Bill Text: TX HB440 | 2019-2020 | 86th Legislature | Enrolled
Bill Title: Relating to general obligation bonds issued by political subdivisions.
Spectrum: Slight Partisan Bill (Republican 4-2)
Status: (Passed) 2019-06-10 - Effective on 9/1/19 [HB440 Detail]
Download: Texas-2019-HB440-Enrolled.html
H.B. No. 440 |
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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, [ |
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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 |