Transcript Place Title Here - Texas Secretary of State

Bond Elections
Ashley Fischer
26th Annual Election Law Seminar for
Cities, School, and Other Political Subdivisions
7/20/2015
Texas Secretary of State Elections Division
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Agenda
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Sources of Law
Types of Bonds
Ordering a Bond Election
Notice of a Bond Election
Ballots
Entity Specific Provisions
Approval by the Attorney General
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Sources of Law
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Election Code
Government Code
Local Government Code
Water Code
Health & Safety Code
Transportation Code
Etc.
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Types of Bonds
1.
General Obligation Bonds:
revenues.
2.
Revenue Bonds: Bonds that will be paid by revenue from bond funded
project/enterprise. Example: sports stadium.
3.
Refunding Bonds: Refunding bonds replace or pay off an outstanding
bond which the holder surrenders in exchange for new security.
4.
Certificates of Obligation: Bonds issued to pay certain contractual
obligations. Only counties and certain entities may issue certificates of
obligation.
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Bonds that will be paid by general tax
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Bonds and Elections
1. General Obligation Bonds: Generally REQUIRE an
election.
2. Revenue Bonds: May or may not require an election,
depending on the source law.
3. Refunding Bonds: Seldom require an election.
4. Certificates of Obligation: May be issued without voter
approval. However, notice must be posted and an
election may be called if a petition signed by qualified
voters is received.
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Ordering a Bond Election
• Texas Election Code applies, election MUST
be called on a uniform election date = May or
November. (§41.001)
• NOTE: Please check your special district law
for any exceptions.
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Ordering a Bond Election
• Deadline for Ordering = Texas Election Code:
– 78 Days Before Election for general election for
state and county officers (November general in
even years)
– 71 Days Before Election for other uniform
election dates.
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Bond Election Order
Election Notice (§ 3.006)
1.
2.
3.
4.
5.
date of the election
offices/measures to be voted on at election
location of each early voting places
date that early voting will begin, if later than standard date
dates and hours for early voting in an election in which the early
voting clerk is not county clerk or city secretary;
6. dates and hours for voting on Saturday or Sunday, if county clerk of
city secretary is not early voting clerk
7. early voting clerk’s official mailing address, if the early voting clerk
is not county clerk or city secretary.
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Texas Secretary of State Elections Division
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Bond Election Order
If the election is for general obligation bond
(secured by taxes) must follow NEW LAW: S.B. 637
from 83rd Legislature that added requirements to
election order:
§ 3.006
+ § 3.009
ORDER
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Bond Election Order
PART ONE : General Election Order (§ 3.006)
1.
2.
3.
4.
5.
date of the election
offices/measures to be voted on at election
location of each early voting places
date that early voting will begin, if later than standard date
dates and hours for early voting in an election in which the early
voting clerk is not county clerk or city secretary;
6. dates and hours for voting on Saturday or Sunday, if county clerk of
city secretary is not early voting clerk
7. early voting clerk’s official mailing address, if the early voting clerk
is not county clerk or city secretary.
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Bond Election Order
PART TWO: NEW Bond Election Order Requirements
1. Proposition language that will appear on the ballot.
2. Purpose for which the debt obligations are to be authorized.
3. Principal amount of the debt obligations to be authorized.
4. Statement that taxes sufficient to pay principal and interest may
be imposed.
5. Statement of the estimated tax rate.
6. The maximum maturity date of the debt obligations.
7. Current amount of the outstanding principal of the entity’s debt
obligations.
8. Current amount of the outstanding interest on debt obligations.
9. The ad valorem debt service tax rate for the political subdivision.
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Posting Election Order
If the election is for general obligation bond (secured by taxes) must
follow NEW LAW: S.B. 637 for posting election order:
WHERE
WHEN
Prominent location at each polling place.
On election day and during early voting.
In 3 public places in boundaries of the Not later than the 21st day before the
political subdivision holding the election.
election.
On political subdivision’s website with During the 21 days before the election.
notice of election and contents of
proposition, if political subdivision maintains
a website.
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Posting Election Order - Cities
Per Gov’t Code municipalities must also post
substantial copy of election order at:
1. Three public places in municipality
2. City hall for municipality.
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Notice of Election
Notice of Election (§ 4.004):
1. the nature and date of the election;
2. the location of each polling place;
3. the hours that the polls will be open;
4. any other information required by other law.
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Posting Notice - Cities
Notice of Bond Election for Municipalities:
Gov’t Code
+ Election Code
NOTICE
Note: Refunding bonds excluded from this
requirements.
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Posting Notice - Cities
How
Publishing in Newspaper
Deadline
Not earlier than 30th day or later than the 10th day
before the election.
Publishing in Newspaper
On the same day in each of two successive weeks.
The first publication must be not less than 14 days
before the date of the election.
Posting notice at a public place in each Not later than the 21st day before election day.
election precinct.
OR
Mailing copy of the notice to each Not later than the 10th day before election day.
registered voter.
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Posting Notice – Other Political Subs
How
Publishing in Newspaper.
Deadline
Not earlier than 30th day or later than the
10th day before the election.
Posting notice at a public place in each Not later than the 21st day before election
election precinct.
day.
OR
Mailing copy of the notice to each registered
voter.
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Ballots - Cities
Contents of ballot proposition must have requirements
of Election Code and Government Code:
1.
2.
3.
4.
5.
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Total principal amount of the bonds.
State purposes for which the bonds are to be
authorized.
Rate of interest.
Imposition of taxes sufficient to pay the annual
interest.
Maturity date of the bonds.
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Ballots - Others
• Must only follow Election Code (§ 52.072(e)):
1. The total principal amount of the bonds to be authorized, if
approved.
2. A general description of the purposes for which the bonds
are to be authorized.
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Entity Specific Elections
• Please remember to consult with code
provisions for districts!
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Entity Specific Elections
Drainage Districts
Per § 56.211 (c) and (d) of Water Code:
(c) The notice shall be signed by the secretary and shall:
(1) state the purpose of the election;
(2) state the proposition to be voted on;
(3) define the election precincts;
(4) prescribe the polling places in the district; and
(5) list the names of the election officers.
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Entity Specific Elections, cont.
Drainage Districts
(d) The notice shall be published once a week for three
consecutive weeks in a newspaper of general circulation
in the county in which the district is located, but if a
newspaper is not published in the county, the notice shall
be published in the nearest county. The first publication
shall be at least 20 days before the day of the election.
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Entity Specific Elections, cont.
Development of Employment, Industrial
and Health Resources
Per § 1433.046: In addition to Chapter 3 of
Election Code, order must include “location of
each polling place and election judges and clerks
appointed for each polling place.”
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Approval by OAG
“[A]fter approval by the attorney general and
registration by the comptroller and on
issuance…the bonds are valid, enforceable, and
incontestable in any court.”
Tex. Gov. Code Ann. § 1202.006 (Vernon 2012).
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