HB3526 - Relating to fiscal transparency for bonds issued by local governmental entities.

      H.B. No. 3526         AN ACT   relating to fiscal transparency for bonds issued by local   governmental entities.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 1202.008(c), Government Code, is amended   to read as follows:          (c)  The attorney general shall send the information to the   Bond Review Board for inclusion in the reports required by Sections   [ board's report of debt statistics under Section ] 1231.062 and   1231.065 .          SECTION 2.  Subchapter B, Chapter 1231, Government Code, is   amended by adding Sections 1231.024, 1231.025, and 1231.026 to read   as follows:           Sec.   1231.024.     SEARCHABLE DATABASE FOR LOCAL BOND   OBLIGATIONS. (a)   The board shall develop and maintain on the   board's Internet website a publicly accessible and searchable   database that provides, in a table format that is easy to read and   understand, information on each bond proposed or issued by a local   government.           (b)     The database must include for each proposed and issued   bond listed in the database:                 (1)  the amount of the principal of the bond;                 (2)  the estimated amount of interest on the bond;                 (3)     the estimated total amount to pay the principal of   and interest on the bond; and                 (4)     the estimated minimum dollar amount required to be   annually expended for debt service.           Sec.   1231.025.     LOCAL BOND ELECTION INFORMATION. (a)   Not   later than the 20th day before election day for an election to   authorize a local government to issue bonds, the local government   shall submit a report to the board that includes:                 (1)  the date of the election;                 (2)  the proposition number for each bond proposition;                 (3)     the total estimated cost of the issuance of each   proposed bond;                 (4)     the estimated minimum dollar amount required to be   annually expended for debt service;                 (5)     a description of the purpose of each bond   proposition; and                 (6)     any other information the board determines   necessary.           (b)     Not later than the 20th day after election day for an   election to authorize a local government to issue bonds, the local   government shall submit a report to the board that includes:                 (1)     the total number of votes cast for each bond   proposition;                 (2)     the total number of votes in support of the bond   proposition;                 (3)     the total number of votes against the bond   proposition;                 (4)     any updated information different from the   information provided to the board under Subsection (a), if   applicable; and                 (5)     any other information the board determines   necessary.           (c)     The board shall publish a report on the results of an   election to authorize a local government to issue bonds on the   board's Internet website.           Sec.   1231.026.     ANNUAL LOCAL UNISSUED SECURITIES REPORT.   (a)   Not later than September 30 of each year, a local government   with voter-approved but unissued bonds shall submit a report to the   board regarding the amount of voter-approved but unissued bonds   authorized by the local government during the most recent fiscal   year. The report must include:                 (1)     the total amount of voter-approved but unissued   bonds authorized by the local government;                 (2)     the specific statute or law authorizing the   issuance of the bonds;                 (3)     the number of the propositions that authorized the   issuance of the bonds, as applicable;                 (4)     the estimated cost of the issuance of the bonds on   the bond proposition, as applicable;                 (5)     the estimated minimum dollar amount required to be   annually expended for debt service after the issuance of the bonds;   and                 (6)     any other information the board determines   necessary.           (b)  The board may adopt rules to implement this section.          SECTION 3.  Subchapter D, Chapter 1231, Government Code, is   amended by adding Section 1231.065 to read as follows:           Sec.   1231.065.     BIENNIAL REPORT ON REPAYMENT OF BONDS ISSUED   BY LOCAL GOVERNMENTS. (a)   Not later than December 31 of each   even-numbered year, the board shall prepare and submit to each   standing committee of the legislature with primary jurisdiction   over matters relating to finance a report on the repayment status of   each voter-approved bond issued by a local government.           (b)  The report required by Subsection (a) must include:                 (1)     for each voter-approved bond issued by a local   government:                       (A)     the estimated total amount required to pay   the principal of and interest on the bond on the date the bond was   issued;                       (B)     the total amount of principal and interest   paid by the local government on the bond; and                       (C)     the minimum dollar amount required to be   expended for debt service for each year of the biennium covered by   the report; and                 (2)     if a local government requires an increase in the   local government's tax rate in order to pay the principal of and   interest on bonds issued by the local government, the amount of the   required increase.           (c)     The board may adopt any rules necessary to implement   this section.          SECTION 4.  As soon as practicable but not later than   September 1, 2026, the Bond Review Board shall establish the   database as required by Section 1231.024, Government Code, as added   by this Act.          SECTION 5.  This Act takes effect September 1, 2025.       ______________________________ ______________________________      President of the Senate Speaker of the House                   I certify that H.B. No. 3526 was passed by the House on May 2,   2025, by the following vote:  Yeas 131, Nays 0, 1 present, not   voting.     ______________________________   Chief Clerk of the House                 I certify that H.B. No. 3526 was passed by the Senate on May   15, 2025, by the following vote:  Yeas 31, Nays 0.     ______________________________   Secretary of the Senate       APPROVED:  _____________________                      Date                           _____________________                    Governor