HB5334 - Relating to the notice required before the issuance of certain debt obligations by political subdivisions.

      By: Harrison H.B. No. 5334       A BILL TO BE ENTITLED   AN ACT   relating to the notice required before the issuance of certain debt   obligations by political subdivisions.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter B, Chapter 1251, Government Code, is   amended to read as follows:          (b)  A political subdivision with at least 250 registered   voters on the date the governing body of the political subdivision   adopts the debt obligation election order must prepare a voter   information document for each proposition to be voted on at the   election.  The political subdivision shall post the voter   information document in the same manner as a debt obligation   election order is required to be posted under Section 4.003 (f),   Election Code, and may include the voter information document in   the debt obligation election order.  The voter information document   must distinctly state:                (2)  the following information formatted as a table in   both the aggregate and per student capita:                      (A)  the principal of the debt obligations to be   authorized;                      (B)  the estimated interest for the debt   obligations to be authorized;                      (C)  the estimated combined principal and   interest required to pay on time and in full the debt obligations to   be authorized; and                      (D)  as of the date the political subdivision   adopts the debt obligation election order:                            (i)  the principal of all outstanding debt   obligations of the political subdivision;                            (ii)  the estimated remaining interest on   all outstanding debt obligations of the political subdivision,   which may be based on the political subdivision's expectations   relative to the interest due on any variable rate debt obligations;   and                            (iii)  the estimated combined principal and   interest required to pay on time and in full all outstanding debt   obligations of the political subdivision, which may be based on the   political subdivision's expectations relative to the interest due   on any variable rate debt obligations;                (3)  the estimated maximum annual increase in the   amount of taxes that would be imposed on a residence homestead in   the political subdivision with an appraised value equal to the   average taxable value in the jurisdiction, as determined by the   county appraisal district, of $100,000 to repay the debt   obligations to be authorized, if approved, based upon assumptions   made by the governing body of the political subdivision; and          (c)  The governing body of the political subdivision shall   identify in the voter information document the major assumptions   and any underlying data used to develop the tax impact estimate made   in connection with the statement required by Subsection (b)(3),   including:                (1)  the amortization of the political subdivision's   debt obligations, including outstanding debt obligations and the   proposed debt obligations;                (2)  changes in estimated future appraised values   within the political subdivision; and                (3)  the assumed interest rate on the proposed debt   obligations.          (d)  A political subdivision that maintains an Internet   website shall provide the information described by Subsection (b)   on its website's homepage or bond election information page if it   has one, website in an easily accessible manner beginning not later   than the 21st day before election day and ending on the day after   the date of the debt obligation election.          SECTION 2.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution.  If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2025.