1. Texas Secretary of State Elections Division
4/13/2019
Bond Elections
Ashley Fischer
26th Annual Election Law Seminar for
Cities, School, and Other Political Subdivisions
4/13/2019
Texas Secretary of State Elections Division
Texas Secretary of State Elections Division

2. Texas Secretary of State Elections Division
Agenda
Sources of Law
Types of Bonds
Ordering a Bond Election
Notice of a Bond Election
Ballots
Entity Specific Provisions
Approval by the Attorney General
4/13/2019
Texas Secretary of State Elections Division

3. Texas Secretary of State Elections Division
Sources of Law
Election Code
Government Code
Local Government Code
Water Code
Health & Safety Code
Transportation Code
Etc.
4/13/2019
Texas Secretary of State Elections Division

4. Texas Secretary of State Elections Division
Types of Bonds
General Obligation Bonds: Bonds that will be paid by general tax revenues.
Revenue Bonds: Bonds that will be paid by revenue from bond funded project/enterprise. Example: sports stadium.
Refunding Bonds: Refunding bonds replace or pay off an outstanding bond which the holder surrenders in exchange for new security.
Certificates of Obligation: Bonds issued to pay certain contractual obligations. Only counties and certain entities may issue certificates of obligation.
4/13/2019
Texas Secretary of State Elections Division

5. Texas Secretary of State Elections Division
Bonds and Elections
General Obligation Bonds: Generally REQUIRE an election.
Revenue Bonds: May or may not require an election, depending on the source law.
Refunding Bonds: Seldom require an election.
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.
4/13/2019
Texas Secretary of State Elections Division

6. 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.
4/13/2019
Texas Secretary of State Elections Division

7. 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.
4/13/2019
Texas Secretary of State Elections Division

8. Texas Secretary of State Elections Division
Bond Election Order
Election Notice (§ 3.006)
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;
dates and hours for voting on Saturday or Sunday, if county clerk of city secretary is not early voting clerk
early voting clerk’s official mailing address, if the early voting clerk is not county clerk or city secretary.
4/13/2019
Texas Secretary of State Elections Division

9. Texas Secretary of State Elections Division
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
4/13/2019
Texas Secretary of State Elections Division

10. Texas Secretary of State Elections Division
Bond Election Order
PART ONE : General Election Order (§ 3.006)
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;
dates and hours for voting on Saturday or Sunday, if county clerk of city secretary is not early voting clerk
early voting clerk’s official mailing address, if the early voting clerk is not county clerk or city secretary.
4/13/2019
Texas Secretary of State Elections Division

11. Texas Secretary of State Elections Division
Bond Election Order
PART TWO: NEW Bond Election Order Requirements
Proposition language that will appear on the ballot.
Purpose for which the debt obligations are to be authorized.
Principal amount of the debt obligations to be authorized.
Statement that taxes sufficient to pay principal and interest may be imposed.
Statement of the estimated tax rate.
The maximum maturity date of the debt obligations.
Current amount of the outstanding principal of the entity’s debt obligations.
Current amount of the outstanding interest on debt obligations.
The ad valorem debt service tax rate for the political subdivision.
4/13/2019
Texas Secretary of State Elections Division

12. 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 political subdivision holding the election.
Not later than the 21st day before the election.
On political subdivision’s website with notice of election and contents of proposition, if political subdivision maintains a website.
During the 21 days before the election.
4/13/2019
Texas Secretary of State Elections Division

13. Posting Election Order - Cities
Per Gov’t Code municipalities must also post substantial copy of election order at:
Three public places in municipality
City hall for municipality.
4/13/2019
Texas Secretary of State Elections Division

14. Texas Secretary of State Elections Division
Notice of Election
Notice of Election (§ 4.004):
the nature and date of the election;
the location of each polling place;
the hours that the polls will be open;
any other information required by other law.
4/13/2019
Texas Secretary of State Elections Division

15. Posting Notice - Cities
Notice of Bond Election for Municipalities: Gov’t Code + Election Code NOTICE Note: Refunding bonds excluded from this requirements.
4/13/2019
Texas Secretary of State Elections Division

16. Posting Notice - Cities
How
Deadline
Publishing in Newspaper
Not earlier than 30th day or later than the 10th day before the election.
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 election precinct. OR
Mailing copy of the notice to each registered voter.
Not later than the 21st day before election day.
Not later than the 10th day before election day.
4/13/2019
Texas Secretary of State Elections Division

17. Posting Notice – Other Political Subs
How
Deadline
Publishing in Newspaper.
Not earlier than 30th day or later than the 10th day before the election.
Posting notice at a public place in each election precinct. OR
Mailing copy of the notice to each registered voter.
Not later than the 21st day before election day.
4/13/2019
Texas Secretary of State Elections Division

18. Texas Secretary of State Elections Division
Ballots - Cities
Contents of ballot proposition must have requirements of Election Code and Government Code:
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.
4/13/2019
Texas Secretary of State Elections Division

19. Texas Secretary of State Elections Division
Ballots - Others
Must only follow Election Code (§ (e)):
The total principal amount of the bonds to be authorized, if approved.
A general description of the purposes for which the bonds are to be authorized.
4/13/2019
Texas Secretary of State Elections Division

20. Entity Specific Elections
Please remember to consult with code provisions for districts!
4/13/2019
Texas Secretary of State Elections Division

21. Entity Specific Elections
Drainage Districts
Per § (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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Texas Secretary of State Elections Division

22. 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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Texas Secretary of State Elections Division

23. Entity Specific Elections, cont.
Development of Employment, Industrial
and Health Resources
Per § : 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.”
4/13/2019
Texas Secretary of State Elections Division

24. Texas Secretary of State Elections Division
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. § (Vernon 2012).
4/13/2019
Texas Secretary of State Elections Division