HB19 - Relating to the issuance and repayment of debt by local governments, including the adoption of an ad valorem tax rate and the use of ad valorem tax revenue for the repayment of debt.

      By: Meyer H.B. No. 19       A BILL TO BE ENTITLED   AN ACT   relating to the issuance and repayment of debt by local   governments, including the adoption of an ad valorem tax rate and   the use of ad valorem tax revenue for the repayment of debt.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 44.004(c), Education Code, is amended to   read as follows:          (c)  The notice of public meeting to discuss and adopt the   budget and the proposed tax rate may not be smaller than one-quarter   page of a standard-size or a tabloid-size newspaper, and the   headline on the notice must be in 18-point or larger type. Subject   to Subsection (d), the notice must:                (1)  contain a statement in the following form:   "NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE          "The (name of school district) will hold a public meeting at   (time, date, year) in (name of room, building, physical location,   city, state).  The purpose of this meeting is to discuss the school   district's budget that will determine the tax rate that will be   adopted.  Public participation in the discussion is invited."  The   statement of the purpose of the meeting must be in bold type. In   reduced type, the notice must state: "The tax rate that is   ultimately adopted at this meeting or at a separate meeting at a   later date may not exceed the proposed rate shown below unless the   district publishes a revised notice containing the same information   and comparisons set out below and holds another public meeting to   discuss the revised notice."  In addition, in reduced type, the   notice must state: "Visit Texas.gov/PropertyTaxes to find a link to   your local property tax database on which you can easily access   information regarding your property taxes, including information   about proposed tax rates and scheduled public hearings of each   entity that taxes your property.";                (2)  contain a section entitled "Comparison of Proposed   Budget with Last Year's Budget," which must show the difference,   expressed as a percent increase or decrease, as applicable, in the   amounts budgeted for the preceding fiscal year and the amount   budgeted for the fiscal year that begins in the current tax year for   each of the following:                      (A)  maintenance and operations;                      (B)  debt service; and                      (C)  total expenditures;                (3)  contain a section entitled "Total Appraised Value   and Total Taxable Value," which must show the total appraised value   and the total taxable value of all property and the total appraised   value and the total taxable value of new property taxable by the   district in the preceding tax year and the current tax year as   calculated under Section 26.04, Tax Code;                (4)  contain a statement of the total amount of the   outstanding and unpaid bonded indebtedness of the school district;                (5)  contain a section entitled "Comparison of Proposed   Rates with Last Year's Rates," which must:                      (A)  show in rows the tax rates described by   Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of   property, for columns entitled "Maintenance & Operations,"   "Interest & Sinking Fund," and "Total," which is the sum of   "Maintenance & Operations" and "Interest & Sinking Fund":                            (i)  the school district's "Last Year's   Rate";                            (ii)  the "Rate to Maintain Same Level of   Maintenance & Operations Revenue & Pay Debt Service," which:                                  (a)  in the case of "Maintenance &   Operations," is the tax rate that, when applied to the current   taxable value for the district, as certified by the chief appraiser   under Section 26.01, Tax Code, and as adjusted to reflect changes   made by the chief appraiser as of the time the notice is prepared,   would impose taxes in an amount that, when added to state funds to   be distributed to the district under Chapter 48, would provide the   same amount of maintenance and operations taxes and state funds   distributed under Chapter 48 per student in average daily   attendance for the applicable school year that was available to the   district in the preceding school year; and                                  (b)  in the case of "Interest & Sinking   Fund," is the tax rate that, when applied to the current taxable   value for the district, as certified by the chief appraiser under   Section 26.01, Tax Code, and as adjusted to reflect changes made by   the chief appraiser as of the time the notice is prepared, and when   multiplied by the district's anticipated collection rate, would   impose taxes in an amount that, when added to state funds to be   distributed to the district under Chapter 46 and any excess taxes   collected to service the district's debt during the preceding tax   year but not used for that purpose during that year, would provide   the minimum dollar amount required to be paid to service the   district's debt; and                            (iii)  the "Proposed Rate";                      (B)  contain fourth and fifth columns