Bill Text: TX SB1821 | 2017-2018 | 85th Legislature | Introduced
Bill Title: Relating to ballot propositions authorizing certain political subdivisions to issue bonds.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2017-03-23 - Referred to Intergovernmental Relations [SB1821 Detail]
Download: Texas-2017-SB1821-Introduced.html
85R1275 TJB-D | ||
By: Burton | S.B. No. 1821 |
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relating to ballot propositions authorizing certain political | ||
subdivisions to issue bonds. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 1251, Government Code, is amended by | ||
designating Sections 1251.001, 1251.002, 1251.003, 1251.004, | ||
1251.005, and 1251.006 as Subchapter A and adding a subchapter | ||
heading to read as follows: | ||
SUBCHAPTER A. BOND ELECTION REQUIREMENTS FOR COUNTIES AND | ||
MUNICIPALITIES | ||
SECTION 2. Chapter 1251, Government Code, is amended by | ||
adding Subchapter B to read as follows: | ||
SUBCHAPTER B. BOND ELECTION BALLOTS FOR CERTAIN POLITICAL | ||
SUBDIVISIONS | ||
Sec. 1251.051. DEFINITIONS. In this subchapter: | ||
(1) "Capital appreciation bond" means a bond that | ||
accrues and compounds interest from its date of delivery, the | ||
interest on which by its terms is payable only on maturity or prior | ||
redemption. | ||
(2) "Political subdivision" means a county, | ||
municipality, or school district. | ||
Sec. 1251.052. CONTENTS OF BALLOT PROPOSITION. (a) The | ||
proposition submitted for an election to authorize a political | ||
subdivision to issue bonds supported by property taxes must: | ||
(1) distinctly state the projected annual increase in | ||
property taxes attributable to the bonds to be issued that a | ||
homeowner of an average-priced home within the political | ||
subdivision may be required to pay; and | ||
(2) if the bonds to be issued may be of a type that | ||
accrue and defer interest costs, such as capital appreciation | ||
bonds: | ||
(A) include a conspicuous statement that the | ||
interest costs of the bonds continue to accrue but are deferred to a | ||
later date; and | ||
(B) distinctly state the range of the projected | ||
tax impact on property taxes described by Subdivision (1) from the | ||
date the bonds are issued until the date the bonds mature. | ||
(b) The requirements for a proposition prescribed by this | ||
section are in addition to any other requirements prescribed by | ||
law. To the extent of a conflict between this section and Section | ||
52.072, Election Code, this section controls. | ||
(c) A political subdivision must determine a projection | ||
required by Subsection (a) in the manner prescribed by comptroller | ||
rule. | ||
Sec. 1251.053. COMPTROLLER RULES. The comptroller shall | ||
adopt rules that prescribe the manner by which a political | ||
subdivision must determine a projection required by Section | ||
1251.052. | ||
SECTION 3. (a) Section 1251.052, Government Code, as added | ||
by this Act, applies only to a bond election ordered on or after | ||
January 1, 2018. A bond election ordered before January 1, 2018, is | ||
governed by the law in effect when the bond election was ordered, | ||
and the former law is continued in effect for that purpose. | ||
(b) Not later than November 1, 2017, the comptroller of | ||
public accounts shall adopt the rules required by Section 1251.053, | ||
Government Code, as added by this Act. | ||
SECTION 4. This Act takes effect September 1, 2017. |