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A BILL TO BE ENTITLED
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AN ACT
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relating to procedures and requirements for the issuance of |
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certificates of obligation. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 271.047, Local Government Code, is |
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amended by adding Subsection (d) to read as follows: |
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(d) Except in a case of grave public necessity to meet an |
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unusual and unforeseen condition, the governing body of an issuer |
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may not authorize a certificate to pay a contractual obligation to |
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be incurred if a bond proposition to authorize the issuance of bonds |
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for the same purpose was submitted to the voters during the |
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preceding three years and failed to be approved. |
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SECTION 2. Section 271.049, Local Government Code, is |
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amended to read as follows: |
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Sec. 271.049. NOTICE OF INTENTION TO ISSUE CERTIFICATES; |
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PETITION AND ELECTION. (a) Regardless of the sources of payment of |
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certificates, certificates may not be issued unless the issuer |
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publishes notice of its intention to issue the certificates. The |
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notice must be published: |
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(1) once a week for two consecutive weeks in a |
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newspaper, as defined by Subchapter C, Chapter 2051, Government |
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Code, that is of general circulation in the area of the issuer, with |
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the date of the first publication to be before the 45th [30th] day |
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before the date tentatively set for the passage of the order or |
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ordinance authorizing the issuance of the certificates; and |
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(2) continuously on the issuer's Internet website for |
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at least 45 days before the date tentatively set for the passage of |
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the order or ordinance authorizing the issuance of the |
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certificates. |
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(b) The notice must state: |
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(1) the time and place tentatively set for the passage |
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of the order or ordinance authorizing the issuance of the |
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certificates; |
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(2) the [maximum amount and] purpose of the |
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certificates to be authorized; [and] |
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(3) the manner in which the certificates will be paid |
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for, whether by taxes, revenues, or a combination of the two; |
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(4) the following, stated as a total amount and as a |
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per capita amount: |
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(A) the then-current principal of all |
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outstanding debt obligations of the issuer; |
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(B) the then-current combined principal and |
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interest required to pay all outstanding debt obligations of the |
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issuer on time and in full; |
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(C) the principal of the certificates to be |
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authorized; and |
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(D) the estimated combined principal and |
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interest required to pay the certificates to be authorized on time |
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and in full; |
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(5) the estimated rate of interest for the |
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certificates to be authorized; |
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(6) the maturity date of the certificates to be |
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authorized; and |
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(7) the process by which a petition may be submitted |
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requesting an election on the issuance of the certificates, in the |
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following form: |
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"Five percent of the total number of voters of (name of |
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issuer) that voted in the most recent gubernatorial general |
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election may petition to require an election to be held authorizing |
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the issuance of certificates of obligation by delivering a signed |
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petition to the (insert "secretary or clerk" if the issuer is a |
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municipality, or "county clerk" if the issuer is a county) of (name |
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of issuer) before the date the governing body has set for the |
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authorization of the certificates of obligation. Information about |
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the requirements of the petition may be obtained from the (insert |
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"secretary or clerk" if the issuer is a municipality, or "county |
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clerk" if the issuer is a county) of (name of issuer)."[.] |
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(c) If before the date tentatively set for the authorization |
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of the issuance of the certificates or if before the authorization, |
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the municipal secretary or clerk if the issuer is a municipality, or |
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the county clerk if the issuer is a county, receives a petition |
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signed by a number of qualified voters of the issuer equal to five |
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percent or more of the number of votes cast in the municipality or |
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county, as applicable, in the most recent gubernatorial general |
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election [at least five percent of the qualified voters of the
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issuer] protesting the issuance of the certificates, the issuer may |
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not authorize the issuance of the certificates unless the issuance |
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is approved at an election ordered, held, and conducted in the |
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manner provided for bond elections under Chapter 1251, Government |
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Code. |
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(d) This section does not apply to certificates issued for |
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the purposes described by Sections 271.056(1)-(3) |
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[271.056(1)-(4)]. |
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(e) An issuer shall maintain an Internet website to comply |
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with this section. |
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(f) In this section, "debt obligation" means an issued |
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public security, as defined by Section 1201.002, Government Code. |
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SECTION 3. The changes in law made by this Act to Section |
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271.049, Local Government Code, apply only to a certificate of |
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obligation for which the first notice of intention to issue the |
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certificate is made on or after the effective date of this Act. A |
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certificate of obligation for which the first notice of intention |
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to issue the certificate is made before the effective date of this |
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Act is governed by the law in effect when the notice of intention is |
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made, and the former law is continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2015. |