Relating to fiscal transparency for bonds issued by local governmental entities, the official text

H.B. No. 3526

AN ACT

relating to fiscal transparency for bonds issued by local

governmental entities.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 1202.008(c), Government Code, is amended

to read as follows:

(c) The attorney general shall send the information to the

Bond Review Board for inclusion in the reports required by Sections

[board's report of debt statistics under Section] 1231.062 and

1231.065.

SECTION 2. Subchapter B, Chapter 1231, Government Code, is

amended by adding Sections 1231.024, 1231.025, and 1231.026 to read

as follows:

Sec. 1231.024. SEARCHABLE DATABASE FOR LOCAL BOND

OBLIGATIONS. (a) The board shall develop and maintain on the

board's Internet website a publicly accessible and searchable

database that provides, in a table format that is easy to read and

understand, information on each bond proposed or issued by a local

government.

(b) The database must include for each proposed and issued

bond listed in the database:

(1) the amount of the principal of the bond;

(2) the estimated amount of interest on the bond;

(3) the estimated total amount to pay the principal of

and interest on the bond; and

(4) the estimated minimum dollar amount required to be

annually expended for debt service.

Sec. 1231.025. LOCAL BOND ELECTION INFORMATION. (a) Not

later than the 20th day before election day for an election to

authorize a local government to issue bonds, the local government

shall submit a report to the board that includes:

(1) the date of the election;

(2) the proposition number for each bond proposition;

(3) the total estimated cost of the issuance of each

proposed bond;

(4) the estimated minimum dollar amount required to be

annually expended for debt service;

(5) a description of the purpose of each bond

proposition; and

(6) any other information the board determines

necessary.

(b) Not later than the 20th day after election day for an

election to authorize a local government to issue bonds, the local

government shall submit a report to the board that includes:

(1) the total number of votes cast for each bond

proposition;

(2) the total number of votes in support of the bond

proposition;

(3) the total number of votes against the bond

proposition;

(4) any updated information different from the

information provided to the board under Subsection (a), if

applicable; and

(5) any other information the board determines

necessary.

(c) The board shall publish a report on the results of an

election to authorize a local government to issue bonds on the

board's Internet website.

Sec. 1231.026. ANNUAL LOCAL UNISSUED SECURITIES REPORT.

(a) Not later than September 30 of each year, a local government

with voter-approved but unissued bonds shall submit a report to the

board regarding the amount of voter-approved but unissued bonds

authorized by the local government during the most recent fiscal

year. The report must include:

(1) the total amount of voter-approved but unissued

bonds authorized by the local government;

(2) the specific statute or law authorizing the

issuance of the bonds;

(3) the number of the propositions that authorized the

issuance of the bonds, as applicable;

(4) the estimated cost of the issuance of the bonds on

the bond proposition, as applicable;

(5) the estimated minimum dollar amount required to be

annually expended for debt service after the issuance of the bonds;

and

(6) any other information the board determines

necessary.

(b) The board may adopt rules to implement this section.

SECTION 3. Subchapter D, Chapter 1231, Government Code, is

amended by adding Section 1231.065 to read as follows:

Sec. 1231.065. BIENNIAL REPORT ON REPAYMENT OF BONDS ISSUED

BY LOCAL GOVERNMENTS. (a) Not later than December 31 of each

even-numbered year, the board shall prepare and submit to each

standing committee of the legislature with primary jurisdiction

over matters relating to finance a report on the repayment status of

each voter-approved bond issued by a local government.

(b) The report required by Subsection (a) must include:

(1) for each voter-approved bond issued by a local

government:

(A) the estimated total amount required to pay

the principal of and interest on the bond on the date the bond was

issued;

(B) the total amount of principal and interest

paid by the local government on the bond; and

(C) the minimum dollar amount required to be

expended for debt service for each year of the biennium covered by

the report; and

(2) if a local government requires an increase in the

local government's tax rate in order to pay the principal of and

interest on bonds issued by the local government, the amount of the

required increase.

(c) The board may adopt any rules necessary to implement

this section.

SECTION 4. As soon as practicable but not later than

September 1, 2026, the Bond Review Board shall establish the

database as required by Section 1231.024, Government Code, as added

by this Act.

SECTION 5. This Act takes effect September 1, 2025.

______________________________
______________________________

President of the Senate
Speaker of the House

I certify that H.B. No. 3526 was passed by the House on May 2,

2025, by the following vote: Yeas 131, Nays 0, 1 present, not

voting.

______________________________

Chief Clerk of the House

I certify that H.B. No. 3526 was passed by the Senate on May

15, 2025, by the following vote: Yeas 31, Nays 0.

______________________________

Secretary of the Senate

APPROVED: _____________________

Date

_____________________

Governor