HB 156

84(R) - 2015
House Investments & Financial Services
House Investments & Financial Services
Local Government

Vote Recommendation

  • Neutral
  • Neutral
  • Neutral
  • Positive
  • Neutral


Lyle Larson

Bill Caption

Relating to the use of proceeds of bonds sold and delivered by a home-rule municipality for a specific purpose.

Fiscal Notes

A fiscal note dated March 17, 2015 anticipates no fiscal implication to the State or units of local government.

Bill Analysis

House Bill 156 would amend Section 1332.001 of the Government Code related to the use of unspent bond proceeds for other purposes than the initial purpose.

The bill would specify that the governing body of a municipality other than a home-rule municipality could use the proceeds of municipal bonds for a purpose other than the specific purpose, with conditions already listed in current statute.

House Bill 156 would add that the governing body of a home-rule municipality could use the unspent proceeds of municipal bonds that have been sold and delivered for a specific purpose only for the specific purpose, including retiring the outstanding bonds.

Vote Recommendation Notes

Municipalities hold bond elections to receive authorizations to issue bonds to pay for particular projects. Until the projects are completed, bond proceeds cannot be used for anything else. If there is a surplus once the project is completed though, they can use it for other projects, that have not been approved by voters.

House Bill 156 would limit this practice by prohibiting home-rule municipalities from using surplus bond proceeds for anything else than the specific purpose for which the voters approved the bond issuance, or for retiring the outstanding bonds.

House Bill 156 would reduce the scope of government by preventing municipalities to use bond proceeds for projects that have not been approved by voters, projects that voters might well be opposed to. As a consequence, we support House Bill 156.

Organizations Supporting

Americans for Prosperity
Texas Public Policy Foundation