Bill Text: TX SB387 | 2017-2018 | 85th Legislature | Introduced

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Bill Title: Relating to the use of certain unspent bond proceeds and voter approval of certain political subdivision actions, including the issuance of certain bonds and the use of certain unspent bond proceeds.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2017-02-01 - Referred to Intergovernmental Relations [SB387 Detail]

Download: Texas-2017-SB387-Introduced.html

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85R4428 TJB-D
By: Burton S.B. No. 387

A BILL TO BE ENTITLED
AN ACT
relating to the use of certain unspent bond proceeds and voter
approval of certain political subdivision actions, including the
issuance of certain bonds and the use of certain unspent bond
proceeds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 52.072(e), Election Code, is amended to
read as follows:
(e) In addition to any other requirement imposed by law for
a proposition, including a provision prescribing the proposition
language, a proposition submitted to the voters by a political
subdivision for approval of the issuance of bonds or the
imposition, increase, or reduction of a tax shall specifically
state, as applicable:
(1) with respect to a proposition seeking voter
approval of the issuance of bonds:
(A) the total principal amount of the bonds to be
authorized, if approved; and
(B) each specific purpose [a general description
of the purposes] for which the bonds are to be authorized, if
approved;
(2) with respect to a proposition that only seeks
voter approval of the imposition or increase of a tax, the amount of
or maximum tax rate of the tax or tax increase for which approval is
sought; or
(3) with respect to a proposition that only seeks
voter approval of the reduction of a tax, the amount of tax rate
reduction or the tax rate for which approval is sought.
SECTION 2. Subtitle C, Title 9, Government Code, is amended
by adding Chapter 1253 to read as follows:
CHAPTER 1253. USE OF BOND PROCEEDS BY POLITICAL SUBDIVISIONS FOR
OTHER PURPOSES
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. USE OF UNSPENT GENERAL OBLIGATION BOND
PROCEEDS. A political subdivision may use the unspent proceeds of
issued general obligation bonds only:
(1) for the specific purpose for which the bonds were
issued;
(2) to retire the bonds; or
(3) for a purpose other than the specific purpose for
which the bonds were issued if:
(A) the specific purpose is 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.
Sec. 1253.003. ELECTION PROCEDURES. (a) The election
order and the notice of election for an election authorized to be
held under Section 1253.002 must state the proposed purpose for
which the bond proceeds are to be used.
(b) A political subdivision must hold the election in the
same manner as an election to issue bonds in the political
subdivision.
SECTION 3. Chapter 1332, Government Code, is repealed.
SECTION 4. Section 52.072(e), Election Code, as amended by
this Act, applies only to an election ordered on or after the
effective date of this Act. An election ordered before the
effective date of this Act is governed by the law in effect when the
election was ordered.
SECTION 5. This Act takes effect January 1, 2018.