIVISION ELECTIONS.

Notwithstanding any other law, an election held by a political

subdivision to authorize the issuance of bonds or other debt does

not authorize the issuance of bonds or other debt unless at least

two-thirds of the voters voting on the proposition authorizing the

issuance of bonds or other debt vote in favor of the proposition.

SECTION 3. Subchapter B, Chapter 1251, Government Code, as

added by Chapters 728 (H.B. 477) and 505 (S.B. 30), Acts of the 86th

Legislature, Regular Session, 2019, is reenacted and amended to

read as follows:

SUBCHAPTER B. BALLOT FOR DEBT OBLIGATIONS ISSUED BY POLITICAL

SUBDIVISION

Sec. 1251.051. DEFINITIONS. In this subchapter:

(1) "Debt obligation" means a public security, as

defined by Section 1201.002, secured by and payable from ad valorem

taxes. The term does not include public securities that are

designated as self-supporting by the political subdivision issuing

the securities.

(2) "Debt obligation election order" means the order,

ordinance, or resolution ordering an election to authorize the

issuance of debt obligations.

(3) "Political subdivision" means a municipality,

county, school district, or special taxing district.

Sec. 1251.052. FORM. (a) The ballot for a measure seeking

voter approval of the issuance of debt obligations by a political

subdivision shall specifically state:

(1) a general description of the single specific

purpose [ purposes ] for which the debt obligations are to be

authorized;

(2) the total principal amount of the debt obligations

to be authorized; [ and ]

(3) as of the date the political subdivision adopts

the debt obligation election order, the estimated combined

principal and interest required to pay on time and in full all

outstanding debt obligations of the political subdivision, which

may be based on the political subdivision's expectations relative

to the interest due on any variable rate debt obligations; and

(4) that taxes sufficient to pay the principal of and

interest on the debt obligations will be imposed.

(a-1) Each single specific purpose for which debt

obligations requiring voter approval are to be issued must be

printed on the ballot as a separate proposition. A proposition may

include as a specific purpose one or more structures or

improvements serving the substantially same purpose and may include

related improvements and equipment necessary to accomplish the

specific purpose.

(b) A political subdivision with at least 250 registered

voters on the date the governing body of the political subdivision

adopts the debt obligation election order must prepare a voter

information document for each proposition to be voted on at the

election. The political subdivision shall post the voter

information document in the same manner as a debt obligation

election order is required to be posted under Section 4.003(f),

Election Code, and may include the voter information document in

the debt obligation election order. The voter information document

must distinctly state:

(1) the language that will appear on the ballot;

(2) the following information formatted as a table:

(A) the principal of the debt obligations to be

authorized;

(B) the estimated interest for the debt

obligations to be authorized;

(C) the estimated combined principal and

interest required to pay on time and in full the debt obligations to

be authorized; and

(D) as of the date the political subdivision

adopts the debt obligation election order:

(i) the principal of all outstanding debt

obligations of the political subdivision;

(ii) the estimated remaining interest on

all outstanding debt obligations of the political subdivision,

which may be based on the political subdivision's expectations

relative to the interest due on any variable rate debt obligations;

and

(iii) the estimated combined principal and

interest required to pay on time and in full all outstanding debt

obligations of the political subdivision, which may be based on the

political subdivision's expectations relative to the interest due

on any variable rate debt obligations;

(3) the estimated maximum annual increase in the

amount of taxes that would be imposed on a residence homestead in

the political subdivision with an appraised value of $100,000 to

repay the debt obligations to be authorized, if approved, based

upon assumptions made by the governing body of the political

subdivision; and

(4) any other information that the political

subdivision considers relevant or necessary to explain the

information required by this subsection.

(c) The governing body of the political subdivision shall

identify in the voter information document the major assumptions

made in connection with the statement required by Subsection

(b)(3), including:

(1) the amortization of the political subdivision's

debt obligations, including outstanding debt obligations and the

proposed debt obligations;

(2) changes in estimated future appraised values

within the political subdivision; and

(3) the assumed interest rate on the proposed debt

obligations.

(d) A political subdivision that maintains an Internet

website shall provide the information described by Subsection (b)

on its website in an easily accessible manner beginning not later

than the 21st day before election day and ending on the day after

the date of the debt obligation election.

(e) This section provides the ballot proposition language

for an election to authorize the issuance of debt obligations by a

political subdivision. To the extent of a conflict between this

section and another law, this section controls.

SECTION 4. The changes in law made by this Act apply only to

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.

SECTION 5. This Act takes effect September 1, 2025.