85R1275 TJB-D
 
  By: Burton S.B. No. 1821
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  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.