aligned with   the columns required by Paragraph (A) that show, for each row   required by Paragraph (A):                            (i)  the "Local Revenue per Student," which   is computed by multiplying the district's total taxable value of   property, as certified by the chief appraiser for the applicable   school year under Section 26.01, Tax Code, and as adjusted to   reflect changes made by the chief appraiser as of the time the   notice is prepared, by the total tax rate, and dividing the product   by the number of students in average daily attendance in the   district for the applicable school year; and                            (ii)  the "State Revenue per Student," which   is computed by determining the amount of state aid received or to be   received by the district under Chapters 43, 46, and 48 and dividing   that amount by the number of students in average daily attendance in   the district for the applicable school year; and                      (C)  contain an asterisk after each calculation   for "Interest & Sinking Fund" and a footnote to the section that, in   reduced type, states "The Interest & Sinking Fund tax revenue is   used to pay for bonded indebtedness on construction, equipment, or   both.  The bonds, and the tax rate necessary to pay those bonds,   were approved by the voters of this district.";                (6)  contain a section entitled "Comparison of Proposed   Levy with Last Year's Levy on Average Residence," which must:                      (A)  show in rows the information described by   Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns   entitled "Last Year" and "This Year":                            (i)  "Average Market Value of Residences,"   determined using the same group of residences for each year;                            (ii)  "Average Taxable Value of Residences,"   determined after taking into account the limitation on the   appraised value of residences under Section 23.23, Tax Code, and   after subtracting all homestead exemptions applicable in each year,   other than exemptions available only to disabled persons or persons   65 years of age or older or their surviving spouses, and using the   same group of residences for each year;                            (iii)  "Last Year's Rate Versus Proposed   Rate per $100 Value"; and                            (iv)  "Taxes Due on Average Residence,"   determined using the same group of residences for each year; and                      (B)  contain the following information: "Increase   (Decrease) in Taxes" expressed in dollars and cents, which is   computed by subtracting the "Taxes Due on Average Residence" for   the preceding tax year from the "Taxes Due on Average Residence" for   the current tax year;                (7)  contain the following statement in bold print:   "Under state law, the dollar amount of school taxes imposed on the   residence of a person 65 years of age or older or of the surviving   spouse of such a person, if the surviving spouse was 55 years of age   or older when the person died, may not be increased above the amount   paid in the first year after the person turned 65, regardless of   changes in tax rate or property value.";                (8)  contain the following statement in bold print:   "Notice of Voter-Approval Rate: The highest tax rate the district   can adopt before requiring voter approval at an election is (the   school district voter-approval rate determined under Section   26.08, Tax Code).  This election will be automatically held if the   district adopts a rate in excess of the voter-approval rate of (the   school district voter-approval rate)."; and                (9)  contain a section entitled "Fund Balances," which   must include the estimated amount of interest and sinking fund   balances and the estimated amount of maintenance and operation or   general fund balances remaining at the end of the current fiscal   year that are not encumbered with or by corresponding debt   obligation, less estimated funds necessary for the operation of the   district before the receipt of the first payment under Chapter 48 in   the succeeding school year.          SECTION 2.  Subchapter A, Chapter 41, Election Code, is   amended by adding Section 41.0051 to read as follows:           Sec.   41.0051.     ELECTION TO ISSUE BONDS OR INCREASE AD   VALOREM TAX RATE. (a)   An election to authorize the issuance of   general obligation bonds or to approve an increase in an ad valorem   tax rate shall be held on the November uniform election date.           (b)     Notwithstanding Section 41.0011, an election described   by Subsection (a) may not be held as an emergency election under   that section.           (c)     If a law outside this code requires an election   described by Subsection (a) to be held on a date other than the   November uniform election date, the authority administering the   election shall set the election date to comply with this section.          SECTION 3.  Subchapter A, Chapter 1201, Government Code, is   amended by adding Section 1201.006 to read as follows:           Sec.   1201.006.     LIMIT ON LOCAL GOVERNMENT DEBT. (a)   Notwithstanding any other law, including a provision in a municipal   charter, a political subdivision may not authorize additional d [Text truncated for display. Full text available on Congress.gov.]