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A BILL TO BE ENTITLED
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AN ACT
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relating to the notice of intention to issue certificates of |
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obligation. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 271.049, Local Government Code, is |
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amended by amending Subsections (a), (b), and (d) and adding |
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Subsections (e), (f), and (g) to read as follows: |
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(a) Regardless of the sources of payment of certificates, |
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certificates may not be issued unless the issuer publishes notice |
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of its intention to issue the certificates. The notice must be |
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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 30th day before |
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the date tentatively set for the passage of the order or ordinance |
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authorizing the issuance of the certificates; and |
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(2) continuously on the issuer's Internet website, or |
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on a website as authorized by Subsection (f)(2), for at least 30 |
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days before the date tentatively set for the passage of the order or |
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ordinance authorizing the issuance of the certificates and until |
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the first day after the date the issuer adopts the order or |
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ordinance. |
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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) as of the date the issuer adopts the order or |
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ordinance, the principal of all outstanding debt obligations of the |
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issuer; |
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(5) as of the date the issuer adopts the order or |
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ordinance, the estimated remaining interest of all outstanding debt |
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obligations of the issuer; |
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(6) as of the date the issuer adopts the order or |
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ordinance, the estimated combined principal and interest required |
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to pay all outstanding debt obligations of the issuer on time and in |
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full; |
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(7) the maximum principal of the certificates to be |
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authorized; and |
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(8) 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 qualified voters of (name of issuer) may |
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petition to require an election to be held authorizing the issuance |
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of certificates of obligation by delivering a signed petition to |
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the (insert "secretary or clerk" if the issuer is a municipality, or |
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"county clerk" if the issuer is a county) of (name of issuer) |
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before the date the governing body has set for the authorization of |
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the certificates of obligation. Information about the requirements |
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of the petition may be obtained from the (insert "secretary or |
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clerk" if the issuer is a municipality, or "county clerk" if the |
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issuer is a county) of (name of issuer)."[.] |
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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) Except as provided by Subsection (f), an issuer shall |
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maintain or cause to be maintained an Internet website to comply |
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with this section. |
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(f) This subsection does not apply to a county or |
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municipality with a population of more than 2,000. If an issuer did |
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not maintain an Internet website or cause a website to be maintained |
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on January 1, 2017, the issuer shall post the information required |
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by Subsection (b) on: |
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(1) the issuer's website, if the issuer chooses to |
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maintain the website or cause the website to be maintained; or |
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(2) a website in which the issuer controls the content |
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of the posting, including a social media site, provided that the |
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information is easily found by searching the name of the issuer on |
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the Internet. |
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(g) 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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secured by property taxes. |
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SECTION 2. 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 3. This Act takes effect September 1, 2017. |