bill changing the voter information document before bond elections

The text as introduced · 564 words

By: Harrison
H.B. No. 5334

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. Subchapter B, Chapter 1251, Government Code, is

amended to read as follows:

(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:

(2) the following information formatted as a table in

both the aggregate and per student capita:

(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 equal to the

average taxable value in the jurisdiction, as determined by the

county appraisal district, 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

(c) The governing body of the political subdivision shall

identify in the voter information document the major assumptions

and any underlying data used to develop the tax impact estimate 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's homepage or bond election information page if it

has one, 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.

SECTION 2. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.