HB 300

By: Alders
  H.B. No. 300
  A BILL TO BE ENTITLED
  AN ACT
  relating to the text of and information that must be included on the
  ballot for debt obligation elections and on a voter information
  document.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 1251, Government Code, as
  added by Chapters 505 (S.B. 30) and 728 (H.B. 477), Acts of the 86th
  Legislature, Regular Session, 2019, is reenacted and amended to
  read as follows:
  SUBCHAPTER B.  BALLOT FOR DEBT OBLIGATIONS ISSUED BY POLITICAL
  SUBDIVISION
         Sec. 1251.051.  DEFINITIONS.  In this subchapter:
               (1)  "Debt obligation" means a public security, as
  defined by Section 1201.002, secured by and payable from ad valorem
  taxes.  The term does not include public securities that are
  designated as self-supporting by the political subdivision issuing
  the securities.
               (2)  "Debt obligation election order" means the order,
  ordinance, or resolution ordering an election to authorize the
  issuance of debt obligations.
               (3)  "Political subdivision" means a municipality,
  county, school district, or special taxing district.
         Sec. 1251.052.  FORM.  (a)  The ballot for a measure seeking
  voter approval of the issuance of debt obligations by a political
  subdivision shall specifically state:
               (1)  a plain language description of the single
  specific purpose for which the debt obligations are to be
  authorized;
               (2)  the estimated combined principal amount and
  interest required to pay on time and in full to maturity [total
  principal amount of] the debt obligations to be authorized; [and]
               (3)  that taxes sufficient to pay the principal of and
  interest on the debt obligations will be imposed; and
               (4)  the estimated maximum annual amount of taxes that
  would be imposed on each $100,000 in taxable value of a residence
  homestead in the political subdivision at the ad valorem tax rate
  necessary to pay on time and in full the principal of and interest
  on the proposed debt obligations.
         (a-1)  Each single specific purpose for which debt
  obligations requiring voter approval are to be issued must be
  printed on the ballot as a separate proposition.  A proposition may
  include as a specific purpose one or more structures or
  improvements serving the substantially same purpose and may include
  related improvements and equipment necessary to accomplish the
  specific purpose.
         (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:
               (1)  the language that will appear on the ballot;
               (2)  the following information formatted as a table:
                     (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 each $100,000 in taxable
  value of a residence homestead in the political subdivision [with
  an appraised value 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
               (4)  any other information that the political
  subdivision considers relevant or necessary to explain the
  information required by this subsection.
         (c)  The governing body of the political subdivision shall
  identify in the voter information document the major assumptions
  made 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 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.
         (e)  This section provides the ballot proposition language
  for an election to authorize the issuance of debt obligations by a
  political subdivision.  To the extent of a conflict between this
  section and another law, this section controls.
         SECTION 2.  The changes in law made by this Act apply only to
  an election ordered on or after the effective date of this Act.
         SECTION 3.  This Act takes effect on the 91st day after the
  last day of the legislative session.