Bill Caption

Relating to general obligation bonds issued by political subdivisions.

Fiscal Notes

Bill Analysis

Under current law, a political subdivision holding a bond election is required to show notice of the election, and the contents of the proposition on their website. 

SB 460 would require a political subdivision to include any sample ballot prepared for the election on the subdivision's website. This would also prohibit a political subdivision from holding an election for voter approval to issue general obligation bonds at polling places that may affect the outcome. Additionally, political subdivisions may not issue a general obligation bond to purchase, improve, or construct improvements or to purchase personal property if the average maturity date of the bonds exceeds 120 percent of the projected average useful life. SB 460 also highlights a list of specific uses if there are unspent proceeds of a bond, including: the specific purpose for which the bonds were issued, to retire the bonds, or any other purpose if it is approved by voters. Chapter 1332, Government Code, which details the current procedure to deal with unspent proceeds of bonds, is repealed. 

Vote Recommendation Notes

We strongly support SB 460 which upholds the principles of limited government and personal responsibility by requiring more transparency during the bond approval process, limiting authority to issue general obligation bonds, and providing stricter guidelines to deal with unspent proceeds of bonds. The local debt crisis in Texas needs to be addressed and this legislation represents a step in that direction. For these reasons we support SB 460.