BILL ANALYSIS
By: Kolkhorst
Committee Report (Substituted)
BACKGROUND AND PURPOSE
Current state law requires municipalities, counties, and certain other local governments to publish notice that states the time and place for the passage of the order authorizing the issuance of certificates, the maximum amount and purpose of the certificates to be authorized and the manner in which the certificates will be funded. There is no requirement for the issuer to also disclose that a petition can be filed requiring a public vote to be held to authorize said certificates.
The proposed complete committee substitute for House Bill No. 730 would require published public notices to include existing statutory language that notifies citizens of the issuing entity of their right to petition for a public vote that would authorize the issuance of certificates. Additionally, if a clerk receives written notice of the intent to circulate a petition, the issuer may not issue the certificate until 30 days after the clerk receives notice.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rule making authority to a State officer, department, agency or institution.
SUMMARY ANALYSIS
Amends the Local Government Code to require municipalities, counties, and certain other local governments who are issuing certificates of debt to include existing statutory language in the published public notice. Additionally, if either a municipality or county is the issuer, if the respective secretary or clerk receives written notice within the seven days after the first published notice of the intent of issuance, of the intent to circulate a petition, the issuer may not authorize the issuance the certificate earlier than the 30th day after the secretary or clerk receives notice of the petition.
Effective date upon passage with two-thirds vote from each house, or September 1, 2007.
EFFECTIVE DATE
Effective date upon passage with two-thirds vote from each house, or September 1, 2007.
COMPARISON OF ORIGINAL TO SUBSTITUTE
The substitute includes a 30 day prohibition of the authorization if a municipal secretary or county clerk receives notice within 7 days of the first public publication of intent to circulate a petition as authorized by existing statute. The original bill did not include a 30 day prohibition.