Bill Text: TX HB111 | 2017 | 85th Legislature 1st Special Session | Comm Sub


Bill Title: Relating to general obligation bonds issued by political subdivisions.

Spectrum: Moderate Partisan Bill (Republican 4-1)

Status: (Introduced - Dead) 2017-07-26 - Committee report sent to Calendars [HB111 Detail]

Download: Texas-2017-HB111-Comm_Sub.html
  85S10020 TJB-D
 
  By: Murphy, Shine, Parker, Raymond, H.B. No. 111
      Bonnen of Brazoria, et al.
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to general obligation bonds issued by political
  subdivisions.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 4.003(f), Election Code, is amended to
  read as follows:
         (f)  A debt obligation election order required under Section
  3.009 shall be posted:
               (1)  on election day and during early voting by
  personal appearance, in a prominent location at each polling place;
               (2)  not later than the 21st day before the election, in
  three public places in the boundaries of the political subdivision
  holding the election; and
               (3)  during the 21 days before the election, on the
  political subdivision's Internet website, prominently and together
  with the notice of the election, [and] the contents of the
  proposition, and any sample ballot prepared for the election, if
  the political subdivision maintains an Internet website.
         SECTION 2.  Section 85.062, Election Code, is amended by
  adding Subsection (h) to read as follows:
         (h)  In an election at which a political subdivision submits
  a proposition to the voters to approve the issuance of general
  obligation bonds, the entity that establishes early voting polling
  places under this section may not establish the polling places with
  the intent to affect the outcome of the election.
         SECTION 3.  Subtitle C, Title 9, Government Code, is amended
  by adding Chapter 1253 to read as follows:
  CHAPTER 1253. GENERAL OBLIGATION BONDS ISSUED BY POLITICAL
  SUBDIVISIONS
         Sec. 1253.001.  DEFINITION. In this chapter, "political
  subdivision" means a county, municipality, school district, junior
  college district, other special district, or other subdivision of
  state government.
         Sec. 1253.002.  LIMITATION ON AUTHORITY TO ISSUE GENERAL
  OBLIGATION BONDS. (a) In this section, "improvement" and "personal
  property" have the meanings assigned by Section 1.04, Tax Code.
         (b)  Notwithstanding any other provision of law, a political
  subdivision may not issue general obligation bonds to purchase,
  improve, or construct improvements or to purchase personal property
  if the weighted average maturity of the issue of bonds to finance
  the improvements or personal property exceeds 120 percent of the
  reasonably expected weighted average economic life of the
  improvements or personal property financed with the issue of bonds.
         Sec. 1253.003.  USE OF UNSPENT GENERAL OBLIGATION BOND
  PROCEEDS. (a) A political subdivision may use the unspent proceeds
  of issued general obligation bonds only:
               (1)  for the specific purposes for which the bonds were
  authorized;
               (2)  to retire the bonds; or
               (3)  for a purpose other than the specific purposes for
  which the bonds were authorized if:
                     (A)  the specific purposes are accomplished or
  abandoned; and
                     (B)  a majority of the votes cast in an election
  held in the political subdivision approve the use of the proceeds
  for the proposed purpose.
         (b)  The election order and the notice of election for an
  election described by Subsection (a)(3)(B) must state the proposed
  purpose for which the bond proceeds are to be used.
         (c)  A political subdivision must hold an election described
  by Subsection (a)(3)(B) in the same manner as an election to issue
  bonds in the political subdivision.
         SECTION 4.  Chapter 1332, Government Code, is repealed.
         SECTION 5.  Section 1253.002, Government Code, as added by
  this Act, applies only to a general obligation bond authorized to be
  issued at an election held on or after the effective date of this
  Act.
         SECTION 6.  This Act takes effect December 1, 2017.
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