Bill Text: TX SB460 | 2017-2018 | 85th Legislature | Comm Sub

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

Sponsorship: Slight Partisan Bill (Republican 3-1)

Status: (Engrossed - Dead) 2017-05-08 - Committee report sent to Calendars [SB460 Detail]

Download: Texas-2017-SB460-Comm_Sub.html

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By: Lucio, et al. S.B. No. 460
(Murphy)

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 September 1, 2017.