78R9256 DRH-D
By: Mowery H.B. No. 397
Substitute the following for H.B. No. 397:
By: Hunter C.S.H.B. No. 397
A BILL TO BE ENTITLED
AN ACT
relating to requiring voter approval 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.
(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.
(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 two percent of the
number of votes cast for all candidates for governor in the most
recent gubernatorial election held in the issuing county or
municipality, as appropriate.
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 two
[five] percent of the number of votes cast in that county for
governor in the most recent general election at which that office
was filled.
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.