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AN ACT
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relating to the fiscal transparency and accountability of political |
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subdivisions. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 140, Local Government Code, is amended |
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by adding Section 140.008 to read as follows: |
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Sec. 140.008. ANNUAL REPORT OF CERTAIN FINANCIAL |
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INFORMATION. (a) In this section: |
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(1) "Debt obligation" means an issued public security, |
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as defined by Section 1201.002, Government Code. |
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(2) "Political subdivision" means a county, |
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municipality, school district, junior college district, other |
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special district, or other subdivision of state government. |
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(b) A political subdivision shall annually compile and |
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report the following financial information in the manner prescribed |
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by this section: |
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(1) as of the last day of the preceding fiscal year, |
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debt obligation information for the political subdivision that must |
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state: |
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(A) the amount of all authorized debt |
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obligations; |
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(B) the principal of all outstanding debt |
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obligations; |
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(C) the principal of each outstanding debt |
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obligation; |
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(D) the combined principal and interest required |
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to pay all outstanding debt obligations on time and in full; |
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(E) the combined principal and interest required |
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to pay each outstanding debt obligation on time and in full; |
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(F) the amounts required by Paragraphs (A)-(E) |
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limited to authorized and outstanding debt obligations secured by |
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ad valorem taxation, expressed as a total amount and, if the |
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political subdivision is a municipality, county, or school |
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district, as a per capita amount; and |
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(G) the following for each debt obligation: |
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(i) the issued and unissued amount; |
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(ii) the spent and unspent amount; |
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(iii) the maturity date; and |
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(iv) the stated purpose for which the debt |
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obligation was authorized; |
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(2) the current credit rating given by any nationally |
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recognized credit rating organization to debt obligations of the |
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political subdivision; and |
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(3) any other information that the political |
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subdivision considers relevant or necessary to explain the values |
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required by Subdivisions (1)(A)-(F), including: |
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(A) an amount required by Subdivision (1)(F) |
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stated as a per capita amount if the political subdivision is not |
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required to provide the amount under that paragraph; |
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(B) an explanation of the payment sources for the |
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different types of debt; and |
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(C) a projected per capita amount of an amount |
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required by Subdivision (1)(F), as of the last day of the maximum |
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term of the most recent debt obligation issued by the political |
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subdivision. |
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(c) Instead of replicating in the annual report information |
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required by Subsection (b) that is posted separately on the |
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political subdivision's Internet website, the political |
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subdivision may provide in the report a direct link to, or a clear |
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statement describing the location of, the separately posted |
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information. |
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(d) As an alternative to providing an annual report under |
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Subsection (f), a political subdivision may provide to the |
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comptroller the information described by Subsection (b) and any |
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other related information required by the comptroller in the form |
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and in the manner prescribed by the comptroller. The comptroller |
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shall post the information on the comptroller's Internet website. |
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The comptroller may post the information in the format that the |
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comptroller determines appropriate, provided that the information |
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for each political subdivision is easily located by searching the |
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name of the political subdivision on the Internet. If the political |
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subdivision maintains an Internet website, the political |
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subdivision shall provide a link from the website to the location on |
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the comptroller's website where the political subdivision's |
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financial information may be viewed. The comptroller shall adopt |
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rules necessary to implement this subsection. |
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(e) This subsection applies only to a municipality with a |
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population of less than 15,000 or a county with a population of less |
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than 35,000. As an alternative to providing an annual report under |
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Subsection (f), a municipality or county may provide to the |
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comptroller, in the form and in the manner prescribed by the |
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comptroller, a document that includes the information described by |
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Subsection (b). The comptroller shall post the information from |
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the document submitted under this subsection on the comptroller's |
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Internet website on a web page that is easily located by searching |
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the name of the municipality or county on the Internet. If the |
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municipality or county maintains or causes to be maintained an |
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Internet website, the municipality or county shall provide a link |
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from the website to the web page on the comptroller's website where |
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the information may be viewed. The comptroller shall adopt rules |
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necessary to implement this subsection. |
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(f) Except as provided by Subsection (d) or (e), the |
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governing body of a political subdivision shall take action to |
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ensure that: |
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(1) the political subdivision's annual report is made |
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available for inspection by any person and is posted continuously |
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on the political subdivision's Internet website until the political |
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subdivision posts the next annual report; and |
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(2) the contact information for the main office of the |
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political subdivision is continuously posted on the website, |
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including the physical address, the mailing address, the main |
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telephone number, and an e-mail address. |
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(g) Notwithstanding any other provision of this section, a |
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district, as defined by Section 49.001, Water Code, satisfies the |
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requirements of this section if the district: |
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(1) complies with the requirements of Subchapter G, |
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Chapter 49, Water Code, regarding audit reports, affidavits of |
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financial dormancy, and annual financial reports; and |
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(2) submits the financial documents described by |
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Subchapter G, Chapter 49, Water Code, to the comptroller. |
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(h) The comptroller shall post the documents submitted to |
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the comptroller under Subsection (g) on the comptroller's Internet |
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website. The comptroller shall adopt rules necessary to implement |
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this subsection and Subsection (g). |
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SECTION 2. Section 271.047, Local Government Code, is |
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amended by adding Subsection (d) to read as follows: |
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(d) Except as provided by this subsection, the governing |
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body of an issuer may not authorize a certificate to pay a |
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contractual obligation to be incurred if a bond proposition to |
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authorize the issuance of bonds for the same purpose was submitted |
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to the voters during the preceding three years and failed to be |
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approved. A governing body may authorize a certificate that the |
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governing body is otherwise prohibited from authorizing under this |
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subsection: |
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(1) in a case described by Sections 271.056(1)-(3); |
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and |
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(2) to comply with a state or federal law, rule, or |
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regulation if the political subdivision has been officially |
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notified of noncompliance with the law, rule, or regulation. |
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SECTION 3. The requirements to compile and report |
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information under Section 140.008, Local Government Code, as added |
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by this Act, apply only to a fiscal year ending on or after the |
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effective date of this Act. |
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SECTION 4. This Act takes effect January 1, 2016. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 1378 was passed by the House on April |
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23, 2015, by the following vote: Yeas 139, Nays 0, 2 present, not |
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voting; that the House refused to concur in Senate amendments to |
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H.B. No. 1378 on May 18, 2015, and requested the appointment of a |
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conference committee to consider the differences between the two |
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houses; and that the House adopted the conference committee report |
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on H.B. No. 1378 on May 28, 2015, by the following vote: Yeas 144, |
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Nays 0, 2 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 1378 was passed by the Senate, with |
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amendments, on May 12, 2015, by the following vote: Yeas 30, Nays |
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0; at the request of the House, the Senate appointed a conference |
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committee to consider the differences between the two houses; and |
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that the Senate adopted the conference committee report on H.B. No. |
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1378 on May 29, 2015, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |