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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(d), Local Government Code, is |
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amended to read as follows: |
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(d) Except as provided by this subsection, the governing |
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body of an issuer may not authorize a certificate to pay a |
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contractual obligation to be incurred if a bond proposition to |
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authorize the issuance of bonds for the same purpose was submitted |
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to the voters during the preceding six [three] years and failed to |
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be approved. A governing body may authorize a certificate that the |
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governing body is otherwise prohibited from authorizing under this |
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subsection: |
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(1) in a case described by Sections 271.056(1)-(3); |
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and |
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(2) to comply with a state or federal law, rule, or |
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regulation if the political subdivision has been officially |
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notified of noncompliance with the law, rule, or regulation. |
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SECTION 2. Section 271.049, Local Government Code, is |
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amended by amending Subsection (a) and adding Subsection (e) to |
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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 for |
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at least 30 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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(e) An issuer shall maintain an Internet website to comply |
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with this section. |
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SECTION 3. Section 271.049, Local Government Code, as |
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amended by this Act, applies only to a certificate of obligation for |
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which the first notice of intention to issue the certificate is made |
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on or after the effective date of this Act. 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 before the effective date of this Act is |
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governed by the law in effect on the date 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, 2019. |