The text as introduced · 841 words
By: Middleton
S.B. No. 414
A BILL TO BE ENTITLED
AN ACT
relating to the text of ballot propositions for bond elections.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. 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 for which the debt obligations are to be authorized;
(2) the total principal amount of the debt obligations
to be authorized; [ and ]
(3) the estimated interest for the debt obligations to
be authorized;
(4) the estimated combined principal and interest
required to pay on time and in full to maturity the debt obligations
to be authorized; and
(5) 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 2. The changes in law made by this Act apply only to
an election ordered on or after the effective date of this Act.
SECTION 3. This Act takes effect September 1, 2025.
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