78R2678 DRH-D

By:  Mowery                                                       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(c), Local Government Code, is 
amended to read as follows:
	(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 at least two [five] percent of the qualified voters 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.
	SECTION 2.  Subchapter C, Chapter 271, Local Government 
Code, is amended by adding Section 271.0491 to read as follows:
	Sec. 271.0491.  ELECTION REQUIRED FOR ISSUANCE OF $2 MILLION 
OR MORE.  If the maximum amount of certificates proposed to be 
authorized at one time under this subchapter, including 
certificates to refinance or refund debt evidenced by the issuer's 
certificates, is $2 million or more, the issuer may not authorize 
the issuance of the certificates unless the issuance is approved at 
an election held in the manner provided for bond elections under 
Chapter 1251, Government Code.
	SECTION 3.  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 4.  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 5.  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.