H.B. No. 440
 
 
 
 
AN ACT
  relating to general obligation bonds issued by political
  subdivisions.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter E, Chapter 45, Education Code, is
  amended by adding Section 45.1105 to read as follows:
         Sec. 45.1105.  USE OF UNSPENT GENERAL OBLIGATION BOND
  PROCEEDS. (a) A school district 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)  the board of trustees at a public meeting
  held only for the purpose of considering the use of the unspent bond
  proceeds approves in separate votes the use of the proceeds for:
                           (i)  a purpose other than to retire the
  bonds; and
                           (ii)  the purpose specified at the time the
  vote is taken.
         (b)  In addition to other requirements of law, notice of a
  public meeting held under this section must include a statement
  that the board of trustees will consider the use of unspent bond
  proceeds for a purpose other than the specific purposes for which
  the bonds were authorized.
         (c)  A public meeting held under this section must provide
  the public an opportunity to address the board of trustees on the
  question of using the unspent bond proceeds for a purpose other than
  the specific purposes for which the bonds were authorized.
         SECTION 2.  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 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, "personal property" has the
  meaning 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 one or more improvements to real property, to
  purchase one or more items of personal property, or to do both, if
  the weighted average maturity of the issue of bonds exceeds 120
  percent of the reasonably expected weighted average economic life
  of the improvements and personal property financed with the issue
  of bonds.
         Sec. 1253.003.  USE OF UNSPENT GENERAL OBLIGATION BOND
  PROCEEDS. (a)  A political subdivision other than a school district
  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, 2019.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 440 was passed by the House on
  April 
  2, 2019, by the following vote:  Yeas 146, Nays 1, 1 present,
  not voting; and that the House concurred in Senate amendments to
  H.B. No. 440 on May 22, 2019, by the following vote:  Yeas 144, Nays
  0, 1 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 440 was passed by the Senate, with
  amendments, on May 14, 2019, by the following vote:  Yeas 31, Nays
  0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor