Schatzline Bill’s Bond Ballot Rules Start After The 2026 Election

The text as introduced · 563 words

89R14076 DNC-D

By: Schatzline
H.B. No. 4965

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. Sections 1251.052(a) and (b), Government Code,

as added by Chapter 728 (H.B. 477), Acts of the 86th Legislature,

Regular Session, 2019, are amended to read as follows:

(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 purposes for which

the debt obligations are to be authorized;

(2) the total principal amount of the debt obligations

to be authorized; [ and ]

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

interest on the debt obligations will be imposed ; and

(4) the ad valorem debt service tax rate expressed in

dollars per $100 valuation of all taxable property in the political

subdivision, stated as:

(A) the existing rate;

(B) the estimated rate if the bonds are issued;

and

(C) the estimated percentage increase in the rate

if the bonds are issued .

(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 property [ 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.

SECTION 2. Sections 1251.052(a) and (b), Government Code,

as amended by this Act, apply only to a bond election ordered on or

after January 1, 2027.

SECTION 3. This Act takes effect September 1, 2025.