85(R) - 2017
Relating to the notice required
before the issuance of certain debt obligations by political subdivisions.
From the LBB: No fiscal implication to the State is anticipated.
Under current law, a proposition submitted to the voters for approval of the issuance of bonds or the imposition, increase, or reduction of a tax shall specifically state the total principal amount of the bonds to be authorized, and a general description of the purposes for which the bonds are to be authorized. HB 3335 would require any political subdivision, when issuing a proposition seeking voter approval for the issuance of bonds, to specifically state the general information regarding the bond. In addition to this, it must include the amount of the political subdivision’s debt currently outstanding, the total amount of debt secured by ad valorem taxes, and other information regarding the repayment of bonds through taxes. A political subdivision will provide this information on their website.
Vote Recommendation Notes
Texas Action supports this bill. HB 3335 upholds our principles of limited government and personal responsibility by producing more transparency between political subdivisions and the public during the issuing process of general obligation bonds.