By:  Mowery                                                       H.B. No. 397



A BILL TO BE ENTITLED

AN ACT

relating to the procedure for the issuance by a municipality or 
county of certain certificates of obligation.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 271.049, Local Government Code, is 
amended by amending Subsections (a) and (c) and adding Subsections 
(b-1) and (e) to read as follows:
	(a)  Regardless of the sources of payment of certificates, 
certificates may not be issued unless the issuer publishes notice 
of its intention to issue the certificates.  The notice must be 
published once a week for two consecutive weeks in a newspaper, as 
defined by Subchapter C, Chapter 2051, Government Code, that is of 
general circulation in the area of the issuer, with the date of the 
first publication to be before the 30th [14th] day before the date 
tentatively set for the passage of the order or ordinance 
authorizing the issuance of the certificates.  If the issuer is a 
county with a population of less than 100,000 or if the total amount 
of the certificates to be issued is less than $25 million, the date 
of the first publication of notice under this section must be before 
the 14th day before the date tentatively set for the passage of the 
order authorizing issuance.
	(b-1)  Certificates may not be issued unless the issuer, in 
addition to publishing the notice required under Subsection (a), 
sends a press release of its intention to issue the certificates to 
major television, radio, and newsprint media in the area before the 
30th day before the date tentatively set for the passage of the 
order or ordinance authorizing the issuance of the certificates.  
If the issuer maintains an Internet website, the issuer shall also 
publish the press release on that website.  Failure to comply with 
this subsection does not affect the validity of certificates issued 
under this subchapter.  This subsection does not apply if the issuer 
is a county with a population of less than 100,000 or if the total 
amount of the certificates to be issued is less than $25 million.
	(c)  If before the date tentatively set for the authorization 
of the issuance of the certificates or if before the 
authorization[,] the municipal secretary or clerk if the issuer is 
a municipality, or the county clerk if the issuer is a county, 
receives a petition signed by the number of registered [at least 
five percent of the qualified] voters provided by Subsection (e) 
[of the issuer] protesting the issuance of the certificates, the 
issuer may not authorize the issuance of the certificates unless 
the issuance is approved at an election ordered, held, and 
conducted in the manner provided for bond elections under Chapter 
1251, Government Code.
	(e)  The number of signatures required for a petition under 
Subsection (c) is a number equal to at least five percent of the 
number of votes cast for all candidates for president in the most 
recent presidential election held in the issuing county or 
municipality, as appropriate.  If the issuer is a county with a 
population of less than 100,000 or if the total amount of the 
certificates to be issued is less than $25 million, the minimum 
number of signatures required for a petition under Subsection (c) 
is a number equal to five percent of the number of votes cast for all 
candidates for governor in the most recent gubernatorial election 
held in the county.
	SECTION 2.  Section 271.0525(c), Local Government Code, is 
amended to read as follows:
	(c)  A petition to protest the issuance of refinancing 
certificates under this section must be signed by a number of 
qualified voters, residing in the county, equal to at least five 
percent of the number of votes cast in that county for president
[governor] in the most recent general election at which that office 
was filled.  If the issuer is a county with a population of less than 
100,000 or if the total amount of the certificates to be issued is 
less than $25 million, the minimum number of signatures required 
for a petition under this subsection  is a number equal to five 
percent of the number of votes cast for all candidates for governor 
in the most recent gubernatorial election held in the county.
	SECTION 3.  The changes in law made by this Act apply only to  
certificates of obligation for which the authorizing ordinance or 
order is adopted on or after the effective date of this Act.
	SECTION 4.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.