Bill Text: TX HB4024 | 2023-2024 | 88th Legislature | Introduced


Bill Title: Relating to the notice required before the issuance of certain debt obligations by political subdivisions.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2023-03-20 - Referred to Pensions, Investments & Financial Services [HB4024 Detail]

Download: Texas-2023-HB4024-Introduced.html
 
 
  By: Harrison H.B. No. 4024
 
 
 
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 estimatemade
  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, 2023.
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